THE water levels in reservoirs are at “safe levels” with an adequate margin available before Metro Manila’s main source of water hits the critical mark, a Palace communications official said on Sunday.
Assistant Secretary for Radio of the Presidential Communications Office Jose Maria M. Villarama II told BusinessWorld on the sidelines of a briefing that according to Task Force El Niño, “Angat Dam’s critical level is 180 meters, but right now we’re at around 200,” he said.
“What we’re experiencing now is a strong and mature El Niño,” he said.
Damage to agriculture has been estimated at P1.31 billion, which Mr. Villarama described as low compared to 2009, when the losses hit a record P17 billion.
Asked about agricultural workers affected by El Niño, Mr. Villarama said the Task Force and the Departments of Social Welfare and Development and Labor and Employment are offering a cash-for-work program.
“We help them earn money through short-term jobs, such as construction, fixing of irrigation canals, or gardening,” he said.
More than 24,000 farmers and fisherfolk have been affected by dry conditions across more than 25,000 hectares in seven regions. The Task Force estimates that 70 provinces will be affected by El Niño.
At the same briefing, Mr. Villarama said La Niña has a 55% chance of starting as early as June.
He added that the government is not confident that the rainfall will offset the damage from the dry conditions.
“The first 2-3 months of La Niña are likely to (have) below-normal rainfall,” Mr. Villarama told BusinessWorld via Viber. — Chloe Mari A. Hufana
Lexus International LBX Chief Engineer Kunihiko Endo — PHOTO FROM LEXUS
PHOTO FROM LEXUS
PHOTO FROM LEXUS
LEXUS PHILIPPINES launches an all-new model, the LBX, today. The subcompact crossover is the smallest Lexus ever, yet is said to be “a game-changer that embodies all of Lexus’ values of authenticity, refinement, omotenashi, and engaging and imaginative technology.”
A hybrid electric crossover, the three-letter name of this vehicle is “significant,” according to Lexus Philippines. Nomenclature of its offerings are only comprised of two letters — with the only exception being the LFA supercar. “The choice of the name LBX demonstrates Lexus’ commitment to and trust in its new model. Just as the LFA showed a different side to the brand in terms of attitude and performance, so the LBX will challenge the status quo and redefine what a small car can offer, energizing and expanding the brand’s reach and profile,” the company maintained.
This new entry point to the stable of Lexus is meant to appeal to a younger market, and “those who may not have considered a Lexus before.” It is also meant to be an “attractive proposition” for those thinking of downsizing their ride, or of purchasing a second vehicle.
“Our aim was to challenge the conventional concept of a luxury car. We have thoroughly pursued a driving experience that enables a natural dialogue between the driver and their vehicle, and a design that has a refined presence,” said Lexus Chief Engineer Kunihiko Endoh.
Extensive efforts were made to ensure the constant control, comfort, and confidence of the so-called Lexus Driving Signature are delivered in a small car package. To this end, some revisions were made to the GA-B global platform such as lengthening the wheelbase, widening the track and, increasing body rigidity. Packaging, suspension tuning, braking and steering all play their part in producing a car that reportedly responds instantly and faithfully to the driver’s inputs.
The new powertrain is a self-charging 1.5-liter hybrid electric system. It is tuned for rewarding performance, with powerful, linear acceleration from the start. This helps deliver low-speed agility suited to demands of urban driving. A new bi-polar nickel-metal hydride hybrid battery provides greater responsiveness from a smaller and lighter package, while extensive measures to address road noise and vibration ensure the kind of calm and quiet on-board experience appropriate for a premium model.
The styling of the LBX gets a “Resolute Look” on its front that reinterprets the iconic spindle grille. While the exterior dimensions are more compact than any other Lexus, the look is muscular and powerful. Inside, the emphasis is on driver engagement with a focused driver’s cockpit based on Lexus’ Tazuna concept — inspired by a rider’s precise use of the reins to control a horse (the meaning of Tazuna in Japanese). The vehicle’s controls and information sources are arranged so that only small movements of the hands and eyes are required for operation, keeping the driver’s attention focused on the road. The cabin has a light, open feel with excellent visibility and an instrument panel that wraps around smoothly into the door panels.
To help maintain a wide, clear view and open cabin feel, the horizontal instrument panel has a clean and simple design. At each side, its form flows into the door panel, giving a sense of wrapping around the front seat occupants, so the feel is expansive yet encompassing. The continuous line created by this design also helps the driver sense the degree of vehicle roll when driving through bends.
The LBX is the first Lexus model to be manufactured at the Iwate plant in eastern Japan, a facility that has benefited from the Toyota Motor Corp. investment to help regenerate a region that suffered devastation from the Tohoku Earthquake and tsunami of 2011.
The LBX is 4,190-mm long, 1,825-mm wide, and 1,560-mm high. It has a 2,580-mm wheelbase, with a tight 5.2-m turning radius.
