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Subsidies to GOCCs drop by 36% in March

DEPARTMENT OF AGRICULTURE HANDOUT

SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) fell by 36.3% in March, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that budgetary support to GOCCs declined to P6.872 billion in March from P10.795 billion a year earlier.

Month on month, subsidies dropped by 46% from P12.715 billion in February.

The government provides subsidies to GOCCs to help cover operational expenses not covered by their revenue.

The National Irrigation Administration (NIA) was the top recipient in March, receiving P3.224 billion. This accounted for nearly half or 46.9% of overall subsidies.

This was followed by the National Electrification Administration (NEA) with P2.088 billion in subsidies and the Philippine Fisheries Development Authority with P382 million in subsidies. The two agencies did not receive any subsidies in the previous month.

Other top recipients were the Cultural Center of the Philippines (P156 million), Philippine Heart Center (P152 million), Small Business Corp. (P125 million), Philippine Children’s Medical Center (P118 million), and the National Kidney and Transplant Institute (P104 million).

Other GOCCs that received more than P50 million during the month were the Tourism Promotions Board (P83 million), Light Trail Transit Authority (P72 million), Lung Center of the Philippines (P53 million), and the Philippine Coconut Authority (P50 million).

Meanwhile, the Local Water Utilities Administration, National Food Authority (NFA), National Power Corp., Philippine National Railways, Philippine Postal Corp. and Social Housing Finance Corp. did not receive any subsidies in March.

FIRST-QUARTER SUBSIDIES
In the first three months, subsidies to GOCCs stood at P19.587 billion, 8% lower than P21.308 billion in the same period a year ago.

The NIA received the bulk of subsidies in the first quarter, taking in P10.317 billion. This accounted for more than half (52.7%) of the total subsidies released during the period.

This was followed by the NFA with P2.25 billion and the NEA at P2.088 billion.

Last year, subsidies to GOCCs amounted to P163.54 billion. — Luisa Maria Jacinta C. Jocson

Possible SCTEx stake seen to strengthen MPTC’s planned IPO

NLEX.COM.PH

THE offer from the Pangilinan-led Metro Pacific Tollways Corp. (MPTC) to acquire the government’s stake in the Subic-Clark-Tarlac Expressway (SCTEx) may help attract more investors to the company’s planned merger with San Miguel Corp. (SMC), analysts said.

“SCTEx is an attractive infrastructure asset, especially given the development in the areas it serves, so gaining full ownership of the government’s revenue stake at a reasonable price should significantly enhance MPTC’s tollways portfolio,” said Juan Paolo E. Colet, managing director of Chinabank Capital Corp., in a Viber message on Sunday.

This comes after the Bases Conversion and Development Authority (BCDA) expressed its willingness to sell its 50% stake in SCTEx to the tollways unit of Metro Pacific Investments Corp. (MPIC) for at least P20 billion.

“On our end, in order to consider it, our balance of debt to JICA (Japan International Cooperation Agency) is around P20 billion. So, we would want at least that amount to ensure our debt is covered for the next few years, ensuring payment to the foreign lender. That would be the starting point,” BCDA President and Chief Executive Officer Joshua M. Bingcang told reporters last week.

“So if P20 billion, that is only the capital. We want something more for the government, for the public. Normally, how much returns you would want when you have an investment made. You aim for a 100% or even a doubling of your investments,” he added.

Earlier this month, MPTC announced the deferment of its initial public offering (IPO) to 2025, citing the need to weigh its options amid plans to form a joint venture (JV) company with SMC.

MPIC anticipates signing an agreement with SMC by the second quarter, merging the companies’ tollway units, which is described as a significant company to be listed on the Philippine Stock Exchange.

“It would also be a valuable addition to the future combined tollways platform of MPTC and SMC and should create a better narrative for an IPO,” Mr. Colet added.

Currently, negotiations to acquire the government’s stake in SCTEx are ongoing, with Mr. Bingcang hoping for a conclusion next month, emphasizing that the government is inclined to sell “at the right price.”

“Government transactions regarding infrastructure, whether in construction or operations, should always be based on economic terms rather than financial proceeds, though they are somewhat related,” said Nigel Paul C. Villarete, senior adviser on public-private partnership at Technical Advisory Group Libra Konsult, Inc., in a Viber message on Sunday.

