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Past, present, future

MG Gallery is located at 1229 Quezon Avenue in Quezon City. — PHOTO FROM MG PHILIPPINES

MG Gallery shows brand’s century-long heritage, current and future models for PHL market

By Dylan Afuang

MG PHILIPPINES recently opened the MG Gallery in Quezon Avenue, Quezon City, and it serves a myriad of purposes for the brand and its customers here. The business also represents Morris Garage’s local expansion with official distributor SAIC Motor Philippines (SMP).

Located at 1229 Quezon Avenue, the Gallery ultimately becomes “the brand’s showcase showroom to potential customers,” the local distributor explained in a release.

The opening of the MG Gallery coincides with the 100th anniversary of its founding in England in 1924. It was then acquired by Chinese SAIC Motor Corp. in the 2000s. The latter company’s local arm, meanwhile, marked one year in business last July.

“Customers can enjoy a look at the full lineup of available (vehicles) from the British-born manufacturer, as well as have any immediate inquiries answered (by MG sales officials),” the statement continued. Customers intending to purchase will then be directed to their preferred MG dealership.

Boasting a showroom floor that can accommodate 10 vehicles, the “MG Gallery aims to build more interest for the British-born global brand as it will showcase both current and upcoming (MG) EV (battery-electric), HEV (hybrid-electric), and ICE (internal combustion) models.”

“We are fueled by our ambition to make MG one of the top automotive brands in the Philippines,” SMP President Felix Jiang announced in his message during the opening of the brand’s showroom.

“The Gallery is the first major step in our ambitious goal,” he continued. “And this will be followed soon by two more flagship showrooms: MG Greenhills (in San Juan City) and MG Alabang (in Muntinlupa City), to officially open in the coming months.”

Lining the Gallery’s walls are a graphic timeline of MG’s history, as well as photos and information about the marque’s classic models. MG Philippines is also searching for an old, but mint-condition, MG to display in the space, SMP Digital Customer Experience Manager Pattice Tenorio told the media at the sidelines of the opening.

Other amenities of the MG Gallery include service bays with an AC EV charger, and a cafe and customer lounge. Soon, the establishment will have a DC charger out in front to accommodate traveling MG drivers, serve as an SMP-led events venue, and become a sales and technical training center for the brand’s sales and service personnel.

Alongside the opening, SMP also previewed the L7 battery-electric sedan made by the car maker’s IM luxury sub-brand. The company aims to introduce IM here, but as of this writing, it has not revealed specific timing about a formal launch.

The L7 features a cabin with a unique two-spoke steering wheel, infotainment and driver display screens that span the whole dashboard, and wood inlays, all wrapped in a sleek exterior.

Powering the EV are two electric motors delivering 571hp and 725Nm of torque, and a 100-kWh battery that enables a manufacturer-claimed range of 615km, per the model’s spec sheet.

For more information, the public can reach MG Philippines via its official hotlines (02) 5318-8429 or 0917-702-0449, and Instagram (mg_philippines).

TRB circular on RFID fines awaiting final steps for September implementation

PHILIPPINE STAR/ MICHAEL VARCAS

By Ashley Erika O. Jose, Reporter

THE TOLL REGULATORY Board (TRB) said the draft circular imposing fines for those passing expressways without radio frequency identification (RFID) tags and those with insufficient funds has already been signed.

“But it still needs publication and registration with UP-ONAR (University of the Philippines-Office of the National Administrative Register) to be effective. Probably [it will be effective] this coming September,” TRB Executive Director Alvin A. Carullo told BusinessWorld in a Viber message on Sunday.

Metro Pacific Tollways Corp. (MPTC) President and Chief Executive Officer Rogelio L. Singson said this would pave the way for the implementation of a cashless collection system.

“Right now, there is no regulation that says I can fine you if you enter without RFID or your load is not sufficient,” Mr. Singson said on the sidelines of a forum last week.

With the signing of the circular, tollway operators can now implement a full cashless system, he said.

“In other words, they can impose the cashless system,” he said, adding that the implementation of interoperability between toll collection systems is still on track for October.

He said the target implementation for electronic toll collection interoperability is still set for October, while the migration of the company’s system is ongoing.

To recall, TRB initially aimed to implement a unified wallet system by July, but it was later postponed to October while MPTC and San Miguel Corp. (SMC) establish an interoperable wallet.

In April, MPTC said it would allocate up to P10 billion for the implementation of a barrierless toll system.

The first stage of the barrierless tollways will be the implementation of cashless transactions, followed by the interoperability or the introduction of the unified RFID wallet system along expressways.

In a separate media release over the weekend, SMC said it has equipped its entry toll plazas along the South Luzon Expressway (SLEx) with automatic license plate readers to reduce the need for barriers.

“The upgrades are likewise in line with the government’s directive to implement contactless toll collection and barrier-less plazas along expressways,” SMC said.

The company is also upgrading its servers to manage and improve their capacity to handle the growing number of vehicles, SMC said.

SMC said the expansion of SLEx is on track to be completed by the fourth quarter.

