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Debt service bill falls by 22% in Feb.

REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE NATIONAL Government’s (NG) debt service bill fell by 21.9% in February due to a drop in amortization payments, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that the NG’s debt service bill declined to P293.615 billion in February from P375.714 billion in the same month a year ago.

Month on month, debt repayments surged by 84.8% from P158.898 billion in January.

The bulk (83.7%) of the total debt service bill in February went to amortization.

Principal payments during the month slipped by 28% to P245.788 billion from P341.605 billion a year earlier.

Domestic debt payments stood at P243.625 billion in February, lower by 19.7% from P303.461 billion in the same month in 2023.

Amortization on foreign obligations plunged by 94.3% to P2.163 billion from P38.144 billion a year ago.

Meanwhile, interest payments climbed by 40.2% to P47.827 billion during the month from P34.109 billion a year ago.

Broken down, interest on local debt jumped by 56.7% year on year to P34.35 billion from P21.924 billion.

Domestic interest payments consisted of P21.676 billion in fixed-rate Treasury bonds, P7.734 billion in retail Treasury bonds, and P3.264 billion in Treasury bills.

Interest paid on foreign debt went up by 10.6% to P13.477 billion in February from P12.185 billion in the same month a year ago.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the decline in debt payments was mainly due to the lower amount of maturing government securities in February compared with a year ago.

“Especially much larger Treasury bond maturities and principal payments a year ago, thereby resulting in a dramatic decline in the national debt servicing bill in February 2024,” he said in a Viber message.

“Payment of larger amount of principal payments a year ago also somewhat reduced interest payments for February 2024,” he added.

John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said the annual drop in the debt service bill was also due to the weaker peso and wider fiscal deficit.

“This can be due to a mixture of several factors such as currency depreciation, lower amortization payments amidst higher interest payments, and greater funding requirements due to the persistent budget deficit,” he said in a Viber message. 

The peso depreciated to P56.20 as of end-February 2024, weakening by 87 centavos from its P55.33 close in end-February 2023.

Separate data from the BTr showed that the NG budget deficit widened by 54.81% to P164.7 billion in February from P106.4 billion a year earlier.

Meanwhile, the debt service bill in the first two months of the year rose by 6.8% to P452.513 billion from P423.545 billion in the same period a year ago.

The debt service bill consisted mainly of principal payments, accounting for more than three-fourths or 73% of the total.

In the January-February period, amortization payments slipped by 3.5% to P330.465 billion from P342.466 billion in 2023.

Principal payments made on domestic debt reached P243.763 billion, while payments for foreign obligations reached P86.702 billion during the period.

Meanwhile, total interest payments during the two-month period increased by 50.5% to P122.048 billion from P81.079 billion last year.

Foreign interest payments amounted to P38.875 billion in February.

In 2023, the NG’s debt service bill jumped to P1.604 trillion, up by 19% from P1.293 trillion in 2022.

Under the latest available Budget of Expenditures and Sources of Financing, the NG’s debt service program this year is set at P1.91 trillion.

Many Filipino PWDs still struggle to join the workforce, remain poor

PHILIPPINE STAR/EDD GUMBAN

By Patricia B. Mirasol, Reporter 

TRIVOR U. LATAYAN, 29, has been working as a bank accounting associate at Bayer Business Services Philippines, Inc. in Manila since 2019.

He’s the company’s first deaf employee, and having that disability has taught him resilience.

“It was tough on my first day at work because my colleagues didn’t know much about deaf culture or how to communicate with me,” Mr. Latayan, who lost his hearing at the age of two after going into a coma, said in an e-mail. “But that didn’t discourage me.”

Things improved over time as he mustered the courage to “talk” to his hearing colleagues about the basics of sign language and how important clear communication is.

Companies that lead in disability inclusion drive more revenue and profit, according to a 2023 study of the US workforce by Accenture and Disability:IN.

Accenture first documented the business case for hiring persons with disabilities (PWD) and offered guidance on how to advance inclusivity efforts in 2018, just before a global coronavirus pandemic.

“In the past five years, the business case for hiring persons with disabilities has become even stronger,” Accenture said in the 2023 report.

Companies that have led on key disability inclusion criteria have realized 1.6 times more revenue, 2.6 times more net income and two times more economic profit than other participants in Disability:IN’s annual benchmark survey.

They were also 25% more likely to outperform on productivity compared with their industry peers that have not participated in the survey, measured as revenue per employee.

Diversity in the workplace, including hiring PWDs, leads to innovation and boosts employee engagement, Michael G. Panlaqui, human resources head at Bayer Philippines, said in an e-mailed reply to questions.

“Innovation is fueled by diverse people and diverse perspectives,” he said. “When you have a mission like ours at Bayer… that includes hiring PWDs who can contribute their views, talent and skills in pursuit of that mission. The talent and drive to excel can be found in anyone, even if they have a disability.”

