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Suzuki Auto Silang set to rise

At the groundbreaking ceremony for Suzuki Auto Silang are (from left): Alpamile Auto Chairman Juanito Tionson; Suzuki Philippines (SPH) Sales Department Head and Assistant to the General Manager for Automobile Division Yasuki Nakagawa; NXT Mile Motors Chief Finance Officer Paul Tionson; Lalaan 1, Silang, Cavite Barangay Captain Romeo Toledo; NXT Mile Motors President Mark Tionson; SPH Director and General Manager for Automobile Division Norihide Takei; SPH Auto Service Department Head Rommel Cabanela; and Alpamile Auto Chief Finance Officer Dorothy Tionson. — PHOTO FROM SUZUKI PHILIPPINES

SUZUKI PHILIPPINES, INC. (SPH) and NXT Mile Motors recently broke ground on Suzuki Auto Silang, the second 3S dealership of the partnership.

In a release, SPH said that Suzuki Auto Silang “(promises) to offer the residents of Silang, Cavite, and neighboring areas convenient access to Suzuki vehicles and exceptional service.” The 2,000-sq.m. facility is located at Dragon Textile Compound, Gen. Emilio Aguinaldo Highway, Lalaan 1, Silang Cavite, and will feature a five-vehicle showroom and eight service bays.

“I’m deeply appreciative of everyone who has contributed to making this project a reality,” stated SPH Director and General Manager for Automobile Division Norihide Takei in his speech at the groundbreaking. “Let’s work together to ensure its success and eagerly await its opening day.” He thanked NXT Mile Motors for “the unwavering support and dedication,” highlighting a pivotal role in bringing Suzuki Auto Silang to fruition.

Suzuki Auto Silang is set to open in the first quarter of 2025. For more information, visit http://suzuki.com.ph/auto/. For updates on Suzuki, like the SPH Facebook account (SuzukiAutoPH, follow on Twitter (SuzukiAutoPH) and Instagram (@suzukiautoph).

Adidas CEO rules out Yeezy renewal after airport photo with Ye

ADIDAS chief executive officer (CEO) Bjorn Gulden said, “The contract has ended. We are selling off the inventory.” This after rumors started flying that when he and Ye (formerly Kanye West) appeared in a photo taken at an airport after the Super Bowl. — NEWS.ADIDAS.COM

ADIDAS AG chief executive officer (CEO) Bjorn Gulden ruled out the possibility of ever renewing the Yeezy collaboration with the rapper Ye, formerly known as Kanye West.

“The contract has ended,” Mr. Gulden said at a press conference Wednesday at company headquarters. “We are selling off the inventory.”

Speculation on the matter surfaced last month when Gulden appeared alongside Ye in a photo a couple of days after the Super Bowl. They inadvertently met in a Los Angeles airport before Mr. Gulden flew back to Germany, he said.

“It was not a meeting, there was no business discussion,” Mr. Gulden said. “If you meet him at an airport, I don’t know what you do. Do you hide? Or what do you do?”

Asked if there is even a remote chance that Adidas would ever seek to restart the Yeezy collaboration, Mr. Gulden said the answer is no.

Adidas canceled the partnership in late 2022 after Ye unleashed a string of antisemitic rhetoric on social media. At the time, Yeezy shoes were accounting for nearly half of the company’s profits. Adidas is still engaged in a legal dispute with Ye related to the split, Mr. Gulden noted. Bloomberg

Best practices in Universal Health Care

RUD0070-PIXABAY

Studies conducted within the last 10 years have shown that most Filipinos still rely on personal funds to pay for healthcare. Moreover, health-related spending, particularly for life-threatening diseases such as cancer, heart attack, or stroke that require long-term care and hospitalization, continue to lead many people into debt and poverty. Consequently, in order to avoid financially catastrophic spending and to “save money,” most Filipinos consult a doctor or seek hospital care only when their illnesses have become severe, according to the Healthy Pilipinas website.

The World Health Organization (WHO) defines universal health coverage as the provision to all people of access to the full range of quality health services they need, when and where they need them, without financial hardship. It covers the full continuum of essential health services, from health promotion to prevention, treatment, rehabilitation, and palliative care across the life course. The delivery of these services requires health and care workers with an optimal skills mix at all levels of the health system, who are equitably distributed, adequately supported with access to quality assured products, and enjoy decent work.

