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PSEi relief rally expected this week

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

By Revin Mikhael D. Ochave, Reporter

THE BELLWETHER Philippine Stock Exchange Index (PSEi) may see a “relief rally” this week after entering bear territory last Friday, with market movements likely to be driven by upcoming economic data.

“Barring any negative surprises, a relief rally is possible,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“This week’s market action will be driven mainly by the Philippine January inflation report, US December jobs data, and the evolving situation on tariffs,” he added.

The PSEi plunged by 4.01% or 245.07 points to close at 5,862.59 on Friday — its lowest finish in 27 months, since the 5,853.63 close on Oct. 12, 2022.

The main index officially entered bear territory after dropping over 20% from its intraday high of 7,604.61 and highest close of 7,554.68, both recorded on Oct. 7 last year.

The broader All Shares Index also declined by 2.19% or 79 points to 3,520.32.

Philippine inflation data for January will be released on Wednesday, Feb. 5. The Bangko Sentral ng Pilipinas (BSP) recently projected that January inflation could range from 2.5% to 3.3%, within its 2% to 4% target range.

On Feb. 1, US President Donald J. Trump imposed a 25% tariff on goods from Mexico and Canada, as well as a 10% tariff on products from China. He demanded that these countries act against the flow of fentanyl into the US, as well as address the issue of illegal immigration in the cases of Mexico and Canada.

“The January inflation data out on Feb. 5 must not add to the gross domestic product (GDP) disappointment,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

“Inflation should decelerate below last December’s 2.9% and beat consensus estimates. If not, the market will remain in the bear trap,” she added.

Last Thursday, Philippine Statistics Authority data revealed that the country’s GDP expanded by a weaker-than-expected 5.2% in the fourth quarter, bringing full-year growth to 5.6%, short of the revised 6% to 6.5% target set by the government.

COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message that the PSEi is expected to recover next week following adjustments to the index’s composition.

“There is a chance next week for the market to bounce back immediately because the index rebalancing is already done,” she said.

“Last Friday, a lot of fund managers had to sell their other index stocks to make way for the addition of AREIT, Inc. and China Banking Corp. (Chinabank). Since volumes were so thin, they had to sell at a lower price to get their orders through,” she added.

AREIT, Inc. and Chinabank will join the 30-member PSEi starting Monday, Feb. 3, following the market operator’s index review for 2024.

The two companies will replace Nickel Asia Corp. and Wilcon Depot, Inc., which will become members of the 20-member PSE MidCap Index.

Philippine Seven Corp. will also join the PSE MidCap Index, replacing DDMP REIT, Inc.

Robinsons Land Corp. will be added to the PSE Dividend Yield Index following the removal of International Container Terminal Services, Inc.

All sector indices will remain unchanged except for the industrial sector, which will see the addition of Pryce Corporation and the exclusion of Fruitas Holdings, Inc.

“This was an extraordinary circumstance because the drop was due to index rebalancing. I’m optimistic that we should bounce back next week,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“We have Philippine inflation coming out next Wednesday and US jobs report coming out next Friday. These two data points could dictate market direction next week,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that a “healthy upward correction” is possible for the local bourse next week.

“The market is also waiting for bottoming out signals to do some bargain-hunting, avoiding a risk of further losses. It is still wait-and-see until the dust settles and to grab opportunities for long-term purchases of high-quality listed companies with strong valuations,” he said.

IPOs likely by second half — ICCP

BW FILE PHOTO

INITIAL PUBLIC OFFERINGS (IPOs) could come by the second half of 2025 amid uncertainties posed by the administration of United States President Donald J. Trump and the May 12 local midterm polls, according to the Investment & Capital Corporation of the Philippines (ICCP).

“I think many will come by the second half because in the first half, I think everybody is still trying to understand the Trump presidency. You have the May elections coming up,” ICCP Senior Managing Director Jesus Mariano P. Ocampo told reporters on the sidelines of an event in Makati City last week.

For 2025, the Philippine Stock Exchange (PSE) is eyeing six IPOs.

Mr. Ocampo said it is possible for the PSE to meet its IPO target this year.