Everyone brings “unique skills and strengths” to the table, Ambe C. Tierro, country managing director and technology lead at Accenture Philippines, told BusinessWorld.

“Hiring PWDs in our company promotes an inclusive culture, enhances engagement among our people and drives innovation,” she said in a separate e-mail. “That’s why we work in removing boundaries to foster an inclusive and productive environment.”

Hiring persons with disabilities is not an act of charity, contrary to popular belief, Grant Javier, executive director at nonprofit group Project Inclusion Network, said in a Zoom interview.

“Companies themselves greatly benefit from hiring PWDs,” he said. “It’s a good business decision to hire them.”

PWD-friendly companies have invested in technology to make life easier for people with disabilities.

Accenture opened its Philippine Accessibility Center, where PWDs can interact with accessible technology, in 2019. Among the tools found in the center are a smart cane that detects above-ground obstacles with ultrasound, automated wheelchairs and software that translates voice responses into typed text during video calls. 

Bayer, meanwhile, had hallways and meeting room door widths adjusted in its Philippine office to accommodate wheelchair-bound employees. It also installed strobe lights to alert deaf employees in case of an emergency.

Team members of PWD co-workers likewise receive cultural sensitivity training, Mr. Panlaqui said.

“We even install the necessary supporting technology to help visually impaired colleagues do their work,” he said. Bayer’s town hall meetings and special events include deaf interpreters or live captions.

Having a deaf-driven business is easier than most people think, according to Francis Carl G. Reyes, chief executive officer and founder of Caravan Food Group Inc., which operates the Overdoughs and Elait food brands.

Customers can order through writing tablets available at all Overdoughs and Elait branches, he said in an interview. The menus are designed so patrons can easily point out the items they want.

The company also developed buzzers connected to watches, so “with just a touch of a button, the staff are alerted, and they know which table needs them,” Mr. Reyes said.

STILL POOR
There were 1.5 million registered PWDs in the Philippines as of April 12, according to the National Council on Disability Affairs website. 

“Most are living in poverty,” Billy Jay N. Pedron, a professor at the De La Salle Medical and Health Sciences Institute, said in the January 2024 issue of World Education Connect e-publication.

Decades after the enactment of the Magna Carta for Disabled Persons in the 1990s, PWDs still face challenges, particularly in getting decent jobs, he said.

People with disabilities face the major problem of job mismatch between their skills and the available jobs in the market, Mr. Pedron said.

The law also does not force private companies to hire PWDs. “Instead, the law only encourages private institutions to hire and employ PWDs with an incentive,” he said in the study.

Only 57% of PWDs in the Philippines were employed in 2020, as opposed to the 93.4% national employment rate at that time, according to the Technical Education and Skills Development Authority. The top two misconceptions about PWD employees are “they either can’t handle it, or they can only handle this much,” Mr. Javier said. “A third one is that it’s costly to hire them.” 

Employers can also have “attitudinal barriers.” “Oftentimes, people think that the barriers only exist in a physical sense, but the greater issue is with the mindset of people who hire.”

Philippine laws “encourage” private companies with more than 100 employees to reserve at least 1% of all positions for people with disabilities.

Bayer, which has three units in the Philippines — Bayer Philippines, Inc.; Bayer Crop Science Philippines, Inc.; and Bayer Business Services Philippines — said its 35 PWD employees account for almost 2% of its headcount. Accenture counts 4% of its Philippine staff as PWDs.

People should not put PWDs in a box, Mr. Javier said, citing the stereotypes of blind people working as massage therapists, or persons with autism who are overlooked in customer-facing roles.

Project Inclusion Network has placed blind people in information technology as programmers. “That was unthinkable before, but with the openness of companies and the technology available nowadays, this is highly possible.”

Some Filipinos with autism have found their way into HR. Hiring PWDs need not be costly either, Mr. Javier told BusinessWorld.

“We can come up with strategies that don’t require sign language interpreters. You can text to talk to each other, for example,” he said. “That alone is very cost-effective.”

Tax incentives are another corporate benefit for Philippine companies that hire people with disabilities, though most find the requirements too much of a hassle.

Under the law, private companies that employ qualified PWDs are entitled to an additional deduction from their gross income equivalent to 25% of salaries paid to PWDs.

“The Labor department and Bureau of Internal Revenue are not aligned,” Mr. Javier said. “There are so many procedures required by both agencies.”

Mr. Reyes, whose company’s deaf employees make up more than half of its staff, said they’ve tried several times to avail themselves of the tax incentives, to no avail.

“Every time we try to reach out [to a government agency], they always seem to be on vacation,” he said. “Now, we’re paying everything like a normal company.”

