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Proposed changes to BOT rules may burden public with higher fees

Estrella-Pantaleon bridge pictured on July 8, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

By Diego Gabriel C. Robles

THE PROPOSED new revisions to the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law may give private sector proponents more leeway in imposing higher fees and charges to the detriment of consumers, a public investment analyst said.

“There is nothing in the rules which prevent PPPs (public-private partnerships) from imposing automatic increases in fees and charges. In fact, the rules allow initial and future fees and charges to be implemented even without regulatory approval,” convenor of think tank InfraWatch PH Terry L. Ridon told BusinessWorld.

“This will be a red line for the public, and maybe for government as well, because while the old rules greatly favored government, these new rules allow unbridled private sector power over public services,” he added.

The National Economic and Development Authority (NEDA) last week released the proposed changes to the IRR of the BOT Law. 

Under the draft rules, Section 12.19 states that tolls, fees and charges can be adjusted during the life of the contract, based on an approved formula included in the contract. Prior to bidding, concerned agencies and local government units (LGUs) should consult and seek approval from the regulator for such a formula.

The draft rules had removed a clause stating a regulator has the power to approve or reject adjustments to tolls, fees, rentals and other tariffs. Also removed was the clause that prevented project proponents from including an automatic increase in tolls, fees and other charges in the contract.

Instead, the draft rules now stipulate that if the regulator disapproves the proposed amount under the contract, the agency or LGU may allow the private sector to recover the difference between the fees stipulated in the contract and the amount approved by the regulator through measures that were previously agreed upon.

“If the agency/LGU fails to implement the adjustment of tolls/fees/rentals/charges approved by the appropriate regulator, then the project proponent shall recover such adjusted tolls/fees/rentals/charges through measures allowed in the contract,” the rules stated, noting that it should not be interpreted as direct government subsidy.

The current rules absolve the agency and LGU from liability for the non-approval of increasing fees by the regulator concerned.

“The new rules should still allow government to review PPP implementation as it relates to end-user and consumer concerns, particularly on rates and pricing. It should allow the government to renegotiate service fees and rates if these are deemed exorbitant or unconscionable,” Mr. Ridon said, mentioning how the prevention of automatic increases in fees was a typical clause in previous PPPs.

“Government should be reminded that PPPs are not entirely a private concern, and it is the task of government to ensure that the public interest will be served over the course of these projects, from planning to implementation,” he added.

The draft rules also showed changes to the controversial provisions on arbitration and material adverse government action (MAGA).

Under the draft, the controversial provision which stated that “acts and decisions of regulators shall not be subject to arbitration” has been removed, implying that the government is now open to arbitration, provided that it is mutually agreed upon by both parties in the contract.

MAGA has also been changed to read as “any act of the government which the project proponent had no knowledge of, or could not reasonably be expected to have had knowledge of, prior to the effectivity of the contract; and that occurs after the effectivity of the contract, other than an act which is authorized or permitted under the PPP contract.”

Removed from the MAGA definition was the provision that excluded acts of agencies, LGUs, and the Executive branch made in the exercise of regulatory powers; as well as acts of the legislative and judicial branches.

“For purposes of the contract, the provisions on MAGA shall also provide for the rules on materiality or amount threshold, nature and manner of recourse, and cap in case of monetary compensation,” the rules read.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the government should maintain the sanctity of contracts, a level playing field, and an effective mechanism for arbitration to attract private investors.

“It is important for investors, both local and foreign, to not change the rules in the middle of the game since infrastructure projects are mostly long term in nature, cutting across different administrations,” he said in a Viber message.

“So, the latest revisions will try to address this issue, especially any arbitrary changes by the government as partner to these infrastructure projects,” he added.

Since it took effect in April, business groups have criticized the current version of the BOT IRR, saying it compels private proponents to shoulder more risk while relieving the government of responsibility for delayed deliverables.

The Foundation for Economic Freedom, the Makati Business Club, and the Management Association of the Philippines had previously called the IRR’s provisions as “anti-market” and “unfair to the private sector.”

The NEDA is set to hold a public consultation on the draft IRR tomorrow, Sept. 13.

IBPAP chief warns workers may quit if WFH scrapped

THE INFORMATION Technology and Business Process Association of the Philippines (IBPAP) warned that many employees of IT and business process management (IT-BPM) firms may leave their jobs if the government pushes for a return to 100% on-site work.

This as the Fiscal Incentives Review Board (FIRB) temporarily extended the current arrangement allowing IT-BPM enterprises in Philippine Economic Zone Authority’s (PEZA) economic zones to have 30% of their employees work from home (WFH), which would have expired today (Sept. 12).

Jack Madrid, IBPAP president and chief executive officer, said the temporary extension is a “relief” for IT-BPM investors and employees.   

