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BDO shares rise after reporting 2024 earnings

PHILIPPINE STAR/IRRA LISING

BDO UNIBANK, Inc. was one of the most actively traded stocks in the local market last week after disclosing its 2024 earnings and partnership with a Japanese bank.

Data from the Philippine Stock Exchange showed that P2.94 billion worth of 19.83 million BDO shares were traded from Feb. 24 to 28.

The Sy-led bank’s shares inched up by 5.6% to P150 apiece week on week last Friday from P142 on Feb. 21. Since the start of the year, the stock has increased by 4.2%.

BDO became the fifth most actively traded stock last week following the release of its 2024 earnings, which showed a strong return on equity (RoE).

“BDO’s full-year 2024 earnings fell within Unicapital Securities’ and the consensus estimates and delivered a 15.1% RoE, which is superior compared to its peers,” Wendy B. Estacio-Cruz, head of research at Unicapital Securities, said in an e-mail.

Ms. Estacio-Cruz also noted that the expansion of its partnership with Shizuoka Bank Ltd. “boosted” investor optimism.

“This boosted investor optimism as the partnership should increase the bank’s client base by supporting Japanese companies investing in the Philippines. This should also help grow its corporate banking, remittance, and trade finance sectors while reinforcing its role in cross-border economic activities,” Ms. Estacio-Cruz added.

In a press release disclosed to the local bourse last week, BDO reported an 11.73% year-on-year rise in attributable net income to P82.02 billion in 2024 from P73.41 billion in 2023.

Robust growth across its core businesses increased the bank’s consolidated net income by 33.4% to P57.05 billion from P42.79 billion the year prior.

Meanwhile, BDO’s net interest income also picked up by 8.24% to P186.60 billion in 2024 from P172.39 billion a year earlier. The bank’s net interest margin stood at 4.4%.

Customer loans and total deposits rose year on year by 9% and 14%, respectively.

Ms. Estacio-Cruz gave a full-year forecast for 2025 of P290.4 billion in revenue and P91.4 billion in net income.

In a separate report, BDO expanded its partnership with Shizuoka Bank Ltd. to boost trade and investment with Japanese companies in the country.

The expanded partnership with Shizuoka Bank enables companies to connect with the right partners, streamline financial transactions, and navigate regulatory landscapes, the bank said in a statement.

In a statement, the parties announced that they had signed a memorandum of understanding to enhance their business alliance and support Japanese firms in the Philippines.

Under the expanded partnership, Shizuoka Bank expects a larger client base in the Philippines through additional investments and business-matching initiatives.

Shizuoka Bank is one of the group companies of Shizuoka Bank Group. It is a leading regional bank based in Shizuoka Prefecture, operating 177 branches and 26 sub-branches. Its network extends beyond Shizuoka Prefecture, with branches in Japan’s three major economic centers—Tokyo, Osaka, and Nagoya.

Ms. Estacio-Cruz set a support level at P145 apiece and a resistance level at P156 apiece. — Lourdes O. Pilar

Beyond his time

Pitoy Moreno exhibit at The M shows that he was not limited to the 1970s

AS LONG AS disco and Manila Sound live, Jose “Pitoy” Moreno, who died in 2018, will not be forgotten. His name and the quality of his clothes will live on through Hotdog’s song “Bongga Ka ’Day” (roughly translated: “You’re fabulous, sister”), which has the line, “suot mo’y gawa ni Pitoy” (what you are wearing was made by Pitoy).

The song was recorded in 1979, at the height of Martial Law in the Philippines, and arguably, the height of Mr. Moreno’s designing power. His name has become attached to the informal court of then-First Lady Imelda Marcos, but a new exhibit at the Metropolitan Museum of Manila (The M Museum) in BGC argues that his influence reaches before and beyond those years. The exhibit, fittingly, is called Timeless: J. Moreno. The exhibit was opened on Feb. 27 and will run until June 29.

Born in 1925 and an adolescent by the end of World War II in 1945, Mr. Moreno, known to his clients and the rest of society as “Pitoy,” had the unique opportunity to be cohorts with future history-shapers. Educated at the University of the Philippines (UP), he became friends with artist Araceli Dans and theater luminary Celia Diaz-Laurel, among others; while the future National Artist Fernando Amorsolo headed the UP Fine Arts Department. His extracurricular activities with the Upsilon Sigma Phi fraternity, and its sorority counterpart, Sigma Delta Phi, brought him in close proximity to the future senator Benigno “Ninoy” Aquino, Jr., and future president and dictator Ferdinand E. Marcos, Sr.

New York-based art historian Florina H. Capistrano-Baker, who curated the exhibit with Ditas R. Samson and Clarissa M. Esguerra, argued during a Feb. 28 talk that Mr. Moreno had been famous prior to the Marcos association, thanks to this network.

He had designed costumes for the Bayanihan Philippine National Folk Dance Company, which performed abroad, and during the Macapagal administration (just prior to the long Marcos years), he had already been designing for Diosdado Macapagal and his family. Gowns made for his wife Eva and daughter Gloria (who herself later became president) are displayed in the exhibit, including the wedding dress made for Mrs. Macapagal-Arroyo.

Mr. Moreno even designed a dress for his (sort of) namesake, American actress Rita Moreno, in 1962. Ms. Moreno had heard of her nomination to the Academy Awards for her role in West Side Story while she was shooting a film in the Philippines. She made her way to his Taft Avenue atelier, and came out with a creation made with Japanese fabric used for obi (a kimono sash). Ms. Moreno won the Oscar for Best Supporting Actress, and was photographed in the dress. Decades later, Mattel designed a Barbie doll in Ms. Moreno’s likeness, wearing a copy of Mr. Moreno’s dress. The doll is displayed in the exhibit.