But for Caravan Food Group, it’s not about the incentives. “It’s helping us send a message that even without incentives, we are operating successfully. You can make a successful business without any of these benefits.”

Mr. Javier said policy makers seem to be aware of the needs of people with disabilities and lawmakers particularly have been trying to improve their lot.

In March 2022, a measure that ensures inclusive education for students with disabilities was enacted, even though it’s “not perfectly implemented,” he said. Both Houses of Congress have also recently held hearings on the PWD ID and its benefits.

Bayer Philippines plans to hire more people with disabilities, Mr. Panlaqui said. He added that Bayer employees know too well that an inclusive workplace is about people looking out for each other.

“Whenever we have a company-wide hybrid event and the deaf interpreter is not immediately on screen, many of our people will actively chat in the message section looking for them because they know their colleagues need them,” he said.

Mr. Reyes wants to give his staff career opportunities beyond manning a café.

“I want to give them more leadership training,” the PWD champion said. We already have deaf supervisors and deaf managers. It’s already starting.”

Mr. Latayan, the deaf accounting associate at Bayer, enjoys the opportunity to learn and grow in his job. “It feels great to be in a place where I can thrive and contribute, regardless of any challenges I may face.”

BoI says investment pledges reach P607B

Philippine flags line the road in the City of Dasmariñas in Cavite, June 2, 2023. — PHILIPPINE STAR/EDD GUMBAN

INVESTMENT COMMITMENTS approved by the Board of Investments (BoI) reached P607.22 billion as of April 17.   

BoI Director for Investment Policy and Planning Service Sandra Marie S. Recolizado said that the investment promotion agency approved a total of 117 projects, which mostly came from domestic investors.

“Our total approved investments increased by 15% because last year, from January to April, we recorded P527.24 billion worth of investment approvals, while for January to this week, we already have P607.22 billion,” Ms. Recolizado said during a media briefing on Friday.

Domestic investors accounted for 80% or P494.37 billion of the total approved investment pledges during the January to April 17 period.

Trade Secretary and BoI Chairman Alfredo E. Pascual said rising domestic investments signal the improving confidence of local investors in the economy.

“We should not belittle that most of the investments are domestic because that is really what we are encouraging, that our domestic investors commit their capital to projects in the Philippines rather than bringing out their money or capital outside the country,” Mr. Pascual said in mixed English and Filipino.

In his recent trips abroad, particularly in Vietnam, the Trade chief said he noticed that a lot of Philippine companies and enterprises are investing overseas.

“That is why we should celebrate that local investors are investing in the Philippines because foreign investors would also look into that,” Mr. Pascual said.

“They will question if the local investors, who know the innards of the country, do not invest in the Philippines. What I just want to highlight is that local investment is as important as foreign investment,” he added.

In terms of sectors, Ms. Recolizado said that the majority of the projects are in renewable energy.

“The biggest project that we have approved is Ahunan Power, Inc.’s project… and the second-largest project that we have approved is the Ivisan Windkraft Corp.’s project.

Ahunan Power will develop a P296.98-billion,1,400-megawatt (MW) hydropower resource and pumped storage hydroelectric power plant in Pakil, Laguna. It is 100% Filipino owned. 

Meanwhile, Ivisan is undertaking a P83.7-billion offshore wind project in Cavite. The project is 75% owned by Singaporean investors.

Investments in renewable energy projects increased after the Philippine government allowed full foreign ownership in the sector starting November 2022.

Asked if there are still projects set to be approved in the BoI’s management committee meetings this month, Ms. Recolizado said: “There are many projects that have filed applications with us but are still being evaluated.”

“These projects in the pipeline are for checklisting, which means that we have not accepted them yet, but we already have interaction with them,” she added.

Last year, the BoI approved P1.26 trillion in investments, 66% or P763.22 billion of which are foreign investments. For this year, the BoI has an internal target of approving P1.3 trillion to P1.5 trillion in investments. — Justine Irish D. Tabile

Around 15 PPP projects up for NEDA Board approval next year

PHILIPPINE STAR/MICHAEL VARCAS

AROUND 15 public-private partnership (PPP) proposals may be submitted to the National Economic and Development Authority (NEDA) Board for approval next year, the Public-Private Partnership (PPP) Center said.

“We’re hoping [that] under just the solicited and PDMF (Project Development and Monitoring Facility) funded projects [for] next year, maybe around 15 [will be sent to the NEDA Board],” PPP Center Executive Director Ma. Cynthia C. Hernandez told reporters on April 18.

She said the number of unsolicited proposals increased to around 30 since the PPP Code’s implementing rules and regulations took effect earlier this month.

Majority of the unsolicited proposals are National Government PPPs, covering key industries namely information technology, energy, and waste management.