Protecting people from the financial consequences of paying for health services out of their own pockets reduces the risk that people will be pushed into poverty because the cost of needed services and treatments requires them to use up their life savings, sell assets, or borrow — destroying their futures and often those of their children, the WHO said.

Republic Act No. 11223, otherwise known as the Universal Health Care (UHC) Act of 2019, is the first law of its type in the Western Pacific region. It aims to provide financial risk protection to all Filipinos, while increasing access to quality healthcare for the poor and those living in remote areas. When fully implemented, it entitles every Filipino citizen to health coverage that costs far less than what they must pay at present.

During a sectoral meeting with President Ferdinand Marcos, Jr., Health Secretary Teodoro Herbosa reported the recent developments in the implementation of the UHC Act. These included the commitment of 71 local government units (LGUs) to integrate their local health systems into a Universal Healthcare Integration site. Of these, five LGUs are now considered as a Primary Care Provider Network sandbox, including Baguio, Bataan, Guimaras, Quezon Province, and South Cotabato.

Secretary Herbosa also proposed the creation of a UHC Coordinating Council that will serve as a national governance body in overseeing the implementation of the UHC Act in all localities. Additionally, the Council will be an avenue for the government to discuss concerns regarding the law, including the conduct of public financial management training and other capacity building initiatives for local health officials, especially those at the barangay levels, in order to maximize the public’s access to quality healthcare.

Some of the best public healthcare systems in the world, such as those of Sweden, Denmark, and Germany, all have successful UHC programs. Among the many inspirations for the Philippines UHC program is the United Kingdom’s National Health Service (NHS), which has provided its citizens access to free public healthcare since 1948.

Many Asian countries as well have implemented successful interventions to achieve universal health coverage, according to a 2021 scoping review, with some more successful than others. Most of the 40 studies published from 2000 to 2019 that “Best Practices in Achieving Universal Health Coverage: A Scoping Review” looked at were from Asian countries, including Japan, Thailand, and Mongolia. These countries — coming from a mix of low- and middle-income countries and upper-middle income countries — implemented successful interventions to achieve universal health coverage that focused on financial protection, population coverage, service coverage, and service quality. At the same time, China and the Philippines were found to be at the edge of achieving true UHC, with the intent of modeling their systems with best-of-breed practices as mentioned.

Most of the interventions in service coverage targeted specific groups, such as children, adolescents, women, and selected patient populations. The review found that designing dedicated and fully customized service packages can be much more efficient and effective than comprehensive service packages designed for the population of a country without considering the specific needs of different groups.

Reforms also focused on the payment and premium systems. The review indicated that social, economic, and political sustainability are key drivers of health interventions and reforms in achieving universal health coverage. In many studies, social health insurance, premium, cost containment, national health insurance system, tax revenue, risk-pooling mechanisms, and strategic purchasing are crucial factors in providing financial protection.

The review found that successful interventions in the countries under study have positive results such as reduction in the intensity of care and a decrease in length of hospital stay, elimination of costs of services that cause overuse of health services, allocating a large percentage of income to health, reducing out-of-pocket payments, among others.

The research-based biopharmaceutical industry is committed to progress toward UHC and seeks to leverage innovation to achieve health equity, emphasizing three foundational elements: improving primary healthcare, ensuring adequate financing, and focusing on multistakeholder partnerships.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

ACEN shares down following earnings data

ACEN Corp. shares fell last week as annual earnings decline led to heightened selling pressure.

Data from the Philippine Stock Exchange (PSE) showed that Ayala-led ACEN had 105.89 million stocks worth P412.49 million exchanged from March 11 to 15.

ACEN’s price per share closed at P3.78 on Friday, lower by 7.4% from the P4.08 closing price the week before. Year to date, the stock declined 6.8% from the P4.38 finish on the last trading day of 2023.

Analysts attributed the stock movement to the dismal full-year earnings report of ACEN.

“[The] main reason for the continued selling pressure is their earnings announcement,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said.

ACEN’s net income dropped by 37.6% to P9.11 billion last year from P14.6 billion in 2022.

