Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 2215

Loan deal for NAIA upgrade expected this year

PHILSTAR FILE PHOTO

SY-LED conglomerate SM Investments Corp. (SMIC) said it is preparing the funding for the New NAIA Infrastructure Corp. for the modernization of the Ninoy Aquino International Airport (NAIA).

“There’s no problem [with the discussion.]  I think they have the substance and we believe that we have to improve NAIA. So, we are helping,” SMIC Vice-Chair Teresita Sy-Coson told reporters last week. 

The group has already secured funds for the NAIA project from Sy-led BDO Unibank, Inc., according to SMC President Ramon S. Ang.

“They are [going to take over] by September, right? I do not know about the government timeline but after that we can work together,” Ms. Coson said.

In March, the group led by SMC — the New NAIA Infrastructure Corp., formerly called SMC SAP & Co. Consortium — signed the P170.6-billion concession agreement to operate, maintain, and upgrade NAIA.

The group, consisting of SMC, RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp., will take over the airport operations by September.

Ms. Coson said SMIC is not interested in acquiring shares in the consortium.

“No, we are just a bank. Just a lender,” she said.

The New NAIA Infrastructure is planning to build a new passenger terminal building with a total capacity of 35 million passengers per year as part of its commitment to decongest the airport.

The group won the NAIA offering the highest bid for the project at about 82.1% of NAIA revenues to the government.

Aside from the revenue share, the winning bidder is also required to pay an up-front payment of P30 billion and P2 billion annually, according to the Transportation department. — Ashley Erika O. Jose

From waste to taste

QC holds scrap textile fashion show

A MALL fashion show isn’t always on the top of our list for excitement, but such an event in SM Novaliches on April 26 proved to be meaningful and interesting.

Enter Retashow: QC’s Walk to Sustainability, a fashion show that used textile scraps, as Quezon City’s activity for April’s Earth Month, just a few days away from the actual date of Earth Day, April 22. Each piece from the 20 candidates had to be made of at least 70% recycled textiles. The contest was judged by designers Zarah Juan and Eric Pineda and fashion social entrepreneur Pamela Mejia.

The show was a way to promote the Kilo/s Kyusi Store, an initiative by the Quezon City local government that takes a page from Paris’ thrift stores, where secondhand clothes are sold by weight. Aside from making use of what could have been textile waste, proceeds from the store go towards the city’s Learning Recovery program, where public school students with difficulties in math, reading, and science, are tutored by retired public school teachers and returning overseas Filipino workers (OFWs). This is in response to the 2022 Learning Poverty Report by the World Bank that said nine out of 10 Filipino children aged 10 years old are unable to read simple text. “We give jobs, education, and save the planet,” said Quezon City Mayor Joy Belmonte to BusinessWorld after the show.

Back to the show: a lot of the clothes were very impressive. Designer Mark Jay Panganiban’s outfit, for example, used denim scraps to create pants and a bustier, topped off with a coat made from an old blanket. Another impressive piece was Juan Miguel Rosario’s, making a coat and a handbag with recycled bows. It reminded one of a piece by Moschino, and we wouldn’t have guessed that it was made of scrap.

Three winners were awarded that evening. John Montecalmo got 3rd Place for a pink balintawak made with the Filipino technique of weaving cloth scraps to make cleaning rags and rugs. Maricris Pabelico got 2nd Place for another modified Filipiniana dress, this time made of denim scraps. A skirt, also made of denim, unfolded as a cape, bearing a message (which unfortunately we failed to catch, but it was something about the Earth).

A similar denim outfit by Renegade Limpin — a halter top and skirt combo made of denim scraps — won 1st Place, and got the designer P100,000. Mr. Limpin cleverly used only the waistbands of the former jeans to make the skirt for a trompe l’oeil effect, and matched this with a denim bag that bore the words “No to Fast Fashion.” But, as the model glided across the runway, she took off the skirt to reveal that it was also a very well-constructed jacket.

Ms. Belmonte outlined other sustainability initiatives by the Quezon City government in a speech, including Trash to Cashback, an incentivized recycling program, and refilling hubs to help curb the use of plastic sachets. In a mixture of English and Filipino, she said, “The bad effects of plastic are not just statistics, but actual experiences of each of us.”

The mayor also promotes textile recycling because of the concerns about fast fashion, which creates clothes at a fast rate to satisfy constant trend changes — creating a lot of waste as a result.

Ms. Belmonte cited data from the Ellen MacArthur Foundation, saying that a truckload of clothes and used textiles are thrown away in landfills or incinerated every second. “Textile is becoming the new plastic,” said Ms. Belmonte. “Bawal po ang plastic sa Quezon City,” she said, talking about City Ordinance 2868-2019, which banned plastic bags in the city. “Pinapaalala ko sa inyong lahat. Kaya sana ang pati ang mga katabi natin ay hindi plastic (I’m reminding all of you. I hope that the person sitting next to you isn’t a fake),” said the mayor, cracking a joke. — Joseph L. Garcia

Mitsubishi Motors PHL welcomes new chief

MMPC Chairman Noriaki Hirakata toasts with Messrs. Hara and Imaeda. — PHOTO BY JOYCE REYES-AGUILA

Mr. Hara turns over reins to Mr. Imaeda

By Joyce Reyes-Aguila

MITSUBISHI MOTORS Philippines Corp. (MMPC) formally announced the appointment of Ritsu Imaeda as president and chief executive officer (CEO) beginning May 1. The leadership change concludes the three-year term of current chief Takeshi Hara.

