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Gross borrowings hit P2.19 trillion

BW FILE PHOTO

THE NATIONAL GOVERNMENT’S (NG) gross borrowings increased to P2.193 trillion in 2023 amid a rise in external debt, the Bureau of the Treasury (BTr) reported.

Data from the BTr showed that total borrowings went up by 1.38% last year from P2.163 trillion in 2022.

This was also slightly below the P2.207-trillion borrowing program for the year.   

Gross external debt jumped by 7.49% to P559.035 billion last year from P520.091 billion in 2022. This was higher than the P553.5-billion targeted borrowings from foreign sources.

External debt was composed of P204.279 billion in program loans, P163.607 billion in global bonds, P135.858 billion in new project loans and P55.291 billion in Islamic certificates.   

In January, the Philippine government raised $3 billion from a US dollar bond issuance and its second global bond offering under the Marcos administration.

It also generated $1 billion from the sale of its maiden offering of Sukuk bonds in December.

Meanwhile, gross domestic debt slipped by 0.6% to P1.634 trillion last year from P1.643 trillion in 2022. This accounted for 74.5% of borrowings during the year.

The BTr was expected to borrow P1.654 trillion from domestic sources last year.

Broken down, it raised P1.18 trillion from fixed-rate Treasury bonds (T-bonds), P252.091 billion from retail T-bonds, P119.531 billion from Treasury bills (T-bills).

It also collected P71.78 billion from retail onshore dollar bonds and P15 billion from tokenized bonds.

The Marcos administration offered its first retail dollar bonds in late September. It also conducted its first-ever sale of tokenized Treasury bonds in November.

In December alone, gross borrowings jumped by 55% to P92.096 billion from P59.434 billion a year ago.

Domestic borrowings resulted in a net redemption of P6.186 billion versus the P32.956-billion debt in the same month in 2022.

The BTr raised P20 billion from fixed-rate T-bonds while T-bills stood at a net redemption of P26.186 billion.

On the other hand, external debt skyrocketed (271.2%) to P98.282 billion in December from P26.478 billion.

This consisted of P26.285 billion in new project loans, P16.706 billion in program loans, and the P55.291 billion raised from the Sukuk offering.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the single-digit growth in borrowings may be due to the narrower budget deficit.

The NG’s fiscal deficit narrowed by 6.32% to P1.51 trillion in 2023 from P1.61 trillion in the year earlier.

This brought the deficit-to-gross domestic product (GDP) ratio to -6.2% at the end of the year, a tad higher than the -6.1% government target but lower than the -7.3% ratio recorded at end-2022.

The budget deficit ceiling is set at P1.39 trillion this year, or 5.1% of GDP.

“Low growth in borrowings would bode well to temper the growth in the outstanding National Government debt stock and would help bring down the debt-to-GDP ratio to below the international threshold of 60%,” Mr. Ricafort added.

The debt-to-GDP ratio stood at 60.2% at the end of 2023. This was lower than 60.9% at end-2022 and the 61.2% target set by the government.

Mr. Ricafort said that possible policy easing in the middle of the year could also reduce borrowing costs.

“Possible Fed rate cuts later this year that could be matched locally could somewhat help ease debt servicing costs and overall borrowings,” he added.

The Federal Reserve raised its policy rate by 525 basis points (bps) to 5.25-5.5% from March 2022 to July 2023.

Analysts anticipate that once the Fed begins cutting rates, the Bangko Sentral ng Pilipinas (BSP) will soon follow.

From May 2022 to October 2023, the Monetary Board raised borrowing costs by 450 bps, bringing the benchmark rate to 6.5%.

The government’s borrowing program for this year is set at P2.46 trillion, with P1.85 trillion to be raised from the domestic market and P606.85 billion from foreign sources.

In February, the government raised P584.86 billion from its offering of five-year retail Treasury bonds. — Luisa Maria Jacinta C. Jocson

AMLC expects more investigations into terrorism financing

Philippine peso bills are pictured being received at a money remittance center in Makati City, Sept. 19, 2018. — REUTERS

THE ANTI-MONEY Laundering Council (AMLC) is optimistic that government agencies will be able to increase the number of investigations and prosecutions of cases related to dirty money, which could help the country exit the Financial Action Task Force’s (FATF) “gray list.”

In an e-mail interview with BusinessWorld, AMLC Executive Director Matthew M. David said the Philippines is continuously improving its anti-money laundering and counter-terrorism financing (AML/CFT) regime through the efforts of government agencies and the private sector.

“We are optimistic that there will be a continuous increase in ML/TF investigations and prosecutions this 2024,” he said. “There is good momentum, and all relevant government agencies have signified their strong commitment to continue implementing and improving the country’s AML/CFT framework.”

Based on the FATF’s February update, the Philippines failed anew to exit the gray list or list of jurisdictions under increased monitoring. The country has been on the gray list since June 2021.

