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BDO Unibank, Inc.: Notice of 2024 Annual Stockholders’ Meeting

BDO Unibank, Inc. will hold its Annual Stockholders’ Meeting on April 19, 2024, Friday, at 2:00 p.m., at the Forbes Ballroom 1, Third Floor, Conrad Manila, and will be livestreamed for stockholders participating remotely.

 

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Filipino expert on psychology of startup teams recognized by Thinkers50 Radar

Martin Gonzalez

Martin Gonzalez, an expert on the psychology of startup teams and creator of Google’s Effective Founders Project, a global research program that uses people analytics to uncover what makes the best startup founders succeed, was recently recognized by the Thinkers50 Radar.

Every year, the Thinkers50 Radar list identifies 30 individuals across the globe with breakthrough ideas predicted to make an important impact on management thinking in the future. Dubbed by the Financial Times as the “Oscars of management thinking,” Thinkers50 tags itself as the world’s most reliable resource for identifying, ranking, and sharing current leading management ideas.

“I feel honored to be recognized by this year’s Thinkers50 Radar. It underscores the critical role of building healthy, resilient teams in driving innovation and scaling businesses,” Mr. Gonzalez said.

Mr. Gonzalez, the only Filipino on the 2024 list alongside management scholars and published authors across America, Europe, and Asia, was recognized for his research anchored on the notion that most startups fail not because of fund mismanagement, bad product timing, or bad product design but because of people problems.

Further dissecting this idea, Mr. Gonzalez, together with the co-founder of the Google for Startups Accelerator Josh Yellin, is launching a book entitled The Bonfire Moment, where they discuss the common traps and challenges that hinder the growth of startups. Messrs. Gonzalez and Yellin also conduct one-day workshops of the same name with companies of various sizes worldwide to help founders effectively navigate these traps.

In the Philippines, Mr. Gonzalez continues to work as a startup advisor to the portfolio companies of Kickstart Ventures, a corporate venture capital (CVC) firm wholly-owned by Globe Telecom, and has recently become a venture partner at Kaya Founders, a VC firm that backs industry-shaping digital companies. He has also shared his expertise in startups and people development at DigiCon, People Management Association of the Philippines (PMAP), and IdeaSpace.

Mr. Gonzalez was also recognized by The Aspen Institute as a First Movers Fellow last year, the first Filipino to achieve this recognition, for his pioneering work at Google. He is currently a principal of organization and talent development at the world’s leading search and advertising company, working with senior leaders to shape team culture, develop their people, and expand their leadership.

Apart from Google, he is a frequent lecturer on entrepreneurship, organization design, and people analytics at Stanford, Wharton, and INSEAD.

Head over to www.bonfiremoment.com to learn more about Mr. Gonzalez’s insights on why building teams is essential to startup success.

Airline fuel surcharge unchanged for April

PHILSTAR FILE PHOTO

THE Civil Aeronautics Board (CAB) has retained the airline fuel surcharge at Level 6 for April.

The Civil Aeronautics Board has announced that the airline fuel surcharge, which is added to the base fare, will remain at Level 6 next month.

At Level 6, the domestic passenger surcharge ranges from P185 to P665, while the international surcharge ranges from P610.37 to P4,538.40.

“Airlines wishing to impose or collect fuel surcharge for the same period must file its application with this office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” CAB Executive Director Carmelo L. Arcilla said in an advisory. 

A fuel surcharge may be collected by airlines based on the movements in jet fuel prices, based on a benchmark known as MOPS (Mean of Platts Singapore).

The applicable conversion rate for April is P56.01 to a dollar, CAB said.

Flag carrier Philippine Airlines (PAL) said it will focus on-time performance as it expects higher passenger volume next month. 

“Passenger loads remain high amid the current peak travel season. We are grateful for the continued customer loyalty and support. We remain focused on maintaining our on-time performance and schedule reliability,” PAL Spokesperson Cielo C. Villaluna said in a Viber message.

BusinessWorld also reached out to Cebu Pacific and AirAsia but has yet to receive comments as of the deadline. — Ashley Erika O. Jose

Villeroy & Boch opens new showroom

THE COLLARO COLLECTION

GERMAN ceramics manufacturer Villeroy & Boch launched its new showroom at their distributor Focus Global, Inc.’s headquarters at the Twenty-four Seven McKinley Building in Bonifacio Global City (BGC) on March 21. The showroom shares space with Dornbracht, a German manufacturer of bathroom fittings and fixtures. Both brands had interactive showcases that allowed guests to turn on taps and test the bathtubs, showers, faucets, and toilets they offer.

The brands’ selections were offered up for testing through bathroom setups in an event called “Odyssey: The Artistry of a Sensory Bathroom.” Five bathrooms were decorated to give the feel of real homes, using lights, sound, and even scent (through diffusers and scented candles).