“We’re relieved and we are also looking forward to a more permanent and much-needed solution. We are glad the Department of Finance (DoF) finally listened to the voice of the industry, the voice of the investors, and most importantly, the voice of the employees, who have been working very effectively from a location-independent setup since the onset of the pandemic,” he said during an interview on ANC’s Dateline Philippines over the weekend.   

Mr. Madrid said an “overwhelming majority of Filipino workforce and the employers” have expressed a strong preference for a location-independent or hybrid work arrangement.

He expressed concern that many IT-BPM employees may leave their jobs if they are required to do full-time, on-site work.

“The initial reaction would be an increase in industry attrition because employees that my team and I have spoken to, majority of them have expressed intent to leave their place of employment if they do not have flexibility in work setup,” Mr. Madrid said.   

“I worry about attrition and if attrition becomes more serious, then we will see a dip and reduction in the Philippines’ market share because it is not just the Philippines and India anymore. It is countries from nontraditional regions such as Poland, Malaysia, and South Africa that have emerged as IT-BPM locators,” he added.   

On Sept. 9, Finance Secretary and FIRB Chairperson Benjamin E. Diokno issued a memorandum announcing the temporary extension of the 30% WFH arrangement for IT-BPM companies until a decision can be finalized.   

The FIRB is set to have a meeting on Sept. 15.

FIRB Resolution No. 017-22, which allowed the 70% on-site and 30% WFH arrangement of IT-BPM firms until Sept. 12 while still availing of fiscal incentives, would have ended on Sept. 12 if not for the extension.   

According to Mr. Madrid, the fiscal incentives given by investment promotion agencies (IPAs) such as the PEZA should be separate from the work arrangement implemented by IT-BPM firms.   

Registered business enterprises, including IT-BPM firms, are required to conduct their businesses within economic zones (ecozones) in order to avail of fiscal incentives under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.   

“Incentives that have been given by IPAs should be separate from our work setup. Our industry, being online, is unlike manufacturing where physical presence in the ecozone is really needed,” Mr. Madrid said.   

“We have proven in the past two years that our work can be done from any location. We have not vacated our offices. The data centers are still housed there…so there is activity there,” he added.   

Mr. Madrid also mentioned that the right ratio for on-site work and hybrid work depends on the IT-BPM firm, employee, and customer. 

“Every company, investor, employer, and customer have their own preferences for what that optimal hybrid ratio will be. At present, for the overall (IT-BPM) industry, we are probably close to a ratio where 55-60% would be working from home, whereas 40-45% would be working on-site,” he said.

Mr. Madrid said IT-BPMs want to have full flexibility in terms of work arrangement. — Revin Mikhael D. Ochave

Marcos’ independent foreign policy push faces test with IPEF

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Kyle Aristophere T. Atienza, Reporter

THE LEVEL of the Philippines’ participation in the Washington-led Indo-Pacific Economic Framework (IPEF) would be a litmus test for the Marcos administration’s independent foreign policy push, according to experts.

It would also determine the extent of the Philippine leader’s protectionist bent, they said.

“It will be an indicator of to what extent our government has a genuine economically independent policy,” academic Hansley A. Juliano, who has written on global political economy, said in an e-mail.

“Can they play that balancing act because their masters are ultimately the Philippine state’s interest?” he asked. “Or are they already neocolonial subjects of either the US or China anyway?

Reuters reported last week that the first IPEF talks included ministers from the Philippines, Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Singapore, Thailand, and Vietnam. Along with the US, these countries account for 40% of the global economic output.

During the meeting, ministers agreed on a set of negotiating targets covering digital trade, supply chains, decarbonization and other issues.

The IPEF is seen as the US’ latest attempt to counter China’s growing economic influence in the Indo-Pacific region.

Mr. Juliano said it has been a “norm” for most middle-income countries like the Philippines to participate in multiple international frameworks and agreements to avoid geopolitical tensions.

“Even the ones with most connected economic ties to mainland China, such as Thailand, Vietnam, Cambodia and Lao, have ties on both sides of the US-China competition. The only real concern is what industries are covered in any deal or agreement,” he said.

The US-led trade engagement has already angered China, with Chinese newspaper Global Times saying IPEF excluded a “country ubiquitous in industrial chains.”

“Certainly, Beijing can be expected to undertake its own international charm offensive on trade, whether through the Belt and Road Initiative or through bilateral mechanisms with other countries,” said Terry L. Ridon, a public investment analyst, via e-mail.

Given China and the United States’ geopolitical objectives, the Marcos government should not choose any side but deal with them on the basis of their deliverable economic commitments to Manila.

“We can expect Manila to participate in the IPEF without playing a leading role, to balance its relations with both US and China,” Mr. Ridon said. “Manila does not need to take sides in the geopolitical divide.”

Joseph F. Purugganan, program director of research group Focus on the Global South, said the US-backed framework, which is also supported by Japan, would be unlikely to push China to offer more concessions to the Philippines and other allies.

