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Aion the prize

An Aion ES sedan (P1.358 million) sits on the showroom floor of the brand’s first facility in the country. — PHOTO BY DYLAN AFUANG

GAC’s EV brand expands in Southeast Asia, arrives in PHL

By Dylan Afuang

AION, the battery electric vehicle (BEV) arm of China-headquartered auto group GAC Motor — which claims to be the third-largest battery BEV brand globally — has arrived in what its officials describe as a “promising” market.

Serving as Aion’s local distributor is Dangdang New Energy Auto Service Philippines Ltd. Corp. “GAC Aion is accelerating its global expansion strategy and has already entered markets in nine ASEAN countries, including Thailand, Indonesia, Malaysia, Singapore, and Cambodia,” Aion Southeast Asia Regional Sales Director Ding Zhiwei stated during the event that marked the brand’s arrival, which also coincided with the opening of the brand’s dealership and headquarters in Makati City.

“The Philippines, as the fourth-largest automotive market in ASEAN, has a large population and immense potential. From January to June this year, the passenger car market here achieved 17.8% year-on-year growth despite challenging circumstances,” he reported, explaining the brand’s confidence in its local arrival.

Mr. Zhiwei also cited the Philippine government’s National Electric Vehicle Development Roadmap as another motivator for the company to establish a presence here. In a release, meanwhile, Aion said that it is “committed to investing in local talent and contributing to the Philippine economy through job creation and economic growth.”

Aion “ranks among the top three global new energy vehicle manufacturers,” Mr. Zhiwei continued. “In 2023, we achieved a total sales volume of 480,000 vehicles, reflecting 77% year-over-year growth, and setting a new world record by surpassing one million cumulative production and sales units in just four years and eight months.”

It was also boasted that GAC Aion, established in 2017 and whose name stands for “AI (artificial intelligence) on the road,” has pioneered notable EV technologies and operates a complete industry chain. These include a bulletproof magazine BEV battery that does not catch fire, and the Star Spirit architecture which supports Level 4 autonomous driving. “We have built (our own) supply chain for batteries, electric drives, and energy — making us one of the few automakers in the world with a complete industry chain,” the official added.

Located at 2287 Chino Roces Extension Avenue, Aion Makati is the brand’s first dealership in the Philippines. Aside from serving as the brand’s local headquarters, the facility, which spans 1,420 sq.m., features a six-unit display area, a vehicle magazine display, an EV platform, and an after-sales service area. The showroom is open from Monday to Saturday, 8 a.m. to 6 p.m., and on Sundays and holidays, from 9 a.m to 5 p.m.

The brand also confirmed the signup of three dealer partners in Bacolod, Cagayan de Oro, and Davao. As of this writing, Aion Philippines is offering the ES sedan (P1.358 million) and Y Plus crossover (P1.498 million and P1.698 million for its two variants). During the brand’s arrival event, the company handed over to its first 10 customers the keys to their vehicles.

“With driving range from 500km to 700km, Aion (cars) effectively eliminate range anxiety, making long-distance travel more accessible,” the company boasted in a statement.

For information on the brand and its lineup, the public is invited to follow Aion Philippines on Facebook (facebook.com/AIONPhilippines) and Instagram (instagram.com/AIONPhilippines).

Meralco eyes partnership with France for nuclear plant feasibility study

BW FILE PHOTO

MANILA Electric Co. (Meralco) plans to work with the French government on a feasibility study for a potential 1,200-megawatt (MW) conventional nuclear power plant, a company official said.

“We might be entering into a feasibility study with the French government. But this is for not the small ones but the bigger ones like conventional… feasibility study, especially on site selection,” Ronnie L. Aperocho, Meralco’s executive vice-president and chief operating officer, told reporters on Friday last week.

Mr. Aperocho said Meralco had a series of meetings with Électricité de France SA, commonly known as EDF — a multinational electric utility company owned by the government of France.

“The nuclear technology of the French government has matured. They started building nuclear power plants in 1948. Almost 75% of their energy mix is nuclear [energy]… They have a proven safety record,” he said.

For the Philippines, the nuclear energy technology is still young, with the government eyeing to have commercially operational nuclear power plants by 2032 with at least 1,200 MW.

Meralco and the French government are finalizing the terms of reference that are expected to be completed in the next two to three months.

Mr. Aperocho said that Meralco is “scanning all the available technologies.”

To recall, Meralco signed a memorandum of understanding last year with US-based Ultra Safe Nuclear Corp. for a pre-feasibility study on micro-modular reactors.

Meralco is eyeing the same for small modular reactors, which have a capacity of 300 MW and above, Mr. Aperocho said.

While Meralco fuels its nuclear power plants, Mr. Aperocho noted that development depends on the government’s direction.

“We’ll really depend on the legislation,” the Meralco executive said. “So, in parallel, we’re just preparing the groundwork already, all the studies, so that if there’s a law already, we can get started right away… because to build a nuclear power plant, it takes so many years. That’s why the timeline should be strategic.”

Under the Department of Energy’s Philippine Nuclear Energy Program, an independent nuclear regulatory commission is targeted to be fully operational by 2026, including the determination of the government’s role through policies and/or legislation.

