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PHL still on FATF’s ‘gray list’

THE LOGO of the Financial Action Task Force (FATF) is seen at the OECD headquarters in Paris, France, Oct. 18, 2019. — REUTERS

THE Financial Action Task Force (FATF) kept the Philippines on its “gray list” of jurisdictions subjected to increased monitoring for “dirty money” risks, urging the country to address deficiencies “as soon as possible.”

In a statement dated Feb. 24, the FATF said the Philippines should continue addressing its strategic deficiencies in combatting money laundering.

The Philippines had made a high-level political commitment to strengthen its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) initiatives in June 2021.

“The FATF notes the Philippines’ continued progress across its action plan, however all deadlines have now expired and work remains. The FATF encourages the Philippines to continue to implement its action plan to address the strategic deficiencies as soon as possible,” it added.   

According to the FATF, the country should demonstrate effective risk-based supervision of designated nonfinancial businesses and professions such as jewelry dealers, real estate brokers and developers, and service providers for financial businesses.

The Philippines should ensure that supervisors are using AML/CFT controls to mitigate risks related with casino junkets, the FATF said.   

The dirty money watchdog said the country should also enhance and streamline the access of law enforcement agencies to accurate and up-to-date information regarding beneficial ownership.

The Philippine government is currently reviewing proposed changes to the country’s Bank Secrecy Law, which is seen to help address money laundering and cybercrime incidents.   

The Paris-based FATF also said it will check if there is an increase in investigations and prosecutions related to money laundering cases, and the effectivity of the targeted financial sanctions framework for both terrorism financing and proliferation financing.

The Philippines will submit its next progress report to the FATF in May.

BSP Governor Felipe M. Medalla earlier said officials are now hoping that the Philippines will be removed from the FATF’s gray list by January 2024, after missing an earlier deadline.

The Philippines and 22 other countries remained in the FATF’s gray list, while Cambodia and Morocco were removed.

Meanwhile, North Korea, Iran, and Myanmar were countries in the FATF’s black list. — KBT

Mitsubishi Motors targets to expand market share

By Revin Mikhael D. Ochave, Reporter

MITSUBISHI Motors Philippines Corp. (MMPC) is eyeing a higher market share this year as the car manufacturer is banking on increased demand for its vehicles.

Jack S. Ramirez, Jr., MMPC first vice-president for sales and marketing, said the company is aiming for a 16% market share by the end of its fiscal year in March, and an 18% share by 2025.

“Our fiscal year is from April to March [of the following year]. We’re pushing hard in the remaining month to attain this. By 2025, we are eyeing 18% market share for MMPC,” he said in a chance interview on the sidelines of the company’s 60th anniversary at its Sta. Rosa, Laguna plant on Friday last week.

According to Mr. Ramirez, MMPC is aiming to sell 59,800 units in 2023, relying on its Xpander multipurpose vehicle and Mirage G4 subcompact sedan to boost sales and reach its target market share.

The Xpander accounts for 36% of overall sales while the G4 contributes 31%, he said.

“We’re looking at a total of 58,700 units sold but we are pushing it to 59,800 units sold because we see an increase in the demand. The market conditions are good. In terms of growth, I think it is 22% growth,” Mr. Ramirez said.

He said that there is still pent-up demand from consumers who opted not to purchase vehicles at the height of the coronavirus disease 2019 (COVID-19) pandemic.

“There are also other business sectors. We have seen a lot of increase in demand for business use. So, we’re also pushing the pickups and L300. These can be for cargo or passenger use,” Mr. Ramirez said.

Based on data from the Chamber of Automotive Manufacturers of the Philippines, Inc., MMPC had the second-highest sales among car manufacturers last year with a 15.09% market share equivalent to 53,211 units sold.

Meanwhile, Mr. Ramirez said that MMPC is urging the government to delay the proposed lifting of the excise tax exemption on pickup trucks if it pushes through.

He disclosed that MMPC’s Strada pickup model contributes roughly 15% to the company’s total sales.

“If the government can consider postponing the implementation of the excise tax on pickups until next year, that would be best for the automotive industry. We want to continue the good sales of the pickups in our market,” Mr. Ramirez said.

“The delay is to give time for the public to prepare,” he added.

Mr. Ramirez said that there would be a price increase of over P200,000 for pickup trucks if the government opts to impose excise taxes.

“Definitely, it would affect our pickup segment. The segment might suffer since it will be applied to all brands,” Mr. Ramirez said.