The market share of MMPC has trended upward since 2021 and reached 18.2% in 2023 under Mr. Hara. In the same year, the company posted its all-time highest retail sales record when it sold 7,626 units in September last year.

“I came to the Philippines as a man on a mission — to ensure that MMPC continues its legacy of sustainability, (making) significant contributions to society, and of course, delivering top-notch vehicles and services,” Mr. Hara told guests during the turnover ceremony held last week at Shangri-La The Fort. “When I arrived here, I made sure to observe the philosophy of three Mitsubishi principles that are still deeply engraved in the Mitsubishi group today: Shoki hoko (corporate responsibility to society), shoji komei (integrity and fairness), and ritsugyo boeki (global understanding through business).”

Mr. Hara, who has been with MMPC since 1993, recalled the “unexpected challenges” the company faced during his term due to the COVID-19 pandemic and global economic crisis. “We navigated new roads, the new normal. We (launched) new models, such as the Xpander and the all-new Triton, established new dealerships, (saw an) increase in market share. And little by little, (we) regained the trust of our customers,” the executive said of the company’s accomplishments.

“I am confident that MMPC will continuously maintain the respect of the Philippine society as a manufacturer of fair and excellent products. We are always thinking of how to make our customer happier and how to contribute to the society, the nation we love,” he continued. “I am happy and proud that we are able to sell 1.2 million vehicles, giving mobility solutions to Filipinos. We also locally produced 800,000 units. (In doing so), we are able to provide employment and technology.

“We promoted carbon neutrality to protect the environment and for greener future. To be honest, as the one in the driver’s seat, this job was not easy for me. Yet through it all, I made sure that everyone knew the ultimate destination — our main goal, our special program for the Philippines: Life Made Better. These three words became our driving force — a simple yet powerful reminder that many lives depend on us: our valued customers, our trusted business partners, and our dedicated employees, and society,” Mr. Hara added.

The outgoing executive expressed his gratitude to the MMPC group and business partners who, he said, share a common vision. “I am proud to say that I fulfilled my mission, but I owe my success to your invaluable assistance and contribution. I’d like to express my gratitude for the trust, support, and dedication you have provided to the company and me. I am excited to witness the continued success of MMPC and the Philippines as a whole,” he said. Mr. Hara turned over a symbolic key fob to Mr. Imaeda and requested employees and partners to extend the same support that he received to his successor.

Meanwhile, in a video message, Mitsubishi Motors Corp. President, CEO, and Representative Executive Officer Takao Kato recognized Mr. Hara for the “remarkable vision and leadership” he demonstrated that “guided MMPC through the challenges posted by the COVID-19 pandemic and steering (the company) toward record-breaking sales in FY23.” He stressed, “Under his guidance, MMPC expanded our sales network to 84 locations, providing countless individuals with the exceptional Mitsubishi variant experience.”

Mr. Imaeda joined Mitsubishi Motors in 2021 and has had international stints in Europe, Russia, and Puerto Rico. “I have been handed over a heavy task from my predecessor,” he told the attendees of the turnover ceremony. “For Mitsubishi Motors, the Philippines is one of the most important markets that we have focused on, with expectations of growth. I’m surprised at how our products and services are well-accepted in the Philippines. Even though I have been told of this before, it was kind of surprising seeing it with my own eyes.

“I have confidence in the quality of our products and services. I have nothing but appreciation for our customers. I will definitely do my best to further lift up our presence in the Philippines by encouraging not only our Mitsubishi team but also the economy of the Philippines that has huge potential, seeing the energy it contains.”

Mr. Imaeda announced that aside from the launch of the brand-new model of the Mitsubishi Xforce in June 2024, MMPC is “also expecting to introduce three additional models” after the refreshed subcompact SUV is offered to the market.

Pure Energy subsidiary eyes IPO

BW FILE PHOTO

NEXGEN Energy Corp., a wholly owned subsidiary of Pure Energy Holdings Corp., said it is eyeing to go public as it aims to develop solar and wind power projects with a capacity of over 2,350 megawatts (MW).

“We are excited about NexGen’s role in helping to secure the country’s energy supply needs. We support the Department of Energy’s (DoE) goal of achieving a 35% renewable energy share by 2030,” NexGen President Eric Y. Roxas said in a statement over the weekend.

The company is preparing to list its initial public offering (IPO) in July this year and expecting to raise P500 million. The proceeds will be used to fund the projects and develop the said renewable energy capacity over the next 10 years.

NexGen has three main subsidiaries, one of which is SPARC-Solar Powered Agri-rural Communities Corp., which operates three solar farms in Zambales, Bataan, and Bulacan.

5Hour Peak Energy Corp. has a pipeline of over 1,000 MW-peak of solar projects, while Airstream Renewables Corp. has a pipeline of up to 1,330 MW of onshore and offshore wind projects.

Currently, NexGen has eight wind energy service contracts (WESCs) under Airstream, with four more WESCs “in the process of being consolidated.”

The company is also applying for solar energy service contracts with the DoE under 5Hour Peak Energy, “as well as big ticket unsolicited proposals currently being reviewed at several government agencies.”

Its parent company, Pure Energy, is a holding company which has assets in hydropower, solar, wind, geothermal, as well as bulk water and distribution facilities. — Sheldeen Joy Talavera

Addressing gaps in PHL’s digital connectivity

Image via Freepik

With over 7,600 islands, the Philippines has always grappled with the issue of bridging the physical divide that separates its communities. Digitalization was deemed as the solution, and for the most part, it was. But not for everyone.