The expansion of SLEx is being undertaken by SMC’s unit SMC SLEX, Inc., which is aiming to widen the expressway to six lanes on each side from the current four lanes on each side.

It said the upgrades include enhancements to its cashless toll collection system for barrierless toll plazas.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

You wanna be on top? The model life

By Joseph L. Garcia, Senior Reporter

FORGET parents and lovers. Who really guides you with how to live your life are the models smiling from your screens, or looming at you from billboards larger than life. They’re not actually telling you anything, but the clothes they wear, and the yogurt they’re not actually eating presents you with a picture of how a life should be lived. What they’re showing isn’t always particularly true, or realistic, but it’s always good to reach for a star.

Models (most of them uniformly sized and quite tall) were all at Dr. Wine in Makati’s Poblacion for a brand and socials night on Aug. 6. Their ringleader, Diego Harmuch, Chief Executive Officer and founder of Luminary Model Management, Inc., was dressed in a suit and told BusinessWorld what it’s like to live that life.

The modeling agency started scouting in 2020 but was officially launched in 2021. Since then, their models’ faces and bodies have graced the pages and covers of international magazines, and store windows of global fast-fashion brands.

GETTING THERE
Mr. Harmuch told us the steps to getting hired as a model.

First you get scouted, or you get referred, or you can apply to a modeling agency, or you can attend an open casting (they’ve just finished one: 86 aspirants came in, only two women got the job). If they like your profile, they schedule an interview. Then, they arrange a photoshoot so they can fill up your comp card: like a calling card for models, but aside from biographical data, it contains the model’s measurements and pictures. These include full-body and half-body shots, close-ups, and snapshots. “What closes the job are the snapshots; clean shots. You need to see how the models really are when they have no makeup, and they are not produced,” said Mr. Harmuch. These comp cards are then shown to clients and casting agents.

But what should a model look like? It still depends on the market.

“I remember modeling in the Philippines 10 years ago. The market was very different,” Mr. Harmuch said. Himself possessing a lean frame, the casting agents and brands back then looked for more muscular builds. “It’s (now) much more open. I believe anyone can become a model, as long as they really want to do it,” he said. “And of course, (if) you have the certain measurements that you need to have.”

He gives some examples: a female model would be around 5’6” to 5’7”, but that’s variable (again, it depends; a phrase Mr. Harmuch used a lot in this interview). The shorter girls can do beauty, skin, and clothing campaigns, but, “We have girls who are taller, who are suitable for fashion shows.”

If the model is doing beauty campaigns, they have to have great skin. For other areas, it’s a lot more nebulous: “You need to fit the clothes very well,” he said. “The clothes have to look good on you. You’ve got to have good proportions.” He added, “We look for different faces, now that the market is very open.”

X-FACTOR
Scouting a model might feel a bit like falling in love (though Mr. Harmuch thinks the feelings are different). “I think it’s like an X-factor,” he said. “You see potential. You see raw potential in that person. You see what a person can possibly become.

“You see a person, and you really believe that that person can be a model. You know what I mean? And then it just happens to them,” he said. “That person was born to be a model. Just guide that person properly… put them in the right place.”

Mr. Harmuch had been a model himself, starting at age 14. He took pictures with his cousin, who sent them to a modeling agency. Asked if this was proof that he had always been good-looking, he said, “I mean… that I don’t know. It just happened.”

While head of a modeling agency, he’s also a photographer. Asked what it’s like on the other side of the lens, he said, “There’s a lot more planning. You really have to plan, and know that you are dealing with people’s lives. It’s a bigger responsibility.”

THE MODEL LIFE
We interviewed some of his models: Hazel Xue was studying public relations in Australia and decided to do something a bit more casual and part-time to make money, and still have fun. “When things started to become a little bit more serious, I saw my potential in this industry,” she said. She stands in front of a mirror sometimes to practice posing, or does research on her favorite international models to see how they do it.

Male model Diego (who asked for his last name to be a simple “M”) said about his discovery, “Classic story. I was walking in a mall.” In SM Cherry, in Mandaluyong, of all places. A designer approached him and asked if he was a model. He said no. The designer asked if he wanted to be a model. He said no. “I really had nothing in my plans to be a model,” he said. The designer posted his picture on Facebook, where it was spotted by Mr. Harmuch and his wife.

“I wanted to be a chef,” said Mr. M. “I’m doing this first before that, because I know modeling doesn’t last very long. My true passion is cooking. Modeling became also like a hobby and passion over time.

“I love it. It’s just a world that I was never exposed to,” he said. Mr. M, 21 years old, tried to explain the politics of the Second World War, ending by saying that his European father turned socialist. “They were anti-capitalism; all this, that’s all in my head. This world is new to me.”

ON DIETS AND TRAVELING
Young, good looking, traveling the world (Mr. M had done a show on Milan Fashion Week), and your only tax to enter this world is your face. Life as a model should be easy, but Mr. Harmuch said in a low voice, “Not really.”

“First thing, it’s a 24-hour job. You always have to (fulfill) measurements. You always have to look a certain way. You have to work hard for that,” he said.