Antao, one of Villeroy & Boch’s newest collections, draws inspiration from nature, capturing elements such as the gentle shape of dewdrops. This resulted in sinks and bathtubs in a very distinct dewdrop shape, and are executed in matte earth tones. The Venticello collection showcases rimless water closets, asymmetrical sink cabinets, and clean designs, showing off sophistication. A highlight was the Hommage collection, inspired by the opulent lifestyle of the Regency era in England (think the late 1700s to the early 1800s). This collection combines classic design elements, featuring standalone tubs with metal feet, and toilet seats made of luxurious wood. The Collaro collection has a delicate lineup showing slum washbasins and acrylic wall-attached tubs that give a cozy feel. To show off this line, they decorated this bathroom with flowers. The minimalist Subway 3.0 collection shows off slim shapes with surprising space allowances (such as in their cabinets and vanity units), but also new technology for their toilets. BusinessWorld was taken around the exhibition and we were shown this collection’s toilet, with a powerful vortex flush (it wasn’t activated that day, but the shape of the toilet allowed us to see how water would travel within the unit).

“Villeroy & Boch has been creating premium bathroom products for 275 years now. We are proud to continue showcasing the brand’s long-time commitment to excellence through our well-crafted products here in the Philippines,” said Hong Li, Managing Director of Villeroy & Boch APAC in a statement. Villeroy & Boch celebrated its 275th anniversary last year, tracing its origins back to 1748 in the Holy Roman Empire. It also has a Dining and Lifestyle selection, with a separate showroom at Mitsukoshi BGC (and distributed in the Philippines through another partner). Meanwhile, Jin Long, Regional Sales Director of Dornbracht SEA, said, “In essence, Dornbracht is more than just a manufacturer of luxury fittings; it is a symbol of excellence, craftsmanship, and vision. “We’re hoping that this collection can remind our current and future customers why the bathroom is a self-care space worth investing in.”

The showroom is on the 11th Floor of Twenty-four Seven McKinley Building. — JLG

Growth drivers

XB100-FREEPIK

In a meeting among economists in a foreign embassy, former Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla expressed his concern that the Philippines lacks a growth driver that it had in the past years with the business process outsourcing (BPO) industry. BPO revenues went from a few million in 1992 to $35 billion last year, contributing greatly to dollar revenue and GDP growth.

What could the next growth drivers be?

Mining is one candidate. It’s often mentioned considering the world’s need for critical minerals like copper, nickel, and lithium in the green transition to EVs (electric vehicles). The Philippines is one of the most mineralized countries in the world. As one Australian government paper noted, “The Philippines is one of the world’s most richly endowed mineral resources countries. It is estimated to have about $1 trillion worth of untapped copper, gold, nickel, zinc, and silver reserves. Only 5% of these reserves have been explored, and 3% are covered by mining contracts.”

The country still has a long way to go to fully exploit its mining potential. There are many noisy opponents to mining, from the Catholic clergy to environmentalists, leftists, and even LGU executives who believe they aren’t getting a fair share of the mining firms’ revenues.

The uncertain tax environment is also a deterrent to mining investment. The Department of Finance has recently come out with a mining tax proposal that will enable the government to get its fair share of revenues, based on profitability or net margin. If passed, the mining tax bill can give some certainty to potential investors and help lure more investments in mining.

Also, it’s unfortunate that exploitation of natural resources was left out in Congress’ resolution to remove foreign ownership restrictions in the Constitution. Mining is capital-intensive and there’s just not enough Filipino capital to exploit our abundant mineral resources.

Tourism is another candidate. We have had problems promoting tourism even though our beaches, mountains, and other natural wonders are far superior to those of Thailand. Lack of infrastructure, peace and order, poor healthcare facilities, and shenanigans by Immigration and airport personnel in our airports have discouraged more tourists from coming in. We don’t even have a world-class arena to host a Taylor Swift concert even if she could come. The Philippine Arena is a traffic magnet during concerts — just ask those who attended the Cold Play concert.

However, there is hope. NAIA will be handed over to a private operator at last and San Miguel Corp. has promised to modernize it even as it’s building a bigger one in Bulacan. Clark International Airport can easily expand and will be connected by railway to Metro Manila by 2028.

With the right policy mix and infrastructure investments, tourism can replace BPOs as a growth driver and dollar earner.

I have always been a booster of the forestry industry. The Philippines has a comparative advantage in forestry because it’s in a tropical zone. The Philippines can produce 100 cubic meters of timber per hectare compared to countries in the temperate zone like Finland where the output is anywhere from five to 15 cubic meters per hectare. Experts figure that the forestry industry can contribute as much as 2% of GDP. (In Finland, it’s 8%.)

Forest production or tree farming has enormous potential benefits, not just to the furniture and wood industries, but to climate change mitigation, energy production, water management, agriculture, carbon capture, and so many more. It will even boost tourism because forest trekking and forest bathing can be promoted as part of adventure tourism.