Paradoxically, despite its status as a nation renowned for its vibrant internet usage, the Philippines harbors one of the most substantial gulfs in digital inclusivity and adoption globally.

According to a World Bank article published on its website, 30 years after its initial connection to the internet, the Philippines’ broadband infrastructure remains woefully inadequate. Without reliable internet connectivity, digitalization — a potent driver of equitable growth, job creation, climate resilience, and sustainability — cannot be enjoyed by everyone.

The data showed that within the Association of Southeast Asian Nations (ASEAN), the Philippines stands out with only 33% of homes having access to fixed internet in 2022, while only 70% of people had a mobile broadband subscription that was active.

Both percentages are significantly lower than the 41% and 101% ASEAN averages, respectively. In ASEAN, the Philippines accounted for over half of the population without access to mobile broadband.

Looking at the “Digital 2024” report made by DataReportal in partnership with We Are Social and Meltwater, there were 86.98 million internet users in the Philippines at the start of 2024, while internet penetration stood at 73.6%. The report estimates that the population of the Philippines was at 118.2 million at the start of the year.

The data suggests that 31.24 million people in the Philippines did not use the internet at the start of 2024, and that 26.4% of the country’s population remained offline at the beginning of the year.

Additionally, the cost of broadband Internet in the Philippines is higher than in its neighboring nations. World Bank data puts Philippine fixed broadband as twice as expensive as the average for ASEAN, amounting to 11% of gross national income (GNI) per capita annually. The cost of mobile broadband was 1.5 times higher than the ASEAN average, at 2% of per capita GNI.

To make matters worse, the World Bank found that the broadband market in the Philippines is one of least invested in and concentrated in all of ASEAN — even if it is the most profitable for the stakeholders. 91% of mobile subscribers are served by two major telecommunications operators, a substantially higher percentage than the 70%-80% shared by middle-class peers in ASEAN.

The level of investment into mobile infrastructure can be gauged by the number of mobile towers per population. TowerXchange, a research organization that specializes in mobile towers, estimated that in 2022, there were 28 mobile towers per 100,000 inhabitants in the Philippines — just one-third of the average among ASEAN peers.

Between 2018 and 2022, the World Bank article noted that there was a decrease in overall investment in telecoms infrastructure, with gross capital formation in telecom infrastructure falling from 0.64% of gross domestic product (GDP) to 0.44%.

Notably, more than 100 developing nations invested at least 1% of their GDP in telecommunications in at least one year between 2006 and 2021, according to data from the International Telecommunication Union (ITU). The Philippines did not.

The World Bank further pointed out that the Philippines has perhaps the least favorable governmental environments in all of ASEAN for inexpensive broadband. Citing the country’s results on the Affordability Driver Index (ADI), the Philippines has been among the least active nations globally in advocating for inexpensive broadband reforms.

Moreover, in all five of the policy areas evaluated in the index, the Philippines’ scores decreased or only slightly improved, indicating that changes to the country’s national broadband policy, competition, spectrum policy, infrastructure sharing, and universal access either stagnated or reversed.

In contrast, 40 of the 57 developing nations that the ADI evaluated between 2017 and 2021 saw an improvement in their average scores. ASEAN neighbors that achieved notable strides were Vietnam (on spectrum), Malaysia (on competition), Indonesia (on infrastructure sharing), and Cambodia (on universal access).

Only four nations in the world — Venezuela, Nicaragua, Haiti, and Sudan — had ratings that were decreasing and worse than the Philippines.’

“Regulatory weaknesses are rooted in the Philippines’ legal system (specifically, the 1931 Radio Control Law and the 1995 Public Telecommunications Policy Act), which have not been updated, despite massive technological change,” the World Bank noted.

“Upgrading its 20th-century regulations is critical if Filipinos are to fully benefit from 21st-century technology. Urgent reforms on broadband policy would hasten the digital transformation the Philippines needs to achieve its goal of becoming a prosperous middle-class society by 2040.”

The article identifies four complementary sets of reforms that could improve access to, the caliber, and affordability of the Internet, and lower barriers to investment and competition.

These are reducing obstacles to investment and entry by doing away with the congressional franchise requirement for the installation of broadband networks; giving different market actors the same opportunity to invest in broadband infrastructure; providing for the effective and adaptable use of the radio frequency spectrum while democratizing spectrum access; and encouraging the sharing of passive infrastructure and requiring government organizations and regulators to coordinate the deployment of infrastructure.

“Equitable access to broadband services is imperative to narrow the digital divide and for more people to benefit from digitalization. Limited internet access curbs digital potential for citizens and businesses, with peri-urban connectivity being critical to future growth,” the World Bank said in a policy note titled “Better Internet for All Filipinos: Reforms Promoting Competition and Increasing Investment for Broadband Infrastructure.”

“Policy makers can build on immediate reforms through the open access bill as an entry point to broader and medium- to longer-term digital connectivity agenda. The cost of inaction — loss of growth opportunity, people remaining unequipped for future jobs, and widening of the digital divide — is too high for the Philippines.” — Bjorn Biel M. Beltran

Beauty isn’t everything

The ‘charities’ in Bb. Pilipinas Charities is for real

IT’S NOT always glitz and glamor for beauty queens. On April 25, the 40 candidates of the Binibining Pilipinas (Bb. Pilipinas) pageant spent a day at the carnival (that is, Araneta City’s Fiesta Carnival in Quezon City) with children helped by non-government organization Childhope Philippines Foundation, Inc.