Thus, the necessary laws on the nuclear legal and regulatory framework must be in place by 2025. By 2027, a legal framework for the mechanism for power contracting should be established.

“We see nuclear as the ultimate solution for our requirement for a reliable power supply baseload,” Mr. Aperocho 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

Louis Vuitton opens bold temporary store on NYC’s Fifth Avenue

EARLIER this year it was announced that the luxury goods brand Louis Vuitton (LV) would demolish and rebuild its Midtown Manhattan flagship location, a 20-story, glass-sheathed building at the corner of Fifth Avenue and 57th Street. But the label, owned by the French conglomerate LVMH, didn’t want to be without a shopping location near what is known as “billionaires’ row” — a stretch of real estate south of Central Park that’s home to luxury housing and high-profile brands such as Tiffany & Co., Chanel and Rolex.

On Wednesday in New York in a tour with Bloomberg, Louis Vuitton revealed its temporary home, across the street and a half-block away from its original, at 6 E. 57th Street. The building, formerly Niketown, was used by Tiffany (another LVMH property) as it went through its own remodel. Louis Vuitton, one of the world’s largest luxury players, used the opportunity to flex its might, introducing an impressive 36,000 square feet of retail spread across five floors. The store will open to the public on Friday.

There’s ample space for its money-printing leather goods on the ground floor, full women’s and men’s collections on the second and third floors, respectively, an appointment-only VIP salon on the fifth floor, and a restaurant and chocolatier. It’s a bold show of force at a time when the company has reported falling revenue because of a softening of the luxury market, particularly in China.

Once inside the store, visitors are greeted with a soaring atrium featuring four vertiginous stacks of Louis Vuitton trunks of different styles — an installation by Shohei Shigematsu, a partner at the internationally renowned architecture firm OMA.

“We wanted to create something that was spatial but also fun and sculptural,” says Mr. Shigematsu. His challenge was to construct an opening gambit that was arresting and surprising, that highlighted the brand’s history as a trunkmaker and that still left the sales floor feeling open.

“So we decided to use the trunk as a module, with these towers that are visible from everywhere and can show the variation of materiality,” he says. Indeed, the towers, which reach some 50 feet skyward, can be seen from all shop floors, which surround and look out on the central court.

The space is also a museum to Louis Vuitton. Along the crisscrossing escalators are pictures of various LV stores through the years, and in each elevator lobby an archival collaborative bag is displayed — including ones made with artists Richard Prince (2008), Yayoi Kusama (2003), Takashi Murakami (2003), designer Stephen Sprouse (2001), and streetwear brand Supreme (2017).

Other walls that at first glance appear to be a rippling metallic design are, in fact, mirrored versions of the brand’s popular Speedy and Keepall bags at various sizes. At opening there will be a collection of New York-exclusive products, including notebooks, baseball caps and handbags, often featuring an apple design.

The brand is particularly proud to introduce in North America its hospitality concept, which is already present at some locations in Asia.

On the fourth floor is a restaurant called Le Café that will serve light bites (which the brand winkingly calls “luxury snacks”) under the eye of New York-based chefs Christophe Ballanca and Mary George. They in turn were overseen by French chefs Arnaud Donckele and Maxime Frederic, who is the brand’s master chocolatier.

In the restaurant, which is also referred to as the “library” as it also sells books, diners can order caviar and waffles or hamburgers served on Louis Vuitton-branded plates. Innumerable luggage tags line the ceiling.

Not satisfied to have its construction scaffolding be an eyesore, Louis Vuitton continued the trunk theme across 57th Street at the original flagship store, where the smoky glass facade has been covered by a comically large structure that resembles a stack of LV luggage big enough for a giant on the go. In essence, the entire block now is a large advertisement for the brand — shiny, glamorous and impossible to ignore. — Bloomberg

Tesla touches down in PHL

PHOTO BY HAZEL NICOLE CARREON

US-based EV specialist is now officially here

By Hazel Nicole Carreon

A HISTORIC moment for the Philippine automotive industry unfolded as Tesla officially began its operations in the country. The arrival of the renowned electric vehicle (EV) pioneer is fancied as marking a significant step toward a more sustainable future for Filipino motorists.

The recent launch event showcased the iconic Model 3 electric sedan and the Model Y electric crossover, both of which are now available for purchase at the Tesla Experience Center in Uptown Bonifacio, Taguig City. These vehicles are said to offer impressive performance, advanced technology, and a range of innovative features that redefine the driving experience.

The Model 3 boasts a refined exterior and a modernized interior. It accelerates from zero to 100kph in just 3.1 seconds and delivers up to 629km of range. The fully electric sedan is available in three variants, priced from P2.109 million.

On the other hand, the family-friendly Model Y, the best-selling vehicle in the world in 2023 (when it moved more than 1.22 million units), combines spaciousness with exhilarating performance. It features 2.1 cubic meters of cargo space and accommodates up to five passengers. Its responsive motors can propel it from a standstill to 100kph in just 3.7 seconds, while offering a range of 533km. The electric crossover also comes in three variants, retailing from P2.369 million.