“We know of four (possible IPOs) already,” he said, without providing specifics.

Cebu-based fuel retailer Top Line Business Development Corp. (Topline) is expected to be the first company to conduct an IPO this year.

The company selected ICCP and PNB Capital and Investment Corp. as the joint lead underwriters and joint bookrunners for the offer.

On Jan. 22, the company said it is eyeing a listing on the local bourse by the second quarter after lowering the size of its IPO.

Topline reduced the size of its planned IPO to around P900 million from the previous P3.16 billion after talks with potential institutional investors.

Its IPO now comprises up to 2.15 billion primary common shares with an overallotment option of up to 214.84 million secondary shares, priced at up to 38 centavos per share. Its public float will be around 22%, assuming the full exercise of the overallotment option.

Topline is engaged in commercial fuel trading, depot operations, and retail fuel in the Visayas region. — Revin Mikhael D. Ochave

SteelAsia says January shipment sets export record

STEELASIA MANUFACTURING Corp. completed a P1.1-billion shipment of high-strength reinforcing steel to a subway project in Vancouver, Canada, last week, its chairman said.

“We have repeat orders from the same buyer and project, a vote of confidence in our reliability as a supplier and in the quality of our products,” SteelAsia Chairman and Chief Executive Officer Benjamin Yao said in a statement on Feb. 1.

“Locally, it is the same for us since the top developers are our biggest loyal customers,” he added.

According to the company, the shipment on Jan. 30 was the country’s largest steel export to date.

The 32,000-metric-ton shipment of high-strength reinforcing steel came from the company’s mill in Davao City.

The latest shipment brought SteelAsia’s total exports to the Canadian subway project to 87,000 metric tons with an approximate value of P3.2 billion.

SteelAsia operates four steel mills, which have a total capacity of 2.5 million metric tons per year.

These are Meycauayan Works, Calaca Works, Davao Works, and Compostela Works.

It is also constructing a green steel H-beam plant in Lemery, Batangas, and will begin site development in Candelaria for a second green steel H-beam plant worth P30 billion.

In July 2024, the company announced an P82-billion investment for plants in Candelaria, Quezon; Lemery, Batangas; Davao City; and Concepcion, Tarlac.

The company’s investment aims to reduce the country’s reliance on imports, create jobs, and contribute to the country’s economic growth. — Justine Irish D. Tabile

UAAGI welcomes new head for Chery and Lynk & Co

From left are Lynk & Co Deputy Director Timothy Sytin, Chery Deputy Director for Sales Nikko Sayson, Foton General Manager Levy Santos, Mr. Decloedt, Mr. Sytin, UAAGI Vice-Chairman Kenneth Sytin, UAAGI Chief Marketing Executive and Senior Vice-President Lyn Buena, and BAIC Brand Head and General Manager Chris Yu. — PHOTO BY KAP MACEDA AGUILA

Industry veteran Franz Decloedt makes a move

LAST WEEK, the United Asia Automotive Group, Inc. (UAAGI) celebrated the Chinese New Year a day in advance – hosting a luncheon for members of the media, content creators, and bank partners.

The moment we received the invite, many of us in the press already surmised it wasn’t going to be just another get-together. Word was going around that UAAGI had recruited a new executive – one who had just left another large auto distributor.

I’m referring, of course, to one-time GAC head Franz Decloedt from Madrid-based Astara (which also handles JAC, JMC, and Peugeot here). UAAGI had been one executive short with the departure of Froilan Dytianquin, formerly group managing director before he announced he was stepping down to attend to “urgent personal matters” early in the year.

Following presentations of executives for specific UAAGI-administered brands BAIC, Chery, Foton, and Lynk & Co, UAAGI Chairman Rommel Sytin stepped up to the podium and declared, “While we work toward expanding our market share and achieving greater growth, we remain equally committed to developing the exceptional team behind UAAGI’s brands. I’m immensely proud of the men and women of the (group) who continue to help bring their expertise. Their dedication has been the driving force behind the outstanding portfolio of automotive brands and our industry-leading after-sales service.”