“China understands the strategic geopolitical and economic game, and it draws on its own strengths to advance its own interests in the region,” he said in an e-mail.

“What I think will happen is that the Philippines will engage both. Marcos will continue to pursue IPEF and will push for the Senate concurrence of the China-backed Regional Comprehensive Economic Partnership (RCEP),” he added.

Earlier this year, the Philippine Senate failed to ratify the RCEP, a free trade agreement involving Australia, China, Japan, South Korea, New Zealand, and Southeast Asian countries.

Trade Secretary Alfredo E. Pascual has said that participation in the RCEP is a government priority, even though Mr. Marcos previously called for a review of the trade pact to ensure adequate safeguards for the agriculture sector.

George N. Manzano, who teaches economics at the University of Asia and the Pacific, said the Marcos government needs to engage local sectors in the IPEF so it can come up with sound decisions.

Mr. Manzano also said it is important for the Philippines to join the framework so it would be at par with other economies. “More markets are part of it and if you don’t participate, they can make rules without your input.”

In scrutinizing the IPEF, the Marcos government should focus more on the country’s best interests instead of the pressures triggered by the US-China competition, said Mr. Purugganan.

“Our negotiations should focus on strengthening our agriculture, manufacturing and services sectors, to make them strong enough to withstand these outside pressures,” he said. “It should also strengthen its capacity to regulate the operations of transnational companies, who are the real drivers of these international agreements.”

Mr. Purugganan noted that geopolitical frameworks and agreements such as IPEF and RCEP “basically advance the interests” of multinational corporations.

“Big trade powers — such as the US, European Union, and China — all advance their own agreements with the rest of the world and these agreements generally follow a template. These are all new generation agreements that go beyond the issue of market access of goods and services, as they cover broad areas of investment, intellectual property, and electronic commerce,” he said.

‘SKEPTICISM’
Not all countries agreed to participate in all IPEF pillars, the New York Times reported.

“When dealing with super powers with strong economic and political agenda, there should always be a large degree of skepticism,” Mr. Purugganan said. “While IPEF is more of a trade partnership framework at this point, that partnership is really defined by US interests.”

He called for a critical review of the IPEF’s four pillars — connected economy, resilient economy, clean economy, and fair economy — and “see what is the interest of the US and its corporations behind these.”

“When you talk of connectivity for example, you know that what is behind that pillar is the US corporate agenda on digital trade. The long view is a digital trade agreement, and the countries in the Indo-Pacific region are prime targets for this agreement.”

Mr. Juliano, meanwhile, said the Philippines should ensure that the US-led trade framework would not hurt local sectors that contribute significantly to the global supply chain, including the semiconductor industry.

Semiconductors accounted for 41.2% or P1.2 trillion of the total goods exported from the Philippines from 2019 to 2021, according to German database company Statista.

Mr. Ridon, the public investment expert, said small economies like the Philippines will find it difficult to participate in international trade “without considering Beijing.”

“Countless products in the domestic market are imported from China, from agriculture and industrial goods to toys and school supplies,” he said.

Mr. Ridon noted that international trade frameworks related to supply chain and decarbonization will be “severely” limited without the participation of China, “which is a central link in the supply chain of various sectors and an important partner in climate change commitments.”

A second IPEF ministerial meeting is expected to be held in early 2023, months before the US-backed Asia-Pacific Economic Cooperation summit in November 2023.

Analysts expect higher AREIT yields

By Justine Irish D. Tabile

THE approved additional swap shares of AREIT, Inc. as well as higher interest rates are expected to improve its dividend yield, according to analysts.

“AREIT may be an appealing investment at this time because of its 97% recorded building occupancy rate, 98% rental collection rate, and leases that are contracted with an average lease expiration of close to 6 years, exhibiting higher tenancy all over its properties,” Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said in a Viber message.

AREIT’s income should be stable depending on its dividend yield which is expected to rise as interest rate rises, he added.

“Increases in interest rates may imply that the economy is strong and doing well, and thus companies are profiting and paying sizable dividends, particularly for AREIT, whose tenants are mostly business process outsourcing (BPOs).”

He added “that AREIT would benefit from a stronger dollar as a result of interest rate hikes in the United States.”

Yields represent the return in dividends for the company’s shareholders, whereas dividends refer to the portion of a company’s quarterly profit allocated to investors.

Yields are expected to rise as the price of AREIT shares are expected to be lowered in the market as an effect of rising rates, according to an analyst.

“Investing in AREIT is a hybrid of fixed income and equity; one can expect regularity in dividends mandated by law, as well as capital appreciation driven by AREIT’s organic and inorganic growth,” Mr. Lood said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that shareholders of AREIT may look “forward to sustained dividend declaration against a volatile global equities market.”

“The share-swap deal with Ayala Land will greatly improve AREIT’s GLA (gross leasing area) by a little more than half a million square meters (sq.m.), giving the company a rather attractive AUM (assets under management) of around P60 billion,” Mr. Limlingan added.