The company’s net income attributable to its parent also fell to P7.4 billion, lower by 43.3% from P13.06 billion in 2022.

“[The decline] was primarily due to the remeasurement gain from acquiring the Australia platform in 2022,” Globalinks Securities and Stocks, Inc. Senior Trader Crismon V. Santarina said.

He added that the loss has now been reflected in the market as the company saw continued selling pressure.

“The stock is trading at oversold levels and there might be a possibility for it to touch the P3.50 level,” Mr. See said in an e-mail.

ACEN finished as the 9th most traded stock by volume last Friday.

On Tuesday, the renewable energy company announced a joint development project with US-based company BrightNight.

The project will facilitate the development of one gigawatt of renewables worth $1.2 billion over the next five years.

“[The project] is indeed positive news for ACEN. However, projects of this nature typically require time to develop, and their impact on the stock price is usually minimal,” Mr. Santarina said in a Viber message.

He added that investors remain wary of the growth stock as they opt for attractive blue-chip alternatives such as Meralco and Aboitiz Power.

This week’s closing price at P3.78 was the lowest since the P3.71 finish on Dec. 21 last year.

Both analysts see that ACEN’s share price may continue to decline for the coming week.

Given this, Mr. Santarina said that “[the stock] is a prime opportunity for investors to buy while it is near its 52-week low.”

He projects ACEN’s full-year net income at P11.3 billion.

“ACEN’s major support and major resistance are at P3.59 and P4.33, respectively,” Mr. Santarina said.

For Mr. See, support levels to look at are P3.50, P3, and P2.70. — Andrea C. Abestano

RCBC to use recycled PVC in credit card production

PHILSTAR FILE PHOTO

RIZAL COMMERCIAL Banking Corp. (RCBC) will now use recycled polyvynil chloride (rPVC) plastic for its credit cards, it said on Sunday.

“As a bank, we are committed to ensuring we have a sustainable future. Our shift to the use of recycled plastics for credit card products is one among many steps we are taking towards this goal,” RCBC Credit Cards President and Chief Executive Officer Arniel Vincent B. Ong said in a statement.

The new rPVC credit cards are made of at least 80% recycled plastic.

RCBC began using rPVC for its credit cards in 2023, with 60% of new, renewed, and replaced credit cards made from recycled plastics. The bank said it is aiming to increase this share in the coming years.

RCBC added that it will use at least 2,250 kilograms of recycled plastics for its credit cards every year following the complete transition to the new material. This would be equivalent to the weight of up to two sedan cars.

The bank also previously embarked on a campaign to shift its credit card statements from paper to electronic means, with over 96% of all accounts currently enrolled in e-mail statements.

RCBC’s attributable net income rose by 1.14% to P12.218 billion in 2023 due to higher loans and deposits.

Its shares closed unchanged at P22.05 apiece on Friday. — AMCS

How PSEi member stocks performed — March 15, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, March 15, 2024.


Philippines ranks 50th in 170-country ‘Impunity Index’

The Philippines improved four notches to 50th place out of 170 countries in the latest edition of Atlas of Impunity or the “Impunity Index,” which measures the abuse of power by governing bodies, by the political risk analysis and consulting firm Eurasia Group. However, the country has the fourth-highest level of impunity among its peers in the East and Southeast Asian region with an overall score of 2.36 out of 5 (5 is worst). It was worse than the global and Asia average scores of 1.94 and 2.15, respectively.

 

Philippines ranks 50<sup>th</sup> in 170-country ‘Impunity Index’

2023 Mitsubishi vehicle sales in PHL

Fed review in spotlight as market looks for leads

REUTERS

PHILIPPINE STOCKS may trade sideways in the coming days after ending a seven-week winning run as investors look ahead to the policy meeting of the US Federal Reserve.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) dropped by 2.09% or 145.64 points to close at 6,822.32, while the broader all shares index fell by 1.39% or 50.28 points to end at 3,560.46.

Week on week, the PSEi retreated by 1.73% or 119.89 points from its 6,942.21 close on March 8.