The Childhope Foundation is dedicated to helping “children in street situations” (what we used to call street children). Throughout the morning, the candidates played with the children in the theme park’s attractions then shared lunch with the children. The lunch came from Pizza Hut, franchised by the Araneta family through PPI Holdings, Inc. The Bb. Pilipinas pageant, which sends its winners as candidates to the Miss International and Miss Globe pageants, is also the Araneta family’s, through Binibining Pilipinas Charities, Inc. (BPCI), a non-stock and non-profit organization. BPCI was founded by Stella Marquez Araneta, the world’s first Miss International, and the wife of Araneta Group chair Jorge Araneta.

“Charities” in BPCI’s name isn’t a placeholder. “The charity is the heart of the pageant,” Diane Romero, Executive Director of the J. Amado Araneta Foundation and Interim Executive Director of BPCI told BusinessWorld. “Whatever we raise during the pageant, napupunta iyan doon sa charities (it goes to the charities).”

“BPCI is focusing its efforts on children’s welfare through strategic partnerships and volunteer work. Advocating for children has always been the thrust of the organization, so expect our Binibinis to be involved in more charitable works and advocacy campaigns,” she said in a statement. Their children’s four-point welfare thrust includes education, health, resilience, and protection. “We partner with on-the-ground NGOs; kung sino iyong may reach sa mga batang ito (which can reach these children) directly,” she said.

It turns out a beauty queen doesn’t have to be just pretty: for Bb. Pilipinas, it looks like she has to be kind as well. Ms. Romero said that the “girls” have expressed interest in volunteering. Even if the focus for this year is on children’s welfare, the candidates are encouraged to fuse their own advocacies with it. “We open doors for the girls to also use their platforms as ambassadors,” said Ms. Romero. “From the start, our founder, Mrs. Araneta, (for her) it’s a privilege to have a platform and that’s a responsibility.

“That’s the reason why we have the pageant: to help.” — Joseph L. Garcia

Current affairs

PHOTO BY KAP MACEDA AGUILA

Like traffic, EV uptake slows down, speeds up in places

By Brian M. Afuang

REPORTS OF THE DEMISE of EVs are greatly exaggerated, S&P Global Mobility paraphrased Mark Twain in a forecast released in late 2023. The research firm said it expects global sales of battery electric passenger vehicles to reach 13.3 million units in 2024, accounting for around 16.2% of passenger vehicle sales. Last year, 9.6 million all-electric vehicles took a 12% share in the tally of vehicle deliveries worldwide.

Citi Research’s own data on the matter, released in mid-April, presents a more conservative outlook: 12% growth this year versus S&P’s nearly 40% forecast. Citi Research also placed EV uptake in key regions to rise, to about six percent in China and 26% in the US, while predicting a decline in Europe. It added that the global penetration rate will be at 13% this year, slightly up from 2023.

Actual statistics provided in April by Rho Motion show that S&P and Citi Research were not far off the mark.

The UK-based intelligence firm reported global EV sales soared 21% in the first quarter of the year compared to the same period in 2023, reaching 3.1 million units worldwide. In March, 1.2 million EVs were sold, a significant 12% increase from the same month last year.

Rho Motion called the rise a “promising start to the year” even as it noted that Europe was “considerably” not as amped up as other regions were during the period. In the first quarter, China continued to lead the grid with a 31% growth rate while also charging up sales in markets in Southeast Asia and Latin America — EV deliveries in these regions, along with markets classified under “rest of the world,” surged 21% in Q1, boosted by exports of China-made models. North America saw its EV sales increase by 13%.

EV deliveries in EU markets, while registering a respectable seven-percent expansion, were short-circuited by a 21% decline in Germany — home to some of the world’s largest producers of all-electric vehicles.

The outage comes largely as a result of the German government abruptly halting its EV subsidy program in mid-December last year as part of measures to trim down the state’s 2024 budget. The move left some car makers initially footing the bill for customers who had ordered their EVs around the time the subsidy was scrapped. But car makers have announced they will stop the dole-outs soon (some of them may already have, or at least have reduced the amount).

Rho Motion noted that EV saturation in Norway, where nine out of 10 cars are all-electric, also tempered sales results in Europe.

For S&P, fluctuations in the EV sector lead the market “full circle to existing internal combustion technology.” Consumers who regard all-electric models as imperfect solutions to their mobility requirements — whether these are related to charging infrastructure, driving range, comparably high purchase cost, or battery-disposal concerns — are drawn to internal combustion engine (ICE) options driven by alternative technologies.

Newer hybrid-powered cars that can travel farther on electric power alone are proving to be more relevant in certain markets where EVs have yet to become practical choices. Citi Research cited that plug-in hybrids, at present, “can be viewed as an investment in future EV share” as these vehicles could prompt more consumers to ultimately adopt all-electric models when they are more ready to do so.

Some automakers are developing e-fuels for ICE cars as another energy source. E-fuels can power combustion engines with significantly reduced emissions and are more sustainably produced than conventional fossil fuels. The technology addresses companies’ carbon-reduction goals while providing the market with an option other than a complete shift to EV.

In its latest analysis, Adamas Intelligence acknowledged EV makers and their investors have indeed ran into some challenges recently. But the Canada-based data provider was quick to point out the slowdown in the EV sector can be expected, given the “breakneck pace” at which deliveries of all-electric vehicles have progressed in previous years.