In November last year, the House of Representatives approved on third and final reading House Bill 4339 or the fourth package of the Comprehensive Tax Reform Package program, which calls for the removal of the excise tax exemption enjoyed by double cab pickup trucks.

Currently, double cab pickup trucks are exempted from excise tax under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Law in a bid to help small business owners and professionals.

The Finance department previously said that P52.6 billion in revenues will be generated until 2026 if pickup trucks are charged with an excise tax.

JG Summit businesses seen performing better amid full mobility

By Justine Irish D. Tabile, Reporter

GOKONGWEI-led JG Summit Holdings, Inc. expects its businesses to benefit from the full return of consumer mobility, the resumption of face-to-face classes and on-site work, and China’s reopening.

“I think we will have a better year this year primarily because the economy continues to grow,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei told BusinessWorld last week about his optimism for the company’s performance for 2023.

He said that the group’s airlines, tourism business and malls, which were affected by the coronavirus disease 2019 (COVID-19), are seen to recover “very strongly.”

“The businesses that suffered [from the pandemic] were benefiting from the economy and the return to mobility. This is the case for a lot of our businesses that were severely affected by COVID-19, particularly airlines, tourism and mall businesses. They are all coming back very strongly,” he added.

Meanwhile, Mr. Gokongwei welcomed the reopening of China as it will create opportunities for the group’s budget carrier Cebu Pacific.

“China’s the number two source of tourists to the Philippines and the number one source of growth, so naturally if China opens up then that will create opportunities for our airlines,” he said.

For its food business, Universal Robina Corp., Mr. Gokongwei said it has been recovering along with the resumption of in-person school and work.

“We will have full-year mobility, kids are back at school, they are getting their baon again, people are going back to work and they eat more,” he said.

“Our food business is mostly snacks and iced teas and coffee, so when people travel, have merienda, and socialize they consume these products,” he added.

Meanwhile, Mr. Gokongwei said the group sees the effects of inflation to taper off while it is still recovering its margins after the rise in the company’s input costs.

“I think the effects of inflation are beginning to ease. But of course, we still have a long way to go to recover our margins because we cannot pass through price increases as much as our input costs went up, but we view that inflation is beginning to subside this year,” he said.

Ayala Land aims to raise P60B via bond offering, bank loans

AYALA LAND, Inc. (ALI) is targeting to raise P60 billion this year through a bond offering and bank loans, its finance chief said, citing plans aimed at lowering the property developer’s financing costs.

“It’s gonna be a very busy year for us,” said Augusto Cesar D. Bengzon, the company’s chief finance officer, in an interview last week. “Approximately the number [that we will] raise is P60 billion.”

“P22 billion is incremental financing, P18 to P22 billion for maturities, which we will refinance, and there’s another P20 billion that is a little bit opportunistic, but we think we’re going to do it,” he said, citing a “term out” of short-term debt and a call on an outstanding bond.

“It looks like the terms that we could get will allow us to achieve lower costs,” he added.

Mr. Bengzon explained that the company plans to raise the funds through a P22-billion bond offering and through sourcing the balance from banks.

“So roughly P22 billion is going to be through a bond offering. We are already in talks with seven joint lead underwriters,” Mr. Bengzon said.

“The pricing and listing [will be] sometime in maybe mid-April to mid-May,” he added.

According to Mr. Bengzon, the P22 billion will be split between two tenors: five years and 10 years.

“How much goes to the five years and how much will go to the 10 years is something that we’re still discussing with our joint lead underwriters, [and will depend] on the appetite of the market,” he said.

The company is looking at coupon rates of anywhere from 6.2% to 6.9% for the five-year and 10-year bonds.

“For the balance of roughly P40 billion, we are already in talks with our creditor banks or relationship banks,” said Mr. Bengzon.

“For the balance of bilateral [loans], in our current discussions, we expect those to be priced fairly tightly,” he said.

ALI will be closing a 10-year facility for P5 billion, which could carry a 10-year fixed rate, while the balance of bilateral loans is expected to carry tenors between seven and 10 years.

“There’s quite a nice window for us to take on long-term fixed-rate debt. And we are following a rule of spreading out our maturities so that there’s no single year where we have an excessively large amount that we need to be financed,” Mr. Bengzon said.

According to Mr. Bengzon, the company is looking at spreading P25 billion to P30 billion maturities each year. — Justine Irish D. Tabile

See through

GALLOTTI BOLLE

Gallotti & Radice creates glass furniture with a difference

GLASS is one of the world’s most fascinating materials, enabling one to see through it, see it, and to see oneself in it. Glass is also the backbone of Gallotti & Radice, an Italian furniture brand.

