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Gross borrowings slip in Q1

BW FILE PHOTO

THE NATIONAL Government’s gross borrowings declined by 9.46% in the first quarter, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that gross borrowings dropped to P979.762 billion in the January-to-March period, from P1.08 trillion in the same period a year ago.

For the first three months of the year, domestic debt accounted for 69.88% of total gross borrowings.

Gross domestic debt decreased by 19.37% to P684.658 billion in the first quarter, from P849.117 billion a year ago.

Broken down, this consisted of P366.675 billion from fixed-rate Treasury bonds, P283.763 billion from retail Treasury bonds, and P34.22 billion from Treasury bills.

Meanwhile, external gross borrowings rose by 26.64% to P295.104 billion from P233.022 billion.

This consisted of P163.607 billion in global bonds, P105.731 billion in program loans, and P25.766 billion in new project loans.

In March alone, gross borrowings fell by 59.72% to P237.602 billion from P589.888 billion in the same month in the previous year.

Month on month, gross borrowings went down by 36.68% from P375.245 billion in February.

In March, domestic borrowings accounted for 61.47% of the total.

Gross domestic borrowings stood at P146.045 billion, falling 68.15% from P458.566 billion a year ago.

During the month, the BTr raised P135 billion from fixed-rate Treasury bonds and P11.045 billion from Treasury bills.

Meanwhile, external debt was down by 30.28% to P91.557 billion in March, from P131.322 billion in the same month in 2022.

External borrowings in March consisted of P87.511 billion from program loans and P4.046 billion from new project loans.

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the continued economic reopening helped reduce the need for borrowings.

“We have seen in the data that total revenue intake has largely improved since the economy has reopened,” Mr. Asuncion said in a Viber message.

The National Government’s budget gap narrowed by 14.51% to P270.9 billion in the first quarter. Revenues increased by 4.38% to P818.7 billion as tax revenues rose by 3.13% to P719.5 billion.

“Further reopening of the economy towards greater normalcy reduced government spending on COVID-related programs,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This year, the government plans to borrow P2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign sources. — Luisa Maria Jacinta C. Jocson

Meralco expects energy sales to increase by 4%

PHILSTAR FILE PHOTO

MANILA Electric Co. (Meralco) expects energy sales volume to grow by 4% this year as households return to their normal consumption while commercial establishments surpass pre-pandemic power usage, a company official said.

“Although we did end the first quarter at 2%, we’d like to improve that for the rest of the year and bump that up to 4% by year-end. Everyone is feeling a lot warmer [and] that should improve our volumes,” Randwil Dinbo U. Macaranas, Meralco’s head of investor relations, said during the PSE Star Investor Day last week.

In the first quarter, Meralco’s energy sales went up by 2% to 11,287 gigawatt-hours (GWh) from the 11,069 GWh recorded in the same period a year earlier.

“Our April sales [are] actually ahead of the 2% [level], slightly above the 2% as well, so we’d like to see that further improves in the months ahead,” he said.

Mr. Macaranas said that among the different segments, residential consumers will normalize their usage as more customers are now coming back to on-site work arrangements.

Even so, he said that due to warmer temperatures, households are also expected to increase their power consumption as more families tend to “prioritize comfort.”

“With increased mobility obviously, there is a shift also to the commercial segment,” he said.

Commercial establishments are expected to exceed pre-pandemic levels with the continued reopening of the economy, revenge spending, and return-to-office and school setups.

“So, overall, hopefully, it improves in the second half of the year. As the year progresses but overall, we’re still quite positive that we can still reach that 4% in growth,” Mr. Macaranas said.

In the first quarter of the year, Meralco registered a consolidated core net income of P9.05 billion, up by 40.5% from P6.44 billion a year ago, on sustained energy sales and revenue growth.

In a briefing last month, Meralco Chairman Manuel V. Pangilinan said: “First quarter is quite good, but I think 2023 is also looking quite good so we should be able to look at double-digit growth.”

Meralco’s reported net income, which factors in non-recurring items, rose by 26.5% to P8.07 billion from P6.38 billion previously. First-quarter gross revenues surged 23% to P105.64 billion from P85.91 billion in the corresponding period last year on higher fuel costs and volume growth.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Gig economy seen as growing competitor for BPO companies

YAN KRUKAU

THE information technology and business process management (IT-BPM) sector is paying attention to the surging gig economy, the top official of an industry group said, describing freelancers as competition.

“I would say it (freelancing) is something that we need to pay attention to. But it is a force that is hard to stop. I think as an industry, we need to accept it as a challenge because that was catalyzed by the pandemic. It was catalyzed by the fact that we can now work from home,” Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP), said in a chance interview last week.

“You can’t do gig economy in your day job,” he said on the sidelines of the AI Summit organized by Aboitiz Data Innovation Pte. Ltd. in Pasay City.

Mr. Madrid said that business process outsourcing (BPO) companies need to accept that the gig economy is its competitor.