As statistics have shown, EV uptake can grind to a crawl at certain times and places — especially so when consumers opt to take routes more familiar, if not relevant, to them.

Converge: What it takes to be the country’s most awarded internet service provider

From left: Converge Chief Operations Officer Jesus C. Romero, Converge CEO and Co-Founder Dennis Anthony Uy, Converge President and Co-Founder Maria Grace Y. Uy, Ookla President Stephen Bye, and Converge Chief Commercial Officer Benjamin Azada

Coming off from a quadruple win at Ookla’s Speedtest Awards and taking its place as the Fastest Internet Provider in the Philippines, Converge shares the secret to how this feat came together: design a resilient, scalable, and future-ready network then let it work for the people.

“We’ve designed the network from day one not only to deliver the experience you have today but to be able to sustain it over time. Some of the metrics that Ookla mentioned that we did particularly well in were latency, jitter, and packet loss. We have one of the lowest latency networks in the country today, and that’s only possible since we designed it that way from the start. We always bought the latest and the greatest technology,” said SEVP and Chief Operations Officer Jesus C. Romero.

This commitment to invest in the latest network technology is also key for preparing for the next slate of technologies that are now on the horizon including AI and the metaverse.

Converge is the only ISP in the country with an end-to-end pure fiber network, meaning its flexibility and scalability in terms of technological upgrades is second to none, said Converge CEO and Co-Founder Dennis Anthony Uy.

“The technology we built is GPON (gigabit ethernet passive optical network) to the home. This means it’s fiber all the way to the home and there are no active components in the network. So that means when a particular technology comes, you will only need a software tweak. This is how fast we can evolve because the time will come when there will be applications demanding bigger bandwidth like AI and VR, and all of this amazing tech that will come into our lives. This is in preparation for that,” explained Converge CEO and Co-Founder Dennis Anthony Uy.

According to Stephen Bye, Ookla CEO, the Converge network is put literally to the test via the thousands of Ookla speed tests taken by its users every day.

“We have a robust statistical model where we look at what the median is, what the variance is, what the distributions are and then based on the data we collect, we compare that to every operator in the market. We compare on multiple different dimensions and then we look for a statistically significant difference. Where that difference exists, we grant that to the winner,” said Stephen.

“And very clearly having a great network underneath that is very important so if you have a great speed, that’s one thing, but to win on multiple dimensions actually takes other aspects in terms of the operations and design of the network,” he added, underlining that a multitude of factors, including customer service, contributed to the wins.

How does Converge leverage its formidable network to respond to the needs of ordinary Filipinos? Converge Chief Commercial Officer Benjamin Azada responds, “it’s all about tailoring the product, which is the network, to their needs. We have done that very well.”

“Having an excellent network is one thing, but how do you experience your connection at home? Or at your business? These digital experiences and lifestyles are encapsulated by these Ookla metrics and we’re glad to have surpassed competition in giving these rich digital experiences to Filipinos,” added Azada.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

PHINMA eyes school acquisitions in Metro Manila, Cavite, and Davao

PHINMA Corp. aims to further expand its education business through potential acquisitions of schools in Metro Manila, Cavite, and Davao, its president said.

“We’re looking for schools in Cavite, Davao, and one more in Metro Manila,” PHINMA Corp. President and Chief Operating Officer Chito B. Salazar, Jr. told reporters last week.

PHINMA Corp. has business interests in the education sector through its unit PHINMA Education Holdings, Inc.

Mr. Salazar, who also serves president and chief executive officer of PHINMA Education, said the company is eyeing to close the talks on the planned acquisition in Metro Manila by the third quarter.

Other expansion moves of PHINMA Education include a branch in San Pablo, Laguna, the entry of PHINMA University of Pangasinan into Tarlac and La Union provinces, and the introduction of PHINMA Araullo University into Gapan, Nueva Ecija.

“We’re really expanding aggressively,” he said.

On international expansion, Mr. Salazar said that PHINMA Education is looking to enter Vietnam to go along with the company’s presence in Indonesia. The company manages Horizon Karawang in West Java.

“We’re probably seriously looking at Vietnam by the end of this year. If ever we purchase it, maybe it would be late 2025 already,” he said.

“We’re looking at schools that are tertiary and probably at about three to five thousand students today. That’s what we’re looking at for us to grow,” he added.

Mr. Salazar said that PHINMA Education is expected to have 50,000 students in Indonesia within the next five years and 400,000 students within the next 10 to 15 years.

In contrast, PHINMA Education expects to have 350,000 students in its Philippine school network within the next five years.

PHINMA Education recorded an 18% increase in enrollment for the first semester of school year 2023-2024 at 146,546 students across the Philippines and Indonesia.

PHINMA Corp. has allocated a capital expenditure budget of P4.5 billion for 2024, with almost half earmarked for its education business.

In 2023, the conglomerate saw a 6.5% jump in its net income to P1.63 billion as consolidated revenues surged by 20% to P21.27 billion.