Ms. Capistrano-Brown noted that Mr. Moreno’s fame, as well as that of the Bayanihan Dance Company, precedes that of Imelda. “People who came later, the younger generation, assumed that she created them. But like Bayanihan, like the Madrigal (Singers) — Pitoy was already well-known before Imelda,” she said.

Even Mrs. Marcos couldn’t be credited for his first international outings: that was the work of Tourism Commissioner under the Macapagal administration Conchita Sunico, who formed Karilagan International, which brought Filipino designs for overseas fashion shows.

What Mrs. Marcos did do was make his fame international: through Mrs. Marcos, he formed the connections necessary to dress her friends, which included Princess Margaret (sister of the late Queen Elizabeth II). The dress he made for her is in the Victoria and Albert Museum in London.

Ms. Capistrano-Brown emphasized that Mr. Moreno designed across the political spectrum, and kept his fame beyond the Marcos years: while he designed for Mrs. Marcos and her friends (there’s a yellow terno in the exhibit worn by socialite and Marcos friend Imelda Cojuangco), there are also gowns for Mrs. Macapagal, and gowns made well into the 1990s, including the National Costume gown worn by the Philippine candidate to the 1994 Miss Universe pageant, Charlene Gonzales.

In 2009, Mr. Moreno was named as a National Artist for fashion design — a designation which later met with opposition as having been made in a manner that did not follow the rules and traditions of choosing National Artists. The Supreme Court responded with a temporary restraining order on the conferment of the award to Mr. Moreno and six others. The honor was revoked in 2013.

“I’m hearing, I’m not sure if this is accurate — but I was recently told that he has again been nominated for the current search (for National Artist),” said Ms. Capistrano-Brown. “There are again, questions… what I’m being told is that he is nominated, but there are these rumblings.”

She argues that Mr. Moreno’s real political statement was this: “We are beautiful people. Our dress enhances our beauty.”

“When he brought the designs overseas, the purpose is to show the overseas colleagues, or Europe, or wherever country he’s in that we are a beautiful people. We have beautiful designs, we can make beautiful things… we have fine craftsmanship, and we can compete with the rest of the world,” she said.

After all the strife faced by the Philippines, Pitoy’s clothes, according to her, said, “We remain beautiful and worthy of respect. That’s what he says to me.” — Joseph L. Garcia

D&L Industries lowers 2025 capex to P1 billion

PHILSTAR FILE PHOTO

D&L INDUSTRIES, Inc., a listed producer of specialty food ingredients and oleochemicals, is reducing its capital expenditure (capex) budget for 2025 as it focuses on minor expansions at its Batangas plant, its president said.

“We are still making minor expansions, not as big as what we’ve done in the past couple of years, but on a much smaller scale. So there will still be some capex, but the expectation is for it to be lower than what we did last year,” D&L President and Chief Executive Officer Alvin D. Lao said during a briefing on Friday.

“So roughly around the P1-billion mark, or maybe even less,” he added.

The latest capex budget is lower than the P1.16 billion allocated in 2024.

D&L expects a higher contribution from the Batangas plant to its bottom line as utilization increases and operational efficiencies are realized.

The company commenced commercial operations at the plant in 2023, allowing it to push for high-value-added, coconut oil-derived ingredients and finished products for the food, personal hygiene, and home care segments in the export market.

“We believe that we have only just begun to tap into the plant’s potential given the vast opportunities we see in both local and international markets,” Mr. Lao said.

In 2024, the company’s net income rose by 2% to P2.3 billion, despite higher operating and interest expenses incurred with the Batangas plant.

The continued ramp-up in operations helped offset the incremental expenses, allowing the plant to record its first full-year profit of P244 million.

Meanwhile, D&L expects export revenues to continue growing after both sales and gross profits increased during the period. Exports accounted for 30% of the company’s revenues in 2024.

Amid renewed tariff announcements from former US President Donald J. Trump, Mr. Lao said the company is not concerned, as “the US is a very small part of our export business. There’s a lot of demand for our products, not just from the US.”

Instead, the company sees arbitrage opportunities arising from potential tariffs, as changes in trade policies create short-term price differences across markets.

“In our view, the apparent trade tensions between the US and China present opportunities for companies like us to supply businesses that cannot source from either the US or China,” Mr. Lao said.

“Our new plant in Batangas gives us the capacity and capability to cater to bigger export customers. This puts us in a prime position to capture opportunities arising from the evolving international trade environment,” he added.

Established in 1963, D&L specializes in product customization and manufacturing for the food, chemicals, plastics, and consumer products original design manufacturer industries. Its core business activities include producing customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care applications. — Sheldeen Joy Talavera

A beloved holy grail product, reformulated

By Zsarlene B. Chua

Product Review
Shiseido’s new Ultimune Serum

JAPANESE luxury skincare brand Shiseido is introducing a new formula to a tried-and-true classic, the Ultimune Power-Infusing Serum, as part of its refreshing of the company’s Ultimune line.

The reformulated serum is now infused with the brand’s Power Ferment Camellia+ technology which uses camellia seed extract fermented using the ki-koji fermentation process which claims to boost “skin regeneration by four times and reduces aging factors by over 50%.”