During the opening of their BGC showroom on Feb. 20, Silvia Gallotti, daughter of co-founder Pierangelo Gallotti and present CEO, showed off various things the company has made in glass. There’s a tray with a golden mirror showing one’s face as if one were to go around with a flash of sunlight, spherical lamps of blown glass, and a sideboard made entirely of glass — but with a wooden finish.

Glass at home is now common, but during the 1950s, when the company was first started, glass furniture had been a novelty. Ms. Gallotti believes that her father created the first all-glass table in 1968. “It was new and innovative at the beginning,” she said. “They were different, presenting this material in furniture design. But then, glass became more popular and cheap because of the Chinese proposals and very cheap alternatives.”

Glass is still on the table for them, but with finishes exclusive to them, they eliminated the usual look for glass and created something completely new. “To still be glass, but to present it in another way. To dress it up with different clothes,” said Ms. Gallotti. For example, a collaboration with artist Simon Berger was created with sheets of broken glass, smashed strategically in places to form a picture.

“It allows you to have very thin surfaces,” she said on the advantages of working with the material.

The company first saw life in 1955, engraving glass for other customers. Mr. Gallotti and his partner, Luigi Radice, then decided to create their own glass furniture. “We evolved during that time. We evolved from a brand that was focused on glass only to a brand that today is focused on total living,” she said. As she said this, we had been looking at the Audrey sofa, made with soft cushions and a soft, rounded shape.

Galloti & Radice comes from the tradition of mid-century design, a look that has seen its renaissance. “Creativity after the war,” she said about the causes of this golden age of modern design. “Not only in Italy. We had a lot of renaissances in that time. Creativity and passion. They created everything from zero.”

Italy is considered one of the world’s design capitals, seen in its furniture, clothes, and architecture. “It’s creativity that I think belongs to the DNA of the people there,” she said. “It’s a concentration of knowledge, and heritage.”

Gallotti & Radice is distributed in the Philippines through Living Innovations Corp., with a showroom in Fort Victoria in BGC, Taguig. — Joseph L. Garcia

Metro Pacific allots P282.5M to improve systems in tollways

PHILIPPINE STAR/ MICHAEL VARCAS

A UNIT of Pangilinan-led Metro Pacific Tollways Corp. (MPTC) is setting aside P282.5 million to enhance its electronic toll collection and traffic management systems.

In a press release, MPTC’s subsidiary NLEX Corp. said that the project includes the upgrade of various servers and the installation of new radio frequency identification (RFID) antennas and speed cameras.

“[This] aims to enhance the processing of toll plaza transactions and implementation of traffic regulations,” the company said.

In particular, the company is equipping new antennas that can help to facilitate more efficient RFID transactions in 80 toll lanes, while it will be equipping four-speed cameras in Tarlac- and Subic-bound portions of the Subic–Clark–Tarlac Expressway (SCTEX).

The new speed cameras are seen to help traffic officers in getting real-time data to flag down those who will go beyond the maximum speed limits or 80 kilometers per hour for trucks and buses and 100 kph for cars and sport utility vehicles.

Meanwhile, the company said it will be upgrading several servers at North Luzon Expressway-SCTEX for “improved performance and reliability.”

In 2022, the company upgraded close to 150 toll fare indicators, lane status indicators, traffic control gates, automatic vehicle classification devices, and loop detectors.

“These enhancements are part of the company’s thrust in providing safer and more convenient journeys along with the drive for continuous innovation and customer service excellence,” NLEX Corp. President and General Manager Jose Luigi L. Bautista said.

MPTC is the tollways unit of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile

Milan Fashion Week: Gucci revisits past to pave new way, sober looks at Tod’s, blooming flowers at Prada

ALBERTA FERRETTI — ALBERTAFERRETTI.COM

MILAN — Italian luxury label Gucci drew from its past to present an eclectic mix of looks at its womenswear show at Milan Fashion Week on Friday, paving the way for the next chapter as it awaits its new creative director.

The brand’s creative team revisited Gucci’s glamorous and colorful looks of the 1990s, 2000s, and 2010s — nodding to silhouettes and creations by past designers like Tom Ford and Frida Giannini. (See the show here: GUCCI Fall Winter 2023 Women’s Collection Fashion Show | GUCCI® )

Gucci parted ways with its star designer Alessandro Michele last November as sales lagged competitors, and the prized brand of French luxury group Kering will welcome its new creative director, Sabato De Sarno, later this year.