Tesla vehicles have captured the interest of customers worldwide with their sleek design, intuitive touchscreen interface, and Autopilot driver-assistance system. Deliveries of the Models 3 and Y will begin next year. Customers may also customize their car with personalized exterior, interior, and feature options through the Tesla Design Studio.

According to Tesla Regional Director Isabel Fan, other models will be also coming to the Philippines, though a specific timeline was not provided. By offering competitive pricing, a robust charging infrastructure, and exceptional after-sales support, the Elon Musk-led car maker has created a big impact in the global EV landscape.

In 2023, Tesla vehicles helped save around 20 million metric tons of carbon emissions worldwide. “Our mission is to accelerate the world’s transition to sustainability,” Ms. Fan underscored in her speech at the inauguration of the Tesla Experience Center.

“As part of Tesla’s commitment to the Philippines, the company will continue to develop the experience center, service and support, and charging infrastructure in the country, aimed at delivering a seamless Tesla ownership experience,” the company stated in a release.

Tesla bared plans to set up four superchargers at the basement parking of Uptown Mall, providing convenient and fast-charging options for Tesla owners for P19 per kWh, with a full charge costing around P1,140. More Tesla Supercharger stations will be installed in major cities and along popular travel routes in the future, ensuring seamless travel experiences for EV drivers in the country.

The launch of the American EV manufacturer in the country solidifies its expansion across Southeast Asia. Following successful entry into Singapore, Thailand, and Malaysia, Tesla’s Philippine debut shows its confidence in the region’s growing EV market.

Tesla’s commitment to sustainability extends beyond EVs, encompassing solar energy solutions, energy storage systems, and autonomous driving technology. For more information, visit www.tesla.com/en_ph.

TESDA: The stepchild of Philippine education

FACEBOOK.COM/TESDAOFFICIAL

The Technical Education and Skills Development Authority (TESDA) was established through the enactment of Republic Act No. 7796 — otherwise known as the “Technical Education and Skills Development Act of 1994,” which merged the National Manpower and Youth Council (NMYC) of the Department of Labor and Employment (DoLE), the Bureau of Technical and Vocational Education (BTVE) of the Department of Education, Culture and Sports (DECS), and the Apprenticeship Program of the Bureau of Local Employment (BLE) of the DoLE.

The fusion of the above offices was one of the key recommendations of the 1991 Report of the Congressional Commission on Education (EdCom), which undertook a national review of the state of Philippine education and manpower development.

Moreover, EdCom I proposed the trifocalization of the Philippine education system into three governing bodies; the Commission on Higher Education (CHED) for tertiary and graduate education; the Department of Education (DepEd) for basic education; and TESDA for technical-vocational and middle level education.

Thus students after completing their basic education (K-12) have the option of pursuing higher learning and earning an academic degree (usually a Bachelor Arts degree) or pursuing a technical or vocation certificate. Those taking the vocational option are deemed academically inferior, unworthy of receiving an academic degree.

It should not surprise us that students, probably at the urging of their parents, decide to enroll in CHED governed schools rather than in TESDA governed schools despite their inclination towards the technical/vocational programs.

In a paper published by the Philippine Institute of Development Studies (PIDS) August 2022, entitled “Philippine Education: Situationer, Challenges, and Ways Forward,” Drs. Aniceto Orbeta, Jr. and Vicente Paqueo noted that a TESDA study covering 2018 graduates shows that high school graduates are no longer the primary students of Vocational Education and Training (VET). The largest group of VET graduates in 2018 were college graduates and beyond (36%). This was followed by university undergraduates (23%). The old curriculum high school graduates and the new curriculum junior high school (JHS) graduates made up a third at 16%. Thus, students who attend TESDA courses pursue a higher CHED academic degree before taking a lower TESDA certificate.

To compound the problem, in February 1994, President Fidel V. Ramos signed into law Republic Act No. 7686 or the Dual Training System Act of 1994 which calls for the institutionalization of the Dual Training System (DTS). Adopted from the German model, the law mandated TESDA with the responsibility for its implementation.

The DTS, as its name suggests, is a training modality that combines theoretical and practical training. It is called dual training because learning takes place alternately in two venues: the school or training center and the company or workshop.

In DTS, the school and workplace share the responsibility of providing trainees with well-coordinated learning experiences and opportunities.

This close cooperation between the school and the company ensures that the trainees are fully equipped with employable skills, work knowledge, and attitudes at the end of the training.

The general and occupation-related theoretical instruction provided by the school is complemented by on-the-job training in the workplace. Trainees under the DTS spend at least 40% of the training/learning time in school and 60% on practical training in the company.

The problem is, first of all, conceptual: the DTS was adopted from Germany which is a highly industrialized economy. In contrast, the Philippines is a highly service-oriented economy. A service economy like the Philippines is usually made up of trading, distribution, health services, tourism, and education, requiring jobs that are not technical in nature. In contrast, four sectors dominate German industry: the automotive, mechanical engineering, chemical, and electrical industries. Global players are Volkswagen, Daimler, BMW (all automotive), BASF, which is the world’s largest chemical company with around 118,000 employees, and Siemens (electrical). They are the industry counterparty essential to the success of DTS. The Philippines has no comparable companies.