He paused, then continued, “On that note, I am thrilled to introduce another valuable addition to the UAAGI family. Please join me in welcoming Mr. Franz Decloedt (who) brings with him extensive experience in the Philippine automotive industry, and we are confident that his leadership will propel these brands to even greater heights.”

Franz Decloedt, who assumes the role of brand head for both Chery and Lynk & Co, flashed a wide smile and said, “It is both an honor and a pleasure to stand before you today. I’m sure many of you are surprised to see me today. I’ll be honest, I’m also surprised.”

He continued, “Over the past 28 years of my professional career, I’ve been blessed to work across various industries – from fast-moving consumer goods, food and beverage, homecare, laundry and personal care, to my most recent chapter in the automotive industry. Yet, I must say, these last nine years in automotive have been the most challenging and at the same time the most rewarding.”

Mr. Decloedt maintained that the auto industry has taught him a lot, and expressed deep thanks “for the blessings, learnings, and opportunities (he’s had) working with different groups and brands… I can confidently say that this will be a breakout year for both Chery and Lynk & Co. Together, we will showcase what it truly means to be UAAGI all the way.”

Replying to a question from “Velocity” via text, the executive stated, “My focus is to amplify the strong foundation UAAGI has built for these two distinguished auto brands. With the guidance and leadership of our chairman Rommel Sytin, I aim to further develop and nurture key partnerships and expand the networks of both Chery and Lynk & Co – with the goal of driving growth and increased market share for both brands.”

Vivant plans P4.5-B capex focusing on solar, wind power

STOCK PHOTO | Image by Michael Wilson from Unsplash

CEBU-BASED energy and water company Vivant Corp. is allocating P4.5 billion for its 2025 capital expenditure (capex), focusing primarily on renewable energy projects such as solar and wind power developments.

This year’s budget is higher compared to last year since most of the projects were in the pre-development stage, said Vivant Chief Finance Officer Minuel Carmela N. Franco. 

“When it’s pre-development, the outlay and investment are very minimal. We’ll start the outlay once development begins,” Ms. Franco told reporters last week.

For 2025, Vivant is expecting to roll out solar power projects with a total capacity of 115 megawatts (MW), as well as a 200-MW wind power project in Samar, said Vivant Chief Executive Officer Arlo Angelo G. Sarmiento.

Among the projects expected to become operational is the 22-MW solar project in Bulacan. 

“A lot of the work involves groundbreaking this year,” Mr. Sarmiento said. 

Most of the power generated from the company’s energy projects will be supplied to its retail electricity supply (RES) arm.

“That’s one of our newer strategies that we’re trying to execute — building plants and then bringing them to market through the RES market, the retail market,” Mr. Sarmiento said. 

In June last year, Vivant said it targeted allocating P15 billion for various renewable energy projects until 2030, part of the company’s projected total equity investment requirement of up to P22 billion. 

Vivant has investments in various companies engaged in electric power generation and distribution, as well as the retail electricity business. It also entered the water industry, “with a diversified portfolio in the areas of bulk water supply, wastewater treatment, and water distribution.” — Sheldeen Joy Talavera

Going beyond the terno

PEACH GARDE

Ternocon tackled the kimona, brought back the panuelo

DESPITE its theme, this year’s Ternocon expanded its reaches far beyond the familiar Filipiniana dress. Not only did it revive the terno’s 1930s structure with the addition of the panuelo (fichu), but it also concentrated on another traditional Filipiniana dress, the kimona.

The terno evolved from the 1800s traje de mestiza (colloquially referred to as the Maria Clara), melding together its elements and modifying the former’s pagoda sleeves into butterfly sleeves (effectively shrinking them) for the changing times of the 1900s. Some elements were taken out through the decades — the tapis (overskirt) for example — and around the 1960s, with the removal of the panuelo, the terno as we know it today took shape.

As for the kimona, it is a loose blouse, often with elongated sleeves, worn with a tube-shaped skirt; it is considered more rural, casual, compared to the urbane terno.