“It is going to be very hard because from what I understand, they’re unregistered companies. Some people really do not want to work in the office. It is just an interesting result of our work flexibility. This is the new world of work,” he added.

Financial technology company Payoneer said in April that the global demand for freelancers had increased, citing its 2023 Global Freelancer Insights Reports.   

The surging demand comes from fields such as programming, marketing, project management, and web design.

“A growing number of businesses are relying on freelancers to support their full-time workforce because of convenience, flexibility, and outstanding quality of work. This benefits freelancers, too, since we have seen how they can enjoy a good work-life balance while still sustaining themselves, especially with the convenience, and practicality of earning in US dollars without leaving the country,” Payoneer Country Manager for the Philippines Monique Avila said.

“We expect this industry to keep growing in the coming year,” she added.

Meanwhile, Mr. Madrid said potential investors should also recognize that the surging gig economy is a competitor of the IT-BPM industry.

“You just have to weigh it. I think on the investor side, we need to accept it and compete with it. On the employee side, I know that the Department of Information and Communications Technology (DICT) is supporting it, and as a Filipino, I am happy for them because it is still a job. It is still good for our economy,” Mr. Madrid said.

“But I want them to know also the pros and the cons of working for an unregistered company,” he added. 

This year, the IPBAP is targeting to reach 1.7-million full-time employees (FTEs) and to generate $35.9 billion in revenues, both higher than the $32.5-billion revenues and 1.57-million FTEs recorded last year. — Revin Mikhael D. Ochave

PAL negotiating to sell four Bombardier planes

FLAG carrier Philippine Airlines (PAL) is in talks with buyers for its four non-operational Bombardier DHC 8-300 with proceeds to be used for investments in newer generation planes.

“It has been there for a while. Those are the old-generation Bombardiers. We are still negotiating with some of the buyers, but I don’t think there’s a definite timeline as of the moment,” PAL President and Chief Operating Officer Stanley K. Ng said in a chance interview last week.

Mr. Ng said the plan is to tell the aircraft as soon as possible as PAL already considers them as a dead asset.

“For me, we have to liquidate those and just invest in newer generation planes or even in digitalization,” he added.

Mr. Ng said the sale of the four planes is not expected to raise significant proceeds.

Meanwhile, the flag carrier is expecting to reactivate a total of 75 aircraft within the year.

“Before it was 98. I think there are only three to four planes that need to be reactivated. But I think next week we’ll reactivate another one. But everything will be reactivated within the year,” he said.

FIRST-QUARTER SHOWING
In the first quarter, the airlines’ parent PAL Holdings, Inc. booked a more than four times jump in its attributable net income to P4.65 billion from P1.08 billion in 2022 as air travel recovered.

In the three months to March, PAL Holdings’ revenues rose by 78.7% to P42.21 billion from P23.62 billion last year, which it attributed to a more than double increase in the number of passengers it carried to 3.4 million.

Mr. Ng said: “Load factor is better. I think the average for international and domestic was around 80%.”

Likewise, the company recorded a 58.9% increase in its expenses to P34.68 billion from P21.83 billion booked in 2022.

When asked what is his outlook for the year, Mr. Ng said: “I think it’s positive. Right now, the outlook is positive for the rest of the year.”

“Right now, inflation is being controlled already by the Bangko Sentral ng Pilipinas. So, the inflation rate is kind of stabilizing and even the interest rates are kind of stable now. I hope that continues for the rest of the year,” he said.

“And commodity prices and fuel surcharge are going down, also making airfares more affordable for everyone,” he added.

On Friday, shares in PAL Holdings added 22 centavos or 4.17% to P5.50 apiece. — Justine Irish D. Tabile

Miss Makati wins Miss Universe Philippines

MISS UNIVERSE PHILIPPINES 2022 Celeste Cortesi (L) and reigning Miss Universe R’Bonney Gabriel crown Michelle Marquez Dee as the new Miss Universe Philippines 2023 during the grand coronation night at the SM Mall of Asia Arena in Pasay City on May 13, 2023. — PHILIPPINE STAR/MIGUEL DE GUZMAN
MISS UNIVERSE PHILIPPINES 2022 Celeste Cortesi (L) and reigning Miss Universe R’Bonney Gabriel crown Michelle Marquez Dee as the new Miss Universe Philippines 2023 during the grand coronation night at the SM Mall of Asia Arena in Pasay City on May 13, 2023. — PHILIPPINE STAR/MIGUEL DE GUZMAN

BEAUTY QUEEN blood pumps through the veins of the new Miss Universe Philippines, Michelle Marquez Dee, daughter of former Miss International Melanie Marquez and Derek Dee, of the Dee banking family.

Ms. Dee will compete at the Miss Universe 2023 pageant, to be held in El Salvador.

She was crowned at the SM Mall of Asia Arena last Saturday, besting 37 other contestants from all over the Philippines. Ms. Dee was representing the city of Makati.

Christine Opiaza representing Zambales and Mary Angelique Manto of Pampanga were named First Runner-Up and Second Runner-Up respectively.