A model wearing a tiny metallic bikini top, long black satin pencil skirt and gloves opened the show. Androgynous trouser suits followed as did plenty of faux fur coats in lilac, blue, fuchsia, and yellow. There were furry lapels, oversized knits, footwear, and bags. One coat dazzled with sparkling silver fringes.

“The Gucci Fall Winter 2023 Women’s Collection connects the creative cultures that cross-pollinate the history of the House in an evocative but contemporary proposal,” show notes read.

“A free expression founded in collective memories that blur the lines of time, it is an illustration of the beating heart of Gucci: the ecosystem of designers and artisans whose shared understanding of the House has passed down and evolved from creative to creative for over a century.”

Slim trousers were slit at the bottom front while bustier dresses had exaggerated sides. One model wore a crumpled shirt tucked into a miniskirt, others were dressed in coats with voluminous shoulders.

There were plenty of see-through designs: white embroidered sheer shirts and skirts and black transparent dresses.

Tights were red, orange, lime and pale blue. There were new offerings of the Gucci loafer and the brand’s famed handbags.

At the end of the show, Gucci’s creative team came out to loud applause. Mr. De Sarno will present his first collection for Gucci in September.

TOD’S
At Tod’s, creative director Walter Chiapponi offered a sober collection in earthy tones that played with tailoring. (See show here: Women’s Looks – Autumn-Winter 2023/2024 Collection | Tod’s (tods.com) )

Models wore pea coats as well as long oversized coats, and also appeared in parkas and cropped aviator and elongated bomber jackets. Zipped ribbed tops had leather detailing while round-collared shirts had slightly voluminous shoulders.

Dresses were belted or had draped shoulders.

Called “Italian Feeling,” the collection came in hues of brown, dark green, camel, and cream. Mr. Chiapponi ended the show with several pinstripe looks.

“The idea was to go back to sobriety, with a certain rigidity in the construction,” Mr. Chiapponi told reporters.

“In a way it’s a very masculine show. The feminine touches are the skirts, embroideries… high heels.”

PRADA
Florals bloomed on skirts, shoes, and from the ceiling at Italian designer label Prada’s Milan Fashion Week show.

Designers Miuccia Prada and Raf Simons turned wedding dresses into everyday looks, opening their autumn/winter 2023-24 catwalk presentation with a range of long and short white skirts embellished with white flowers and paired with knits. (Watch the show here: FW 2023 Womenswear | PRADA )

Utility suits became long shirt dresses with trains, while large boxy jackets were matched with slim ankle-length trousers in mainly dark shades.

Models wore shirts with stick-out shoulders, knits and jackets with colorful inside collars, and pastel-colored cigarette trousers paired with ribbed tops.

Kitten heels in a range of colors bore cut out floral patterns.

The collection also featured white puffer and dark asymmetrical miniskirts, colorful printed dresses, buttoned capes and a range of duffel coats.

Last month, the Hong Kong-listed fashion group 1913.F said it had appointed a new chief executive, Andrea Guerra, taking the place of Patrizio Bertelli and Miuccia Prada and easing a transition to the next generation of the founding family.

FENDI, ALBERTA FERRETTI
Milan kicked off its leg of the month-long catwalk calendar with Italian luxury labels Fendi deconstructing masculine tailoring and Alberta Ferretti opting for dark colors at their womenswear fashion shows.

At Fendi, designer Kim Jones added pleated skirt aprons and trains to tailored trouser suits as well as shoulder-baring sleeves to waistcoats. (Watch the show here: Women’s Fall/Winter 2023-24 Fashion Show (fendi.com) )

There were also boiler suits with skirts, slashed knits with halternecks, draped and ribbed dresses as well as Mac coats adorned with sparkling sequined lining.

In show notes, Jones said he was inspired by the way jewelry designer Delfina Delettrez Fendi wore her family label’s archive items. Mr. Jones works alongside Delettrez’s mother and the founding family’s scion Silvia Venturini Fendi, who looks after menswear and accessories at the Rome-based label.

“It’s deconstructed but luxurious. There’s a little nod to punk and my admiration for DIY, but moved on towards something chic,” Mr. Jones said in the notes.

“The first day that Delfina walked into work, she was wearing blue and brown and I thought she looked so great. There’s a chicness but perversity to the way she twists Fendi, which is what I love.”

Mr. Jones’ color palette mainly stuck to pale blue, greys, cream, brown, and black. He added dabs of bright colors with pink and orange dresses.