The FATF last month urged the Philippines to implement its action plan to address strategic deficiencies as soon as possible, as all deadlines expired in January 2023.

Even though the Philippines remained on the gray list, Mr. David said the FATF recognized its high-level commitment and the steps it has taken to improve its AML/CFT framework.

“Through collective action of relevant government agencies, such as the Philippine National Police (PNP), National Bureau of Investigation (NBI), Intelligence Services of the Armed Forces of the Philippines (ISAFP), and National Intelligence Coordinating Agency, the Philippines has shown significant increase of terrorism financing identification and investigation in line with the country’s risk profile,” he said.

SEC’S EFFORTS
Mr. David said the PNP, the NBI, the Philippine Drug Enforcement Agency, the Bureau of Customs, the Securities and Exchange Commission (SEC), and the Department of Justice, all helped increase investigations on money laundering.

“Through their efforts more ML investigations were conducted which led to an increase in ML prosecutions,” he said.

For its part, the SEC said it continues to support efforts for the Philippines to exit the gray list by purging delinquent corporations.

“Our assignment is immediate outcome number five pertaining to beneficial ownership. The tall order for us is to hit 65% compliance. Presently, we are 50.7% compliant,” SEC Chairperson Emilio B. Aquino told reporters on the sidelines of a signing event last week.

On Feb. 16, the SEC issued an order that suspended the corporate registration of 117,885 corporations for failing to submit their annual reports for over five years.

“At least 117,000 companies from circa 1975 to 2008, they have been there in our database, but they have not been complying with the submissions of their annual financial statements (AFS) and general information sheets (GIS) where they are supposed to lodge their beneficial ownership. They are deemed delinquent,” he added.

Mr. Aquino said the suspended corporations have 30 days from the order’s issuance to dispute or settle the matter.

“They are suspended. Not revoked yet. They have a window of opportunity for them to still go back,” he said.

About 30% of the suspended companies are nonprofit corporations while the remaining 70% are stock corporations, according to Mr. Aquino.

Aside from exiting the gray list, he said the purging of corporations is also mandated under Republic Act No. 11232 or the Revised Corporation Code of the Philippines.

On Friday, the SEC signed data-sharing agreements with nine law enforcement agencies to address money laundering and terrorism financing. The data-sharing agreements allow the law enforcement agencies to have access to beneficial ownership information of corporations registered with the SEC.

These agencies include the NBI, Philippine Drug Enforcement Agency, Insurance Commission, Cagayan Economic Zone Authority, Department of Justice, Philippine Center on Transnational Crime, Department of Agriculture, ISAFP, and Philippine Economic Zone Authority.

At the same time, AMLC’s Mr. David said the Philippines is actively pursuing ML investigations relating to crimes with foreign and transnational elements as it continues to strengthen coordination with foreign counterparts,” he said.

In its 2022 Terrorism and Terrorism Financing Risk Assessment report published last year, the AMLC said a total of 133 terrorism financing cases have been investigated by the AMLC and law enforcement agencies from 2021 to August 2022.

The FATF did not provide specific numerical targets of investigations related to dirty money to exit the gray list, but the Philippines is continuously implementing measures to address all remaining deficiencies as soon as possible, Mr. David said.

Under Executive Order No. 33 and through the National AML/CTF Counter-Proliferation Financing Coordinating Committee (NACC), law enforcement agencies and prosecutors should have adopted policies to ensure the effectiveness of the country’s measures against dirty money.

“We wish to stress that country is doing what it can to exit the gray list, at the soonest possible time. Having said this, the date as to when the country would be considered to have accomplished all action plans and trigger exit from the list rests on the determination of the FATF,” Mr. David said.

Based on the FATF’s recent update, the country still needs to address strategic deficiencies by showing effective supervision of nonfinancial businesses and professions as well as casino junkets.

The country should also enhance and streamline the access of law enforcement agencies to beneficial ownership information.

Aside from more investigation and prosecutions, the country should also improve its implementation of cross-border declaration measures on all main international seaports and airports.

Mr. David said addressing all the remaining deficiencies requires a whole-of-nation approach. — Revin Mikhael D. Ochave with KBT

P2 trillion worth of investment leads as of January — BoI

THE BOARD of Investments (BoI) has around P2 trillion worth of investment leads, mostly in renewable energy, as of January, an official said.

Ma. Corazon Halili-Dichosa, executive director of BoI’s Industry Development Services, said these investment leads comprise 331 projects, which are mostly in the renewable energy sector.

“As of January of this year, we actually have in our pipeline around P2-trillion investments that are accounted for by 331 projects,” she told reporters last week.

Ms. Halili-Dichosa said these big-ticket renewable energy projects include solar power projects and both offshore and onshore wind projects.

Some of the investment leads are in the manufacturing and data center industries, she added.

Renewable energy, information and technology, and manufacturing were among the top five performing sectors in terms of approved investments last year, accounting for over P1.1 trillion of the total approved investments.

