Electric Vehicle Association of the Philippines (EVAP) Chairman Rommel Juan (left) with fellow resource persons at last year’s Philippine Electric Vehicle Summit: AC Motors Marketing Director Patrick Manigbas, Senator Sherwin Gatchalian, and EVAP President Edmund Araga. — PHOTO BY KAP MACEDA AGUILA
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Electric Vehicle Association of the Philippines (EVAP) Chairman Rommel Juan (left) with fellow resource persons at last year’s Philippine Electric Vehicle Summit: AC Motors Marketing Director Patrick Manigbas, Senator Sherwin Gatchalian, and EVAP President Edmund Araga. — PHOTO BY KAP MACEDA AGUILA
Mr. Juan, representing EVAP, appears with Electric Vehicle Association of Malaysia President Datuk Dennis Chuah at the Periklindo Electric Vehicle Show in Indonesia last May. — PHOTO FROM ROMMEL JUAN
Interview by Kap Maceda Aguila
AT NO POINT in the country’s history has there been this many electrified options in mobility — ranging from traditional hybrids, plug-in hybrid electric vehicles, and battery electric vehicles. The concerted move toward the ultimate goal of weaning mobility away from fossil fuels has long begun, but not without the anticipated hiccups and stumbling blocks as policies and legislation struggle to keep up with the momentum.
Take, for instance, the highly polarized discussion on what to do with light electric vehicles (namely, e-bikes and e-tricycles) and the potential risk for accidents they pose as they jockey for position on major thoroughfares. While the Metropolitan Manila Development Authority (MMDA), via pronouncements made by MMDA Chairman Romando Artes, is putting its foot down in this matter, the final version of the IRR is surely far from hammered down as stakeholders weigh in.
But there appears to be no stopping the inevitable as the people become more aware — and rightfully afraid — of how we’re imperiling our future by polluting the planet and causing climate change. There needs to be a decisive step toward cutting our carbon footprint.
The Electric Vehicle Association of the Philippines (EVAP) has long been espousing the advancement of the electric vehicle (EV) industry — doing yeoman’s work in enlisting champions from legislature, government, and the private sector. It prides itself as “a catalyst for the growth and development of electric vehicles in the Philippines by advocating policies, providing technical expertise, and promoting collaboration among stakeholders.” Significantly, it stages the annual Philippine Electric Vehicle Summit (PEVS) as a venue to showcase, discuss, network, and ultimately ascertain where our industry is.
We talked with EVAP Chairman Rommel T. Juan on our EV scene — its challenges, needs, and opportunities; how we compare to our neighbors; and what the future looks like.
VELOCITY: How would you describe our local EV scene compared to our ASEAN neighbors?
ROMMEL T. JUAN: ASEAN neighbors such as Thailand, Malaysia, Singapore and Indonesia are ahead, but we are catching up. We are ahead or at par with the other neighboring countries.
The country has obviously gone a very long way toward the electrification of mobility from the early days of EVAP’s campaign to today. How mature or adequate are the state’s policies to promote or hasten the adoption of electric transport?
I think EVIDA (Electric Vehicle Industry Development Act) was a huge step already. However, as experienced in countries where EVs have really boomed, we really need more fiscal incentives and subsidies. We hope that the CREVI (Comprehensive Roadmap for the Electric Vehicle Industry) can address this once it is finalized.
What remains on your wish list?
Local EV battery manufacturing and leasing is on my wish list. I believe that this is the main thing needed for us to locally make more affordable e-PUVs and e-trikes.
Electric tricycles and e-bikes have recently been on the news for the wrong reasons, and they seem to fall through the cracks of policies and regulations. In your opinion, what needs to be done?
I think we need to regulate EVs the same way we do ICE (internal combustion engine) vehicles. Small e-trikes with less-than-certain power ratings should not be allowed on major thoroughfares. And, like regular vehicles, they must be registered.
It’s notable that more OEMs now are bringing in fully electric offerings, but one of EVAP’s thrusts is to get local enterprises and businesses in on the action, so to speak. How do you see this happening, and how can this be hastened or promoted?
I still think the niche of local EV production is in electric PUVs and e-trikes. But as I mentioned, the price is still too high. The answer lies in battery leasing. Take out the cost of the battery when you buy the unit, and just lease or rent it from a battery leasing company.
There is still considerable pushback that the country is not ready to go full or even significantly EV on account of the lack of charging infrastructure. What do you say about this? Some say that hybrids are the way to go.
I think that the country is ready to go full EV. The technology is there and the infrastructure is catching up fast. When I say catching up, I only mean the public charging stations. However 98% of EV users charge at home and would only use public chargers when they need to go long distances.
It appears that developed economies which had been previously full throttle on EVs are starting to reconsider their position for a variety of reasons.
I think this is merely a speedbump. There are many reasons why the demand suddenly went down. One is that EVs experienced unprecedented high sales during the pandemic, and the market is just correcting. Another is that some big car companies which sold EVs could not keep up with the demand because of an inadequate battery supply. Also, the world leader, which is Tesla, has been aggressively lowering its price — thereby disrupting the market.
Another concern is that increased governmental incentives to shore up the EV industry may actually one day hobble economies by taking away all of the revenues and tariffs normally going to government.
Hopefully when this time comes, people would have successfully transitioned.
What is the realistic timeline you see for EVs in the Philippines? When will we see a majority of vehicles being electric or electrified here?