The beauty pageant — hosted by actors Alden Richards and Xian Lim ” had a bit of a problem with tallying votes. After the swimsuit round, the Top 10 candidates had been announced, but due to “technical issues” announced by Mr. Lim, the Top 18 candidates were all given the opportunity to compete in the Evening Gown round.

“Due to technical issues, we resulted to manual tallying, which means our Top 18 candidates will go through evening gown and compete for the Top 5,” said Mr. Lim.

NO NEWBIE
Miss Dee is no pageant newbie, having been a candidate for Miss World in 2019, placing in the Top 12, as well as Miss Universe Philippines Tourism last year.

Ms. Dee also won Best in Evening Gown at this year’s pageant. Ms. Dee wore a black dress with a silver strap by designer Mark Bumgarner. In an Instagram post from Mr. Bumgarner, he noted, “It was so simple that Michelle was able to shine, and not the dress outshining her.”

At the preliminary competition held on Wednesday at Okada Manila, she was named Miss Aqua Boracay, Miss Pond’s, and Miss Zion Philippines.

A special guest at the gala that immediately followed the preliminary competition was reigning Miss Universe R’Bonney Gabriel, who is of part-Filipino descent. During a speech she said, “I feel quite lucky to be Filipina because I would say we are one of the best countries that actively put our all into pageants. The Filipino people have given me so much support as I trained.

“Pageantry has changed my life like no other. It has really pushed me to the highest, truest form of myself. I know that these girls all have their own unique journey and are doing just that,” she said.

Q&A
During the primary question-and-answer round, Ms. Dee was asked, “Income inequality is still high in the Philippines. The gap between the rich and the poor remains. How do we close that gap?”

She answered: “I think first, we have to recognize what we have and the privileges that we have, such as food, education, and homes. I think the best way to address this is really through education because education holds no status quo, and every Filipino child has the right to an education. But not just any education, but quality education. Because I believe if the government can provide this to every Filipino child, then we can not only elevate their quality of life, but we can empower them as well.”

After the Top 5 candidates were announced, they had to answer the same question in the final question-and-answer round: “Recently, the Department of Tourism has adopted a new branding campaign: ‘We give the world our best.’ For you, what is the best that we could offer to the rest of the world? Why do you consider it so?”

Ms. Dee said, “The Philippines is home to very beautiful natural resources. From the beaches, to the mountains. But I firmly believe that the best natural resource that the Philippines has is us Filipinos. We are the true heart and soul of the Philippines, with the way we are hospitable, with the warm smiles, and we are the reason why the world keeps coming back for more. No matter where the universe takes me, I will always be proud to call the Philippines my home. No matter what happens, I will always be proud to call myself Pinoy.” — J.L. Garcia

Mandanas ruling seen to boost PPPs

BOHOL-PANGLAO INTERNATIONAL AIRPORT

THE Mandanas ruling can help push public-private partnerships (PPP) between local government units (LGUs) and private companies, the top official of Aboitiz InfraCapital, Inc. said.

In a chance interview on Wednesday, Cosette V. Canilao, president and chief executive officer of Aboitiz InfraCapital, said that PPP projects could even start at the simplest ones.

“With the Mandanas ruling, LGUs get more of the revenues and that gives them ammunition to go into PPPs and start developing and converting their communities to smart cities,” she said.

Under the Supreme Court’s Mandanas ruling in 2018, the just share of LGUs is determined based on all national taxes and not just on national internal revenue taxes. The decision significantly increased the tax base used in computing the share of LGUs in the internal revenue allotment.

Ms. Canilao said LGUs could go for projects such as “lamp posts, energy management, traffic management, and smart water network for some water distribution that is managed by some municipalities.”

She said that these projects could be done through unsolicited or solicited proposals as LGUs have their own ordinances.

“They (LGUs) can come up with their own ordinance or PPP framework and most of the LGUs have actually done that,” she said.

Ms. Canilao said that one of the biggest challenges in entering PPPs is the lack of capability among some LGUs.

“They are not as knowledgeable and they don’t know how to process it. But the PPP Center, which is a national agency, is mandated to help the LGUs in putting together the PPP framework or even in putting together the projects that can be done through PPPs,” she said.

Aboitiz InfraCapital has submitted unsolicited proposals for various soft and hard infrastructure projects.

For soft infrastructure projects, the company has submitted a proposal to PhilHealth in managing its claims and membership.

“I think that will be again another foundation to accelerate our digital economy and, of course, improve the processes of the health sector,” she said.

For hard infrastructure, Ms. Canilao said the company has submitted unsolicited proposals for three regional airports: Bohol-Panglao International Airport, Laguindingan International Airport in Misamis Oriental, and Bicol International Airport.

“It’s with the government. We are waiting for them to complete their evaluation and the approval process,” she said.

Last week, Department of Transportation Secretary Jaime J. Bautista said that the government is set to fast-track PPP projects for nine regional airports.