However, the potential of the forestry industry can be realized only when investors in tree plantations are given secure property rights because it takes so long to grow a tree to maturity (the earliest would be 13 years for fast-growing species). In some cases, especially for hardwood, it takes around 20 years, by which time, a concession agreement under the present rules would expire. The present rules only allow for 25 years, extendible for another 25 years, but the investor is at the mercy of the Department of Environment and Natural Resources.

This is why the Foundation for Economic Freedom is proposing a bill that would: a.) define planted trees as personal property. In other words, the law will treat planted trees like any other commercial crop, such as cabbage or potato. This will exempt tree farms from arbitrary log bans, allow foreigners to invest, and make them bankable; and, b.) consider trees as renewable resources, and not depletable natural resources. Since planted trees are not natural resources, these would exempt them from the 25-year rule.

Another growth driver could be defense industries because geopolitics is presenting the Philippines with an opportunity to develop Philippine-based defense industries. Japan, for example, would be doubling its defense spending in the next few years. Europe and the US are also hiking defense spending. We could present ourselves as part of the secure and friendly supply chain to our allies’ defense requirements, from supplying semiconductors for drones to uniforms.

Cultural and service exports could be another winner. However, in excluding mass media and the practice of professions in the liberalization of foreign ownership restrictions in the Constitution, Congress may have handicapped our ability to do cultural and service exports.

We could be exporting culture or soft power like what South Korea is doing. After all, we have much better singers, dancers, musicians, and the like. However, access to capital and technology is critical. We can’t access foreign capital to develop our cultural industries because investment in those industries could be interpreted as a violation of the Constitution.

We could also be exporting services, from healthcare to engineering. However, access again to capital and technology is constrained by the Constitution, which limits the practice of professions to Filipino citizens. Just getting a foreign faculty member to teach in a local university requires so many permissions. We need to open ourselves up to global talent if we are to export services. The US can “export” the NBA because the latter welcomes talent from anywhere in the world, whether Greece (Giannis Antetokounmpo), Serbia (Nikola Jokic), or China (Yao Ming).

There can be no shortage of growth drivers for the Philippine economy, given political will and the removal of binding constraints. Even agriculture, which contributes a mere 10% to GDP, can become a growth driver if the binding constraints of land fragmentation and agricultural protectionism are seriously tackled. Unfortunately, agriculture is one area where the administration is failing to address binding constraints.

Overall, the administration is moving in the right direction by promoting investments through liberalizing foreign investment restrictions and increasing access to markets (RCEP, Free Trade Agreements or FTAs with South Korea, and possibly Canada and the EU.) A more investment-friendly climate would drive investments in these growth sectors.

 

Calixto V. Chikiamco is a board director of the Institute for Development and Econometric Analysis.

idea.introspectiv@gmail.com

www.idea.org.ph

Exporters betting on ‘robust’ overseas market for PHL salt

PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINE Exporters Confederation, Inc. (Philexport) said that it is hoping that the Philippine Salt Industry Development Act will unlock the overseas market potential of Philippine salt.

In a statement, Philexport President Sergio R. Ortiz-Luis, Jr. said Republic Act (RA) No. 11985 “will help the salt industry recover and encourage small-scale sea salt producers forced out of business to resume production.”

“It is also our hope that this law will make possible once again robust exports of salt from the Philippines,” Mr. Ortiz-Luis added.

The exporter organization said salt exports declined to $67,894 in 2020 from $190,029 in 2019.

“World export of salt in 2021 exceeded $2.59 billion, indicating vast potential for Philippine exports,” the group said.

The group added that the law lifts the requirement for all Philippine salt to be iodized, which was mandatory under the An Act for Salt Iodization Nationwide Law or the ASIN Law, which was designed to eliminate iodine deficiency disorder.

“But while with good intentions, the ASIN Law seriously affected sea salt production and exports and made the Philippines dependent on imports, with the country bringing in about 550,000 metric tons of salt every year or 93% of its salt requirements,” Philexport said.  “This is despite the country’s 36,000 kilometers of shoreline, the fifth longest shoreline in the world,” it added.

It said that Philexport, together with other business groups, had been asking for natural sea salt to be exempt from the mandatory salt iodization under the ASIN Law.

Under RA 11985, a salt industry development roadmap will be drafted to ensure the revitalization of the salt industry. “(These) are aligned with the objectives and continued implementation of the ASIN Law,” the Philexport said.

Aside from the roadmap, the law will also create a Salt Council which will ensure the implementation of the road map and accelerate the modernization and industrialization of the salt industry. — Justine Irish D. Tabile

Breaking barriers women encounter in entrepreneurship

Photo by our-team on Freepik

Entrepreneurship, by its very nature, entails innovation, risk-taking, and the creation of value, all of which are key drivers of economic growth and development. It was the entrepreneurial mind that created the steam engine, mechanized industry, and the internet. So, it not only makes sense for a society to encourage entrepreneurs, but enable, support, and empower them.