Accessories included thigh-high boots, a trend also seen at Alberta Ferretti, who opened her show with a strapless grey gown. (See the show here: Alberta Ferretti Boutique Online Ufficiale )

Further grey looks, often paired with long shiny black gloves, followed — from trousers suits to short dresses.

Models wore long velvet gowns, checked or corduroy suits, belted coats and jackets as well as sheer sparkling dresses.

Ms. Ferretti used mainly dark colors — burgundy, black, and brown with bursts of red on some outfits.

Evening looks were all black: sparkling jackets, sheer dresses as well as matched tops and skirts.

Milan Fashion Week wraps up on Feb. 27. — Reuters

Alternergy secures offshore wind service contracts for Tablas Strait project

ALTERNERGY Holdings Corp. through its unit has secured offshore wind service contracts for exclusive rights to explore, develop, and utilize wind resources in Tablas Strait.

In a media release, Knud Hedeager, chief executive officer of Alternergy unit Pililla AVPC Corp., said the service contracts for the offshore wind power projects “were subjected to rigid technical, legal and financial review by the DoE (Department of Energy) since July 2022.”

The renewable energy company said it was awarded three separate wind energy service contracts for the Tablas Strait wind projects which cover about 120,000 hectares.

Mr. Hedeager said Tablas Strait, which separates the provinces of Oriental Mindoro and Antique, is suitable for offshore wind development as identified by a World Bank study.

“Our Tablas Strait Offshore Wind power projects are located in one of the zones identified by a World Bank study that is most suited to offshore wind development. We look forward to proceeding with the pre-development activities particularly technical studies and resource assessment,” he said.

To date, Pililla AVPC has secured four wind energy service contracts. In 2022, it secured a service contract for Calavite Passage in Occidental Mindoro.

Last year, Alternergy announced its partnership with Shell Overseas Investment B.V. to explore the offshore wind potential in Calavite Passage.

“Shell will bring in its global track record, supply chain access, and technical expertise in developing large-scale bottom-fixed and floating offshore wind projects,” Alternergy said.

The renewable energy company aims to develop up to 1,370 megawatts of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower projects. — Ashley Erika O. Jose

Meralco moves to secure emergency power supply deal

MANILA ELECTRIC Co. (Meralco) said it is working on securing a power supply contract after its deal with GNPower Dinginin Ltd. Co. (GNPD) ended on Feb. 25, forcing it to buy from the electricity spot market.

In a Viber message, a representative of Meralco said that it aims to secure another emergency power supply agreement (EPSA). Its previous emergency deal for 300 megawatts (MW) with Aboitiz Power Corp.’s GNPD ran from Feb. 3 to 25. It was the second time that the power distributor forged an EPSA with the power generation company.

Last year, Meralco secured an EPSA with AboitizPower for P5.96 per kilowatt-hour (kWh) from Dec. 15, 2022 until Jan. 25, 2023. Its EPSA with GNPD for most of February was not a fixed-rate contract.

Meralco said that it is in a constant effort to secure contracts to partly cover its 670-MW deal with a unit of SMC Global Power Holdings Corp. that remains suspended.

Its move to secure an EPSA came after its power deal with South Premiere Power Corp. (SPPC), the administrator of the gas-fired power plant in Ilijan, Batangas, was subjected to a writ of preliminary injunction issued by the Court of Appeals.

The 670-MW capacity is supposed to be covered by Meralco’s power supply agreement (PSA) with SPPC, which was agreed upon in 2019 for a period of 10 years at P4.2455 per kWh. However, the deal was indefinitely suspended after the injunction issued by the appellate court in January.

Last year, SMC Global Power sought a temporary rate increase, jointly filed with Meralco, saying that SPPC and another unit San Miguel Energy Corp. incurred a combined loss of P15 billion. The rate increase was meant to recover part or P5 billion of the units’ losses.

The company cited a “change in circumstance” when surging fuel costs breached the price range contemplated during the execution of the contracts with Meralco. However, the Energy Regulatory Commission denied the petition, saying this had no basis as the PSA is a fixed-rate contract.

The power distributor earlier said that it maintains its position that preserving the PSA is in the best interest of its consumers as this would protect them from potentially higher electricity rates.

Meanwhile, grid operator National Grid Corp. of the Philippines (NGCP) has warned of a thin power supply this summer due to increasing demand this year.

The Department of Energy (DoE) has earlier projected that the Luzon power grid is likely to experience deficient reserves, which may result in 12 yellow alerts, a warning on thinning power buffers.