The LBX has a new self-charging full hybrid electric powertrain that is both highly efficient and tuned for the kind of prompt, responsive acceleration that’s characteristic of battery electric power. The total system output is 100kW with peak torque of 185Nm, giving standstill-to-100kph time of 9.2 seconds. The 1.5-liter three-cylinder engine has world-class thermal efficiency, supported by high-speed combustion, achieved with technologies evolved from Formula 1 engineering, including a longer stroke, increased valve angle and laser-clad intake valve seats. The ultra-lightweight pistons are designed for performance at high engine revs and have a resin skirt coating that reduces friction with the cylinder wall.
Visit Lexus Manila and Lexus at Mitsukoshi to see the all-new Lexus LBX, priced at P2.968 million. For more information, visit the Lexus website at lexus.com.ph or its social media pages on Facebook and Instagram (@lexusphilippines). Updates and premium services are available through the MyLexus app for both Android and iOS users. Mitsukoshi BGC is located at 8th Ave. corner 36th St. Grand Central Park, North BGC, Taguig.
BRUSSELS — A shop has opened in Brussels selling still-sealed unwanted Amazon parcels by the kilo, effectively a lottery ticket which could win the holder a connected watch, a smartphone — or a worthless trinket.
The shop called Pile ou Face, French for Heads or Tails, is located near the central square Place Flagey and offers the parcels at €16 ($17.40) per kilo. Customers pick a box among the dozens stored in the shop and some open them on the spot.
“It is like gambling. I paid €40 and I got three or four headphones, I did a good job,” said Paul, who declined to give his last name.
Gisele Peeters is a bit disappointed, though. Her €14.40 parcel contained an old-style telephone with a dial. “It’s not something I would have bought. I’ll try to resell it,” she said.
Arnaud Userstam, who founded the shop, said connected watches and smartphones are the items people are happiest to get, but others return home with clothes, or sometimes especially weird items.
“A lady got 100 toothbrushes for dogs,” he said.
Mr. Userstam started the business after his wife and he wondered what happened with parcels with delivery problems after experiencing the issue themselves. They found out other similar shops existed elsewhere.
Pile ou Face signed contracts with the giant US e-retailer Amazon in Europe to get parcels that were not retrieved from pickup places, that were returned by customers, or simply got lost.
Mr. Userstam did not elaborate on the contracts, though he said that previously these parcels were just destroyed. — Reuters
MORE COMPANIES are expected to explore opportunities in the energy and water sectors, global professional services company said, citing the increased coordination between the government and the private sector.
“We’re seeing a lot of growth in the energy space. That’s primarily driven by a good coordination between the government and the private sector,” Lorraine Gomez, operations manager of GHD in the Philippines, told BusinessWorld last week.
The company has seen “great support” from the government in creating an attractive environment for investors.
In 2022, the Department of Energy (DoE) amended the implementing rules and regulations of the Renewable Energy Act of 2008 to allow 100% foreign capital in renewable energy projects.
GHD is “a global, multidisciplinary professional services network providing clients with integrated solutions across digital, engineering, environmental, design and construction,” according to its website.
The company caters to different sectors in the Philippines such as water, energy, transportation, property and buildings, and environment.
Ms. Gomez said that GHD has worked with “almost all the private water concessionaires in the Philippines,” especially on masterplans for their water and wastewater services.
Among the trends in the water sector in past decade is harnessing technology to maximize a limited resource, she said.
“Before, we only had conventional technologies to treat water and make them clean for consumption of the community. But now, we have so many technologies around desalination or treating seawater so that we could get that good for drinking,” she added.
In terms of the energy sector, she said that the company has worked with developers in planning and conducting environmental studies for wind and solar farms.
“There’s really growth in the development of wind energy resources,” Ms. Gomez said.
The DoE has awarded a total of 82 offshore wind energy service contracts, with a potential capacity of about 63.36 gigawatts (GW).
At least 10 offshore wind projects with 6.72 GW are expected to generate power by 2028.
“What we foresee is, given the market conditions, there will be growth in offshore wind, as well as floating solar and floating wind projects as well, so we’re very glad to help our clients deliver these major water and energy projects together,” Ms. Gomez said. — Sheldeen Joy Talavera
The quest for justice has been long and tortuous. We hope we can see the light at the end of the tunnel in our lifetime. On Feb. 1, I was one of the reactors in the panel on “Delivery of Justice” at the Justice Summit, organized by the Justice Reforms Initiative (JRI) and the Supreme Court.
JRI is an umbrella organization consisting of major business associations, judicial advocacy groups, and foreign chambers of commerce that promote the advancement of the rule of law, socioeconomic justice, global competitiveness, and sustainable economic growth. It is currently headed by Francisco Ed. Lim as chairman and Jose Jerome R. Pascual III as president.
The other speakers and reactors were lawyers, judges, businessmen, and law practitioners. I was the only NGO worker who spoke based on our experiences in our encounters with the justice system. Our organization, the Movement for Restoration of Peace and Order (MRPO), has been an advocate for justice reform for 30 years since we started in 1993 to combat the kidnapping menace.
