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Lynk & Co wants to break the ‘made in China’ stereotype

A huge Lynk & Co sign is affixed to this building at the Ningbo International Circuit. — PHOTO BY KAP MACEDA AGUILA

This challenger brand is taking on the premium segment

By Kap Maceda Aguila

THE ASPIRATION of new local player Lynk & Co, definitely a rising star in the larger Geely stable of brands, is lofty.

“In the new-energy era, Geely’s positioning of Lynk & Co is very clear, which represents (its) ambition of globalization and high-end orientation. It is to be the number-one car brand of high-end trending (SUVs) and EVs,” said Lynk & Co CEO Xiangyang Liu at the marque’s Hangzhou, China headquarters recently. Addressing a Philippine delegation comprised of United Asia Automotive Group, Inc. or UAAGI (distributor of the brand’s vehicles) executives along with bank partners, media representatives, and content creators, Mr. Liu added, “In November 2023, Lynk & Co became the fastest Chinese premium car brand to reach one million (units in) sales volume in less than six years… In the field of new energy vehicles, Lynk & Co. continues to make great efforts in sales.”

And though the brand is a veritable toddler in the automotive scene — launched just eight years ago in Berlin — the executive wasn’t shy about claiming superlatives such as “highly good-looking,” “high performance,” and “high safety” — underscoring that the ultimate goal is to “bring Chinese automobiles to a new level.”

For many car browsers, this notion still takes some getting used to, or needs to be driven home more thoroughly and forcefully amid a glut of brands from our country’s big neighbor to the north. “Velocity” exclusively spoke to UAAGI Chief Marketing Executive and Senior Vice-President Lyn Buena in China about this, who remarked, “I believe that ‘premium’ is something that is inherent to the Lynk & Co brand given its lineage. It’s something that is authentic, and you can see it in the cars that we have — in the models that we have currently, and in the ones that we’ll be offering soon,” she said.

According to Mr. Liu, Lynk & Co always strives to develop “original designs,” which come out from its design center in Gothenburg, Sweden. He insisted that the brand “grows with the customers, (its) design advances as the needs evolve.” The main target demographic is undoubtedly a younger set — so-called “contemporary young users (with a) diversified taste for individuality,” and the design team espouses to meet this need.

Beginning in 2020, Lynk & Co commenced its “global strategy” which kicked off in Europe. It’s apparent that the brand is not using the average Chinese auto company playbook, as it deployed a “subscription-based business model” that targets “urban, young, and connected” clients. According to the company, by July 2023 it had registered 229,783 subscriptions — predicated on 11 locations (or clubs) across six European countries including the Netherlands, Sweden, Belgium, Germany, Italy, and Spain.

By November of 2021, it ventured into the markets of the Middle East, first establishing a foothold in Kuwait, then in the other so-called GCC or Gulf Cooperation Council countries. As it makes forays into Asia, Lynk & Co now boasts a network of more than 370 Lynk & Co Centers, 120 Lynk & Co Spaces, and a Lynk & Co Club.

It promises to further penetrate markets in Southeast Asia, Middle East and North Africa (or MENA), and Central Asia even while it sets its sights on new territories like Latin America.

This year’s Manila International Auto Show, which marked the Philippine debut of Lynk & Co, also saw the public unveiling of its initial salvo of offerings: the 01 PHEV (plug-in hybrid electric vehicle) crossover, and the 06 SUV. The 01 gets a turbocharged 1.5-liter MP+ engine paired with a seven-speed wet dual clutch transmission. A separate battery-powered electric motor (charged via a CS2 port) can offer as much as 69 kilometers of pure-electric range, and allows the system to output a combined 262ps and 265Nm.

The 06 subcompact crossover is powered by a three-cylinder, turbocharged 1.5-liter mill, and sports (like the 01) Aurora Borealis DRLs and Energy Cube LED rear lamps. It gets a panoramic sunroof, a powered tailgate, and dual chrome exhaust pipes.

The 05 SUV, a surprise reveal at the show (unlike the previous two which were previewed to partners and the media), is a good-looking fastback that aims to punch above its price point. A turbocharged 2.0-liter engine provides motivation for the 05, serving up 254ps and 350Nm which drives all four wheels. Priced at P2.748 million, this is not meant for the entry-level browsers but, asserted Lynk & Co, “those who value refined power and luxury.” From the get-go, the auto firm wants its messaging clear.