AREIT disclosed on Friday that the Philippine Stock Exchange approved its application to list an additional 483.24 million common shares to cover the company’s property-for-share swap transaction with Ayala Land, Inc. (ALI).

The transaction will infuse three Vertis North Commercial Development office buildings and a retail podium situated in Quezon City.

One and Two Evotech buildings in Nuvali Santa Rosa, Laguna and Negros Occidental’s Bacolod Capitol Corporate Center and Ayala Northpoint Technohub will also be infused.

The approved listing would also infuse office condominium units at BPI-Philam Life buildings in Makati Central Business District and Madrigal Business Park in Alabang.

AREIT’s GLA will then expand to 549,000 sq.m. and its AUM to P53 billion.

The swap shares were listed with the PSE on Thursday and are subject to a lock-up period of 180 days with BPI Securities Corp. as escrow agent.

Year on year, the property-for-share swap increased AREIT’s dividend per share by 13% in the first half.

“The importance of REITs listing in a company is that the capital raised will be used to acquire more properties for higher dividends, which is something that investors seek and an excellent addition to an investment portfolio,” Mr. Lood said.

On Friday, AREIT closed 0.39% lower at P38.75 apiece, while its sponsor ALI closed unchanged at P27.80 apiece.

Doing some SoCal flexing in a Lexus RX

There’s no wrong choice among Lexus RX models at the Presqu’ile in Santa Maria, California. — PHOTO FROM LEXUS

Crossover blues getting you down? The all-new iteration is, yup, just what the doctor ordered.

IT’S A sun-drenched yet chilly morning in Santa Barbara, California — perfect for a long drive.

Lexus couldn’t have ordered for better weather as media practitioners from all over the world converge in this picturesque West Coast city chosen as the venue to formally get people behind the wheel of the midsize luxury crossover that is the Lexus RX. The vehicle had been formally revealed to the world online last June 1, but this is the first time that warm bodies will be ensconced in its cabin for a real-world taste of the latest iteration.

Yup, we got dibs.

The location is additionally appropriate, too, as Lexus had presented the very first RX (outside of Japan) in the United States in 1998, with export sales commencing in March of that year. The model is said to have opened the doorway into the luxury crossover segment, which many premium brands have capitalized on since.

We depart from our lodgings in this beautiful university city steeped in Spanish colonial revival architecture and head northeast on Route 101. We follow the directions pre-programmed on the RX’s navigation system, predicated on a large new Lexus Interface touchscreen measuring 14 inches in the center stack.

The RX 350h Hybrid we’re aboard (swathed in Nori Green Pearl paint) is an AWD, powered by the fourth generation of the Lexus Hybrid Drive. It gets a two-motor transaxle/single-motor rear differential, and electric power comes courtesy of a nickel-metal hybrid battery. Completing the one-two punch is a 2.5-liter, four-cylinder gas engine. The driver accesses the performance potentials via an electronically controlled continuously variable transmission (CVT). The system pumps out 246 horses, enabling this variant to reach 60mph (97kph) in 7.4 seconds.

On the highway, the RX feels secure, compliant, and sure-footed. Its system reads, through Road Sign Assist, highway markers and consistently monitors whether or not we are breaking the speed limit on a particular stretch of pavement. It’s a challenge, too, as the SUV remains unperturbed even at a high rate. The displayed speed limit turns red in hue once when it is exceeded.

We further enjoy the California sunshine and blessing of good weather by unsheathing the panoramic sunroof. I also enjoy a stint at the second row, taking in the unfolding scenery while savoring the extra legroom — an obvious happy consequence of the fifth generation’s 60-millimeter growth in wheelbase (for 2,850mm in total). Back here, passengers can also control the A/C’s fan and temperature settings. If you feel extra warm, you could even switch on the seat fan to cool your hindside. Two USB-C ports complete the accoutrements.

Our destination, the sprawling family-owned vineyard and winery Presqu’ile (pronounced “press-keel”) lies in the Santa Maria Valley. From the property ship out “cool-climate” Pinot Noir, Chardonnay, and Syrah. But today is not for imbibing spirits but, rather, taking in the sensorial delights of the RX.

The property is an excellent, scenic backdrop for Lexus to formally present the vehicle to the assembled media practitioners.

Along with its extended wheelbase, the all-new iteration grows by 25mm in width (1,920mm) while keeping its 4,890mm total length; Lexus also shrinks the RX height by 10mm. The central idea is to bestow the crossover with a lower center of gravity and a “planted stance.”

Replying to a question from “Velocity,” Lexus College of Lexus USA Product Education Manager Paul Williamsen says that there are several highlights in the all-new Lexus RX. “It’s a completely new car — and all-new body shell, all-new platform, all-new suspension. So it’s thoroughly revised, at the same time very much in character for an RX. You know, the RX has a tremendously loyal fan base, and we wanted to be certain we didn’t disappoint them in any way. It has improved in many ways, and yet, for any longtime RX owner, we think they’ll feel quite comfortable in it,” he explains.