Salads and assorted cheese and charcuterie were served as the first course of that evening, as well as foie gras on different kinds of bread. A server, laughing, aware of the models surrounding the table, said that the bread may be left untouched, because of the models’ diets. One (Mr. M, actually), said, “Kakainin ko iyan (I’ll eat that).”

“It’s not easy for you to be doing a diet every day,” said Mr. Harmuch. “To restrict yourself from eating certain things that you want to eat.

“Or being away from your family,” said Mr. Harmuch who recalled leaving home at 18 to model around the world. “Literally not seeing your parents and you’re a very young teenager. Being away from your family — it’s very lonely, actually. Traveling around… it’s hard. There are a lot of struggles, that a lot of people don’t understand. They think you just have to be pretty. There’s hardship,” he said.

“Not a lot, to be honest,” said Mr. M, when asked about the hardest parts of modeling. “Compared to photographers, and all that. They do all of the work, essentially. You just show up. You don’t really have to prepare. You just prepare yourself.

“I guess the hardest part is keeping your body in shape, and making sure you’re eating healthy, and making sure that everything is as picture-perfect as can be,” he said.

For Ms. Xue, who is “a little bit introverted,” the hardest part was facing people. “Sometimes, when I need to talk to people, I find it to be stressful. But when I open up, and people are so friendly, I find it is easy.”

“Nobody’s job is easy. Everyone is just trying to go through it,” he said. What then, makes it all worth it? “What makes it worth it?” said Mr. Harmuch, repeating our question. “You love it. You have to love it. I think when you really love something, you do it because you love it. It happens to you because it’s supposed to be there, like that. It’s hard to answer this question.”

A BLESSING
Is it worth it when you see your face everywhere, presented larger than life itself? “You have to be very humble when it happens to you. I always tell my models to be very humble. If God blesses you, these things happen to you.”

Former model, photographer, and he who sat on the judges’ panel of America’s Next Top Model Nigel Barker said in the introduction to his book, Models of Influence, “Models have moved us over the years to think and see the world differently. They hold up a mirror to society and show us where we are and where we still have room to grow. What is considered beautiful evolves, but it’s very often through models and fashion that we come to understand beauty in the context of our time, and by extension, within ourselves.”

Mr. Harmuch says, “Modeling is about being your own personality, and becoming more of who you are, so you can be an inspiration for other people.”

Rolling with the facts

Formally introducing ‘Kuya Kim’ Atienza (second from right) as CST Tires Brand Ambassador are (from left) AP Blue Whale Corp. National Sales Manager for Four Wheels Eric Yap, Marketing Manager Christine Roque, and National Sales Manager for Two Wheels Serj Castro. — PHOTO BY KAP MACEDA AGUILA

CST Tires, ‘Kuya Kim’ forge ties for tire info campaign

By Kap Maceda Aguila

AP BLUE WHALE CORP., country distributor of Taiwan-headquartered CST Tires, shared that “road accidents are still the leading cause of death and injuries, especially among younger people, according to the Department of Health.” Even more significant, these numbers are expected to surge as more people own and operate cars and motorcycles.

The hope, it asserted, lies in proper safety education, toward the goal of reducing accidents by “at least 35%” — a figure put forth by the Department of Transportation — by 2028.

Surely an important part of ensuring safety on the road is looking after a vehicle’s tires. “Tires are what connect us to the road, so we have to be very conscious of them, their condition, and even pressure,” declared “Kuya Kim” Atienza, noted “fact-teller” and riding/motoring enthusiast. Mr. Atienza has been conscripted by CST Tires as its brand ambassador — inking a year-long deal to be the face of the brand through its “Know Your Tires” campaign.

The safety awareness effort, which doubles as a marketing push for CST Tires products, will see Mr. Atienza star in a series of short videos aiming to educate motorists and riders alike on the ins and outs of tire safety and ownership.

According to AP Blue Whale Corp. Marketing Manager Christine Roque, Kuya Kim is a perfect fit to achieve this goal because he has long been known as a “credible and relatable” source of information. “Our usual concern is how to explain tire tech to average customers. It might get too technical. Kuya Kim is known to very simply explain even the very technical,” she maintained.

At the recent press conference announcing his appointment as CST Tires brand ambassador, Mr. Atienza shared that the campaign kicks off this month with the release of the first video on the CST Tires Philippines social media platforms. “This campaign will be focused on safety, more than anything. The qualities of CST Tires will come out as we focus on how safe it is to use them,” he said. Mr. Atienza added that, beginning in 2015, he had largely switched to riding his motorcycles or bikes come sun or storm. He stressed the importance of choosing the right tires which enable him to come home to his family safely every day.

“Tires are the most important safety feature in four-wheel and two-wheel vehicles… and they affect safety, braking, handling, steering, and ride quality,” he continued. “Know Your Tire” will delve on “the importance of choosing the right tires, tire maintenance, and tire safety. As we were shooting initially, I saw so many things that ordinary people may not know but can dictate (safety on the road). As much as we could, we tried to explain terms and bits of information to the general public in a very exciting, reachable, and understandable way — and the qualities of CST will come out. My responsibility is to be able to explain in layman’s terms how safe it is to use CST Tires, and explain their quality. Again, the prime concern is safety.”