Only South Korea is comparable to Germany and it is the only other significant country that has adopted the German model. Workers in industry tend to remain in the company or at least in the industry, making the acquisition of a degree unnecessary, while the opposite is the case of workers in service industries. They tend to switch jobs and industries more frequently and so need a degree as they seek outside job opportunities.

Secondly are the results. TESDA lodged the DTS in its Enterprise Based Training (EBT) programs. The EdCom II Year One reported that despite its efficacy in providing skills and guaranteeing superior labor market outcomes for graduates, enterprise-based training (EBT) and apprenticeship programs remain the least popular modality in TVET. Despite the strong emphasis placed by the first EdCom and by TESDA — the agency targeted increasing the EBT share from 4% in 2016 to 40% by 2022 — enrollment remains low. In fact, in 2022, it accounted for only 9% of total TVET enrollment. On the other hand, enrollment in institution-based and community-based training (shorter-term skills training that do not necessarily lead to certification) accounts for the bulk of TVET enrollment.

Part of the reason for the low take up is due to low industry participation. EdCom II noted that industry participation remains limited, and policies are often too slow to adjust to industry needs. As of December 2023, there were 40 TESDA-recognized industry boards at varying levels (national, regional, and provincial). These were concentrated in only eight industries: agri-fishery (12), information and communications technology (ICT) (eight), tourism (six), manufacturing (five), construction (four), creatives (two), logistics (two), and garments (one).

Even in agriculture, EdCom II noted that the Department of Agriculture’s Agricultural Training Institute still stressed the inability of the current system to address the specific needs of the agricultural sector, citing the inadequacy of the current qualifications framework as well as the lack of infrastructure, facilities, and assessors in agriculture and fisheries.

In both the above instances, the public policy makers never asked the students what they wanted. The only person who asked was the late Brother Andrew Gonzales, president of De La Salle University (DLSU) and founder of the College of Saint Benilde.

Benilde was conceived in response to what the students wanted.

Firstly, Benilde recognized that students taking its courses possess intelligences different but equal to the intelligences of those taking the liberal arts programs of DLSU. They therefore required a different education system. The college uses the Howard Gardner’s theory of multiple intelligences, where each person is said to possess varying levels of different intelligence which determine his or her cognitive profile.

The theory is implemented through learner-centered instruction where classes are taught according to the student’s understanding of the subject and recognizes the uniqueness of each learner. Learner-centered also refers to a learning environment that pays attention to the knowledge, skills, attitudes, and beliefs that learners bring to the educational setting.

Moreover, with industry practitioners as mentors, students learn from professionals who share their expertise on the tools of the trade and who bring their insider’s perspective into the Benildean classroom. The school argues that teachers tell you why but mentors also tell you how.

Secondly, Benilde recognized that students enroll in the school not only to learn a trade but also to round off their education. Thus, in arts management, students earn a Bachelor of Arts in Arts Management by taking CHED General Education mandated courses as well as arts management courses. Unlike in the present situation of TESDA students who first earn a bachelors degree and then take non-degree TESDA courses, these two are now combined into just one program.

Logically, the College of Saint Benilde should be under TESDA. But under the present set-up where all degree programs of schools fall under the jurisdiction of CHED, Benilde is under CHED.

To elevate TESDA from being the stepchild of Philippine education, TESDA should be made the equal of CHED and given jurisdiction over trade schools like the Benilde.

Jurisdiction means all those college degree programs which do not require passing the board exams required by the Professional Regulatory Commission (although those that require PRC certification still fall under the jurisdiction of CHED). Moreover, the pure liberal arts degree programs such as history, literature, etc., as well as the legal degrees under the supervision of the Supreme Court, will also continue to be under the jurisdiction  of CHED.

To be clear we refer to jurisdiction over college degree programs and not to the schools. Thus, the degree programs of the College of Saint Benilde such as the Accounting degrees will be under the jurisdiction of CHED while the Business Administration degrees will be under the jurisdiction of TESDA. This is not an unusual arrangement. In schools with grade school, high school, and college programs, the grade school and high school are under the jurisdiction of the Department of Education while the college is under the jurisdiction of CHED.

 

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

Honda PHL announces recall of 16,831 cars over fuel pumps

HONDAPHIL.COM

HONDA Cars Philippines, Inc. is recalling 16,831 units across 11 car models to replace faulty fuel pumps.

In a letter to the Department of Trade and Industry posted last week, Honda Motor Philippines said that its call follows the announcement of Honda Motor Co., Ltd. Japan.

“Findings show that fuel pumps could fail and cause engines to stall or lose power because of an error in the manufacturing process by the supplier,” the letter dated Oct. 18 read.

“We sincerely apologize for the situation, and as a countermeasure, we will replace the fuel pump module by service kits of all affected vehicles, which will be available in November,” it added.

The recall covers 7,530 units of BR-V with model years 2017-2019, 2,427 units of Civic 1.8L with model years 2016-2018, 2,191 units of Mobilio with model years 2017-2018, 1,266 Jazz units with model years 2015-2020, and 958 HR-Vs with model years 2018 and 2020-2021.