The sale of the government’s stake in SCTEx would provide funds that could be allocated to new future projects, he noted.

“However, the economic analysis should include possible incremental economic benefits from future extensions of the expressway, as well as other expressways that may follow,” he added.

The timing of monetizing the stake is crucial, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort, who suggested that it could contribute more to the national government’s coffers or help reduce its debts as part of fiscal reform measures.

“A simple divestment that will net BCDA, maybe P20 billion — if there is a buyer. The logical buyer is also MPTC, now in a JV with SMC. There is no compelling financial reason to buy. I see no benefits to motorists,” said Rene S. Santiago, former President of the Transportation Science Society of the Philippines.

BCDA currently earns P2 billion from SCTEx, with a debt service of only P1 billion, Mr. Bingcang said.

The 93.7-kilometer SCTEx connects the Clark Freeport and Special Economic Zone, the Subic Bay Freeport Zone, and the Central Techno Park in Tarlac.

According to BCDA’s website, the management, operations, and maintenance of SCTEx were turned over to NLEX Corp. in 2015.

Under its 30-year concession agreement, the two parties have a 50:50 revenue-sharing agreement, Mr. Bingcang said.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of 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 stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Cebu Landmasters eyes Cavite for expansion

LISTED property developer Cebu Landmasters, Inc. (CLI) is considering a development venture in Cavite as it prepares for its entry into the Luzon market, its chief operating officer said.

“Definitely, a lot of landowners are knocking on our doors. We need to filter this out well, but we’re eyeing a Cavite development. Camarines Sur was our original exploratory area. Now, Cavite is coming in strong,” CLI Chief Operating Officer Jose Franco B. Soberano said during the company’s virtual investors and analysts briefing last week.

“Once it is more firm and definite, we will disclose it. But it is this year. Our office will open very soon in the Makati area. We’re excited to see how well our projects will perform,” he added.

CLI’s first Luzon project is in Naga City under its Casa Mira economic housing brand, which is expected to launch in the second half of this year.

The company has been aiming to enter the Luzon property market to boost its nationwide presence.

CLI has P27.65 billion worth of projects in the pipeline. It earmarked P14.5 billion as a capital expenditure budget this year to support its expansion plans.

For the first quarter, CLI posted a 15% increase in its attributable net income to P978 million as consolidated revenue soared by 31% to P6.26 billion.

“This quarter’s notable achievement strongly indicates that we are on track. Our consistently strong sales performance in the preceding years coupled with the significant progress of the construction of our projects are our main contributors to our stellar performance,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a separate statement.

CLI shares were last traded on May 10 at P2.75 apiece. — Revin Mikhael D. Ochave

DMCI Homes expects P13-B revenue from Sonora Garden Residences

DMCI Homes said its three-tower project Sonora Garden Residences in Las Piñas City is expected to generate around P13 billion in revenue.

Sonora Garden Residences, a joint venture between DMCI Homes and Robinson Land Corporation, Inc., consists of the Cadence, Liran, and Stellan towers along Alabang-Zapote Road in Las Piñas City.

“Cadence revenue [alone] is expected around P6 billion,” DMCI Vice-President for Project Development Dennis Yap told BusinessWorld in an e-mailed statement on Saturday.

He said that the total investment cost for Sonora Garden Residences is estimated at P7 billion.

Following the early inauguration of the amenities and model unit of the 40-storey Cadence on April 23rd, Mr. Yap said that there are currently no final launch dates for the two remaining buildings. Instead, the focus is on the turnover of the first building scheduled for this June.

“This early reveal aims to help investors and home seekers imagine the vibrant community life that awaits them at Sonora Garden Residences,” said DMCI Homes in a press statement.

Sitting on a 1.45-hectare land, Sonora Garden Residences is said to be a resort-inspired haven catering to young professionals and startup families.

“Residents can look forward to enjoying the property’s expansive open spaces, lush gardens, and a wide array of resort-inspired amenities, creating an ideal venue for family gatherings, community activities, and leisurely outdoor strolls,” the company noted.

It offers one-, two-, and three-bedroom units ranging from 28 square meters (sq.m.) to 83.5 sq.m.

