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World’s largest chief of staff organization expands in Asia/Philippines

Chief of Staff Association’s 5th Oxford Cohort

London, United Kingdom — The Chief of Staff Association (CSA) marked a significant milestone with the graduation of its 5th Oxford cohort, signaling not just academic accomplishment but also a broader vision for expansion and diversity. CSA CEO Trent Smyth expressed his commitment to extending the organization’s footprint within the Asia Region, aiming to provide strategic leadership training and networking opportunities for Chiefs across the globe.

With a presence in over 50 countries worldwide, CSA stands as the premier professional body for chiefs of staff in private corporations, governments, nonprofits, and the military. The completion of the CSA program at Oxford University is a crucial step toward achieving the esteemed “Certified Chief of Staff®️” designation.

The CSA, known for its online and on-campus training programs, has strategically collaborated with prestigious institutions such as Harvard Business School and Oxford Said Business School. Mr. Smyth emphasized the organization’s intention to establish a strategic regional presence in Asia, with a specific focus on the Philippines.

Trent Smyth, CEO of the Chief of Staff Association

“Manila is a fantastic jump-off point to many other strategic areas in Asia. Singapore, Malaysia, Indonesia, Japan, Korea, Thailand, and Taiwan are all nearby. We’ve been fortunate enough to have the pleasure of welcoming Brian Poe-Llamanzares into our organization. Moreover, Brian has volunteered to act as an OIC regional director based out of Manila to help us connect with more people in the region,” Mr. Smyth stated.

Brian Poe-Llamanzares, the first Filipino representative and the youngest graduate from his Oxford cohort, sees this expansion as a unique opportunity for Asians, particularly Filipinos, to enhance their leadership skills and tap into an international network. He expressed plans to establish a regional office in Manila, fostering collaboration with local executives.

“There is a growing demand for skills training in the region, especially in emerging markets like the Philippines. In the coming year, I hope to set up a small regional office here in Manila and invite over the leadership of the chief of staff association to meet with local executives,” Mr. Poe-Llamanzares remarked.

Having recently completed the Oxford Program, Mr. Poe-Llamanzares is eager to share the knowledge and experiences gained during his training with fellow Filipinos. He assured updates on the Philippines’ expansion would be communicated through his social media channels in the upcoming months.

For more information on the Chief of Staff Association, please visit their website: https://www.csa.org.

 

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Copenhagen targets $3 bln for emerging market greenfield renewables fund

UNSPLASH

DUBAI – Danish investment firm Copenhagen Infrastructure Partners is looking to raise $3 billion for a new fund focused on building renewable energy projects from scratch in emerging and middle-income countries, the heads of the fund told Reuters.

The 14-year Growth Markets Fund II it has just launched will target wind and solar power and niche investments such as battery storage and projects that turn electricity into carbon-neutral synthetic fuels, so-called ‘power-to-X’.

According to data firm Preqin, only one emerging markets greenfield renewables fund has raised more than Copenhagen wants to amass, although the 2014 $3.26 billion Guangzhou City Development Industry Fund is focused on China.

Getting more money to developing economies to help them transition to a low-carbon future is a central aim of the COP28 climate talks in Dubai, but most climate-focused funds have targeted safer, more reliable returns in developed countries.

While a deal to phase out fossil fuels has been hard to agree, more than 60 countries have backed a global agreement to triple renewable energy this decade.

Most of the world’s future emissions will likely come from emerging and middle income countries. They will need $2.8 trillion in investment by 2030 to meet cleaner energy goals including at least tripling renewable capacity, Copenhagen partner and co-head of the fund Niels Holst said.

“The key driver in these countries is that they need power. The growth in demand for electricity is enormous,” he told Reuters, adding that renewable energy was often the cheapest energy source.

Yet financing is far short of what’s needed, with investors deterred by the risks involved.

Only $550 million has been raised this year for funds focused on renewable energy projects in developing countries, against more than $1 billion last year and nearly $8 billion in 2020, Preqin data showed.

Rising inflation and interest rates have hit cleaner energy project returns in developed markets including Britain and the U.S.

Holst said the fund is targeting investment returns “in the teens”. “The power needs to be affordable and by it’s very nature the returns can’t be too high,” he added.

He did not specify a date by which Copenhagen aimed to have raised the funds.

Founded in 2012, Denmark’s Copenhagen manages 26 billion euros ($28.3 billion) of assets and runs 12 funds.

Recent development projects include an offshore wind farm in Bangladesh and the first 100% foreign-owned offshore wind energy schemes in the Philippines.

Copenhagen‘s new fund will be pre-seeded with a batch of around 20 projects, most of them based in Asia-Pacific and Latin America.

For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch newsletter here. – Reuters

Globe’s Hapag Movement, Lakbay Hibla unite to showcase indigenous fabric, community products

Hapag Movement’s sewing program participants got the opportunity to display their work at the Lakbay Hibla event.

In a dazzling display of creativity and cultural homage, Globe’s Hapag Movement and Lakbay Hibla recently joined forces for a transformative fashion extravaganza celebrating the Indigenous Peoples Month.

The awe-inspiring Lakbay Hibla Project, The IP Fabrics in Travel, highlighted the rich cultural heritage of the Philippines and creations of the Hapag Movement’s talented sewing program participants, who also modeled their products.  The Hapag Movement is a Globe of Good initiative aimed at reducing hunger and providing job opportunities to help families in need.