One of the significant developments in the model is that Lexus is offering it with an option of (count ’em) four powertrains — a turbocharged gas engine, a hybrid, a plug-in hybrid, and a turbocharged hybrid.

“I think it’s the global popularity of the RX that has led us to offer four different powertrains. Each market, of course, has its own customers, its own roads, infrastructure issues related to fuel or emissions testing or regulations or charging, and so we can cover all those possibilities now,” continues Mr. Williamsen.

And Lexus probably doesn’t need to confirm this, but it’s a safe bet to say that was immense pressure on the designers and engineers to deliver on the brand’s iconic model.

“The RX has a really interesting history, if you go back to the root of when it was first developed,” adds Paul. “The RX really was developed specifically for Lexus USA. It was a segment where some people in Lexus USA back in the mid-’90s saw an opportunity for what we now call the crossover SUV. Nobody else was doing those then; nobody had crossover SUVs.

“And honestly, within our company, we weren’t all that convinced it was a great idea… Fortunately, the smarter product planners won that argument, and it became very quickly our biggest-selling model,” he opines with a smile. “And then other countries began to say, ‘Hey, what are these guys selling that we don’t have in our market?’”

While we’re at it, Lexus Philippines says to expect the RX to arrive, supplies willing, before the end of the year. They’re also not yet confirming which variants will make it to the country.

What we do know is that the RX won’t be getting the three-row, seven-seater version anytime soon; this much we learn via a virtual presser with Lexus RX Chief Engineer Takaaki Ohno and Lexus RX Project Chief Designer Jota Kusakari. In reply to our question, Mr. Ohno says, through an interpreter, “When we were developing the vehicle, the size of the current model that you see today was very important. And that was a starting point that was through massive feedback from all of our customers. And so, given that, we had to determine what the best setup was to achieve our performance and design-related goals.”

He adds, “Within that we determined that two-row seating would be the best way to achieve that. So, for now, we proceeded development with only two rows.”

Speaking of development, there’s clearly much that’s happened in the looks department. The signature spindle grille has been interpreted to reflect a transitioning into greater electrification not just for the model but for Lexus, nay, even Toyota as well. The lower part of the grill remains open — both a functional and stylistic nod to the presence of an internal combustion engine (and its need to breathe, thank you very much). However, the open maw gradually transitions into a closed grille as you move up the spindle design. You can even make out that the top part of the spindle is actually completed by the crimping of the hood. Yes, I’d like to think that this signifies electrification. So, the hybrids that Lexus is releasing for now is truly emblematic of the move from ICE to full electric.

But you don’t have to overprocess the RX like us motoring dweebs. There’s much fun to be had by all with but a glance at the posture and pomp afforded by this project of much love and passion — sprinkled with a healthy dose of comfort and safety tech for good measure. As someone in our group cheekily declared, “We RX-cited.”

So should you.

Globe Business says MSMEs seeking DIY solutions for digital transformation

BW FILE PHOTO

MANY micro, small and medium enterprises (MSMEs) in the Philippines prefer more straightforward or do-it-yourself (DIY) technology solutions that enable them to address pain points in their digital transformation journeys quickly, Globe Business said.

When it comes to digital solutions, MSMEs want to see an immediate impact on their business, KD D. Dizon, head of MSME Group at Globe Business, told BusinessWorld in a recent interview.

“We want to make sure that these are really DIY solutions. It’s not that they need a complex IT department to be able to execute them,” she added.

Data from the Department of Trade and Industry show MSMEs comprise 99.5% of all businesses in the country, generating 62.66% of the country’s employment in 2020.

“The main thing that they want to able to do is actually get new customers, retain their customers, and win back the customers they’ve lost due to the pandemic,” Ms. Dizon said.

“So, we really try to help them improve their sales and interact with their customers because we need to help them bounce back,” she added.

She said many MSMEs continue to struggle financially due to the public health crisis.

A bill recently filed at the Senate seeks to provide additional support for MSMEs, including interest-free loans from state-owned banks and an emergency fund for disaster recovery.

Senator Emmanuel Joel J. Villanueva, author of Senate Bill 138 or the MSME Stimulus Act, said the proposed law is intended to boost and popularize local products in domestic and international markets.

The measure will create the MSME Growth Stimulus Program to extend assistance, strengthen, and facilitate the growth and development of MSMEs to create and sustain jobs across the regions.

INFRASTRUCTURE
MSMEs need communications infrastructure to “embrace digital transformation, which is crucial for MSMEs to grow,” Ms. Dizon said.

“That’s something we want to be able to support them with so that it’s not going to be an overwhelming experience for them.”