Replying to a question from “Velocity,” Mr. Atienza said, “You know what I see, especially among motorcycle riders? Lots of them have worn-out tires. They might say they’re too expensive to replace, or that they can’t afford to buy new ones. But the important thing is to invest in quality tires which have the right tread. It’s actually easy to read tires if you know how — like, what do the numbers on the sidewall mean?”

In true Kuya Kim fashion, he bared the origin of the “kamote rider” term — a derisive description of reckless or irresponsible motorcycle riders. It’s not what people usually think; it did not originate as a near homonym of “kamot-ulo” (literally, to scratch one’s head, usually to express ignorance or regret after a traffic incident).

“I used to hear that from my teachers when they admonished students who (didn’t do well or didn’t prepare for class). ‘Go home and plant kamote (sweet potato).’ But this actually originated in American colonial times when our colonizers were the teachers and Filipinos were the students. It was actually a putdown for farmers,” Mr. Atienza narrated.

In an interview with this writer, AP Blue Whale Corp. National Sales Manager for Four Wheels Eric Yap averred that CST Tires promise value for money, as they are priced more affordably than many mainstream competitors. Here in the country, it’s an established tire marque for vans, 4×4 vehicles, and light commercial trucks, he maintained.

Despite its relatively affordable pricing, the company, according to AP Blue Whale Corp. Product and Technical Director Jaybee Atanacio, has its own R&D (research and development) and production facilities that assure its quality and development arc toward innovation. Cheng Shin Rubber Ind. Co. Ltd. (or Cheng Shin Tire) employs more than 20,000 people and is, incidentally, the largest bicycle tire manufacturer in the world. It boasts a daily tire manufacturing capacity of 300,000 units for motorcycles and bikes, 10,500 tires for trucks and buses, and 26,000 for passenger cars — with production facilities in Thailand, Indonesia, Vietnam, Taiwan, India, and China. With a global footprint in 157 countries, CST has tech centers in Changua, Taiwan; Xiamen, China; Noorddammerweg in the Netherlands; and Atlanta, Georgia in the US.

T-bill, bond rates may go up before BSP meeting

STOCK PHOTO | Image by RJ Joquico from Unsplash

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may climb as investors await the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.

The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion each in 91- and 182-day papers and P7 billion in 364-day debt.

On Tuesday, the government will offer P30 billion in reissued 20-year T-bonds with a remaining life of six years and 11 months.

Yields on the T-bills and T-bonds on offer this week could track the week-on-week increase in secondary market rates, which came on the back of faster July inflation and in anticipation of the BSP’s review, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A trader said in an e-mail that the T-bonds on offer this week could fetch yields ranging from 6.10% to 6.15% as the market widely expects the Monetary Board to begin its easing cycle on Thursday.

At the secondary market on Friday, the rates of the 91-day, 182- day, and 364-day T-bills went up by 5.58 basis points (bps), 4.13 bps, and 3.46 bps week on week to end at 5.8429%, 6.1056%, and 6.1977%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website.

The 20-year bond’s rate inched up by 0.01 bp week on week to 6.1163%, while the seven-year debt, the tenor closest to the remaining life of the papers on offer this week, increased by 0.67 bp to yield 6.3206%.

Headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported last week. This was slower than the 4.7% print in the same month a year ago and was within the BSP’s 4%-4.8% forecast.

However, this was the fastest in nine months or since the 4.9% clip in October 2023 and also marked the first time since November that inflation exceeded the BSP’s 2-4% annual target.

The Monetary Board is now “a little bit less likely” to cut rates at its Aug. 15 policy meeting following the worse-than-expected July inflation print, BSP Governor Eli M. Remolona, Jr. said after the data release.

The Monetary Board has kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative hikes worth 450 bps.

A BusinessWorld poll conducted last week showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-bp rate cut at Thursday’s review.

This would bring the target reverse repurchase rate to 6.25% and would be the first reduction in benchmark borrowing costs since November 2020, or during the coronavirus pandemic.

The BTr wants to raise P220 billion from the domestic market this month, or P80 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy

Ayala Land sticks to current landbank, focuses on utilization

AYALA Land, Inc. (ALI) will not expand its land bank — the total land it owns or controls for future development — but will concentrate on maximizing the utilization of its existing properties, a company official said.

“We’ve made a deliberate decision not to acquire additional land unless it’s a very special parcel, and we know where those parcels are, but they’re not yet up for sale,” ALI Chief Finance Officer Augusto D. Bengzon said in a media briefing last week.

Mr. Bengzon said that ALI had 11,300 hectares of land bank as of the end of 2023.

“We do think that we will be utilizing around 800 hectares a year, so over the next five years, that’s about 4,000 hectares,” he said.

During the same briefing, ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said the company will launch new districts within the company’s existing estates.

