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[B-SIDE Podcast] Kain tayo: A second helping of the social role of food

In the spirit of a good meal that lasts several hours because the talking is just as satisfying as the eating, this B-Side episode continues on the social role of food.

This time, we’ll hear from Maria Angelica B. America, an advocate of sustainable development who also teaches economics to senior high school and university students.

She tells BusinessWorld reporter Jaspearl Emerald G. Tan that food is a matter of national identity.

TAKEAWAYS

Food is central to Filipino culture and community.

When Filipinos leave home, they cope by eating or cooking certain dishes that make them feel like they’re not so far away. 

“Filipinos won’t be the same without our food … When we leave the country, we think, oh, when I want to feel more Filipino, I will cook, I will prepare, or I will eat Filipino food. It helps me get in touch with my Filipino identity,” said Ms. America. 

Food creates a sense of belongingness.

A person first learns about the concept of belongingness through being fed by their parents, according to Ms. America.

“In an ideal situation, as the child grows up, he or she comes to equate feeding—or eating together for that matter—with the concept of family, of togetherness, of belongingness,” she said.

In cases where the family is not too expressive, food can take the place of words, especially when it comes to expressing difficult emotions, like saying sorry. 

Food also helps people learn to fit into society, helping them form new bonds and strengthen old ones.

She noted that eating together is a sign of friendliness and community. “You show the intention to get to know somebody if you want to eat with them.”

Food is memory.

The pandemic “shook the fabric of society” because it took away the community aspect of Filipino life. “A lot of the things we did, we did together,” said Ms. America.

The most important events in a person’s life are often in the presence of food, she said, because “food amplifies the experience.” 

“It might be simple food, but if it’s shared with great company, prepared with great company, you will always go back to that memory. That’s beautiful. That’s the power of food.” 

Recorded remotely February 2022. Produced by Jino D. Nicolas and Sam L. Marcelo.

SM Prime: Building strong foundations of responsible development

SM Megamall

The topic of sustainability in property development has surged since the world experienced Covid-19. Having to redefine the use of spaces, people soon realized how instrumental real estate is in the journey towards a more sustainable way of life. With the threat of climate change looming in the horizon and a growing population to sustain, the need to build more sustainable and resilient cities only continue to rise.

SM Prime traces its journey on sustainable design and development way before the concept has gone main stream. At the heart of SM is its commitment to serve its customers – designing its malls to bring better comfort and an enjoyable experience in every visit to SM Supermalls.

Sustainable Comfort

Built through several phases of development, SM Megamall, among SM’s 78 malls across the country, has grown into the complex it is today with 800 shops including 250 dining outlets and 16 anchor tenants. Customers explore the expanse of the 10-hectare development from its convenient parking grounds, relaxed atmosphere and beautiful façade. Behind this is sophisticated engineering anchored on sustainable design and technology.

  • SM Megamall is energy and water efficient. The building is enveloped with EIFS or Exterior Insulation Finishing Systems board which helps boosts wall insulation, making it more resistant to heat. It only uses LED lighting system allowing a 50% energy saving. The mall also tracks a lighting operating schedule following the supply requirement of our mall activity and does not contribute to environmental lighting pollution so as not disturb nocturnal animals. It also uses sensor activated escalators that contribute to about 30% energy savings. It’s air handling system uses high-efficiency air-conditioning system that has greater environmental stewardship. Lastly, it uses efficient water fixture for water savings and recycles water.

SM Megamall 

  • SM Megamall works with the natural environment. The mall utilizes green walls, skylights and clerestory or a high section wall that contains windows above eye level to increase the flow of natural light. It is surrounded with plants of local varieties and selection of trees and shrubs. 
SM Megamall Bicycle Racks
  • SM Megamall promotes mobility. Situated in the middle of EDSA, SM Megamall brings 550 buses into one integrated system to promote easier mobility. Green hybrid transports provide options for the more environmentally conscious passengers. All public transports are required to meet mandated emission levels in support of the Clean Air Act. The mall is pedestrian-friendly with about 1,595 square meters of covered walk ways. Throughout the mall, designated bike lanes and parking spaces are provided. Lastly, parking sensors not only make parking easier but has also reduced emissions in the parking areas.
SM Mega Tower
  • SM Megamall practices responsible materials management. The mall uses Echostop ceiling finish for noise absorption which is made from gypsum and paper liner made from 100% reclaimed and recycled paper. The Mega Tower uses insulated glass units which keeps heat out during summer months and Low E-glass to minimize the amount of ultraviolet light that comes through the windows, with both features maximizing energy savings. It also has a Material Recovery Facility dividing recyclables, biodegradable waste, residual waste and hazardous waste. 

Environmental Strategy

All these initiatives are aligned with SM Prime’s environmental strategy of developing, designing, and building integrated lifestyle cities with sustainability and resiliency considerations in mind.

Echoing these efforts, SM Prime continues on its transition to clean energy. Aside from investing in energy efficient programs, the company is broadening its renewable energy investments. SM Prime targets to increase its demand for electricity sourced from renewables by more than 50% across all of its business segments by end of 2022 in support of the Department of Energy’s goal of moving the country’s renewable energy supply component up to 35% by the end of the decade.

Moreover, as part of a growing movement of responsible and sustainability-centered enterprises, SM Prime has joined the 2,500 organizations worldwide in supporting the Task Force on Climate-related Financial Disclosures (TCFD) and its goal of creating a more resilient financial system through better climate risk disclosures. Through this, it hopes to continue to drive its business to adopt more sustainability initiatives related to climate change.

At Hamilo Coast, SM property in Nasugbu, Batangas, it continues to uphold its commitment to sustainability and conservation as it planted 50,000 more mangroves which covers 100,000 square meters of the estate. This is also touted as one of the largest mangrove areas in Nasugbu. Hamilo Coast continues to protect its mangrove ecosystem together with the World Wide Fund for Nature (WWF) Philippines—a partnership it has nurtured since 2007.

Hamilo Coast also undertook the initiative to declare three of its coves, namely Pico de Loro, Etayo, and Santelmo as Marine Protected Areas in 2009.

SM is regreening the country sides through its tree planting program led by SM City Baguio. This is in partnership with the Philippine Military Academy (PMA), the Department of Environment and Natural Resources – Cordillera Administrative Region (DENR-CAR), Baguio Water District, the local government of Baguio City and 25 media organizations in Baguio.

As of January 2022, over 600,000 trees have already been planted in Baguio City and neighboring towns in Benguet.

SM further promotes sustainable practices through water recycling and the adoption of technologies that promote smart water use. In 2020, it was able to recycle 28.9 million cubic meters of water.