“The [bulk of] unsolicited proposals are still National Government projects as its revenue potential is still bigger,” Ms. Hernandez said in mixed English and Filipino.

PPP projects need to be approved by the NEDA-Investment Coordination Committee before these are submitted to the NEDA Board, chaired by the president, for final approval. 

Meanwhile, European Chamber of Commerce of the Philippines (ECCP) Board Director Diana M. Edralin said that digitalizing the healthcare sector with the help of artificial intelligence is crucial to identify necessary PPP projects for local government units (LGU).

“[Through digitalization,] the LGU will have the data that will help them prioritize and understand what kind of public-private partnerships can potentially help address those issues,” Ms. Edralin, also the general manager of biotech company Roché Philippines, Inc., told BusinessWorld at the sidelines of a PPP and ECCP luncheon meeting on April 18.

British Chamber of Commerce of the Philippines Executive Director Chris Nelson said British companies are looking to participate in PPP projects on infrastructure, renewable energy, and sustainability.

“We think that’s a good direction and along with obviously wanting to see the economy further open up in many areas… and we’d like to see further development and use [the PPP Code] to encourage British interest,” Mr. Nelson said via telephone.

American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe said more American investors are expected to participate in key infrastructure projects, such the North South Commuter Railway and emerging projects at the New Clark City.

There are currently 122 PPP projects valued at P2.52 trillion in the pipeline as of April 12. Of these, 100 are national projects while the rest are local. — Beatriz Marie D. Cruz

Startup trailblazers share tips on starting a business

From L-R: BUILD 2024 Host Joey Tekiko, Great Deals E-Commerce Corp. Founder & CEO Steve Sy, PayMongo Co-Founder & Chairman Luis Sia, Growsari Co-Founder & CEO Ed Rollan, Foxmont Capital Partners Managing Partner Franco Varona, and PayMongo CEO Jojo Malolos

From raising funds, to scaling operations efficiently to navigating market competition — the list of obstacles a startup faces is endless. Fortunately, starting a business in 2024 may not be as daunting as it was a decade ago when the Philippine startup ecosystem was young and startups lacked support.

This was the key takeaway in a panel discussion organized by PayMongo, a Philippine-based digital financial services solutions provider, as part of the BUILD Startup Festival held recently at Six/NEO in Bonifacio Global City, Taguig. The event was moderated by PayMongo CEO Jojo Malolos, with PayMongo Co-Founder and Chairperson Luis Sia, Growsari CEO and Co-Founder Ed Rollan, Great Deals E-Commerce Corp. Founder and CEO Steve Sy, and Managing Partner of Foxmont Capital Partners Franco Varona serving as panelists.

Throughout the discussion, the panelists shared tips on how Filipino entrepreneurs can survive the ever-growing startup ecosystem.

Mr. Sia, who co-founded PayMongo at the age of 23, advised aspiring entrepreneurs to know how much time it takes to build their business and stick it out. A startup’s journey to success is a long and bumpy road; hence, founders need to be patient when dealing with obstacles that are bound to come along.

Mr. Sia also encouraged entrepreneurs to have the persistence to see through these roadblocks and turn them into opportunities for success.

“A lot of great problems are solved over a long time,” he added.

Coming from his experience with Growsari, Mr. Rollan explained the importance of understanding investments, whether in warehousing, logistics, or staff hiring. He further expounds that startups, especially in their early stages, will always be bound with questions and challenges, but knowing which to focus on and your expertise as an owner will be vital to making your business thrive.

“Our business mindset is always, if I do this on my own, I should be the best person to do this in the industry otherwise, it’s better that someone else do it,” Mr. Rollan stressed.

Growing and scaling one’s business are two different matters but both are important in business development, Mr. Sy of Great Deals E-Commerce Corp. highlighted. Growing a business is when revenue increases as a result of expanding the organization through new hires, investing in new equipment, and so on. Meanwhile, scaling is when businesses manage their existing resources to efficiently sustain growth. Understanding the difference between these two concepts can help founders determine what they need to raise funds for and get to the next level.

“When you focus too much on growth, you tend to overlook important steps to be able to scale, so it’s important to know the right processes for your business to grow and then eventually be able to scale,” Mr. Sy underscored.

Mr. Varona, who engaged a number of entrepreneurs at Foxmont Capital Partners, emphasized that business owners need to have a reality check and ensure that they have a specific intention to raise capital rather than for vanity or increasing their business’ worth.

“Raising money should always be accompanied by very specific reasons, like growing or scaling,” he said.

Aside from these valuable tips, the trailblazers also highlighted the importance of establishing support systems such as mentorships to ensure a productive and encouraging environment for the development of local startups.