Lastly, the 03+ sedan also made an appearance, albeit as a preview. “The 03+ will be available here in Q4,” revealed Ms. Buena to this writer just recently. As for the so-called EM-P models (Lynk & Co nomenclature for PHEVs), they will “likely be here by 2025.”

The first of the brand’s showrooms will open next month on Zapote Road in Alabang.

Twala to enhance Anti-Red Tape Authority’s digitalization efforts

The Anti-Red Tape Authority (ARTA) has announced a strategic partnership with Twala, a digital signature and digital identity startup supported by the Department of Science and Technology (DoST) through the DoST Startup Grant Fund, to enhance ARTA’s digitalization strategy. The partnership aims to streamline processes and improve the ease of doing business in the country.

Thus, a Memorandum of Understanding was entered into by and between ARTA and Twala, represented by ARTA Director-General Ernesto V. Perez and Twala CEO and Co-Founder Engr. Jeffrey V. Reyes. The signing ceremony occurred last April at the ARTA Central Office in Quezon City.

“This collaboration with Twala is a significant step towards our goal of enhancing the ease of doing business in the country,” Mr. Perez shared. “We look forward to leveraging Twala’s technology to drive digital transformation and improve efficiency within our organization which would ultimately translate to providing better and efficient service to our fellow Filipinos, the very mandate of ARTA.”

“Twala is thrilled to partner with ARTA to support their digitalization efforts,” Mr. Reyes added. “By leveraging our expertise in digital signatures and digital identity, we aim to help ARTA streamline processes and eliminate bureaucratic red tape, ultimately making it easier for businesses to operate in the Philippines.”

In addition to the partnership with ARTA, Twala has also collaborated with the Supreme Court to provide inputs in their ongoing work to draft rules to allow electronic notarization in the country.

The startup has also partnered with the Philippine Senate to help them digitize their internal processes, further demonstrating Twala’s commitment to supporting digital transformation in the Philippines.

The partnership between ARTA and Twala, along with other government agencies, signifies a commitment to innovation and efficiency in the public sector, ultimately benefiting businesses and citizens alike.

PSE sees 19.3% increase in first-quarter net income

BW FILE PHOTO

THE PHILIPPINE Stock Exchange, Inc. (PSE) recorded a 19.3% increase in its first-quarter net income to P242.38 million, driven by financial asset gains and higher interest income.

“The higher earnings result was mainly due to the 207% improvement in other income to P120.17 million, on account of higher interest income and mark-to-market gain on financial assets at fair value through profit or loss,” PSE said in a statement.

First-quarter revenue dropped by 7.6% to P353.34 million from P382.29 million as trading-related revenue composed of service, transaction, and block sale fees declined by 24% to P102.43 million.

Listing-related fees also fell by 21.6% to P114.72 million while total expenses rose by 1.3% to P174.99 million.

During the quarter, the market operator was able to raise P4.89 billion worth of capital from two follow-on offerings and one private placement.

Daily average value turnover was down by 1.1% year-to-date to P6.03 billion at the end of the quarter.

“The PSE index (PSEi) broke past the 7,000 mark intraday several times in the last quarter but failed to hold on to this key level due to persistent concerns on inflation, depreciation of the peso and geopolitical tensions abroad,” PSE President and Chief Executive Officer Ramon S. Monzon said.

“Despite the uncertainties these headwinds continue to bring to the market, PSE will carry out liquidity-boosting initiatives in line with its strategy of growing its pool of listed companies and investors and introducing more products and services,” he added.

The 2024 initial public offering (IPOs) calendar started with the listing of OcenaGold (Philippines), Inc. on May 13. It will be followed by the stock market debut of Citicore Renewable Energy Corp. in June. The PSE is eyeing to have six IPOs this year.

On Friday, the PSEi went down by 0.14% or 9.51 points to finish at 6,618.69 while the broader all shares index fell by 0.01% or 0.37% to end at 3,524.15.