Among the amenities are the lap pool, leisure pool, kiddie pool, basketball court, game and play areas, sky patio, fitness gym, snack bar, and more.

The residential project is near Robinsons Place Las Piñas and Light Rail Transit Line 1 extension stations.

Mr. Yap also stated that end users, upgraders, and investors residing and working in the South area, including Las Piñas, Parañaque, and Cavite, are targeted for this project. — Aubrey Rose A. Inosante

Federal Land targets 2030 turnover for The Observatory’s Sora Tower

FEDERAL LAND NRE Global, Inc. (FNG) said Sora Tower, the first residential tower of The Observatory township in Mandaluyong, is expected to be turned over by 2030.

“The first residential tower set to rise in the development is Sora Tower, set for turnover by 2030 and promises to usher in a new era of living in the city,” the company said in a statement last week.

The Observatory, a 4.5-hectare mixed-use development, broke ground last week and is set to include eight residential towers, retail spaces, and an office building.

Sora, which translates to “sky” in Japanese, will feature 650 units ranging from studios to three-bedroom residences and penthouses, with sizes varying from 28 square meters (sq.m.) to 205 sq.m.

It draws inspiration from the vibrant and bustling Shibuya district in Tokyo, with indoor amenities including a sky lobby, children’s playroom, coworking or business center, fitness gym, entertainment room, and garden lobby, the company said.

Outdoor amenities include the swimming pool and pool deck, children’s pool and play area, pet park, lobby garden, and outdoor lounge.

The units are equipped with multi-functional sink modules and adjustable wardrobe shelves, in line with incorporating Japanese efficiency and functionality. They also feature the Genkan, a Japanese entryway concept that includes a porch for outdoor items like footwear.

FNG said that the design was inspired by the Philippine Eagle and reflects a commitment to sustainability and community living.

Renowned design consultants such as Nikken Sekkei Ltd., Garde Co., Ltd., Magnusson Klemencic Associates, and Pimentel, Rodriguez, Simbulan & Partners have contributed to creating the planned environment, the company noted.

The prime location of The Observatory provides residents and locators access to major business districts such as Makati, Bonifacio Global City (BGC), and Ortigas through well-connected routes such as EDSA and the BGC-Ortigas Link Bridge.

Additionally, residents are within a five-kilometer radius of essential facilities including Makati Medical Center, Ateneo School of Medicine, Ayala Center, GT Tower International, Asian Development Bank, SM Megamall, St. Luke’s Medical Center, and more.

“At The Observatory, we envision more than just a development; we see a nest where urban lifestyles converge to nurture a thriving community,” said FNG Vice-Chairman Yusuke Hirano. — Aubrey Rose A. Inosante

ERA Philippines bullish on real estate market

ERA Philippines said it expects a “boom” in the real estate sector this year due to the growing demand from overseas workers.

“[With] so many overseas people coming in to buy, it will be a boom in the real estate market. I am quite confident,” Bobby Kok, chief agency officer of ERA Philippines, told BusinessWorld in an interview last week.

ERA Philippines Chief Executive Officer Johann Garcia said that most overseas workers “choose to invest back in the Philippines through properties.”

For 2023, cash remittances coursed through banks rose by 2.9% to $33.5 billion, according to the Bangko Sentral ng Pilipinas (BSP).

“I believe that with all these tourists coming in, foreign investment increasing, it really helps the real estate market not just from locals but also foreigners,” said Zachary Kok, chief operating officer of ERA Philippines.

For February, net inflows of foreign direct investments into the Philippines climbed by 29.3% year on year to $1.4 billion, according to the BSP.

ERA Philippines is a franchise agreement between APAC Realty Ltd., a Singapore-based real estate brokerage under the ERA brand, and Philippine company Upper Room Realty, Inc.

Under the agreement, Upper Room has the right to operate or grant memberships for the operation of ERA member broker offices in Metro Manila for an initial 15-year term with effect from May 4.

Mr. Garcia said the company will release a mobile application where it can show property listings.