Organized by JCI QC Diamante with Marianas Momentous Events Management, the impressive Lakbay Hibla event held at the Hotel Lucky Chinatown aimed to promote, preserve and protect the Filipino indigenous fabrics and weaving traditions.

Monday Gonzalez (2nd from left), Globe Senior Director for Content Management and Creative Services, represented Globe at the event

“The Lakbay Hibla project showcases our indigenous fabrics in traditional clothing, as well as contemporary fashion. We asked ASEAN designers to feature them in their designs to promote our woven fabrics not just locally but also in other countries,” said Dani Vicente, JCI Quezon City Diamante President. “We want to help people in a sustainable way.  We don’t want to do a one-time project.  It doesn’t matter if it’s slow as long as it’s sustainable and they can carry it out in the future without our help.”

Hayden Ng, Founder of ASEAN Fashion Designers Showcase (AFDS), echoed Vicente’s statement: “We’re trying to promote the talents and crafts of Indigenous Peoples of the Philippines more to an international platform by coming together with ASEAN designers so there is a market available for them.  It also provides a livelihood for the indigenous people.”

The one-day runway show featured a remarkable lineup of 10 ASEAN Fashion Designers Showcase #fashionambassadors, who collaborated with JCI Quezon City Diamante to unveil their latest creations. These exceptional designs were brought to life by a cast of 40 talented Filipino models, including ASEAN Fashion Designers Showcase #modelambassadors Dom Petch from Thailand and Jan Villanueva from the Philippines.

The event’s success extended beyond the runway, offering the Hapag Movement’s sewing program participants a unique opportunity to display their work to a wider audience and opening doors for them in the evolving fashion landscape. The event also served as a platform for them to show that they can be a source of talented and skilled individuals in the fashion industry.

“We are delighted to collaborate with Lakbay Hibla for this event, a platform that not only spotlighted the exceptional skills of our sewing program graduates but also emphasized the Hapag Movement’s dedication to driving positive transformation in the fashion industry. This partnership marks an exciting new chapter, brimming with possibilities for our graduates and the Hapag Movement, fueling our anticipation for what the future holds,” said Yoly Crisanto, Globe Group Chief Sustainability and Corporate Communications Officer.

The partnership between Hapag Movement and Lakbay Hibla set a new standard for fashion events, proving that when creativity and social responsibility come together, the possibilities are limitless.

To learn more about the Hapag Movement, visit https://www.globe.com.ph/globeofgood.

 

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UK needs new plan to reverse hit to living standards, researchers say

REUTERS

LONDON – Britain needs a new economic strategy to reverse 15 years of falling living standards and worsening inequality, a leading think tank and an academic research centre said on Monday.

British productivity growth has been half that of other rich economies, costing workers an average of 10,700 pounds ($13,577) a year in lost pay, the Resolution Foundation and the London School of Economics’ Centre for Economic Performance said.

They were due to publish the concluding report of a research project entitled “The Economy 2030” at an event expected to be attended by finance minister Jeremy Hunt and the leader of the opposition Labour Party, Keir Starmer.

Both the ruling Conservative Party and Mr. Starmer’s Labour have pledged to speed up Britain’s slow pace of economic growth as they prepare for a national election expected in 2024.

“There is no excuse for fatalism,” Torsten Bell, chief executive of the Resolution Foundation, said.

“Closing the gap with peers like Australia, France and Germany would deliver huge living standards gains, with typical households over 8,000 pounds better off.”

Britain should shape its trade policy to focus on its strong services firms, boost transport investment in big cities such as Birmingham and Manchester, and fix the lowest public investment record among the Group of Seven economies, the report said.

Tax incentives should be aimed at young firms and individuals should be encouraged to take more business risks with higher unemployment insurance if they fail, it recommended. – Reuters

Poverty alleviation efforts of AboitizPower DU recognized by ASEAN

Accomplished champions of corporate social responsibility. (L-R) Singapore Minister for Social & Family Development and AMRDPE Chair Masagos Zulkifli (1st) and ASEAN Secretary-General Dr. Kao Kim Hourn (4th) hand the ASEAN RDPELA recognition to Davao Light, represented by Reputation Enhancement Department Head Fermin Edillon (2nd) and Community Relations Specialist Sherilyn Puno-Lariosa (3rd).

Aboitiz Power Corporation distribution utility Davao Light and Power Co., Inc. (Davao Light) was the Philippine private sector winner of the 6th ASEAN Rural Development and Poverty Eradication Leadership Awards (RDPELA) for the corporate social responsibility programs it conducted with various partners to help enhance the living standards and the quality of life of people within its service area.

The RDPELA is a regular biennial activity of the Senior Officials Meeting on Rural Development and Poverty Eradication intended to recognize, encourage, and promote community development and anti-poverty initiatives in the ASEAN member states.

The RDPELA recognized Davao Light’s efforts in helping local cooperatives and associations like Samahan ng may iba’t-ibang Kakayahan sa Dabaw (SAKADAB), as well as establishing technical vocational facilities for the Philippine Department of Education via Project e.Lab.