Unfortunately, there is a troubling disparity in the number of women who become entrepreneurs compared to the men. According to data compiled from the We-Data project of the Women Entrepreneurs Finance Initiative (We-Fi) from 2014 to 2020, all over the world the share of female entrepreneurs tends to be lower than the share of male entrepreneurs in the three categories: the owners of limited liability companies, directors of limited liability companies, and sole proprietors.

In fact, in all 81 economies in the study, women represent on average 1/4 of new business owners and directors while men stand for 3/4 of new business owners and directors.

“The rates of female participation for sole proprietors are slightly higher. The average share of female sole proprietors is about 1/3 compared to 2/3 for the average share of male sole proprietors. In a few rare instances, there are more female sole proprietors than male sole proprietors. This is the case in Austria, where women represented 54% of new sole proprietors in 2020,” a report published by the World Bank said.

However, the report noted that sole proprietorship typically signifies small scale, low-profit and low-risk businesses, and notably does not protect personal assets of entrepreneurs as well as limiting them in their expansion.

“While this type of company can be a good way to enter formal entrepreneurship, it can prevent women from growing their business,” the report said.

An economic issue

When comparing the percentage of women in the entrepreneur population to the adult population, there are bigger disparities. In Somalia, despite comprising 50% of the adult population, women only represent 2% of new business directors. These gaps highlight deeper societal inequalities and access barriers to institutions, often exacerbated by weak rule of law.

In this context, gender inequality is not only a moral and social issue, it becomes an economic one. According to a 2015 study by McKinsey Global Institute (MGI), the global economy could expand by as much as $12 trillion by 2025 by closing gender gaps in work and society.

“A ‘best in region’ scenario in which all countries match the rate of improvement of the fastest-improving country in their region could add as much as $12 trillion, or 11%, in annual 2025 GDP (gross domestic product),” the study found.

“In a ‘full potential’ scenario in which women play an identical role in labor markets to that of men, as much as $28 trillion, or 26%, could be added to global annual GDP by 2025. MGI’s full-potential estimate is about double the average estimate of other recent studies, reflecting the fact that MGI has taken a more comprehensive view of gender inequality in work.”

Needless to say, an economy cannot operate at its full potential if half of its population cannot fully contribute to it. Women all over the world only contribute to 37% of the global GDP, according to World Bank estimates.

A bigger loss is that of opportunity. When women become entrepreneurs, they not only contribute to the overall economic output but also bring unique perspectives, insights, talents, and solutions to the forefront, enriching the business landscape and fostering diversity and inclusivity.

Social impact

Moreover, women’s entrepreneurial activity goes beyond economic considerations; it has broader societal implications. Women-owned businesses often prioritize social impact, community development, and sustainable practices, thereby contributing to social welfare and environmental sustainability.

Researchers at Columbia Business School and Carnegie Mellon University found that women are more motivated by messages about social impact than by those about money, while men are more motivated by messages about money. This was determined by looking at how entrepreneurs responded to messages about money and social impact.

“Our findings suggest that it’s important to have a broader conceptualization of the motivations of innovative entrepreneurs that focuses on motivations beyond profit, and that accounts for fundamental dimensions of heterogeneity such as gender and culture,” Jorge Guzman, assistant professor of management at Columbia Business School, who coauthored the study, said. “The results can inform interventions that foster innovative entrepreneurship policies and programs.”

There is also the importance of representation. Women entrepreneurs serve as role models and catalysts for change, inspiring other women and girls to pursue their entrepreneurial aspirations, challenging traditional gender norms, and empowering communities.

Barriers

But what bars equality? One of the most significant ones is education. The We-Fi report found that there are lower secondary education completion rates for women compared to men, particularly in regions like South Asia and Sub-Saharan Africa, where business entry rates are also low.

“In South Asia, 60% of men have at least some secondary education, compared to 40% of women. In Sub-Saharan Africa, 39% of men have at least some secondary education, compared to 29% of women. South Asia and Sub-Saharan Africa tend to have the lowest levels of business entry — with a median new business density below 1 new limited liability company per 1,000 adults,” the report said.

“Economies where women have more years of education also have relatively higher numbers of new female entrepreneurs, at the level of both business owners and sole proprietors.”

Access to technology, including smartphones and mobile internet, is another crucial determinant, with a persistent gender gap hindering women’s entrepreneurial endeavors, especially notable amid the COVID-19 pandemic, where digital connectivity became paramount for business operations.

According to the study, about 327 million fewer women than men have a smartphone and can access the mobile internet worldwide. Women are 26% less likely than men to have access to a smartphone.

Both financial and digital literacy are essential to doing business post-pandemic, and governments all over the world can stand to benefit from a stronger push to promote them.

More difficult to address — and perhaps more significant — are the invisible barriers. Ingrained cultural beliefs and invisible barriers perpetuate gender inequality, with biases against women still prevalent, hindering their full participation in the economy.