In terms of solid waste management, SM Prime has intensified its campaign by requiring all contractors to implement proper waste management procedures during construction.  A long-running program through SM Cares, the monthly Trash to Cash (TTC) provides an avenue for the community, including properties’ tenants, to participate in solid waste management. This initiative ran for nine months in 74 malls and five SM Development Corporation properties in 2020, saving 134,067 seven-year-old trees to date.

It also undertakes paper recycling in partnership with the Trust International Paper Corporation and the responsible transport, treatment, storage and disposal or processing of the properties’ generated hazardous waste, compliant to the government’s implementing rules and regulations.

Resiliency as a Necessity 

While SM serves millions of customers every day, its impact goes beyond its businesses – touching the lives of millions more in the communities wherever it is present. For a country like the Philippines, the impact of climate change can already be felt with typhoons getting stronger and more frequent.

Hans T. Sy, chairman of the Executive Committee of SM Prime has served in leadership roles in both national and international organizations focused on disaster resiliency and its impact to business and society. Leading by example, SM integrates disaster resiliency in its business strategy as well as its city and mall designs and developments. This, not only allows SM businesses to operate during calamities, instead, also helps communities become more resilient to typhoons.

“I believe in an age-old adage; an ounce of prevention is worth a pound of cure. SM Prime has taken deliberate steps to reinforce resiliency across its properties and provide a focused approach on sustainability in order to preserve communities and save lives,” said Mr. Sy.

Such is the impact created by SM Masinag.

Vermont Park Phase 1 is located near SM Masinag. For years, it would undergo flooding during typhoons. However, the story has changed. Since SM Masinag opened to serve the community, it has been equipped with a water catchment facility that can detain 17,681 cubic meters of water, which is equivalent to 7 Olympic size swimming pools. This helped control the flooding of nearby villages during typhoons.

Meanwhile, SM Marikina, which is also in a high-flood rate zone, is able to serve as first responder and a safe haven to affected families during times of calamities. This is because it is standing on 246 stilts with an elevation higher than the highest recorded water level rise in Marikina City.

Sustainability and Resiliency as Strong Foundations for Responsible Development

SM Prime anchors its development on both sustainability and disaster resiliency. For SM, both serve as strong foundations for responsible development – to address the increasing demand for urban areas and to address the threat of climate change.

From the onset of concept design, SM Prime allocates around 10% of capital expenditure to incorporate sustainability features and disaster resilience when building malls, offices and even integrated lifestyle cities.

“The safety of the communities, employees, customers, and the facility structure remains top priorities in all SM Prime developments. As I tell my design teams ever so frequently, ensuring safety is the only way I can sleep well,” Mr Sy said.”

For SM, this means the hard infrastructure capacities as well as how spaces are designed to facilitate mobility, green transport options, greener buildings and even green technology such as being powered by solar energy. As such, wherever SM operates, SM Prime makes every effort to help create the spaces and cities we need in order to sustain ourselves into the future.

 


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Resilient investment choices for sustaining financial markets

BW FILE PHOTO

More than a health crisis, the COVID-19 pandemic has become an economic crisis as well, with the pandemic’s impacts reaching financial markets, as indicated in several ups and downs in share prices. In spite of such challenges, however, financial markets and institutions have pressed on and stood unwavering in performing their valuable roles in the economy.

BDO Unibank, Inc. (BDO), for its part, steadily serves its clients in the financial market as its products remain competitive and relevant.

Despite the volatility in the financial markets, the volume and returns on BDO’s investment funds have improved, with most funds outperforming their benchmarks. Such positive performance is reflected by its consolidated assets under management, which expanded by 22% year on year as of the third quarter of 2021. Moreover, the bank maintained its dominant position as it accounts for 38% of the market.

BDO’s participation in the capital markets cuts across several business lines, with its services involving investment banking, treasury, and wealth management.

BDO Capital and Investment Corporation (BDO Capital), the investment banking arm of BDO, continues to leverage on the bank’s extensive market knowledge and experience across a broad range of industries to service clients’ capital and funding requirements, as well as to support their recovery from the pandemic. Last year, BDO Capital participated in major equity and debt fundraising exercises, which include three initial public offerings and one follow-on offering.

The bank’s Treasury Group, meanwhile, supports the bank’s asset and liability requirements. The group’s portfolio strategy is to deploy funds prudently dependent on prevailing market conditions, invest selectively to build up its accrual portfolio, and tap longer-term funding sources to address BDO’s funding requirements.

In providing investment and wealth management services across the spectrum, BDO employs a segmented approach. The bank serves the high net worth segment through BDO Private Bank (BDOPB), while its Trust and Investments Group (TIG) and BDO Prime service, under BDO Securities, cater to the mass affluent segment.

Anchored on open architecture approach, these services allow clients to participate in a wide array of both local and global investment opportunities.

BDOPB creates bespoke solutions to meet clients’ unique investment requirements, which include anticipating client needs for higher-yielding instruments during the low-interest rate environment. With an emphasis on diversification, BDOPB was the first institution in the Philippines to adopt the open architecture approach, providing clients with access to investment opportunities beyond BDO proprietary products.

TIG, for its part, continues to seek alternative investments for clients to optimize their returns. This includes US dollar-denominated funds, which are offered as attractive investment outlets. Focused on propelling growth by further diversifying offshore investments, TIG is offering a variety of feeder Unit Investment Trust Funds (UITFs) to broaden foreign offerings and offer additional exposure to overseas capital markets. With these offerings, TIG maximizes on the recent performance of global equities as they provided better returns upon opening their economy earlier than emerging markets.

BDO Securities, on the other hand, aims to create a more comprehensive platform to serve both mass affluent and emerging affluent segments by providing a broader set of products and services that include equities, fixed income, UITFs, and mutual funds in both peso and US dollars. Notably, last year BDO Securities was ranked at #4 among Philippine Stock Exchange trading participants in terms of total value traded.

Alongside its broad approach in participating in the financial market, BDO likewise has a diversified and even upgraded menu of offerings for clients to avail of.

To address the evolving needs of its diverse clients, for instance, the TIG currently manages 25 different UITFs across a multi-asset, multi-currency, and multi-strategy platform.

In addition, BDO’s core offerings are regularly reviewed to strengthen its value proposition. As a result of these reviews, new products such as the BDO Money Manager and BDO Pension 360 were developed to address the growing needs of retail and institutional clients.

Further making BDO stand out in serving financial markets is its advocacy for socially responsible investing. Since 2015, it has made available the BDO ESG Equity Fund, the first Philippine investment fund that incorporates environmental, social, and governance factors in the selection of equity investments. The product responds to the demand of institutions, schools, non-profit organizations, and religious entities for a socially responsible fund.