The Balintawak, a second option for Filipiniana dress, is a more casual rendition of the terno, melding together the base form (the baro’t saya or blouse and skirt) with slightly puffed-up sleeves. It was popular throughout the first half of the 20th century. While the terno back then was made of finer materials, the Balintawak is usually made of more common materials like cotton, and is usually accessorized with an alampay — a shawl or a scarf draped over one shoulder.

For this year’s Ternocon, held over a series of months in 2024 and culminating in the Philippine International Convention Center (PICC) show on Jan. 26, the terno’s earlier form, used in the most formal occasions in the pre-war period, took center stage.

ARTISTIC INSPIRATION
The 12 designers were given a brief to take inspiration from 20th-century Filipino artists. These included several National Artists — Jose Joya, Hernando R. Ocampo, Vicente Manansala, Fernando Amorsolo, Benedicto “BenCab” Cabrera, Leandro Locsin (veering from the painters and the sculptors on this list; Mr. Locsin was honored for his architecture) — and artists Ramon Orlina, Onib Olmedo, Nena Saguil, and Impy Pilapil.

That evening, Windell Madis took home the Chief Mentor’s Award for a clever interpretation of the work of H.R. Ocampo.

Ram Silva, meanwhile, won the bronze for his interpretation of Fernando Amorsolo’s paintings, particularly his depiction of idyllic countryside life during harvest time. For this, Mr. Silva showed an excellent use of the simpler kimona. For his collection, he used sweeping grasses on the skirts, with almost photo-accurate renditions of the colors in Mr. Amorsolo’s work, giving the collection the illusion of figures having stepped out of the paintings. The grass fringes were full and lush, reflecting beauty, abundance — and its perishability.

Bryan Peralta won silver for his “collaboration” with Joya, showing the outfits in common canvas (subverting the terno’s usually refined piña make), showing Jose Joya’s abstraction on mesh sleeves and wild, childlike embroidery.

Finally, Peach Garde won the gold for interpreting Mr. Locsin’s iconic buildings into clothes, tapping into the architect’s preference for Brutalism — a style dominating the postwar period with strict shapes and the use of concrete.  The main theater building of the Cultural Center of the Philippines and the Ternocon’s venue, the PICC, were both designed by Locsin. For these, he used geometrical shapes and panels of fabric to give the clothes a shape more akin to edifices than outfits.

Other notable collections that evening included Lexter Badana’s channeling glass sculptor Ramon Orlina. His collection used the signature blues and greens of Orlina’s work, using plastic and other materials to mimic glass, even in its sheen.

Irene Subang’s collection focused on BenCab’s muse Sabel, a homeless woman draped in the world’s misery, so cans painted copper were attached to the dress and an overall look of dereliction made noise on the runway.

Jared Servano’s work, based on Nena Saguil’s, featured a wash of silver and gold on the surface of the clothes, while the fabric’s thread appeared to be spilling off the sleeves, providing movement.

Ternocon’s mentors Rhett Eala, Ezra Santos, and Lulu Tan-Gan also showed off their own collections, as did 2023 Ternocon winner Yssa Innumerable.

Entrepreneur Ben Chan, whose Bench brand is the Cultural Center of the Philippines’ partner in Ternocon, made a speech that evening, saying, “May this gathering tonight ignite within us the same spirit of home, of love for country, and pride in our culture.” — Joseph L. Garcia

Now serving San Juan

Drive+ San Juan is located at 683 Jose Abad Street in Barangay Little Baguio. — PHOTO BY HAZEL NICOLE CARREON

After-sales specialist Drive+ opens new facility

AFTER GARNERING a loyal following and maintaining a strong reputation for providing top-notch automotive service at its inaugural location in Quezon City, Drive+ Car Care Center officially opened its new branch in San Juan, bringing a new level of automotive expertise within easy reach of those in the community. As a well-established company known for its commitment to quality and customer satisfaction, Drive+ said it aims to revolutionize the car care industry with its innovative approach and state-of-the-art facilities.

Staffed with highly trained and experienced technicians, Drive+ San Juan provides a wide range of services including preventive maintenance service, oil change, brake maintenance and repair, automatic transmission fluid change, belt replacement, battery replacement, on-board diagnostics scanning, suspension replacement, tire balancing and alignment, exhaust gas recirculation cleaning, and air-conditioning cleaning and repair.