“It is way more effective right now, aside from the power of fermented camellia, which targets memory T cells… it targets even more skin aging concerns,” Yricka Caluya, retail and training head of Shiseido Philipines told BusinessWorld during the launch on Feb. 21 in Mandaluyong City.

Memory T cells are immune cells that provide long-term protection by recognizing and responding more quickly to previously encountered pathogens. The new Ultimune serum is supposed to target and interact with these T cells on the skin, which is said to slow down “the aging process by 50%.”

Additionally, the serum is also said to target 11 key skin concerns — from uneven skin tone to fine lines — and is suitable for all skin types, positioning it as a universal product.

According to Kaila Nicdao, general manager of Shiseido Philippines, fans of the Ultimune line will continue to enjoy the new formula alongside its added benefits, while those who want to try the serum for the first time will have an opportunity to experience its enhanced formula, which offers improved skin defense, hydration, and radiance.

“This product is tailored to fit customers who are combating and preventing signs of aging. So [the Ultimune serum] can be used as early as your early to late 20s. We really want to ensure that they can protect their skin,” Ms. Nicdao said.

Coming in three sizes — 30 ml, 50 ml, and 100 ml — the Shiseido Ultimune Power-Infusing Serum starts at P4,450 (for the 30 ml).

QUICK REVIEW
This writer was provided with the 50 ml serum and a 50 ml refill to try after the event and while it’s still too early to tell what its long-term effects are, I do have some thoughts about the product.

First of all, the red glass pump bottle looks very premium and is perfect to display on one’s vanity table. The serum itself has a pretty thin consistency and smells similar to Elizabeth Arden’s Green Tea fragrance — which I do like as it’s not too strong and the fragrance doesn’t really last long enough to bother me, but it does have a fragrance, so people who are sensitive to fragrances should watch out.

Because it is formulated to be a generalist serum, it’s meant to do everything and fit anyone — as such it absorbs into the skin very quickly: this is perfect for those with oily or combination skin as it doesn’t make your skin oily, but for those with dry to normal skin like mine, I figured two pumps work best to ensure that I have enough coverage while balancing its quick absorbency.

I have used it for an entire week, twice a day, and what I noticed is that while it is absorbed fast, it doesn’t dry the skin and it hydrates the skin, allowing my day and night creams to penetrate my skin better in a way that leaves it feeling smoother, plumper, and more “glowy” without any greasy residue.

Am I able to vet their anti-aging claims as early as now? No. But as any generalist serum, it’s not really a one-size-fits-all solution for every skin concern. It will help with your fine lines, uneven skin tone, elasticity, texture, etc., but if your skin needs more targeted treatments for specific concerns, you may need to layer it with more potent actives or specialized products, because at the end of the day, skincare is personal.

Is it a good serum? Yes, definitely, as I am enjoying how my skin feels after using it for a week and if you do have the budget for it, it is worth a try.

 

Zsarlene Chua is a former BusinessWorld reporter who is now a fledgling PR girl. She’s all about skincare, makeup, and video games — and occasionally food. None of the products she reviews are the writer’s clients. Contact the author at zsarlene.chua@gmail.com.

Rates of Treasury bills, bonds may inch lower

BW FILE PHOTO

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may inch down to track the broad decline in US Treasury yields amid worries over the world’s largest economy.

The Bureau of the Treasury (BTr) will auction off P22 billion in T-bills on Monday, or P7 billion each in 91- and 182-day papers and P8 billion in 364-day papers.

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

T-bill and T-bond yields could track the slight decline in secondary market rates on Friday following the easing in US Treasuries, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The reissued seven-year bonds on offer this week could fetch yields ranging from 5.975% to 6.05%, a trader said in an e-mail, close to secondary market levels.

At the secondary market, yields on the 91-, and 364-day T-bills inched down by 1.39 basis points (bps) and 0.47 bp week on week to end at 5.3794% and 5.7842%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Feb. 28 published on the Philippine Dealing System’s website. Meanwhile, the 182-day paper’s yield inched up by 1.96 bps to 5.6116%.

Meanwhile, the seven-year bond’s rate slipped by 0.52 bp week on week to close at 6.0036% while the five-year paper, the tenor closest to the remaining life of the T-bonds, went down by 0.13 bp to end at 5.9212%.

On Friday, the yield on benchmark US 10-year notes fell 6 basis points to 4.227% from 4.287% late on Thursday, Reuters reported.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 8.9 bps to 3.991% from 4.08% late on Thursday.

The prospect of higher US tariffs sent jitters through markets and revived concerns about an escalating global trade war.

US President Donald J. Trump said on Thursday that 25% duties on imports from Canada and Mexico will come into effect on March 4 — not April 2 as he had suggested a day earlier — and said goods from China will be subject to an additional 10% duty. Last week, he also floated 25% tariffs on shipments from the European Union.

Mr. Ricafort added that T-bill and T-bond yields may slip on expectations of slower Philippine headline inflation last month.

A BusinessWorld poll of 18 analysts yielded a median estimate of 2.6% for the February consumer price index (CPI).

If realized, this would be slower than the 2.9% in January and the 3.4% clip in the same month a year ago.

This would also be the lowest print in four months or since the 2.3% recorded in October and settle within the central bank’s 2.3% to 3% estimate for the month.

The Philippine Statistics Authority will release February CPI data on March 5 (Wednesday).

Last week, the BTr raised P22 billion as planned from the T-bills it auctioned off as total bids reached P83.711 billion or almost four times as much as the amount on offer.