PSE shares were last traded on May 17 at P199 apiece. — Revin Mikhael D. Ochave

From uniforms to upcycling

PHILIPPINE MARKETING ASSOCIATION Board of Directors 2024

Ucycle’s Tati Fortuna says every little bit helps when it comes to being sustainable

CLOTHES from Michael Cinco and artworks up for auction from National Artist Benedicto “BenCab” Cabrera may have been highlights of the PMA (Philippine Marketing Association) Ramp Fashion Show and Charity Auction Ball, but it was hard to beat the gala’s opening act.

Marketing executives — members of the PMA — modeled sustainable outfits under casual, formal, and Filipiniana categories during the gala on April 30. Over 30 looks were presented — some were jazzed up with trims and accessories made with upcycled materials (there was antique lace on one of the gowns, along with clutches made of aluminum can tabs). All of these clothes appeared on the runway thanks to PMA’s collaboration with sustainability advocate and entrepreneur Tati Fortuna, President of Ucycle.

Ms. Fortuna, whom one might spot in society circles sporting her chicly sharp bob, founded the company during the pandemic. The company specializes in upcycling materials and turning them into uniforms and corporate workwear.

In an interview with BusinessWorld, Ms. Fortuna discussed the clothes she placed on her fellow executives. “We did not shop for anything new. It’s all shopped from their closet,” she said. “I upcycled, I recycled, I repurposed — what(ever) can be used.” While BusinessWorld noticed the trims and the clutches, she pointed out brooches and earrings handmade from scrap and other recycled materials (which to the untrained eye, looked absolutely brand new).

FROM UNIFORMS TO REALIZATION
Ms. Fortuna said that prior to founding Ucycle, she had a company which made uniforms and attire for hotels, airlines, resorts, and other industries. “These companies have hundreds, if not thousands of employees,” she said. Since a lot of these industries slowed down during the pandemic, so did hers. “The slowdown in the pandemic gave me time.”

That was when she noticed the amount of cloth that her company used. “Oh my God — there’s so much textile that I contributed to the corporate world.” She then asked her clients if there was a system in place for taking back and reusing their clothes, and, finding out there was none, she got to work making samples (although she did tell us that she had been toying with making samples from upcycled fabric before founding Ucycle).

They still do corporate workwear and uniforms, but now they’re made from deadstock fabric, upcycled and repurposed textiles, and even their former work, returned to them by their former clients.

She founded the company along with her daughter, Carmela, and they’ve designed things like pajamas from old hotel bed sheets. She said that her children were her inspiration, noting that her son, “At a very young age, he would already talk about not using straws… without [us] telling him.”

SUSTAINABLE STYLE
This isn’t her first time melding her advocacies with fashion: last year, Ms. Fortuna wrote a book called Boss Manual: Book of Sustainable Style for Men. For it, she contacted a number of male executives from industries as varied as architecture (Mañosa & Co. Inc.’s chief executive offficer Angelo Mañosa) to chocolate (owner and Head Chocolatier for CMV Txokolat Christian Valdes) and dressed them in sustainable clothing, with handy style notes in the margins. The book was also launched at a fashion show last year.

“My hope is that these bosses, with prominent platforms in their own specific industries, will serve as models through this book to inspire, encourage, and influence more people to practice sustainable fashion,” she said in the book’s preface. And that was also why she was glad to dress the PMA executives for that evening.

“It is important to everyone,” she said about sustainability and its accompanying values. “Right now, we’re all complaining about the heat. That all goes back to sustainability.”

FOR THE EARTH’S SAKE
Upcycling in the present sounds like an apology to the Earth. “We all have to be responsible for the actions that we take,” she said. “I think that there’s nowhere else to go but to be responsible about the corporate textile that I contributed in all the uniforms [I made].”

Over 267,000 tons of textile waste are dumped in landfills each year, as per a Solid Waste Management status report of the Environmental Management Bureau*.

“My ultimate goal, as a circular fashion advocate, is for people to keep materials in use for as long as possible,” she said. Ms. Fortuna says that people may think that their own little actions towards greener living may come to naught. However, she said “Everything we do, no matter how little, if we do it together, it’s going to go a long way.” — Joseph L. Garcia

*https://www.bworldonline.com/arts-and-leisure/2024/02/12/574867/how-to-deal-with-too-much-clothing-in-the-world/

Does your Autosweep RFID account have load?