OUR MANDATE For 30 years, we saw the urgent need to overhaul the entire system in the delivery of justice — the police, prosecutors, courts, correction, and community. It has been a long, tedious, frustrating process and we despair of having any success. But it’s not all “just’tiis.” We do see some progress, especially in the Supreme Court, which has worked hard for reforms and transformation, as attested by this Justice Summit convened with the private sector, and the positive results in the survey recently conducted on the court system.
When we organized MRPO in 1993, 31 years ago, kidnapping was at its peak because it was an almost perfect crime — victims did not report the crime, they did not cooperate with the police, they paid the ransom fast and paid big. Hence, kidnapping was a lucrative cottage industry back then. One factor behind the success in the anti-kidnapping campaign is when we succeeded in encouraging victims to file cases and put kidnappers behind bars. But it was an uphill battle because of the tedious, long drawn out and expensive trials. There was a 16-year-long case in Quezon City where the parents of the kidnap victim told us that they wouldn’t have spent so much had they just paid the ransom. The long-delayed trial — that changed judges several times — was a heavy burden financially and mentally. We also had cases where a young boy of eight was already a college graduate when his kidnapper was finally put behind bars.
The Court has been addressing this as they impose penalties on judges with backlogs, but to date, we still contend with cases that age more than 10 years and, often, the judge who decides the case is not the one who heard the case from the beginning.
WEAPONIZATION OF THE LAW Worse, perhaps, is the weaponization of the law. The onus does not lie with the courts only, but also with the police and prosecution, but the Courts have an obligation to hopefully be the stalwart and the key pillar to confront this issue that has been happening with impunity, especially in recent years.
As if nuisance cases like those against journalists like Maria Ressa and Rappler were not enough, the cases of the political prisoners are much worse. Senator Leila de Lima’s case is just one example, but she was very lucky compared to other political prisoners who are incarcerated for more than 10 years on trumped up charges and planted evidence. These political prisoners are in prison because of their beliefs, not because they broke the law.
To cite a few examples:
1. The police use cases where the suspects are John Does then put in the political prisoner’s name just because they belong to the progressive left. Imagine murder charges made against them when they have never been to the place where the crime supposedly happened.
2. To make cases of illegal possession of firearms non-bailable, police add explosives to the charges, like a pre-war, vintage, worn-out grenade without a pin. The prosecutors who know about that evidence could have easily dismissed the case. Or the courts could have granted bail. Non-bailable crimes mean these fathers or mothers cannot see or take care of their children, or they cannot take care of their own parents.
3. In some cases, when one case is dismissed, new ones are added for no reason. For example, names of political prisoners are added to the original cases filed vs. Joma Sison and the Tiamzons, just to make sure they do not go free when their own cases are dismissed.
4. Two Dumagats were ordered by a military unit to carry the dead body of a supposed rebel. But upon reaching the military camp, the two were not allowed to return to their homes and were instead arrested and are in jail till now. The poor guys are in disbelief, not knowing what crime they committed, but no one seems to care.
5. The oldest political prisoner, 85-year-old Gerardo de Leon, just wants to go home to Bicol to see his wife before he dies or she dies. But even though Tatay Gerry proved he was never a member of the NPA who claimed credit for the death of the soldier he was accused of killing, he’s suffering in jail. His mistake? Prior to the ambush of the soldier, he spoke up against a massacre in his province related to agrarian issues.
Through the years, our courts, lawyers, and practitioners have encountered horror stories of gross miscarriage of justice. Our government intensely hates progressive groups, but government remains to be the most effective recruiter of dissidents due to widespread social injustice, and our courts as last resort often become instruments of such injustice.
Naturally, I again emphasize, the onus does not lie with the courts alone. The police and the prosecution bear huge responsibility too. We badly need prosecutors and judges who can discern nuisance cases filed for political purposes and be brave enough to just dismiss them outright. We badly need law enforcers who don’t allow themselves to be used for political purposes and perpetuate the weaponization of our laws.
Last and most importantly, we need the five pillars of the criminal justice system to work in synergy and cooperation, and not in opposition, to push the justice reform agenda. Chief Justice Alexander Gesmundo’s impressive action plan for responsive real-time justice should not remain on paper but should be swiftly acted upon by all.
Teresita Ang See is a social activist, cultural worker, educator, and author. She has made outstanding contributions to peace and social cohesion for the past 50 years. She has written and co-authored 17 books, including Tsinoy – the Story of the Chinese in Philippine Life, and five volumes of Chinese in the Philippines: Problems and Perspectives. She is better known in her anti-crime advocacy as the prime mover behind the Movement for Restoration of Peace and Order. She serves as the executive chair of Manila’s People’s Law Enforcement Board to this date.
The Trust Officers Association of the Philippines (TOAP), a professional organization that aims to professionalize and promote the trust and investment industry in the Philippines, has been at the helm for six decades this year.
Bestowed with the highest fiduciary mandate, TOAP continues to actively contribute to the development of capital markets, promoting the interest of its clients and the investing public, while thriving as part of a dynamic sector in the Philippine financial system.