Service times vary, from less than an hour for quick fixes to multi-day repairs for complex issues.

“Our mission at Drive+ has always been to elevate the car care experience in the Philippines,” said company marketing manager Jason Manabat, promising that customers will “receive the same exceptional service and convenience that have become synonymous with the Drive+ name.”

The new center features 10 service bays with two dedicated wheel alignment bays, two post lifters for heavier vehicles, and six scissor lifters for general maintenance and repairs.

Drive+ partnered with Autoplus to provide Ravenol and Aveno engine oils as well as Yuasa and Lite-Ion batteries. It further upholds its commitment to reliability by offering high-quality tires from Falken, Continental, and Hankook, with the ability to source other brands upon request.

The facility also has a comfortable lounge where motorists can relax while their vehicles are being serviced. Complimentary Wi-Fi access, refreshments, and entertainment options are available to ensure a pleasant waiting experience.

“Customer comfort and satisfaction remain our top priorities. We consistently strive to refine our processes so every visit to Drive+ is seamless and hassle-free, and we’re committed to continually enhance the customer experience with each service,” Mr. Manabat added.

Drive+ has also been known for its transparent pricing. “What we typically do is if (a part) is available locally, we try to source both original and replacement parts so that customers have options on how they want their cars serviced based on their budgets,” the executive explained.

The opening of Drive+ Car Care Center in San Juan is expected to further strengthen the company’s position as one of the leading premium car service brands in Metro Manila.

Drive+ San Juan is located at 683 Jose Abad Street, Barangay Little Baguio, San Juan City. It is open from Monday to Saturday, 8 a.m. to 5 p.m. For more information, contact 8247-0540, 8244-5269 or 8254-5426.

SM: 107,000 job seekers connected to 6,000 employers in 2024

SMSUPERMALLS.COM

THE SM GROUP, through its mall unit, said it is working to support local job creation and workforce development.

In 2024, SM Supermalls hosted 183 job fairs nationwide, connecting 107,000 job seekers with nearly 6,000 employers. Of these, 14,500 applicants were hired on the spot, the company said in a statement over the weekend.

The job fairs, which also provide government services for employment-related documents, are part of SM’s initiative to host weekly job fairs across its malls nationwide.

In the latter half of 2024, SM extended its job fair initiatives to partner with various government agencies, including the Department of Health, Department of Tourism, Technical Education and Skills Development Authority, and Civil Service Commission. 

The company made the statement as online job portal JobStreet hosted the two-day JobStreet Career Con 2025 at SMX Convention Center Manila in Pasay City on Jan. 28 to 29.

The event featured 130 participating companies, including SM Retail, Nestlé, Metrobank, Accenture, and other firms from industries such as information technology, business process management, retail, banking, construction, logistics, food services, and manufacturing.

President Ferdinand R. Marcos, Jr. emphasized the importance of collaboration between the government and private sector in upskilling workers and connecting employers with job seekers.

“Cooperation between the government and the private sector is very important. Ma’am Teresita Sy-Coson, who has been with us from the start, opened the doors of SM malls for job fairs like this, which have been very successful,” he said.

“When we did these job fairs and upskilling programs with SM before, they were very successful. So we said, let’s try to do this more often,” he added. 

Ms. Sy-Coson, vice-chairman of SM Investments, is also a member of the Private Sector Advisory Council’s Education and Jobs Group.

Data from the Philippine Statistics Authority showed that the country’s unemployment rate declined to 3.2% in November from 3.9% in October. — Revin Mikhael D. Ochave

New and pre-owned items on sale at Corso Como 88 in Makati

IN CELEBRATION of its first year in Makati’s One Ayala, premium bag and luxury item store Corso Como 88 is offering up-and-coming European brands — not available yet anywhere else in the Philippines — at sale prices.

Some of the brands shoppers can expect to find there are Gianni Chiarini, a leather bag brand from Florence, and Roberta Pieri, known for its Tuscan-made handbags. Along with new names are familiar ones like Prada, Gucci, and Valentino, as well as rarer finds like Biagini and Buti Pelletterie.