“They are in different stages of engaging with us, but they have already expressed their interest. It is a matter really of getting final approval from their boards. But they have actually contacted us, and we have actually talked to them,” Ms. Halili-Dichosa said.

She said these investment leads are from a mix of foreign and local companies.

“For some of them, we only know the estimated project costs, which are sometimes with or without employment figures. But as to the structure of the company that will eventually apply to us, we still don’t know that,” she added.

However, Ms. Halili-Dichosa said that the investments may not register with the BoI. This is similar to how some of the projects it endorses for the green lane treatment are registered with other investment promotion agencies. 

“The main objective is to get them to invest in the Philippines,” she added.

In February, the BoI announced that it had endorsed P244 billion worth of renewable energy projects for green lanes, comprising seven projects.

The endorsed projects include the 1.2-gigawatt joint wind power projects of Triconti Windkraft and Sea Wind Holdings AG worth P221.6 billion.

Executive Order No. 18, approved by Ferdinand R. Marcos, Jr. last year, established green lanes, which are meant to expedite approvals for strategic investments.

Last year, the BoI saw a 73% increase in total approved investments to P1.26 trillion, 61% of which are from foreigners. The top country sources last year were Germany (P393.28 billion), the Netherlands (P333.61 billion), and Singapore (P21.45 billion). — Justine Irish D. Tabile

Working hand-in-hand for financial and digital inclusivity

By Bjorn Biel M. Beltan, Special Features and Content Assistant Editor

In a significant move towards enhancing productivity and fostering inclusivity in the Philippine banking sector, the Bangko Sentral ng Pilipinas (BSP) and the Bankers Institute of the Philippines, Inc. (BAIPHIL) recently formalized their long-standing partnership through the signing of a memorandum of understanding (MoU) on December 18, 2023 at the BSP’s head office in Manila.

“The collaboration of BSP and BAIPHIL will go a long way in reaching out to our common stakeholders by providing support to banks toward productivity enhancement through research, information exchange, and education,” BSP Governor Eli M. Remolona, Jr. said.

The collaboration aims to enhance productivity among banks through various initiatives including research, information exchange, and education. One of the key aspects of which involves joint efforts to develop capacity-building sessions for bank employees, officers, and directors, in a bid to foster continuous professional development within the banking sector.

The MoU will also facilitate the sharing of non-confidential subject matter experts and research materials, enabling both entities to leverage each other’s expertise and resources for mutual benefit.

Racquel B. Mañago, president of BAIPHIL, underscored the significance of the MoU, emphasizing that it “commits us to work together more closely toward our common goal of professional development for banking professionals, financial literacy, and financial inclusion for the underserved and unbanked.”

This commitment aligns with their overarching goal of promoting a more inclusive and resilient financial ecosystem in the Philippines, which the organization has been pursuing as part of its theme for the Fiscal Year 2023-2024, “Bridging the Digital Gap in Financial Services.”

The Philippines, like many other countries, faces significant digital gaps that hinder financial inclusivity and access to digital services for underserved communities. The digital divide in the Philippines is characterized by disparities in internet access, digital literacy, and the adoption of digital financial services among different segments of the population.

“Though it’s true that the pandemic accelerated the digital transformation of the country, the pandemic made it more pronounced, more obvious, this big gap. For many students, they may not be able to complete assignments because they do not have computers or access to the internet. For employees, they may not be able to work remotely due to connectivity issues; they may not have access to information on job opportunities. For many seniors, they cannot access online medical consultations because of this digital divide reinforcing socioeconomic inequality,” Ms. Mañago had said in an interview with BusinessWorld.

“The goal is to close that gap, or at least minimize the gap or divide. The ultimate goal is for digital financial inclusion, which is possible when we bring technology and digital know-how to everyone so that no one is left behind.”

At the beginning of this fiscal year, BAIPHIL embarked on a project to close the digital gap where it raised funds for a computer and printer bundled with 6-months free Wi-Fi for deserving schools nationwide. BAIPHIL extends its gratitude to six (6) banks who responded generously to our appeal; namely: AUB, BDO, RCBC, Robinsons Bank, SBTC and Uno Digital Bank. Equicom Savings Bank likewise donated cash to supplement this project. To date, computer bundle sets have have been turned-over to the following beneficiaries: Labney Integrated School in Mayantoc, Tarlac, Lasala Integrated School in Siargao Island, Barangay Caub in del Carmen, Surigao, Makabata School Foundation Pasig, Mapita Integrated School in Aguilar, Pangasinan, Suit Island School in Dagupan, Pangasinan and Pulung Bulu Integrated School, San Fernando, Pampanga. BAIPHIL hopes to donate computer bundle sets to more schools.

The partnership between BSP and BAIPHIL will serve to push this initiative beyond internal capacity-building to encompass the advocacies for digital finance, financial literacy, financial inclusion, sustainable finance, legislative initiatives, and other reforms that are already in place.