Broken down, the Treasury borrowed P7 billion as planned via the 91-day T-bills as tenders for the tenor reached P24.475 billion. The three-month paper was quoted at an average rate of 5.329%, inching up by 1.1 bps from the previous auction, with accepted rates ranging from 5.28% to 5.358%.

The government also made a full P7-billion award of the 182-day securities as bids stood at P25.936 billion. The average rate of the six-month T-bill stood at 5.672%, 1 bp higher than the previous week. Tenders accepted by the BTr carried yields of 5.64% to 5.693%.

Lastly, the Treasury raised the programmed P8 billion via the 364-day debt papers as demand for the tenor totaled P33.3 billion. The average rate of the one-year debt decreased by 2.6 bps to 5.754%, with bids accepted having rates of 5.74% to 5.77%.

Meanwhile, the reissued seven-year bonds to be offered on Tuesday were last auctioned off on Feb. 4, where the BTr raised a total of P40 billion via the papers, above the planned P30 billion, as it opened its tap facility to accommodate strong demand. The bonds fetched an average rate of 5.968%, lower than the 6.375% coupon rate.

The Treasury is looking to raise P147 billion from the domestic market this month, or P22 billion from T-bills and P125 billion from T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy with Reuters

Pure electric, pure Audi

The Audi Q6 e-tron can travel 640 kilometers on a full charge. — PHOTO BY KAP MACEDA AGUILA

Premium BEV seen to raise the bar in safety and convenience

AUDI PHILIPPINES has just added to its pure-electric options available in the country with the recent introduction of the Audi Q6 e-tron. The SUV now takes its place as the most affordable BEV (battery electric vehicle) of the Ingolstadt-headquartered premium marque here.

“The introduction of the 100% electric e-tron SUV and e-tron GT models in early 2022 ushered in a new chapter in Audi’s success story in the Philippines. It spurred the adoption of premium electromobility in the country through seamless ownership processes, standardization of charging solutions, and partnerships with various stakeholders. The launch of the all-new Audi Q6 e-tron accelerates the progress of the local market’s transition to fully electric vehicles,” declared Audi Philippines Head and PGA Cars President Benedicto Coyiuto in a release.

Audi Philippines also celebrates its 20th year and looks forward to a busy period for the four-ring brand. Said Audi Philippines Managing Director Paolo Brambilla, “We’re very excited about this year, as we just launched two vehicles in January, the Q7 and the Q8, and we’re expecting to launch an additional three or four models,” he told members of the media in an interview. This is the first time for the German marque to unveil this many cars in a year.

Built on the so-called Premium Platform Electric, the Q6 e-tron is said to “(take) full electric-powered mobility to a new level with a comprehensive array of digital features and Audi’s self-driving technology,” said the company.

Audi Philippines wants to highlight this functionality in the Q6 e-tron. “Numerous sensors” are employed to constantly monitor the new Q6 e-tron’s surroundings — enabling the vehicle to automatically maintain the pre-selected speed of the vehicle, as well as adjust for changes should the vehicle in front slow down. The system instantaneously reacts, determining and maintaining an ideal distance.

This also works in usually arduous stop-and-go traffic, where “the self-driving system can slow the new Q6 e-tron to a standstill and can also set it off again without driver intervention,” continued the release. “Combined with the active lane keep assist, which automatically ensures the vehicle stays between lane markings on the road (even around bends), the new Q6 e-tron is able to provide self-driving functions under certain conditions.” Completing a suite of driver assistance features are lane departure warning, swerve assist and front turn assist, cross traffic assist, emergency brake assist, and others. Meanwhile, Drive and Park allows the vehicle to autonomously slot into a parking slot.

Powered by a 100-kWh battery, the Audi Q6 e-tron (initially available in a lone Performance variant) boasts 326hp and 485Nm maximum output. Expressed in driving distance, the SUV can muster a WLTP-rated 640 kilometers on a full charge. Utilizing the battery is an advanced 800-volt battery system designed for high efficiency and fast charging. Audi Philippines says this allows a maximum charge rate of up 270kW (DC), translating to a 10%-80% charge level in just 21 minutes “under ideal conditions.” A single Permanent magnet Synchronous Motor (PSM) mounted at the rear is put to work.

The Q6 e-tron Performance sports a rear-biased powertrain layout, leading to heightened steering precision and balance. It is fitted with an optimized S-sport suspension system to guarantee a comfortable and controlled ride.

Inside the cabin, the model gets the Audi Digital Stage which consists of three main screens: the 11.9-inch Audi virtual cockpit, 14.5-inch Audi MMI panoramic touch display, and the 10.9-inch MMI passenger touch display. The so-called Virtual Cockpit displays relevant information, and the MMI panoramic display are placed on the slim, free-standing curved panel with OLED technology — curved and oriented toward the driver.

Additionally, the MMI passenger display lets the front-seat occupant manage navigation and entertainment options without disturbing or distracting the driver. The augmented reality head-up display (AR HuD) additionally provides information such as speed, traffic signs, assistance, and navigation symbols.

Visual communication cues for the Audi Digital Stage are realized in the Dynamic Interaction Light (IAL) — a light strip spanning the width of the cockpit that functions as a “welcome greeting” when the car is locked and unlocked, an additional visual safety reminder by duplicating the dynamic indicator light on the exterior, and a charging status indicator.

“Audi Philippines has been at the forefront of electric vehicles in the Philippines. Since we launched the Audi e-tron, we’ve sold over 350 units. With the new Q6 at the lower price segment, we’re expecting to double that figure in the next two years,” concluded Mr. Brambilla.