BDO has taken this advocacy further through sustainability bonds. Recently, the BDO raised P52.7 billion-worth of Peso-denominated Fixed-Rate ASEAN Sustainability Bonds under its P365 billion Bond Program. This issuance, the first of its kind from BDO, is set to finance eligible assets under the BDO’s Sustainable Finance Framework.

For BDO, this is a new milestone as the bank exceeded its previous record of P40.1 billion for a single bond issuance. This is also by far the largest issuance for any Philippine financial institution or company.

These diverse and relevant offerings are coupled with BDO’s continuing support for the financial wellness and inclusive growth of its clients. The bank has a dedicated team that provides free financial education programs to clients. By educating Filipinos on the importance of investing to improve their financial well-being, BDO hopes to achieve the goal of converting Filipinos from savers to investors.

BDO’s various quality investment choices, put together with accessibility to new issues (through BDO Capital) and offshore investment outlets (via open architecture platform) and consistent above-industry performance, makes BDO a reliable brand in sustaining and boosting the financial market.

 


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New Lexus RX: Refining the luxury driving experience

The new Lexus RX boasts of style and safety, further enhancing the luxury driving experience that it offers and is known for.

The new Lexus RX’s features are a testament to Lexus’ ongoing commitment to upholding the vehicle’s status as a pioneer of the luxury SUV segment. RX has been refined from inside out and from the front to rear, including a new lighting technology geared towards a safer driving experience.

At the front of Lexus RX are the all-new headlamp, fog lights, grilles, and wheel arch moldings, while updated lighting and bumper are at its back.

Inside the Lexus RX are two USB charging ports, a mobile phone holder, Remote Touch Interface, and an available 12.3-inch EMV (Electro Multi Vision) touch display closer positioned to users and can now be utilized by the front passengers. In the rear, the vehicle’s third-row seats now feature two different seating positions. In addition to the traditional seating position, more leg space can now be occupied when needed.

Lexus RX’s driving character is also updated, embracing the brand’s exhilarating performance following the path of LC and LS flagship coupe and sedan. Engineers intensively examined the vehicle, enhancing the rigidity of the body and suspension system and adding in new shock absorbers and brake control system. Such upgrades provided excellent handling feel and precision that enables users to accurately trace their desired driving lines, thereby furthering their motoring experience.

Intelligent High Beams

Lexus equipped the new RX’s AHS (Adaptive High-beam System) with the world’s first BladeScan technology.

Understanding that many of the accidents between vehicles and pedestrians happen at night, this newly available high-beam system enhances the driver’s field of view. It gives them excellent visibility even in dark situations and a wider illumination area compared to conventional array-type lighting, with smooth and fine light distribution control.

BladeScan operates by rotating a mirror inside the AHS unit that enables the illumination area to expand further to cover the maximum field of view with minimal glare for drivers in front.

Such technology also activates automatically, being supported by a control unit inside the lamp that examines the surrounding through a front-facing camera, including vehicles ahead and ambient brightness, as well as processing vehicle speed and yaw-rate information to enable/disable and adjust the LEDs’ brightness to deliver optimum illumination.

As BladeScan augments the driver’s field of view, it also supports in identifying roadside pedestrians that happen to be crossing further ahead. Such technology, along with the award-winning Lexus Safety System+, supports the brand’s mission of ensuring the safest driving experience possible for the people inside and outside the vehicle in almost every type of road and environmental conditions.

Revised grille

Since its launch as an all-new model in 2016, the new Lexus RX sports a distinctive front fascia that gives its visual identity. Non-F-Sport RX models have their grille revised.

Amplifying its visual strength and distinctiveness, Lexus RX underwent minor changes to the shape of its spindle-shaped grille and was designed with a slightly raised bottom border to visually match the body sides.

The non-F-Sport RX is also no longer characterized by straight horizontal lines. It now wears an “L”-shaped block mesh that suggested the unity of the Lexus’ SUV lineup while serving more depth and character to the grille.

The new design also shows differing upper and lower sections. The mesh flow changes as it radiates outward from the central badge, creating a look with a sense of motion.

Being the face of vehicles, Lexus knows that front fascia transformation is significant. The revised grille highlights and adds more to RX’s luxurious design and experience.

The new Lexus RX comes in four different variants: RX 350 for P4,498,000; RX 350L for P4,978,000; RX 350 F-Sport for P5,158,000; and RX 450h for P5,398,000.

 


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BSP to keep policy rates steady — poll

PHILIPPINE STAR/ RUSSEL A. PALMA
A vendor arranges vegetables at a public market in Manila, March 16. — PHILIPPINE STAR/ RUSSEL PALMA

By Luz Wendy T. Noble, Reporter

THE BANGKO Sentral ng Pilipinas (BSP) is widely expected to maintain policy rates at record lows on Thursday in line with its signals it will continue to support economic recovery.

However, analysts said they are seeking more forward guidance from the BSP on its imminent tightening as the space to retain its accommodative stance is getting smaller.

A BusinessWorld poll last week showed 15 out of 17 analysts still anticipate the Monetary Board keeping rates on hold on March 24, the second policy review this year.

Analysts’ expectations on policy rates (March 24)

Analysts believe the BSP will remain focused on providing support for a more sustainable economic recovery despite inflationary risks caused by the Russia-Ukraine war.

“I think the BSP will maintain rates, since the problem (i.e., the Russia-Ukraine conflict and its ripple effect on world oil and commodity markets) is essentially cost-push in nature, which requires appropriate supply-side interventions from the government,” said Ser Percival K. Peña-Reyes, associate director at the Ateneo de Manila University Center for Economic Research and Development.

Global oil prices have been volatile in the recent weeks due to supply concerns arising from Russia’s invasion of Ukraine. Russia is the world’s second-biggest exporter of crude oil.

Latest data from the Department of Energy showed prices of gasoline, diesel, and kerosene increased by P20.35, P30.65, and P24.90 per liter since the start of the year.

Fuel retailers are expected to announce on Monday a hefty cut in pump prices, as global crude oil prices posted a weekly loss last Friday.

The Philippine economy is still below its pre-pandemic level, which strengthens the case for the BSP to stay on hold, analysts said.

“The economy will likely only return to its pre-pandemic level by the third quarter of 2022. As such, we believe that the central bank would only be comfortable to start tightening the monetary environment by the middle of the year,” Philippine National Bank economist Alvin Joseph A. Arogo said.   

He expects the BSP to announce a rate hike at its policy review meeting on June 23.

“I certainly think that economic growth should still be the BSP’s focus, largely because the economy is still operating well below potential. Indeed, this is one of the reasons why we expect the bank to remain on hold throughout this entire year, despite the wave of interest rate tightening sweeping the globe,” said Miguel Chanco, senior Asia Economist at Pantheon Macroeconomics.