“The evolution of the Philippine startup ecosystem over the years has unlocked tremendous opportunities for local entrepreneurs. Support systems and mentorship programs have been critical components in helping these businesses succeed, especially at the early stages,” Mr. Malolos of PayMongo said. “Hopefully, through events like BUILD, we can continue to foster collaboration and innovation, driving the continued growth of the startup community,” he added.

BUILD, organized by Esquire Philippines and Sinigang Valley Association, with support by PayMongo this year, is an annual one-day event convening startup founders, executives, investors, incubators, and government regulators, showcasing the Philippines’ thriving startup networks. This year’s festival concluded with a strong call for entrepreneurship and innovation, encouraging Filipinos to continue solving old problems with new takes through their startups.

Young Filipino students win big in the 9th Philippine Robothon Competition

The country’s brightest, most tech-savvy young minds won big in the 9th Philippine Robothon Competition 2024 co-organized by First Eduspec, Inc. and Rex Education. The competition was recently held at St. Paul College Pasig.

The competition, the most prestigious robotics-related showcase in the country today, was aptly themed, “F.U.T.U.R.E.: Filipinos in Unified Technologies, Unveiling Robotics Excellence; Pagtanaw sa Ating Ambisyon Tungo sa Matatag na Edukasyon.” It gave young Filipino innovators a fitting platform to show their expertise in robotics, a field becoming increasingly important in today’s society. The ninth edition, like its predecessors, allowed the student participants not only to demonstrate their various technical skills when it comes to robotics but also their ability to create innovative solutions to pressing community issues.

St. Paul College Pasig (Primary), Las Piñas Montessori School (Middle), Brokenshire College Toril (Junior), and Grace Christian College (Senior) were adjudged champions in the different mini-robot challenge categories. De La Salle University Integrated School (Middle) and Immaculate Conception-Greenhills (High School), on the other hand, were hailed as the big winners in the two innovative open categories.

Aside from the contest proper, another highlight of the 9th Philippine Robothon Competition was the seminar-workshop titled “Unlocking Learner’s Potential through STEAM Education.” This conference gathered some of the country’s best, most innovative experts in the fields of science, technology, engineering, arts, and math (STEAM) — including Gino Luayon, school head at the Domuschola International School; Vilma Clerigo, principal at San Beda College Alabang; and Paolo Josef Blando, program and partnership development officer of the National Teachers College — to discuss the growing importance of STEAM education in the modern-day curriculum and how to unlock students’ potential in these fields.

STEAM is a critical component of 21st-century education because at its very core is the enhancement of vital future-proof skills like problem-solving, data gathering and analysis, evidence assessment, and technical and technological know-how. The same skills are expected to have premium value in this present-day context marked by rapid advancements in technology and heightened complexity.

To know more about the 9th Philippine Robothon and the winning entries, visit https://www.facebook.com/EduspecPhilippines?mibextid=ZbWKwL.

The greening of the Corolla Cross

The base variant of the Toyota Corolla Cross, the G grade, is now a hybrid as well. — PHOTO BY KAP MACEDA AGUILA

Toyota’s popular compact SUV is now exclusively available with a hybrid powertrain

THE HYBRID electric vehicle (HEV) space is a segment where Toyota Motor Philippines Corp. (TMP) is the first mover in. Before it even appeared as a blip on the automotive radar, the Prius appeared here back in 2009.

It was a very different scene back then, of course. Filipinos were largely not quite ready for the concept of a battery-powered motor appearing alongside an internal combustion engine (ICE). And despite Toyota’s earnest information campaign to clarify what a hybrid actually is, the idea simply didn’t catch on. Maybe it just wasn’t time then. Also, to be completely honest, the funky look of the Prius then didn’t do itself a favor either.

Today, we’re far removed from those tentative first steps, and the notion of electrification is now neither novel nor far-fetched. In fact, when TMP formally unveiled the face-lifted Toyota Corolla Cross recently, it did so with such a resolve and decisiveness that would not have been possible all those years ago.

Let me explain: Although not yet an all-new iteration, the Corolla Cross is now effectively bereft of a purely ICE-powered version. Yup, TMP is now exclusively offering hybrid versions of its crossover — going all in for the nameplate it debuted here in 2020.

In a release, TMP President Masando Hashimoto said, “The Corolla Cross, the first strong hybrid crossover in the Philippines, has been a key to accelerating electrification in the Philippines. TMP pioneered the hybrid in 2009, but (it was after) the Corolla Cross launch in 2020 when we started achieving three-digit annual sales figures of xEVs (electrified vehicles).”

Last year, consolidated xEV figures for Lexus and Toyota reached 7,203 units. By the end of February this year, TMP reported a sales total of more than “4,000 electrified Corolla Cross (units) on the road, part of the more than 13,000-strong customers who chose electrified Toyota and Lexus models since we started the electrified movement.”

I spoke exclusively to Mr. Hashimoto on the sidelines of the Corolla Cross launch, and he expressed bullishness about the prospects in the space. Check out our Q&A on this page.