Another must-see part of the store is the perfume section, featuring Bottega Italiana Spigo 1920 (Bois 1920) and Acqua dell’Elba fragrances.

“We champion a lot of the brands which are made in Italy, not yet known in the Philippines, but growing already in the Asian market like Japan and China. For example, Buti and Biagini are already getting bigger in China. Gianni Chiarini is big in Japan,” Corso Como 88 founder Imelda Menguito-Sciandra told the press at the flagship store’s first anniversary event.

Located on the 3rd floor of One Ayala in Makati City, the store invites shoppers to browse the shelves for Italian bags, shoes, perfumes, and other luxury items. Ms. Scandria told BusinessWorld that, as the authorized distributor for these brands in the Philippines, there is a responsibility to bring in the best of the best.

“These are brands that have a level of craftsmanship and quality that make them worth introducing to the Filipino people,” she said.

While Corso Como 88 started with her and her husband buying bags in Europe for friends back home, the vision today is “to make these finds more accessible all over the Philippines.”

The store’s third branch, located in Vertis North, Quezon City, is under construction. Its second branch is in Ayala Malls the 30th in Pasig City.

PRE-OWNED
Celebrities Ruffa Gutierrez and Janine Gutierrez (they are aunt and niece) graced the One Ayala flagship store’s anniversary event. There, the two highlighted the sustainability aspect of fashion.

“The very first important or luxury pieces I ever had, mga minana ko lang (I inherited from family). That’s why when I spend on something, I want it to last to the point that I can share with siblings or future children. It’s all about sustainability, and making the most of what you spend,” the younger Gutierrez told the press.

Corso Como 88 also has a Reuse section dedicated to pre-owned designer bags, shoes, and accessories. Ms. Scandria emphasized that these are “authentic, curated pieces that have been used but are still in good to great condition.”

These pre-loved items, along with the brand-new items on sale, can be found at the Corso Como 88 store in One Ayala, Makati City. Shoppers can also browse online via corsocomo88.com. — Brontë H. Lacsamana

LTFRB: Cause of our traffic congestion

FREEPIK

The mission statement of the Land Transportation Franchising and Regulatory Board (LTFRB) states that LTFRB ensures that the commuting public has adequate, safe, convenient, environment-friendly, and dependable public land transportation services at reasonable rates through the implementation of land-based transportation policies, programs, and projects responsive to an investment-led and demand-driven industry.

In essence, the LTFRB determines the demand for public transport and then issues the necessary franchises to public transport operators who will then supply the necessary vehicles to meet the transport needs of the commuting public.

The issuance of franchises should therefore be determined by the number of public vehicles needed to meet the public demand for transport. Since the population of the Philippines has been growing, we would expect that the number of franchises issued by the LTFRB would also grow.

 

Unfortunately, as shown in the accompanying table, the LTFRB declared moratoriums on the issuance of franchises.

 

The net results of these policies has been a reduction in the service provided by the public utility jeepneys (PUJs) and buses (PUBs) in Metro Manila.The number of trips of the PUJs declined by 50% from 193,221 in 2013 to 95,659 in 2023 while the trips by the PUBs declined by 42% from 36,551 to 21,107.

Over-all trips by private vehicles increased from 2,280,124 trips in 2017 to 3,349,502 in 2023 or a 47% increase while trips by public vehicles declined from 418,927 in 2017 to 284,731 in 2023 or a 32% decrease. As private vehicles occupy the same space as jeepneys but carry only one or two passengers as opposed to eight to 10 passengers for a jeepney, the result is severe traffic congestion, all as a result of the catastrophic decisions of the LTFRB.

The most plausible explanation for the adverse actions of the LTFRB is “regulatory capture.” Regulatory capture occurs when the regulator, in this case the LTFRB, is captured by those organizations it is supposed to regulate, in this case the jeepney, bus, and motorcycle operators.