“Three unsolicited proposals are already with the National Economic and Development Authority (NEDA) and these are being evaluated,” Mr. Bautista said, referring to the three proposals from Aboitiz InfraCapital.

Mr. Bautista said that the NEDA has required the Civil Aviation Authority of the Philippines (CAAP) to pass additional requirements for the three projects.

“These unsolicited proposals were submitted during the past administration but we are fast-tracking the completion of these. Hopefully, by today the CAAP will be able to submit all the documents which are being requested by NEDA,” Mr. Bautista said on Wednesday.

“And with that, I am hoping that these can be included in the NEDA Investment Coordination Committee Cabinet committee meeting on May 29,” he added.

Aboitiz InfraCapital is also included in the consortium that filed the P100 billion worth unsolicited proposal for the operations and maintenance of the Ninoy Aquino International Airport. — Justine Irish D. Tabile

Victoria’s Secret is rebooting its scandal-plagued fashion show as movie

A MODEL at The Victoria’s Secret Fashion Show in 2011.
A MODEL at The Victoria’s Secret Fashion Show in 2011.

VICTORIA’S SECRET & Co. will bring its fashion show back as a feature-length film this fall after a four-year hiatus, showcasing artists and designers from around the world.

The film, which will be available for streaming internationally, is an attempted reimagining of the retailer’s former flagship event. The fashion show was discontinued after it came under fire for its retrograde portrayal of women. Ratings for the live broadcast had also dropped significantly in its later years.

The film will spotlight fashion collections from 20 artists from four cities — Bogota, Lagos, London, and Tokyo — that celebrate the “individuality of women’s stories and perspectives,” said Raúl Martinez, head creative director at Victoria’s Secret. One portion of the show will document the making of the collections and another will showcase the designs, which aren’t limited to lingerie and could include dresses or outerwear, according to a company spokesperson.

The original live event, which ran from 1995 to 2018, reached peak popularity in the 2000s, turning models like Gisele Bündchen into celebrities and drawing over 10 million viewers worldwide. Viewership dropped as the show’s use of thin, mostly White, scantily clad models known as “angels” fell increasingly out of step with growing inclusivity. At one point, the head of marketing said it wouldn’t include transgender or plus-size models. (The company later apologized.)

It’s unclear how much of a departure the new program will be from the original. The company described it as a mix of old and new. It plans to include top supermodels and musical talent, but didn’t indicate how diverse that group would be or give additional specifics. Elements of the original show — like wings — could be featured in the film, but in a new way, the spokesperson said.

The film will bring back the “very best of entertainment and fashion our customers have been asking for,” said Chris Rupp, chief customer officer at Victoria’s Secret. “We’re celebrating the iconic heritage of the brand through a new generation of artists, and we can’t wait to amplify their vision through our worldwide platform.”

The company has worked to clean up its image in the last few years by casting more diverse models, expanding its size range and adding more women to its board of directors. Victoria’s Secret broke off from its former parent company, L Brands, in 2021 and has since struggled as a standalone public company, losing about 60% of its market value.

Competitors such as Rihanna’s Savage X Fenty — which has produced its own fashion show — and ThirdLove have drawn consumers by positioning themselves as the antithesis of Victoria’s Secret.

In addition to the designs from the four cities, Victoria’s Secret’s in-house teams are creating a fifth collection which will also be part of the show. The items created by the international designers won’t be immediately available for sale, according to the spokesperson.

The company expects that the new show could become an annual event featuring different cities and designers. — Bloomberg

PLDT Enterprise ties up with FILIPAY to roll out automated fare system in PUVs

THE business-to-business arm of PLDT Inc. has tied up with Service Economy Applications, Inc.’s FILIPAY to provide an automated fare collection system and fleet management system for the public utility vehicle (PUV) modernization.

FILIPAY has recently acquired Telavi People Counting Camera with Command Center, which allows it to address route, fleet, and driver management, and gain visibility on its daily revenue.

“Modernizing Philippine transportation with a cashless payment system is no easy feat,” Janice Ariño, president and chief executive officer of FILIPAY, said in a statement.

“We need high standard software and hardware supported by a partner that offers only the best customer service — and PLDT Enterprise delivers in all of these,” she said.

FILIPAY has already tried out the solution with PN Roa Canitoan Transport Cooperative, which implemented the services in Cagayan de Oro.

PLDT Enterprise and FILIPAY will also be working with the Land Transportation Franchising and Regulatory Board and other transport teams to mobilize the Telavi People Counting Camera and Command Center.

“This collaboration finalizes the Department of Transportation’s ongoing route rationalization plan that monitors and gathers data on transport vehicles,” PLDT Enterprise said.

FILIPAY said it saw an improvement in the efficiency of monitoring vehicle fuel and gas consumption and addressing problems of theft through PLDT Enterprise’s fiber-fast connectivity and Telavi People Counting Solution.

“We are excited to contribute further to the transport sector with the help of FILIPAY and serve more Filipinos,” said Albert Mitchell L. Locsin, first vice-president and head of enterprise and international business groups of PLDT.

“By understanding the complexities of various industries and the magnitudes of their businesses’ needs, we continue to improve our solutions so we may support more companies in their digital advancement,” he added. — Justine Irish D. Tabile

Not so small (diamonds)

Socialite vlogger Small Laude is Diagold’s new endorser

SOCIALITE and vlogger Small Laude is the new face of Diagold, a jewelry brand from Cebu. She is in good company — previous brand ambassadors for the brand include former Miss Universe Pia Wurtzbach, model Georgina Wilson, and TV executive and actress Charo Santos-Concio.

According to a company press release: “A #DiagoldWoman embodies the qualities of sophistication and understated luxury. She values craftsmanship, attention to detail, and timeless design. She is a woman of substance, who appreciates the finer things in life, including high-quality jewelry that stands the test of time. The #DiagoldWoman is confident in her own skin, knows her worth, and carries herself with poise and grace.”

Ms. Laude, the sister of philanthropist Alice Eduardo (the founder of Sta. Elena Construction and Development Corp.), is the wife of Philip Laude, of the candy manufacturing family that makes China’s White Rabbit candy in the Philippines.

YOUTUBE SUCCESS
While most of the super-rich are relatively low-key, making occasional appearances in media on stories related to their businesses, or, for the more social, mentions and photos on society pages, Ms. Laude has a much more public profile.

She gained widespread popularity because of her YouTube channel, which currently has 1.85 million subscribers, which focuses on her life as one of the country’s wealthiest women. Still, the channel seems to transcend class because of Ms. Laude’s own sense of humor.

During a group interview at the launch of her campaign with Diagold on May 8, Ms. Laude was asked if her reel and real personalities are the same. To some surprise, Ms. Laude said, “I’m just a little bit mellow on camera.” She added: “I’m a little bit more tame compared to when I’m at home. As long as I don’t step on anyone’s toes — now I found my purpose, I make people happy, and I help with their sadness.”

FAVORITE THINGS
Of Diagold’s jewelry, which she wore that day, she said she favored their all-diamond cascading earrings. During the launch, she was wearing a necklace composed of emerald-cut diamonds, with matching hoop earrings. A large yellow sapphire gleamed on her finger.

“Ever since I was a kid,” she said when asked when her enthusiasm for jewelry started. “My mom is into jewelry. That time, I learned how to appreciate what’s nice, what [a good diamond is], and I love jewelry,” she said.

Her favorite personal pieces are a heart-shaped diamond given by her husband, and a pair of diamond stud earrings from her sister. Asked if she has a lucky piece, she said, “No. Everything, I love.”

Asked if she has a dream piece, she said, “Of course. I want a bigger stone.”

DIAGOLD TURNS 15
While the jewelry company business started in 1967, the DiaGold brand itself was launched in Cebu in 2008. The brand’s name is a portmanteau of the words “diamond” and “gold,” which is a no-nonsense description of its focus — the creation of diamond pieces set in 14k and 18k gold.

The brand turns 15 this year, and it is celebrating with a series of events. It started by opening a new branch at Waterfront Cebu City Hotel and Casino. This was followed by the announcement of Small Laude as its endorser this month. There will then be a “grand celebration” in its hometown of Cebu in August. The opening of a Diagold branch in SM City Bacolod in October caps off the celebration.

The brand co-presented The First Philippine Terno Gala last March, and it is also set to showcase its jewelry at the upcoming MasterClass 2023 fashion show with designers Michael Cinco, Francis Libiran, Furne One Amato, Ezra Santos, and Cary Santiago.

Diagold has branches in Ascott Makati, Glorietta 4, SM City Cebu, Ayala Center Cebu, SM Seaside City Cebu, Nustar Resort and Casino, Ayala Malls Capitol Central Bacolod, and SM City Iloilo. — J.L. Garcia

Aboitiz AI unit, UBX to offer credit scores for small businesses

SINGAPORE-BASED Aboitiz Data Innovation Pte. Ltd. (ADI) and UBX Philippines Corp. have tied up to help finance unbanked and underbanked Filipinos and micro-, small-, and medium-sized enterprises (MSMEs).

“ADI is an artificial intelligence (AI) leader not just in the Philippines but in ASEAN. We are leveraging their AI capability to help us score credit risks for unbanked and underbanked Filipinos and more importantly, for the MSME segment of the economy,” UBX President and Chief Executive Officer John Januszczak said on the sidelines of ADI’s AI Summit.

Under the partnership, ADI will help UBX by providing embedded scoring on its online lending marketplace for MSMEs called SeekCap.

An underserved MSME segment has been identified that offers a big opening for financial institutions, Mr. Januszczak.

“A lot of these businesses don’t even have bank accounts… but it’s also not directly an individual; it’s a set of individuals associated with a business. So, that’s another scoring challenge, and ADI through AI and alternative data is helping us solve that problem so that we can extend credit to people who couldn’t get it and if they could get it we can give it to them at a better rate,” he said.

Meanwhile, Mr. Januszczak expects the number of people employed by MSMEs to go back to pre-pandemic levels.

“I would assume that as things normalize, we’ll get back to those kinds of statistics. If we can provide cost-effective working capital to these businesses as they grow their business, it is going to have a positive and a material impact on truly inclusive financial prosperity,” he added.

Mr. Januszczak also cited a “protection crisis” in the Philippines as insurance penetration as a share of gross domestic product in the country is less than 2%.

The Insurance Commission said that the insurance sector’s contribution to the economy went down by 1.72% in 2022 from 1.93% in 2021.

“In a more developed economy in ASEAN like Singapore, it’s over 8%, or might even be over 10% already, and in other developed markets it is even higher. So, we know that it is drastically unpenetrated,” he said.

Mr. Januszczak identified packaging and the distribution of insurance products as capable of addressing the low insurance penetration.

“A lot of the insurance products that are sold here in the Philippines today are targeted to the affluent, and I am talking about life and health insurance in particular. We need a product that targets the mass market,” he said.

“These insurances traditionally have been distributed through agents and that’s a good thing but we need alternative forms of distribution that could economically reach the rest of the country,” he added.

UBX is an open finance platform launched by Aboitiz-backed Union Bank of the Philippines back in 2018. Meanwhile, ADI is the data science and AI arm of the Aboitiz group. — Justine Irish D. Tabile

Style (05/15/23)

Mugler x H&M collaboration launched in PHL

H&M just rolled out a new designer collaboration, this time with Casey Cadwallader’s Mugler.  The new collection with the French fashion brand features womenswear, menswear, and accessories that incorporate Mugler’s iconic silhouettes. It features Mugler’s signature looks — sexy cutouts, catsuits, corsets, and exaggerated shoulders. Every piece of the collaboration has been crafted under Cadwallader’s creative direction and encapsulates the perfect mesh of H&M’s high street vibe with Mugler’s iconic styles. The limited collection is now available in H&M SM Makati and on hm.com.

Moschino’s new monochromatic logo collection 

MOSCHINO has come out with the #LogoMoschino, the new monochromatic logo collection. The collection features womenswear and menswear in three colors; paradise pink, classic faded denim blue, and jet-black with Moschino’s signature logo stamped in every crevice.  The outfits are made of satin, jacquard, denim, and nylon. Aside from jackets and loungewear, the #LogoMoschino collection also offers T-shirts and sporty ensembles, and travel accessories such as fanny packs and carry-on bags. Recently, #LogoMoschino was launched in the Philippines at Cul-De-Sac at The Podium Mall in Ortigas Center.  The #LogoMoschino collection is also available via the fashion brand’s website.

COS Launches 2023 Mens Summer Capsule

COS has launched its Mens Summer Capsule Collection with pieces in lighter fabrication that’s fit for the warm season. Pairings are kept light and airy, with an overall color palette that ranges from classic neutrals to aquatic tones while a key print motif takes inspiration from the movement of water. The collection is made using materials like linen and seersucker. The Mens Summer Capsule Collection is now available at the COS Store Manila, SM Aura Premier.

Wear Your Culture with Uniqlo’s latest UT collection

JAPANESE global apparel retailer Uniqlo has launched its latest UT collection which features a variety of designs that fit various tastes and styles, such as animé and cartoon prints, game characters, traditional Japanese art and works from renowned artists. Gamers will find T-shirts celebrating Super Mario (particularly the game’s latest film adaptation), Splatoon (this collection showcases squids, octopuses, and more), and Minecraft (depicting the game’s characters, including adventurers, craftsmen, and engineers); animé lovers will find new designs featuring Attack on Titan and Detective Conan and more shirts in collaboration with Dragonball, Pixar, and Pokemon; families can wear matching Peanuts T-shirts (with designs featuring Snoopy, Charlie Brown, Lucy, Woodstock, and more), the UT Grand Prix (celebrating Disney’s 100th anniversary) competition finalists inspired by Disney, Marvel, Pixar, and Star Wars; art enthusiasts have a rich selection featuring works of Andy Warhol, masterpieces from the Musée du Louvre in France, Ukiyo-e woodblock prints and paintings (with art from Hokusai, Hiroshige, and Kuniyoshi) and a graphic motif based on a Kabuki costume. Prices for the T-shirts start at P790. To celebrate the new line-up, Uniqlo is hosting its annual UT Convention (UT Con) this May, spotlighting all of the various UT content. The UT Con exclusive launch will be on May 17 at the Ground Level of Mega Fashion Hall, SM Megamall and will be open to Uniqlo App Members until May 18. Together with the event, Uniqlo is also launching a new and improved look for their Megamall store, featuring three levels. For more updates on the latest collection, visit Uniqlo Philippines’ website at uniqlo.com/ph.

Lush launches collaboration with animé One Piece

LUSH Philippines has launched Lush x One Piece, a collaboration with the globally recognized Japanese animé, One Piece. This is Lush’s first ever licensing collaboration on a range of products.  The concept of this collaboration was inspired by the words of Monkey D. Luffy, the main character of One Piece, who dreams of becoming The King of the Pirates: “I smell adventure!!!” The collaboration features six products including four bath bombs inspired by the Devil Fruit, which in the story gives mysterious power at one bite. A bubble bar inspired by the straw hat of Luffy and a Knot Wrap (Lush’s reusable gift wrap) featuring the symbolic pirate flag of Luffy and his crew. Lush is exclusively distributed in the Philippines by Stores Specialists, Inc., and is located at Alabang Town Center, Bonifacio High Street, Glorietta 4, Greenbelt 3, Robinsons Magnolia, Shangri-La Plaza, SM Mall of Asia, and TriNoma. Available also in Zalora and Trunc.com.

Casa Juan celebrates summer with new products

INSPIRED by picturesque Philippine summers, Casa Juan brings two new styles to its homeware range that ring in nostalgia. First are the Philippine Handsome Sunbird Plates. Found mostly in the woody areas of the lowlands and mountain forests, the Philippine Handsome Sunbird is endemic to the Philippines. Its long, curved bill is accentuated by yellow, red, and olive feathers and touches of bright blue. It is rendered on Casa Juan plates as perched on tropical fauna or flowering trees. Then there are the Sorbetes napkin rings. Sorbetes is a type of traditional ice cream made with coconut or carabao’s milk sold out of a distinctive cart by sorbeteros. The Sorbetes napkin rings feature a gilded sorbetes cart.

Ortigas Library images on scarves and more

THE ORTIGAS Foundation Library produces unique items featuring images from its special and rare Filipiniana collections — these items were designed in-house. They range from bags, shirts, and scarves, to stationery items, and more. They are perfect gifts and giveaways for all occasions. The Ortigas Foundation Library shop also has a book section with a lot of interesting topics. Proceeds from the sale of the items will help the library continue its operations and will benefit its history, culture, and art programs and educational development programs of the Ortigas Foundation, Inc. which include public school library donations, lectures, and talks that are free. The library is open to the public with no membership or library fee. For details, visit the Facebook shop, or get in touch with library shop staff Jennifer (santosjd@ortigasfoundation.com.ph). The Ortigas Foundation Library is located at the 2nd Floor McKinley Bldg. (on top on Unimart), Greenhills Shopping Center, San Juan City. It is open Monday to Saturday, 8 a.m. to 5p.m. It is closed on Sundays and holidays. For more information, visit www.ortigasfoundationlibrary.com.ph

Bespoke watches benefit the Louvre

SINCE its founding, Vacheron Constantin has remained consistently committed to art and culture. Initiated in 2019, its special partnership with the Louvre Museum enables it to offer its clients an experience reaching well beyond the simple personalization of a timepiece. Following the example of Les Cabinotiers — Homage to Pierre Paul Rubens, “La lutte pour l’étendard de la Bataille d’Anghiari,” a single-piece edition watch from the Bid for the Louvre auction in 2020, Vacheron Constantin is now proposing a new experiential offer called A Masterpiece on the Wrist. It involves creating a single-piece edition Les Cabinotiers watch with a dial featuring an enamel reproduction of an artwork kept at the Louvre Museum and chosen by the purchaser. Most of these works are not on display. A certificate of authenticity from the museum will certify the reproduction. The experience will be accompanied by a private tour of the Louvre in the company of its experts and the Manufacture Vacheron Constantin to meet its master watchmakers and master artisans.

Summer skin care with Aveeno and Neutrogena

AS SUMMER continues, a person’s skin is even more vulnerable to damage from the sun and heat. That’s why a good skin care regimen that includes cleansing, moisturizing, and sun protection can go a long way in achieving and maintaining healthy skin. There are several Aveeno and Neutrogena products that can give summer skin relief. Aveeno Skin Relief Body Wash, with its Triple Oat formula, is clinically proven to provide superior care and hydration for sensitive skin, locking moisture for up to 24 hours. Pair it with the Aveeno Skin Relief Lotion, which can relieve dry, itchy skin in as fast as 60 seconds, and can moisturize for up to 72 hours. Both lotion and body wash are available in various sizes, with a one-liter option for home use and a 71 ml variant for traveling. The Aveeno Dermexa Daily Body Wash and Emollient Cream is a combination for those dealing with flare-ups caused by extra dry skin. Developed with dermatologists, these products feature a unique formula that combines Prebiotic Triple Oat Complex + Ceramides and is suitable for sensitive and eczema prone skin. These products are fragrance-free and formulated without parabens, phthalates, and dyes, making them a good choice for those with super-sensitive skin who want to enjoy summer. Lightweight moisturizers are good options for summer. Neutrogena’s Hydro Boost Water Gel is an oil-free gel moisturizer made with hyaluronic acid, designed to bind water to the skin for a supple and smooth complexion. It is absorbed quickly, making it a great base under makeup, while still providing intense and long-lasting moisturization. With its oil-free formula, it’s suitable for both those with dry sensitive skin and those with oily skin. For those with sensitive skin who want to achieve plump, glowing skin this summer, the fragrance-free Neutrogena Hydro Boost Nourishing Cream contains a Natural Moisturizing Factor (NMF) complex, it strengthens the skin barrier and delivers more hydration to dehydrated skin. Within two weeks of use, this gentle yet effective cream soothes, re-plumps dry lines, softens and smoothen uneven skin texture, and reveals visibly healthy, glowing skin. Then there is the Neutrogena Hydro Boost Hyaluronic Acid Serum, the brand’s most concentrated hydrating serum yet. Paired with the Neutrogena Hydro Boost Water Gel, this serum instantly absorbs to deliver moisture nine layers deep into the skin’s surface to reveal smooth and supple skin. Its lightweight finish is a boon for anyone prone to breakouts, including those with sensitive or oily skin. It quickly absorbs into the skin, making it ideal for the warmer months when excess sweat and oil can be a concern. Then there is sunscreen which protects the skin from harmful UV rays which can cause sunburn, premature aging, hyperpigmentation, and other skin problems. Neutrogena Ultra Sheer Dry-Touch Sunscreen SPF 50 PA+++ helps maintain the integrity of the skin barrier. It features ingredients which block both UVA and UVB rays, and Dry-Touch Technology that keeps skin shine-free and clog-free. Additionally, its ultra-light, non-shiny finish gives the feeling of having nothing on, perfect for summer. Visit www.neutrogena.com.ph and www.aveeno.com.ph for more information.

T-bill, bond rates may drop on dovish BSP bets

WIKIPEDIA/JUDGE FLORO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could be lower amid bets of a pause in the Bangko Sentral ng Pilipinas’ (BSP) tightening after headline inflation eased in April.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, made up of P5 billion each in 91-, 182-, and 364-day papers.

On Tuesday, it will offer P25 billion in reissued 13-year T-bonds that have a remaining life of 12 years and 11 months.

T-bill rates could inch down this week following the decline seen in the secondary market amid a possible pause in the central bank’s rate hike cycle, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“With faster headline disinflation leading the way despite core refusing to wilt, and year-end headline inflation forecasts spot on the BSP’s target range, investors’ upbeat mood cannot be denied,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a report.

At the secondary market on Friday, the 91-, 182-, and 364- day T-bills went down by 3.59 basis points (bps), 0.43 bp, and 20 bps week on week to end at ​5.9167%, 6.0570%, and 5.9943% respectively, based on the PHP BVAL Reference Rates data published on the Philippine Dealing System’s website.

“The upcoming 13-year Treasury bond auction yield could be similar to the 12-year PHP BVAL yield at 5.86% as of May 12, 2023 (down by 0.11 bp),” Mr. Ricafort added.

BSP Governor Felipe M. Medalla last month said the Monetary Board could consider holding rates steady at their May 18 policy meeting if inflation eased further in April.

The BSP has raised benchmark interest rates by 425 bps since May 2022 to help bring down elevated inflation, with its policy rate now at a 16-year high of 6.25%.

Headline inflation eased to 6.6% in April, the slowest in eight months or since the 6.3% print in August 2022, data from the Philippine Statistics Authority showed.

For the first four months, inflation averaged at 7.9%, still above the BSP’s 2-4% target and 6% forecast for the year.

Mr. Asuncion expects demand for long-term tenors to continue rising, but investors “may opt to diversify shorter tenors.”

“The BSP’s pause or any clear signal of an imminent pause is like giving carte blanche to investors to overweight the curve’s belly and short duration,” he said.

Last week, the Treasury raised just P11.09 billion from its offer of T-bills, lower than the P15-billion program, even with total bids reaching P45.354 billion.

Broken down, the Treasury borrowed just P3.06 billion via the 91-day T-bills despite tenders for the tenor reaching P10.628 billion, above the P5-billion plan. The average rate of the three-month papers went down by 10.90 bps to 5.891%, with accepted rates ranging from 5.888% to 5.95%

The government also made a partial P3.03-billion award of the 182-day securities versus the P5-billion program, with demand at P13.14 billion. The six-month paper fetched an average rate of 6.109%, 11.60 bps higher than the 5.993% seen for the last successful award of the tenor on April 24, with accepted rates from 6.073% to 6.155%.

On the other hand, the BTr raised P5 billion as planned from the 364-day debt papers as bids for the tenor stood at P21.946 billion. The average rate of the one-year T-bill went down by 3.60 bps to 6.211%, and accepted rates were from 6.19% to 6.245%.

Meanwhile, the reissued 13-year T-bonds to be auctioned off on Tuesday were first offered on April 18, where the government raised just P19.475 billion out of the P25-billion program.

The bonds were awarded a coupon rate of 6.25%, with the average rate at 6.24%. Accepted rates were at 6.1% to 6.35%.

The Treasury wants to raise P175 billion from the domestic market this month, or P75 billion via T-bills and P100 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy

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