It’s tough to say. I think it will take a very long time for EVs to overtake ICE-powered vehicles in the Philippines. I’m not waiting for that time. I just want to see more and more people get to try using EVs and feel the difference. Owning an EV is so very liberating. Just plug in when you get home or in the office, if possible, and you never have to worry about getting gas, or even think about its fluctuations in fuel prices. At EVAP, we have been advocating the use of EVs for 15 years, and we are simply delighted that more and more big brands are introducing their EV models and that more individuals are getting to try them — and actually later purchase EVs. It’s just like switching from a regular cellphone to a smartphone; it’s just better and easier to use.
PARIS — France’s lower house of parliament on Thursday approved a bill seeking penalties on ultra-fast fashion products, sold by companies like China’s Shein, aimed at helping to offset their environmental impact.
The bill calls for gradually increasing penalties of up to €10 per individual item of clothing by 2030, as well as a ban on advertising for such products.
All voting lawmakers unanimously approved the bill, which will head to the senate before it can become law.
The popularity of fashion retailers Shein and Temu — which scale up orders based on demand thanks to ultra-flexible supply chains — have disrupted the retail sector while established players like Zara and H&M continue to largely rely on predicting shoppers’ preferences.
Shein said in a statement to Reuters that the clothes it produces meet an existing demand, which allows its rate of unsold garments to remain consistently in low single digits, whereas traditional players can have up to 40% waste.
It added that the only impact of the bill would be to “worsen the purchasing power of French consumers, at a time when they are already feeling the impact of the cost-of-living crisis.”
The bill comes as the French environmental ministry said it would propose a European Union ban on exports of used clothes, in a bid to tackle the worsening problem of textile waste. —Reuters
GLOBE TELECOM, Inc. has partnered with Converge ICT Solutions, Inc. for co-build projects in Bicol and Leyte to extend fiber optic networks.
“By pooling our resources and expertise, we’re not only expanding our network more efficiently but also significantly lowering the costs associated with such extensive infrastructure projects,” Joel R. Agustin, Globe senior vice-president and head of network planning and engineering, said in a statement on Sunday.
The collaboration between Globe and Converge was forged in February 2022 and was completed in the third quarter of the same year.
The project covers co-building of projects stretching 137 kilometers from Pili, Camarines Sur, to Legazpi City, Albay, as well as the deployment of microduct solution underground facilities.
With the completion of the project, Globe said that it has decided to embark on a second co-build project with Converge in Leyte covering 209 kilometers to connect Tacloban and Maasin.
The second project is expected to be completed by the third quarter of 2024.
“These initiatives fall under Globe’s core fortification program, designed to achieve comprehensive enhancements, expand fiber network, upgrade network capacity, and accommodate Hyperscalers’ needs,” Globe said.
Mr. Agustin said this partnership allows Globe to improve its network availability and consistency.
“We share the same focus on delivering reliable service to our customers,” he said. — A.E.O. Jose
In the center of Bangkok, a couple of kilometers northeast from the Grand Palace and roughly five kilometers west of the main Siam shopping district, at the corner of Ratchadamnoen Avenue and Dinso Road, is the Democracy Monument. In its center is a representation of the box holding Thailand’s 1932 constitution, the country’s first one after the coup that ended its absolute monarchy.
The monument is easy to miss — a moderately sized traffic circle that for most tourists is little more than a drive-by landmark caught somewhere in between Bangkok’s grand temples and its shopping district. Politically, it’s also easy to overlook. Counting the first provisional charter after the coup, Thailand has had 19 constitutions, including provisional charters, or an average of one every five years. And the distribution appears roughly even, with seven since 1991. In comparison, the Philippines has had only three constitutions, starting from the first one in 1935. And there is a possibility that we may see a new Thai constitution in the next few years. Thailand has had 13 successful coup attempts, and nine unsuccessful ones. In 1992, the Black May protests against military rule were held a few hundred meters away from the Democracy Monument and resulted in 52 deaths, with hundreds injured and an unknown number missing.
But economically, Thailand today is what we aspire to become: a manufacturing center for global value chains for white goods, autos, and computer components, among others. The Map Ta Phut Industrial Estate south of Bangkok, which opened in 1990, is the 8th largest petrochemical complex in the world, feeding those very same industries. Its 2022 per capita GDP, according to the World Bank, is $6,900 compared to our $3,500. In 2019, Thailand drew 40 million tourists, nearly five times our 8.5 million. During a recent trip to the east of France, when I mentioned that I was from Southeast Asia I drew recognition of Phuket and Bali, not Palawan or Boracay.
How did a country that was once our peer leapfrog over us in industrial development when its politics are several times more problematic and unpredictable than our own?
The answer is not some special and unique Thai political sauce that is not found elsewhere in Southeast Asia. The common refrain is that Thailand has a monarch, but the king, revered as he is, does not intervene in day-to-day decisions or long-term industrial policymaking. It is not in some magical quality of Thai workers. When I asked one Thai owner of an auto component original equipment manufacturer (OEM) some time ago what his biggest worry was, he said that it would be Indonesians learning to push the same buttons as his workers — a transferable and trainable skillset.
Rather, what Thailand has offered foreign investors are two Cs: credibility and coordination.
On the surface, the country’s politics are messy, unpredictable and sometimes violent. But beneath it is a substratum of familial, economic, and political interests that through the past four decades have generally recognized what foreign investors need in the country and maneuvered the country’s policymakers and bureaucrats to avoid killing the proverbial golden goose of manufacturing. In this network are families that own businesses that benefit greatly from the inward FDI, whether as partners or landlords to their production facilities. Others cater to domestic consumption, which have benefited from the increase in incomes as Thai agricultural workers found higher-paying jobs in the cities and industrial estates.
The other part is coordination, which is the Thai system’s ability to formulate policies for foreign investors and implement them in a consistent and coherent way, across agencies and between central and local governments, and within reasonable time frames. One example is how local governments regularly work with their polytechnics and vocational institutions to deliver the skilled workers needed by factories or new manufacturing facilities ahead of the planned investments.