Speaker calls for measures to stabilize vegetable prices

PHILIPPINE STAR/ WALTER BOLLOZOS

THE National Price Coordinating Council and Agriculture department should act to stabilize vegetable market prices, Speaker Ferdinand Martin G. Romualdez said on Sunday.

The government should also collaborate with the private sector to formulate a “sustainable food pricing system” that will make vegetables cheaper, he said.

“We cannot leave this to the market without a clear plan. From planting to selling in the market, there must be proper regulation,” he said in a statement.

Mr. Romualdez said vegetable prices remain elevated, putting a strain on the finances of low-income families.

In February, the Philippine Statistics Authority reported that the average retail price for a kilo of tomato was P109.94, red onion P162.69, and calamansi P86.63.

Mr. Romualdez said he would back measures that would “institutionalize long-term solutions” to elevated rice prices, such as improved land-use policies for farming, incentives for agricultural cooperatives and strengthening oversight over food supply chain disruptions.

He also said the lack of an efficient farm-to-market transportation system and post-harvest facilities are also putting upward pressure on vegetable prices.

“The cost of production and transporting vegetables from the provinces to the market is higher. Too many middlemen are profiting, while farmers suffer losses and consumers struggle with high prices,” he said.

The Department of Agriculture is working with the Department of Public Works and Highways to upgrade farm roads, to reduce transportation costs and expedite produce delivery, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said in February.

The government should improve farm-to-market roads and storage facilities, helping reduce post-harvest losses and stabilize supply, which Mr. Romualdez sees as key to cheaper produce, he added.

Congress has earmarked P23.2 billion for farm-to-market road repairs and constructions for this year, according to the Agriculture department’s budget document.

Improving access to vegetables could lead to reduced dependence on imports, Mr. Romualdez said.

“We need to strengthen our own harvest… The solution is not just imports but strengthening our own production.” — Kenneth Christiane L. Basilio

Honda to launch new HR-V by March 9

HONDAPHIL.COM

HONDA CARS PHILIPPINES, Inc. (HCPI) is set to launch its new HR-V model, further expanding the car manufacturer’s full-hybrid lineup in the Philippines.

“This solidifies the company’s commitment to improving people’s way of life by reducing their carbon footprint,” HCPI said in a statement over the weekend.

The new HR-V, HCPI’s third hybrid model in the Philippines, will have its official consumer launch at SM North EDSA The Block Atrium on March 9, HCPI said.

It will be priced at P1.45 million for the 1.5 S CVT, P1.52 million for the 1.5 V CVT, and P1.8 million for the 1.5 RS e:HEV E-CVT, available across HCPI’s 38 dealerships nationwide.

Depending on the variant, the model comes in six colors: Ignite Red Metallic, Platinum White Pearl, Premium Opal White Silver Pearl, Meteoroid Gray Metallic, Crystal Black Pearl, and Sand Khaki Pearl.

However, Platinum White Pearl and Premium Opal White Silver Pearl will cost an additional P20,000.

According to HCPI, deliveries of the new HR-V will begin this month.

The model will also be showcased in mall tours at SM Megamall from Feb. 27 to March 5, SM North EDSA from March 7 to 9, and Festival Mall from March 14 to 16.

For 2025, HCPI is targeting a 3–5% sales growth from the 15,518 units sold in 2024. Last year, its sales accounted for 3.32% of total industry sales.

According to HCPI President Rie Miyake, growth will be driven by new model launches and dealership expansions in 2025.

“For the succeeding years, our direction is to expand the hybrid (models). Today, I cannot mention any specific models or timing, but our direction is always to shift to hybrid,” she told reporters in January.

“Considering the current market situation, we believe the hybrid model is the best solution for Filipino customers to contribute to carbon neutrality. So our direction is to bring in more hybrid (models),” she added. — Justine Irish D. Tabile

Tomato oversupply exposes logistics, storage shortcomings  

PHILSTAR FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

THE GOVERNMENT needs to address logistics bottlenecks and build more storage facilities to avoid wasting the tomato surplus, industry representatives said.

The government needs to focus on “small- or medium-sized basic logistics infrastructure for clusters of production areas,” according to retired agriculture professor Roy S. Kempis, who is now the director of the Center for Business Innovation at Angeles University Foundation.

The farmgate price of tomatoes in some parts of the country last week fell to as low as P4 per kilo due to excessive supply, with some volunteer groups having to connect producers directly to consumers online.

Mr. Kempis said in an e-mail that the Department of Agriculture (DA) could subsidize refrigerated trucks for produce that is bound to points of mass consumption.

He said the private sector should also be encouraged to operate small- to medium-scale warehouses and invest in transportation assets like four-wheeled or six-wheeled vans.

With such investments, “Wastage in the form of unusable and rotten produce like tomatoes can be minimized.”

The government should also help farmers bring and sell their tomatoes wholesale to processing or manufacturing plants for products that use tomatoes.

Agriculture group SINAG told BusinessWorld on Sunday that there is still an oversupply of tomatoes, with the produce being sold for very low prices or given away for free in Nueva Ecija, Nueva Vizcaya, and Pangasinan.

It said a 22-kilo crate of tomatoes is selling for as little as P80. “Others are direct buying at P8-10 per kilo.”

Rural Rising Philippines said Saturday that middlemen have been paying farmers only P2 per kilo in Nueva Ecija.

“With that, you can pay only for the rent of the tricycle that brought your tomatoes to a market and a meal at a carinderia,” according to the group, which has been facilitating rescue buys.

“It costs the farmer more to harvest it than to sell it.”