From evolution to innovation
Established in 1964 by a group of trust practitioners with the objective of uniting and growing the Philippine trust and investment management industry through professionalization and promotion, the industry was, by then, preparing to offer new and innovative trust products.
Ensuring that the trust officers and leaders were ready with the necessary skills and knowledge, formal training was provided for the enhancement and growth of the industry in the coming years.
The early 1980’s until 1991 saw remarkable growth in the industry, with trust assets doubling and reaching the P100-billion mark in 1991, as public awareness on the more sophisticated asset and trust management services increased.
By the year 2000, however, the global foreign exchange and financial markets saw challenges brought about by several crises. This led to the General Banking Act of 1948 being replaced by Philippine Congress into the General Banking Law of 2000. This new law, which effectively strengthens the banking sector and effectiveness of the supervision of the Bangko Sentral ng Pilipinas over local banks, now contains a chapter on trust operations, amending laws from the previous act.
Within ten years, the Philippines saw an economic exponential growth, beginning with Overseas Filipino Workers (OFWs) remittances, and increase in consumer spending. By 2010, GDP ended at 7.3%, growing more than twice after a decade, according to Asian Development Bank’s Key Indicators. This period likewise saw the trust industry breaching the trillion mark in 2007 with P1.176 trillion assets under management and 34% higher than the previous year. By 2012, the trust industry had doubled this figure to P3.1 trillion. The investment grade ratings secured during this period until 2013 set the stage for the industry’s further growth the next decade.
Recognizing the importance of good corporate governance, effective risk management and strong consumer protection, reforms were implemented, which included comprehensive investment guidelines for trust entities and guidance to better align the management of trust assets with international standards.
Steven C. Te, first vice-president and institutional sales head of BDO Unibank’s Trust and Investments Group and current TOAP president, shares that with the entry of foreign players into the Philippine financial community through the ASEAN integration and the AEC Blueprint, the trust industry has been positively impacted and strengthened. This has led to increased competition, which drives local trust companies to enhance their services, improve efficiency, and offer more competitive products to attract and retain clients.
Access to expertise and technologies has benefited the local trust industry, with foreign players bringing their know-how, best practices and advanced technologies. This transfer of knowledge and technology helped strengthen the capabilities of local trust companies and enhanced their service offerings.
Trust Officers Association of the Philippines Board of Directors 2023-2024 (standing from left): Director for Investor Relations and Education Ma. Michelle S. Valeriano, Director for Members Development Herbert Glen D. Arabelo, Director for Capital Markets Development Stella A. Sampayan, Treasurer and Director for Finance Carina L. Yandoc, President Steven C. Te, Director and Corporate Secretary Atty. Christiane B. Alonzo-Velasco, TOAP Vice-President and Director for Fiduciary Products Development Joy Jasmin R. Santos, Director for UITF Development Dreda Teresa D. Mendoza, and Director for Taxes and Regulated Products Reena Marie G. Franco
Furthermore, the participation of foreign players has expanded the range of investment options available to clients of Philippine trust companies. This diversification of investment options means better risk management, higher returns, and increased investor confidence in the trust industry.
The entry of foreign players has prompted local regulators to align standards and regulations with international best practices. This alignment has led to a more robust regulatory framework, improved governance practices, and enhanced transparency within the trust industry, as well as increased awareness and trust from clients and investors.
While the integration of foreign players into the Philippine financial community through the ASEAN and AEC Blueprint may have brought about various opportunities and benefits for the industry, Mr. Te adds that “ongoing monitoring and assessment are essential to ensure that these developments indeed add to the strengthening and sustainable growth of the industry over time.”
Another key contribution during this decade worthy of note is the expansion of Unit Investment Trust Funds (UITF).This product line provided the greater public an investment opportunity that has significantly impacted the trust industry.
In August 2021, then-BSP Governor Benjamin Diokno said that “the BSP recognizes the importance of UITFs as an avenue for small retail investors to participate in the securities markets. Certainly, the online accessibility of UITFs contributed to their growth.”
Mr. Te further expounds that the introduction of a broader range of UITF products increased investment options for investors, giving them a wider range of preferences according to their risk tolerance. It has also contributed to the growth of assets under management (AUM) for trust companies, as it has become a popular choice for both individual and institutional investors. In fact, by end of 3rd quarter 2023, UITF’s AUM was reported to be at P815 billion.
Additionally, UITFs have expanded to include regular income paying funds, hence investors appreciate this as part of the inclusive growth process offered by the trust industry. There were also investment structures under UITF that include feeder funds, multi-class funds, and fund of funds, with the same objective of bringing in more investors and presenting them a diverse menu of choices for their financial investments.
Regulatory compliance and investor protection were also implemented, adhering to regulatory guidelines set by governing bodies, to safeguard investors’ interest and maintain trust in the industry. Access to professional fund management expertise allowed retail investors to benefit from the skills and knowledge of seasoned portfolio managers. Overall, the expansion of UITFs as an investment opportunity has brought about positive changes in the trust industry in the last decade, resulting in increased market participation, enhanced competitiveness, and a broader array of investment options for investors seeking to grow their wealth and achieve their financial goals. More information can be found on www.uitf.com.ph.