What Thailand has taught us is that learned lessons and narratives can be sometimes be more effective than formal rules. The bureaucrats and agencies that oversee the auto industry have significant political clout, sometimes more than the politicians who run the country, because of the broad recognition of the sector’s value to the Thai economy. Furthermore, the narrative that manufacturing and industry need to be accommodated, and that their flourishing in Thailand works to the broader benefit of the country, constrain local governments or vested interests from rent-seeking or other extractive activities.
Networks that derive economic benefits from Thailand’s manufacturing sector then pressure the government to avoid disruptive policies that would threaten Thai industrial competitiveness and its credibility with foreign investors. With millions employed in manufacturing, any warning from the business sector that policy changes could weaken the sector generates significant attention, both privately and in the media. This system has been key to Thailand’s attractiveness to foreign investors — unstated, unwritten, but understood and tested across multiple governments and constitutions, under both civilian and military rule.
But Thailand did not plan it out, it evolved as it took in foreign investors.
Of course, some luck was involved. During the rule of the generals in the late 1980s and early 1990s, they entrusted policymaking to some technocrats who not only pushed trade liberalization and bureaucratic reforms, but also ensured that before they left office that there were appointed officials who’d see their reforms through into the succeeding administrations.
With Philippine politics now thrashing around on the issue of constitutional change, Bangkok’s lesson is that there is no magic bullet for the economy. Thailand’s credibility with foreign investors was built through years, if not decades, of consistency and predictability in the investment environment for the manufacturing sector. Opening up the economy is one step, but it will not be enough. Rules matter, but so do narratives, in shaping bureaucratic behavior and investor perceptions. And narratives are, in turn, the net result of complicated interactions, across the whole range of stakeholders in the community and the economy. Change must lift all of them up, otherwise resentment will follow for those left behind.
The question now is: are we changing the Philippine system to deliver the credibility and coordination that foreign investors seek, especially for the large capital projects whose payoff will span two or even three administrations? What is our narrative, and how do we change it?
Bob Herrera-Lim is a managing director at Teneo, a New York-based consulting firm that advises companies and investors globally. He covers all of Southeast Asia for the firm’s clients. He is also a fellow of the Foundation for Economic Freedom.
RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) could be mixed this week after faster-than-expected US inflation reduced expectations of policy easing by the US Federal Reserve this year.
The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, or P5 billion each in 91-, 182-, and 364-day papers.
On Tuesday, it will offer P30 billion in reissued 20-year T-bonds with a remaining life of 19 years and 11 months.
T-bill and T-bond rates may track the mixed movements in secondary market yields last week amid reduced expectations of policy easing by the Fed this year following the release of the latest US consumer and producer inflation data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“Fast money was seen taking profit today following hotter than expected PPI (producer price index) data from the US, which threatens the base case three cuts from the Fed,” a trader said in an e-mail on Friday.
The trader said the 20-year T-bond could see strong demand and fetch an average rate ranging from 6.25% to 6.3%.
At the secondary market on Friday, the 91-day T-bill rose by 0.77 basis point (bp) week on week to yield 5.7729%, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website. Meanwhile, the 182- and 364-day papers went down by 1.68 bps and 8.84 bps to end at 5.7729% and 6.0195%, respectively.
On the other hand, the 20-year bond rose by 4.46 bps week on week to 6.3001%.
The US consumer price index (CPI) increased solidly in February, beating forecasts and suggesting some stickiness in inflation, Reuters reported.
Although the CPI rose 0.4% in February in line with forecasts, a 3.2% year-on-year gain came in just ahead of an expected 3.1% increase. Core figures also topped estimates.
A Labor department report likewise showed the producer price index (PPI) rose by 0.6% month on month in February, compared with a 0.3% increase expected by economists polled by Reuters, amid a surge in the cost of goods like gasoline and food.
It rose by 1.6% in the 12 months to February, versus an estimated growth of 1.1%.
Traders now see a 62% chance of the Fed cutting rates in June, according to the CME FedWatch tool, down from 67% before the PPI data.
The Fed will meet to discuss policy 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 during its meeting in January. It raised borrowing costs by 525 bps from March 2022 to July 2023.
Last week, the BTr raised P15 billion as planned from the T-bills as total bids reached P50.708 billion, more than thrice the amount on the auction block.
The Treasury raised P5 billion as programmed from the 91-day T-bills as tenders reached P13.555 billion. The average rate of the three-month T-bill went down by 0.6 bp to 5.772%. Accepted rates ranged from 5.73% to 5.825%.
The government likewise made a full P5-billion award of the 182-day debt as bids hit P17.631 billion. The average rate for the six-month T-bills rose by 2.9 bps to 5.966%. Accepted rates were 5.93% to 5.993%.
Lastly, the BTr borrowed P5 billion as planned from the 364-day papers as demand for the tenor totaled P19.522 billion. The average rate of the one-year T-bill went down by 1.3 bps to 6.087%. Accepted yields were 6.089% to 6.125%.
Meanwhile, the reissued T-bonds to be auctioned off on Tuesday were first offered on Feb. 27, where the government raised P30 billion as planned. The bonds fetched a coupon rate of 6.25% and an average rate of 6.209%.
The BTr is looking to raise P180 billion from the domestic market this month, or P60 billion from T-bills and P120 billion through T-bonds.
The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.1% of gross domestic product this year. — A.M.C. Sy with Reuters
THE Department of Agriculture (DA) said on Sunday that 24 employees of the National Food Authority (NFA) had their suspensions lifted, with the initial findings against them ruled to have been based on erroneous data.