The DoE said that the Luzon grid is expected to experience a peak demand of 13,125 MW in May.

For the Visayas power grid, peak demand is seen at 2,691 MW in September, and for the Mindanao power grid, the peak is expected at 2,395 MW in June.

“Thin operating margins (power in excess of demand) from where ancillary services (power used to manage and balance the grid) are taken, are forecasted for this year,” NGCP said in a media release.

For the Luzon power grid, the power transmission operator said that the months of April to June are expected to experience thin operating margins. A surge in power demand is expected to happen in summer due to higher temperatures.

“While base case projections show no occurrence of yellow or red alerts, there are weeks between March and April where operating margins are below required levels due to higher demand and planned outages of plants,” NGCP said.

“NGCP coordinates with the generation and distribution sectors to optimize and rationalize maintenance schedules to ensure sufficiency, at least on paper, of power supply throughout the year,” it added.

NGCP noted that unplanned shutdowns outside the grid operating and maintenance program might have an impact on the supply-demand situation.

The grid operator has asked policy makers to explore demand-side management to prevent threats of power shortages.

The DoE has earlier said that red alerts that lead to rotating brownouts are unlikely to happen unless a power plant with a capacity of about 100-200 MW would experience a forced outage.

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

Mini Cooper S 3-Door: Fun size, no compromise

Small and lovable: The Mini Cooper S Three-Door is a solid performer that stays the truest to the tenets of the brand. — PHOTO BY KAP MACEDA AGUILA

Counterintuition wins

WHILE FILIPINOS, as with many vehicle owners and browsers around the world, are ardent fans of SUVs and MPVs, we apparently have a soft spot for a brand not exactly renowned for space, known as among the main virtues of the aforementioned categories.

This was confirmed by Kidd Yam, who heads the Mini Asia regional office located in Singapore. “(The Philippines) is one of our key markets, and registered one of the highest sales in the region — with close to 31% growth,” he recently said to members of the media gathered at the flagship Mini BGC dealership in Taguig. The absolute figures may not be earth-shattering (130 units moved in 2020, 152 in 2021, and 204 last year — per the Philippine Automotive Dealers Association), but these are encouraging ones — particularly since Minis are neither high-volume nor affordable movers.

And, no surprise too, that Mini owners usually have another vehicle tucked in the garage — typically the “more practical” (read: bigger) ride for the trip to the grocery or for the family outing.

“Mini has always been known for its iconic three-door hatch design. Not many people in the market are aware of the fact that we have a Mini Clubman with six doors, or the Mini Countryman — a full-size SUV. It’s about communicating more effectively to a broader audience that we do have these, but we’ve already seen some success especially in the last two years — with the impressive growth of the Mini Countryman particularly in the Philippines,” continued Mr. Yam.

Yes, the Countryman or Clubman can be that compromise if you want to have your Mini cake and eat it, too. But if you want to experience what the brand is really about, nowhere can the breadth of Mini values be fully felt than in its smallest form factor: the Mini Cooper Three-Door.

Last week, I was reacquainted with just that: the S variant of the model that has, to be honest, steadily grown in size over the generations while truly remaining a staunch and stubborn exemplar of Mini.

Gorgeous in British Racing Green (with racing stripes straddling its bonnet), this Mini Cooper (as an S variant) has a standard piano black exterior touches — with the door handles, side scuttles, and fuel cap finished in black. This design ethos of ditching the traditional chrome extends to the Mini logos on the hood and luggage compartment lid, model lettering and tailpipes, and even surrounds of the headlights, radiator grille, and rear lights — which feature the signature Union Jack design. Even its huge six-spoke, 18-inch wheels are finished in black.

“With the current model revision, the Mini has reached a level of maturity that makes it more exceptional in the small car segment with regard to design, product substance and premium quality, than ever before,” declared Mini Brand Head Bernd Körber in a release. “The Mini is the original that stands out from the crowd and it continues to reinvent itself again and again.”

Lest you misinterpret “maturity,” let me just say that being mature also means knowing how (and when) to have fun. Mini, of course, has veritably owned “fun” — reflected in spirited performance, an exhilarating go-kart-like handling, and an innate ability to make people take notice. But I’m getting ahead of myself.

We start with its vital stats. This Mini measures only 3,876-mm long, 1,727-mm wide, 1,414-mm tall, and bears a wheelbase stretching but 2,495mm. Positioned as a four-seater, there’s an asterisk for the two rear seats because these will only take in smaller passengers. But the correct way to think of this Mini Cooper is as a two-seater with two cargo holds, methinks. And if you drop the rear seatbacks you get a total of 731 liters of space. Not bad.