“We believe that enabling dignified, sustainable livelihoods and providing education and upskilling opportunities open up more doors for our kababayans to get out of poverty,” said Davao Light President and COO Rodger S. Velasco. “Since the Davao region’s poverty incidence is still quite high at 11.9% in 2021[1], we hope to do our own fair share in getting that number down through our corporate social responsibility initiatives with our partners.”

SAKADAB

Davao Light, along with the Aboitiz Group’s social development arm Aboitiz Foundation Inc. (Aboitiz Foundation), has been supporting SAKADAB since 2012, starting when Aboitiz employees with other groups and organizations helped build their houses in the Gawad Kalinga community.

Since then, they have been recipients of livelihood materials, equipment, and training meant to build the capability of its differently-abled members and ensure the sustainability of the cooperative.

Help was most critical during the height of the COVID-19 pandemic, when the members of the consumer cooperative bore the brunt of putting food on the table for their respective families amidst great economic uncertainty. Davao Light and Aboitiz Foundation provided support to SAKADAB’s bakeshop business via the donation of baking materials.

The distribution utility also took initiative to upskill SAKADAB members in dressmaking to add to the cooperative’s income-generating projects. As a result, several members received their national certification or NC II in dressmaking from the Technical Education and Skills Development Authority (TESDA) after having passed a National Competency Assessment. This deems them ready for work or employment in that endeavor.

SAKADAB also received a sewing business package worth P300,000, which included four sewing machines, as well as other tools, materials, and supplies.

Most recently, the group was gifted with a fully-renovated production facility at the Gawad Kalinga community in Tugbok, Davao City, complete with better lighting, a ventilation system, and additional office equipment for product marketing. The facility will serve as the cooperative’s work and production area for its handicrafts and sewing businesses.

“We are very grateful and we appreciate all the things that you have done just to make our lives comfortable and [our livelihoods] sustainable… using our talents and skills so that in the future, we can stand on our own,” said SAKADAB President Mirasol Magalasin.

Songs of gratitude. 18 SAKADAB members rendered songs during the turnover ceremony of their new production facility at the Gawad Kalinga community in Tugbok, Davao City. The cooperative members are also skilled in handicraft making, baking, and sewing.

Project e.Lab

To date, a total of 43 high schools were beneficiaries of a fully furnished laboratory for electrical installation and maintenance (EIM) under Davao Light’s Project e.Lab. The project was accomplished with Aboitiz Foundation as part of the advocacy to help nurture young minds and encourage careers in electrical engineering, technical vocational livelihoods and the like.

As these laboratories are enhanced with modern equipment at a quantity that corresponds to the classes’ population, high school students taking up EIM would no longer have to share wiring boards and other tools. As a result, they are able to do more wiring activities, with teachers also able to more accurately assess each individual’s skill and progress.

“It’s a big help and advantage for us. Because of this [facility], our instructor can share actual lectures [while we work], unlike before when we had to take turns since we only had one wiring board,” said Oliver Pepito, a senior high school student from one of the beneficiaries, Biao National High School. “Now, we can simultaneously perform, which enhances our knowledge.”

Hard at work. With a fully furnished EIM laboratory, students would no longer have to share wiring boards and equipment. Teachers can also more accurately assess each individual’s skill and progress.

Project e.Lab enables a hands-on learning environment for students to understand and apply radical electrical installation and maintenance concepts, as well as industry standards of how to mitigate risks, prevent accidents, and maintain quality control in electrical assets.

Ultimately, the facility can help aspirants earn a national certification from TESDA and make them more competitive and technically-proficient professionals.

Future forward: investing in the youth

Rounding out these efforts, Davao Light and Aboitiz Foundation have also been supporting more than a hundred scholars in college throughout the years by providing financial assistance to each beneficiary for their tuition fees, books, uniforms, and miscellaneous expenses.

To date, some of these scholars have become licensed architects; registered civil, mechanical, electrical, and geodetic engineers; nutritionists; and professional teachers.

“We [had] different struggles [and] different stories, but we ended up [in] the same [place] and it’s the success we have achieved [and recognize] today. Davao Light and Aboitiz Foundation have helped each one of us… they literally gave light to our future,” said Jonas Meneses, a Davao Light scholar and an architecture board exam passer, during a get-together kamustahan session.

“We are very grateful to hear stories of you supporting yourselves, your families, and your communities through your professions after we have supported your education. You have embodied the aspirations of Davao Light’s scholarship program,” Velasco of Davao Light told the scholars during the same event.

The scholarship program is in line with the fourth Sustainable Development Goal of the United Nations, which is to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Academic achievers. Nearly 50 scholars of Davao Light gathered for a kamustahan event at the power utility’s office in C. Bangoy Sr. Street, Davao City last September. Some of the scholars were recognized for graduating and recently passing the board exams of their respective courses.

Davao Light’s nomination for the 6th RDPELA originated from the endorsement of the Philippines’ Department of Education – XI and the National Anti-Poverty Commission (NAPC). The country was tasked to nominate two candidates, with the other being a non-governmental or civil society organization.

On its website, the NAPC indicated that it will coordinate with ASEAN RDPELA winners and its partners “to explore possible avenues to advocate, replicate, scale up, imbue, or mainstream the winners’ successes into government programs or policies.”

In receiving the award at the Sands Expo and Convention Centre in Singapore, Davao Light was among the Philippine delegation led by NAPC Secretary Lope Santos III that attended the Official Dinner of the 13th ASEAN Ministers Meeting on Rural Development and Poverty Eradication or AMRDPE.