By the third quarter of 2023, just several months after the declaration of the end of the COVID-19 pandemic, the banking system’s trust and investment management business reached the P6.0 trillion mark, a milestone achievement equivalent to a 10-year compounded annual growth rate (CAGR) of 8.8%. The trust industry’s resiliency even during the height of the pandemic in 2020, with a growth of 16%, proved TOAP’s continued and unrelenting efforts to push forward and rise above the global health challenges.
TOAP: Leading the trust industry
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Steven C. Te, President
Joy Jasmin R. Santos, Vice-President and Director for Fiduciary Products Development
Atty. Christiane B. Alonzo-Velasco, Director and Corporate Secretary
Carina L. Yandoc, Treasurer and Director for Finance
Dreda Teresa D. Mendoza, Director for UITF Development
Herbert Glen D. Arabelo, Director for Members Development
Stella A. Sampayan, Director for Capital Markets Development
Ma. Michelle S. Valeriano, Director for Investor Relations and Education
Reena Marie G. Franco, Director for Taxes and Regulated Products
Since its inception in 1964, TOAP has seen key leaders and strategists at its helm, introducing landmark innovations and growth, supporting inclusivity, transparency and active regulation, adapting to challenges and changes, thereby strengthening the Philippine financial industry through trust.
First to lead TOAP was Graelan C. Yarisantos in 1964 who had the big task of gathering trust officers to steer the trust industry into something the public will fully understand, accept, and embrace.
The subsequent TOAP presidents and board of directors stayed true to TOAP’s mission “to grow the trust and asset management industry to a level at par with international standards,” ensuring that the organization lives its values of Integrity, Fidelity to Client, Innovation, Teamwork, Leadership, Professionalism, and Excellence.
Rafael G. Ayuste, Jr., who served as TOAP president four times between 2005 and 2018, believes that ”assuming an industry leadership role is inherently personal and time-intensive, involving a wide array of responsibilities. This includes regulatory engagements across various trust products and services with regulatory bodies, notably the Bangko Sentral ng Pilipinas, and maintaining ongoing communication with industry stakeholders, such as industry players, clients, and financial associations. The personal reward for this level of involvement is significant, as it reflects active participation and contribution towards the industry’s growth.”
Meanwhile Mr. Te, who is wrapping up his second consecutive term as TOAP president, emphasized that “the TOAP leaders and board members can further solidify the trust industry’s position as a dynamic and forward-looking sector that caters to a diverse range of clients, organizations, and partners while driving sustainable growth and development.”
Through its thought leadership and advocacy, TOAP has led industry discussions on emerging trends, best practices, and regulatory updates. Its active advocacy efforts and promotion of industry standards drive positive change and influences policy decisions that benefit stakeholders.
Its innovation and technology adoption enhances operational efficiency, improves customer experience, and develops cutting-edge services. By staying ahead of technological advancements, TOAP positions itself as a forward-looking organization that drives industry innovation. Additionally, establishing collaboration and strategic partnerships with industry stakeholders, fintech firms, academic institutions, and regulatory bodies foster knowledge-sharing. By working together with diverse partners, TOAP is able to create synergies, explore new opportunities, and drive collective industry growth.
As of this year, 30 institutions consisting of banks and trust corporations are active members of TOAP.
Road Map: TOAP moving forward
TOAP’s position as the authority for trust, fiduciary, and asset management in the Asia Pacific region is reinforced by its proactive approach in maintaining proper safeguards, fostering an effective relationship with regulatory bodies like the Bangko Sentral ng Pilipinas (BSP), and enforcing stringent measures to ensure investor protection and transparency.
Raul C. Diaz, TOAP president from 2008 to 2009, said that “being part of the trust industry for the last 40 years that actively promoted and nurtured the industry to what it is today, it certainly has been a huge leap from when TOAP started 60 years ago. It remains in good hands, with the younger generation now carrying the torch of leadership.”
What then, is in the pipeline?
As it celebrates six decades of actively steering the Philippine financial management industry, TOAP commits to focus on and strengthen the following:
Digital Transformation. Continuing to embrace technology to enhance efficiency, improve customer experience, and streamline processes involves digitizing operations, implementing online platforms for client interactions, and leveraging data analytics to drive informed decision-making. These new digital trust solutions give clients easier access to their accounts, enabling them to make more knowledgeable investment decisions in the process.
Comprising 70% of the Philippine population are the Generation Z and millennials, who contribute to the e-commerce boom. Their financial habits contribute to the growth of all things online, so the creation of easy customer experience and digital capabilities is essential.
Last year, TOAP embarked on a six-month digital marketing ad campaign aimed at reintroducing UITFs in the market. The campaign’s objective was to attract the younger generation to this product through a series of regular social media posts featuring art cards, explainer videos, and album posts. The attractive design, theme, and feel of all materials used were tailored to appeal to the millennial and Gen Z markets.