PHINMA Corp. shares were last traded on April 26 at P20.45 per share. — Revin Mikhael D. Ochave

Style (04/29/24)

Samsonite launches 2nd Luggage Trade-In Campaign

SAMSONITE is holding its annual Luggage Trade-in campaign: customers are invited to participate by bringing pre-loved luggage — any brand, size, and condition — to select Samsonite stores from April 25 to June 15 and get up to 35% off the Niar and Astra models, while stocks last. Materials from the traded-in luggage will be repurposed into sustainable school chairs through a continuing partnership between Samsonite and Envirotech Philippines, a recycling company specializing in producing products from plastic waste. On its first run, over 1,000 pieces of luggage were melted, molded, pressed, and assembled into 120 recycled chairs, filling five classrooms in Labo Elementary School in Marinduque. Through this initiative, over four tons of plastic waste were kept from potentially ending up in landfills and the ocean and saved more than 100 trees. Moreover, these hard-plastic chairs are made to last for more than 15 years. Astra is Samsonite’s luggage line characterized by its radial grooves and stylish design elements. Astra’s features include a TSA combination lock, expanders for added capacity, and a practical interior for flexible packing. The Astra line’s selections are available in 55cm, 68cm, and 76cm sizes and come in graphite, red, and blue. Meanwhile, Niar is Samsonite’s dedicated line of spinner suitcases. It is equipped with double wheels, integrated carry handles, a dual-tube trolley puller, compression straps, a TSA combination lock, and an expander. It’s available in 57cm, 66cm, and 78cm sizes and comes in graphite and silver colors. In partnership with World Wide Fund for Nature Philippines (WWF-PH), Samsonite will donate P100 for every trade-in transaction. Samsonite is available at Greenbelt 5, Central Square Mall, Shangri-La Plaza, SM Mall of Asia, SM Megamall, Podium, Glorietta 3, SM North EDSA, TriNoma, Robinsons Magnolia, Paseo de Sta Rosa, Outlets at Lipa, SM Southmall, and SM Clark.

Uniqlo releases collab with Marimekko

UNIQLO  announced the May 10 launch of a new collection in collaboration with Finnish lifestyle design house Marimekko. The Summer 2024 limited-edition collection features simple, comfortable UNIQLO pieces with Marimekko’s unique and bold prints. This latest collection features six Marimekko prints that embody the feeling of summer fun from four celebrated Marimekko designers. The collection includes archival patterns from three decades: the ’50s, the ’60s and the ’70s. Maija Isola’s bold and graphic Melooni (melon) and Pentti Rinta’s small scale repetitive Asema (station) meet with Maija Isola’s abstract floral print Ruukku (pot for flowers) and Katsuji Wakisaka’s Demeter. To bring rhythm to the otherwise abstract mood, the collection features the wavy Lirinä (the sound of gurgling water) also by Rinta, while Vuokko Eskolin-Nurmesniemi’s simplified Galleria (gallery) brings a powerful expression to the collection. The new collection offers a wide array of dresses that are perfect for summer, along with matching accessories: bucket hats, canvas slip-ons, and round mini shoulder bags. The new collection also includes items for babies. Select items will be available in all stores in the Philippines. View the collection at https://www.uniqlo.com/ph/en/contents/collaboration/uniqloxmarimekko/24ss/

Vision Express brings Cartier Set for You

VISION Express is introducing the Cartier Set for You Eyewear, available exclusively at Vision Express Greenbelt 5. Customers can design their one-of-a-kind sunglasses, choosing from a wide range of shapes, colors, and signature details. There are almost 800 possible design combinations, with the option of adding a personalized engraving of your initials as a finishing touch. “At Vision Express, we are dedicated to offering our customers the utmost in luxury and customization,” said Neelam Gopwani, Managing Director at Vision Express. “The Cartier Set for You exemplifies our commitment to providing an unmatched exclusive and bespoke experience to our valued customers.” One selects a model, a lens shape, a lens color, metal finish and color on the temple arms, and size — and then an engraving option. To schedule a personalized consultation, visit https://visionexpress.ph/.

SSI has summer collections of top brands

SSI unveils an array of Spring/Summer fashion offerings from some of the world’s most sought-after brands. Indulge in the sophistication of Calvin Klein, the timeless Americana charm of Tommy Hilfiger, the classic British heritage of Marks & Spencer, and the Italian luxury craftsmanship of Ferragamo. These are available at Trunc.ph, SSI’s multi-brand store. Single-brand online options include Bananarepublic.com.ph, Gap.com.ph, and Oldnavy.com.ph. New and existing users of the My SSI Life loyalty app — downloadable via App Store, Google Play, or Huawei AppGallery — can unlock exclusive rewards from widely known brands. Promotions offered until Aug. 31 include 10% off on regular-priced items at Clarks (15% for Elite Members); 15% off on regular-priced items at Dune London (20% for Elite Members); 10% off for all shoppers at Kenneth Cole (15% off on regular-priced items for Elite Members); 10% off on regular-priced items at Michael Kors (15% for Elite Members); 20% off on regular-priced items at Springfield (25% for Elite Members); and 20% off on regular-priced items at Women’secret (30% for Elite Members). E-voucher redemption is valid until Oct. 31. Marks & Spencer’s M&S Rewards is now part of My SSI Life. Points earned through the M&S Rewards program will be transferred to My SSI Life once verified M&S Rewards members register and sign up on the app. The M&S Rewards program will be ending on May 31, in stores and online. There will be 30% off on regular-priced items at Banana Republic Greenbelt 5 from April 29 to May 5, and online at bananarepublic.com.ph from April 29 to May 3. Exclusive discounts await at Marks & Spencer’s toddler wear, men’s shorts, and multipack jersey tops and bottoms at select stores, marksandspencer.com.ph, and Trunc.ph throughout April and May. Until April 30, HSBC cardholders can enjoy a discount of P1,000 for a minimum spend of P10,000. For the same period, Trunc Show — an edit for SSI’s designer luxury brands — is offering discounts ranging from P3,000 off for a minimum spend of P30,000 to P15,000 off for a purchase of P150,000. For more information and the complete list of brands, visit www.ssilife.com.ph.