As a captured agency, the LTFRB serves the interest of the operators rather than the public, in this case, the commuters. Clearly by decreasing the franchises and so the public vehicles on the road, the LTFRB serves the interest of the operators since their vehicles will now be filled to overflowing with passengers, some hanging on for dear life. On the other hand, commuters want more franchises so there will be enough vehicles to meet their transport needs.

Lacking adequate public transport, some of our hapless commuters were forced to buy, usually on installment, motorcycles if they had to have any hope of reaching their destination on time. Thus, the trips by motorcycles increased from 433,340 in 2013 to 1,674,646 in 2023 for a staggering increase of 286%.

Despite this response from the commuting public, there is still the problem of commuters who could not afford to buy motorcycles. This was of no concern to LTFRB but was of great concern to the city mayors of Metro Manila.

They decided to provide the public service that the LTFRB appallingly neglected to provide. The cities of Caloocan, Malabon, Manila, Pasig, Taguig, and Valenzuela started operating public bus services.

In the case of Pasig, the Pasig Bus Service was started in 2015 to provide free shuttle services from Pasig City Hall to key drop-off points in the city of Pasig. Pasig City bought its own buses and hired its own drivers.

In the case of Quezon City, the Quezon City Bus Service was started in 2020 and has now 100 buses serving eight routes with the Quezon City Hall as hub. However, instead of providing the service itself, Quezon City subcontracted the operation to Philtranco, Genesis, and Saulog. The rides are also free.

The city governments had to offer the rides for free since they do not have franchises from the LTFRB. Without the franchise, they cannot operate as a regular bus service. This arrangement has created problems. In addition to the issue of sustainability, the city government is also accused of unfair competition by the private operators.

We argue that instead of trying to be operators regulated by the LTFRB, the city governments should lobby for legislation devolving the regulatory function of LTFRB to the local government units.

At present, the issuance of franchises for tricycle operators has already been devolved to the local governments. And they have handled this responsibility quite well.

Take the case of Siquijor town in Siquijor Province, a popular tourist destination where the principal means of public transportation is now by tricycles. The Sangguniang Bayan regulates the operation of tricycles and has organized their operation efficiently and effectively.

By the way, few are aware that the 60,000 motorcycle taxi drivers are now allowed to operate only because of a pilot test approved by Congress in June 2019, which is valid only until June of this year. And so, Congress has proposed a law regulating these motorcycles drivers. We suggest that under this proposed law, these motorcycle franchises be regulated by the local government units as with the tricycle franchises.

We suggest further that the present PD on LTFRB be amended so that the regulation of public land transport be devolved to the provincial, city, and municipal governments with the LTFRB regulating only the national public transport systems.

We make this proposal for the following reasons:

1.) Given their interest and information on the needs for public transport in their community, the LGUs are in the best position to be the regulator for local public transport franchises rather than the LTFRB.

2.) Given that the regulatory powers will be diffused from one centralized agency to numerous LGUs, regulatory capture will be avoided; and,

3.) The LGUs can be held accountable when traffic congestion occurs in their locality. At present the critical role of the LTFRB in our present traffic congestion is not even realized by both our government officials and the commuting public.

 

Dr. Victor S. Limlingan is a retired professor of AIM and a fellow of the Foundation for Economic Freedom. He is presently chairman of Cristina Research Foundation, a public policy adviser and Regina Capital Development Corp., a member of the Philippine Stock Exchange.

BAIC opens Cavite dealership

BAIC GMA is interconnected with dealerships of Foton and Chery, both of which are also distributed by the United Asia Automotive Group, Inc. (UAAGI). — PHOTO BY HAZEL NICOLE CARREON

By Hazel Nicole Carreon

BEIJING AUTOMOTIVE Industry Holding Company, Ltd. (BAIC) celebrated the grand opening of its newest dealership in General Mariano Alvarez (GMA), Cavite, marking the continued expansion of its presence in the Southern Luzon region, and the pursuit of its goal to bring a diverse range of vehicles closer to Caviteños.

Operated by Frontier Automotive Marilao Corp. (FAMC), BAIC GMA boasts a modern showroom showcasing the brand’s latest models. Furthermore, the dealership features a fully equipped service center staffed by expert technicians, ensuring that customers receive top-notch after-sales support.