The economy expanded by 5.6% in 2021 after shrinking by a record 9.6% in 2020. However, gross domestic product (GDP) remained below its pre-pandemic level and is only expected to regain this within this year.

BSP Governor Benjamin E. Diokno has earlier said they would first want to see at least four consecutive quarters of economic growth before assessing the need for a rate hike.

In the fourth quarter of 2021, GDP grew by 7.7% — a third straight quarter of growth.

Meanwhile, two economists believe that inflation risks caused by the surge in oil prices are enough reason for the BSP to start increasing interest rates by at least 25 basis points (bps) on Thursday.

“We anticipate an escalating rise in prices of practically all prices of commodities for this month and the month to come due to the uncertainties brought about by the Ukraine-Russia war. This will bring about economic uncertainties that will linger,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said.

“I think this will call for a slow hike [in interest rates]. The effects of oil prices on inflation need to be tempered by an appropriate monetary policy,” Asian Institute of Management economist John Paolo R. Rivera said.

Inflation remained steady at 3% for the second straight month in February. However, the central bank said inflation could go beyond their 2-4% target in the second quarter if oil price increases are sustained.

Some analysts said that while the BSP will likely keep rates on hold this week, a more aggressive tightening may come in the next few months given the inflation risks caused by the war in Ukraine. 

“We think the BSP will remain on hold this March 24, but should give stronger guidance on policy and the likelihood of an earlier-than-second half of 2022 policy action given that the window for monetary policy action may be narrowing with the current circumstances,” Security Bank Corp. Chief Economist Robert Dan J. Roces said.

He said the BSP’s current policy directive is similar to its stance of staying “behind the curve” when faster inflation was mostly caused by low supply.

“Clearly the key risk is the possibility that world commodity prices stay elevated for a prolonged period as a function of the Russia-Ukraine conflict, pressuring inflationary tendencies, and thus a preemptive hike may prove to be more and more prudent,” Mr. Roces said.

The US Federal Reserve’s policy tightening and its impact will also be another reason for an earlier rate hike, Makoto Tsuchiya, an economist at Oxford Economics said. For the first time since 2018, the Fed last week raised interest rates by 25 bps to quell a four-decade high inflation.

“High commodity prices are not only pushing up inflation but will also contribute to a larger current account deficit. With the US Fed set to raise rates by another 150-bp hike this year leading to a narrowing interest rate differential, we could see investors turn negative on Philippine assets, weakening the peso and putting pressure on the BSP to raise rates earlier,” he said.

Last week, Mr. Diokno said they do not necessarily need to move in tandem with the Fed, noting the BSP adjusts its policy setting only to the extent that external developments affect the outlook for growth and inflation.

The BSP chief also said they will wait until the second half of the year to start raising interest rates.

After Thursday, the Monetary Board’s next policy review is set on May 19. First-quarter GDP data will be released on May 12.

PHL banks’ Q4 loan growth fastest since Q1 2020

REUTERS
A Philippines peso note is seen in this picture illustration, June 2, 2017. — REUTERS

By Ana Olivia A. Tirona, Researcher

FOURTH-QUARTER lending by the Philippines’ biggest banks grew at the fastest pace since the start of the coronavirus disease 2019 (COVID-19) pandemic.

The latest edition of BusinessWorld’s quarterly banking report showed the aggregate loans of 46 universal and commercial banks (U/KBs) jumped by 5.93% year on year to P10.15 trillion in the fourth quarter, quicker than the 3.24% growth in the preceding quarter.

The latest performance reading marked the fastest in seven quarters, or since the year-on-year expansion of 9.73% recorded in the first three months of 2020.

Big banks’ asset growth eases; loans continue to grow in Q4 2021

Meanwhile, aggregate assets in the fourth quarter grew by 8.59% to P20.56 trillion, slower from the year-on-year growth of 8.97% in the third quarter of 2021 but quicker than the 5.59% seen in the same period in 2020.

The median return on equity (RoE), which is an indicator of profitability, slowed to 3.11% in the fourth quarter from the 3.36% in the preceding quarter and the 3.66% RoE in the fourth quarter of last year.

Bad loans, also known as nonperforming loans (NPLs), slipped by 7.11% to P371.65 billion in the October to December period, from P400.08 billion in the third quarter of 2021. Compared with the fourth quarter of 2020, NPLs grew by 20.34%.

This brought the NPL ratio, or the portion of bad loans to the total loan portfolio, to 3.95% in the fourth quarter, lower than the 4.49% in the preceding quarter. The NPL ratio was higher compared with 3.68% recorded in the final three months of 2020.

Loans are considered to be nonperforming once they are left unpaid at least 30 days beyond the due date. They pose a risk to the lenders’ asset quality as borrowers are likely to default on these debts.    

Likewise, the U/KBs’ nonperforming asset (NPA) ratio — or the NPLs and foreclosed properties in proportion to total assets — stood at 1.27%, lower than the previous quarter’s 1.43%, but higher than 1.17% in 2020.

Relative to total assets, foreclosed real and other properties stood at 0.25%, dipping from third quarter’s 0.26%. This was also slightly lower compared with the 0.28% posted in the fourth quarter of 2020.

Total loan loss reserves reached P341.23 billion during the period, smaller than the preceding quarter’s P353.53 billion but bigger than P322.57 billion in 2020.

Big banks’ median capital adequacy ratio — or the ability to absorb losses from risk-weighted assets — stood at 21.30%. This was higher than 20.80% in the third quarter of 2021 and 20.14% in the fourth quarter of 2020. Still, the ratio remained well above the regulatory minimum of 10% set by the BSP as well as the international minimum standard of 8%.

When comparing U/KB’s in terms of combined assets, BDO Unibank, Inc. remained the top bank with P3.560 trillion. It was followed by Land Bank of the Philippines (LANDBANK) with P2.922 trillion and Metropolitan Bank & Trust Co. (Metrobank) with P2.507 trillion.

Banks that had the most deposits were BDO (with P2.822 trillion), LANDBANK (P2.569 trillion), and Bank of the Philippine Islands (P1.957 trillion).

BDO had the biggest loans issued with P2.320 trillion, followed by Bank of the Philippine Islands and Metrobank with P1.471 trillion and P1.209 trillion, respectively.

Among U/KBs with assets of at least P100 billion, Rizal Commercial Banking Corp. posted the fastest year-on-year asset growth with 24.62%, followed by LANDBANK (23.51%) and Robinsons Bank Corp. (18.64%).

LANDBANK also posted the fastest loan growth during the period with 25.59%, followed by Hongkong & Shanghai Banking Corp. Ltd.’s 15.01% and Robinsons Bank Corp.’s 13.92%.   