ASEAN, or the Association of Southeast Asian Nations, is a political and economic union composed of the countries Brunei Darussalam, Cambodia, Indonesia, Myanmar, Lao PDR, Malaysia, the Philippines, Singapore, Thailand, and Viet Nam.

 

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Nov. inflation likely eased to 4.4%

Inflation likely eased further in November, a BusinessWorld poll showed. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Keisha B. Ta-asan, Reporter

HEADLINE INFLATION likely eased further in November amid lower pump prices, a slower rise in food costs and high base effects, analysts said.

A BusinessWorld poll of 15 analysts yielded a median estimate of 4.4% for November inflation, which is also the midpoint of the 4% to 4.8% estimate given by the Bangko Sentral ng Pilipinas (BSP) last week.

If realized, last month’s consumer price index (CPI) would be slower than 4.9% in October and 8% logged a year earlier. However, it would mark the 20th straight month of inflation breaching the BSP’s 2-4% target range.

Analysts' November inflation rate estimates

The Philippine Statistics Authority will release the November inflation report on Tuesday (Dec. 5).

Analysts said high base effects may have significantly helped in bringing down the November figure. 

“On a year-on-year basis, the reading will be flattered by a high base effect,” Moody’s Analytics economist Sarah Tan said in an e-mail. 

She said Typhoon Karding (international name: Noru) damaged farms and disrupted supply chains in Luzon last year, which pushed food prices up in the fourth quarter of 2022.   

“Lower food and oil prices would be the two main reasons for the disinflation narrative to continue,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message. 

He said better weather conditions this month led to easing food supply constraints, while the decline in global oil prices likely prompted fuel retailers to roll back prices this month.

In November alone, pump price adjustments stood at a net decrease of P1.90 a liter for gasoline, P4.45 a liter for diesel, and P3.3 a liter for kerosene.

“We also estimate November core inflation to settle at 4.9% from 5.3% the previous period. This means more for the longer-term expectation for headline inflation,” Mr. Asuncion said.

Core inflation excludes volatile prices of food and fuel items. For the first 10 months of the year, core inflation stood at 7%.

However, inflation remains above target in November as prices of some food items and electricity rates went up, Ms. Tan said. 

“According to the Department of Agriculture’s price monitoring tracker, the prices of major agri-fishery commodities in Metro Manila such as rice, fish, livestock and poultry produce were higher in November than October,” she said. 

Data from the Agriculture department showed that regular-milled rice prices ranged from P33 to P52 a kilo as of Nov. 30,  wider than the P41 to P44 band on Oct. 31. Retail prices of fish and meat products also went up.

“Further, households and businesses bore the brunt of a hike in electricity rate by Manila Electric Co. (Meralco) — one of the country’s main utilities providers — due to higher transmission charges,” Ms. Tan said.

Meralco earlier said the power rates for typical households increased by P0.2347 per kilowatt-hour (kWh) to P12.0545/kWh in November.

China Banking Corp. Chief Economist Domini S. Velasquez said the significant increases in electricity rates and cooking gas prices may have offset the decline in fuel costs. 

“While areas serviced by Meralco experienced only a slight increase in electricity rates, other regions in Luzon and Visayas saw substantial increases in electricity rates. These factors will have an impact on the overall inflation rate for November,” she said.

Liquefied petroleum gas (LPG) prices went up by P0.45 a kilogram in November, its fourth straight month of increase. The cost of a regular 11-kg LPG tank rose by P4.95 to P5.50.

Security Bank Corp. Chief Economist Robert Dan J. Roces said restaurants and accommodation costs usually go up due to holiday demand.

“While the base effect from last year’s inflation should pull down the headline, the central bank will likely remain vigilant on the upside risks,” he said.

INFLATION DOWNTREND?
According to Ms. Tan, inflation may continue to ease in December, but the outlook remains uncertain for 2024.

“Come 2024, the path to lower inflation will be a bumpy one due to speed humps in the form of the food supply constraints, higher transport fares and wage adjustments, and the strengthening of the El Niño weather pattern that will hamper crops and lift food prices,” she said.

“Over the next few months, we expect inflation to hover around the BSP’s upper-end target of 4% before firmly returning within the 2-4% target range in mid-2024,” she added.

BSP Governor Eli M. Remolona, Jr. earlier said inflation may hit the 2-4% target briefly in the first quarter before it picks up again to above target from March to July.

China Bank’s Ms. Velasquez said December inflation may still be above the 2-4% target.

“But in the first quarter of 2024, we will likely see inflation nearer the 3% level, before moving above 4% again from April to August. This trend is largely driven by base effects,” she said.

Inflation peaked at 8.7% in January, before easing until July this year. Inflation picked up in August and September, before it started slowing again in October. 

“We expect inflation rate to stay at around the same level in December, before settling within the 2%-4% target in January, largely helped by base effects,” Makoto Tsuchiya, an economist at Oxford Economics, said in an e-mail. 

“Although risks are tilted to the upside given high uncertainty over supply-chain disruptions and climate-related issues, CPI should average 3.6% in 2024, higher than BSP’s target midpoint but within the target range,” he added.

In November, the BSP raised its baseline inflation forecast to 6% in 2023 (from 5.8% in September) and to 3.7% in 2024 (from 3.5%) but cut its 2025 inflation estimate to 3.2% (from 3.4%).