Among Globe Business’ digital offerings are business-grade connectivity plans from GPlan Biz and GFiber Biz.

GPlan Biz is one of Globe’s connectivity plans intended for MSMEs.

“Aside from its basic mobile connectivity features, [GPlan Biz] allows users to use GCash for business to purchase digital solutions or pay suppliers conveniently, among others,” Globe Business said in a statement.

“Subscribers can enjoy unlimited 5G network for six months as well as unlimited text and call to all mobile networks and landlines nationwide,” it added.

Meanwhile, GFiber Biz Plus is a business-grade broadband plan that promises seamless online activity for MSMEs.

“It also comes with two pieces of Wi-Fi mesh that help strengthen internet coverage in different parts of an establishment, and unlimited calls to all mobile networks and landlines nationwide, allowing entrepreneurs to be worry-free of top-up call charges,” Globe Business said.

Vehicle Tracker is another digital solution that allows MSMEs to manage their fleet and ensure safe delivery with a real-time monitoring feature.

Globe Business has also introduced Cloud Payroll, which automates employee records and fast-tracks payroll processing, as well as ChatGenie, which lets MSMEs manage their transactions across different channels on one platform. — Arjay L. Balinbin

Maximalism and bustles: trends in wedding dresses

DANIELA wedding gown by Steph Tan — INSTAGRAM.COM/STEPHTANCOUTURE/

DURING the recent “Weddings at the Peninsula and More” bridal and events fair, we couldn’t help but feel a little frisson of delight that the grand venue is ready for possibly some of the most romantic weddings in the city. The sense of excitement was heightened by a wedding dress fashion show at the lobby on Sept. 3 teasing the Manila Fashion Festival Bridal collections of Steph Tan, Vin Orias, and Jun Escario.

We tracked down the coming trends for this wedding season using the collections of these three designers.

MAXIMALISM
No cocktail dress-wearing brides here. The collections of Steph Tan and Jun Escario featured trains, long skirts, and wide ballgown skirts. Smaller dresses would have been dwarfed while coming down the Pen’s grand staircase, which was used as the runway. Even Jun Escario’s singular cocktail-length dress had a skirt made with layers and layers of fabric forming the illusion of several pages of books; perfect for more literary brides.

COLOR
While the menswear designs for grooms by Vin Orias featured traditional white, his designs also showed off plum and burnt sienna suits for dashing grooms. Other suits on the runway showed iridescent pale pink, and navy.

BEADING
Low-key weddings were vital during the pandemic, and grand details on dresses were lost on Zoom screens. With a return to face-to-face interactions, designers lost no time in making sure each detail, embroidered or otherwise, would not disappear on fuzzy screens and camera by highlighting every stroke of embroidery with crystals and beads.

TRAINS AND BUSTLES
Now let’s hear it for the back of the dress. Walking down the aisle, the dress should make an impression on its way to the altar, and both Ms. Tan and Mr. Escario would not let the moment pass. Particularly entrancing is Ms. Tan’s Daniela dress, with a wide ballgown skirt and a bustle made of one huge ruche, making the back of the dress appear like a voluminous pile of either whipped cream, or petals. With Mr. Escario, scarves and capes trailing to the floor complete the effect. — JosephL. Garcia

Because we move in groups

The Nissan Livina features the familiar V-motion grille of the brand. — PHOTO BY KAP MACEDA AGUILA

Nissan PHL reenters MPV segment via a familiar nameplate

By Kap Maceda Aguila

NISSAN PHILIPPINES, Inc. (NPI) is entering the multipurpose vehicle (MPV) segment in the country with the launch of the all-new Nissan Livina. The three-row, seven-seater MPV, manufactured in Indonesia, is available in four variants — priced from P1.029 million.

In a launch event at the Nissan Shaw dealership in Mandaluyong City, NPI officials led by President and CEO Juan Manuel Hoyos oversaw the presentation of the model and its features.

Underneath the hood, the all-new Livina’s variants are similarly powered by a 1.5-liter DOHC engine boasting maximum output of 105ps and 141Nm. The entry-level E variant gets a five-speed manual transmission, while the EL, VE, and top-spec VL get a four-speed automatic.

In a release, Mr. Hoyos said, “The all-new Livina is a modern and practical MPV that young families and first-time car buyers will appreciate and trust. As part of Nissan’s transformation plan, we hope to reach more customers through this exciting offering to this competitive and fast-growing segment.”

It is a segment that has proven very lucrative for Mitsubishi Motors Philippines Corp. (MMPC). More than 60,000 units of the Mitsubishi Xpander have been sold here since the model debuted in 2018. This should be of interest to car browsers because this second-generation Livina is actually predicated on the nameplate. This is obviously another expression of the Renault-Nissan-Mitsubishi Alliance, a strategic tie-up of the auto brands which, taken together, control eight major marques.

Asked about the unique value propositions the Livina brings to the table amid the shared attributes with the aforementioned Xpander, Mr. Hoyos insisted to “Velocity” that the Livina is distinctly Nissan. “You can see the V-motion grille design; it’s very Nissan,” he began. “It also has innovations for our customers in terms of versatility and safety… It also comes with a five-year warranty, so in terms of total cost of ownership, it costs 30% less in maintenance and after-sales compared to its competitors because you only have to go twice a year to the dealership. So it’s a full package.”

The Livina features a front under spoiler, the LED taillamps, and daytime running lights. The VL AT trim receives silver accents, while the other variants get black. The driver’s seat in the VL and VE boasts six-way manual adjustment, and get fold-and-tumble second and third rows.

The VL additionally has keyless entry, a push-button engine start and stop, dial-type air-conditioning controls, a seven-inch touchscreen with audio and hands-free phone control, and multiple charging and connectivity ports at the center console. Its seats are wrapped in black leather — as is the steering wheel with a tilt and telescopic feature. Multiple storage compartments and cubbies are available, along with 12 cup holders.

NPI said that the Livina also comes with Nissan Intelligent Mobility and various safety features, including hill start assist, plus a reverse camera, air bags, anti-lock braking, vehicle dynamic control, traction control system, and parking sensors.

The Livina closely follows NPI’s launch of the Kicks e-Power, and Mr. Hoyos said that these are by design because the two segments promise growth. “We are entering two models that are highly proven — one an SUV, another an MPV. These are our entrants in (segments) that keep growing and we know why (they are) growing. They have elements that the Filipinos love — oriented to family, and we are providing lots of innovation through these vehicles. In the case of the Livina, we feel this is well-suited for multitaskers — particularly because of the third row.

The all-new Nissan Livina is available in five hues: Royal Ruby Red, Moonstone Grey, Diamond Pearl White, Onyx Black, Platinum Silver. Its pricing is as follows: VL AT (P1.209 million), VE AT (P1.149 million), EL AT (P1.109 million), and E MT (P1.029 million). The model also gets segment-first five-year/150,000-kilometer warranty.

Sales will commence on Sept. 15. For more information, customers may check with a Nissan dealership, download the Nissan Assist App to book a test drive, or go to https://www.nissan.ph/vehicles/new/livina.html.

PBEd says skills more important than degrees when hiring

By Revin Mikhael D. Ochave, Reporter

COMPANIES should focus on job competencies instead of college degrees during the recruitment process, advocacy group Philippine Business for Education (PBEd) said.

The Trade Chief recently recommended hiring more graduates of the Kindergarten to Grade 12 (K-12) program.

Justine B. Raagas, PBEd program director for workforce development, said that companies must look at the required job duties during the hiring process.

“[Companies] need to think of competencies. This means that they should think of the actual job and what the tasks entail so that when they hire or put out job advertisements, they don’t check for a paper qualification first but the actual competencies,” Ms. Raagas said in an interview last week.

For her part, PBEd Executive Director Lovelaine B. Basillote said that companies should review their recruitment process to meet the competencies needed for the job.

“It’s more of an overall review of the recruitment process so that you really hire a person fit for the job with the right competencies, making sure that you just hire for the job and the skills required of the job,” Ms. Basillote said.

Trade Secretary Alfredo E. Pascual recently urged companies to hire more K-12 graduates.

“When you check the job descriptions nowadays, almost all require college degrees. This should change because we already have the K-12 program,” he said.

“But it’s still not enough to say that having the program is enough. We need to prove that the K-12 program is able to produce holistically developed individuals,” he added.

“The mindset of people is that you cannot fully prepare for work when you don’t have a college degree, which is totally an erroneous mindset,” he pointed out.

Mr. Pascual also said that employers should invest in improving the skills of the country’s workforce, which according to Ms. Basillote, is the government’s responsibility.

“We think it is the responsibility of government to actually invest in human capital and continuously invest in its people,” she said.

Sacred designs in pearls and gold

A TRIP to Peru inspired a collaborative collection between jewelry brands Joanique and Arao.

The collaboration is called Alchemy, as in the ancient art of mixing elements together in the search to make gold and other precious (and even legendary) materials.

“When we started collaborating, it was more than a year ago. I just came from Peru, what I experienced there was still fresh,” said Joanique founder and creative director Malou Araneta. “I’m still so high from that journey, and I really want to express that in my designs,” said Ms. Araneta.

Joanique started in 2011 and is named after her two children, Joaquin and Monique.

About a year ago, Ms. Araneta went to Peru for a healing ritual. Interacting with the Quesha people of Peru, she sketched patterns that she saw during her trip, and interpreted them in jewels, with the pearls provided by Hong Kong-based Arao. During a luncheon on Sept. 1, Ms. Araneta walked us through some of her favorites.