In a statement, the DA said the two dozen employees were among the 141 NFA employees who had been suspended by the Office of the Ombudsman over the irregular sale of NFA inventories.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. said he hopes the Ombudsman will allow more NFA staff to return to work.
“We hope that more suspensions will be lifted in due time so that NFA operations will normalize,” Mr. Laurel said.
Ombudsman Samuel R. Martires was quoted as saying that the suspensions were lifted after it found erroneous data on the list of employees provided by the department.
Mr. Laurel said that the DA only forwarded the list it received from the NFA without verifying its accuracy because of the urgency of the request.
“The list was given to us by the NFA, and we just forwarded it to the Ombudsman, believing that (it) is current and up-to-date,” Mr. Laurel said.
The Ombudsman had questioned the transactions involving the disposal of rice stocks because NFA officials had “unilaterally select(ed) the commercial rice traders/millers/buyers” participating in the sale.
The NFA, a government-owned and -controlled corporation, is required to sell old rice in inventory at up to a 10% discount to the mandated price of between P22.5 and P25 per kilo. — Justine Irish D.Tabile
THE water levels in reservoirs are at “safe levels” with an adequate margin available before Metro Manila’s main source of water hits the critical mark, a Palace communications official said on Sunday.
Assistant Secretary for Radio of the Presidential Communications Office Jose Maria M. Villarama II told BusinessWorld on the sidelines of a briefing that according to Task Force El Niño, “Angat Dam’s critical level is 180 meters, but right now we’re at around 200,” he said.
“What we’re experiencing now is a strong and mature El Niño,” he said.
Damage to agriculture has been estimated at P1.31 billion, which Mr. Villarama described as low compared to 2009, when the losses hit a record P17 billion.
Asked about agricultural workers affected by El Niño, Mr. Villarama said the Task Force and the Departments of Social Welfare and Development and Labor and Employment are offering a cash-for-work program.
“We help them earn money through short-term jobs, such as construction, fixing of irrigation canals, or gardening,” he said.
More than 24,000 farmers and fisherfolk have been affected by dry conditions across more than 25,000 hectares in seven regions. The Task Force estimates that 70 provinces will be affected by El Niño.
At the same briefing, Mr. Villarama said La Niña has a 55% chance of starting as early as June.
He added that the government is not confident that the rainfall will offset the damage from the dry conditions.
“The first 2-3 months of La Niña are likely to (have) below-normal rainfall,” Mr. Villarama told BusinessWorld via Viber. — Chloe Mari A. Hufana
Lexus International LBX Chief Engineer Kunihiko Endo — PHOTO FROM LEXUS
PHOTO FROM LEXUS
PHOTO FROM LEXUS
LEXUS PHILIPPINES launches an all-new model, the LBX, today. The subcompact crossover is the smallest Lexus ever, yet is said to be “a game-changer that embodies all of Lexus’ values of authenticity, refinement, omotenashi, and engaging and imaginative technology.”
A hybrid electric crossover, the three-letter name of this vehicle is “significant,” according to Lexus Philippines. Nomenclature of its offerings are only comprised of two letters — with the only exception being the LFA supercar. “The choice of the name LBX demonstrates Lexus’ commitment to and trust in its new model. Just as the LFA showed a different side to the brand in terms of attitude and performance, so the LBX will challenge the status quo and redefine what a small car can offer, energizing and expanding the brand’s reach and profile,” the company maintained.
This new entry point to the stable of Lexus is meant to appeal to a younger market, and “those who may not have considered a Lexus before.” It is also meant to be an “attractive proposition” for those thinking of downsizing their ride, or of purchasing a second vehicle.
“Our aim was to challenge the conventional concept of a luxury car. We have thoroughly pursued a driving experience that enables a natural dialogue between the driver and their vehicle, and a design that has a refined presence,” said Lexus Chief Engineer Kunihiko Endoh.
Extensive efforts were made to ensure the constant control, comfort, and confidence of the so-called Lexus Driving Signature are delivered in a small car package. To this end, some revisions were made to the GA-B global platform such as lengthening the wheelbase, widening the track and, increasing body rigidity. Packaging, suspension tuning, braking and steering all play their part in producing a car that reportedly responds instantly and faithfully to the driver’s inputs.
The new powertrain is a self-charging 1.5-liter hybrid electric system. It is tuned for rewarding performance, with powerful, linear acceleration from the start. This helps deliver low-speed agility suited to demands of urban driving. A new bi-polar nickel-metal hydride hybrid battery provides greater responsiveness from a smaller and lighter package, while extensive measures to address road noise and vibration ensure the kind of calm and quiet on-board experience appropriate for a premium model.
The styling of the LBX gets a “Resolute Look” on its front that reinterprets the iconic spindle grille. While the exterior dimensions are more compact than any other Lexus, the look is muscular and powerful. Inside, the emphasis is on driver engagement with a focused driver’s cockpit based on Lexus’ Tazuna concept — inspired by a rider’s precise use of the reins to control a horse (the meaning of Tazuna in Japanese). The vehicle’s controls and information sources are arranged so that only small movements of the hands and eyes are required for operation, keeping the driver’s attention focused on the road. The cabin has a light, open feel with excellent visibility and an instrument panel that wraps around smoothly into the door panels.
To help maintain a wide, clear view and open cabin feel, the horizontal instrument panel has a clean and simple design. At each side, its form flows into the door panel, giving a sense of wrapping around the front seat occupants, so the feel is expansive yet encompassing. The continuous line created by this design also helps the driver sense the degree of vehicle roll when driving through bends.
The LBX is the first Lexus model to be manufactured at the Iwate plant in eastern Japan, a facility that has benefited from the Toyota Motor Corp. investment to help regenerate a region that suffered devastation from the Tohoku Earthquake and tsunami of 2011.