Tomato retail prices hit P360 per kilo last month amid tight supply.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in the face of supply bottlenecks that result in huge increases or decreases in vegetable prices,  “digitization of agricultural trade is the way to go.”

Digitalizing the trade would democratize the marketplace and efficiently bridge perishable agricultural products from sellers with surplus to buyers or areas with tight supply, he noted in a Messenger chat.

“Digitization would help address the gaps in the marketplace, with cold storage facilities and processing facilities among the intervention measures,” he said.

“Digitalization is the means, but we still need the human connections to make it work,” Ateneo de Manila economics professor Leonardo A. Lanzona said via Messenger chat.

“The best way is to send experts across the different regions to determine the barriers and the solutions,” he added.

Mr. Lanzona noted that the distribution problem largely stems from the country’s archipelagic landscape, and it did not help that the government has failed to “develop institutional mechanisms that can reduce transportation and transaction costs.”

“We need to strengthen our institutions that can correct these geographic and cultural challenges,” he said. “What separates a developed and a developing country is the quality of institutions.”

Meanwhile, Mr. Kempis also pitched price support for farmers dealing with low farmgate prices of their produce.

“The amount of price support can be recovered from the price differential when tomatoes are sold at a higher wholesale price in areas where final consumption happens,” he said.

The DA last week urged tomato farmers to work with municipal or regional agriculturists for direct market linkages, noting that the government can market their produce in nearby markets or Kadiwa centers.

Agriculture Assistant Secretary Arnel V. de Mesa cited the need for cold storage facilities due to the seasonality of agricultural commodities like tomatoes.

The DA is hoping to inaugurate a 5,000-ton capacity cold storage facility in Taguig City by 2026.

Employment is sexy at Gucci

GUCCI is celebrating its double G logo’s 50th anniversary this year, which uses the initials of its founder, Guccio Gucci. The luxury house’s Fall/Winter 2025 fashion show for Milan Fashion Week last week showed its hold on fashion and the times through a presentation on a runway shaped like their double G. Academy Award-winning composer Justin Hurwitz opened the show, conducting an orchestra through a score he penned himself.

BusinessWorld was invited to watch the show’s livestream on Feb. 25.

The lineup of styles for women and men was drawn up by its design studio as the Kering-owned Italian label awaits its next designer.

The first look was rather drab: a fur coat conceals a gray skirt with a pale purple top, the only pop of color coming from a top-handled yellow bag. We want to contrast it with a finale look, but by the show’s engineering, it simply did not exist. Models continued to walk through the runway’s circuit as the first look came out again, perhaps due to the show’s theme, “Continuum.” As a release explained: “A continuum of craft, taste and culture that passes through time, the fashion house is one that has many owners and guardians: craftspeople and artisans, creative directors and designers, communicators and customers, each with their own histories entwined.”

In 2020, Gucci’s Fall/Winter fashion show showed extravagant eras on the precipice of failure: the 1900s before World War I; the 1930s going into World War II. The world pandemic that caused a lockdown followed soon after. The world doesn’t look too well with this new presentation of Gucci, showing traditional men’s suiting and serious, sober looks for women.

A lot of the looks presented are reminiscent of the sober but sexy designs of the house’s past Creative Director Tom Ford, who ran Gucci from 1995 to 2004. Mr. Ford’s lean into suiting and hard shapes in accessories would have been perfect for the financial disaster of 2008: then, young professionals co-opted workwear looks for leisure (perhaps to show off employment during an economic crisis; or to economize by combining wardrobes for work and play). We saw this in several looks for Gucci’s 2025 Fall/Winter show: think sexy office looks like a brown shirtdress with one of the house’s horsebits, nubby tweed coats and suits (though opulent fur still made a statement), a pink suit with a red scarf trailing behind, a sack coat, a burnt orange velvet dress with a pussy bow (this is less Tom Ford though, but more Frida Giannini during her 2006 to 2015 tenure), oversized gray blazers, and yin-and-yang turtleneck looks in all black and all white for the men.

“Today, the collection could be seen as foundational, that says something of Gucci in its codes and beliefs both past, present and future; things that have meant something to many, adopted and adapted in their own way,” said a statement.

Kering is in the process of revamping Gucci, its biggest label, and earlier this month announced the abrupt departure of designer Sabato de Sarno after less than two years. De Sarno shifted Gucci’s focus to more classic, minimalist designs, and emphasized a glossy red color in his collections.

Speaking to journalists before the show, Gucci Chief Executive Stefano Cantino did not give precise timing for the upcoming change of creative director, and said executives were focused on “working for the good of the brand.”

Previously one of the industry’s biggest success stories, with fast growth between 2016 and 2020, the century-old label fell behind when shoppers’ tastes shifted away from the baroque, gender-fluid designs by Alessandro Michele. Analysts do not expect a rebound until next year. — Joseph L. Garcia with a report from Reuters

EdCom II Year Two Report: Persistent misreading of the Philippine basic education situation

PHILIPPINE STAR/WALTER BOLLOZOS

The EdCom II Year Two Report entitled “Fixing the Foundations: A Matter of National Survival” persistently misreads the Philippine basic education situation. As stated in our previous column, “EdCom II Year One Report: Misreading the Philippine Education Situation” (March 11, 2024), we do not have a crisis in Philippine education. We have a crisis in Philippine public education. Philippine private education is doing fine.