The company also recalled 947 units of Civic 1.5L TC with model years 2016-2019, 642 CR-Vs with model year 2018, 587 units of Odyssey with model years from 2017-2019, 111 Civic Type-Rs with model years 2017-2020, 90 units of City with model years 2016-2020, and 82 Accords with model year 2018.

According to the car manufacturer, there have been no reports of crashes or injuries related to the issue. Despite this, it said that its 38 authorized Honda dealers and three service centers nationwide will proceed with the replacement.

“This will be free of charge for the vehicle owners, and it will take a maximum of one hour and 30 minutes to replace,” it said.

“We will duly notify the vehicle owners or will seek assistance and reach out to the new owners in case the vehicles have been sold or disposed of already,” it added.

The list of the affected vehicles’ frame numbers is posted at www.hondaphil.com. — Justine Irish D. Tabile

Style (11/18/24)

Ever Bilena and Shopee team up for a Labubu giveaway

EVERYBODY wants a Labubu, the art toy created by artist Kasing Lung, and popularized by K-pop superstar Lisa of Blackpink. Another Blackpink member, Rosé, has also been seen with her own Labubu in an Instagram story. Local celebrities (like Heart Evangelista, Marian Rivera, Kathryn Bernardo, Julia Barretto, and Janine Gutierrez, among others) have since followed suit. So local brand Ever Bilena, in collaboration with Shopee, is giving a chance for fans to get one, with 12 Labubu figures up for grabs through a promo. To join the Ever Bilena–Shopee Labubu giveaway, customers have to use the voucher code EVERLABU when purchasing at least P299 worth of products from Ever Bilena’s flagship Shopee store to qualify. The voucher also entitles one to enjoy an additional P40 off. Each transaction counts as an entry, and the promo period runs from Nov. 17-23. Twelve winners will be announced one week after the promo ends.

Personal Collection launches In the Mood lipstick

PERSONAL COLLECTION (PC), a Filipino-owned company, launches the In The Mood lipstick collection. This lipstick collection is infused with VibeBoost Formula, a “mood-enhancing” technology. With a selection of bold shades crafted to complement every skin tone — it comes in six versatile shades in two finishes — In The Mood combines color with skincare. Each is infused with 12 essential oils to keep lips soft, smooth, and hydrated. The richly pigmented formula provides all-day, comfortable wear, plus sun protection. For a moisturizing matte look, choose from Ruby Slay, Cherry On Top, and Berry Burst. The Weightless Silky Satin finish includes Ember, Espresso, and Yas Queen Red. Check it out with a Personal Collection dealer or visit PC’s official stores on Lazada and Shopee.

Barenbliss has new primer

BARENBLISS (BNB) introduces the Locklook Hydra Smooth Poreless Primer to the Philippines, with a formula that lasts all day. Created with a unique blend of skincare ingredients and advanced blurring technology, the primer offers a 16-hour hydro-blurring matte effect that keeps makeup looking fresh and shine-free. This lightweight primer works like a second skin, keeping oil under control while allowing the skin to breathe. The primer is infused with Miracle Bloom Essence, Korean Marine Essence, niacinamide, and hyaluronic acid. Its non-comedogenic formula suits all skin types, even sensitive or acne-prone skin. The primer is now available for P549 on the barenbliss TikTok Shop, Shopee, Lazada, and at Watsons stores.

Issy & Co. opens new store

UPTOWN BONIFACIO is now home to a familiar name in the local beauty and cosmetics industry  with the grand opening of Issy & Co. The new location will feature an expanded selection of the brand’s signature vegan, cruelty-free, and preservative-safe products. Issy & Co. can be found on the 2nd floor of Uptown Bonifacio. Uptown Bonifacio is Megaworld Lifestyle Malls’ flagship property in Taguig City.

T-bill rates may rise after cautious Fed remarks

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

TREASURY BILL (T-bill) rates may rise this week despite strong demand after the US Federal Reserve gave cautious signals on its easing cycle.

The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday — P6.5 billion in 91- and 182-day securities and P7 billion in 364-day debt.

T-bill rates could follow the rise in secondary market yields, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

At the secondary market, the 91-, 182- and 364-day T-bills went up by 6.8 basis points (bps), 5.54 bps, and 8.97 bps to end at 5.5763%, 5.8205%, and 5.8264%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Nov. 15 posted on the Philippine Dealing System’s website.

Yields rose on Friday as the market continued to unwind after cautious comments from Fed Chairman Jerome H. Powell, a trader said in an e-mail. “Offers remained heavy in the past days and will likely spill over into next week despite the lack of auction supply.”

Economic growth, a solid job market and inflation that remains above its 2% target mean the Federal Reserve does not need to rush to lower interest rates, Mr. Powell said on Thursday in remarks that could point to borrowing costs remaining higher for longer for households and businesses alike, Reuters reported.

He said he and his fellow policy makers still considered inflation to be “on a sustainable path to 2%” that will allow the US central bank to move monetary policy “over time to a more neutral setting” that isn’t meant to slow the economy.