The LBX is 4,190-mm long, 1,825-mm wide, and 1,560-mm high. It has a 2,580-mm wheelbase, with a tight 5.2-m turning radius.
The LBX has a new self-charging full hybrid electric powertrain that is both highly efficient and tuned for the kind of prompt, responsive acceleration that’s characteristic of battery electric power. The total system output is 100kW with peak torque of 185Nm, giving standstill-to-100kph time of 9.2 seconds. The 1.5-liter three-cylinder engine has world-class thermal efficiency, supported by high-speed combustion, achieved with technologies evolved from Formula 1 engineering, including a longer stroke, increased valve angle and laser-clad intake valve seats. The ultra-lightweight pistons are designed for performance at high engine revs and have a resin skirt coating that reduces friction with the cylinder wall.
Visit Lexus Manila and Lexus at Mitsukoshi to see the all-new Lexus LBX, priced at P2.968 million. For more information, visit the Lexus website at lexus.com.ph or its social media pages on Facebook and Instagram (@lexusphilippines). Updates and premium services are available through the MyLexus app for both Android and iOS users. Mitsukoshi BGC is located at 8th Ave. corner 36th St. Grand Central Park, North BGC, Taguig.
BRUSSELS — A shop has opened in Brussels selling still-sealed unwanted Amazon parcels by the kilo, effectively a lottery ticket which could win the holder a connected watch, a smartphone — or a worthless trinket.
The shop called Pile ou Face, French for Heads or Tails, is located near the central square Place Flagey and offers the parcels at €16 ($17.40) per kilo. Customers pick a box among the dozens stored in the shop and some open them on the spot.
“It is like gambling. I paid €40 and I got three or four headphones, I did a good job,” said Paul, who declined to give his last name.
Gisele Peeters is a bit disappointed, though. Her €14.40 parcel contained an old-style telephone with a dial. “It’s not something I would have bought. I’ll try to resell it,” she said.
Arnaud Userstam, who founded the shop, said connected watches and smartphones are the items people are happiest to get, but others return home with clothes, or sometimes especially weird items.
“A lady got 100 toothbrushes for dogs,” he said.
Mr. Userstam started the business after his wife and he wondered what happened with parcels with delivery problems after experiencing the issue themselves. They found out other similar shops existed elsewhere.
Pile ou Face signed contracts with the giant US e-retailer Amazon in Europe to get parcels that were not retrieved from pickup places, that were returned by customers, or simply got lost.
Mr. Userstam did not elaborate on the contracts, though he said that previously these parcels were just destroyed. — Reuters
MORE COMPANIES are expected to explore opportunities in the energy and water sectors, global professional services company said, citing the increased coordination between the government and the private sector.
“We’re seeing a lot of growth in the energy space. That’s primarily driven by a good coordination between the government and the private sector,” Lorraine Gomez, operations manager of GHD in the Philippines, told BusinessWorld last week.
The company has seen “great support” from the government in creating an attractive environment for investors.
In 2022, the Department of Energy (DoE) amended the implementing rules and regulations of the Renewable Energy Act of 2008 to allow 100% foreign capital in renewable energy projects.
GHD is “a global, multidisciplinary professional services network providing clients with integrated solutions across digital, engineering, environmental, design and construction,” according to its website.
The company caters to different sectors in the Philippines such as water, energy, transportation, property and buildings, and environment.
Ms. Gomez said that GHD has worked with “almost all the private water concessionaires in the Philippines,” especially on masterplans for their water and wastewater services.
Among the trends in the water sector in past decade is harnessing technology to maximize a limited resource, she said.
“Before, we only had conventional technologies to treat water and make them clean for consumption of the community. But now, we have so many technologies around desalination or treating seawater so that we could get that good for drinking,” she added.
In terms of the energy sector, she said that the company has worked with developers in planning and conducting environmental studies for wind and solar farms.
“There’s really growth in the development of wind energy resources,” Ms. Gomez said.
The DoE has awarded a total of 82 offshore wind energy service contracts, with a potential capacity of about 63.36 gigawatts (GW).
At least 10 offshore wind projects with 6.72 GW are expected to generate power by 2028.
“What we foresee is, given the market conditions, there will be growth in offshore wind, as well as floating solar and floating wind projects as well, so we’re very glad to help our clients deliver these major water and energy projects together,” Ms. Gomez said. — Sheldeen Joy Talavera
The quest for justice has been long and tortuous. We hope we can see the light at the end of the tunnel in our lifetime. On Feb. 1, I was one of the reactors in the panel on “Delivery of Justice” at the Justice Summit, organized by the Justice Reforms Initiative (JRI) and the Supreme Court.
JRI is an umbrella organization consisting of major business associations, judicial advocacy groups, and foreign chambers of commerce that promote the advancement of the rule of law, socioeconomic justice, global competitiveness, and sustainable economic growth. It is currently headed by Francisco Ed. Lim as chairman and Jose Jerome R. Pascual III as president.
The other speakers and reactors were lawyers, judges, businessmen, and law practitioners. I was the only NGO worker who spoke based on our experiences in our encounters with the justice system. Our organization, the Movement for Restoration of Peace and Order (MRPO), has been an advocate for justice reform for 30 years since we started in 1993 to combat the kidnapping menace.
OUR MANDATE For 30 years, we saw the urgent need to overhaul the entire system in the delivery of justice — the police, prosecutors, courts, correction, and community. It has been a long, tedious, frustrating process and we despair of having any success. But it’s not all “just’tiis.” We do see some progress, especially in the Supreme Court, which has worked hard for reforms and transformation, as attested by this Justice Summit convened with the private sector, and the positive results in the survey recently conducted on the court system.