San Miguel Corp. chief Ramon S. Ang — PHOTO BY KAP MACEDA AGUILA

28% of vehicles passing through NAIAX don’t

AN INTEGRAL PART in the network of SMC Infrastructure — which includes the Tarlac-Pangasinan-La Union Expressway (TPLEX), the Southern Tagalog Arterial Road (STAR), South Luzon Expressway (SLEX), Skyway System, Boracay Airport, MRT-7 rail and road project, and the Bulacan Bulk Water Supply Project — the NAIA Expressway or NAIAX is a crucial thoroughfare not only for those obviously looking to cut travel time to and from the country’s three airport terminals in Pasay City but for many wanting to bypass EDSA and other congested at-grade options.

Despite a 60-kph speed limit for safety reasons, intimated San Miguel Corp. chief Ramon S. Ang (RSA) in a past meeting with members of the motoring media, the importance of the NAIAX (which also conveniently connects to the Skyway) cannot be overstated. When I head out from our Quezon City home to, say, the Entertainment City or the Mall of Asia, I usually take this elevated tollway rather than suffer through EDSA’s perennial sardine-can experience.

However, even NAIAX is not spared from congestion due to volume — exacerbated by motorists who fail to load their Autosweep RFID accounts before heading up to the 5.4-kilometer expressway. This was shared by RSA over lunch just two weeks ago at the SMC headquarters. Of course, this causes delays by backing up the traffic, he told us. There are cash lanes, obviously, yet some of these motorists attempt to pass the RFID booths knowing they don’t have load.

To be honest, several offenders shouldn’t be a problem, but we could only wish that was the case. A staggering 28% of motorists passing through the NAIAX system fail to ensure that their vehicle’s RFID account has enough credit to get them through, reported SMC Infrastructure (See table).

Worse, although there’s been a longtime push to go cashless, many of our fellow motorists have actually been steadfastly averse to the idea of getting RFID stickers — arguing that they usually don’t pass there anyway. Based on SMC Infrastructure’s data, only 70% of vehicles passing through NAIAX actually have those stickers. Sure there’s a cash lane, but have you seen the queues?

While the tollway operator has moved the payment/RFID sensors to the individual NAIAX exits instead of the toll plaza in front of Terminal 3 to speed up entry, don’t be surprised if it reverts to the old system so that the two-lane exit ramps won’t bottleneck due to these offending Autosweep account holders without credit.

Please be considerate and load up, folks.

Meralco says franchise renewal gains backing

MERALCO.COM.PH

MANILA Electric Co. (Meralco) said the support for the renewal of its franchise from various lawmakers affirms its commitment to providing power services.

“The filing of separate bills to renew the legislative franchise of Meralco by veteran and respected lawmakers is a firm validation of the relentless efforts of Meralco to deliver power and serve millions of Filipinos,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a statement last week.

House Committee on Ways and Means Chairman and Albay Rep. Jose Maria Clemente “Joey” S. Salceda has filed House Bill (HB) No. 9793, which seeks to extend the power distributor’s existing franchise set to expire in 2028.

The bill also aims to expand the scope of the company’s operations, a provision absent in its current franchise under Republic Act No. 9209, signed into law in June 2003.

Other bills seeking to extend Meralco’s franchise are HB No. 9813 filed by Cagayan de Oro Rep. Rufus B. Rodriguez and HB No. 10317 by former House Speaker Lord Allan Jay Q. Velasco.

“Granting the franchise renewal would allow Meralco’s growing number of customers to continue enjoying stable and reliable electricity service, which is vital in powering not just households but also industrial and commercial customers that drive the country’s economic progress,” Mr. Zaldarriaga said.

Mr. Zaldarriaga made the statement in response to energy consumer advocacy group People for Power (P4P) coalition questioning what it said was the “rush” to renew Meralco’s franchise.

Gerry C. Arances, convenor of P4P, said that a franchise renewal “will remove the ability of the government to hold them to account and protect consumers.”

“The fact that Meralco is pushing for an early renewal shows that they want to escape any responsibility for any findings that the House of Representatives or any government body might find in an investigation into their practices,” Mr. Arances said.