“We will be focusing not so much on the launching of new estates but on launching new districts within existing estates. We want to really use the land bank in our existing estates as opposed to keep launching new ones,” she said.

“We want to make sure that our estates really come to life. It helps if we focus our capital and efforts on making the most out of the estates that we have, and in the process, create more value in our existing estates,” she added.

Ms. Dy said that ALI has earmarked P7 billion in capital expenditure (capex) budget over the next two to three years for the reinvention of its leisure and hospitality business.

ALI Head of Leasing and Hospitality Mariana Zobel de Ayala said that 900 hotel rooms are under construction in support of the company’s target to build 4,000 new rooms over the next five years.

“What’s particularly exciting is we’re hopeful about growth in international travel. I think there’s a projection that foreign arrivals will double in the next few years. We are going to be rolling out a number of new products targeted at that foreign travel,” she said.

Mr. Bengzon also noted that ALI’s planned capital expenditure of P100 billion for this year is approaching its pre-pandemic level of P108 billion.

“We’re almost there. Pre-pandemic, we peaked at about P108 billion in capex spending. In terms of the activity on the ground, I think by many metrics, we’ve exceeded pre-pandemic levels. Construction activity-wise, I guess that will follow our launches, as well as the leasing pipeline that we’ve set out for ourselves,” he said.

Meanwhile, Ms. Dy said the growth of the company’s residential business will come from the premium segment.

“There will be continuous demand from the premium segment. The onus is on us to come up with products that will really cater to the requirements of that segment and will be able to compete and offer something different from other competitors,” she said.

For the first half, ALI saw a 15% increase in its net income to P13.1 billion as consolidated revenue rose by 28% to P84.3 billion. 

ALI shares were last traded on August 9 at P30 per share. — Revin Mikhael D. Ochave

Doing the laundry? There’s an app for that

If you are using Midea’s new Luna washing machines

WHAT better way is there to launch a new washing machine than by doing a bit of laundry?

As Midea launched their newest line of washing machines, the Luna, on Aug. 6, at their Makati showroom, Anna Marie Alejandro, General Manager of Concepcion Midea, Inc., Philippines, placed a full load of laundry in one of the machines, setting the timer for an hour with her phone. After a series of activities at the launch, the machine beeped to show that it was done with the load — not only had it been washed, it had also been dried in that span of time.

With the Luna’s One Touch Fuzzy Logic feature, users are assured of a user-friendly experience, eliminating the hassle of complicated programming. The machine is able to detect the right water to laundry ratio for every load, and, with its Turbo Wash feature, offers a 40% reduction in washing time.

A HealthGuard feature, which works together with Auto Clean and Steam Care, makes sure that the washing machine’s inner and outer drums are sterilized to avoid secondary contamination and can function with greater washing performance. This also helps clean clothes better. “This is what we’re proud of,” said Ms. Alejandro in an interview.

More importantly, the washing machines can be controlled with an app on a smartphone (meaning you can do chores long-distance).

The line has both front load and top load machines.

The Luna Inverter Series Front Load Combo Washing Machine costs about P51,000, with Ms. Alejandro estimating that they cost 25% to 30% less than Korean and Japanese competitors with similar features. Midea is a brand from China, and is one of the world’s largest manufacturers, especially for microwave ovens.

Its sheer size and manufacturing capabilities are the reasons for the relatively low prices. “Midea manufactures its own products, from the smallest material,” she said. “Midea is the biggest global manufacturer,” pointing out that some of the microwave oven parts of their competitors come from them. “That’s why when it comes to pricing the product, it’s not about sacrificing the quality. It’s because we’re efficient.”

The lower prices, then, allow for more accessibility to Filipino customers: “We’re opening opportunities for Filipinos to upgrade their appliances,” said Ms. Alejandro. — Joseph L. Garcia

Enhanced ownership packages on select Lexus models this month

PHOTO BY KAP MACEDA AGUILA

LEXUS MANILA bundles select models with enhanced ownership packages in a campaign that runs until Aug. 31.

First among the included nameplates is the Lexus UX 300e, priced from P3.838 million. The all-electric SUV is said to “seamlessly blend eco-friendliness with unparalleled luxury.” Sleek and aerodynamic, the UX 300e is equipped with a “cutting-edge” electric powertrain and a host of modern amenities. Its driver-centric cockpit gets Sashiko leather seats, and the vehicle boasts the Lexus Safety Sense suite that includes advanced features like a pre-collision system, adaptive high beam system, lane departure alert, lane tracing assist, and dynamic cruise control.

Meanwhile, the RZ 450e, starting from P5.228 million, is Lexus’ first fully electric model, and is “technologically advanced,” positioned as blending innovation and luxury. It has a futuristic cockpit “designed to create a seamless connection between driver and vehicle,” while its advanced electric powertrain is complemented by a suite of safety features.

Priced from P10.508 million, the LS 500 Premier is the brand’s flagship sedan that offers “exceptional comfort, performance, and safety, with an interior crafted by Takumi masters using razor-thin haku metal foil and Nishijin weaving techniques.” A powerful 23-speaker Mark Levinson sound system completes a luxurious package.