BusinessWorld Research has been tracking the financial performance of the country’s largest banks on a quarterly basis since the late 1980s using banks’ published statements.   

The full version of BusinessWorld’s quarterly banking report will soon be available for download at www.bworldonline.com.

External debt hits a record $106.428 billion in 2021

JCOMP-FREEPIK

THE COUNTRY’S outstanding external debt reached a record high in 2021 as the government continued to ramp up borrowings amid the pandemic.

Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Friday night showed external debt as of end-2021 reached $106.428 billion.

It increased by 8.1% from the $98.488-billion level as of end-2020. It is also the biggest so far based on available BSP data which dates back to 1985.

“Year on year, the country’s debt stock rose by $7.9 billion brought about by net availments of $9.8 billion, mainly by the National Government and prior periods’ adjustments of $3.8 billion,” the BSP said in a statement.

The rise in external borrowings was partially offset by the increase in residents’ investment in offshore debt papers.

The external debt is equivalent to 27% of the Philippine gross domestic product (GDP). This is slightly lower than 27.2% debt-to-GDP ratio logged in 2020, which was the biggest in seven years or since the 27.6% in 2013.

“External debt-to-GDP ratio as of end-2021 eased amid the faster growth in GDP that led to a bigger base as the economy reopened further towards greater normalcy,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Philippine economy bounced back with a 5.6% growth in 2021 coming from the record 9.6% contraction in 2020.

Meanwhile, the debt-service ratio (DSR), which relates principal and interest payments to exports of goods and receipts from services and primary income, rose to 7.2% in 2021 from 6.7% in 2019 mainly due to higher payments.

The DSR is a gauge of adequacy of the country’s foreign exchange earnings in relation to meeting its maturing debt obligations.

External debt includes all types of borrowings by residents from non-residents.

Borrowings by the public sector slipped by 2% to $63.9 billion as of end-December from $65.2 billion as of end-September.

The bulk or $55.4 billion of public sector obligations were borrowings by the National Government, while the remaining $8.5 billion was made up of loans incurred by government-owned and -controlled corporations, government financial institutions and the BSP.

Meanwhile, private sector debt increased by 4.4% to $42.5 billion as of end-December from $40.7 billion as of end-September.

Japan ($14.6 billion), US ($3.8 billion), UK ($2.8 billion), and The Netherlands ($2.8 billion), were the top creditor countries last year.

Broken down, loans from multilateral and bilateral sources made up by 37% or the largest share of the external borrowings.

This was followed by borrowings in the form of bonds (34.7%) and obligations to foreign banks and other financial institutions (22.3%), while the rest (5.8%) were owed to other creditor types like suppliers and exporters.

Both the government and the private sector should gauge the risks that come from the weaker peso for decisions regarding external borrowings, Mr. Ricafort said.

“This would highlight the need for both the government and private sector to hedge foreign exchange risks for their respective borrowings, at the very least, to at least better manage risks inherent to foreign debt,” he said.

At its close of P52.335 per dollar on Friday, the peso has weakened by 2.6% from its P50.999 finish as of end-2021. As of end-2021, the peso weakened by 6.2% year on year.

For this year, the government set a budget deficit cap of P1.65 trillion which is equivalent to 7.7% of GDP.

National Treasurer Rosalia V. de Leon earlier said they expect 77% of debt will come from domestic borrowings. — Luz Wendy T. Noble

Toyota PHL has sold more than 2M vehicles

PHOTO FROM TOYOTA MOTOR PHILIPPINES CORP.

TOYOTA MOTOR Philippines Corp. (TMP), the country’s perennial “triple crown” winner (leading the auto industry in passenger, commercial, and total vehicle sales) recently revealed its attainment of two milestones. One is its 20th successive triple crown, notched in 2021; the other is its having sold two-million vehicles in cumulative sales since starting operations here in 1988.

Said TMP President Atsuhiro Okamoto in a release: “Surpassing the two-million mark would not be possible without the support of our loyal Toyota and Lexus customers, the commitment of our 73-strong Toyota dealer network, and of course the sense of ownership that every TMP team member has to our goal and responsibility of providing mobility for all. Thank you for making Philippines a Toyota country.”

He added, “As a way of thanking our loyal customers who are part of the two-million sales milestone, we promise that One Team Toyota PH, which is composed of TMP, our affiliates, and our entire dealer network, will continue working as one to provide the best possible ownership experience.”

TMP was established by Dr. George SK Ty through a “strong partnership” among GT Capital Holdings; Toyota Motor Corp.; and Mitsui & Co., Ltd. Over the past 34 years, the company has grown to become one of the top firms in the Philippines.

Today, it is one of the key manufacturers and distributors of Toyota in the Asia-Pacific region, making the Japan-headquartered car brand the leading auto marque in the Philippines for decades. At the end of 2021, it paced all firms in the sector, with a market share of 46.3%. This yearend market share is not only the highest in TMP history; it is also the highest in the ASEAN region.

“I would like to express my heartfelt gratitude to the generations of Toyota owners in the Philippines who have trusted and embraced the Toyota brand since TMP opened more than three decades ago,” remarked TMP Chairman Alfred Ty. “We are truly humbled that Filipinos have welcomed the Toyota brand as family, and we are grateful to be entrusted with the responsibility of helping the Philippines build a mobility-empowered society. Your continued trust and patronage inspire us to continuously improve and evolve our operations, so that we can help modernize mobility and contribute to nation-building.”

TMP currently operates the largest car manufacturing and assembly plant in the country to produce the best-selling Vios and Innova models. The company said that its operations contribute to the advancement of automotive manufacturing in the country, and provide livelihood to over 60,000 employees in the entire value chain. The Toyota group has invested a cumulative amount of P67 billion, and TMP achieved export sales totaling US$16.3 billion as of 2020.

The firm has also paid cumulative duties and taxes amounting to P426 billion as of the end of last year, and continues to hold programs in support of nation-building and the welfare of specific communities.

Since the start of its operations, TMP’s manufacturing plant has rolled out over 958,000 CKD units, producing some of the most iconic cars on the road — including the Crown, Corolla, Lite Ace, and Tamaraw. Today, TMP’s local manufacturing operations remain strong, selling over 35,000 Vios units (refer to graphic), the most of any passenger car, and more than 13,000 Innova units last year.

TMP said that what contributes to this preference of Filipinos for Toyota cars is the company’s promise of quality, durability, and reliability (QDR). But as both the market and customers’ requirements evolve, Mr. Okamoto said TMP is committed to lead in transforming the mobility landscape with a people-first approach.

“More than just selling cars, TMP is all about addressing people’s mobility needs,” he declared. “Through the years, we have been placing greater importance in improving customer service, value-chain offers, and overall Toyota ownership experience. We are assuring our customers that we are with them at every step of their customer journey, providing them flexibility, connectivity, convenience — all with the goal of producing mass happiness for all.”