Sustainable and Responsible Investing. Promoting sustainable and responsible investing practices to align investments with environmental, social, and governance (ESG) criteria.
In 2008, the Personal Equity and Retirement Account (PERA) Act of 2008 was signed into law. PERA helps Filipinos invest in a more comfortable retirement. TOAP has been actively promoting this as part of their financial literacy campaign as it helps strengthen and identify small, medium and long-term financial goals. To demonstrate its commitment in supporting this government initiative, TOAP collaborated with the Bangko Sentral ng Pilipinas last year to conduct a PERA webinar for the families of overseas contract workers and to launch an information campaign on social media.
The annual Trust Consciousness Week, celebrated every March, advocates for financial literacy and consciousness. Aware of the vast market of young professionals and other sectors who remain unengaged in financial wellness, TOAP aims to help the next generation of trust investors attain financial growth through simplified financial opportunities.
The coming years may well see TOAP focusing on aggressively offering ESG-integrated investment products and educating clients on the benefits of sustainable investing.
Enhanced Customer Engagement. Implementing personalized and tailored services to meet the diverse needs of clients, involves deploying customer relationship management (CRM) systems, conducting client feedback surveys, and offering educational resources to empower clients in making informed financial decisions.
The trust industry is in constant exploration for alternative investment products amidst the evolving market demands. Customizing wealth management solutions, launching thematic investment funds, and forming strategic partnerships with fintech companies, industry partners and regulatory bodies help leverage collective expertise and resources to create value for stakeholders.
With 60 years of driving the trust industry into exponential growth in an inclusive financial market, TOAP remains a testament of its enduring commitment with its role as a catalyst of change in the trust, fiduciary, and asset management industry. The innovation, best practices, and sustainable, stable growth of the trust industry have greatly contributed to the continued confidence of investors, upholding the highest global standards of professionalism and integrity.
This article is in the special edition of BusinessWorld In-Depth digital magazine, in celebration of Trust Consciousness Week. Get the full issue for FREE via BWorldX. Visit www.bworld-x.com.
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THE BANGKO SENTRAL ng Pilipinas’ (BSP) net income fell by 59.9% last year amid higher expenses.
Preliminary data from the central bank showed that its net profit declined to P25.53 billion in 2023 from P63.73 billion in the previous year.
The BSP’s expenses surged by 68.3% to P244.21 billion last year from P145.13 billion in 2022.
Broken down, interest expenses nearly doubled (96.5%) to P168.29 billion from P85.63 billion, while other expenses rose by 27.6% to P75.92 billion from P59.5 billion.
Meanwhile, revenues stood at P212.76 billion in 2023, 50.8% higher than the P141.08 billion a year prior.
The BSP’s interest income climbed by 29.2% year on year to P197.92 billion from P153.20 billion.
Miscellaneous income, which includes trading gains, fees, penalties, and other operating income, stood at P14.84 billion last year, a turnaround from the P12.12-billion net loss recorded in 2022.
On the other hand, the central bank’s net gains from foreign exchange rate fluctuations dropped by 15.7% to P57.02 billion from P67.66 billion in 2022.
Separate BSP data showed total assets held by the central bank increased by 4.3% to P7.56 trillion in 2023 from P7.25 trillion a year prior.
Meanwhile, total liabilities went up by 3.9% to P7.42 trillion from P7.14 trillion. — Luisa Maria Jacinta C. Jocson
PRODUCTION of palay, or unmilled rice, and corn are estimated to rise in the first quarter, according to the Philippine Statistics Authority (PSA).
In a March 15 report, the PSA said palay output for the three months to March was estimated to increase 1.1% year on year to 4.83 million metric tons (MT), based on the standing crop as of Feb. 1.
The projection compares with the 4.78 million MT estimate for the year-earlier period and is also 0.6% higher than the earlier estimate of 4.8 million MT issued on Jan. 1.
However, the PSA estimates a decline in the harvest area for rice of 0.1% to 1.17 million hectares, while the yield per hectare of palay is estimated to have risen 1.2% to 4.11 MT.
The PSA said about 318,570 hectares or 27.1% of the 1.17 million hectares planted to rice have been harvested as of Feb. 1, with the resulting palay output at 1.29 million MT.
Some 856,310 hectares of palay have yet to be harvested, with 6.7% at the vegetative stage, 56.9% at the reproductive stage, and 36.5% at the maturing stage.
Meanwhile, corn production for the period is estimated to increase 5.9% to 2.67 million MT.
This represents a 0.8% downgrade from the 2.69 million MT estimate issued on Jan. 1.
The harvest area for corn is estimated to increase 2.5% to 711,470 hectares, while yield per hectare is estimated to increase 3.3% to 3.75 MT.
As of Feb. 1, 32.2% of the 711,470 hectares have been harvested, equivalent to 723,270 MT of corn output.