“The economy is not sending any signals that we need to be in a hurry to lower rates,” Mr. Powell said in prepared remarks delivered at a Dallas Fed event. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

The US central bank’s next policy meeting is set for Dec. 17-18.

Last week, the BTr raised P20 billion its T-bill auction as total bids reached P59.425 billion, almost thrice as much as the amount on offer.

It borrowed P6.5 billion as planned in 91-day T-bills as tenders reached P23.165 billion. The three-month paper was quoted at an average rate of 5.605%, unchanged from the previous week, with accepted offers carrying yields of 5.59% to 5.62%.

The government also fully awarded P6.5 billion in 182-day securities, with bids reaching P14.615 billion. The average rate of the six-month T-bill stood at 5.752%, up by 1.7 bps, with accepted bid yields at 5.735% to 5.764%

The Treasury raised P7 billion as planned from the 364-day debt as demand hit P21.645 billion. The average rate of the one-year debt inched up by 0.4 bp to 5.79%, with accepted rates ranging from 5.775% to 5.8%.

The Treasury is looking to borrow P90 billion from the domestic market this month — P60 billion via T-bills and P30 billion through 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 this year.

Grab yourself a merry little Christmas

Grab Philippines Country Head Ronald Roda (center) fields questions from the media with (left) Director for Mobility EJ Dela Vega and Director for Deliveries Greg Camacho. — PHOTO BY KAP MACEDA AGUILA

The country’s leading ‘super-app’ girds for the holidays, promises to do better

THE EXTENDED holiday season in the Philippines is not only legendary for bringing in yuletide cheer much earlier than the rest of the world, but also for causing a flurry of activities, reunions, and events related to the “most wonderful time of the year.”

Of course, attendant to the bustle is the need for mobility; to get people and things from point A to point B, ad infinitum. Amid the chaos, Grab Philippines is again laying out a campaign to address the increase in activities, orders, and travel.

In a recent presser, Grab Philippines, through its country head Ronald Roda, declared it is “ramping up efforts to better manage the balance between supply of vehicles with passenger demand this season, and to also effectively serve the rise of on-demand deliveries.”

Mr. Roda started his talk by sharing Grab’s improved booking rate versus last year. “Nine of 10 passengers are able to book,” he began. “And 99.998% of transport rides are safe.” This, he maintained, can be attributed to the platform’s tech features, along with driver education. All of these will be put to the test this Christmas season, of course. “Holiday reality in the Philippines is different,” conceded the executive. “So we spent the last 10 months preparing for the holidays.” Per Grab, its reliability has steadily been on the uptrend — from 60% in 2022, 80% in 2023, and the aforementioned 90% this year.

Traditionally, the demand uptick over the month of December is about 20% — a figure that can balloon to 50% during the period of Dec. 10 to 20 in particular, Mr. Roda added. As for deliveries, that spike ranges from six percent to 20% — the latter on “key holiday dates.” Based on a brand survey, 44% of Grab Philippines users “rely on the app for their festive meal deliveries.” This year is expected to be no different. “We expect the same, or even worse, and we’ve prepared,” insisted the Grab Philippines head. “But no matter how much supply we have or how much we prepare, the 50% spike is really difficult, and we’re constrained by the number of transportation network vehicle service [TNVS] slots we have.”

Still, Mr. Roda is optimistic that the experience (including ridership) this season is expected to improve versus last year — on the back of the release of new TNVS slots last August by the Land Transportation Franchising and Regulatory Board (LTFRB) and the onboarding of new driver-partners. Grab Philippines declares it is focusing on the following thrusts: boosting reliability, ensuring safety, promoting accessibility (or affordability), and optimizing holiday earnings for drivers and merchants. The last item is significant in that it helps drive home the point that Grab, after all, is both a service and money-making platform. Mr. Roda and company need to ensure a balance of, well, holiday cheer among users, driver and rider partners, and merchants.

“While we continue to prioritize the accessibility of our services, we are also closely monitoring the fairness of our fares to ensure that our driver-partners can earn sustainably and viably this holiday season. By ensuring this, we hope to encourage more drivers to continue serving our passengers despite the traffic situation, helping maintain service reliability on our platform,” maintained Mr. Roda. Obviously, this season is also crucial for Grab drivers who look to “capitalize on the increased demand to attain sufficient, if not above-par earnings, for themselves and their families.” This will be tricky, given that increased vehicular traffic during this period results in a 14% increase in ride time for the same trip. That might explain a grumpy driver, who is less productive given over his or her usual eight-hour shift. Still, the super-app assures that “fares will stay fair, in line with the regulatory matrix implemented by the LTFRB.”

Grab Philippines is also rolling out a number of features in time for the rush, such as Group Rides, which is perfect for a group of friends or family members going to, or coming from, a common venue — such as a party or reunion place. Leveraging the app’s ability to do carpooling, the function lowers the fare by allowing groups of four to share a ride’s base fare. If you are looking at a more inexpensive ride and you aren’t in a hurry, GrabCar Saver is the trick.