For more information, visit the Lexus Manila showroom in Bonifacio Global City or download the MyLexus App available for both Android and iOS users to receive live updates and to access other premium services.

Are we witnessing a paradigm shift in industrial policy or are the Plaza Accords rebalancing architecture in our future?

PEXELS-KAROLINA GRABOWSKA

A combination global crisis: the climate change crisis, the new geopolitical realignment and conflicts disrupting global trade, and the revolution in renewables technology are proving to be a benign testing ground for an industrial policy away from the liberal free trade ideology dominant since the Thatcher-Reagan revolution in the 1980s.

The view that nationalist-protectionist industrial program, exemplified by countries behind the socialist wall, will lag behind the market economies has become established in many people’s minds. F. Fukuyama wrote The End of History as the death anthem of the polar challenge of the central planned economies.

Forty years later, a new and more assertive champion of the old mercantilist heresy has arisen to challenge the neo-liberal hegemon. Mercantilism reminiscent of the old days, and about which Adam Smith raged against, is alive and seemingly thriving. This new champion, Red China, had become not just the second largest economy in the world but is showing designs of toppling the top hegemon in the world. This emergence has shifted from labor-intensive to technological sophistication (semiconductors, supercomputers, EVs, and batteries), which promises to fuel even greater progress in the future. The big difference is that its dynamism is anchored in a very vigorous domestic market economy unlike the old central planning. More interestingly, it had transitioned from the defuse industrial policy delivered by currency undervaluation to the massive direct fiscal subsidy to select industries. The result has been spectacular.

Two decades (2005-2023) is all it took for Red China to overtake the current hegemon in total exports to the world. The export surge that started out among light labor-intensive goods, toys, and gadgets in the 1980s-1990s, all in keeping with Heckscher-Ohlin paradigm and riding on a massively undervalued yuan, gave China considerable advantage in light manufactures. The undervalued yuan was set in 1994 (CN¥8.28/US$) and stoutly defended but eventually allowed to appreciate 16% to CN¥6.11/US$ to assuage Western restiveness when the consensus was at least 25% devaluation.

China then found another way: the undervalued yuan was replaced by a massive direct fiscal subsidy to a select few industries which would serve a new deeper challenge and a new spur to its hegemonic challenge. Highly sophisticated technical marvels such as EVs, solar panels, and semiconductors delivered on the backs of massive direct fiscal subsidies are now the new face of Chinese exports.  This continued surge led to the deindustrialization of, and destitution in, the American and other western industrial heartlands. The USA became the chief importer from and chief debtor to the world ($35 trillion to date), largely enabled by its privilege of being the issuer of the global medium of exchange. This dominance is understood in the West as a result of heavy subsidies for EV Manufacturing in China (F. Bickenbach, D. Dhse, Rolf Langghammer and Wan-Hsin Liu, 2024).

Studies also show that this exorbitant privilege allows the US per capita income to rise by 17% plus. To counter the privilege, many countries try to become currency manipulators, risking the ire of the US Treasury. Both former US president and now Republican presidential nominee Donald Trump and his choice for vice-president JD Vance have both advocated a weaker dollar during the Plaza Accords.

The mad rush to renewables in transport since the 1990s was first seen as doing the global community a favor in the global warming crisis rather than as an assault on industrial hegemony. But the deindustrialization and consequent destitution in the rest of the world could not be ignored indefinitely.

USA RESPONDS: THE INFLATION REDUCTION ACT AND THE SCIENCE AND CHIP ACT
The Inflation Reduction Act represents the largest investment ($369 trillion in August 2022 and up to $3 trillion with private investment channeled over the next decade) towards reducing dependence on China. The USA has committed $53 billion to the Chips and Science Act to reshore US investment in semiconductor research and manufacturing; $39 billion of this is to build, modernize and expand chip fabrication as well as a 25% investment tax credit. Raising the import tariff on semiconductors 100% is a critical part of the come-ons to protect new home-bound investments. As one commentator observed: “The IR Act marked a paradigm shift in green industrial policy for the US, diverging markedly from free-trade neoliberal policies that had enjoyed bipartisan congressional support since the Reagan era.” (M. Lyons, “Climate Justice: Friendshoring, China’s Supremacy and America’s IR Act,” www.lowyinstitute.org/the-interpreter/climate-justice-friendshoring-china-s-supremacy-america-s-ir-act )

Before this, programs to improve industrial competitiveness and reduce the trade deficit were poohpoohed as “industrial policy,” a rather pejorative term in the lexicon of the liberal free trade circles in the USA.

China is beginning in a big way to assault the Western dominance in the EV car market; it has accounted for 80% of solar manufacturing and 60% of wind and battery production. China’s dominance and control of critical mineral production looms large and threatening. The net zero Paris commitment is proving a convenient cover for sideswiping the accepted global trade architecture of the world.