“Of the 482,130 hectares of standing corn yet to be harvested as of Feb. 1, about 2.2% were at the vegetative stage, 51.8% at the reproductive stage, and 46.0% at the maturing stage,” the PSA said. — Justine Irish D. Tabile
Chamber of Automotive Manufacturers of the Philippines (CAMPI) President Atty. Rommel Gutierrez (left) with Jetour Auto Philippines, Inc. (JAPI) Managing Director Miguelito Jose — PHOTO FROM JETOUR AUTO PHILIPPINES
SEEN AS A KEY move to accelerate its growth this year, Jetour Auto Philippines, Inc. (JAPI) has officially joined the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), the country’s largest auto industry organization. Jetour became CAMPI’s 15th associate member — joining 22 other brands.
In a meeting between CAMPI President Atty. Rommel Gutierrez and JAPI Managing Director Miguelito Jose formalizing Jetour’s membership, Atty. Gutierrez said he “sees the potential of Jetour Auto Philippines,” and that the brand could help CAMPI achieve its goals for the year.
“Our outlook for the industry is positive. We want to (sell) 468,300 vehicles, maintaining the momentum of the 9% growth of the industry in 2023,” he maintained.
For his part, Mr. Jose averred that membership in CAMPI opens up even bigger avenues of growth for JAPI. “Being a CAMPI member elevates JAPI’s standing in an industry that is getting even more competitive. CAMPI is the country’s most recognized organization in the automotive industry, and the world’s most popular and trusted brands are either members or associate members. To become part of this illustrious group in an effort to reach an all-time-high industry sales mark is an opportunity not to be missed,” he said.
JAPI projects to grow its vehicle sales from 1,018 units sold in its first nine months of operations in 2023 to 3,700 units (including 700 electric vehicles) by the end of this year. In addition, it has initiated a dealership network expansion program for 2024 that would see its number of dealerships and showrooms double — from five to 10 in Metro Manila, and from seven to 14 in the provinces.
JAPI has also been invited to participate in the Philippine International Motor Show (PIMS) to be held from Oct. 24 to 28. The biennial event is CAMPI’s premier auto show that exhibits its members’ products, models, services, and other technologies related to automobiles. For PIMS 2024, JAPI is set to display the brand’s “stylish, unique, intelligent, spacious, and multi-functional SUVs, C-SUVs, and EVs,” which consist of the Jetour X70 Journey, Travel, Sport, and Plus; the Jetour Dashing gasoline-powered SUV; the Jetour Ice Cream EV; and the recently launched limited-edition Jetour Dashing Symphony.
The Jetour brand was established in 2018 in Wuhu, China, as part of Chery Automobile Co. Ltd., the automobile business of Chery Holding Group, which was opened in 1997 and now has diversified into automobiles, automobile parts, finance, real estate (automobile camping), modern service industry, and shipbuilding.
YIELDS on government securities (GS) ended mostly flat last week amid the release of US inflation data that tempered bets of an early rate cut by the US Federal Reserve.
GS yields, which move opposite to prices, went down by an average of 3.77 basis points (bps) week on week at the secondary market, based on the PHP Bloomberg Valuation Service Reference Rates as of March 15 published on the Philippine Dealing System’s website.
The short end of the curve ended mixed, as yields on the 182-, and 364-day Treasury bills (T-bills) declined by 1.68 bps (to 5.9578%) and 8.54 bps (6.0195%), respectively. Meanwhile, the rate of the 91-day T-bill inched up by 0.77 bp (5.7729%)
At the belly, the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) dropped by 8.82 bps (to 6.0257%), 8.8 bps (6.0732%), 8.13 bps (6.1227%), 7 bps (6.166%), and 5.09 bps (6.2123%), respectively.
Meanwhile, yields on the 20- and 25-year debt papers increased by 4.46 bps (to 6.3001%) and 4.71 bps (6.2948%), respectively, while the 10-year debt paper fell by 3.39 bps to fetch 6.2189%.
Total GS volume reached P19 billion on Friday, higher than the P14.13 billion seen on March 8.
A bond trader said in a Viber message that US consumer inflation data affected local yields last week, as these could be considered by the Fed in its meeting this week.
US consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve, Reuters reported.
The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January, the Labor department’s Bureau of Labor Statistics said on Tuesday. Gasoline and shelter, which includes rents, contributed more than 60% to the monthly increase in the CPI. In the 12 months through February, the CPI increased 3.2%, after advancing 3.1% in January.
Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and increasing 3.1% year on year. The annual increase in consumer prices has slowed from a peak of 9.1% in June 2022, but progress has stalled in recent months.
Prior to the release of the CPI data, financial markets saw a roughly 70% chance of the Fed cutting rates in June. Since March 2022, the US central bank has raised its policy rate by 525 basis points to the current 5.25%-5.5% range.
ATRAM Trust Corp. Vice-President and Head of Fixed Income Strategies Lodevico M. Ulpo, Jr. said last week’s yield movements were mainly driven by the full award of the Bureau of the Treasury’s (BTr) T-bond offer last week.