BAIPHIL has launched various financial literacy programs in partnership with the BSP in the past to educate parents of elementary school children and their teachers about financial literacy. BAIPHIL has also partnered with organizations like Rags2Riches, Inc. to train artisans who are mostly women from Payatas and promote financial inclusion all over the country.

Members of local government units and senior citizens are also welcome to participate in BAIPHIL’s financial literacy programs. In addition to traditional financial education, the organization intends to provide digital financial literacy programs to help the Filipino people better understand and make use of various digital tools and resources.

Ms. Mañago said that the MoU will bring both organizations together in close talks to discuss ways to align their goals in such initiatives, while continuing to promote excellence in the banking industry moving forward.

One such event focused on the continuous professional development of the banking sector was the recently-concluded “Live2Lead: BAIPHIL” leadership event, which aimed to equip potential leaders or young professionals currently performing leadership roles in the industry with new perspectives, practical tools, and key takeaways that will allow them grow and learn as leaders.

The event involved a mix of a public replay of leadership talks from world-renowned leadership experts and fireside chats with three local leaders respected in the banking industry such as former BSP Governor Felipe M. Medalla, former BSP Deputy Governor Diwa C. Guinigundo, and BSP Deputy Governor Chuchi G. Fonacier.

Ms. Mañago emphasized that BAIPHIL is very conscious of the participation and engagement metrics of training and events, as they use them to quantify and monitor progress and completion of business plans.

“We’re very conscious about the metrics and because this will tell us, ‘Are we achieving our targets, or do we need to re-strategize?’” she said.

As of March 1, 2024, BAIPHIL has offered a total of 73 training programs participated in by almost 3,000 trainees and 8 events with 3,439 participants.

“I’m really grateful that we have signed the MoU with BSP. I think that’s good leverage to take in more members. In partnership with the BSP, I feel like we can do so much more to support the digital initiative. One year is not enough, unfortunately, but hopefully we will keep going.”

Ms. Mañago hopes that through BAIPHIL’s efforts it will maintain its momentum of growth in terms of reach, to be able to engage with as many people, build partnerships and reach as many bankers, schools, and communities as they can.

She said that BAIPHIL recognizes that collaboration is essential in bridging the digital gap and including more Filipinos to enjoy the benefits of economic development. The organization actively engages with various stakeholders, including government agencies, financial institutions, and technology providers, to foster a collaborative environment.

“It’s an ongoing process. And with the help of everybody, I think we can achieve so, so much more,” Ms. Mañago said.

Established in 1941 as a non-stock, non-profit corporation, the Bankers Institute of the Philippines, Inc. (BAIPHIL) primarily aims to improve and standardize banking accounting, auditing, and operations nationwide.

From its humble beginnings as an association of mostly auditors and accountants, the Institute has blossomed into a prominent and esteemed organization for bankers. A total of 70 financial institutions and related groups have since joined the organization, representing a wide range of banking practices and services.

At present, it counts over 250 distinguished bankers and other professionals including well-known CEOs among its associates, all of whom make significant contributions to the organization’s various projects.

In its eight decades of operation, the institute has never wavered from its mission to aid financial institutions in raising productivity via research, knowledge sharing, and educational initiatives.

This article is in the special edition of BusinessWorld In-Depth digital magazine on BAIPHIL Training and Development Week and 83rd Anniversary. Get the full issue for FREE via BWorldX. Visit www.bworld-x.com.

 

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MGen, AboitizPower, and SMGP sign $3.3-B deal for Batangas LNG facility

SANMIGUEL.COM.PH

PANGILINAN-LED MERALCO PowerGen Corp. (MGen), Aboitiz Power Corp. (AboitizPower), and Ang-led San Miguel Global Power Holdings Corp. (SMGP) have forged a deal worth $3.3 billion, or around P168 billion, to establish an integrated liquefied natural gas (LNG) facility in Batangas.

The collaboration is expected to augment the country’s power supply with over 2,500 megawatts (MW) of generation capacity once fully operational, SMGP said in a statement on Sunday.

“For the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources,” SMGP Chairman and President Ramon S. Ang said.

SMGP is the power arm of the conglomerate San Miguel Group, while MGen is the power generation arm of the electricity distribution utility Manila Electric Co. (Meralco).

Under the deal, MGen and AboitizPower will jointly invest in two of SMGP’s gas-fired power plants: the 1,278-MW Ilijan power plant and a new 1,320-MW combined cycle power facility.

The Ilijan power plant resumed its operations last year, while the new power facility under Excellent Energy Resources, Inc. is expected to start operations by the end of 2024.

The three entities will also invest in “almost 100%” of the LNG import and re-gasification terminal owned by Linseed Field Corp., a unit of Atlantic Gulf & Pacific Co.

“This will be used to receive, store and process LNG fuel for the two power plants, thus fully integrating the local energy sector into the global natural gas supply chain,” the company said.