“Their franchise is still good for a few more years, they’re earning a lot of money, they can wait until consumers have their say,” he added.

He said that Meralco does not “exactly have a clean track record on this end, with consumers repeatedly questioning terms, expensive fossil-based contracts, and other business practices that weigh heavily on our pockets.”

“As a highly-regulated entity, Meralco has always been strictly compliant of the laws and regulations governing its franchise,” Meralco’s Mr. Zaldarriaga said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

El Niño mitigation measures also seen useful during La Niña

REUTERS

THE MEASURES implemented to curb the effects of El Niño will also help reduce La Niña’s impact on agriculture.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the government’s mitigation measures for El Niño will also come in handy for the heavier-than-usual rains brought about by La Niña.

“Preparations for El Niño include pre-emptive imports of rice and agricultural products, extension of reduced tariffs on some imported agricultural products and simplified import procedures,” Mr. Ricafort said in a Viber message.

As of May 8, damage and loses to agriculture due to El Niño hit P6.35 billion, affecting over 270,034 metric tons of crops. Rice and corn were the most affected commodities.

Last year, the government extended the lower tariff regime for rice, pork, and corn, via Executive Order (EO) No. 50.

The President also issued Administrative Order (AO) No. 20, which simplifies the procedures for agricultural imports, while removing non-tariff barriers.

Former Agriculture Undersecretary Fermin D. Adriano said that La Niña is expected to be delayed, as predicted by PAGASA, the government weather service.

“It (may) start July or August. Expect prices to increase because of the combined effect of rising production costs and climate change,” Mr. Adriano said in a Viber message.

In its latest bulletin, PAGASA said that there is a 60% chance of La Niña occurring between June and August as El Niño is weakening. El Niño’s impacts, however, such as hotter and drier conditions, may persist.

The Department of Agriculture (DA) said that it is preparing for a “more destructive” La Niña which could potentially affect crops late in the year.

The DA said it will focus on areas which were historically affected by previous occurrences of the La Niña.

Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa told reporters last week that if La Niña were to happen during the end of that year, it could potentially affect the dry season planting. — Adrian H. Halili

L’Oreal, Watsons launch joint green initiative

L’OREAL and Watsons will work together for the environment. The cosmetics giant in the Philippines and the drugstore and beauty chain announced this month the kickoff of the first Green Joint Business Plan in the Philippines to accelerate sustainability in the beauty and wellness sectors. They are joining forces to create programs that will help tackle plastic waste, raise awareness on sustainable choices, and provide livelihood opportunities for vulnerable populations in the Philippines.

The programs include the Recycle for Rewards program led by Garnier, a brand under the L’Oréal Group. Consumers are encouraged to donate empty beauty and wellness bottles at select Watsons stores to get discounts. The initiative starts in June at 23 participating Watsons stores in Metro Manila.

Under Watsons’ Sustainable Choices category, L’Oréal is also adding products that are refillable, are made with recycled content and sustainable paper, and with ingredients that are from bio-based, abundant, or circular processes. An example of this is Garnier’s Micellar water that uses 100% post-consumer recycled (PCR) PET plastic (R-PET). Cartons used in L’Oréal’s packaging are made of FSC-certified paper. All point-of-sale materials used by L’Oréal in Watsons stores are 100% eco-designed. They follow the 3R strategy that involves reducing the weight of products and packaging by designing them with smaller dimensions and lighter materials whenever possible. Additionally, L’Oréal aims to replace traditional materials with alternatives that have a better environmental footprint, making them more suitable for reuse and recyclability.

Watsons will also support L’Oréal’s Digital Beauty Academy, a social inclusion program that provides training on beauty, wellness, and social commerce. In turn, L’Oréal will support Watsons’ Alagang Pangkalusugan medical and wellness program, that aims to uplift overall wellbeing of vulnerable communities. The Alagang Pangkalusugan program will be held in Metro Manila, Palawan, Bacolod, Iloilo, and Pampanga this year.