This distinction between the performance of the private and public school is persistently lost in the EdCom (Congressional Commission on Education) Report. The most glaring example of this is in the EdCom Report on vouchers. The EdCom Report concludes that “The voucher system offers a possible, although limited solution for classroom decongestion.” The basis for this assertion is that once the existing vacant seats in the private schools estimated at 121,036 are filled, then the voucher alternative is exhausted.

But the voucher provision is based on the evidence provided quite fully in the report that private schools outperform public schools. Through the voucher system, the private school are better positioned to build classrooms cheaply and speedily, thus closing the estimated classroom gap of 165,000 classrooms without the government setting aside special funds for school buildings. By the way, in 2022, no new classrooms were constructed from new appropriations. Only 847 classrooms or 12% of the required number were slated to be completed by December 2024.

In the bill filed by Senator Sherwin Gatchalian, entitled “Government Assistance to Private Basic Education Act” which sought to extend the coverage of vouchers from Senior High School to Junior High School, Grade School, and Kindergarten, he noted that:

“Based on the study, accommodating an estimated 7.3 million excess learners in public schools over the next 30 years would cost the government a total of P3.7 trillion or P124 billion annually. Meanwhile, funding a voucher program over the same period would cost P2.6 trillion or P86 billion annually. Hence, through the E-GASTPE [Expanded Government Assistance to Students and Teachers in Private Education] Program, the government would save P1.1 trillion.”

Not only will the voucher program save substantial money for the government, the students availing of the voucher program will be grouped in optimal size classes, study in well-maintained classrooms (only 30% of public schools are well maintained), be adequately provided with learning materials (only 35% of public schools have adequate learning materials), taught by empowered teachers and administered by ever-present principals (only 45% of public schools have principals). Moreover, they will have learned more — private school students outperform public school students (43% vs. 17%) in the Philippine Science High School National Competitive Examination and yet only 12% of our students study in private schools.

Serious as this oversight is, it pales in comparison with the basic flaw of the report.

For this we have to use medical analogy. When a doctor examines a sick patient, he goes through a rigorous process of diagnosis (what ails the patient?), prognosis (what happens to the patient if we do nothing?) and prescription (how do we cure the patient?).

The diagnosis is the most crucial step as a wrong diagnosis will result in a wrong prescription which will not heal and may even cause harm to the patient.

The most common mistake of an incompetent doctor is to treat the symptoms rather than the disease, thus allowing the sickness to persist or to worsen. Moreover, when a doctor prescribes a profusion of medicines that is a sign that the doctor does not know what ails the patient.

Unfortunately, the entire report on basic public education focuses on the symptoms, i.e., congested classrooms, dilapidated school buildings, lack of teaching materials, mismatched teachers, lack of principals, rather than on the sickness itself. From this wrong diagnosis, EdCom then proceeds to prescribe prescription upon prescription to cure these symptoms.

To compound the error, the report relies on the patient — the bureaucrats of the Department of Education (DepEd) — to cure themselves, i.e., administer the medicine the report recommends. And yet, the report devotes only a minuscule portion on the management capabilities of the bureaucrats running the Central Office of DepEd and their findings are not encouraging.

“As for DepEd, in many respects, the agency continues to be a highly centralized bureaucracy. Moreover, years of centralized governance have fostered an extremely hierarchical culture wherein ‘no policy or practice in the lower levels of the hierarchy may change or take place unless there is an explicit DepEd memo from the Central Office that allows it’ (Bautista et al., 2010, p. 59). This diminishes the subsector’s capacity for innovation and slows responsiveness to actual needs and problems.”

Even if by some miracle, the bureaucrats of DepEd possess the outstanding management capabilities and the willingness to cure the symptoms, we still will not cure what ails the patient.

The sickness is this: DepEd regulates the private schools while other groups operate them. In the case of public schools, DepEd is both the regulator and operator. When asked why private schools perform better than public school, a private school president replied, “DepEd imposes strict standards on us but does not impose them upon itself.” DepEd the regulator does not impose on DepEd the operator strict standards such as optimal class sizes, well-maintained classrooms, well-stocked teaching materials, empowered teachers and ever present principals.

The prescription is simple. Remove the operating function from DepEd while retaining its regulatory authority over the public schools.

There is a precedent for this in higher education. There was a time when the then Department of Education, Culture and Sports, now Commission on Higher Education (CHED), was the regulator and sole operator of public colleges (with the exception of the University of the Philippines), which are now called State Universities and Colleges (SUCs). But several local governments felt that the needs of their citizens were not being met by these SUCs. So, through legislation or ordinances, they established pamantasans, now called Local Universities and Colleges (LUCs).

The LGUs operate them but CHED regulates them. EdCom reports that for the 10-year period from AY 2011 to AY 2021, while enrollment in SUCs grew by 72.9%, enrollment in LUCs grew by 168.0%. This is compelling evidence that the pamantasans can effectively operate the public grade schools and high schools.

The operations of the public elementary and high schools could be devolved to several entities.

For one, there is the Charter School system in the United States where public schools are managed under a Public-Private Partnership arrangement with private organizations, both profit and non-profit. Marginal public schools could be managed by Non-Government Organizations while viable public schools could be managed by the large private schools.

For another, there are the 137 pamantasans presently operating colleges. The public grade schools and high schools could be absorbed and made part of the pamantasan. This would place under one organization responsibility for the education of children in a community, from early childhood to college.

Lastly, again following the American model are the local school boards. In the United States, the public schools are operated by the county school boards. Our local school boards, who are already organized, determine the annual supplementary budgetary needs of public schools within their respective jurisdiction and then administer and manage their share of public educational institutions expenditures from the proceeds of the special levy on real property which constitutes their Special Education Fund. From this basic responsibility could be added the administration of the public elementary and high schools in their locality. As administrators, they would put the interests of their local community’s youth first. Through the policies they adopt, the school board members will ultimately be responsible for the success or failure of public education in their locality.