UBS AG served as the financial adviser to MGen and AboitizPower on the transaction, according to Meralco.

MGen Chairman Manuel V. Pangilinan described the deal as a “pathbreaking venture.”

“Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry towards a more sustainable future. We are thrilled to have such reliable partners as we lay the foundation for a brighter, greener future,” he said.

SMGP said that the “combined expertise and resources” will “guarantee the delivery of dependable and competitively priced energy while helping to boost economic growth and environmental preservation.”

“Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition… economic development is impossible without energy security, and this investment is a definitive step forward in that direction,” AboitizPower Chairman Sabin M. Aboitiz said.

Under the Philippine Energy Plan, the Department of Energy aims to increase the share of LNG in the country’s power mix to 26% by 2040, which is seen as “a suitable transition fuel.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

One for the road

PHOTO BY DYLAN AFUANG

Style- and tech-rich MG One heats up crossover competition

By Dylan Afuang

HERE’S THE ONE — perhaps named after MG’s centennial this year — the brand’s latest compact crossover that local distributor SAIC Motor Philippines boasted as delivering advanced technologies and a sharp look.

Previewed locally late last year alongside the battery electric Cyberster, the One was recently launched — packing turbocharged internal combustion power and taking its place above MG’s best-selling subcompact crossover, the ZS.

The model comes in Std (P1,298,888) and Lux (P1,458,888) variants. For a limited time, SAIC offers the model at discounted prices of P1,223,888 for the Std and P1,390,888 for the Lux.

“This stylish vehicle boasts a wide range of features that suits the needs of young, on-the-go first-time car buyers or maybe second-car owners,” SAIC Motor Philippines Marketing Director Dax Avenido stated during the One’s public launch at the Glorietta mall in Makati City. Weeks ago, the company staged marketing activities for the One and the model’s stablemates here.

Its size makes it one of the larger crossovers in its class, with a 4,581-mm length, 1,871-mm width, 1,617-mm height, and wheelbase of 2,670mm.

The One adopts the new Dual Front Face style first seen in the GT sedan. Complementing this are a tall, sloping hood, a sinewy-patterned big grille known as the Energized Alpha Grille, and angular LED headlights that are paired with three-bar LED daytime running lights.

Contrasting black roofs distinguish the Lux variant. The car rides on 18- or 19-inch alloy wheels, and LED Delta Glow taillights. A Twin Aero rear spoiler and bumper with an integrated diffuser make the rear end look sharp.

A 30-inch wraparound screen faces the driver inside the One Lux. This sizable screen consists of what MG describes as a 5.4-inch “touch switch screen” and 12.3-inch Driver Information Center, and a 12.3-inch touchscreen infotainment system with Apple CarPlay and Android Auto compatibility.

The wealth of tech continues to the electronic shift lever, smart key system, push-button start/stop, fabric or “leather-style seats” with power adjustment, wireless device charger, electric seats, dual zone climate control, and a panoramic sunroof. For safety, the One is fitted with tire pressure monitors, an electronic stability program with hill hold control, ABS with EBD, four SRS air bags on the One Std (six on the Lux), rear cross traffic alert, and a 360-degree camera.

Active safety features are exclusive to the Lux, such as Blind Spot Detection, Lane Departure Warning, Front Collision Warning, and Automatic High Beam.

Supporting all of these is the SAIC Motor Intelligent Global Architecture or SIGMA platform, which features independent suspension on all four corners.

“It’s a concept where space-saving construction is applied,” SAIC Motor Philippines Product and Logistics Manager Glenn Tacardon detailed the SIGMA platform to “Velocity” on the sidelines of the One’s launch. He added, “It’s also forward-thinking for new vehicles that MG is adapting; to have them globally applicable.”

Moving the One is a turbocharged 1.5-liter, four-cylinder engine that’s mated to a CVT and drives the front wheels. Engine output is rated at 170hp and 275Nm of torque, and these result in the vehicle’s zero-to-100kph time of 8.8 seconds.

Color options for the stylish crossover include Moon White, Iron Oxide, Meteorite Black, Extreme Speed Red, Fizzy Orange, and Brighton Blue, with the Lux matching these with the aforementioned black roof.

The One comes standard with a five-year or 100,000-kilometer warranty and 24/7 emergency roadside assistance.

Paris Fashion Week: Animal rights activists, biker boots, and faux fur

VICTORIA BECKHAM — VICTORIA BECKHAM YOUTUBE CHANNEL

PARIS — Animal rights activists from People for the Ethical Treatment of Animals (PETA) disrupted Victoria Beckham’s runway show at Paris Fashion Week on Friday.

The activists entered the runway as the models were walking down it, holding up placards that read “Viva Vegan Leather” and wearing T-shirts with the message “Turn your back on animal skins,” and “Animals aren’t fabric,” before being escorted away by security.