The BSP also gave a risk-adjusted inflation forecast at 6.1% for 2023, 4.4% for 2024 and 3.4% for 2025.

There is also a “decent chance” inflation returning to the 2-4% target by the end of the year, Pantheon Chief Emerging Asia Economist Miguel Chanco said.

“At the moment, we’re expecting a substantial slowdown in the average rate of inflation to 2.8% next year, from 6% this year, giving the BSP more than enough room to consider normalizing monetary policy,” he said. 

At its Nov. 16 policy meeting, the BSP kept its target reverse repurchase rate at a 16-year high of 6.5%. The BSP has raised borrowing costs by a total of 450 basis points (bps) from May 2022 to October 2023 to tame inflation.

“Our forecast for now is for 100 bps worth of rate cuts in 2024,” Mr. Chanco added.

Mr. Remolona has said policy easing is still not on the table for the Monetary Board, and the current policy settings may continue to remain tighter for longer until inflation firmly falls within the 2-4% target.

The Monetary Board will have its final policy-setting meeting on Dec. 14.

AMLC says gov’t agencies continue to implement action plans vs dirty money

PHILIPPINE STAR/WALTER BOLLOZOS

PHILIPPINE GOVERNMENT agencies continue to ramp up efforts to address strategic deficiencies in its anti-money laundering and counter-terrorism financing efforts to ensure it exits the Financial Action Task Force’s (FATF) “gray list” by January, the dirty money watchdog said.

The Anti-Money Laundering Council (AMLC) said the Philippines is committed to bolstering the effectiveness of its anti-money laundering (AML), counter-terrorism financing (CTF) and counter proliferation financing regime, even as the January 2023 deadline imposed by the FATF has lapsed.

“Despite the FATF’s note on the lapse of January 2023 deadlines, it is crucial to highlight that the nation’s pertinent agencies remain dedicated to swiftly and effectively implementing the outstanding action plans,” it said in a Nov. 30 statement.

Last October, FATF kept the Philippines in its gray list of jurisdictions under increased monitoring for dirty money risks. It noted the Philippines still needs to address five out of the 18 deficiencies. 

President Ferdinand R. Marcos, Jr. gave all government agencies until Nov. 30 to address deficiencies in their AML strategies.

He also directed the AMLC to submit a a comprehensive report on the status of the implementation of the National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Strategy 2023-2027 on or before Dec. 8.

AMLC said key government agencies are focused on enhancing risk-based supervision of designated nonfinancial businesses and professions (DNFBP).

This includes implementing anti-money laundering and counter-terrorism financing controls to manage risks linked with casino junkets, and intensifying the investigations and prosecutions of money laundering and terrorism financing cases.

The government is also focused on refining law enforcement agencies’ access to beneficial ownership information to ensure its accuracy and timeliness.

“The Philippines has made leaps in becoming a strong international partner in money laundering and terrorism investigations, building a strong beneficial ownership information system in line with best practices, and establishing a robust DNFBP risk-based framework ahead of the global network,” AMLC said.

“The relevant agencies’ commitment extends beyond timelines, focusing on establishing a robust and compliant AML/CTF framework in the Philippines,” it added.

AMLC urged the private sector to help in the government’s efforts to exit the FATF’s gray list by January 2024.

“First, for covered persons — designated nonfinancial businesses and professions, registration with AMLC of lawyers, accountants, company service providers, dealers in precious metals and stones, and real estate brokers and developers is a critical component of an effective risk-based supervision of DNFBPs,” it said.

Companies are also urged to enroll in the Securities and Exchange Commission’s Electronic Filing and Submission Tool (e-fast) and submit the general information sheet with beneficial ownership declarations.

“The Philippines values the guidance and recommendations from international bodies like the FATF and remains committed to continuous improvement and collaboration,” the AMLC said.   

“By working hand in hand with our international partners and leveraging the collective strength of our national agencies, the Philippines continues its momentum in addressing its strategic deficiencies and further ensure the resilience and integrity of its financial landscape.” 

The Philippines has been on the FATF’s gray list since June 2021. Government officials earlier said they hope the Philippines can exit the gray list by January 2024. 

Earlier, International Monetary Fund Representative to the Philippines Ragnar Gudmundsson said the country should boost its efforts against money laundering and address risks related to dirty money to maintain a sound macroeconomic environment.

“Efforts to exit the FATF gray list should be stepped up to reassure foreign investors and reduce financial transaction costs,” Mr. Gudmundsson said during the BusinessWorld Forecast 2024 economic forum on Nov. 22. — Keisha B. Ta-asan

More foreign chambers oppose PPA’s proposal to hike storage fees

PHOTO COURTESY OF ICTSI

MORE FOREIGN CHAMBERS are opposing the Philippine Ports Authority’s (PPA) proposal to increase storage fees, saying this is ill-timed.

British Chamber of Commerce Philippines Executive Director Chris Nelson said the PPA’s proposal to hike port storage fees should be reviewed since it may affect inflation.

“The key at the moment is to actually keep bringing inflation down… When you put on storage fees, then of course there’s going to be a pass on to the importers or whoever’s distributing it,” he told reporters on Thursday.

Inflation eased to 4.9% in October from 6.1% in September. This was the slowest pace in three months but October marked the 19th straight month that inflation breached the central bank’s 2-4% target band.

“At this particular moment, you do not want prices going up, we want prices to be lower. So, I think it would be very good if we did look at that,” Mr. Nelson said.

At a public consultation in October, the PPA proposed a 32% increase in the storage charges for import, export, and transshipment containers, according to the Philippine Exporters Confederation, Inc. (Philexport). The PPA also plans to impose a 150% surcharge on the corresponding storage rates with an increase for reefer containers.

The PPA has said the increase in storage charges will ensure optimal use of the yards and encourage immediate withdrawal of containers to prevent congestion.

German-Philippine Chamber of Commerce and Industry President Stefan Schmitz said that the increase in storage fees might not be the “right signal” amid the high inflation environment.

“I think we see it even internationally that everybody’s trying to adjust pricing one way or the other. Inflation presses us all so I’m not sure whether [the increase] is the right signal right now, right when everybody is trying to do things more efficiently than trying to charge more,” he said.

Instead of raising storage fees, Mr. Schmitz said the PPA should look into why containers are being delayed. 

“I think you need to have a look at the reasons why things are delayed. Is it because of inefficiencies during clearances or is it the importers mistake? I can understand that the PPA doesn’t make a distinction there, but I don’t think [that the increase] is the right message, personally,” he added.

In its position letter submitted to the port regulator on Nov. 6, Philexport said the PPA’s proposal should go through a regulatory impact assessment as a standard operating procedure under the Ease of Doing Business law.

Philexport said that the increase is “too onerous” if the PPA will be imposing fees on the overstaying containers due to reasons beyond the shipper’s control such as during the arming and disarming of E-TRACC devices on containers, and downtime of the PPA’s information technology systems, among others.

Meanwhile, the Anti-Red Tape Authority (ARTA) said that it is waiting for any formal request regarding the proposed hike in port storage fees.

“What we always say is that if there is a proposed increase by way of a regulation, it should undergo the regulatory impact assessment,” ARTA Secretary Ernesto V. Perez told reporters last week.

“It is the mandate of ARTA to require the PPA to subject any proposed regulation to increase fees to conduct regulatory impact assessment,” he added. 

Last month, the European Chamber of Commerce of the Philippines opposed the increase in storage charges, saying it will make the country less competitive for trade. 

Last week, American Chamber of Commerce of the Philippines, Inc. Executive Director Ebb Hinchliffe said that the chamber is not in favor of any kind of increase in storage fees as businesses are still recovering from the pandemic.

According to Mr. Hinchliffe, the Joint Foreign Chambers will soon release a statement regarding the issue.

Sought for comment, the PPA is yet to respond as of press time. — Justine Irish D. Tabile

Financial services for every Filipino

In promoting the value of financial services among Filipinos, it should be ensured that such services are accessible to everyone. This is what financial inclusion aims.

World Bank defines financial inclusion as a state in which “individuals and businesses have access to useful and affordable products and services that meet their needs — transactions, payments, savings, credit, and insurance — delivered in a responsible and sustainable way.”

Having access to these services gives people the ability to save and manage their finances, generate income, as well as prepare and recover from difficulties. Hence, as the World Bank considers, financial inclusion can be “a key enabler to reduce extreme poverty and boost shared prosperity.”

Financial institutions have a fundamental part in making financial inclusion happen. As the largest Filipino-owned stock life insurance firm with a commitment to believing in every Filipino’s capacities and dreams, Cocolife does its part in achieving financial inclusion through accessibility and affordability and extending the reach of its financial services as well as advocating for equity and equality as an organization.

Cocolife offers a range of financial services — from insurance, investments, to loans — to support Filipinos’ respective financial needs and goals.

When it comes to life and health insurance, Cocolife designed its products with flexibility to cover every Filipino’s unique needs, while also ensuring its affordability to their financial capacities. This is because the company believes that every Filipino should be able to access insurance and healthcare.

“Cocolife aims to bring insurance to the household of every Filipino family. Given the benefits of a sound insurance cover for individuals and families, our countrymen should be able to maximize its benefits to have a more financially secure and stable life,” Cocolife’s SVP-Head of Operations Jose Alfonso Aquino said.

Jose Alfonso Aquino, Senior Vice-President and Head of Operations, Cocolife

“Cocolife’s plans are affordable and flexible since they can be customized according to one’s budget and need. You can have a plan adjusted according to a preferred life coverage and attach more benefits such as riders,” he added, ensuring also that the insurance company can give plans for every Filipino of various income levels.

The company also makes investing accessible for Filipinos through some of its insurance offerings. Its affordable investment-linked life insurance plan LifeVest allows them to financially protect their families while also growing their investments. It also has Flexi-Investment that lets clients design their investment and insurance plan to match their needs.

While also ensuring that its products are diverse and can meet the needs of Filipinos, Cocolife also seeks to expand the reach of its service throughout the Philippines.

Among Cocolife’s efforts to broaden its reach is to have a presence in key areas near to rural areas. The company also utilizes a digital platform to enhance the accessibility of its services. It recently launched its new customer portal Cocolife MyPolicy, which its clients can access over the Internet and allow them to make transactions.

So far, Cocolife has 41 branches across the country, covering locations such as Butuan, General Santos, Palawan, Tacloban, and Tarlac.

Cocolife also ensured the accessibility of its services to persons with disabilities (PWDs). “Our head office, all branches nationwide, bancassurance partners, and online marketing and sales channels are readily available to service them,” Mr. Aquino assured.

The company also made partnerships with other sectors to give assistance to Filipinos with disabilities. Last March, Cocolife worked with the Mobile Hope Program headed by Councilor Arthur L. Allad-iw and the local government unit of Baguio City to donate wheelchairs, crutches, and canes.

Fairness and equality are promoted as well in Cocolife’s entire operations, as it believes everyone deserves to have the best service. The company assures that its services and products know no race, religion, preference, and title.

It also actively takes part in information advocacies to uphold awareness for the lesbian, gay, bisexual, transgender, queer, questioning, intersex, asexual (LGBTQIA+) community.

“Cocolife ensures equality in accommodating and processing applications regardless of gender. The company adheres to strict compliance to policies and procedures to ensure that every policyholder is treated equally with the highest standard of service and respect,” Mr. Aquino said.

And as it promotes financial inclusion through its service, Cocolife also applies this to the people within the organization, particularly through education. The company holds financial literacy programs for its people to gain a more profound understanding of finance and investment and how to apply these principles to their everyday lives.

Opportunities are also presented to the people at Cocolife, such as participation in local and international conventions and taking postgraduate programs. It also values a culture of work-life integration in the organization.

Cocolife is one of the employers recognized in HR Asia The Best Company to Work For in 2022 and 2023.

Learn more about Cocolife’s new and comprehensive life insurance products by visiting www.cocolife.com.

 

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MPTC looks to tap local, foreign banks to reduce debt before IPO

METRO PACIFIC Tollways Corp. (MPTC) is looking to tap local and foreign banks as it seeks to raise fresh funds after putting its planned initial public offering (IPO) on hold, its top official said.

“The general outlook is we need to raise money to reduce our debt level. The problem is our debt level is huge — we have the highest level in MPIC, even higher than Meralco (Manila Electric Co.),” Rogelio L. Singson, president and chief executive officer of MPTC, told reporters on the sidelines of a forum last week.

MPTC, the tollways unit of Pangilinan-led Metro Pacific Investments Corp. (MPIC), earlier said it will defer its IPO to 2025 as the company studies its options amid a plan to form a joint venture company with San Miguel Corp. (SMC).

MPIC earlier announced it was planning to list MPTC on the stock market after its delisting from the Philippine Stock Exchange in October.

The joint venture company with SMC to build expressways could be the candidate to list at the Philippine Stock Exchange.

“Our (debt) level is about P145 billion to P150 billion but as we finish where revenues are coming, we’re able to pay off. That is why we are looking at IPO or strategic investors,” Mr. Singson said.

With the company postponing its planned IPO to 2025, the company is looking at tapping foreign and local banks, Mr. Singson said, adding that it needs to raise about 30% of its debt or between P40 billion to P45 billion.

Asked whether the MPTC is looking at a bond issuance, Mr. Singson said: “In what form, I do not know yet, but we need to raise funds to gap our debt level before the IPO.”

“We need to reserve a portion for IPO. If we need to raise P45 billion, half of that will be from strategic investors, half IPO. We want the public to share,” he added.

MPTC is the tollways unit of MPIC, 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. — A.E.O. Jose

Pharrell Williams takes Louis Vuitton to Hong Kong harbor runway

EU.LOUISVUITTON.COM

HONG KONG — Pharrell Williams took to Hong Kong for his second Louis Vuitton runway outing, showcasing the label’s latest menswear designs on a runway overlooking the city’s harbor at night. (See the show here: https://tinyurl.com/ymdewq9d)

The event drew crowds to the Victoria Dockside, a waterfront promenade lining a sprawling complex of shopping malls, exhibit halls and hotels built by Adrian Cheng, the scion of one of Hong Kong’s top property developers.

The LVMH-owned label’s star-studded event comes as post-pandemic tourist flows resume in the region, and as Hong Kong seeks to regain its luster after prolonged periods of lockdowns deflated its retail scene.

Luxury labels are flocking to Asia, and China especially, a key market for the industry, while rising inflation cools appetite for high-end fashion in the United States and Europe.

Fans gathered before the show — some on boats — angling to see celebrities like Chinese actor Dylan Wang and Hong Kong boy band Mirror, as a traditional wooden junk boat floated nearby, its sails lit up with Louis Vuitton monograms.

Ukulele players in T-shirts kicked off the show, playing music composed by Williams, American rapper Swae Lee, and Puerto Rican reggaeton singer Rauw Alejandro.

Models marched down the Avenue of Stars — covered in sand — parading relaxed, tailored looks evoking sailor uniforms, breezy Hawaiian shirts, and varsity jackets with prominent shell motifs.

Williams, 50, famous for pop hits “Happy” and “Blurred Lines,” generated considerable buzz with his first runway show for the label — the world’s biggest — in Paris in June, performing on the Pont Neuf with Jay-Z. — Reuters

China, Chongqing, Changan (Part 1): Swinging for the fences

A line of Changan vehicles and its affiliated brands are parked at the Changan Global R&D facility in Chongqing, China. — PHOTO BY KAP MACEDA AGUILA

The China automaker has lofty global aspirations, and the numbers show them

UNDERSTANDABLY, there are now loftier aspirations for Changan Auto in the Philippines when it did a reboot of sorts last September — publicly debuting under a new country distributor group.