She picked out a pendant woven in gold like a bird’s nest, an interpretation of the Flower of Life in the belief of sacred geometry, where sacred meanings are ascribed to repeating patterns found in nature. This piece is called T’ika (flower, $2,900 for the earrings, and $2,200 for the matching pendant; most of the pieces are in this price range). “A lot of patterns come from this,” she said about the flower.

Some designs were directly inspired by the Quesha people’s traditional motifs, or patterns found in Quesha weavers’ dreams. For example, she picked out a pair of earrings with a pearl dangling from a leaf. This set is called the Quintu (sacred leaf). “In Peru, it’s very common for them to take coca leaves. It’s like a sacred plant medicine,” she said. Apparently, on hikes, the high altitude makes it difficult to breathe. “So you take this coca leaf so you can breathe. It’s helps you acclimatize.”

A design with a spiral in the center of a sunburst (named Inti, meaning sun), meanwhile, reflects her own journey towards enlightenment.

As dreams and visions differ from person to person, she believes that this translates into her designs. She points out that even in pairs of earrings, for example, no two pearls are exactly identical.

“When you work with natural stones, no stones are completely the same,” she said. “I love working with pieces like that. Imperfection, for me, is beauty.” The fact that the collection is handmade also adds to its uniqueness. “We cannot really have it exactly the same,” she said.

What this says about visions and dreams, she says, “This is my journey. The ideas that I’ve had, the experience during the Peru trip — that for me is very unique. No one can take that away from me.”

View the collection at https://thearaolife.com/. —  JL Garcia

Mitsubishi donates two L300 units to Santa Rosa LGU

Mitsubishi Motors Philippines Corp. (MMPC) President and CEO Takeshi Hara (second from left) holds a symbolic key with Santa Rosa Vice-Mayor Arnold Arcillas at the turnover of two L300 units to the city government. With them are (from left) MMPC EVP for Corporate Division Takehisa Usami, EVP for Manufacturing Taro Soga, and CFO and EVO for Finance Michihiro Toyomizu. — PHOTO FROM MMPC

MITSUBISHI MOTORS Philippines Corp. (MMPC) recently turned over two Mitsubishi L300 units it donated to the local government of Santa Rosa, Laguna.

“Mitsubishi Motors acknowledges the efforts being done by the Santa Rosa local government to aid not only its citizens but also all the hardworking frontliners within the city,” said MMPC President and CEO Takeshi Hara in a release.

The company added that the donation represents the “strong partnership and cooperation” between itself and the Santa Rosa LGU. The L300 units are expected to support the local government’s logistical and transportation requirements.

Commenting on the donation, Santa Rosa Mayor Arlene Arcillas remarked, “From taxes paid, to employment opportunities, the corporate social responsibility programs of the automotive manufacturing industry has contributed immensely to the capacity and capability of the city government to provide continuous services for our constituents. Thank you very much, MMPC.”

Added Mr. Hara, “We at MMPC are committed to make every Filipino’s life better. Together with the Santa Rosa LGU, we aim to contribute to the lives of the Filipino people by providing reliable mobility solutions.”

The Mitsubishi L300 is regarded as an “iconic nameplate” in the utility van segment, known for its reliability, durability, and low cost of ownership. Equipped with a Euro 4 diesel engine, it delivers 40% more power and 10% better fuel efficiency compared to its predecessor.

For more information about MMPC’s activities and the Mitsubishi L300, visit https://www.mitsubishi-motors.com.ph or follow https://www.facebook.com/MitsubishiMotorsPH/.

Salt industry output seen held back by reclamation, import competition

PHILIPPINE STAR/EDD GUMBAN

THE salt industry is unable to boost production due to the reclamation of shoreline and competition from imports, an organization of farmers said. 

“Due to cutthroat trade liberalization and side-by-side reclamation projects, local salt farms started closing one after the other,” the Kilusang Magbubukid ng Pilipinas (KMP) said in a statement. 

“Cheaper imported salt also flooded the markets, driving small salt producers and marginal fisherfolk into bankruptcy,” it added.

Before the Philippines signed on to the General Agreement on Tariffs and Trade, Bulacan used to be among the country’s biggest producers of salt, according to the KMP.

Apart from Bulacan, Pangasinan, Occidental Mindoro, and Las Piñas City were also key salt producers.

The Department of Agriculture has said that the self-sufficiency ratio for salt is equivalent to 7% of demand. The remaining 93% is supplied by China and Australia.

“Our over-dependence on rice and other food imports undermines our capacity to produce food staples locally,” KMP Chairman Rafael V. Mariano said in a statement.

“Back in the day, salt making was considered profitable and many families relied on it for their livelihood as Manila Bay provided clear waters for salt beds. But land reclamation became insatiable. Now, several reclamation and expansion projects along Manila Bay, spanning from Cavite, Pasay, to Bulacan, are in the pipeline,” Mr. Mariano added. — Luisa Maria Jacinta C. Jocson

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