“Economic bias still exists in many economies. Overall, 40% of men and women feel that men make better business executives and that men have more right to a job when jobs are scarce in 2020,” the report found.

“This is part of the invisible barriers that women face in achieving equality. Measuring those barriers and quantifying the various sides of the equality gap help design better policies and provide a level-playing field for all.”

Women entrepreneurship in the Philippines

Through the implementation of multiple financial inclusion policies that prioritize technology and entrepreneurship, the Philippines has achieved significant progress toward gender parity and financial inclusion.

According to a study by the Asian Development Bank (ADB) titled “Measuring Progress on Women’s Financial Inclusion and Entrepreneurship in the Philippines,” as of 2020, the MSME sector numbered more than 950,000, the majority of which were owned by women. This advancement of women’s empowerment and financial inclusion are bolstered by digitization and digital finance. However, it is not without its problems.

After market access, the second biggest obstacle to MSMEs’ expansion was their lack of access to cash and credit. Due to the traditional assessment procedures that underpin financial institution services, small firms, and particularly women-owned and micro-enterprises, still face challenges in obtaining financing.

Compared to one-third (37%) of men-owned MSMEs, more over half (58%) of women-owned MSMEs identified difficulty obtaining financing. Because they believe that the application procedures, paperwork needs, and costs are more complicated than those of men-owned MSMEs, women-owned MSMEs are less likely to apply for funding.

The use of financial services and products by male and female entrepreneurs also differs significantly based on gender. According to the ADB data, since personal accounts are used by most women-owned MSMEs for business transactions, they have limited access to other financial services.

Comparing them to men-owned MSMEs, 39% of male entrepreneurs utilize business or merchant accounts, while only 17% of women entrepreneurs do. Moreover, when compared to their male counterparts, it was found that female entrepreneurs utilize fewer banking services for a variety of accounts and associated services.

“Awareness and comprehension of the benefits associated with opening a business or merchant account need to be enhanced for women to deepen their use of financial services, and strengthen and grow their businesses,” the ADB report said.

“Only 4% of WMSMEs (compared with 14% of men-owned MSMEs) use invoice financing and 9% had a business loan (compared with 12% of men-owned MSMEs). However, 27% of WMSMEs save for emergencies versus 19% of men-owned MSMEs.”

A lot of MSMEs continue to conduct business using personal accounts. According to focus group discussions from the study, micro and small businesses believe that applying for business loans in their own names is simpler, quicker, and less expensive than utilizing business accounts.

There is also the fact that less than 20% of respondents who operate small businesses said they have used business loans, overdrafts, invoice financing, or letters of credit. This suggests that a significant fraction of small enterprises is “banked but not yet banking.”

Finally, despite the fact that digital financial services (DFS) are essential to financial inclusion and women’s empowerment, there remains a significant gender gap in the use of these technology and services: While 44% of male-led MSMEs adopted such services, just 28% of female-led MSMEs do the same.

Addressing such issues will be a long and arduous process for the government and the Philippine financial sector. However, there are some low-hanging fruit that the ADB recommended picking first.

“Having available and up-to-date statistics on MSMEs segregated by gender remains the main challenge in developing and implementing effective policies and strategies to support MSMEs in general and WMSMEs in particular,” the ADB pointed out.

“As of 2022, there are no reliable data or information on WMSMEs, which hampers the understanding of the WMSME market size and use of financial products and services. Data on MSMEs include information on the type of enterprise, sector, and regional distribution, but are not sex-disaggregated.”

As data on MSMEs could be easily collected when firms register for the required permits (barangay, DTI, SEC, etc.), this simple process would do a lot to help strengthen efforts to address the gender gap.

Bolstering digital financial infrastructure could also provide a large impact in the pursuit of financial inclusion and gender parity, as less than a third of all women entrepreneurs benefit from digital financial services.

“Social networks play an important role in exchanging information and experiences, particularly for WMSMEs. Awareness-raising campaigns on digital financial services and platforms supported by the government and its agencies foster trust and confidence in DFS,” the report said.

“The goal is to enable female entrepreneurs to obtain and use the services, know the benefits of using them, and be confident in using them, enabling them to make informed financial decisions. The government needs to invest more in education and awareness-raising initiatives and leverage community structures to support such campaigns and programs. All players need to work closely together, ensuring synergies and complementarity to foster the use of financial products and services, aiming at increasing the financial inclusion of MSMEs, particularly WMSMEs.” — Bjorn Biel M. Beltran

Ports repurposing for offshore wind may cost $80 million — DoTr

THE Department of Transportation (DoTr) said repurposing ports for offshore wind development will cost around $80 million.

“Right now, we are doing the freight flow analysis that will eventually lead to a roadmap of ports development all over the Philippines,” Elmer Francisco U. Sarmiento, Transportation undersecretary for the maritime sector, said on the sidelines of a ports and logistics forum last week. 

The DoTr has started the study, Mr. Sarmiento said, adding that the agency expects to release the roadmap for ports development in the next two to three years.

“We have started the [freight flow analysis], maybe it will be completed [soon] hopefully. Our roadmap for port development, maybe in two to three years,” he said.

Freight flow surveys are part of the study to determine if ports are suitable sites for offshore wind development.

The Department of Energy (DoE) and the DoTr are leading agencies tasked in ports repurposing to advance offshore wind development in the Philippines. 

Ports will play a crucial role in offshore wind development as their supply chains, infrastructures and other components will be transported from mainland to offshore sites.

“We are studying offshore port development. It is very expensive, our estimate is that it goes up to $80 million,” he said. 

The DoTr said they have identified at least nine potential ports for the offshore wind project. These are: Philippine National Oil Co. Energy Supply Base Port, Mabini, Batangas; Port Irene, Cagayan; Iloilo Commercial Port Complex, Iloilo City; Pulupandan Seaport, Negros Occidental; Port of Currimao, Ilocos Norte; International Container Terminal’s Bauan International Port, Bauan, Batangas; Calabanga Provincial Port, Camarines Sur; and Bulalacao Port, Mindoro Oriental. 

Earlier, the Energy department said it was still studying recommendations for candidates as the 10th port for offshore wind development.

To date, the Energy department has awarded a total of 82 offshore wind energy service contracts, with a potential capacity of 63,000 megawatts (MW) or 63 gigawatts (GW). 

Based on the Philippine Offshore Wind Roadmap, the country has an estimated potential of 178 GW in offshore wind resources. 

The Philippines is expecting its first offshore wind project to be completed by 2028, with at least 10 offshore wind projects at a capacity of more than 6,000 MW expected to generate power in the next four years.

Offshore wind resources are expected to help the Philippines reach its goal of increasing the share of renewables to 35% by 2030 and 50% by 2040. — Ashley Erika O. Jose

PSALM corporate life should be extended — Finance chief

FINANCE SECRETARY RALPH G. RECTO — PHOTO FROM DEPARTMENT OF FINANCE FACEBOOK PAGE

THE corporate life of state-run Power Sector Assets and Liabilities Management Corp. (PSALM) should be extended as it still has debts and assets, Finance Secretary Ralph G. Recto said.

“I think it should be extended. Marami pa ring debts ang PSALM, marami pang dapat ibentang assets (PSALM still has many debts, and there are still many assets that should be sold),” Mr. Recto said on the sidelines of the induction of the new officers of the Economic Journalists Association of the Philippines last week.

He said that PSALM’s corporate life may possibly be extended for another 25 years.

PSALM was created under the Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001, to lead the privatization of generation and transmission assets of the National Power Corp. and the National Transmission Corp.

Its corporate life was originally due to expire in June 2026 or 25 years after the effectivity of EPIRA. Should PSALM be dissolved, all of its assets and liabilities will revert to the National Government.

Assets under PSALM include the 796.64-megawatt Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna.

The public bidding is set to be held in the second semester of 2024.

“We could probably generate anywhere from P50 billion to P100 billion. That will help plug our deficit for next year,” Mr. Recto said.

The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer scheme run by independent power producer CBK Power Co. Ltd., which will expire in 2026.

He said that the government is also open to privatizing the Agus-Pulangi hydropower complex in Mindanao.

“We’re open to privatizing that as well. Of course, we have to get the consent of the other stakeholders,” he said, adding that it should also be rehabilitated first.

He also said that power “is always in the strategic investment priorities plan.” — Sheldeen Joy Talavera

Quicksilver

Executives and guests of the Autohub Group signal “25” during the company’s recent anniversary celebration held at the Bonifacio Global City, Taguig. — PHOTO BY KAP MACEDA AGUILA

The Autohub Group turns 25 by adding a premium EV brand to its portfolio

By Kap Maceda Aguila

AT THE DOORSTEP of the new millennium, Autohub came into being, and lost no time expanding its footprint from one dealership (Ford) into a considerable stable of brands. Twenty-five years hence, the Autohub Group has 22 companies affiliated with it, 18 vehicle brands in its distributorship or dealership ambit, and a further 28 car accessory marques whose products it exclusively sells here.

“It’s been 25 years, and a wonderful experience,” declared Autohub Group President Willy Q. Tee Ten in an exclusive interview with “Velocity” on the sidelines of the company’s anniversary bash and display at the Bonifacio Global City (BGC) in Taguig. “We’re very happy with what we’ve been able to accomplish — from just one dealership to where we are today. We’re super happy, we’re super proud, and it’s a humbling experience as well to be part of the Autohub Group,” he continued.

Aside from featuring all of its affiliated brands at the BGC Central Square recently, Autohub also seized the opportunity to announce its signing of the distributorship agreement with Zeekr — a premium electric vehicle marque under the Zhejiang Geely Holding Group. In a release, Autohub said, “The partnership marks a significant milestone in the expansion of Zeekr in the Southeast Asian market. Moreover, it underscores Autohub and Zeekr’s shared vision of a cleaner and greener future through high-quality and eco-friendly transportation options for Filipinos.”

Added Zeekr Vice-President Chen Yu, “The Philippines represents a key market for Zeekr, and we believe that the Autohub Group’s strong market presence and commitment to sustainability make it the perfect partner to help us bring our innovative products to Filipino customers.”

Revealed Mr. Tee Ten to “Velocity,” “When I learned about the Zeekr brand, I went to the factory, and test-drove its vehicles. They have fantastic cars. There was no doubt: We wanted to be the distributor of Zeekr in the Philippines. We wanted to negotiate with them and (secure) pricing, allocation, and everything else. The brand is so beautiful, and we are so happy that we got it. I want to be the ambassador of Zeekr here in the country.”

Autohub, he continued, is a “big advocate” of electric mobility. “We’re very happy that the government has come out with EO12 (which temporarily modifies the rates of import duty on electric vehicles, parts, and components under Section 1611 of Republic Act No. 10863 or the Customs Modernization and Tariff Act) to exempt electric vehicles from duties and excise tax. I hope they could do the same thing for electric scooters as, right now, scooters have taxes and duties, and we’re strongly lobbying to exempt them. If we want to help the environment, we should give the same incentives to four wheels as well as two wheels.”

Autohub revealed that the Zeekr 001 Standard, Zeekr 001 Flagship, Zeekr X Premium, and Zeekr X Flagship “will all be available in the Philippine market very soon,” and the Zeekr 009 will be launched by the third quarter of the year. No pricing has been announced.

“As far as the future of Autohub is concerned, we’re always looking for brands to help the business and our brand image,” maintained the executive. “As long as there are good brands out there we’ll always be open to explore and see if they can be part of the Autohub family, and I hope we can also be part of their family as well. The possibilities are endless. We just continue to look and be aware of what’s going on.”

He concluded, “I think that the government has to take the lead in rolling out public charging stations. It’s not going to be a quick growth; it will happen step by step. The government shouldn’t wait for the consumer as the consumer shouldn’t wait for the government. The two should work hand in hand to assure the growth of the EV sector in the Philippines.”

For more information about Zeekr and Autohub Group, visit http://www.zeekr.ph/ and www.autohubgroup.com or call 0920-955-7999 or 0917-597-3322.

Versace F/W 2024 is for the good girl with a wild soul

“THIS collection has a rebel attitude and a kind heart. The woman is a good girl with a wild soul. She is prim but sexy. Don’t mess with her! The man is her soulmate, a shy genius. They are breaking the rules to make new ones. The clothes take the codes of contemporary formal tailoring and disrupt them with cut, drape, and embellishment. The collection focuses on pure lines, and innovative fabrics, considered wildness. This is us. This Is Versace!,” said Donatella Versace in a statement.

The F/W 2024 was launched a month ago at Milan Fashion Week. Tailoring is disrupted with drape, print is deconstructed and distorted into embroidery, jacquard and hidden linings, and Atelier Versace fabrics are shredded into new luxurious tweed.

The House’s power tailoring is pushed to extremes. Proportions shift from maxi-length in duster overcoats and tailored dresses, to cropped, prim spencer jackets and miniskirts; hourglass jackets with strict tailored pants, women’s broad-shouldered tailoring with stirrup leggings, men’s wide leg pants with shrunken shirts. Tuxedo tailored pieces, including a modern jumpsuit, have long, strict silhouettes. White pointed swallow tail collars accent women’s light chiffon shirts and dresses. Atelier Versace techniques inform the super refined and molded structure of bustier tops and minidresses. Leather is draped to feel spontaneous but precise in dresses and skirts and for men is tailored in bonded leather or in the softest oversized pants.

Signature metal mesh is crafted in a new lighter weight for ready-to-wear and layered over distressed denim. Details include golden Medusa buttons, jewel embroidery, liquid micro sequins, and stacked belt buckles. A rich lipstick red is used full-on against black. Shades of moka, and cocoa browns also interplay with foundational black. The collection’s Wild Barocco appears as a print, knitwear, jacquards and embroidery. It gives an internal opulence to the lining of men’s tailored coats and jackets, and is folded over at cuffs and hems. For women it is in stirrup leggings, a bustier, or an off-shoulder evening gown with a high leg slit.

Atelier Versace pieces demonstrate the synergy between the Atelier and ready-to-wear. Column gowns in metal mesh are draped at the waist in new volumes. An embroidery of crystals, crystal chain, and metallic thread becomes an intricate net. An Atelier shredded tweed is meticulously hand-embroidered from strips of chiffon, tulle, silk organza, and crystal and used for men’s and women’s.

A new nappa plongé leather introduced for bags has a feeling of rich, inherited softness. Kleio, a new Medusa ’95 crossbody bag, is pillow-like in appearance and feel with a contrast between the soft leather and the metal of the House’s signature Medusa ’95. The Protea, a new shoulder bag, is folded in the same soft leather and worn extra-large, medium and small. Men’s Medusa Biggie and Cargo bags are updated in seasonal colors and material finishes including faux pony hair.