And getting into the front seats is a lot easier than you’d think — certainly the case if you compare the Mini with full-on sports cars. Part of this is explained by a respectable ground clearance of 143mm. Speaking of the front seats, the Cooper gets firm, well-bolstered ones that keep you and your passenger in place even if you take curves at speed.

Why, pray tell? Well, you’ll be sorely tempted to push this car — because you can, and it welcomes the demand. Despite its diminutive size, the Cooper S boasts a 2.0-liter, four-cylinder Mini Twin Power Turbo mill that blurts out 192 horses (from 5,000rpm to 6,000rpm) and 280Nm (1,350rpm to 4,200 rpm). You can extract performance through a seven-speed dual clutch sports transmission. Three driving modes are available: Green, Mid, and Sport — and these correspond to the readiness of the engine to rev up and push forward. Throughout some 200 kilometers that I drove it, I largely left the setting on “Mid,” and mixed-situation motoring yielded a thirst rate of around 11 kilometers per liter. Not bad — considering I frequently gave in to the temptation of pushing the Cooper S. See that space right there on the highway? Vroom. Yup, we’re there.

And when you push the Mini, it’s a gift that keeps on giving. At speed, the vehicle is surprisingly stable and unperturbed.

By nature, the Mini scrimps on space, but little else. The accoutrements within are fit for a premium vehicle, and here is where you’ll see more of the brand’s affinity with BMW — which acquired it in 1994.

The gear shifter is much like the one found on its German sibling, and the level of clarity and quality of execution on its all-digital instrumentation, and infotainment screen — as well as the knob and switches which help you navigate them — call to mind BMW’s as well. The instrument cluster — housed in a five-inch-diameter oval — is still affixed to the steering column, which helps to keep its visibility consistent regardless of the positioning of the tiller.

The choice of materials within also reflects the more premium price point (shell out P3.15 million for the Cooper S Three-Door), and the ethos again eschews shiny chrome in favor of black accents. Air vents surrounding the central infotainment system have been redesigned, and are flush with the interior surface. The dash design now also crosses the entire width of the instrument panel into the driver’s area.

The trademark circular element in the center console houses the infotainment system, expressed through an 8.8-inch color touchscreen display, with touch-sensitive favorite buttons and piano black high-gloss surfaces. The LED light ring now bears laser engraving, and complements the perception/enjoyment of various functions ranging from the volume of the audio to air-conditioning setting and others. A more advanced and polished-looking graphics display is highlighted by “live widgets,” wireless/wired Apple CarPlay, and a sundry of niceties.

Meanwhile, Driving Assistant with Lane Departure Warning is fitted as standard. The feature, among other things, provides a camera-based speed and distance control, and gives a perceptible vibration in the steering wheel when you unknowingly stray past the markers of your lane.

Countryman and Clubman aside, I can see why people would opt for the smaller Mini at a time when more is, simply put, more. The raison d’être for the Mini Cooper S is simple: It exists to make you, your passenger, and the people who see it, smile. To be sure, you can’t find too many things in this world which distill and capture so much fun in such a compact package.

Forget conventional wisdom. Go small or go home.

How e-wallets bridge the gap between banks and ‘boomers’

FREEPIK

By Ana Olivia A. Tirona, Researcher

WILFRIDO T. GONZALES, a 74-year-old retiree, has no intention of using an electronic wallet (e-wallet) and is strongly against it. However, physically queuing and traveling to places have become quite a challenge for his day and age.

“I don’t use e-wallets or any online financial apps. I don’t intend to use them either. I still go to the bank and line up in bayad centers to pay bills. However tiresome it can be at my age, at least I know that the money is directly handed to the receiver,” Mr. Gonzales said in an interview with BusinessWorld.

However, in the case of 60-year-old interior designer Marite D. Medez, e-wallets have become a game changer for her.

“I only started using e-wallets because I needed them for one of my businesses back in 2022,” Ms. Medez said in a separate interview.

“I didn’t like the idea of using an e-wallet at first. And then one day, I had about 10 customers paying through e-wallets and only my staff had an account at the time. Until I had the app myself, I didn’t need to rely on anything else like going to the bank or cashing cheques,” she said.

The potential of Filipino senior citizens in the digitalization of financial services is often left unnoticed. However, specific barriers exist in e-wallet applications that the untapped segment could overcome and could further the central bank’s goal of digital financial inclusion.