When we organized MRPO in 1993, 31 years ago, kidnapping was at its peak because it was an almost perfect crime — victims did not report the crime, they did not cooperate with the police, they paid the ransom fast and paid big. Hence, kidnapping was a lucrative cottage industry back then. One factor behind the success in the anti-kidnapping campaign is when we succeeded in encouraging victims to file cases and put kidnappers behind bars. But it was an uphill battle because of the tedious, long drawn out and expensive trials. There was a 16-year-long case in Quezon City where the parents of the kidnap victim told us that they wouldn’t have spent so much had they just paid the ransom. The long-delayed trial — that changed judges several times — was a heavy burden financially and mentally. We also had cases where a young boy of eight was already a college graduate when his kidnapper was finally put behind bars.
The Court has been addressing this as they impose penalties on judges with backlogs, but to date, we still contend with cases that age more than 10 years and, often, the judge who decides the case is not the one who heard the case from the beginning.
WEAPONIZATION OF THE LAW Worse, perhaps, is the weaponization of the law. The onus does not lie with the courts only, but also with the police and prosecution, but the Courts have an obligation to hopefully be the stalwart and the key pillar to confront this issue that has been happening with impunity, especially in recent years.
As if nuisance cases like those against journalists like Maria Ressa and Rappler were not enough, the cases of the political prisoners are much worse. Senator Leila de Lima’s case is just one example, but she was very lucky compared to other political prisoners who are incarcerated for more than 10 years on trumped up charges and planted evidence. These political prisoners are in prison because of their beliefs, not because they broke the law.
To cite a few examples:
1. The police use cases where the suspects are John Does then put in the political prisoner’s name just because they belong to the progressive left. Imagine murder charges made against them when they have never been to the place where the crime supposedly happened.
2. To make cases of illegal possession of firearms non-bailable, police add explosives to the charges, like a pre-war, vintage, worn-out grenade without a pin. The prosecutors who know about that evidence could have easily dismissed the case. Or the courts could have granted bail. Non-bailable crimes mean these fathers or mothers cannot see or take care of their children, or they cannot take care of their own parents.
3. In some cases, when one case is dismissed, new ones are added for no reason. For example, names of political prisoners are added to the original cases filed vs. Joma Sison and the Tiamzons, just to make sure they do not go free when their own cases are dismissed.
4. Two Dumagats were ordered by a military unit to carry the dead body of a supposed rebel. But upon reaching the military camp, the two were not allowed to return to their homes and were instead arrested and are in jail till now. The poor guys are in disbelief, not knowing what crime they committed, but no one seems to care.
5. The oldest political prisoner, 85-year-old Gerardo de Leon, just wants to go home to Bicol to see his wife before he dies or she dies. But even though Tatay Gerry proved he was never a member of the NPA who claimed credit for the death of the soldier he was accused of killing, he’s suffering in jail. His mistake? Prior to the ambush of the soldier, he spoke up against a massacre in his province related to agrarian issues.
Through the years, our courts, lawyers, and practitioners have encountered horror stories of gross miscarriage of justice. Our government intensely hates progressive groups, but government remains to be the most effective recruiter of dissidents due to widespread social injustice, and our courts as last resort often become instruments of such injustice.
Naturally, I again emphasize, the onus does not lie with the courts alone. The police and the prosecution bear huge responsibility too. We badly need prosecutors and judges who can discern nuisance cases filed for political purposes and be brave enough to just dismiss them outright. We badly need law enforcers who don’t allow themselves to be used for political purposes and perpetuate the weaponization of our laws.
Last and most importantly, we need the five pillars of the criminal justice system to work in synergy and cooperation, and not in opposition, to push the justice reform agenda. Chief Justice Alexander Gesmundo’s impressive action plan for responsive real-time justice should not remain on paper but should be swiftly acted upon by all.
Teresita Ang See is a social activist, cultural worker, educator, and author. She has made outstanding contributions to peace and social cohesion for the past 50 years. She has written and co-authored 17 books, including Tsinoy – the Story of the Chinese in Philippine Life, and five volumes of Chinese in the Philippines: Problems and Perspectives. She is better known in her anti-crime advocacy as the prime mover behind the Movement for Restoration of Peace and Order. She serves as the executive chair of Manila’s People’s Law Enforcement Board to this date.
The Trust Officers Association of the Philippines (TOAP), a professional organization that aims to professionalize and promote the trust and investment industry in the Philippines, has been at the helm for six decades this year.
Bestowed with the highest fiduciary mandate, TOAP continues to actively contribute to the development of capital markets, promoting the interest of its clients and the investing public, while thriving as part of a dynamic sector in the Philippine financial system.
From evolution to innovation
Established in 1964 by a group of trust practitioners with the objective of uniting and growing the Philippine trust and investment management industry through professionalization and promotion, the industry was, by then, preparing to offer new and innovative trust products.
Ensuring that the trust officers and leaders were ready with the necessary skills and knowledge, formal training was provided for the enhancement and growth of the industry in the coming years.
The early 1980’s until 1991 saw remarkable growth in the industry, with trust assets doubling and reaching the P100-billion mark in 1991, as public awareness on the more sophisticated asset and trust management services increased.
By the year 2000, however, the global foreign exchange and financial markets saw challenges brought about by several crises. This led to the General Banking Act of 1948 being replaced by Philippine Congress into the General Banking Law of 2000. This new law, which effectively strengthens the banking sector and effectiveness of the supervision of the Bangko Sentral ng Pilipinas over local banks, now contains a chapter on trust operations, amending laws from the previous act.