“This first green joint business plan in the Philippines is a historic milestone in the longstanding partnership between L’Oréal and Watsons in the Philippines. Beyond our responsible business practices, I’m very proud that we are coming together to be catalysts for change by acting with urgency and helping solve the pressing environmental and social issues in the Philippines. It’s the right thing to do,” said Yannick Raynaud, Country Managing Director of L’Oréal Philippines.

According to a statement, under its L’Oréal For the Future commitments, 100% of the plastic used in its packaging will be recycled or bio-sourced by 2030, and 95% of its product ingredients will be derived from bio-based sources, abundant minerals, or from circular processes by 2030.

Danilo Chiong, Managing Director of Watsons in the Philippines also shared his support to the partnership. “At Watsons we have updated our brand promise from ‘Look Good, Feel Great’ to ‘Look Good, Do Good, Feel Great’ to signify our strong commitment to do more sustainable practices. This first ever green joint business plan is a comprehensive approach to driving collective impact to our planet, our people, and products. I am inspired by the work we are doing with L’Oréal and the positive impact that we can drive in the Philippines and hope that programs like this can inspire other companies to do what is right for the environment.” — JLG

T-bill, bond rates may drop as BSP turns dovish

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RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week may go down after dovish comments from the Bangko Sentral ng Pilipinas (BSP) chief.

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

On Tuesday, it will offer P30 billion in fresh 20-year T-bonds.

T-bill and T-bond rates could track secondary market yield movements following policy easing hints from BSP Governor Eli M. Remolona, Jr. last week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, the 91-day T-bill went up by 1.73 basis points (bps) week on week to end at 5.7991%, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website. Meanwhile, the 182-day and 364-day T-bills went down by 0.75 bp and 5.09 bps to end at 5.9006% and 6.0242%, respectively.

For its part, the 20-year bond saw its yield go down by 23.42 bps week on week to close at 6.6712%. 

“The BSP MB (Monetary Board) meeting, which was considered a non-event, was liberal with their words, saying a cut is possible in August…

Expect a continuation rally as the dovish Monetary Board meeting could be considered as the game-changer,” a trader likewise said in an e-mail.

The Monetary Board on Thursday kept benchmark rates steady for a fifth straight meeting but signaled a “less hawkish” tone amid slowing inflation, with Mr. Remolona saying their easing cycle could begin as early as August.

The BSP left its target reverse repurchase rate unchanged at a 17-year high of 6.5%, as expected by 17 out of 19 analysts in a BusinessWorld poll. Interest rates on the overnight deposit and lending facilities were likewise kept at 6% and 7%, respectively.

Mr. Remolona said they are now “somewhat less hawkish than before” and could begin easing their monetary policy stance by the third or fourth quarter this year, adding they expect one or two 25-bp rate cuts within the second semester.

He said BSP may start easing ahead of the US Federal Reserve, which he expects to start cutting rates by September.

The Monetary Board’s only meeting for the third quarter is scheduled for Aug. 15. Meanwhile, in the fourth quarter, it will hold reviews on Oct. 17 and Dec. 19.

The Philippine central bank raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023.

On the other hand, the Fed this month kept its target rate at the 5.25%-5.5% for a sixth straight meeting.

The US central bank hiked benchmark rates by 525 bps from March 2022 to July 2023. Fed officials recently said they remain cautious about kicking off their easing cycle amid data showing sticky inflation and a strong economy.

Last week, the BTr raised P17 billion from the T-bills it auctioned off, higher than the P15-billion program, as total bids reached P59.842 billion or nearly four times the amount on offer. 

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P21.412 billion. The average rate for the three-month paper went down by 5.3 bps week on week to 5.727%. Accepted rates ranged from 5.698% to 5.755%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P19.91 billion. The average rate for the six-month T-bill stood at 5.893%, declining by 3.7 bps, with accepted rates at 5.873% to 5.91%.

Lastly, the Treasury raised P7 billion via the 364-day debt papers, higher than the programmed P5 billion, as demand for the tenor totaled P18.519 billion. The average rate of the one-year debt dropped by 1.9 bps to 6.037%. Accepted yields were from 6% to 6.045%.

Meanwhile, the last time the BTr auctioned off 20-year papers was on April 23, when it offered reissued bonds with a remaining life of 19 years and 10 months. The government made a partial award of P16.633 billion versus the P30-billion program as it capped the series’ average yield at 7.017%. Accepted yields were from 6.9% to 7.08%.