As Ms. Beckham greeted the audience at the end of the show, another activist managed to slip onto the runway bearing the same placard.

Ms. Beckham, who was walking with crutches due to a reported gym injury, showcased a collection of sheer dresses and boxy coats for fall/winter.

The former Spice Girl, who made her Paris Fashion Week debut in 2022, sent down edgy looks such as a backless blazer and an exaggerated sweetheart neckline on a mini dress. (See the show here: https://tinyurl.com/bdhcctt2 )

Chiffon and silk dresses came softly draped, while tassels flowed from a black bustier pantsuit.

The show was held at the 19th century Salomon de Rothschild Hotel, near the Champs Elysees.

Ms. Beckham’s husband David Beckham, and their children Cruz, Brooklyn and Harper, were on the front row.

HERMES
Hermes designer Nadege Vanhee added country and western flair to her fall/winter collection, sending biker boots and studded leather jackets down a catwalk lined with curtains of rain.

Models marched past the falling droplets parading the sleek lineup of leather ensembles that included flat, high-waisted trousers, flared in a boot-cut and worn with sharp-toed ankle boots — cowboy style. (See the show here: https://tinyurl.com/4ha53aw8 )

Slit pencil skirts paired with trim bomber jackets looked youthful while cinched trench coats carried a more traditional flavor.

Show notes referred to “braving the elements,” and cited resilient leathers, robust twills and supple cashmere.

OFF-WHITE
Off-White sent a playful, culture-blending lineup of fall/winter fashion down the catwalk on Thursday, showing styles decorated with colorful faux fur lining, beaded fringes and utility straps. (See the show here: https://tinyurl.com/3dpsfz6u )

Models marched down the runway in cinched coats with furry, lime-green collars, rugby shirts embedded with crystals, and slender dresses that resembled basketball jerseys.

Art and image director Ibrahim Kamara said the spark of the collection came from Japan, where he was struck by “the magic and grace of local traditions and the big influence Americana has had on the country’s culture,” according to show notes.

Mr. Kamara, who was appointed to head the brand’s creative direction following the death of founder Virgil Abloh, said the collection — which he entitled “Black by popular demand” — was his “most personal endeavor for the house that Virgil built.”

ACNE STUDIOS
For his fall/winter runway presentation, Acne Studios creative director Jonny Johansson showed slick, all leather looks and long, tailored jackets on Wednesday at Paris Fashion Week. (Watch the show here: https://tinyurl.com/3fmp5kj7 )

The collection was “rooted in toughness and human form, leather and denim,” said the show notes, affixed to each seat.

“A celebration of uncompromising femininity.”

Leather bodysuits had high necks and voluminous sleeves and were left unzipped in the back, while floor-sweeping trench coats were tightly fitted.

Softening the lineup were all-white looks, including a long gown with buttons running down to the navel as well as an earth-colored dress worn with a thick, furry scarf.

DRIES VAN NOTEN
Dries Van Noten, who showed earlier on Wednesday, also featured thick scarves in his catwalk show, including one with sparkles that framed the model’s head like a pillow. (Watch the show here: https://tinyurl.com/yfhz4att)

The Puig-owned label’s lineup came in pastels, grey, and light browns, and included coats and bomber jackets with rounded shoulders, as well as tailored suits embellished with shimmery beadwork.

“It’s the way that he drapes, it’s the way that he styles, it’s the way that he designs these clothes — there’s always a woman in mind,” said fashion commentator Hanan Besovic, known for his Instagram account @ideservecouture.

French-Moroccan creative director Charaf Tajer also held a runway show on Wednesday, for his label Casablanca’s collection called “Venus as a Boy.” (See the show here: https://tinyurl.com/mrx23x46 )

Held in the historic Paris Bouglione circus house, models walked the circular runway showcasing sporty tracksuits, cheerleader skirts and sheer, fitted skirts with slits.

SAINT LAURENT
Saint Laurent designer Anthony Vaccarello trimmed down the label’s silhouettes for winter, tightly wrapping models in sheer silk dresses in muted colors for a runway show on Tuesday. (See the show here: https://tinyurl.com/yxrdsppa )

Models cut through the center of the set — two vast, circular rooms lined with green curtains — in towering sling-back heels, their transparent layers revealing high waisted underwear, cut sharply, lengthening the thighs, and accented with slim belts.

There were sleeveless tops that wound up around the neck, pussy bow blouses and bustiers, while skirts remained the same length — cut just below the knees.

“The length is classic, but the content is novel,” said the show notes, tucked in envelopes left on each seat. They also cited the famous “naked” gown worn by Marilyn Monroe, as a reference for the designer.

Adding contrast to the fitted looks were furry coats made of ultralight feathers, forming bulkier silhouettes.

The collection was “bursting with juxtaposition,” said Simon Longland, director of buying at the London department store Harrods, noting “ladylike and conservative” styling delivered, however, a “slinky” allure.