All three alternatives are not mutually exclusive and in fact should be adopted in combination.

EdCom proposes decentralization instead of devolution:

“A highly centralized top-down process persists in DepEd despite well-intentioned efforts to decentralize the agency’s structure through RA 9155. This outcome underscores the importance of careful and thoughtful design of decentralization reform. More importantly, Laguda et al. (2024) argue that ‘the Department of Education should spearhead efforts to fully realize the vision of shared governance and decentralization outlined in RA 9155, in view of the agency’s primary authority in basic education.’”

The idea behind decentralization is to separate the operating and regulating responsibility within DepEd with the Field Offices operating the public schools and the Central Office regulating the Field Offices. This would involve the Central Office ceding operational control to the Field Offices. Unfortunately, more than 50 years of bitter experience as fully documented all over the EdCom Report has shown that the bureaucratic overlords of the Central Office have never yielded and will never yield even an iota of authority to the peasants in the Field Offices.

DepEd cannot heal itself.

For this very reason, devolution can only occur through an act of Congress or by executive action by the President.

We close with the medical analogy. EdCom timidly prescribes bandages; regrettably what is required is radical surgery to save the patient, the public basic education system.

 

Dr. Victor S. Limlingan is a retired professor of AIM and a fellow of the Foundation for Economic Freedom. He is presently chairman of Cristina Research Foundation, a public policy adviser and Regina Capital Development Corp., a member of the Philippine Stock Exchange.

Q&A: ‘It teaches us a lot about buyers’

Cars, merchandise, and everything BAIC, Chery, Foton, and Lynk & Co are available up close. — PHOTO BY KAP MACEDA AGUILA

United Asia Automotive Group, Inc. Chief Marketing Executive Lyn Manalansang-Buena on the wisdom of mall displays

Interview by Kap Maceda Aguila

AN INITIATIVE that started last year, UAAGI (United Asia Automotive Group, Inc.) On the Move, billed as “a multi-brand automotive extravaganza,” kicked off its 2025 edition with a staging at the Fashion Hall of SM Megamall recently. But while a dealership is an ideal venue for experiencing a brand, its automobiles, and everything it stands for, there has to be a deliberate effort to go to the location. This means only those looking to buy or those coming in for a PMS schedule are the usual suspects. The mall display, on the other hand, as we learned from our interview with UAAGI Chief Marketing Executive and Senior Vice-President Lyn Manalansang-Buena, has unique advantages — lending itself as a vital tool for a marque looking to increase awareness as well as generate sales.

Here are excerpts from our exclusive interview with her.

VELOCITY: Can you tell us what UAAGI On the Move is all about?

Lyn Manalansang-Buena: UAAGI On the Move is a consolidated one-stop shop, an extravaganza of all the brands under the umbrella of the United Asia Automotive Group, Inc. This is the maiden road show for 2025, and it features all of our brands on display. We have cars, after-sales services, merchandise from each brand, test rides, and surprises and freebies for everybody who will visit and make a purchase of any of our cars. To top that off, we also have a music festival.

For people who are still not aware of the brands under the group, please give us a rundown, and perhaps the segment of the market they’re targeting.

Let me start off with Foton Motors Philippines. We have Foton pickup trucks, the Tunland, the Thunder, the Outback. We also have vans and, of course, we have a lot of commercial vehicles. Next is Chery. We like to say there’s more to our cars. We have a lot of crossovers. We have a PHEV (plug-in hybrid electric vehicle). We have hybrid cars, eight-seaters, and seven-seaters that offer great value for money. We also have BAIC, a very new brand here that has been very successful fairly recently because we launched a model called the B30e — a hybrid 4×4 model that hit the market by storm. There are so many B30 fans right now. Apart from that, we also have other products: the B40, X55, B80, and B60. Lastly, we have Lynk & Co, a Swedish heritage brand that is manufactured in China, and is positioned as a premium automobile to those who really want a rewarding car experience.

The idea of a mall display is something that’s being used not just by car brands but a lot of companies across industries. What do you see in this medium that makes it very important to your brands?

Well, Filipinos are a mall-going lot, and we tend to hang out in mall venues. Families go to malls during Sundays after church. They eat at a restaurant, which happens to be in a mall. So for me, it’s a great opportunity to showcase our cars and learn about the behavior of the market; to see if they like what we have to offer, and also observe them during days where they’re relaxed, and offer them the great products that we have.

Is there important insight you get from these visitors who may not necessarily be in the market for a new car? Do these activities help you better read the public?

Absolutely, definitely. In mall displays, what we like to think is, if we don’t get to engage them heavily, they’re not really on the path to purchase yet. At the very least, we have awareness, and awareness counts a lot — especially for the brands that we have. We have two new brands barely a year old, really. So this is very important, and it also teaches us a lot about buyers, their behavior, their preferences. The next time we show up, we’re better; we can make better offers, make better after-sales support systems. You know, we also get them to like our pages, engage in social media. At the end of the day, nothing is lost: We’ve been able to engage with them, and we can see and learn about their preferences.

Where might we see UAAGI On the Move next?

We plan to have four road shows this year. I can’t mention the next venues yet, but they will be big lifestyle malls and business centers. We’re also going to try and see if we could go to other areas; regions and provinces to bring our cars closer to our target audience.