Mr. Ty added that TMP’s attainment of its milestones also comes at the right time, as it is in the middle of a brand transformation initiative. “We are looking forward to a more exciting and promising future for our customers as we introduce more ways to move their world,” he concluded.

GRAPHICS BY SHERYL C. ALEGRE

Trendspotting in 2022: Crossovers (and electrification)

MG HS — PHOTO BY KAP MACEDA AGUILA

Bring on the segment breakers, and make sure they’re charged

THE “VELOCITY” section of BusinessWorld turns three today.

That’s a very young age in the overall scheme of things. Or is it?

A three-year-old smartphone is now ancient (at least as far as my children are concerned). A three-year-old car model is just about a year away from being replaced by an all-new model.

So, what has changed in the last three years, automotively speaking? And what can we expect in the coming three years?

The first and most glaring observation I would note is the car-buying public’s ever-growing appetite for crossovers. Filipinos can’t seem to get enough of this relatively new genre of automobile.

Just last week, I got to take a close look and quick drive of yet another new crossover, the MG HS. It’s the third crossover — in less than four years since the brand’s Philippine debut — from the now-Chinese-owned British automaker that used to make only sports cars. Now that is ancient history.

That MG HS will compete against crossovers from another Chinese brand, Geely (which now owns a British sports car brand, Lotus, as well Swedish luxury car brand, Volvo). Size-wise, the HS competes against the Geely Coolray; although price-wise, it actually faces off against the Geely Azkarra.

Both marques also market sedans, with Geely very recently bringing in its new Emgrand that’s priced like a subcompact but is actually sized more like a compact sedan. MG has been enjoying reasonable success with its good-looking MG 5 subcompact while the even better-looking MG 6 compact fastback sedan is seemingly overlooked in the mad rush for crossovers in the P1-million to P1.3-million price range.

Then there’s Chery, yet another Chinese brand that offers no less than four crossovers — five, if you consider that the phenomenally affordable entry-level model comes as two sub-models: the pre-face-lift Tiggo 2 and the face-lifted Tiggo 2 Pro. The Chery on top is the stunningly well-equipped Tiggo 7 Pro and Tiggo 8, which look and feel like bona fide European SUVs — minus the price tag.

Like its compatriots, Chery also has a sedan, the big difference being that the P1.9-million Chery Arrizo 5e is a pure electric vehicle, like a Tesla or a Porsche Taycan — but much cheaper. (More on electric cars in a bit.) But wait there’s more! GAC and Changan, together, add another six crossovers to the mix.

Of course, the Japanese, Korean, American, and European brands are unleashing their own crossovers like there’s no tomorrow.

In the space of the last three years, Toyota has crossed over its Corolla sedan into the car-based SUV world with the aptly named Corolla Cross. Toyota being Toyota, they also brought in the latest RAV4, which now comes as a hybrid, as well as the sensationally low-priced Raize.

Mitsubishi has its own Cross-surnamed model in the new Xpander Cross, while Mazda continues to turn heads and move ever-upmarket with its supremely refined CX series of crossovers in the CX-3, CX-30, CX-5, CX-8, and CX-9. Honda, meanwhile, is sticking to its guns with the now-venerable CR-V, HR-V, and BR-V.

The Koreans also have fresh entries in the affordable crossover genre, with Hyundai rolling out the Kona and Venue, and Kia unveiling the Seltos and Stonic to backstop its more established Sportage and Sorento siblings. Even Ssangyong is in the small crossover game with the Tivoli.

The Americans? Chevrolet just unveiled back-to-back crossovers in the Trailblazer and the Tracker while Ford has the fast-selling Territory and the pioneering Ecosport.

Europe? Peugeot has morphed the previous-generation hatchback-like 3008 and MPV-like 5008 into true-blue crossover-SUVs in the premium segment. Volkswagen, on the other hand, has opened the doors to its China operations to acquire more affordable models; hence the appearance of the T-Cross in lieu of the more expensive Europe-sourced Tiguan.

But it’s not just sedans crossing over into SUV body styles. You’ve got coupes, hatchbacks and even minivans morphing into the genre as well. Take a look at the fastback, coupe-like silhouettes of the Porsche Cayenne Coupe, the Audi e-tron and Q series Sportbacks, the Mercedes-Benz GLC and GLE Coupes, the BMW X4 and X6, and the Range Rover Evoque and Velar.

A hatchback that turns into an SUV? The Mini Cooper Countryman. Minivan to SUV? The all-new Kia Carnival. Regardless of size or price, it’s really safe to say that the car industry has got all your crossover/SUV needs covered.

What’s the next big trend? Electrification.

The local car industry seems to have gotten tired of waiting for the government to start developing infrastructure to support electric vehicle charging and are taking on the formidable job of educating the car-buying public and, of course, bringing in their own hybrid and pure-electric vehicles.

The leader here — no surprise — is Toyota. The Japanese giant and its luxury car brand Lexus have been bringing in self-charging hybrid models for roughly a decade now. And they currently have the most number of electrified models on offer with hybrid versions of the Corolla Altis, Corolla Cross, RAV 4, Camry, and of course, the exclusively hybrid Prius.

Amazingly, Lexus has an even higher number of self-charging hybrid models in the IS, ES, GS, and LS sedans as well as the NX and RX SUVs. Hyundai, too, has a self-charging hybrid in the Prius-like Ioniq.

For those who want to be able to plug in their hybrids to recharge at home or at the office, Mitsubishi last year launched the Outlander PHEV (plug-in hybrid electric vehicle) while luxury PHEV models have been introduced here by Volvo and Range Rover. Mild hybrids, meanwhile, are on offer from Mazda, Geely, and Range Rover.

Fully electric models are now locally available and are as varied in size and price as the P2.798-million Nissan Leaf, the aforementioned Chery Arrizo 5e, and the full BYD line on one hand, and the sensational Porsche Taycan, Audi e-tron, and Jaguar I-Pace on the other.

With driving ranges (on a full charge) reaching over 300 kilometers, it is conceivable to be able to use a purely electric vehicle every day going to and from work within Metro Manila for a week and recharging it every weekend. Or going straight up to Baguio and charging it once you arrive at the City of Pines. No need for roadside charging stations. And, more importantly, no cringing at the gas station every time you load up on P70 (or more) per liter of petrol.

But it’s not just the rising world oil prices that should force us to take a closer look at the inevitable future of automobiles. We need to catch up or be left behind. Whether we like them or not, electric cars are tomorrow’s cars. And that tomorrow could well be within the next three years. We should just be thankful that a lot of these electric cars come in our favorite flavor — as a crossover.