London-based Inchcape, the “largest independent global automotive distributor and retailer in the world” with a presence in over 40 markets across five continents, takes over the reins of China’s oldest car maker — adding to its considerable local portfolio of brands here which include Mercedes-Benz, Jaguar, Land Rover, Jeep, Dodge, RAM, Chrysler, Harley-Davidson, and a Mazda dealership, following its merger with CATS.

But obviously due to its more accessible price points, Changan Auto is envisioned to move more units and fill the garage of a greater number of car browsers.

It takes a couple of hours by plane from Hong Kong to Chongqing, which lies in a mountainous region. The undulating terrain is seemingly only broken by the tranquil meandering of the mighty Yangtze, which at some point meets with the Jianling River.

The Chongqing Jiangbei International Airport is built to impress — appearing a little too large for the present traffic of visitors, at least the time we are there. But that may just also be the People’s Republic of China’s Central Government future-proofing the municipality for anticipated growth. Indeed, opened in 1990, the airport has gone through multiple expansion phases.

Our group of dealers, bank partners, members of the media, and content creators are greeted by a cold rush of air as we step out of the terminal and head for our bus. This place can get very hot and humid, we are told by our local guide, but we have fortuitously come at a time where the weather is mild.

Hereabouts is home to Changan Auto, the smallest of the so-called “Big Four” state-owned vehicle marques. However, it is the biggest seller of ICE (internal combustion engine)-powered vehicles in the country.

Changan develops vehicles of sub-brands Deepal (or Shenlan, purveying electric vehicles), Avatr (its premium EV line with joint investor CATL, the world’s leading battery manufacturer), Changan Qiyuan (electric vehicle line under the Changan brand), Changan Uni (ICE-powered vehicles), Oshan (mid-level SUVs and MPVs), and Kaicene (commercial vehicles).

Speaking with “Velocity,” Changan Auto Philippines General Manager Maricar Parco shares, “That’s the beauty of this partnership between Changan and Inchcape. The whole brand portfolio of Changan Auto is available for Inchcape Philippines. Again, we introduced the Changan ICE vehicles and previewed the Deepal which we hope to introduce as soon as next year. And because of the proximity of China to the country, we can get our vehicles quite quickly, and it’s really just a matter of having the business proposition approved.”

During a presentation at the massive Changan Global R&D Center, we are told that Changan’s global footprint involves some 72,000 employees, and has created around one million jobs across the supplier/contractor chain. With a market capitalization of RMB210 billion, Changan has 73 branches and subsidiaries, nine manufacturing hubs, and 27 vehicle and power plants in 64 countries and regions. Its global dealership network is 9,000-strong, peopled by 120,000 service staff, and considers the following as its key markets: Mexico, Pero, Chile, Russia, Uzbekistan, Egypt, Saudi Arabia, South Africa, Thailand, and Pakistan.

The Chongqing facility is the nexus of a global network of 10 R&D centers located in Beijing, Shanghai (software development center), Hefei, Japan (styling design center), the US (intelligent driving R&D center), Hebei (light vehicle R&D center), the UK (power R&D center), Germany (styling design center), and another in Europe (design center). Its R&D activities are overseen by a combined complement of 17,000 people from 30 countries.

Back to Inchcape, the Philippines actually becomes its first partnership with Changan Auto in Asia-Pacific, effectively becoming a gateway to presumably more markets here.

If you’re wondering, “Chang-an,” means “lasting safety” in its traditional Chinese form, and the company embraces this as it claims to not only boast a “comprehensive and complete product lineup to the Filipino that is competitive in pricing, yet also exceptional when it comes superior driving performance, in-car technology, and intelligent driving and safety systems.”

At the brand’s aforementioned recent relaunch, Changan International Corp. Vice-General Manager Tom Yin said that the main goals of Changan are electrification, increased connectivity, and a so-called “vast ocean” plan that targets the sale of 1.2 million cars outside of China by 2030.

Meanwhile, Inchcape Philippines Managing Director Alex Hammett had insisted that the global partnership with Changan, inked this year, promises “much better services” to the growing number of Changan customers in the Philippines. Inchcape is poised to leverage its “industry-leading digital and data analytics capabilities based here in the Philippines,” continued Mr. Hammett. “(It’s here) where we have our digital center with over 650 employees working on digital solutions, AI (artificial intelligence), machine learning, cybersecurity, and so on.”

During a recent conversation with this writer, the executive revealed plans to set up a regional Inchcape office in the Philippines. It makes sense, he said, owing to the presence of the digital delivery center, the Filipinos’ fluency in the English language, and Inchcape’s confidence in its CATS Group partner.

Inchcape Philippines Chief Operating Officer Francis Jonathan “Frankie” Ang told “Velocity” the group and its affiliated brands are currently in the process of laying down the IT infrastructure that will bring its systems up to speed with Inchcape worldwide standards and redound in obvious benefit to both internal and external stakeholders.

Seeing the girth and breadth of Changan’s operations in Chongqing, it’s easier to fathom how serious the brand is about putting out products that not only look good, but are keenly tuned and tested to pass the sniff test of increasingly discerning car buyers in China, and well beyond its borders.

More about this in our next issue.

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