Easier brows with Ever Bilena

EVER BILENA has a line of eyebrow tools to shape them in a much easier way. The Ever Bilena Pro Studio Finish Eyebrow Pen (P199) boasts a three-pronged tip for creating natural hair-like strokes. Choose from “Wood” (a cool brown), “Tweed” (a warm brown), or the new on-trend “Graphite” (a grayish brown) to match your hair color. The Spotlight Megahit Eyebrow Pen (P325) features a fine tip for precise application and a formula that’s both smudge-proof and waterproof. It comes in three shades: “Defining Brown,” “Defining Black Brown,” and “Defining Taupe.” Follow @eb.directsales on Facebook and Instagram for more information and makeup inspiration.

How may the Philippines be affected by the Court of Appeals 2024 Writ of Kalikasan?

ERIK OHSMHHK-UNSPLASH

On April 17, the Fourth Division of the Court of Appeals, among other actions, prohibited all concerned in the Philippines from applying for “contained use, field testing direct use as food or feed, or processing, commercial propagation, and importation of genetically modified organisms.”1

The said provision stopped all activities in the country involving imported genetically modified plants and products. The order covers research, field trials, and commercial propagation of GM plants, unless their seeds or planting materials are locally produced.

The way they penned their decision, the Justices not only acted on the petition with respect to Golden Rice and Bt eggplant, but also prohibited all importation activities of GM products such as corn, soybeans, and soya meal.

In this case, the Justices granted the Petition for a Writ of Kalikasan and Continuing Mandamus filed by Magsasaka at Siyentipiko para sa Pag-unlad Agricultural (Masipag), GreenPeace Southeast Asia – Philippines and several others. The case respondents included the Secretaries of Agriculture, Environment and Natural Resources, and of Health, the Director of the Bureau of Plant Industry, the Philippine Rice Research Institute (PRRI), and the University of the Philippines – Los Baños.

The last two respondents are included because the petition targeted on stopping the use of Golden Rice in the Philippines, which PRRI had developed along with the International Research Institute.

UP Los Baños scientists had developed a novel eggplant which kills the eggplant fruit and shoot borer pest, thus increasing the productivity of eggplant farms, and potentially incomes of eggplant farmers.

The other respondents regulate the use of GM plants and products.

IMPACT ON THE FEED AND LIVESTOCK INDUSTRIES
The importation ban of GMOs has grave adverse effects on the country’s swine and poultry industries. Animal feeds comprise 60% to 70% of the total cost of pork, poultry meat and egg production. Because of the critical role of feed to these industries, feed production has evolved into a multi-billion industry.

Yellow corn and soya meal are the most important feed ingredients in animal feeds. The country imports yellow corn and soya meal, all of which are genetically modified.

The corn and livestock industries of the country are expected to be severely hit by the CA decision. Table 1 shows the demand and supply of corn and soybean meal in the country.

Roughly 70% of the corn supply, including imported corn, goes into animal feeds. Although imported corn used in feeds made up about 8% of supply in the last two years of production, more than 50% of locally produced corn is yellow and genetically modified.

Soybean meal is another important feed ingredient, most of which is imported. The country has hardly any local production of soybeans. In the last two years ending 2023, the country’s imports of soybean meal were 90% of total supply.

ECONOMIC IMPACTS
Using an economy-wide model of the Philippine economy, a study — “Selecting Locally Optimal Low Low-Level Presence (LLP) Threshold of Unapproved GM Events in the Philippines”2 — simulated the possible economic impacts of the import ban involving feed ingredients. With 50 industries, the model is used to simulate policy impacts. In doing this, equilibrium solution is forced such that there are no imports of corn and soybeans.

Table 2 shows the average economic effects of the decision on local production, imports, exports, and prices. The various industries are grouped into primary agriculture (with highlights on corn and livestock as two stand-alone industries) natural resources, processed agriculture, industrial products and services.

Local production of corn and livestock take a dive. Corn declines by 29.7% while livestock production falls by 24.5%. Primary agricultural production, however, increases its production as resources are reallocated from corn and livestock towards other primary agricultural industries. Natural resources output expands by 20.82%, Economic resources appear to flow away from industrial products and services.

As expected, imports of corn and feed ingredients decline. Feed ingredients are subsumed in livestock production, noting that nearly 70% of these products are comprised of feed ingredients. In the simulation exercise, the computation of the equilibrium is stopped at near zero for imported corn and livestock.

Interestingly, there appears to be a significant decrease in trade. On average, the product groups are importing and exporting lower imports. Corn and livestock exports decrease by 29.7% and 24.5%, respectively.

Prices comprise a major concern, particularly as authorities monitor food price inflation. Corn prices increase by 11.9% while prices of livestock products by 37.5%. The prices of processed and other primary agricultural products increase as well, but not as much as those of corn and livestock.

INCOME DISTRIBUTION EFFECTS
Table 3 portrays how incomes are distributed among the 10 households of the model. The CA decision appears to favor richer households. The richest household, for example, see their incomes increase by 13.7%, while the poorest, by 2.5%.