“Consequently, yields dropped by 4 to 15 bps across the curve, with more pronounced buyer activity, although anticipation for [this] week’s 20-year bond auction caused a lag in long-end yield levels,” he said in an e-mail.
The BTr raised P30 billion as planned via the reissued 10-year bonds it offered on Tuesday as total bids reached P96.071 billion, or more than three times the amount on the auction block.
The bonds, which have a remaining life of nine years and 10 months, were awarded at an average rate of 6.227%, with accepted yields ranging from 6.198% to 6.24%.
“The recent 0.4% increase in the US CPI for February is likely to influence bond market dynamics by encouraging investors to balance reinvesting liquidity from maturing bonds against global inflation trends,” Mr. Ulpo added.
For this week, the Fed’s March 19-20 policy meeting and the 20-year T-bond auction could drive yield movements, he said.
“The prevailing high liquidity levels are anticipated to drive rates lower. However, guidance from the US Federal Reserve, particularly regarding rate cuts, will be crucial. The market is poised to respond to monetary policy signals and reflationary economic data, suggesting a cautious but potentially downward trend in yield levels,” Mr. Ulpo said. — Mariedel Irish U. Catilogo with Reuters
MADRID — Zara-owner Inditex more than doubled its pre-tax profits in China last year even as the fashion retailer scaled back its physical presence, closing a fifth of its stores in the country in a sign its focus on online sales is bearing fruit.
Inditex has been shrinking its store footprint globally over the past few years, seeking to optimize its selling space by focusing on flagship outlets in prime locations and ramping up online sales.
Of 123 net store closures globally last year, 50 were in China, Inditex’s annual report showed on Thursday. As recently as 2019 Inditex had 570 stores in China, its biggest physical footprint after Spain. The retailer now has 192, as of Jan. 31 this year.
“Inditex for several years has adopted a more digital first strategy in China given the structural trends in the market there and the huge importance of e-commerce,” said RBC analyst Richard Chamberlain.
Inditex’s profit before tax in China more than doubled to €241 million ($263 million) for the 2023 financial year ended Jan. 31.
Inditex launched a weekly livestream experience on video-sharing platform Douyin in China late last year as a way to boost online sales, and plans to launch livestreams for its core brand Zara in the United States and Britain this year.
“We view this initiative positively… given the widespread integration of digital platforms into people’s everyday lives, we believe that leveraging platforms like Douyin can effectively engage Chinese consumers,” said Firdaus Ibrahim, equity analyst at CFRA Research.
Overall Inditex increased its online sales by 16% to €9.1 billion in 2023, accounting for a quarter of total sales. Inditex has 5,692 stores globally, over a third of which are its core brand Zara.
The China results contrast with Inditex’s performance in the United States, its second-biggest market by sales, where pre-tax profits fell 7% last year, according to the annual report. —Reuters
WITH 12 FLOORS of office space (apart from a dedicated floor for parking and another for retail spaces), Cybergate Iloilo Tower 3 is the tallest of the three office buildings.
GOKONGWEI-LED Robinsons Offices said it has completed the structural work for its Cybergate Tower 3 in Pavia, Iloilo.
“[The company] recently hosted the topping-off ceremony for Cybergate Iloilo Tower 3, the latest addition to its… Robinsons Cybergate Iloilo Towers complex,” Robinsons Offices said in a statement on Sunday.
The Iloilo Cybergate Tower 3 is the tallest among the three buildings. The first two towers have five and eight floors, respectively, while the third tower has 12 storeys.
“All towers are… designed to cater to the needs of a variety of enterprises, including BPOs, IT companies, and even traditional businesses,” the company said.
Cybergate Iloilo Tower 3 is registered with the Philippine Economic Zone Authority, allowing future tenants to enjoy incentive packages from the government.
“[Design] features such as the facade’s aluminum-accented glass curtain and building interiors… pay homage to Iloilo’s celebrated Dinagyang Festival and its indigenous textiles,” the company said.
The eight-hectare Pavia complex is 12 kilometers away from the Iloilo International Airport.
The Tower 3 has a transport hub, which connects commuters to destinations outside the province, the company said.
“With projects such as Cybergate Iloilo that stimulate job creation in the region, Robinsons Offices helps promote the reverse migration effect, which in turn keeps many Filipino families together while serving as agents to nation-building and economic development,” Robinsons Offices’ Senior Vice-President and Business Unit General Manager Jericho P. Go said.
Prime Philippines Chief Executive Officer and Founder Jettson “Jet” Yu called this development part of the emergence of a trend towards walk-to-home, suggesting a demand for walkable offices in key cities outside Metro Manila, including Iloilo, Bacolod, Davao, and Pampanga. — Aubrey Rose A. Inosante
Mr. Te further expounds that the introduction of a broader range of UITF products increased investment options for investors, giving them a wider range of preferences according to their risk tolerance. It has also contributed to the growth of assets under management (AUM) for trust companies, as it has become a popular choice for both individual and institutional investors. In fact, by end of 3rd quarter 2023, UITF’s AUM was reported to be at P815 billion.