The new outlet is FAMC’s first BAIC dealership. “It’s a great time to start the new year with a new brand. We want to sell more and more of these products that we can enjoy at very competitive prices,” said FAMC Dealer Principal Willy Chiongbian II in his speech at the opening ceremony.

Founded in 1958, BAIC has been a dominant player in the Chinese automotive market. It has formed joint ventures with major international car brands like Mercedes-Benz and Hyundai, giving BAIC access to technology, expertise, and an established distribution network. Now, the brand is strategically targeting emerging markets in Asia, Africa, and Latin America.

In the Philippines, BAIC vehicles have been distributed by the United Asia Automotive Group, Inc. (UAAGI) since 2024. The brand aims to cater to the growing demand for SUVs and crossovers in the local market, introducing various options such as the B40 Ragnar off-road SUV, B60 Beaumont hybrid full-size SUV, B30e Dune hybrid off-road SUV, B80 Wagon premium SUV, X55 subcompact crossover, and X7 Grandeza compact crossover.

“We have such a robust product portfolio with very competitive products, and we have very good pricing for the segments in which we are participating in. With the opening of this dealership, we are certain to make it big here in GMA,” BAIC Philippines General Manager and Brand Head Christopher Yu stated.

Every purchase of any BAIC model comes with a 150,000km/five-year vehicle warranty (whichever comes first). BAIC Philippines continues to strengthen its foothold in the local market through strategic dealership expansion and a focus on customer satisfaction. With the opening of BAIC GMA, the brand now has 15 dealerships nationwide, solidifying its commitment to providing high-quality vehicles and excellent service.

BAIC GMA is located at Block 23 Lot 2, Governor’s Drive, Barangay Gavino Maderan, GMA, Cavite. The showroom is open from Monday to Saturday, 8:30 a.m. to 5:30 p.m., while the service center is open from Monday to Sunday.

For more information, visit baic.ph.

Wildflour Hospitality weighs IPO

PHILSTAR FILE PHOTO

PREMIUM casual restaurant operator Wildflour Hospitality Group said an initial public offering (IPO) is a “big possibility” in the near future as the company pursues nationwide expansion.

“It is something that we are talking about. It’s really a big possibility for us in the near future,” Wildflour President and Chief Executive Officer Ana Lorenzana de Ocampo told reporters on the sidelines of an event in Taguig City last week.

“I can’t say yet because it’s still being discussed. But definitely, we are looking at an IPO,” she added.

In February last year, Wildflour announced that it secured a $15-million investment from Singapore-based private equity firm KV Asia Capital to support its expansion plans.

“Our partnership with KV Asia raises the ceiling for us to be able to do these things,” Ms. De Ocampo said.

The Philippine Stock Exchange is targeting six IPOs this year.

According to Ms. De Ocampo, Wildflour is opening 12 to 14 outlets across all its brands. The company currently operates 27 outlets.

She said new stores will open in SM North EDSA, Trinoma, Cebu, Alabang, Makati, and Baguio.

Ms. De Ocampo expects a strong financial year for Wildflour in 2025, noting that the company had a “good start.”

“I’m hoping that the trajectory really goes upward as we go into the year. We wouldn’t be building all these restaurants if we didn’t feel confident about the market,” she said.

“We’re very happy with how the restaurants are performing. I’m hopeful that 2025 will be a good year for us,” she added.

Ms. De Ocampo also acknowledged challenges in retaining manpower and mitigating the effects of inflation.

“It’s very easy to hire people, but training and retaining them are challenging for us,” she said. 

“On inflation, the cost of all our ingredients is rising, which affects many aspects — our menu mix, the prices of menu items, construction costs, and more. It’s really a domino effect. Manpower and inflation are our biggest challenges,” she added.

Wildflour’s portfolio includes various brands, such as Wildflour Restaurant, George & Onnie’s Filipino Restaurant, Wildflour Italian, Pink’s, Farmacy Ice Cream and Soda Fountain, Little Flour Café, Pizza Sisters, Kei Maki, and Antica Osteria. — Revin Mikhael D. Ochave

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