Within ten years, the Philippines saw an economic exponential growth, beginning with Overseas Filipino Workers (OFWs) remittances, and increase in consumer spending. By 2010, GDP ended at 7.3%, growing more than twice after a decade, according to Asian Development Bank’s Key Indicators. This period likewise saw the trust industry breaching the trillion mark in 2007 with P1.176 trillion assets under management and 34% higher than the previous year. By 2012, the trust industry had doubled this figure to P3.1 trillion. The investment grade ratings secured during this period until 2013 set the stage for the industry’s further growth the next decade.
Recognizing the importance of good corporate governance, effective risk management and strong consumer protection, reforms were implemented, which included comprehensive investment guidelines for trust entities and guidance to better align the management of trust assets with international standards.
Steven C. Te, first vice-president and institutional sales head of BDO Unibank’s Trust and Investments Group and current TOAP president, shares that with the entry of foreign players into the Philippine financial community through the ASEAN integration and the AEC Blueprint, the trust industry has been positively impacted and strengthened. This has led to increased competition, which drives local trust companies to enhance their services, improve efficiency, and offer more competitive products to attract and retain clients.
Access to expertise and technologies has benefited the local trust industry, with foreign players bringing their know-how, best practices and advanced technologies. This transfer of knowledge and technology helped strengthen the capabilities of local trust companies and enhanced their service offerings.
Trust Officers Association of the Philippines Board of Directors 2023-2024 (standing from left): Director for Investor Relations and Education Ma. Michelle S. Valeriano, Director for Members Development Herbert Glen D. Arabelo, Director for Capital Markets Development Stella A. Sampayan, Treasurer and Director for Finance Carina L. Yandoc, President Steven C. Te, Director and Corporate Secretary Atty. Christiane B. Alonzo-Velasco, TOAP Vice-President and Director for Fiduciary Products Development Joy Jasmin R. Santos, Director for UITF Development Dreda Teresa D. Mendoza, and Director for Taxes and Regulated Products Reena Marie G. Franco
Furthermore, the participation of foreign players has expanded the range of investment options available to clients of Philippine trust companies. This diversification of investment options means better risk management, higher returns, and increased investor confidence in the trust industry.
The entry of foreign players has prompted local regulators to align standards and regulations with international best practices. This alignment has led to a more robust regulatory framework, improved governance practices, and enhanced transparency within the trust industry, as well as increased awareness and trust from clients and investors.
While the integration of foreign players into the Philippine financial community through the ASEAN and AEC Blueprint may have brought about various opportunities and benefits for the industry, Mr. Te adds that “ongoing monitoring and assessment are essential to ensure that these developments indeed add to the strengthening and sustainable growth of the industry over time.”
Another key contribution during this decade worthy of note is the expansion of Unit Investment Trust Funds (UITF).This product line provided the greater public an investment opportunity that has significantly impacted the trust industry.
In August 2021, then-BSP Governor Benjamin Diokno said that “the BSP recognizes the importance of UITFs as an avenue for small retail investors to participate in the securities markets. Certainly, the online accessibility of UITFs contributed to their growth.”
Mr. Te further expounds that the introduction of a broader range of UITF products increased investment options for investors, giving them a wider range of preferences according to their risk tolerance. It has also contributed to the growth of assets under management (AUM) for trust companies, as it has become a popular choice for both individual and institutional investors. In fact, by end of 3rd quarter 2023, UITF’s AUM was reported to be at P815 billion.
Additionally, UITFs have expanded to include regular income paying funds, hence investors appreciate this as part of the inclusive growth process offered by the trust industry. There were also investment structures under UITF that include feeder funds, multi-class funds, and fund of funds, with the same objective of bringing in more investors and presenting them a diverse menu of choices for their financial investments.
Regulatory compliance and investor protection were also implemented, adhering to regulatory guidelines set by governing bodies, to safeguard investors’ interest and maintain trust in the industry. Access to professional fund management expertise allowed retail investors to benefit from the skills and knowledge of seasoned portfolio managers. Overall, the expansion of UITFs as an investment opportunity has brought about positive changes in the trust industry in the last decade, resulting in increased market participation, enhanced competitiveness, and a broader array of investment options for investors seeking to grow their wealth and achieve their financial goals. More information can be found on www.uitf.com.ph.
By the third quarter of 2023, just several months after the declaration of the end of the COVID-19 pandemic, the banking system’s trust and investment management business reached the P6.0 trillion mark, a milestone achievement equivalent to a 10-year compounded annual growth rate (CAGR) of 8.8%. The trust industry’s resiliency even during the height of the pandemic in 2020, with a growth of 16%, proved TOAP’s continued and unrelenting efforts to push forward and rise above the global health challenges.
TOAP: Leading the trust industry
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Steven C. Te, President
Joy Jasmin R. Santos, Vice-President and Director for Fiduciary Products Development
Atty. Christiane B. Alonzo-Velasco, Director and Corporate Secretary
Carina L. Yandoc, Treasurer and Director for Finance
Dreda Teresa D. Mendoza, Director for UITF Development
Herbert Glen D. Arabelo, Director for Members Development
Stella A. Sampayan, Director for Capital Markets Development
Ma. Michelle S. Valeriano, Director for Investor Relations and Education
Reena Marie G. Franco, Director for Taxes and Regulated Products
Since its inception in 1964, TOAP has seen key leaders and strategists at its helm, introducing landmark innovations and growth, supporting inclusivity, transparency and active regulation, adapting to challenges and changes, thereby strengthening the Philippine financial industry through trust.
First to lead TOAP was Graelan C. Yarisantos in 1964 who had the big task of gathering trust officers to steer the trust industry into something the public will fully understand, accept, and embrace.