MG starts the HS story

Does the MG HS look reassuringly familiar? Of course it does. — PHOTO BY KAP MACEDA AGUILA

 

We can always use another crossover, and MG knows it, too.

IT’S APPARENT at first blush that the MG HS indeed is, well, an MG. And that’s good news for a lot of people who will recognize the front fascia of this recently released model as similar to the ZS — that best-selling crossover which basically put the storied MG (Morris Garages, if you’ve forgotten) on the map in the Philippines’ auto landscape.

The relative newcomer here which opened shop in October 2018 (after MG took away the franchise from the previous distributor) came with a portfolio of good-looking vehicles. Once under the aegis of The Covenant Car Company, Inc. (TCCCI), MG vehicles were finally given a fair shake as they contended in earnest in a very competitive industry.

The ZS, in particular, proved to be a success that underscored the arrival of MG onto the radar of car browsers. MG also helped to erode the longtime stigma of China-made vehicles by providing value-for-money, feature-rich models. It had become common knowledge that the British heritage brand was now owned by SAIC Motor, the largest auto firm listed on China’s A-share market. In 2020, the conglomerate which is involved with a myriad of brands, “sold 5.6 million finished vehicles, ranking first in China for the past 15 years”

Last year, despite the continued challenge of the pandemic, MG Philippines sold 6,343 vehicles — a 85% spike versus 2020. This is the best sales performance thus far for the company — bookended by movement of more than 2,000 units in the fourth quarter alone.

“MG Philippines entered 2021 with optimism and excitement, fueled by the strong reception of the market and the confidence of our dealer network for the MG brand and its model offers. We approached 2021 confident that MG, with its strong British heritage and superior product portfolio, would resonate with an even wider Filipino audience considering the increasing mobility requirements brought about by the current circumstances,” said TCCCI President and CEO Atty. Alberto B. Arcilla.

Pacing last year’s performance were the MG ZS crossover SUV (4,158 units sold) and MG 5 sedan (2,013 units) — growing by a hefty 117% and 85%, respectively. To further capitalize on the warm ZS reception (and further fend off competition), MG Philippines brought in the turbocharged MG ZST.

Now, MG Philippines is fielding another contender in the crossover segment — a model that kicks off its new introductions for the year. Speaking of which, there will be four to five more unveilings, according to Atty. Arcilla (check out our exclusive interview with him on S6/3). “The launch of the MG HS this first quarter of 2022 is likewise significant because this model headlines the arrival of other modern, global, MG vehicles that we intend to launch and reveal later on throughout the year. We, at MG Philippines, are primed for a very eventful 2022 and begin so with the HS — the vehicle that invites all to aim higher and make the elevated choice when considering a new car purchase,” he said in a statement.

If the HS shares more overt familiar ties with the ZS, if you didn’t know it, the RX5, on the other hand, is actually a rebadged Roewe — another name of note in Shanghai-headquartered SAIC’s mighty portfolio of brands.

Under the hood of the HS is a turbocharged gasoline mill with 1.5 liters of swept volume, capable of dishing out 169ps and 250Nm. The power plant is mated to a seven-speed twin-clutch sportronic transmission. In an interview with this writer, MG Philippines PR Manager Enrico Subido said that local testing under Alert Level 1 situations in the metro yielded 13kpl — certainly a welcome number, particularly during these times of skyrocketing fuel prices.

The HS is also well-equipped with a cache of driver assistive features such as a blind spot detection system, tire pressure monitoring system, EPS 3-mode adjustable steering, push start-stop functionality, an electronic parking brake with auto-hold, and a proprietary “Sport Mode” that allows for crisper steering and more dynamic response.

The exterior of the 2022 HS bears an athletic stance and sweeping curves, headlined by the brand’s Stardust Grille. The strakes on the clamshell bonnet lead the viewer to this centerpiece of the fascia. Flanking this are so-called Nine-Crystal Lighting units and LEDs. Adding a touch of premium is a sequential light functionality, which also appears on the taillights.

Michelin Primacy tires are fitted onto 18-inch diamond cut alloys — standard on both trims.

Speaking of which, there are two variants of the MG HS, available with a P100,000 discount for cash buyers until the end of April this year. The MG HS Alpha 1.5T costs P1,258,888 before discount; the MG HS Trophy 1.5T is listed at P1,308,888 (before discount).

Given its size and appointments, these prices are more than reasonable. Inside, the HS is blessed with lots of soft-touch surfaces and price-defying accoutrements. It gets well-bolstered MG Sport Bucket seats with six-way power control. An ergonomically designed dashboard promotes easy access, and huge screens — a 12.3-inch Virtual Driver Information Center and large 10.1-inch touchscreen infotainment system that plays nice with Apple CarPlay and Android Auto (which, it should be mentioned, is not a given these days, particularly with China brands). The HS also features a large panoramic Stargazer Sunroof. Another premium perk: The HS owner can adjust the color of the cabin’s lighting.

MG Philippines is even more confident about the HS as it has already been bestowed with accolades in markets where is has been launched — bagging multiple awards over the past couple of years “for premium features, and excellent value for money.” These honors include: “2021 Compact SUV of the Year,” OneShift by Carousell COTY Awards (Singapore), “2021 SUV of the Year,” SGCarMart COTY Awards (Singapore), and “2020 Car of the Year” and “Best Subcompact Crossover,” Middle East COTY Awards (Middle East).

The MG HS, as with other MGs here, is covered by a five-year/100,000-km warranty, and MG Hero Services (for 24/7 roadside assistance through the MG Philippines hotline). Owners can also download the My MG mobile app, which allows the easy scheduling of vehicle service appointments through smartphones. They can also use the app to book a visit from a Mobile Garage service caravan that provides MG owners with vehicle home service for major technical issues.

It seems MG Philippines is leading off with a sure bet to start its 2022 new model campaign; it’s anticipating to move 200 units of the HS a month. But we’re pretty excited about those other models the brand still has up its sleeve, too.

‘Island hoping’

An e-trike plies Boracay’s main road in front of D’Mall during the lockdown in 2021. — PHOTO BY TANYA LARA/BW FILE PHOTO

With PHL now open, can Boracay remain sustainable?

ONE OF the best things about daily living in Boracay is the e-trikes — they’re quiet, they don’t emit gas fumes or smoke, and they’re still a novelty for this city girl who moved to the island last year.

I remember the years before e-trikes, when the island’s main road was filled with drivers piling passengers on their noisy, gas-powered tricycles that they drove recklessly. Even during low season, the tricycles created pollution and chaos on the two-lane road between White Beach and Bulabog Beach.