Advance Booking removes the uncertainty of being able to book a Grab to the airport. For a premium, the feature allows a user to schedule a ride to the airport up to seven days in advance. Meanwhile, Multi-Service Type Booking, active for a while now, lets users select multiple mobility service types in a single booking — “enabling the system to distribute demand across various vehicle types.”

“Are we preparing for the outflow and inflow of travelers? A hundred percent yes,” said Grab Philippines Director for Mobility EJ Dela Vega, in response to a question from “Velocity.” “We’re working on how to make the drivers super-efficient.”

For GrabFood orders, the Group Orders feature “enables multiple users to add items to a single order, simplifying the process for groups to enjoy meals together; GrabFood Saver extends “cost-effective delivery options;” GrabUnlimited presents a subscription service “that provides everyday free delivery, exclusive restaurant discounts, and additional perks,” recently expanded to include everyday discounts on GrabCar bookings; and Large Orders deals with the ordering of large quantities of food for parties or gatherings.

These moves and initiatives are hopefully some of the good news we need as the world’s most Christmas-crazy people. Is it still too early to wish you all happy holidays?

HB 9866: A threat to public health and fiscal stability

DON-DELFIN ALMONTE-UNSPLASH

The Marcos administration is currently facing a daunting challenge: unwinding the fiscal deficit resulting from the heavy borrowing during the pandemic and investing in crucial social programs. It also faces the challenge of building on and implementing the good reforms from previous administrations.

Unfortunately, recent policy decisions have diluted past reforms and neglected the most binding constraints to development.

One key reform that was recently reversed is the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act of 2021, or Republic Act No. 11534. On Nov. 11, President Ferdinand “Bongbong” Marcos, Jr. signed into law Republic Act No. 12066, or the CREATE MORE (Maximize Opportunities for Reinvigorating the Economy) Act. CREATE MORE widens the coverage and scope of fiscal incentives for firms, which will result in revenue erosion, and reverses the crucial governance reforms from the CREATE Act that made our incentive system targeted, time-bound, and performance-based.

Public health policy has also seen significant backsliding: one of the first bills that lapsed into law under the Marcos Jr. administration was RA 11900, widely known as the Vape Bill, which positioned itself as a regulatory measure for e-cigarettes and heated tobacco products, but instead widened access to these harmful products to the youth. RA 11900 was a huge step back for tobacco control.

Earlier this year, House Ways and Means Chair Representative Joey Salceda filed House Bill (HB) No. 9866, formally known as An Act Establishing a Regulatory Regime for Electronic Cigarette Manufacturing and for Other Purposes. The House Committee on Trade and Industry will conduct an initial deliberation on this bill today.

House Bill 9866 promotes, enhances, and boosts the growth of the e-cigarette manufacturing industry in the country by offering generous fiscal incentives such as value-added tax (VAT) and duty exemption on the importation of manufacturing equipment.

The harm of this proposed legislation is two-fold; it is a threat to both public health and fiscal health.

E-cigarettes or vapes are products that have been scientifically proven to cause widespread harm. While e-cigarettes are marketed as cigarette smoking cessation devices, these products contain substantial amounts of nicotine and other harmful chemicals and introduce the risk of addiction, especially to young non-smokers. Evidence on e-cigarette or vaping-associated lung injury (EVALI) is also continuously growing across the globe.

Incentivizing the growth of the e-cigarette industry is an unsound, irresponsible, and outrageous policy decision, the cost of which will be borne by our already burdened public health system. Signaling that the Philippine government is supportive of the e-cigarette industry by providing incentives for e-cigarettes, which have already been established as products harmful to human health, will tarnish our global reputation. In the United Kingdom, a ban on disposable e-cigarettes will be implemented by 2025 due to widespread use by children.

Further, we have to be strategic and rigorous in the granting of incentives. The CREATE Act of 2021 mandated that our priorities for fiscal incentives are “enterprises crucial to national development” — which, putting it lightly, cannot be said about our e-cigarette or vape industry.

Offering fiscal incentives for the e-cigarette industry also lightens manufacturers’ tax burden, going against the very purpose of tobacco taxes. Should HB 9866 be passed, the government will be losing even more crucial revenues in a time of shrinking fiscal space and lower excise tax collections. This, in turn, will lead to even smaller budgets for development and public health programs.

In HB 9866’s explanatory note, Mr. Salceda points to the substitution effect of higher taxes on conventional cigarettes as the cause of consumption pattern shifts, the rise of smuggling of e-cigarettes, and safety concerns surrounding the e-cigarettes that enter the Philippines. Clearly, all these factors pertain to the Philippine domestic market.

Here is the disconnect: How does giving fiscal incentives for the production of e-cigarettes intended for export solve issues like substitution, illicit tobacco trade, and safety in the Philippine market? It does not. The assumption that these issues will be addressed by granting incentives to manufacturers of export-oriented e-cigarettes is flawed, given that the e-cigarette industry is one that has been proven to cause direct harm to human health.

Traditional cigarettes and e-cigarettes alike are subject to heavy taxation precisely because they are harmful. This bill is a poorly disguised attempt to lighten the tax burden on such products.