The subsequent TOAP presidents and board of directors stayed true to TOAP’s mission “to grow the trust and asset management industry to a level at par with international standards,” ensuring that the organization lives its values of Integrity, Fidelity to Client, Innovation, Teamwork, Leadership, Professionalism, and Excellence.
Rafael G. Ayuste, Jr., who served as TOAP president four times between 2005 and 2018, believes that ”assuming an industry leadership role is inherently personal and time-intensive, involving a wide array of responsibilities. This includes regulatory engagements across various trust products and services with regulatory bodies, notably the Bangko Sentral ng Pilipinas, and maintaining ongoing communication with industry stakeholders, such as industry players, clients, and financial associations. The personal reward for this level of involvement is significant, as it reflects active participation and contribution towards the industry’s growth.”
Meanwhile Mr. Te, who is wrapping up his second consecutive term as TOAP president, emphasized that “the TOAP leaders and board members can further solidify the trust industry’s position as a dynamic and forward-looking sector that caters to a diverse range of clients, organizations, and partners while driving sustainable growth and development.”
Through its thought leadership and advocacy, TOAP has led industry discussions on emerging trends, best practices, and regulatory updates. Its active advocacy efforts and promotion of industry standards drive positive change and influences policy decisions that benefit stakeholders.
Its innovation and technology adoption enhances operational efficiency, improves customer experience, and develops cutting-edge services. By staying ahead of technological advancements, TOAP positions itself as a forward-looking organization that drives industry innovation. Additionally, establishing collaboration and strategic partnerships with industry stakeholders, fintech firms, academic institutions, and regulatory bodies foster knowledge-sharing. By working together with diverse partners, TOAP is able to create synergies, explore new opportunities, and drive collective industry growth.
As of this year, 30 institutions consisting of banks and trust corporations are active members of TOAP.
Road Map: TOAP moving forward
TOAP’s position as the authority for trust, fiduciary, and asset management in the Asia Pacific region is reinforced by its proactive approach in maintaining proper safeguards, fostering an effective relationship with regulatory bodies like the Bangko Sentral ng Pilipinas (BSP), and enforcing stringent measures to ensure investor protection and transparency.
Raul C. Diaz, TOAP president from 2008 to 2009, said that “being part of the trust industry for the last 40 years that actively promoted and nurtured the industry to what it is today, it certainly has been a huge leap from when TOAP started 60 years ago. It remains in good hands, with the younger generation now carrying the torch of leadership.”
What then, is in the pipeline?
As it celebrates six decades of actively steering the Philippine financial management industry, TOAP commits to focus on and strengthen the following:
Digital Transformation. Continuing to embrace technology to enhance efficiency, improve customer experience, and streamline processes involves digitizing operations, implementing online platforms for client interactions, and leveraging data analytics to drive informed decision-making. These new digital trust solutions give clients easier access to their accounts, enabling them to make more knowledgeable investment decisions in the process.
Comprising 70% of the Philippine population are the Generation Z and millennials, who contribute to the e-commerce boom. Their financial habits contribute to the growth of all things online, so the creation of easy customer experience and digital capabilities is essential.
Last year, TOAP embarked on a six-month digital marketing ad campaign aimed at reintroducing UITFs in the market. The campaign’s objective was to attract the younger generation to this product through a series of regular social media posts featuring art cards, explainer videos, and album posts. The attractive design, theme, and feel of all materials used were tailored to appeal to the millennial and Gen Z markets.
Sustainable and Responsible Investing. Promoting sustainable and responsible investing practices to align investments with environmental, social, and governance (ESG) criteria.
In 2008, the Personal Equity and Retirement Account (PERA) Act of 2008 was signed into law. PERA helps Filipinos invest in a more comfortable retirement. TOAP has been actively promoting this as part of their financial literacy campaign as it helps strengthen and identify small, medium and long-term financial goals. To demonstrate its commitment in supporting this government initiative, TOAP collaborated with the Bangko Sentral ng Pilipinas last year to conduct a PERA webinar for the families of overseas contract workers and to launch an information campaign on social media.
The annual Trust Consciousness Week, celebrated every March, advocates for financial literacy and consciousness. Aware of the vast market of young professionals and other sectors who remain unengaged in financial wellness, TOAP aims to help the next generation of trust investors attain financial growth through simplified financial opportunities.
The coming years may well see TOAP focusing on aggressively offering ESG-integrated investment products and educating clients on the benefits of sustainable investing.
Enhanced Customer Engagement. Implementing personalized and tailored services to meet the diverse needs of clients, involves deploying customer relationship management (CRM) systems, conducting client feedback surveys, and offering educational resources to empower clients in making informed financial decisions.
The trust industry is in constant exploration for alternative investment products amidst the evolving market demands. Customizing wealth management solutions, launching thematic investment funds, and forming strategic partnerships with fintech companies, industry partners and regulatory bodies help leverage collective expertise and resources to create value for stakeholders.
With 60 years of driving the trust industry into exponential growth in an inclusive financial market, TOAP remains a testament of its enduring commitment with its role as a catalyst of change in the trust, fiduciary, and asset management industry. The innovation, best practices, and sustainable, stable growth of the trust industry have greatly contributed to the continued confidence of investors, upholding the highest global standards of professionalism and integrity.
This article is in the special edition of BusinessWorld In-Depth digital magazine, in celebration of Trust Consciousness Week. Get the full issue for FREE via BWorldX. Visit www.bworld-x.com.
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Mr. Te further expounds that the introduction of a broader range of UITF products increased investment options for investors, giving them a wider range of preferences according to their risk tolerance. It has also contributed to the growth of assets under management (AUM) for trust companies, as it has become a popular choice for both individual and institutional investors. In fact, by end of 3rd quarter 2023, UITF’s AUM was reported to be at P815 billion.