OVERALL ECONOMIC EFFECTS
Gross domestic product (GDP) in current prices increases by 2.71%. Headline inflation is 7.026%. The decision apparently aggravates the food price inflation problem of the country. Economists use this indicator to see how well off the population is with this decision. Each year, since this is an annualized model, the economy loses P66.1 billion. The loss is not large, but the country is worse off still. This model remains to be a full employment model, meaning all resources are allocated. However, in real situations, there may be delays in the movement of resources from one industry to another, and thus in the short run, the decision provides authorities with another problem to solve to offset the transitory unemployment due to the movement of resources.

1 See par. 8, page 142, CA-G.R. SP No. 00038

2 The simulations conducted in this model comes from a study done by Manalo, A., Ramon, G., and Clarete, R. (2024), “Selecting Locally Optimal Low Low-Level Presence (LLP) Threshold of Unapproved GM Events in the Philippines.”

 

Ramon L. Clarete is a professor at the University of the Philippines School of Economics.

Charging forward

PHOTO BY KAP MACEDA AGUILA

The most powerful Porsche Cayenne ever is also a plug-in hybrid

By Kap Maceda Aguila

THE CAYENNE SUV was, once upon a time, a savior of the Porsche brand that had always been noted for its beautiful and powerful cars but never quite appealed to the pragmatic set and hence, never generated meaningful sales numbers.

Now 22 years old, the nameplate, together with its smaller Macan sibling, have continued to be a more practical choice to those who know what the Stuttgart-headquartered brand stands for, but also need their druthers in practicality. It’s a gift that keeps on giving for Porsche.

Last year, the brand delivered, by its own reckoning, 320,221 vehicles worldwide — three percent more than in 2022. Of this, the Cayenne accounted for 87,553 units. Even as this number represents a contraction of eight percent (with the decline “explained by the model change — including the staggered launch of the new generation worldwide since the market launch in April, as well as a software update for the hybrid models to ensure the best possible quality,” reported Porsche) the Cayenne was still the top-selling nameplate.

Speaking of hybrid, Porsche had long been working on an electrified powertrain for the Cayenne. It first floated the idea in 2005, before presenting a Cayenne Hybrid at the IAA 2007; a production-version traditional hybrid was rolled out in 2010. Four years later, the Porsche Cayenne S E-Hybrid (a PHEV) followed suit.

That last model has now been supplanted by the Porsche Cayenne Turbo E-Hybrid. Available in SUV and Coupé forms, it is said to be the “crowning touch” of the Cayenne model line, boasting a robust V8 engine supplemented by an electric motor. The plug-in hybrid electric vehicle (PHEV) has 729hp and 950Nm on tap, and Porsche said that the new hybrid technology it banners helps the vehicle realize “greater electric range” and “faster charging.”

PGA Cars is now making available this model to Filipino customers — the first time local car buyers can get their hands on an electrified Cayenne, which charts the nameplate’s path into a new chapter that is more eco-conscious, while simultaneously pushing the envelope of performance.

This, of course, is in line with the overall strategy of the sports car brand to systematically electrify its vehicle portfolio. Reuters reported that the Porsche brass has committed to realize 80% of sales from electric vehicles (EVs) by 2030. Only the iconic 911 is expected to remain internal combustion engine (ICE)-powered in the foreseeable future, a top executive had said.

Still part of the nameplate’s third generation, the new Porsche Cayenne Turbo E-Hybrid surpasses the abilities of the aforementioned Cayenne S E-Hybrid as engineers succeeded in “achieving significant gains in electric range and performance.”

Total system output includes 130kW (176ps) from the electric motor, adding to the “extensively reworked” 4.0-liter twin-turbo V8 mill which itself submits 599ps. All these numbers translate to, among other performance attributes, a standstill-to-100kph time of 3.7 seconds — onward to a top rate of 295kph.

As a PHEV, the Porsche Cayenne Turbo E-Hybrid, maintains Porsche, offers up to 82km of pure electric range — also due in part to a higher-capacity battery (rated at 25.9kWh). A new 11-kW onboard charger can fill up that battery with juice in as little as 2.5 hours.

Another model highlight is adaptive air suspension, featuring new two-chamber, two-valve technology — leading to increased comfort and safety. The tech allows for the adjustment of the rebound and compression stages of the suspension — itself “(combining) confident handling in dynamic cornering with comfort-focused characteristics in slow driving situations and maximum suppression of pitch and roll. Porsche Torque Vectoring Plus (PTV Plus) is also standard in the Cayenne Turbo E-Hybrid. Porsche Dynamic Chassis Control (PDCC) and rear-axle steering are available as options,” explained PGA Cars.

Among aesthetic changes — also resulting in enhanced performance — are Turbo-variant-specific front-fascia styling: larger cooling air intakes with gloss-black airblades, trims on the wheel arches, body-colored rear bumper, and two twin tailpipes in brushed stainless steel.

In the cabin are aluminium inlays in the dashboard and the door panel; the roof lining is in Race-Tex material. The Turbo E-Hybrid receives a GT sports steering wheel, a mode switch for fast and direct selection of the desired driving mode, and 18-way adjustable leather sports seats. Fourteen-way adjustable leather comfort seats are also available.

The model also reflects updates to the nameplate made last year: an all-digital instrument cluster in a curved and free-standing design with variable display options, a redesigned center console, and an optional passenger display. Its signature four-point high-resolution HD-Matrix LED headlights “offer greater comfort and safety in the dark.”

1...2,2142,2152,216...13,127Page 2,215 of 13,127
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube