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Over 2,200 homes to rise in Pampanga, Manila, Misamis Oriental, and Davao as Pag-IBIG approves funding for 4PH projects

A total of 2,264 housing units are set to rise in Pampanga, Manila, Misamis Oriental, and Davao City as Pag-IBIG Fund approved a P929-million revolving credit line for the Social Housing Finance Corporation (SHFC) to fund housing projects under the government’s Pambansang Pabahay para sa Pilipino Housing or 4PH Program, Pag-IBIG Fund’s top officials announced last Dec. 15.

“I am happy to report that our key shelter agencies remain united in their mission of bringing opportunities for homeownership closer to our fellow Filipinos, especially the underserved. With Pag-IBIG Fund’s approval of a revolving credit line for the SHFC, we are now better equipped to provide our informal settler families (ISFs) with affordable housing in a safe environment under secured communities, which is what we envision under the 4PH Program of President Ferdinand R. Marcos, Jr.,” said Secretary Jose Rizalino L. Acuzar, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.

Pag-IBIG Fund’s revolving credit line for the SHFC shall finance the construction of medium and high-rise condominiums under the 4PH program consisting of 996 units in San Fernando City, Pampanga, 352 units in Tondo, Manila, 416 units in Tagoloan, Misamis Oriental and 500 units in Davao City. To ensure the proper and efficient use of funds, the revolving credit line contains safeguards which include the corresponding loan collaterals provided by the SHFC, a maximum payment term of three (3) years and provisions ensuring the release of funds for the intended projects.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, meanwhile, stated that Pag-IBIG Fund’s credit line for the SHFC is part of its commitment to the Marcos Administration’s efforts of addressing the housing backlog under the 4PH Program.

“Pag-IBIG stands as the single largest source of home financing in the country today, with a share of nearly 40% of the home mortgage market. We recognize our role in providing the financing for socialized housing projects so that these become more accessible and affordable for low-income earners. We are happy to partner with the SHFC under the Pambansang Pabahay para sa Pilipino or 4PH Program, so that our ISF communities will now have a better chance of owning quality homes in sustainable communities. Our members can expect more similar partnerships to provide them even more opportunities to own a home,” Acosta said.

 

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Rates to stay higher for longer — IMF

The International Monetary Fund retained its Philippine economic forecasts at 5.3% this year and 6% next year. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE central bank should keep interest rates higher for longer until inflation fully returns to target, the International Monetary Fund (IMF) said.

This comes after the Executive Board of the IMF concluded its 2023 Article IV Consultation with the Philippines.

“Directors agreed that monetary policy has been tightened appropriately to anchor inflation expectations. They emphasized the need to maintain a restrictive policy stance until inflation fully returns to target and to remain ready to tighten further should upside risks to inflation materialize,” the IMF said in a Dec. 15 statement.

The Monetary Board last week kept rates steady at a 16-year high 6.5% for a second straight meeting, after a 25-basis-point (bp) off-cycle hike on Oct. 26.     

From May 2022 to October 2023, the BSP raised borrowing costs by a cumulative 450 bps.

“The Bangko Sentral ng Pilipinas (BSP) should stand ready to raise interest rates further should upside risks continue to materialize and maintain a higher-for-longer policy rate path until inflation firmly falls within the target range,” the IMF said in a staff report.

“The BSP should remain vigilant to surges in commodity prices and potential second-round effects,” it added.

The IMF raised its inflation outlook for the Philippines to 3.7% for next year, slightly higher than the 3.5% projection it gave in October. 

This would be in line with the BSP’s 3.7% full-year forecast for 2024 and still within its 2-4% target range.

“Inflation is projected to gradually approach the target in early 2024, though recurrent supply shocks cloud the disinflation trajectory,” the IMF said.

The multilateral lender also kept its inflation projection at 6% this year, matching the BSP’s forecast. In the first 11 months of the year, headline inflation averaged 6.2%. 

The IMF said that risks to the inflation outlook are “firmly tilted” to the upside.

“Global oil prices have moved up and a prolonged elevation could result in inflationary pressure, particularly in the transportation and electricity sectors where petitions for price rises have increased. Higher global or domestic food prices, particularly rice due to potential typhoons affecting the harvest, the El Niño weather phenomenon, or export bans by rice-exporting countries could exert renewed price pressures,” it said.

The risks of second-round effects continue amid political pressure to further hike the daily minimum wage, the IMF said.

To relieve price pressures, the IMF recommended measures such as cutting tariffs on imports.

The National Economic and Development Authority Board last week approved a proposed executive order that would extend the reduced most favored nation tariff rates on several commodities, including rice, pork, and corn until Dec. 31, 2024.

GROWTH TO BOTTOM OUT
Meanwhile, the IMF retained its Philippine gross domestic product (GDP) forecasts at 5.3% this year and 6% next year.

“Growth is expected to bottom out in 2023. Real GDP growth is expected to bounce back in the second half of 2023 and reach 6% in 2024, supported by an acceleration in public investment and improved external demand for the Philippines’ exports,” the IMF said.

“The government’s infrastructure program, opening up of sectors to greater foreign investment, and private sector participation through PPP (public-private partnership) modalities will gradually crowd in private investment and help realize a growth potential of about 6-6.5% over the medium term,” it added.

Philippine GDP growth averaged 5.5% in the first nine months of the year, still below the government’s 6-7% target.

The Development Budget Coordination Committee on Friday narrowed its GDP growth assumption for 2024 to 6.5-7.5% from 6.5-8%.

END OF TIGHTENING
Meanwhile, analysts said that the BSP is unlikely to deliver any more rate hikes next year as inflation is expected to continue on its easing downtrend.

“We now expect no more rate hikes. The BSP appears satisfied with latest indicators on inflation expectations, while easing of headline and core inflation rates in October to November also offer comfort, even amidst sustained robust domestic demand,” Citi Economist for the Philippines Nalin Chutchotitham said in a note.

Inflation eased to 4.1% in November, the slowest in 20 months.

Citi expects the BSP to maintain its 6.5% benchmark rate through the first half of next year before cutting rates by the third quarter.

“The BSP continues to cite that it would need to see continued decline of inflation to be more confident that inflation is properly under control, and hence maintaining a hawkish tone. In any case, it seems to assess that it can afford to wait for past monetary tightening and the government’s non-monetary measures to work through the economy and aid in the disinflation process,” Ms. Chutchotitham added.

HSBC Global Research also sees the easing cycle to begin by the third quarter next year.

“We expect the BSP to start with a modest 25-bp cut and then follow the Fed’s pace, cutting by 25 bps in each quarter until the BSP rate normalizes to 5% by 2025,” HSBC Association of Southeast Asian Nations (ASEAN) economist Aris Dacanay said in a note.

China Banking Corp. Chief Economist Domini S. Velasquez said she expects “limited action” from the BSP in the first half of the year.

“However, it is important to note that domestic inflation in 2024 is still expected to surpass the 4% target from April to July, which suggests that the BSP will likely maintain its policy rate at 6.5%, at least in the first half of 2024, to manage inflationary pressures effectively,” she said in a Viber message.

Sumitomo Mitsui Banking Corp. economist Ryota Abe said in a note that if inflation and inflation expectations decrease further, this could signal the start of rate cuts.

“Although inflation concerns prevail, I believe BSP has started to consider cutting rates in 2024,” he added.

On the other hand, ANZ Research Chief Economist Sanjay Mathur and economist Debalika Sarkar said that they do not forecast any rate cuts next year.

“We believe that the BSP’s tightening cycle is already over. Considering the inflation risks, we do not see any case for rate cuts in 2024. Our 2024 end year policy rate forecast stands at 6.5%,” they said in a note.

PSE seeks tighter rules on delisting, backdoor listing

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINE Stock Exchange, Inc. (PSE) is seeking to tighten rules on voluntary delisting, in the aftermath of a wave of listed companies going private.

The bourse operator last week released a consultation paper containing proposed amendments to the rules on voluntary delisting, backdoor listing, and guidelines for fairness opinions and valuation reports.

In the paper, the PSE said it proposed to prohibit listed firms from voluntary delisting within 10 years from their market debut.

“The Exchange proposes to indicate a minimum listing period of 10 years before a listed company is allowed to apply for voluntary delisting. This is to prevent listed companies from going private before giving investors sufficient time and opportunity to recover their investments,” the PSE said.

Several companies voluntarily delisted from the PSE this year, including Metro Pacific Investments Corp., Eagle Cement Corp., Unioil Resources & Holdings Co., Inc., PICOP Resources, Inc., and construction material supplier Holcim Philippines, Inc.

Eagle Cement was only listed on the PSE for over six years when it voluntarily delisted from the local bourse on Feb. 28.

“The Exchange has decided to retain the current 95% ownership threshold. This will be beneficial to minority/public shareholders since the delisting proponents will have to reach a higher threshold and show to the Exchange that the company is no longer publicly held before voluntary delisting will be allowed,” it said.

However, the PSE suggested that voluntary delisting can be allowed even with “noncompliance with the 95% threshold if the listed company can demonstrate to the satisfaction of the Exchange that it has exerted sincere efforts to buy the shares of the remaining shareholders.”

Currently, the delisting proponent is required to obtain at least 95% of the issued and outstanding shares of the listed company after the conduct of the tender offer in order to qualify for voluntary delisting.

“In case the delisting threshold is met at the end of the original tender offer period, but the bidder decides to extend the tender offer period, the bidder is required to fully pay the shares tendered during the original tender offer period on the original settlement date,” the PSE said.

The PSE also proposed that the listed company, delisting proponent, or bidder shoulder the capital gains tax and documentary stamp tax needed to transfer the shares on behalf of the selling shareholders.

BACKDOOR LISTING
The PSE is also proposing tighter rules on backdoor listing.

“To prevent flipping of control and change of business soon after listing to the prejudice of investors who invested in the listed company on the basis of the business prospects disclosed in the prospectus and other offering materials, the exchange proposes to prohibit backdoor listing for a certain period after initial listing,” it said.

The PSE is looking to prohibit a listed firm from conducting a backdoor listing within one year from its initial listing if it has a track record and operating history, and within three years if it was exempted from these requirements.

Under current rules, any listed firm can conduct backdoor listing anytime as long as it complies with the requirements.

The PSE also wants to have the flexibility to determine if a transaction could be considered backdoor listing if it does not “strictly” fall into the criteria under the rules.

The exchange operator also sought to revise the backdoor listing fees and the fee for listing of any new shares.

Sought for comment, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the proposed amendments could lessen backdoor listings and voluntary delistings. 

“The proposed amendments would significantly tighten the rules on backdoor listings and voluntary delistings. It is clear that the PSE wants to address gaps in current regulations in light of their recent experiences. The changes to the delisting rules are particularly important for protecting minority shareholders from unfair valuations and tender offer practices,” Mr. Colet said.

“The new rules might lessen backdoor listings and voluntary delistings, but the upshot is that we have a market that is more protective of public investors,” he added. 

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the proposed amendments are expected to boost protection for the investing public.

“These amendments are also part of further improvement of the local capital markets as well as to align the local bourse to global best practices or modified to local conditions, if necessary,” Mr. Ricafort said in a Viber message.

Stakeholders can send their comments on the proposed amendments to the rules to the PSE Office of the General Counsel until Dec. 28.

PHL external debt hits  $118.8B as of end-Sept.

United States dollar banknotes and an American flag displayed on a laptop screen are seen in this illustration photo taken in Poland on Dec. 26, 2022. — JAKUB PORZYCKI/NURPHOTO VIA CONNECT

THE PHILIPPINES’ external debt hit a record $118.833 billion at end-September, the Bangko Sentral ng Pilipinas (BSP) said.

Preliminary data from the BSP showed external debt increased by 10.1% from $107.91 billion in the same period a year ago. It also inched up by 0.8% from $117.9 billion as of end-June.

External debt includes all types of borrowings by residents from nonresidents.

“The rise in the debt level was due to prior periods’ adjustments (i.e., borrowings made in previous quarters) amounting to $2 billion, of which $1.9 billion were borrowings by private sector nonbank firms,” the BSP said.

The central bank said that the rise in the external debt stock was also tempered by “negative foreign exchange revaluation of $655 million; the sale of Philippine debt papers to residents by nonresidents of $220 million; and net repayments of $200 million.”

The year-on-year increase was due to net availment worth $6 billion, mainly due to borrowings by the National Government (NG).

Higher external debt was also due to the “change in the scope of the external debt to include nonresidents’ holdings of peso-denominated debt securities issued onshore reported in the first quarter of 2023 ($3.3 billion); prior periods’ adjustments of $1.5 billion; and positive foreign exchange revaluation of $291 million.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the increase in external debt was due to NG borrowings.

“Most of the increases in external debt in recent months, especially since the start of 2023, largely due to higher NG borrowings to diversify funding sources amid the need to hedge versus rising global interest rates since 2022,” he said in a Viber message.

This brought the external debt ratio, or the external debt as a percentage of gross domestic product (GDP), to 28.1%. This is slightly lower than 28.5% in the previous quarter, mainly due to improved Philippine GDP in the third quarter.

“The external debt-to-GDP ratio of the country at 20% levels in recent years could still be considered relatively lower compared to other Asian countries, as a matter of prudence and learning from the lessons related to foreign exchange risks entailed on external borrowing during past crisis periods,” Mr. Ricafort added.

The debt service ratio, or principal and interest payments as a fraction of export receipts and primary income, jumped to 10.3% at the end of the third quarter from 4.8% in the same period a year ago.

The BSP said this was due to higher principal and interest payments this year.

Meanwhile, public sector debt slipped by 1% to $73.7 billion as of end-September from $74.5 billion in the previous quarter.

BSP data showed that the bulk or 91.1% of the total debt was from National Government borrowings, while the remainder came from government-owned and -controlled corporations, government financial institutions and the BSP.

Borrowings by the private sector rose by 3.9% to $45.1 billion as of the end of the third quarter from $43.4 billion in end-June.

“The rise in the debt level was driven mainly by prior periods’ adjustments of $1.9 billion arising from the late registration application/reporting of borrowings by various private sector borrowers; and the sale of debt securities by residents to nonresidents of $231 million,” the BSP added.

At end-September, the Philippines’ top creditor countries were Japan ($14.8 billion), the United Kingdom ($4.1 billion) and Singapore ($3.3 billion).

Loans from multilateral ($32.1 billion) and bilateral sources ($13.4 billion) accounted for 38.3% of all external borrowings.

This was followed by bonds ($38.8 billion or 32.7%) and foreign banks and other financial institutions ($26.7 billion or 22.5%), while the rest ($7.8 billion or 6.6%) were owed to suppliers and foreign exporters.

DEBT SERVICE BILL
Data from the Bureau of the Treasury (BTr) last week showed that the NG’s debt service bill nearly doubled to P77.76 billion in October from P39.817 billion a year ago.

In the 10-month period, the NG’s debt service bill rose by an annual 59% to P1.478 trillion.

Interest payments accounted for more than three-fourths or 75.9% of the total debt payments during October.

In October, interest payments surged by 77.7% to P58.983 billion from P33.185 billion in the same month in 2022.

Broken down, interest on local debt climbed by 76.8% to P39.619 billion, while interest on foreign debt jumped by 79.7% to P19.364 billion.

Meanwhile, principal payments almost tripled (183%) to P18.777 billion from P6.632 billion a year ago.

Amortization on foreign obligations surged by 193% to P16.835 billion while domestic debt payments more than doubled to P1.942 billion. — Luisa Maria Jacinta C. Jocson

BSP eases rules to boost bank lending for green projects

A wind turbine is seen in this file photo. — REUTERS

THE BANGKO SENTRAL ng Pilipinas (BSP) is temporarily easing rules to encourage banks to extend more loans for green and sustainable projects.

The Monetary Board approved a gradual reduction in the reserve requirement rate for green, social, sustainability, and other sustainable bonds issued by banks to zero from the current 3%, according to a BSP statement released on Saturday.

The BSP said the 200-basis-point (bp)reduction will be implemented in the first year of the policy’s implementation, while another 100-bp reduction will follow in the succeeding year for another 12 months.

These bond issuances should comply with the standards of the Securities and Exchange Commission (SEC) or other international standards, and the disclosure requirements under the Sustainable Finance Framework.

“The gradual and calibrated reduction in the reserve requirement rate for sustainable bonds does not constitute a change in the monetary policy stance but is envisioned solely to be a tool to promote sustainable finance,” the BSP said.

The Monetary Board also approved an additional 15% single borrower limit on loans for eligible green or sustainable projects.

“The eligible projects or activities must meet any of the principles or eligible categories of projects as laid out in the (1) 2022 Strategic Investment Priority Plan on Green Ecosystems, Health and Food Security; (2) Republic of the Philippines Sustainable Finance Framework; (3) Philippine Sustainable Finance Guiding Principles; (4) ASEAN Taxonomy for Sustainable Finance; or (5) Philippine Sustainable Finance Taxonomy Guidelines,” the BSP said.

The central bank noted the projects should be legal and compliant with existing environmental laws.

Both measures will be available to banks for two years from the effectivity of the policy. The BSP may review these measures as needed.

“As a sustainable finance champion, the BSP will continue to play an active, enabling role in fostering the transition towards a sustainable economy. We will identify and create appropriate incentives that are within our mandates empowering the banking system to steer capital flows toward growing green or sustainable investments and accelerate the development of solutions addressing just transition and adaptation-related challenges,” BSP Governor Eli M. Remolona, Jr. said in a statement.

The BSP cited its ad hoc survey showing 75% of respondent universal and commercial banks have financed or approved loans supporting green or sustainable projects reaching P830 billion and $14 million, respectively, as of end-June 2022.

Top projects supported by banks include those in renewable energy, sustainable water and wastewater management, energy efficiency, and green buildings.

In December last year, the BSP launched its 11-point sustainable central banking agenda as it seeks to mitigate climate risks by advocating green policies and practices.

The BSP released its first sustainability report in July, which outlines the progress made in advancing the sustainability agenda in the Philippine financial system. — AMCS

Total care at the top: Dealing with head and neck cancers

Each organ of the body has a specific function to play in helping humans respond and adapt to their environment and thus in enabling a well-rounded lifestyle they can enjoy. At the top of the human body, the head, supported by the neck, houses the brain — which initiates and regulates communication with the rest of the body — as well as most of our sensory organs.

Like other organ systems, the head and neck are also prone to risk, and cancer is among them. According to head & neck surgeon and senior consultant Dr. Christopher Goh, head and neck cancer refers to a wide range of malignant tumors found in the neck and head region, which extends from the eyes to the neck base.

For this type of cancer, smoking, drinking, as well as viruses, poor oral hygiene and dental care are the most established causes of such illness. Symptoms include neck lumps, ulcers, voice changes, and ringing sounds in the ears.

With advancements in medicine constantly evolving, nonetheless, addressing head and neck cancer can be more durable and bearable. In most cases, cancer patients start with a diagnosis based on their symptoms; and if treatment is needed, patients must undergo an endoscopy, followed by treatments through surgery, radiation, chemotherapy, or a combination of these treatments.

Unlike other cancers, head and neck cancer is a bit more tricky. Dr. Goh says that it is not easily detectable since they are well-hidden in areas that are highly concealed like the rear of the nose, voice box, or the larynx.

However, there are some cancers of this type that can be detected early on, especially those with symptoms such as tongue cancers or ulcers, allowing for preventive measures to be taken.

According to Dr. Goh, head and neck cancer treatments have made a lot of progress in recent years. For instance, new types of chemotherapy and targeted therapy have been made available for patients. Also, reducing radiation damage and side effects is possible with proton beam therapy. Finally, endoscopic methods are being used to help reduce scarring and provide access to areas that are inaccessible.

Among hospitals specializing in cancer care, Mount Elizabeth Hospital is fully equipped to address head and neck cancer in a more convenient and holistic manner. One of the strongest cores of the hospital is its holistic medical care that ensures the best treatment, while also addressing the medical needs and providing an enhanced experience of privacy and comfort among patients.

“Mount Elizabeth Hospital has well-trained surgeons, radiation oncologists, and medical oncologists. In addition to the support team, which is important [for us in cancer care], Mount Elizabeth Hospital provides a good support team for patient care. In terms of technology, Mount Elizabeth Hospital is one of the few hospitals, the first hospital in Singapore [in fact], to have the proton beam ready or treatment and it will give the best results and the least side effects for patients,” Dr. Goh said in an interview with BusinessWorld.

In terms of protecting one’s self from potentially getting head or neck cancers, the key is to keeping a healthy lifestyle through a well-balanced diet, proper rest, exercise, and reduced smoking and drinking.

For inquiries, please contact Mount Elizabeth Hospital’s patient assistance center located at G/F-B Marco Polo Hotel, Meralco Avenue and Sapphire Street, Ortigas Center, Pasig City 1600; e-mail manila.ph@ihhhealthcare.com or call 0917-526-7576. Follow them at facebook.com/MountElizabethHospitalsSGPhilippinesOffice.

 

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Under pressure from Shein, H&M reaches for upmarket shoppers

LONDON — During Paris Fashion Week, pop icon Cher, Swedish singer Robyn, and South Korean DJ Peggy Gou performed at Silencio nightclub to a crowd of actors and models including Jared Leto, Elle Fanning, and Irina Shayk.

All were wearing shimmering outfits from H&M’s latest collaboration, a collection with the brand of late fashion designer Paco Rabanne, who pioneered the use of metal chainmail and sequins in fashion in the 1960s.

The star-studded event hosted by the Swedish fashion retailer is an example of its pitch to more aspirational shoppers as it tries to build back profit margins and move away from direct competition with fast-fashion giant Shein.

The rapid growth of the China-founded online retailer, which sells $8 dresses, $5 T-shirts and $2 jewelry, is upturning the industry.

According to Coresight Research, Shein, which plans an initial public offering next year, is now the world’s biggest fast-fashion retailer with an estimated 18% market share, followed by Zara owner Inditex with 17% and H&M with 5%.

What’s more, Shein is threatening those players in their core region: its app has more European than US users, according to data.ai, and has more than doubled its number of monthly active users in the region to 65.5 million since January 2022.

“There’s no doubt that Shein is a disruptor. They have come into the market and grown very fast, which I’m sure has surprised H&M,” said Adil Shah, portfolio manager at Storebrand in Oslo, which holds H&M shares.

H&M’s sales fell 4% in its fourth quarter, losing ground to Zara, whose parent company Inditex saw sales growth of 7% for its most recent quarter.

When inflation drove costs up last year, H&M was slower to raise its prices than Zara as its customer base is, on average, more price-sensitive.

But this year, price increases and reduced discounting helped it raise its operating margin to 5.9% for the first nine months of its financial year from 3.9% over the same period last year.

Alistair Wittet, portfolio manager at Comgest in Paris, said H&M, Gap, and other traditional high-street brands are all losing market share to Shein, but that Zara is less directly threatened as its customer is more white-collar.

“I would be very surprised if Zara were to lose share in the coming years,” Mr. Wittet said. “I don’t doubt that Shein will grow faster, but Zara will continue to outperform the broader apparel industry.”

In seeking to attract more aspirational shoppers, H&M is following in the footsteps of its Spanish rival, which has successfully boosted its image through store upgrades and marketing.

Investors seem optimistic that H&M can hit its target of a 10% operating margin in 2024 — its shares are up nearly 60% this year, beating Inditex. Still, Zara’s parent has a higher valuation than H&M.

Shah, at Storebrand, said H&M is also working to bring new collections to the market faster to better compete with Zara and the likes of Shein.

The Rabanne collection shows H&M is trying to differentiate by elevating its brand and increasing the fashion component of its assortment, said Barclays analyst Nicolas Champ, as it responds to Shein’s rapid growth making the budget part of the market much more competitive.

H&M says its designer collaborations “clearly show that design and sustainability are not a matter of price,” but its price points are far higher than the average for the retailer.

The collection includes a metallic mesh dress made of aluminum for $749, a sequin disc mini-dress for $399, purple sequin trousers for $299, and silver cowboy boots for $399.

Price increases could make H&M less competitive, analysts at RBC said — but they added good performance from its premium brand Cos suggests there is demand for higher-priced products. — Reuters

The heart of French allure

Biologique Recherche’s products are so beloved by celebrities that they endorse it without being asked to

FRENCH beauty brand Biologique Recherche’s client list reads like the most coveted guest list in the world: according to Vogue India, Kim Kardashian is a fan, and so is Madonna, and Jennifer Lopez. Page Six, meanwhile, lists down the Olsen twins and Brad Pitt. Biologique Recherche (BR) APAC Director Raphaëlle Faure, during a tea at the Raffles in Makati on Dec. 5, was asked for confirmation about the brand’s well-known users. “You want pictures?,” she asked, while grabbing her phone.

During an interview with BusinessWorld, Ms. Faure scrolled through her phone, showing us photos of their celebrity clients. We got a few more pleasant surprises, such as former pop star and fashion designer Victoria Beckham. “We would never share information that they will not share themselves,” she emphasized. She also corrected us by saying that they don’t just do facials for Kim Kardashian, but also for all her alliteratively named sisters, and even their mother.

Ms. Faure then showed photos of Jennifer Aniston with their products. “They’re doing that for free. Imagine how much it costs for Jennifer Aniston to do a post for you. We don’t have that kind of money,” she said about endorsements. She even discussed a celebrity (whose name we won’t mention), who launched a skincare line — only for fans to point out that BR products were all over their shelves. “It’s not something we advertise because we don’t pay them,” Ms. Faure said.

CUSTOMIZED TREATMENTS
Since 2021, Filipinos have been able to get these same treatments from the Maison de Beaute clinic at Serendra in Bonifacio Global City (BGC), Taguig. These products aren’t one-size-fits-all solutions: customers’ faces are first analyzed to know what they need.

“My skin is different than yours. What you need right now is different from what I need. We need to understand your needs in order to give it to you,” explained Ms. Faure.

There is a whole stash of products used in the treatments, which one can also use at home: there are at least 10 creams, everything from anti-wrinkle cream to sebum regulating balms, and we haven’t even gotten to the serums yet. One of the main products, however, is Lotion P50, which exfoliates and restores balance to the skin.

Futhermore, treatments from BR are supposed to be applied with special massages, invented by their co-founder, physiotherapist Josette Allouche, in order to increase the efficacy of the facial products made by her husband, Yvan Allouche, in the 1970s. Ms. Faure said that Mr. Allouche had been frustrated with the products in the market, citing active ingredients that should work in theory, but failed to do so in practice.

“What makes it efficient is that we look for multiple active ingredients, and we concentrate the formula at the highest level,” Ms. Faure said.

To this day, all the products are made in their factory in France: “Our products are highly concentrated in actives. We can’t rely on anybody else to manufacture our product. Our formula is complicated. Not only in terms of the number of active ingredients, but the way that we’re fabricating these: the pressure, the rotations, the temperature… we prefer to control (production) 100%.” While the company had been acquired by Rupert Schmid and Pierre-Louis Delapalme in the early 2000s, the Allouche couple’s son Philippe, a doctor, is still one of the company’s executives.

THE FRENCH APPROACH TO BEAUTY
Discussing the French approach to beauty, and how BR addresses these needs, Ms. Faure said, “As a Frenchwoman, it’s difficult for me to answer. You don’t really intellectualize the way that you’ve been taught. Now that I’ve worked enough internationally, I see the difference.” According to her, compared to Americans, French beauty takes a more minimalistic approach. “Health and elegance. We all talk about French makeup brands. French makeup is really light. It’s good skin, red lipstick; that’s basic,” she said. “All about elegance and lines, and with a touch of red. But these only work if you have great skin.”

However, it’s not just having great skin: at the heart of it all is a desire to cultivate confidence. “The way that you convey yourself; which at the end means confidence in yourself. We’re all about being confident enough to be yourself, but with a twist.”

Biologique Recherche products and services can be found at Maison de Beaute at the Piazza at Serendra in BGC, Taguig. Out-of-town locations such as in Shangri-la Boracay are also listed at their Instagram, @biologique_recherche_ph. — Joseph L. Garcia

Okada Manila describes Emerald Bay project as its ‘next step’ expansion

OKADA Manila’s move to invest in Dennis A. Uy’s Emerald Bay Resort and Casino project in Mactan, Cebu is part of its domestic expansion, according to an official of the integrated casino resort.

“We’ve been operating this property since 2016. It has been seven years. We’ve been looking for another opportunity to expand our business. That project could be the one fit into our next step,” Okada Manila Chief Managing Officer Kenji Sugiyama said on the sidelines of a media event last week. 

According to Mr. Sugiyama, the two groups are still going through the partnership’s due diligence process. 

“We just started to negotiate with them. It would take several months to see the result of the negotiations. We are excited for the process of the negotiation. We are going through the due diligence,” he said.

“If the negotiation will be successful, then we will be very happy,” he added. 

Recently, Japanese gaming firm Universal Entertainment Corp. agreed to develop Mr. Uy’s Emerald Bay Resort via its Philippine unit, Tiger Resort Leisure & Entertainment, Inc. (TRLEI), which operates Okada Manila. 

TRLEI executed a term sheet on Dec. 8 with PH Travel and Leisure Holdings Corp., which is a subsidiary of Mr. Uy’s listed firm PH Resorts Group Holdings, Inc. 

The term sheet allows TRLEI to acquire “significant majority ownership” in PH Travel’s subsidiaries Lapulapu Leisure, Inc. and Lapulapu Land Corp. as operators of the Emerald Bay project, allowing it to take over the development. 

Meanwhile, Mr. Sugiyama said that Okada Manila is still seeing more opportunities for growth in 2024. 

“After the pandemic, there is so much potential with the tourism [sector] and everything that has normalized. We’re looking to be better in terms of revenue,” Mr. Sugiyama said. 

Okada Manila earlier reported that it had logged a 48.5% increase in its total revenue to P38.08 billion as of September this year from P25.64 billion a year earlier. 

Its gross gaming revenue from January to September improved by 48% to P35.21 billion from P23.84 billion in the same stretch in 2022. — Revin Mikhael D. Ochave

Four ways to tell the designer fashion items worth investing in from the ones that aren’t

FREESTOCKS-UNSPLASH

WHETHER it’s aspiring to the “quiet luxury” or “old money” looks taking over TikTok, or cringing at the “ludicrously capacious bag” scene in the last season of Succession, designer clothes and accessories have been a hot topic in 2023. But with continued sales growth in designer fashion, and concerns about shopping more sustainably, it’s worth considering investing your money in products that will last longer.

Sales in luxury fashion have increased significantly since the pandemic. Louis Vuitton, for example, has increased its sales from 2019. And British luxury brand, Burberry, reported sales growth to be 86% higher in the year following the pandemic (though there has been another dip in sales more recently).

The rise of athleisure in fashion and designer collaborations such as Manolo Blahnik for Birkenstock, Gucci x Adidas, and Burberry x Supreme have made luxury more available. But prices are still high, so how can you know whether a purchase will stand the test of time and become an investment piece or a fashion flop? Here are four key factors to consider when making a designer purchase.

1. Resale value

An expensive purchase price may not guarantee that your product will hold its value. A key factor to consider is what the resale value of your purchase will be, as this will indicate the item’s investment potential.

A fashion investment piece tends to be a luxury product with a higher price ticket. Prices of luxury fashion have increased over the last decade. Chanel bags, for example, have almost doubled in price. Chanel’s iconic medium flap bag has increased from £7,550 in 2022 to £8,530 in 2023 and is considered to be one of the most covetable designs in the resale market.

Similarly, Hermès’ famous Birkin and Kelly bag designs, renowned for their quality, are undoubtedly investment pieces. Despite the high price ticket, Birkin bags are in demand. They are the most collectable and classic of designer bags, with an average retail price of $10,000 (£8,237), which can double in the resale market.

Luxury fashion resaler Vestiaire, along with online marketplaces like eBay, are useful sources for researching and calculating what the value of your purchase will be in the resale market. While designer bags can hold their value post-purchase, clothes can be less straightforward and will depend on the other following factors.

2. Quality and style

A 2023 report has stated that the overt use of logos in recent years, from brands such as Balenciaga and Louis Vuitton, has been replaced by an interest in quiet luxury.

Quiet luxury means more simplistic, classic, and timeless styling. The focus on exquisite fabrics and design gives a sense of fashion that is not disposable and durable. A cashmere sweater from Lorna Piana may cost over £1,700 but its quality and classic styling will ensure it’s an investment piece that transcends fashion trend cycle.

Consideration of fabrics, styling and design aesthetic are all key in ensuring your fashion investment has longevity.

3. Brand authenticity

Heritage and authenticity can secure the value of fashion purchases. Brands that have a strong heritage — that have been around and respected for a long time — are better investment pieces, particularly in the categories of watches, jewelry, and handbags. Rolex watches are renowned as investment pieces, with models that are most rare commanding the higher appreciation values.

In the realm of clothing, Burberry’s iconic trench coat — which has remained largely untouched in design terms for over 100 years — has been reported to be a good wardrobe investment by Vogue. The trench’s timeless design, alongside its long history, has secured its place as an investment product.

However, when it comes to making the purchase it is important to go with Burberry’s original design, rather than the fashion-led versions whose value may diminish as seasonal trends move on.

4. Product endorsement

Celebrity endorsement is a popular brand strategy for increasing the value of fashion products. While it may drive sales, it is important to consider what effect it will have on investment quality.

A recent example was when the British pop star Harry Styles wore the luxe Adidas x Gucci Gazelle trainers, during his 2023 tour, resulting in a reported 100% increase in sales of the trainer.

While sneakers have previously had a buoyant resale market, that is now declining, raising questions as to whether they will continue to be positive investment pieces. Celebrities may create hype — but their endorsement does not always ensure the longevity of a product’s value.

In 1999, Dior’s saddle bag was featured on US TV series Sex and the City, securing its place as an iconic designer bag. While this increased its value and desirability at the time, the bag eventually faded from view, until 2018, when Maria Grazia Chiuri, Dior’s current design director, relaunched it. This resulted in a frenzy of interest in the original John Galliano designs.

Endorsement creates hype and desirability, but occasionally it can also create a classic too. But this takes time, and it’s best to consider other factors including brand authenticity, quality and style when planning an investment purchase.

Also, value does not always have to have a price attributed to it. In the world of designer fashion, it is important not to overlook the significance of the emotional durability of our purchases and how that can ensure an enduring value and longevity.

 

Naomi Braithwaite is an associate professor in Fashion Marketing and Branding, Nottingham Trent University.

Mitsubishi eyes 22% sales growth

THE Philippine unit of Japanese car manufacturer Mitsubishi Motors Corp. is seeing a 22% sales growth for its current fiscal year set to end in March next year led by its locally assembled units, according to its official.

Jack S. Ramirez, Jr., Mitsubishi Motors Philippines Corp. (MMPC) first vice president for sales and marketing, said the company is expecting to sell 74,000 units by the end of its fiscal year, representing a 22% year-on-year growth.

“54,068 units is our sales number from April to November. We have four months to go. With an average of 6,700 units sold per month, our [projected] landing point would be around 74,000 [units],” Mr. Ramirez said on the sidelines of a media event in Makati City last week.

“For the whole of 2022, it was around 60,630 units (sold). If we will end at 74,000 units sold approximately, we have around 22% growth already,” he added.

Despite the growth, Mr. Ramirez said the sales estimate falls short of MMPC’s previously announced target to sell 75,000 units this fiscal year.

“The figure is short [of] the expected 75,000 units sales projection. Nevertheless, that is more than our internal target already,” Mr. Ramirez said. 

According to Mr. Ramirez, MMPC’s sales were carried by its completely knocked down or locally assembled units consisting of the L300 utility vehicle and the Mirage G4 sedan. 

He added that the car brand’s Xpander multi-purpose vehicle (MPV) also boosted sales. 

“Per month, our G4 sells around 2,000 units while the Xpander sells about 1,800 to 2,000 units, and the L300 goes for about 1,200 units,” he said. 

Mr. Ramirez also said that MMPC’s sales would receive a boost from the official launch of its all-new Triton pickup truck in January next year.

The price of the upcoming Triton ranges from P1.13 million to P1.92 million depending on the variant.

Meanwhile, Mr. Ramirez projected that there could be weaker sales in December due to the slower bank approval of car loans.

“For December, I think there will be a slight drop in sales as forecasted by the industry members because we expect the loan approval rate of banks to slightly go down because most of the banks have already reached their targets for the year,” Mr. Ramirez said. 

“The banks also want to control the bookings in preparation for the next calendar year as well,” he added. — Revin Mikhael D. Ochave

The gift of beauty

THE HOLIDAY season is truly upon us, and we’d really like its accompanying ups and downs to not leave a mark on our faces for the coming new year. Why don’t we all treat ourselves a little bit this Christmas, and look really good for all the holiday photos?

KIKO MILANO
Italian beauty brand Kiko Milano, rumored to be perfect dupes for more expensive European brands, is showing off their Holiday Premiere collection. These stocking-stuffers have customers covered from skincare to makeup.

We can all start with the Hydra Face Serum (P1,650) with moisturizing and brightening effects. To create a flawless canvas for the skin, we recommend the accompanying primer (P1,400), all topped off with the 24H Lasting Foundation (P1,850). Highlight all you want with the eyeshadow palettes (in Made to Shine and Dreamy; both at P1,600); the Liquid Face Highlighter (P1,050); and the Iconic Masterpiece Blush (P1,500). Finish off with the Volume & Curl mascara at P1,250. They even have a scent, called Golden Eau de Parfum (P2,400).

The Holiday Premiere collection is inspired by Italian theaters, so you know you’re about to make an entrance.

Kiko Milano is available at SM Mall of Asia, SM Megamall, SM Grand Central, SM San Lazaro, SM North EDSA, SM City Clark, SM Department Store Cebu, SM Department Store Davao, SM Department Store Megamall and online on Lazada, Shopee, and Zalora.

NEUTROGENA
Neutrogena is taking care of all the holiday stress with the Hydro Boost Serum and Water Gel. These are enriched with hyaluronic acid and other dermatologist-recommended ingredients. The Hydro Boost Water Gel claims to give the skin five times more hydration (compared to not using moisturizer at all), and the serum only adds to the fun.

Neutrogena products are available in leading stores and Shopee and Lazada. — JLG

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