As response, the USA has committed $53 billion. President Joe Biden’s 100% tariff on imported EVs from China was intended to dent China’s unfair trade practices and protect local investment. Although the 100% tariff will be insufficient to keep Chinese EVs out in the low end of the spectrum ($10,000 or less); it will protect the high-end EVs like Tesla and heavier EV truck size bread-and-butter vehicles of US manufacturers.

WESTERN EUROPE RESPONDS
In June 2024, the European Union (EU) responded to this belief by also imposing a tariff of 17.4% to 38.1% against a range of high-tech products from China following the Biden administration’s lead in May 2024 (100% on EVs and 25% on batteries).

Chinese EVs have benefited from massive industrial policy subsidies. The massive home market allows massive economies of scale in production, which contributes to lower costs. The types of support range from below-market credit to state-owned and -operated corporations, rebates, sales tax exemptions, infrastructure subsidies, research and development funds, government procurement bias, and below-market land sales which, in 2023 alone, totaled to $45.3 billion according to the CSIS.

From 2009 to 2023 a total of $230 billion may have been granted as subsidies. This is far higher than industrial subsidies in Western countries as a percentage of GDP (China’s was about 1.73% in 2019 vs. say, South Korea’s 0.67%, Germany’s 0.41%, and the USA’s 0.39% of GDP). Purchase subsidies paid to producers for vehicles made in China not for imports and not to consumers amounted to €4.2 billion in 2022 but ended then. BYD received €1.6 trillion in 2022. The subsidy to CATL alone, the chief battery technology company in China in 2023 reached $809 billion. Regional government subsidies to EV manufacturers are also substantial but quite hidden.

Meanwhile, defenders of the Chinese challenge could point to the fact that EV vehicular subsidies as a percentage of total sales has dropped to 40% from 140% in early years. The average support per vehicle has dropped from $13,800 in 2018 to $4,800 less than the credit going to qualifying vehicles to buyers in the USA which is $7,500, under the Inflation Reduction Act of the USA.

Why not try the Plaza Accord Agreement solution? The Plaza Accord Countries agreed in 1986-87 to address the imbalance in favor of the raging Japanese economy by forcing a massive appreciation of the Japanese yen. But the world is different now. While China is posing a direct challenge to the USA as a new polar hegemon; Japan was clearly well within the fold of the US hegemon; Japan could be nudged towards an appreciation of its currency (up to 200%) even at the further appreciation cost of a prolonged recession. China has long resisted the drastic appreciation of the Yuan and will refuse a deflationary outcome to prevent social unrest; and, more importantly, its designs on the old hegemonic ranking will suffer. It is not as docile as Japan in the 1980s.

The Plaza Accords rebalancing is not in the cards.

 

Raul V. Fabella is a retired professor of the UP School of Economics, a member of the National Academy of Science and Technology, and an honorary professor of the Asian Institute of Management. He gets his dopamine fix from tending flowers with wife Teena, bicycling, and assiduously, if with little success, courting the guitar.

Elevate secures $5M to launch USD accounts for Filipino freelancers

Elevate, a Y-combinator-backed fintech startup headquartered in London and Dubai, has successfully raised $5 million in financing to expand its operations in the Philippines.

Since 2021, they’ve raised a total of $10 million in equity and debt from investors, including Y Combinator, Goodwater, Global Founders Capital and VSQ.

Elevate’s product launch in the Philippines aims to address the financial challenges faced by Filipino freelancers.

Elevate’s innovative platform is designed to simplify the process for freelancers in the Philippines to receive payments in US dollars (USD). It supports free and fast deposits from US and international employers and popular platforms like Upwork, Fiverr, PayPal, Deel, and Toptal.

For those transferring assets from USD accounts to Philippine-based banks, the platform offers the most competitive foreign exchange (FX) rates in the market. By partnering with multiple large global FX providers integrated with banks in the Philippines, the platform ensures access to the best rates available, making it a cost-effective solution for maximizing earnings.

In addition to facilitating USD transfers, Elevate offers a Mastercard debit card that users can utilize for online spending.

“We are thrilled to bring our innovative financial solutions to the Philippines, a market with a burgeoning freelance community,” said Elevate’s CEO Khalid Keenan. “Our goal is to empower freelancers by providing them with secure, efficient services and the best USD-peso FX rates that address their unique needs.”

A key differentiator for Elevate is its partnership with its sponsor bank, Bangor Savings Bank, a 172-year-old institution in Maine, USA, with over $7 billion in assets. Unlike other electronic money accounts such as Wise and Payoneer, Elevate accounts are insured by the United States’ Federal Deposit Insurance Corp. (FDIC) through Bangor Savings Bank, providing users with the security of knowing their funds are protected up to $250,000 in the event of bank failure. This partnership makes Elevate the only service enabling individuals in countries like the Philippines, Pakistan, and Bangladesh to open FDIC-insured US bank accounts.

“The introduction of FDIC-insured accounts through our sponsor bank, Bangor Savings Bank, is set to revolutionize the financial landscape for Filipino freelancers, offering them unprecedented security and convenience in managing their international earnings,” he added.

Since its launch in early 2024, Elevate has already attracted over 150,000 users globally, highlighting the strong demand for its services among freelancers and remote workers.