DIOR’S READY-TO-WEAR
For her fall-winter collection, Dior designer Maria Grazia Chiuri turned to the roots of the upscale fashion label’s ready-to-wear line, drawing on the spirit of the late ’60s with feminine, tailored looks sent down the runway on Tuesday. (See the show here: https://tinyurl.com/2cm9rhcy)

Models marched around a room lined with thick bamboo canes, parading neatly belted trench coats, flared miniskirts, long mesh dresses sparkling with beadwork and trim jackets. Handbags came in all shapes and sizes, as did the shoes, which included tall riding boots, scrunched at the top.

The challenge for Dior, when its late designer Marc Bohan branched out from intricately crafted haute couture styles into ready-to-wear designs, was to create a new silhouette, easier for women to slip on as they ventured into the work force, Ms. Chiuri told Reuters before the show.

“I think that Mr. Bohan understood very well this new generation,” said Ms. Chiuri.

“At the time it was very unusual for a couture house to move into new territory,” she added, also noting Bohan’s foray into homewear designed by Italian artist Gabriella Crespi.

Graphics from the era, introducing the new line dubbed “Miss Dior,” appeared on the clothing as starkly outlined paintstrokes on khaki-colored coats and split skirts.

Dominating the center of the space were elaborate armor-like sculptures made of cane, works by Indian artist Shakuntala Kulkarni evoking rounded, female shapes, their rigidity contrasting with the slightly loosened, polished looks shown on the catwalk.

Paris Fashion Week runs until March 5. — Reuters

SMIC aims to open 3-4 malls this year

SM City Sto. Tomas is SM’s 85th mall and fourth in the province of Batangas.

A UNIT of SM Investments Corp. (SMIC) is targeting to open three to four new malls this year.

The malls will be opened in provinces, Timothy Daniels, SMIC consultant for investor relations and sustainability, said on the sidelines of a media briefing last week.

“They’re also renovating and extending some of the existing malls,” he added.

SMIC’s SM Prime Holdings, Inc. has 85 malls in the Philippines, according to its website. Its newest mall is SM City Sto. Tomas in Batangas province, which opened on Oct. 27 last year.

Mr. Daniels said the budget for the mall openings and renovations will be within the P100-billion capital expenditure (capex) budget earmarked by SM Prime for 2024.

“That capex goes towards mall development, residential, any commercial they do, land banking,” Mr. Daniels said.

The revenue of SM Prime’s mall business rose by 30% to P71.9 billion, while mall rental income increased by 24% to P61.3 billion.

Mr. Daniels said that SMIC has a positive outlook on its mall business this year, driven by strong consumer spending.

He added that SM malls had a 92-94% occupancy rate in 2023.

“Coming into 2024…, there are reasons to think why we could continue to have a good macroeconomic story. Most of that will turn into consumer spending. The malls will carry on with that momentum,” Mr. Daniels said.  

“In 2023, (the performance) was strongest on entertainment, services, and food and beverage. Those were the areas because everybody wanted to go out and enjoy themselves. That was what we’re seeing spending on,” he added.

SMIC had a 25% growth in its 2023 net income to P77 billion. Its consolidated revenues improved by 11% to P616.3 billion led by stronger consumer spending.

For its part, SM Prime recorded a 33% increase in its net income to P40 billion in 2023 as revenues jumped by 21% to P128.1 billion.  

SMIC and SM Prime shares were last traded on March 1 at P937 and P32.45 apiece, respectively. — Revin Mikhael D. Ochave

Diamond Auto, Legado Motors consolidate Dongfeng’s EV offerings

From left are the Dongfeng Forthing Friday EV, Aeolus Huge hybrid, and Nanobox EV — all already available. — PHOTO BY KAP MACEDA AGUILA

By Kap Maceda Aguila

THE DIAMOND Auto Group EV Corp. and Legado Motors, Inc. — which distribute Dongfeng commercial electric vehicles (EVs) and passenger electric vehicles, respectively — recently signed a memorandum of understanding that paves the way for the consolidation of their portfolios.

In a release, the two companies said the “strategic move aims to improve access to the innovative Dongfeng new energy vehicles across the Philippines.” They describe the arrangement as a “unique support system” amid the Chinese brand’s expanding sales and distribution channels here.

The collaboration will mean that customers need only to visit any “Dongfeng Connected” dealership — in Alabang, Cainta, Bacoor, Pasig, San Fernando, Davao City and Tarlac City — to browse a selection of electrified commercial and passenger vehicle offerings or to avail of after-sales services for the same.

“This arrangement places a strong emphasis on after-sales services, aiming to offer customers a seamless ownership experience,” said Legado Motors, Inc. Deputy CEO Brennan Nathan Singson Lim in a speech at the recent MoU signing in Quezon City. “With state-of-the-art service centers, expertly trained technicians, and a dedication to swift and effective customer support, our priority is to ensure that customers receive unmatched assistance throughout their ownership journey.”