“It will also have agent support where agents can communicate with each other, get notifications. Basically, it’s going to help them drive sales,” he said. — Sheldeen Joy Talavera

Kenneth Cobonpue has a new home in Rustan’s

DIWA LAMP (Lantern, Php 15,500.00) — Fiberglass versions of Bul-ul — Filipino wooden deities believed to guard the rice crops of the Ifugao from Northern Luzon — stand to watch over a light enclosed in rattan strips, exuding a gentle glow.

DESIGNER Kenneth Cobonpue, born and raised in Cebu, has a mouthwatering client list — Forbes lists some of them as Queen Sophia of Spain, as well as then-power couple “Brangelina” (they have since split, but we assume the bed they purchased is still around somewhere). One can thus assume his prices skyrocket into the millions, but his new home in Rustan’s can allow one to get a piece from the designer for a mere P1450 (granted, that’s just a porcelain mouse, but still).

Rustan’s Makati gave Mr. Cobonpue space for KCurated, his home decor and accessories brand, and the designer made an appearance at its May 9 launch. Taking media guests on a short tour, he pointed at bowls (about P2800), lamps, and miniaturized versions of his famous chairs (though some of his full-sized pieces, like the Chiquita, a comfortable chair made with several wooden pegs that cradle one’s posterior, are also up for grabs). During the tour, he offered to sign any items bought during the day.

“We’ve always wanted to work with Rustan’s,” he told BusinessWorld in an interview, saying that they just couldn’t find the right formula for them to work together (home accessories seemed to be the key). He’s had a space in nearby Greenbelt for the past 10 years, but they have since announced moving to Bonifacio Global City’s Grand Hyatt Residences next month. “We just need a bigger space; we’ve been there for 10 years now. It’s just too small,” he said, noting that their new digs would have an art gallery and a cafe.

RATTAN: A TRIBUTE TO HIS MOTHER
Mr. Cobonpue has been known to work a lot with rattan, a species of climbing palms indigenous to the region. Rattan had been known as cane in the Western world, and furniture made from it has been well-regarded and treasured (Christian Dior had cane chairs in his atelier, and their famous Cannage quilted pattern was inspired by them). While their make is a symbol of regional pride, it also has a dark side: “caning” (a form of corporal punishment that involves being struck by a rattan cane) is still present in Southeast Asian countries, and were once a standard in some British schools. As well, the presence and fame of rattan furniture in the West can also be attributed to colonial practices.

Still, Mr. Cobonpue has praise for his chosen medium. “I’m very comfortable with rattan. It’s a great material because it’s very malleable and it’s sustainable. It’s easy to use,”he said. “It’s very robust…over time, of course, it biodegrades. It’s perishable. But with care, it lasts years; like decades.”

“With wood, you need to use a lot of energy to transform it into something. You cut it, you bend it — especially bending. That’s why rattan’s very sustainable. You can work (it with) your hands. You just need a torch. You don’t require a lot of energy to transform the material,” he said.

Also, the material is personal to him: “My mother used to work with rattan. She invented a technique for working with rattan that’s still patented. It’s well-used in their world of rattan manufacturing today.”

His mother is designer Betty Cobonpue, who had been active in the 1970’s and 1980’s. In an Instagram post last year, the designer said, “My mother, Betty Cobonpue, was my first design teacher. She had a strong sense of aesthetics and used this in creating beautiful forms using laminated rattan, which she had developed and popularized.”

“You know, not a lot of people know that,” he said about his mother’s own fame then — we had posed a question about him now being more famous than his mother had been. “I always knew how good she was. I was watching her work; I saw her designs. She had a really big collection. But she wasn’t really recognized for it. It was customary then that (when) you’re an Asian manufacturer, you produce things, you make it for other countries, and it goes under different brands; different names, sold wherever,” he said. “Her designs would be called something else in every country that she sold to.”

This lack of recognition for his mother’s masterpieces inspired him to create his own brand, and stamp his name and identity on it. “That’s why I decided to change all that, and made my own name. I insisted that (when) companies would buy from me, they had to use my name, they can’t change the name of the furniture, and (had to) label it Made in the Philippines.”

LUXURY, BUT FILIPINO
“When I did all these designs, I never thought about equating it with being Filipino. I just made it. Now, because it’s abroad…people associate this look (now) with the Philippines in the world of design,” he said.