“A Friday sell-off caused the local market to end in the red territory last week, snapping its seven-week gaining streak. In the process, the bourse fell below its 10-day and 20-day exponential moving averages,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Last week’s drop opens doors for bargain hunting opportunities. However, a strong rally could be difficult amid tempered hopes of a rate cut by the Fed following the above-expected US producer price index (PPI) inflation. Hence, the market may only move sideways,” Mr. Tantiangco said. “Aside from this, investors are also expected to watch out for the remainder of the fourth quarter and full-year 2023 corporate results.”

The Fed will hold its policy meeting on March 19-20.

The US central bank held its target rate steady at the 5.25-5.5% range for a fourth straight time at its January meeting after raising borrowing costs by 525 basis points from March 2022 to July 2023.

US government data released last week showed that its inflation rate accelerated to 3.2% in February from 3.1% in January.

A report from the Labor department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January, Reuters reported. Economists had forecast the PPI would climb 0.3%.

In the 12 months through February, the PPI shot up 1.6% after advancing 1% in January. The report followed news on Tuesday that consumer prices increased strongly for a second straight month in February.

“The markets would be anticipating the upcoming Fed rate-setting meeting and decision, as well as the updated Fed dot plot, as source of new market leads on March 20,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

Online brokerage firm 2Trade-Asia.com put the PSEi’s support at 6,800 and resistance at 7,000.

“Brace for price gyrations in tandem with macro headlines as markets remain interest rate sensitive,” 2TradeAsia.com said.

Meanwhile, Mr. Tantiangco placed the PSEi’s support at 6,700 and resistance at 7,000, and Mr. Ricafort put its immediate major support at 6,340-6,470.

“Major resistance over the past two years is at 6,840 levels, for any consistent breach above which would lead to further upside potential towards the 7,100-7,500 levels for the coming months,” Mr. Ricafort said. — R.M.D. Ochave with Reuters

Peso to move sideways vs dollar

THE PESO could trade sideways against the dollar this week as the market awaits the policy meeting of the US Federal Reserve.

The local unit closed at P55.53 per dollar on Friday, weakening by 13 centavos from its P55.40 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, however, the peso strengthened by four centavos from its P55.57 close on March 8.

The peso weakened on Friday following the release of US producer price index (PPI) and retail sales data, which resulted in a general stronger dollar and higher US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Retail sales rose 0.6% last month, the Commerce department’s Census Bureau said, Reuters reported.

They increased 1.5% on a year-on-year basis in February.

Meanwhile, another report from the Labor department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January.

In the 12 months through February, the PPI shot up by 1.6% after advancing 1% in January.

For this week, Mr. Ricafort said the market will monitor the Fed’s March 19-20 policy meeting for leads.

Mr. Ricafort sees the peso ranging from P55.30 to P55.80 per dollar this week. — A.M.C. Sy with Reuters

PEZA pharma locators eyed for expedited-permit scheme

Illustration photo shows various medicine pills in their original packaging in Brussels, Belgium, Aug. 9, 2019. — REUTERS/YVES HERMAN/ILLUSTRATION

PHARMACEUTICAL companies and makers of medical devices who operate in economic zones are being considered for green-lane treatment, entitling them to an expedited process for obtaining permits from drug regulators, the Philippine Economic Zone Authority (PEZA) said.

In a statement, PEZA said the proposal was discussed in a meeting with the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) and the Food and Drug Administration (FDA) last week.

“The high-level discussion centered on actionable steps to enhance the ease of doing business for both domestic and export-oriented drug and medical device manufacturers by addressing certain non-tariff barriers, particularly in permitting and licensing,” the investment promotion agency (IPA) said.

PEZA Director General Tereso O. Panga told BusinessWorld that the parties agreed to update the memorandum of agreement (MoA) signed in 2014.

“For this new MoA with the FDA, we agreed to consolidate two MoAs where the cooperating parties will provide a green lane for PEZA-registered business enterprises (involved in) pharmaceutical and medical device manufacturing,” Mr. Panga said in a Viber message.

The new MoA also aims to come up with guidelines for the registration of pharmaceutical industrial parks to provide a one-stop shop for FDA facilitation of permits and clearances and review policies to attract more pharma companies to the Philippines.

Mr. Panga said the goal is to encourage local production to lower the cost of drugs and medical devices, by reducing the turnaround time for pre-assessment activities they are subject to.