The Dongfeng Connected lineup now consolidates full-EV passenger models such as the P888,000 Dongfeng Nanobox, the Dongfeng Forthing Friday (P1.98 million for 430km ranger, P2.58 million for 630km), and the Dongfeng Aeolus Huge hybrid (P1.88 million), which join enterprise-oriented options Rich pickup (from P2.76 million to P2.86 million), and EV carrier series (P1.68 million to P3.54 million).

Slow unveiling for Levi’s new collection

LOOK OUT for Levi’s new collection as it hits stores gradually, moving from this month to April, with a special line coming in June.

Levi’s unveiled its Spring/Summer collection for 2024 in The Playground in Makati on Feb. 22. The brand, founded in 1853, rides on waves of nostalgia in several lines: interest in the ’90s and ’00s are front and center, exemplified in roomy fits in dungarees and jeans that will fit right at home in some grunge cover band’s audience.

However, the brand gets deeper into its century-old archive with Levi’s Vintage Clothing, new-old releases of jeans that were made in 1947, 1955, and 1967. They’re made the same way they used to be made, with period-accurate 100% cotton, so much so that they can be shrink-to-fit, the way they did before: yes, you can take a dip into a bathtub while wearing them so they can conform to your shape.

Another premium collection about to be released is the Made in Japan collection, which pays respect to Japanese craftsmanship (and the way they adopt things from other cultures and make them better). BusinessWorld got a feel of the jeans at the event, which showed off Japanese dyeing techniques (resulting in very subtle changes in the variation of blues available), but, more importantly, the feel of Japanese denim, which while displaying durability, showed off a softness akin to flannel. These are sourced from the renowned Hiroshima-based Kaihara Denim Mill, which started making indigo-dyed kasuri fabric in 1893. The brand switched to denim around the end of the 1960s.

Finally, the Pride collection, coming out on Pride Month (that’s June), showcased an urban cowboy vibe once popular in metropolises like New York and San Francisco in the 1970s. We saw a reversible denim vest woven with golden thread (because the glitter is woven into the fabric, it won’t scatter), as well as unisex bootcut jeans designed to fit into the various shapes and sizes of the LGBTQIA+ community. The red tabs and tags usually seen on Levi’s items are replaced with rainbow flags.

Check out the newest collection and fits on Levi.com.ph and select Levi’s boutiques and department stores nationwide. — Joseph L. Garcia

Swifties make pricey pilgrimage to star’s only Southeast Asian stop

SINGAPORE — Filipina Charlyn Suizo is in Singapore this week for one reason only: Taylor Swift.

The 30-year-old software engineer, who heads a Philippines group of Swifties, as fans of the singer are known, flew in from Manila on Friday with 17 friends.

She is spending at least $6,000 on her flights, concert tickets, and accommodation. That is slightly above the average annual household income in her home country.

“This is the biggest amount I have spent for a concert. I never really spent big … for someone else, just Taylor Swift,” said Ms. Suizo, who has splashed out on a VIP ticket costing more than S$1,000 ($745). She plans to see three of Ms. Swift’s six performances in Singapore.

Ms. Suizo is among thousands of Swifties descending on Singapore this week from all over Southeast Asia to catch the American star’s Eras Tour, giving the sluggish local economy a much-needed boost.

Ms. Swift is this week playing six sold-out nights in Singapore, her only stop in Southeast Asia.

Chua Hak Bin, an economist at Maybank, estimates that seven in 10 of the 300,000 concertgoers will be coming in from abroad, spending between S$350 million and S$500 million ($260 million to $370 million) on hotels, food and entertainment.

By comparison, the F1 Singapore Grand Prix has generated around S$2 billion ($1.5 billion) in tourism receipts since it started in 2008, according to the trade ministry.

Meanwhile, analysts at HSBC say hotel rooms in Singapore now cost 30% more than in pre-pandemic 2019.

Edmund Ong, general manager at Trip.com Singapore, said that from March 1-9, the cost of flights into Singapore nearly tripled while accommodation bookings almost quintupled. Bookings for attractions and tours shot up by more than 2,300%.

Economic growth in Singapore slowed to 1.1% last year from 3.8% in 2022, with growth of 1%-3% expected this year, according to the government.

Last month, the government said it had given Ms. Swift a grant to play in Singapore. It did not disclose how much but said the concerts were “likely to generate significant benefits to the Singapore economy, especially to tourism activities such as hospitality, retail, travel, and dining.”

The announcement annoyed other countries in the region, with the Thai prime minister saying the grant was made on condition that it would be Ms. Swift’s only show in Southeast Asia, while a Filipino lawmaker said it “isn’t what good neighbors do.” Singapore’s government did not confirm the exclusivity clause.

Singapore has seen a boom in concerts since pandemic lockdowns ended, with big names like Blackpink, Coldplay, and Ed Sheeran playing sold-out shows. — Reuters

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