The Treasury 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

Thailand’s cannabis U-turn is a cautionary tale

2H MEDIA-UNSPLASH

TURNS OUT you can have too much of a good thing.

Last week, Thailand’s Prime Minister Srettha Thavisin ordered a U-turn on the country’s landmark cannabis policy, saying the plant should be soon classified as a narcotic again and its use limited to medical and health purposes. This decision comes two years after the former premier Prayuth Chan-Ocha’s administration decriminalized the drug in the aftermath of the pandemic. His aim? To bring tourists back to Thailand, tap into the multibillion-dollar medical marijuana business, and help struggling farmers grow a cash crop.

The prime minister’s announcement shouldn’t come as a surprise — the new government has been weighing its options for a while. The weed experiment hasn’t gone as planned. Rowing it back won’t be easy, but the kingdom should persevere and attempt to regulate this sector — even if the consequences are painful. Ignoring it will affect the nation’s youth and social harmony — ultimately the industry is only benefiting businesses, not poor farmers.

Walking through the Thai capital Bangkok’s narrow alleyways recently, it was impossible to miss the numerous cafes that spilled on to the streets, or the distinct scent of marijuana wafting through the balmy air. These dispensaries sprang up seemingly overnight, after the decision to legalize cannabis was made in 2022. Even then it was controversial — and ever since, competing forces have been trying to reverse the decision.

Of course, there can be benefits in decriminalizing marijuana — one is less pressure on courts and prisons. There are major overcrowding issues in Thai jails, where 75% of inmates are there on drug-related charges. Research has also shown that taking cannabis off the underground illegal market helps to drive it out of the illicit drug trade.

Many parts of the US have already been through this evolution. Cities like New York have now adopted a far more liberal approach to decriminalization, but are also struggling with the consequences. It is unlikely that Thailand could learn from its experience. Culturally it is a far more conservative society, and sits in a region with harsh drug laws around possession and consumption.

Thailand used to have those laws too, but now it is the anomaly in Southeast Asia. Singapore for instance, imposes the death penalty for trafficking. It considers cannabis a highly addictive narcotic, has banned its consumption and runs regular campaigns that seek to show how much damage it has caused in other countries. At least two people were executed following marijuana charges last year.

In Indonesia, the death penalty is also used as a deterrent, although until recently it was rarely enforced. I reported extensively on the harsh drug laws and outgoing president Joko Widodo administration’s decision to prioritize cracking down on drugs. It’s a policy that is likely to be continued under the next leader, Prabowo Subianto.

In contrast, Thailand became the first country in Southeast Asia to allow the use of marijuana for medical purposes in 2019. Almost 8,000 dispensaries and a large number of consumer-agro firms have cropped up across the country, selling everything from cannabis buds and oil extracts to weed-infused candy and baked goods. Foreigners have also reportedly entered the unregulated market, opening shops and selling the drug. Under current decriminalization laws, cannabis products must not contain more than 0.2% tetrahydrocannabinol — the psychoactive compound that provides a high sensation — to be considered lawful.

Part of the push to legalize the plant was motivated by economics: The University of the Thai Chamber of Commerce said in a 2022 report that the domestic cannabis industry could be worth $1.2 billion by 2025.

But the U-turn is also being prompted by some very real concerns, particularly over the social and health impact on young people. Recent research shows that a quarter of 18-to-65-year-olds had used cannabis since decriminalization — up from 2.2% in 2019. Young people are also smoking more weed: 10 times as much — 9.7% in 2023 from 0.9% in 2019. Anecdotally, doctors have reported more patients seeking treatment after they’ve fallen ill or tried to wean themselves off cannabis. If the government does push through with its plans and classifies cannabis as a category-five drug, its possession could result in a jail sentence of up to 15 years and a maximum fine of 1.5 million baht ($40,600).

Banning the drug outright will no doubt cause a lot of pain to farmers, small business owners, tourists, and consumers. A middle-ground approach to return to medical usage would be wise. Taxing marijuana would also help to boost government coffers, and weeding out foreigners from the trade would help to regulate the sector and allow locals to benefit more — which was the original intent. Thailand has enjoyed the high from the lucrative industry long enough. It is now time for a managed and rational come down.