Three trims of the Corolla Cross will remain: the entry-level G, the V, and the GR-S (Gazoo Racing Sport). But again, all of these will now boast hybrid electric powertrains. The G starts off at P1.498 million, which makes the hybrid crossover a lot more attainable — something that should serve the country’s perennial auto sales leader in good stead amid the influx of challenger brands, particularly those from China.

Aside from the hybrid powertrain universality, the Corolla Cross has other new things up its sleeve. The V and G variants boast a mesh-like grille with hexagonal outlines, even as the GR-S retains its familiar face. The V and GR-S variants now receive LED headlamps with automatic high beam and sequential turn lamps; the G’s headlights have been upgraded from halogens to LEDs.

A panoramic view monitor camera and panoramic moonroof are affixed on the GR-S, and buyers will also benefit (as with those opting for a V) from a powered liftgate with kick sensor. All variants now have LED interior lamps and a leather-wrapped steering wheel. The foot brake (which not a few commented as conveying a less-than-premium feel) has been supplanted with a more appropriate electronic parking brake.

In front of the driver, a 12.3-inch fully digital multi-information display is on the GR-S, a seven-inch thin-film-transistor display is on the V, and the G gets a 4.2-inch TFT. Meanwhile, all three grades have a 10-inch display audio with wireless Apple CarPlay and Android Auto, plus a wireless charger for smartphones.

Toyota Safety Sense (TSS) driver assistance features are available on the GR-S and V trims for enhanced protection. These include a pre-collision system, automatic high beam, lane tracing assist, lane departure alert, and dynamic radar cruise control. Active safety features are available on all grades: emergency brake signal, anti-lock braking system, electronic brake distribution, and vehicle stability control.

Under the hood is the same mill for all three: Toyota’s 1.8-liter 2ZR-FXE hybrid powertrain with VVT-i. Total system power is rated at 122ps, while torque is at 142Nm. Drivers access the performance via a CVT. “This hybrid engine combines the power of a conventional engine with the fuel efficiency of an electric motor for an eco-friendlier drive, giving customers the power to start their journey toward a carbon-neutral future,” stressed TMP.

The V is priced at P1.763 million, while the GR-S is tagged at P1.917 million.

“The Corolla is the best-selling Toyota nameplate in the world. Since the introduction of the brand in 1966, roughly 50 million units have been sold in 150 countries — and that includes the Philippines. The Corolla’s story continues today, and with its role in carbon neutrality, we are working on having the Corolla enjoyed by generations to come,” concluded Mr. Hashimoto.

Suffice it to say that the Corolla’s hybrid chapter has indeed opened.

Rustan’s garden party marks summer campaign

AN IMAGE from Rustan’s ‘State of Mind’ campaign.

This as company leadership makes smooth transition after passing of Nedy Tantoco

ALL five floors of Rustan’s Makati transformed into a giant party on April 17 at the launch of their summer campaign. The store’s windows had been dressed for summer, and guests walked around the store with drinks in their hands, and played games at different departments. All in all, a pretty great evening.

While there were several discounts only available during the evening, as well as a travel fair that ended last Sunday, the treats keep coming as the travel fair hops over to Rustan’s Shangri-La on April 27 to 28.

The fifth floor itself was transformed into a garden party, with “grass” everywhere, a DJ, and a wall with a bell you could ring for wine (a hand would pop up from behind the wall to hand you a glass).

Anton Huang, SSI Group, Inc.’s Chief Executive Officer talked about the store’s transformation, as well as the campaign, in an interview. “I want something to generate warmth within the shopping environment. I don’t want anything stiff; I want greenery, lushness, and the like, and that is the guiding peg for the whole campaign.”

Mr. Huang succeeded his mother Zenaida “Nedy” Tantoco after her death earlier this year (he shares leadership with his cousin, Bienvenido “Donnie” Tantoco III). “We definitely miss her presence,” Mr. Huang said. “She was always a driving force behind our companies. We’ve been set up with a very professional structure for many years now. The business goes on; the operations go on. We have a strong management foundation, and things have been in place for quite a while,” he said.

Last week, BusinessWorld reported that SSI Group, Inc. saw an increase of 34% in its net income to “an all-time high of P2.58 billion” last year.

“I think at this point, we remain focused on making sure that the customer experience in our stores is top-notch and exactly as our customers expect them to be,” he told BusinessWorld. “It’s an ongoing effort to keep on making sure that we have the products that our customers want, and the time that they want them.” — Joseph L. Garcia

Q&A: ‘We need to accelerate our electrified strategy’

Mr. Hashimoto speaks at the public launch of the Toyota Corolla Cross.