It took 11 years and three local administrations — since e-trikes were first proposed in 2010 — for Boracay to complete the migration from gas to electric-powered, according to Malay Mayor Frolibar S. Bautista, whom we chatted with at the launching of PAL’s Hiraya Flight Pass. (Another quaint law here is that all private vehicles must be white; no other color is allowed.)

In the beginning, drivers and franchise owners opposed the move as electric tricycles cost more than twice the price of regular tricycles. “Inaway nila ako (They fought me),” Mr. Bautista says, adding that each franchise can have a maximum of two e-trikes.

Designed to transport up to eight people and charging a minimum of P20 per passenger, the e-trikes have become an island signature and a nod to its sustainability efforts. Note that Boracay followed El Nido in banning single-use plastics, though sari-sari stores and palengkes still use plastic bags to this day.

The country is now open to tourists and Boracay is back with a vengeance as we approach Easter. Hotels, restaurants and shops are open, White Beach is filled with tourists at sunset, and the island is alive with activities.

Hit by several pandemic shutdowns for two years, plus the 2018 closure, Boracay is now nearing pre-pandemic numbers. According to the Malay tourism office, arrivals reached 41,176 from March 1 to 9, with 40,374 domestic tourists, 445 foreign tourists, and 357 overseas Filipino workers. That’s an average of 4,575 arrivals for the first nine days of March.

February arrivals reached 80,882 and December 2021 recorded the highest numbers in two years with 113,596 arrivals. DoT Regional Director for Western Visayas Christine C. Mansinares shares that the programs and campaigns the Department of Tourism launched during the pandemic — such as bike tours and food crawls — are all designed to make the island sustainable.

It’s a delicate and never-ending balance between economy and environment as businesses are eager to recover their huge losses in the past years.

“During Boracay’s closure in 2018, we knew that it would reopen in six months. It was harder with the pandemic because we didn’t know when it would end,” she reveals. “We needed to do social preparation as well because local people’s mental health was severely affected from being jobless, and we tried to convince them that there was hope.”

Ms. Mansinares was the point person of embassies in the Philippines that were repatriating their nationals when the pandemic broke. “I was awake 24/7 during those days trying to locate their people and matching them with sweeper flights,” she narrates.

Ms. Mansinares adds that with everything Boracay has gone through, the private sector pulled together to promote new programs and campaigns. “One of the things we’re now promoting is wellness. We want tourists to see the island as a place where they can enhance their well-being. We also want to promote local food apart from our food crawl. It involves both tourism enterprises as well as the communities that produce it. It’s really inspiring to work with the communities, government and private sector — tulong-tulong (working together) to push for the recovery of the island.”

Malay Chief Tourism Officer Felix delos Santos says, “The rehabilitation in 2018 was really to make the island environmentally sustainable. Nakapahinga na ang isla (The island has had a break) from the closure and the pandemic, and during those periods there were a lot of realizations by business owners and residents on how to sustain the island. Plus, the Boracay Inter-Agency Task Force is still here to oversee the implementation of environmental laws.”

According to the DENR, the carrying capacity of Boracay is 6,405 arrivals a day. With an average of three days per stay, that’s about 19,500 tourists on any given day. Ms. Mansinares says Boracay has 12,000 rooms spread across more than 300 accommodation establishments.

Boracay may no longer be the party island it once was, when the parties were so wild you could hear the music all the way to the mainland, but it’s a better island now. Families love Boracay, remote workers have found homes in Boracay, and it moves to a slower pace that makes everyone appreciate its beauty even more.

Electromobility, please

A Porsche Taycan’s charging port — PHOTO BY KAP MACEDA AGUILA

The astronomical price of fuel should make us take a harder, more serious look at electrified vehicles

ON TOP of the awful humanitarian crisis ongoing in Ukraine because of the war with Russia, one other thing that has become blatantly obvious in the past few weeks is the heavy dependence of Western countries (and, therefore, developing countries, too) on gas and other fossil fuels in order to keep their economies running.

Combined with the complications of seemingly imminent climate change, it sometimes feels like we are all doomed to somehow succumb to Mother Earth’s revenge at one point or another. But that is all the more reason why we shouldn’t give up now. Clearly, we have no time to lose to continue weaning ourselves from fossil fuel dependence.

In the motoring realm, one of the most prominent moves is shifting the mass markets from internal combustion engine-powered vehicles to electric vehicles. And although we may not be moving forward as quickly as we really should (especially due to lack of governmental support), I must say that we have at least had small wins, even in a developing country like the Philippines.

As you may have noticed, more hybrid and electric vehicles have been trickling into our country. Toyota Motor Philippines has been making more aggressive efforts to popularize hybrid vehicles in the country, with its introduction of a string of (surprisingly) nicely priced hybrid-electric vehicles (on top of its long-known Prius model) such as its hybrid Altis back in 2020, the Camry hybrid, and the Corolla Cross hybrid. Meanwhile, Nissan Philippines has kept its promise to help democratize EVs in the Philippines by finally bringing in the awesome Nissan Leaf — the world’s first mass-market EV production vehicle. The Electric Vehicle Association of the Philippines (EVAP) has already forecast an annual growth rate of eight to 12% for EVs running on our domestic roads.

These tiny wins have actually come faster than I originally surmised — and to a modest amount of my delight. The Department of Energy (DoE) is already onto developing an electric vehicle road map that will form part of the Philippine Energy Plan. Basically, the idea is to build an entire ecosystem supportive of EVs — including charging infrastructure, waste disposal, and fiscal and non-fiscal incentives.

In the public transportation sector, there has also been an obvious rise in the availability and usage of e-tricycles, e-jeepneys and e-utility vehicles. The Department of Transportation’s Public Utility Vehicle Modernization Program has had a hand in expediting this — and I think it is another small win worth being happy about. As a matter of fact, they are not to be underestimated because it is these electric public vehicles that comprise the bulk of registered EVs running in the Philippines. So far, our EV personal vehicle market remains small — at about 1% of the total domestic EV market — and usually limited to upper-class buyers.

But hey, it’s still great to know that even high-powered luxury cars are already sold in their EV renditions here in the Philippines — we’ve seen it in the fairly recently launched Audi e-tron electric SUV (that offers about 300W/408hp of power) and in the Porsche Taycan EV, that also happens to enjoy the benefit of the country’s first ultra-fast DC charger, located at the Porsche Center Philippines along EDSA, Greenhills.

And well, at the end of the day, do our latest fuel prices per liter ever remind you of your grades from high school? Or perhaps they’ll only be reminiscent in the next price increase, maybe three weeks from now? It’s an amusing thought — but not so funny once you realize how much it now costs you to fill up your tank! So perhaps we can all agree that it’s high time for us to move ever more quickly towards embracing EV and all other renewable energy vehicle technologies. Let’s let our government know. After all, aren’t the national elections coming soon? Please vote wisely.