Rather than arbitrarily awarding the e-cigarette industry with undeserved fiscal incentives, the government should instead focus on strengthening tax administration efforts, improving agencies’ capacity to enforce tobacco control policies, implementing stricter advertising and promotion regulations, and raising taxes further on excisable products, especially on e-cigarette and vape products which are primarily consumed by the vulnerable youth.

In fact, in May this year, it was Mr. Salceda himself who filed a measure to curb illicit tobacco trade, House Bill 10329. The filed bill was supported by health advocates for enhancing local coordination and establishing a comprehensive track and trace system to prevent the proliferation of illicit tobacco products, including e-cigarettes. HB 10329’s core provisions will go far in addressing the issues Mr. Salceda claims to be the rationale behind HB 9866.

We hope the Committee on Trade and Industry sees HB 9866 for what it is: a real threat to the Philippines’ global reputation, not only in the sphere of public health and tobacco control, but also in industrial policy.

 

Therese Hipol and Pia Rodrigo are researchers on Action for Economic Reforms’ fiscal and health policy team.

PHL ships first batch of Hass avocados to Japan

FREEPIK

THE PHILIPPINES has gained access to Japan’s export market for avocados, having shipped 12,320 kilos of the Hass variety from Mindanao worth $40,320 (P2.4 million) this month, the Agriculture department said on Sunday.

“We are optimistic that this access granted by Japan will lead to opportunities in other international markets for locally grown Hass avocados,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said in a statement.

Next year, the Southeast Asian nation is targeting to sell 484,000 kilos of Hass avocados to Japan worth $1.58 million.

Japan is a major buyer of Hass avocados, having imported 61,000 metric tons worth $160 million in 2023, the agency said. Key suppliers were Mexico, Peru, Australia, New Zealand and the US.

In the same statement, Agriculture Attaché to Japan Aleli Maghirang said the Philippines is the first country in Asia to export Hass avocados to Japan. “This provides local producers with an excellent opportunity to capitalize on Japan’s growing demand for fresh fruits,” she added.

The Philippines already exports bananas, pineapples and mangoes to Japan.

“Securing access to Japan’s highly regulated market for Hass avocados is a significant step forward in our trade relations with Japan,” Bureau of Plant Industry Director Gerald Glenn F. Panganiban said in the statement.

“The inclusion of Hass avocados in the Philippine export portfolio to Japan… is the culmination of over a decade of effort,” he said.

The Philippines had requested access of locally grown avocados to the Japanese market in 2011.

The agency said the addition of Hass avocados increases the Philippines’ share in Japan’s imported fruit market.

“With increasing demand for Philippine fruits in Japan and globally, the Philippines is well-positioned to strengthen its presence in the Japanese market and expand its agricultural exports throughout Asia and beyond,” the Agriculture department said.

In 2023, the Philippines exported $1.1 billion worth of agriculture and fishery products to Japan. — A.H. Halili

JG Summit’s Lance Gokongwei bags ASEAN Entrepreneurial Excellence Award

JG SUMMIT President and Chief Executive Officer Lance Y. Gokongwei — JGSUMMIT.COM.PH

JG SUMMIT Holdings, Inc. President and Chief Executive Officer (ceo) Lance Y. Gokongwei has been awarded the EY-Bank of Singapore ASEAN Entrepreneurial Excellence Award for his leadership and contributions to the Southeast Asian business landscape.

Established in 2015, the award recognizes Southeast Asian entrepreneurs who drive economic growth and create positive societal change for the region, JG Summit said in an e-mailed statement over the weekend.

“I want to make a positive and lasting difference in everything I can do and pay it forward,” Mr. Gokongwei said.

Mr. Gokongwei will receive the award on Nov. 18 in Singapore. It is presented by professional services organization EY, while the Bank of Singapore is the presenting title sponsor.

JG Summit has expanded its presence across Southeast Asia through subsidiaries, food and beverage manufacturer Universal Robina Corp. (URC) and low-cost airline Cebu Pacific (CEB).

URC has established operations in Hong Kong, Indonesia, Malaysia, Singapore, Thailand, Myanmar, and Vietnam, catering to various consumer needs across the region. For its part, CEB helped improve regional connectivity, with flights spanning Southeast Asia, driving tourism, trade, and mobility.

JG Summit is also involved in digital banking through GoTyme Bank, which was launched in October 2022 under a collaboration with Singapore’s Tyme Group. The venture is part of Mr. Gokongwei’s vision of financial inclusion via digitalization, providing millions of Filipinos with access to banking services.

The award also recognizes Mr. Gokongwei’s role in advancing the goals of the ASEAN Economic Community (AEC), which aims to integrate the economies of its ten member states.

“Under his leadership, JG Summit has produced economic growth, in alignment with the AEC’s vision of a more interconnected and competitive Southeast Asia,” the conglomerate said.

“As the region continues to experience rapid development, Mr. Gokongwei’s leadership shows a powerful example of how commercial success can go hand in hand with social responsibility,” it added.

JG Summit has business interests in agro-industrial and commodities, real estate and hotel, air transportation, banking, and petrochemicals.

The conglomerate also has core investments in telecommunications and power generation and distribution. — Revin Mikhael D. Ochave

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