With 1.5 million Filipinos registered on online international freelancing platforms and an additional 1.3 million working in BPOs, mostly for US companies, the Philippines is a hot spot for remote work. Notably, in 2023, the Philippines surpassed India, the US, Brazil, and other countries to become the leading country for workers on Deel, a popular remote work platform. The Asia-Pacific region, including the Philippines, has been the fastest-growing area for remote work, alongside EMEA.

Looking ahead, Elevate plans to expand its customer support, content, and compliance teams in the Philippines in the third and fourth quarters of 2024.

The company also anticipates significant demand from other tech-savvy, educated workforces in Indonesia, Malaysia, Vietnam, and Thailand, as remote work continues to offer new opportunities across Southeast Asia.

Davao durian fest highlight of city’s Kadayawan season

BW FILE PHOTO/MAYA M. PADILLO

By Maya M. Padillo, Correspondent

DAVAO CITY — Durian, touted as “the king of fruit,” is in the spotlight this month with multiple varieties on exhibit during the Kadayawan sa Davao Festival.

The 10th Durian Festival, organized by the Department of Agriculture (DA) in Region 11, SM Lanang Premier, and the Durian Industry Association of Davao City, opened on Friday at the north wing of SM Lanang. The varieties on display include D101, puyat, native, arancillo, Montong Obosa, D24, Duyaya, Cob, and Durio Graveolens (Brunei).

Also sharing in the billing are fruits of the region like mangosteen, marang, and rambutan.

Lawyer Genevieve E. Velicaria-Guevarra, assistant secretary for Legislative Affairs at the DA, said durian is the symbol of Davao City’s character and strength.

“We celebrate not only our bountiful harvests but also our shared spirit, heritage, and resilience, as one community,” Ms. Guevarra said.

The Durian Festival runs until Sept. 15.

John Tan, CEO of Eng Seng Food Products (ESFP), a durian exporter, said the industry needs to enhance the crop’s quality to be competitive in the export market.

“We need quality durian before quantity. Lalo na ngayon napansin ko maraming linghod (unripe)… We need to educate the farmers para maka harvest sa tama na panahon. Sayang kasi hundred million ang mawawala dahil linghod, sayang natapon lang. Kasi pag linghod itatapon ’yan (I have noticed that many of the fruit are unripe. The farmers need to be educated when to harvest. Unripe fruit means hundreds of millions of pesos wasted),” Mr. Tan told BusinessWorld.

Mr. Tan said the DA and the Department of Trade and Industry in Region 11 have been conducting training for the farmers.

“We need to improve the quality of our durian. We need quality production of durian for export,” he said.

ESFP was one of the four exporters involved in the inaugural shipment of Davao durian to China in April 2024.

Mr. Tan said the exporters are hoping to start China deliveries next week at a volume of 300 to 400 containers.

Aside from China, he said exporters are targeting Canada and the US, with the Canada target set at about 10 tons of fresh fruit via air freight.

“We need to push for good variety and good quality para maging successful tayo sa (in order to succeed in the) export market,” Mr. Tan said.

New PRC building to rise in Vermosa Estate

AYALA Land, Inc. (ALI) has broken ground for the three-story office building of the Philippine Red Cross (PRC) Cavite Chapter headquarters inside its sixth-largest estate, Vermosa.

Located on Vermosa Boulevard, the PRC headquarters will serve as the primary blood center for the province of Cavite.

The firm said the blood center will allow the PRC to host blood drives and conduct testing and processing of blood, ensuring a steady supply for hospitals and patients.

“Ayala Land’s donation is a testament to our belief in the Philippine Red Cross’ mission to provide a safe and sufficient blood supply to those in need,” ALI Senior Vice-President and Head of Estates Group Christopher B. Maglanoc said in a statement over the weekend.

“We extend our heartfelt gratitude to the PRC for their trust in choosing Vermosa as the home for their new headquarters.”

He said that the partnership shows the organizations’ shared commitment to “making a difference in the lives of our fellow Filipinos” where healthcare services are accessible, and the well-being of citizens is a top priority.

ALI said the Imus branch in Vermosa will have a modern disaster communication center and storage for disaster response equipment. It will also include multipurpose facilities for training and workshops, as well as meeting spaces for support groups and community gatherings.

“This is another step forward for the Red Cross as we extend our blood, health, and welfare services to more people in Cavite and build a stronger Red Cross network in the country,” PRC Chairman and Chief Executive Officer Richard J. Gordon said.

ALI said that while the company donated the land, the construction of the building was funded by Okada Foundation, Inc.

“Our foundation’s main goal is to make and implement projects for health and education. We believe in public and private partnerships to address the needs of our country,” Okada Foundation Inc. President James G. Lorenzana said.

Vermosa is a master-planned Ayala Land estate located between the cities of Imus and Dasmariñas, Cavite featuring settings for active lifestyles.

Its amenities include sports facilities, retail establishments, residential properties, educational and civic institutions, and expansive open spaces. — Aubrey Rose A. Inosante