Shoes are fierce or totally refined. The new Slice heel has a slim stiletto look from the side and impactful block from the back. Heritage Gianni Ribbons decorate Ballerina styles with embroidery, a leopard motif, or in tweed. Texano boots for both men and women scale-up to thigh-high and taper to a definitive point at the toe. Men’s Villa drivers are available in smooth leather or colorful shearling.

In the Philippines, Versace is exclusively distributed by Stores Specialists, Inc., and is located at Greenbelt 3.

‘Cha-cha’ dead in the water

FREEPIK

Our members of Congress have not learned from past failed initiatives to change the Constitution (also known as Cha-cha or Charter change). Every political administration after Corazon Aquino’s has attempted to do Cha-cha. And each attempt, resulting in heavy political costs, got nowhere.

In most cases, the Cha-cha project was engineered by the President or had their blessing, with the goal of extending term limits or consolidating power.

Fidel Ramos had a signature campaign or people’s initiative to amend the Constitution. It went by the name of PIRMA, the Filipino word for “signature” and which stood for People’s Initiative for Reform, Modernization and Action. Amid massive protests, the Supreme Court struck it down for having no enabling law.

Joseph Estrada coined another acronym for Cha-cha: CONCORD, which meant Constitutional Correction for Development. But Estrada’s term was short-lived, as people power forced him to resign.

Gloria Macapagal Arroyo (GMA) hatched the Sigaw ng Bayan (People’s Cry), which was similar to Ramos’ PIRMA. But the GMA’s version of the people’s initiative was likewise rejected by the Supreme Court.

Benigno S. Aquino III uncharacteristically entertained the idea of extending his term, which would have entailed amending the Constitution. But he retreated in the face of public backlash. On the other hand, then Speaker Feliciano Belmonte, Jr. filed a resolution to amend the Constitution’s restrictive economic provisions. But his resolution got stuck in the Lower House.

Rodrigo Duterte likewise pushed for Cha-cha to transform the form of government from a unitary system into a federal one. Like what happened in previous administrations, the Duterte initiative for Cha-cha ground to a halt.

Two salient reasons explain the failed attempts. First, the public or the electorate is deeply suspicious of any attempt to change the Constitution. The people believe that Cha-cha serves selfish, opportunistic interests of politicians to remain in power. Second, the senators — they have the power to block Cha-cha — consider it a threat to their political survival. The change in the form of government or an extension of the term of the president thwarts the ambitions of senators.

Because the people and a section of the elite see Cha-cha as a politically motivated act by opportunistic, selfish interests, the instigators use a smokescreen to conceal their real intent.

And that smokescreen has always been about having Cha-cha to remove or amend the Constitution’s restrictive provisions on the economy.

Recently, the House of Representatives voted overwhelmingly on final reading to pass the Resolution for the proposed economic amendments to the Constitution. But this is the same leadership and members of the House of Representatives that are plotting to change the Constitution to prolong their rule and keep political rivals out of power.

The strategy of the Cha-cha plotters is to conceal their agenda by using the restrictive economic provisions as the strawman. In the process, they broaden their coalition for Cha-cha. They win over an articulate segment of society that favors removing the Constitution’s economic restrictions. These are the big businessmen and investors allied with foreign capital, economic libertarians or free-marketeers, and conventional technocrats.

Note that this essay does not dwell on the soundness of economic decision-making with respect to lifting the restrictiveness of the Constitution. That would be a separate discussion. The long and short of it: Using a diagnostics approach to identify binding constraints, we conclude that the economic constraints found in the Constitution are not binding constraints.

Bernardo Villegas, the epitome of a pro-market, pro-business economist, gives a neat summary. The economic restrictiveness of the Constitution is not a binding constraint because, to quote a Shimbun story citing Villegas, “many sectors have been opened by the Public Service Act (PSA).” The PSA was passed during the Duterte administration, together with other liberalization reforms. That is to say, legislation has a clever and innovative way to surmount constraints associated with the Charter’s provisions.

Here’s the rub: Many of those who favor lifting the restrictive economic provisions are uncomfortable being associated with the political opportunists — the reviled trapos (traditional politicians) — doing Cha-cha.

The Cha-cha coalition is thus fragile. And it faces a highly organized, deeply committed opposition to Cha-cha, which covers a broad swathe of society.

Finally, the Senate is the trump card. A cursory political mapping shows that the Senate does not have the numbers to pass a Resolution for Cha-cha. All this makes Cha-cha with a partisan agenda a Sisyphean task.

The Cha-cha plotters seem to have won big as manifested by the vote in the House of Representatives: 288 in favor, eight against, and two abstentions. But that is some sort of Pyrrhic victory. Wait for the Senate response and the public’s collective action.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

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