TMP President Hashimoto on the company’s bold direction

Interview By Kap Maceda Aguila

MASANDO HASHIMOTO’S first vehicle launch after taking the helm of Toyota Motor Philippines (TMP) was an especially important occasion as it veritably tied in with the giant automaker’s vaunted drive toward carbon neutrality. Toyota’s global push to lessen dependence on fossil fuel and its resulting ills has famously been a “multi-pathway approach,” which does not confine itself to a battery electric vehicle solution but, rather, a number of immediately deployable and viable forms. We talk exclusively to Mr. Hashimoto, who explained the company’s broad and fine strokes on greener mobility and more. Excerpts from our interview:

VELOCITY: What is the message of Toyota Motor Philippines with the stoppage in selling the pure ICE (internal combustion engine)-powered Toyota Corolla Cross?

MASANDO HASHIMOTO: When we launched this model four years ago, we were quite surprised by its sales performance. It’s been well appreciated and accepted by the market. This C-segment is a kind of volume mainstream category for us. We decided that in this main area, we need to accelerate our hybrid or electrified strategy more. That is why we decided to focus only on the hybrid lineup this time. That is the background.

TMP has been growing the number of models where there are only hybrid options like in the case of the RAV4, Camry, and Corolla Altis. Are you going to continue doing that, and how do you see the market reception? We of course have to remember that Toyota is the number-one brand here. Do you think that with the increased number of hybrid models, you can still realize the volume? This assumes that more Filipinos are going to choose hybrids.

That’s a very good question. After we (Lexus and Toyota) sold around 7,000 hybrid vehicles and battery electric vehicles last year, we want to double this figure this year, at least. That is our aim and ambition. So, considering those things, we need to expand our lineups like in the Corolla Cross. Probably, in the B-segment or small, compact segment we have to have more options to the customers. Some customers want to have more affordable (models); some are very interested in carbon neutrality. We have multiple options; that is our approach to the customer.

What do you say to customers who ask why Toyota isn’t releasing a battery electric vehicle (BEV) here?

At the moment, Toyota and Lexus are selling two models of BEVs which are the UX EV (see article on the right) and RZ EV. We are now making a kind of first step in this new area. I say new because in the case of the BEV, it needs the infrastructure first then the car later. We need to monitor and keep watching the momentum of the charging station infrastructure rollout, so that people can adapt, society can adapt to a wider range of the BEV product in the future. We have ICE-powered models, we have hybrid models, and we have battery electric models. TMP now is a full-lineup OEM brand we can have such a transition technology until the time we are fully and enjoying the infrastructure in the future.

Deep tech startup Nibertex secures funding for fast-tracking launch of solutions

Nibertex, a pioneer in material science based in Singapore and the Philippines, recently closed an oversubscribed funding round led by Foxmont Capital Partners and backed by a consortium of notable strategic Southeast Asian families.

This influx of capital is set to fast-track the launch of their innovative and unique PFAS-free membrane technology. PFAS (Per- and Polyfluoroalkyl Substances) is otherwise known as the “forever chemical” present in textiles with bonds so strong that it does not break down for hundreds of thousands of years, if at all.

Increased customer awareness and heightened regulatory focus away from these forever chemicals position Nibertex well to lead the market transition to a more sustainable way to have products that are both waterproof and breathable. Its proprietary solution does not have any forever chemicals and is thus an environmentally safe, high-performance alternative.

“We are not just meeting new regulations; we are setting a benchmark for sustainable innovation across industries,” says Jae Min Park, co-founder of Nibertex. “As a leading provider of PFAS-free solutions, we are ready to assist brands and manufacturers in moving away from these detrimental chemicals.”

The investment allows Nibertex to significantly increase its current capacity to meet more of the surging demand for their groundbreaking membrane. Beyond textiles, the technology is applicable in electronics, automotive, and construction, marking Nibertex as a vanguard of eco-friendly material science.

“It is incredibly exciting to see that a technology with the potential to be applied to so many different use cases at a global scale has come from the Philippines,” says Jelmer Ikink, founding partner at Foxmont Capital Partners. “After years of painstaking R&D they now have the product, experience, cost advantage, and clientele to change entire industries so that we can together help rid our daily lives of these harmful chemicals and we are keen to support them in that mission.”

Nibertex’s membrane is distinguished by its proprietary formulation, ensuring unparalleled breathability and water resistance without PFAS, thus fulfilling the pressing need for materials that meet strict environmental standards set by customers or governments.

“Our aim is to pioneer material science innovations that are environmentally sound, serve our customers, and positively impact society. This funding not only validates our technology but greatly strengthens our market presence,” says Jae Hyung Park, the other co-founder of Nibertex.

Summer in Spain

SPRINGFIELD

TWO brands under the Spanish Tendam group, Women’secret and Springfield, held a party and fashion show at the One Ayala Mall on April 19. Ice cream and chips were in everybody’s hands, while models walked on the runway wearing the latest summer styles from Spain.