We’ve mentioned rattan furniture as a remnant of colonial culture, and we point at Peacock chairs, rattan thrones made in Bilibid Prison and shipped to the United States during the American period of colonization. Chairs in the mold, showing a high, ornate back, had been used as seats by some of the most powerful people in the world, from John F. Kennedy to Marilyn Monroe. Mr. Cobonpue talks about how his own work with rattan connects to that heritage: “I think it reinvents rattan. It keeps it contemporary.”

More than changing the face of what rattan furniture looks like to the eyes of the world, he’s also out to change how the world sees the Filipino. ‘Aside from the designs, that would be, I think, my legacy: to create a brand, a Filipino brand, (that’s) luxury.”

“The biggest challenge, I think, is taking out the stereotype of what a Filipino is in the world,” he said. “In Europe, a Filipino is a domestic worker for most people.”

He gives an example of some of his pieces being priced similar to those of Italian designers, but people wondered about the high prices, since they were “only” made in the Philippines. “It’s as well-made as your Italian counterparts. It’s a stereotype we need to go against.”

“My challenge has always been to create something that is Filipino, yet very comfortable in an apartment in Milan; in New York. To be global, and still keep your identity.”

Despite being educated in New York and taking up apprenticeships in Germany and Italy, and having offices all around the world, his designs are still executed by craftsmen in Cebu. Asked what was in Cebu that made it all possible, he said, “Traditionally, Cebu had nothing. We have no agricultural land; nothing grows in Cebu. It’s always been a trading city. It’s always been a place where ideas are exchanged, and the people are very open, I guess, to the world.”

“We’ve always had to rely on our own resources, and the skills of our people.”

KCurated is exclusively available at Rustan’s Makati. – Joseph L. Garcia

Great Wall Motor goes global

The GWM Tank 300 is put to the test. — PHOTO BY DYLAN AFUANG

The Chinese auto group intends to be a heavyweight

By Dylan Afuang

THROUGH KILOMETERS of challenging roads, facilities backed by big investments, and under bright stage lights, Chinese car maker Great Wall Motor (GWM) — via its portfolio of brands comprised of Haval, Ora, Poer, Tank, and Wey — showed its intent to be a, well, great player in the global auto arena.

The company did just that when it sent media representatives and GWM dealers from Asean, Australian, and South American markets to the 2024 GWM Global Conference prior to Auto China 2024 — both events held at the brand’s home country.

In GWM’s facilities in Baoding and Xushui, we sampled the brand’s cars and learned how they’re made. This was prior to the public unveiling of the marque’s latest vehicles at the annual international motor show in Beijing, roughly 150 kilometers away from the manufacturing bases.

Haval banners crossover SUVs, Ora offers electric vehicles with retro design touches, Poer (pronounced as “power”) focuses on pickup trucks, Tank boasts off-road SUVs, and finally, Wey presents upscale crossovers and MPVs.

“Velocity” joined the Philippine contingent for the Conference and Auto China with Luxuriant Auto Group, Inc. (LAGI). The company distributes various vehicles from the aforementioned brands here, with these carrying the GWM branding.

Situated in the Xushui district of Baoding province, GWM described what it simply calls its manufacturing base as “one of the largest production bases of (GWM) and produces models under its Haval and Wey brands.”

The base covers 13 square kilometers and has collected investment exceeding CN¥30 billion (roughly P23 billion). The site is expected to produce one million vehicles annually. Occupying 1,113 square meters of the base is “the first comprehensive test field constructed by a Chinese auto brand” upon which GWM performs a battery of tests to its vehicles prior to production. Circling the test track is a 7.2-kilometer oval track that allows vehicles to reach speeds of up to 200kph. Within this high-speed track are simulated hilly and twisty roads where pre-production cars’ performance and handling are evaluated.

Attendees of the Global Conference were able to ride the Haval SUV as it zoomed around the oval track, steered Ora’s stylish O3 and O3 GT and 07, and Wey’s upscale SUV and MPV around cones, and scaled simulated terrain with the Tank SUV and Poer pickup truck.

Of note is the Wey Gaoshan luxury MPV, which made its first local appearance at the 2024 Manila International Auto Show (MIAS) and is slated to arrive within this year, LAGI Product Marketing Manager Fritz De Ocampo confirmed to the attending Philippine media.

Near the test tracks stands GWM’s Haval Technical and Design Center. Touted to be “the largest research and development facility among Chinese auto brands in China,” it serves as the global R&D site for Haval and now, for the company’s entire brand portfolio.

The center “provides support for the entire vehicle development process, including product planning, styling, engineering, and prototype production and testing” for the auto group. Product testing is performed in 14 laboratories that include high-altitude environment simulation and a wind tunnel. In total, the testing facilities cover an area of 45,000 square meters.

In the prototype center, it occupies an area of 24,000 square meters and includes departments for vehicle prototype validation, concept car production and inspection. Despite GWM carrying battery electric vehicles in its stable, the company is venturing into hydrogen fuel cell power, too.

Through its subsidiary GWM-FTXT, the automaker is producing hydrogen energy and storage and conversion facilities, and applying the powertrain to commercial vehicles. GWM has yet to produce its own trucks and buses, but its FTXT technology is utilized by its Chinese truck maker partners FAW, Kinglong, and Yutong.

FTXT hydrogen technology is being used by 500 vehicles in China, GWM claimed, adding that it aims to expand the market reach of the technology and lower the production costs of the systems.

Robinsons Retail eyes larger market share for drugstore business

GOKONGWEI-LED Robinsons Retail Holdings, Inc. (RRHI) said it aims to expand its presence in the drugstore segment.

“We believe there is an opportunity to increase market coverage for all our banners, as there are many municipalities and barangays in the Philippines that still lack drugstores,” said RRHI President and Chief Executive Officer Robina Y. Gokongwei-Pe during the company’s virtual annual shareholders meeting last week.

“Our aspiration for the drugstore segment is to simply become more accessible to our customers. By doing so, we aim to boost our market share and brand value,” she added.

RRHI has a presence in the drugstore segment through brands such as South Star Drug, TGP, and Rose Pharmacy.

Ms. Pe also said that RRHI is prepared to capitalize on potential mergers and acquisitions (M&As) in the drugstore segment that could enhance the company’s value and presence.

“In terms of major acquisitions, we are always on the lookout for value-accretive M&As. Should there be an opportunity, we will be ready to capitalize,” she added.

On RRHI’s overall store expansion, Ms. Pe stated that the company is looking to expand beyond the National Capital Region.

“With 30% of our stores located in Metro Manila, we want to accelerate our expansion outside the capital. In terms of formats, we’re looking to open more of our core supermarket and drugstore banners,” she said.

As of end-March, RRHI has 2,399 stores, including 756 food segment stores, 1,072 drugstores, 50 department stores, 224 DIY stores, and 297 specialty stores. The company also has more than 2,100 franchised stores of pharmacy-chain TGP.

Ms. Pe said that RRHI’s margins are expected to remain intact despite increasing competition from hard discount retailers such as DALI Everyday Grocery. She added that the company is continuously enhancing its product mix and gaining more scale to counter increasing market competition.

“To maintain market share, we will continue to differentiate by offering a wide range of relevant products and providing an exceptional shopping experience, be it offline or online,” she said.

“We have entered the hard discount category through a stake in O!Save, which is aggressively expanding. The hard discounters focus on small pack sizes and sachets, versus our core supermarket formats that offer regular and large pack sizes, suggesting that there is limited pricing pressure for some products,” she added.

Meanwhile, Ms. Pe noted that sales of its discretionary segment are expected to recover as the company opens more stores.

“We believe that this is transitory. We should see an acceleration in revenues for these segments for the balance of 2024 as we continue to open stores and refine our product mix,” she said.

In the first quarter, RRHI reported a 9.5-fold increase in attributable net income to P5.1 billion, following the one-time gain from the Bank of the Philippine Islands-Robinsons Bank merger that closed earlier in the year. Net sales rose by 2.9% to P45.9 billion.

RRHI shares were last traded on May 10 at P38 per share. — Revin Mikhael D. Ochave

Functional comfort

SIHOO ergonomic chairs on display at the TWU x SIHOO Showroom

TWU and Sihoo launch showroom of ergonomic chairs

THE COMBINATION of style and comfort found in the chairs of Shenzhen Sihoo Intelligent Furniture is set to make their mark in the Philippines. Ergonomic products distributor Things We Use PH (TWU) recently opened a flagship showroom featuring the best of Sihoo chairs.

During the opening of TWU x Sihoo at Ayala Malls Manila Bay on May 9, TWU co-founders Rose Sunga and Aldrich Tang showed off the range of ergonomic chairs that can be found at the showroom.

Guests surveyed the variety on display. Ms. Sunga told the media that Sihoo is known for being very innovative. “We have a wide selection of ergonomic options, each with their own character and focus on comfort,” she said.

The bestseller of them all is the M57, the mesh office chair that provides basic lumbar support, with a starting price of P10,000. The top-of-the-line offering is the Doro S300, known for its “anti-gravity mechanism” that allows for maximum seating comfort and weightless recline, priced at P31,000.

Putting premium on the quality of one’s own chair hasn’t always been the norm, though. Sihoo has been innovating in the furniture design space since 2011, but since the pandemic, they observed people working and studying from home much more, with health shooting up as a big priority.

“Because of the changing modern times, people have moved their offices to their homes. Sihoo has noticed this. We need to take care of our bodies especially now, a very strong reason for us to continue our innovating,” said Luo Huiping, chairman of Sihoo, at the showroom launch.

Sihoo is known for crafting ergonomic chairs and standing desks for multiple purposes, be it gaming, home office, or on-site set-ups.

Meanwhile, TWU was started by Ms. Sunga and Mr. Tang in 2020 to address the demand for ergonomic solutions in a market moving towards a sedentary lifestyle. They were the official online distributor of Sihoo branded products in the Philippines.

Ms. Sunga explained that Filipinos have had a rapidly growing interest in Sihoo products in particular, leading to “overwhelmingly positive responses” once they purchase and use the products. This was a major factor in the decision to open a flagship showroom with Sihoo.

“It’s not just about generating revenue; it’s about giving back to people something that would make their lives comfortable,” she added.

Amanda Bonife, founder of the Scoliosis Philippines Support Group, graced the event to share her testimony regarding the chairs. (Scoliosis is a three-dimensional, unnatural sideways curve of the spine of more than 10 degrees.)

For Ms. Bonife, the life of a scoliosis patient is marked by a continuous search for solutions to address back pain and improve quality of life. “When TWU generously donated a Sihoo chair to our office, I was thrilled and so grateful. It significantly enhanced my work performance and efficiency,” she said.

However, back issues like scoliosis don’t really go away when you get a nice chair. Other methods to cope include proper breathing and posture.

“As a scoliosis patient myself, with multiple slipped discs and pain all throughout my life, my goal is to encourage people to always seek professional help for pain management,” she said.

Ms. Sunga agreed that finding the ergonomic chair for them at TWU x Sihoo is but one step in the pain management journey — but it is a very important one. “If your back is in pain, it greatly affects your mood, your performance. You have to have a decent chair.”

The TWU x Sihoo showroom is on the 4th floor of Building A, IT Zone, Ayala Malls Manila Bay. — Brontë H. Lacsamana

Omoda, Jaecoo showcase lineups at Auto China

The author poses at the Chery International headquarters. — PHOTO BY ANGEL RIVERO

New brands gird to enter PHL market

IN RECENT YEARS, Chinese automotive trade shows have begun commanding attention and exerting greater influence on the global automotive industry. They have established themselves as among the foremost platforms for innovation, collaboration, and unveiling new technologies that may shape the future of mobility worldwide. Moreover, China’s very fast-growing automotive market also enables it to play a very important role in driving the transition to electric vehicles.

Therefore, it is clear why the recently held 2024 Beijing International Automotive Exhibition, also known as Auto China, has become one of the must-attend events for industry leaders, automotive writers, enthusiasts, and stakeholders. Now on its 18th edition, the Beijing International Automotive Exhibition was held over the last week of April until early May.

I attended this trade show as part of the Philippine contingent of the young car brands Omoda and Jaecoo, which are both under the mother company, Chery Automobile. Omoda and Jaecoo are set to publicly launch in the Philippines very soon, and they are positioning themselves as a modern but more-affordable alternative to existing favorites in the local crossover and SUV market. Omoda is being groomed to be more upscale and new age, while Jaecoo describes itself as the more adventurous brother.

Omoda and Jaecoo, together with Chery Automobile, brought over 2,000 guests to attend their presentation at this year’s Beijing International Automotive Exhibition, and later to attend the launch of the Omoda 7 at their headquarters in Wuhu.

Their presentation at the Beijing International Automotive Exhibition displayed the Omoda E5 (their first pure-electric model) and the Jaecoo J7 and J8 — which we’ve already seen at this year’s MIAS (Manila International Auto Show), except these variants on display were PHEVs.

The trade show presentation also served as the official launch of their O-Universe “Green OJ” initiative, which puts great emphasis on sustainability. As a matter of fact, they have already partnered with organizations such as IUCN, Indonesia’s Pandawara, Spain’s Reforest, Mexico’s Selva Teenek, and New Zealand’s Keep New Zealand Beautiful.

A few days later, we were transported to their global headquarters in Wuhu, where the Omoda 7 was officially unveiled. At the time of revelation, it was not yet a production car, and therefore not yet fit for full testing. We are looking forward to try it out soon, and give our drive impressions as soon as possible!

Rates of Treasury bills, bonds may decline on CPI, GDP data

BW FILE PHOTO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week may end mostly lower following the release of key Philippine economic data.

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

On Tuesday, it will offer P30 billion in reissued 20-year T-bonds with a remaining life of 14 years and eight months.

T-bill and T-bond rates could track the mixed movements in secondary market yields following the release of Philippine inflation and gross domestic product (GDP) data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, the 91 and 182-day T-bills went down by 7.59 basis points (bps) and 2.28 bps week on week to end at 5.7818% and 5.9081%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website. Meanwhile, the 364-day T-bill went up by 1.09 bps to end at 6.0751%.

For its part, the 20-year bond’s yield dropped by 7.77 bps week on week to close at 6.9054%.

Headline inflation picked up for a third straight month to 3.8% year on year in April amid higher food and transport costs from 3.7% in March.

This was slower than the 6.6% print in the same month a year a prior. It was within the Bangko Sentral ng Pilipinas’ (BSP) 3.5-4.3% forecast for the April consumer price index (CPI) and marked the fifth straight month that inflation settled within the central bank’s 2-4% annual target range.

The April CPI was also below the 4.1% median estimate in a BusinessWorld poll of 16 analysts.

For the first four months, headline inflation averaged 3.4%, below the BSP’s 3.8% full-year forecast.

Meanwhile, Philippine GDP expanded by 5.7% in the first quarter, faster than the 5.5% expansion logged in October-December 2023.

However, this was slower than the 6.4% growth seen in the first quarter of 2023 and was below the 5.9% median forecast of 20 economists in a BusinessWorld poll.

This also fell short of the government’s 6-7% full-year GDP growth target.

Yields on the 20-year T-bond to be auctioned this week could range from 6.85% to 6.95% on expectations of slower US CPI last month, a trader said in an e-mail.

April US consumer inflation data will be released on May 15, Wednesday.

Last week, the Treasury raised P15 billion as planned from the T-bills as total bids reached P52.947 billion, or over thrice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P19.037 billion. The average rate for three-month paper went down by 8.9 bps week on week to 5.78%. Accepted rates ranged from 5.77% to 5.79%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P16.31 billion. The average rate for the six-month T-bill stood at 5.93%, down by 5.8 bps, with accepted rates at 5.893% to 5.954%.

Lastly, the Treasury raised P5 billion as planned via the 364-day debt papers as demand for the tenor totaled P17.6 billion. The average rate of the one-year debt dropped by 2.5 bps to 6.056%. Accepted yields were from 6% to 6.065%.

Meanwhile, the reissued 20-year bonds to be auctioned off on Tuesday were last offered on April 16, where the government did not accept any bids. The last successful award of the issue was on Nov. 21, 2023, where the government raised P20 billion as planned from the papers at an average rate of 6.593%, 15.7 bps below the 6.75% coupon for the series.

The BTr wants to raise P210 billion from the domestic market this month, or P60 billion from T-bills and P150 billion via T-bonds.

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