On Thursday, PEZA and the FDA unveiled their medical device economic zone initiative.

“We are committed to working in unison with the OSAPIEA and PEZA to simplify business operations in our country,” FDA Director General Samuel A. Zacate said.

“By refining our policies and collaborating with PEZA, we aim to gain a better understanding of the concerns of locators. These initiatives are expected to elevate the local drug supply and reduce costs to competitive generic levels, akin to those in India,” he added. 

As of December, PEZA hosted 26 companies manufacturing of pharmaceutical products and medical equipment, accounting for P25.49 billion in investment and 19,000 direct jobs.

“Moreover, PEZA is reviving talks with the leading Filipino companies into pharmaceutical-related activities, such as Lloyd Laboratories, Pascual Laboratories, and United Laboratories, Inc., for the establishment of a modern pharma park,” the IPA said.

“PEZA is also in talks with Royal Cargo Pharma Logistics, the first Good Distribution Practices (GDP)-certified logistics service provider in the Philippines, to complement the proposed pharma-zone ecosystem,” it added. — Justine Irish D. Tabile

Wearables industry exports decline in Jan.

REUTERS

WEARABLES exports dropped in January and are expected to remain weak this year, the Confederation of Wearable Exporters of the Philippines (CONWEP) said.

“Industry performance continues to shrink and we foresee an overcast horizon ahead of us for 2024,” CONWEP Executive Director Ma. Teresita Jocson-Agoncillo said via telephone.

Exports by the wearables industry posted -19% growth in January to $82.4 million.

Apparel exports contracted 13% to $44.34 million, travel goods shrank 25% to $32.38 million, and footwear exports declined 16% to $5.67 million.

Apparel exports accounted for 0.7% of total exports in January. The leading exports were electronic products and semiconductors, which accounted for 58.2% and 45.5% respectively.

The trade-in-goods deficit shrank 24% to $4.22 billion in January.

Slower global demand, external conflicts, and regional competitors continue to put pressure on wearables exports, Ms. Jocson-Agoncillo said.

“Buyers would tend to be a little more careful in placing their orders to supplier countries like the Philippines, because they would need flexible sourcing that can promise low cost, are quick-to-market, and fully adhere to international laws… tied to sustainability issues and human rights,” she said.

Tensions between China and the US, the Russia-Ukraine war, and conflict in the Middle East have been disrupting the wearables supply chain, Ms. Jocson-Agoncillo added.

CONWEP has said a major foreign brand pulled out from the Philippines and transferred operations to Vietnam after that country signed a free trade agreement with the European Union. 

The wearables industry could also suffer more job losses if Philippine legislators go ahead with a wage hike law, according to CONWEP.

“A wage increase at the moment is a major factor in maintaining competitiveness as a sourcing hub for apparel products from the Philippines,” Ms. Jocson-Agoncillo said.

Foundation for Economic Freedom President Calixto V. Chikiamco said the government should prioritize infrastructure catering to the movement of goods to boost trade in the coming months. These include airports, seaports, shipping services, warehouses, roads and transport links to key trade hubs.

“(President Ferdinand R. Marcos, Jr.) should promote foreign investment in shipping now that the Public Service Act has opened the sector to 100% foreign investment,” he said in a Viber message.

Mr. Chikiamco also urged lawmakers to pass a law separating the regulatory and operating functions of the Philippine Ports Authority to address port congestion.

Meanwhile, investment pledges recently gained by the Philippines should help establish the country as a semiconductor hub in the region alongside South Korea and Taiwan, public investment analyst Terry L. Ridon said.

“Government should follow through with the investment commitments in the recent US trade mission and Berlin official trip, in which the country is positioning itself as an alternative to China in the manufacturing of semiconductors and similar products, amid the rising competition between the US and China,” Mr. Ridon, convenor of think tank InfraWatch PH, said in an e-mail.

Last week, Mr. Marcos tallied $4 billion in foreign investment pledges from German companies in manufacturing, information technology, and agriculture. Several US companies are also set to invest about $1 billion in the Philippines, US Commerce Secretary Gina Raimondo said.

Semiconductor growth must come hand-in-hand with reduced red tape and corruption, Mr. Ridon added. — Beatriz Marie D. Cruz