Springfield is all about “elevated casual,” according to Cris Agloro, SSI Merchandise Manager for Springfield. This season, the Icons Collection is focusing on minimalist, clean looks alongside washed-effect designs. On the runway, this translated to preppy pieces for men, and for women, boho chic looks and toile de jouy style prints.

As for Women’secret, the lingerie and loungewear brand focused on things you can wear at the seaside: the Hibiscus collection showed robes and wraps in bold leopard and subdued floral prints, as well as chic black and white staples, tempered by warm yellows.

Tendam was previously named Grupo Cortefiel, and has its foundations as a haberdashery at Romanones Street in Madrid in 1880, and a shirt factory in the same city in 1933. It came out with its first brand, its former namesake Cortefiel, in 1945. The company changed its name from Grupo Cortefiel to Tendam in 2018. In a tweet from its account @TendamRetail announcing the name change, they said, “Our new name is a reflection of a new impulse to the company that we were, are and always will be.”

The group has several brands, numbering 11, and four of them are in the Philippines: Women’secret, Springfield, Cortefiel, and Pedro del Hierro. Of these, all brands are available in the Philippines through the SSI Group, save for Pedro del Hierro which is available in Rustan’s, SSI’s sister company. The brand representatives did not give any indication that Tendam is bringing in any of the other brands to the Philippines soon.

According to Tendam’s website, it is present in 80 countries with 1,836 points of sale, 37 of them in Asia. Its strongest market is still its home continent of Europe, with 1,348 points of sale there.

Speaking of which, we asked Ms. Agloro how the clothes fit into the Philippines’ record-breaking heat this season. “Summer in Spain is very similar to our summer here. Super hot. You’ll see that our linen pieces, especially from Springfield, are perfect for the Filipino summer.”

Nancy Chua, SSI Merchandise Manager for Women’secret, meanwhile, said, “It’s summer all-year-long for us.” — JL Garcia

Filinvest Land plans P25-B residential projects

GOTIANUN-LED property developer Filinvest Land, Inc. (FLI) has announced plans to introduce residential projects worth P25 billion this year.

“(We) aim to optimize our land bank and sustain our strong market presence in cities where we are already present,” FLI President and Chief Executive Officer Tristaneil D. Las Marias said during the company’s virtual annual stockholders meeting on Friday last week.

Some of the residential projects eyed to be launched this year are located in Cavite, he added. These include the company’s first mid-rise condominium project in Bacoor, as well as new developments for its 94-hectare The Wood Estates residential township in Trece Martires.

“We will upgrade our Wood Estates… with commercial shops, transport terminals, and affordable low-rise condo developments,” he said.

Mr. Las Marias also announced that FLI will launch the 11.4-hectare Iloilo Centrale residential township in Leganes, Iloilo, which will include supermarkets, daycare centers, public transport terminals, a park, and a football field.

“Iloilo Centrale will also offer our first walk-up project which will provide very affordable condo units located in a complete residential setting that provides social spaces, outdoor sports, activity event areas, and modern amenities at very affordable prices,” he said.

“We have also kept a balanced geographical portfolio for our residential business by exploiting residential business opportunities in key cities in Visayas and Mindanao,” he added.

He said that FLI will open several mid-rise condo buildings in Dumaguete, Zamboanga, and General Santos.

The company also plans to launch taller condo buildings in Cebu and Davao to “match the growing market potentials in these highly urbanized cities and optimize land bank values.”

“We have also seen the huge unserved demand in housing. We plan to continue to offer affordable housing projects in Rizal, Cavite, Laguna, Bataan, Zamboanga, and other second class cities in Visayas and Mindanao with the intent to make housing accessible to as much government and private workers within the mass market income bracket and help more Filipinos build their dream,” he said.

FLI is also planning to complete nine additional ready-built factories at its Filinvest Innovation Park in the next two years. The planned factories will span 12,500 square meters each.

Last month, FLI completed the turnover of a ready-built factory to StB GIGA for the production of lithium iron phosphate batteries.

The Filinvest Innovation Park is within the Filinvest New Clark City mixed-use township, which is part of the 9,450-hectare New Clark City development in Capas, Tarlac.

“We also have about 55 hectares of land available for long-term lease already built at the moment,” he said.

“Also in the pipeline is the development of a mixed-use commercial and several public open spaces blocks, which will support the needs of industrial locators, offices, and schools within the national government administrative center beside our New Clark City estate project,” he added.

FLI saw a 30% jump in its attributable net income to P3.77 billion last year as revenue and other income surged by 13% to P22.55 billion.

FLI shares were last traded on April 19 at 66 centavos apiece. — Revin Mikhael D. Ochave

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