BLOOMBERG OPINION

Student-produced reality show presents competing food businesses

A sneak peek of the show's participants before they sell their products earlier this May.

Buckle your seatbelts for a thrilling duel in cuisine, tactics, and sales, as MORF, a student-led media agency from the University of Santo Tomas (UST), proudly presents their new game-reality show, Battle of The Hustle.

Now the agency’s second show, Battle of The Hustle features selected teams from UST’s College of Tourism and Hospitality Management as they launch their own food businesses to compete with one another.

Granted a starting budget of P5,000 pesos, participating teams are given the creative freedom to devise their own strategies and tactics to earn and sell as much as they can. Thus, they will be judged for their performance in managing their resources as they execute their cuisine theme, get customer feedback, and achieve high sales over a limited time period.

Moreover, viewers will also get a glimpse of the challenges that happen behind-the-scenes of a business in action. Of course as students, one would have to juggle the demands of their academics, all while innovating the next mouthwatering menu.

The show premiered on UST Tiger TV last May 15, which can be viewed on-demand on https://fb.watch/s6Aqvjtqip/.

Sonax PHL introduces ‘DIY’ car care products

Waido Marketing and Distribution, Inc. President Edbert Tiu (left) poses with Waido Brand Manager Johann Tiu (right) at the launch of the Sonax ‘DIY’ car care products. — PHOTO BY DYLAN AFUANG

By Dylan Afuang

SONAX, a German car care product manufacturer, recently introduced its new product ranges here. Local Sonax distributor Waido Marketing and Distribution, Inc. pitched these as do-it-yourself products that owners can apply on their vehicles themselves.

These are the Xtreme PPF Series, Xtreme Ceramic Series, and Beast Tire and Wheel Cleaner.

“Sonax has product ranges that cater to the different needs of cars, for all kinds of (car) enthusiasts and regular consumers,” explained Waido Brand Manager Johann Tiu to the media during the launch of the new products. “From wheel rims to windscreen, and paintwork to interior, make no compromises when it comes to caring for your car.”

The Xtreme PPF Series is the latest product in the Sonax line, and it’s designed to maintain the luster of a vehicle’s matte or glossy wrap or paint protection film. Made for wrapped vehicle exteriors, the Xtreme PPF + Vinyl Cleaner is a cleaner that’s formulated to remove road dirt, insect residue, and bird droppings.

Designed to remove shallow scratches, the Xtreme PPF + Vinyl Polish covers the car’s exterior with a shiny and waterproof layer. While enhancing the surface color, the Xtreme PPF + Vinyl Detailer removes light soiling without damaging the wrapped surface.

Backed by Sonax’s expertise in ceramic coating, the Ceramic Series aims to preserve a car’s exterior shine in between its ceramic coating sessions. To achieve this effect, the Series features the brand’s SI-Carbon Technology. The products in this range produce a glossy and long-lasting protective finish, strong weather resistance, and color enhancement to maintain ceramic-sealed paint works.

Intended for use during cleaning all surfaces of a car, the Xtreme Ceramic Active Shampoo creates a water-and-dirt repellent layer of ceramic sealant. This product can be used even when the car is not ceramic coated.

Next, the Xtreme Ultra Slick Detailer can easily remove slight surface soiling and dust.

Designed to complement Sonax ceramic-sealed vehicles, the Xtreme Ceramic Spray Coating is touted to protect and refresh paint for up to four months upon application. A vehicle’s unpainted plastic exterior bits can be protected from fading by the Xtreme Ceramic Plastic Sealing.

Meanwhile, the Xtreme Tire + Rim Detailer, Beast Wheel Cleaner, and the Beast Rim/Tire/Rubber Cleaner from Sonax maintain the cleanliness of a car’s rims, tires, and brakes.

Concluded Mr. Tiu, “Sonax is the market leader in car care products in Germany, and one of the leading brands worldwide since 1948.”

Sonax products can be purchased from its Lazada (lazada.com.ph/shop/sonax) and Shopee (shopee.ph/sonaxphilippines) stores.

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