In the Bangko Sentral ng Pilipinas’ (BSP) National Strategy for Financial Inclusion (NSFI) 2022-2028, the underserved and unserved segments of the country are part of the financially excluded persons that it targets to accommodate in their seven-year plan.

“Senior citizens, just like other underserved sectors, are also afforded the financial inclusion benefits from the priority initiatives of the NSFI, including digital finance,” the BSP said in an e-mail interview.

“In fact, one of the four strategic objectives identified in the NSFI is to promote inclusive digital finance as it enables cost efficiencies and innovations that improve the customer experience, affordability, availability, and personalization of welfare-enhancing financial products and services,” it added.

In the 2021 Financial Inclusion Survey (FIS), it was estimated that there are 5.4 million senior citizens. The share of senior citizens that own a smartphone more than tripled to 39% in 2021 from 12% in 2019. Similarly, the elderly population that has access to the internet rose to 26% in 2021 from 8% previously.

Those that hold an electronic money (e-money) account reached 11% of the senior citizens. They remain to be the smallest age group that utilizes e-money, next to those who are 50 to 59 years old (21% share).

Of the Filipino elderly, only 37% have a savings account in 2021 and about 54% of their pension payouts were received through an account. Moreover, 80% of Filipino seniors still made transaction payments as of 2021.

AGE IS JUST A NUMBER
In the research paper titled “Younger Persons are More Likely to Adopt the Mobile Wallet than Older Persons, or are they? The Moderating Role of Age” (2015) by Norman Shaw, the hypothesis that age as a moderator in terms of adopting to e-wallets was proven otherwise.

Results showed that the intention of use was slightly different between the younger generation and the senior citizens, but the age difference was not significant.

Despite this, there is still a gap between the elderly and the digital experience. Both Ms. Medez and Mr. Gonzales face constant struggles in the digital age.

“How to use it at first was the hardest part. I didn’t know what I was doing. It’s still very convenient in my opinion, I pay off all my bills through e-wallets,” Ms. Medez said.

For Mr. Gonzales, he uses his smartphone as his source of daily news, entertainment, and communication.

“I already have difficulty understanding some of the icons and features in my own iPhone, what more with an e-wallet,” he said.

The common ground for both these pain points is the digital experience that could be constantly improved. Thus, user experience (UX) and user interface (UI) are essential ingredients to creating a holistic service for these senior citizens.

UX is the design process developers use to create smooth and purpose-driven software. UI, on the other hand, is the process of creating a pleasurable and easy-on-the-eyes look for a specific application.

Fulltime UX designer Jed C. Cordova points out that a good e-wallet experience depends on the target demographic. His experience involved developing an e-wallet catered to sea-based workers for the smooth transaction of money without the need of stepping foot on shore.

“In my experience, based on the sample of seafarers, we also covered senior citizens as part of the demographic. Most of them are above 60 years old. But even those who are in their mid-50s, most of them are very resistant to e-wallets,” he said in a Zoom interview.

“Simply because they don’t want to learn. That’s the main pain point we have gathered,” he added.

In the design perspective, AIRR Labbs Digital Designer Leila A. Alibudbud emphasizes the importance of a good interface for e-wallets.

“If it’s easy to figure out where things are, that to me is a good interface,” she said in a separate Zoom interview.

An app with a good interface “has icons that are easily understandable and you know what the icons mean at first glance without having to look at the text underneath it. It uses readable font and font size that is readable. Mostly, the little details that go into design still have a huge impact.”

THE MIDDLEMEN
The central bank strives for a “bigger” digital payments ecosystem. With that, BSP supports all initiatives for the advancement of digital infrastructures.

“The BSP also continually broadens its financial literacy and consumer protection programs that cater to the needs of the different segments and age groups of the unbanked,” BSP said.

Likewise, initiatives that are supported by the central bank include digital financial literacy programs and implementation of the consumer protection regulatory framework.

Also, the BSP pushes to collaborate with relevant stakeholders to “develop innovative payment channels that can cater to the needs of senior citizens.” Examples of which are the electronic distribution of pension and social aid through PESONet and InstaPay, the central bank’s regulated electronic fund transfer channels.

Stepping up to the ideal e-wallet experience is G-Xchange, Inc. which offers GCash, and is a subsidiary of Globe Fintech Innovations, Inc. The e-wallet application is also one of BSP’s regulated electronic money issuers (EMI).

GCash Head of Digital Experience Michelle S. Fernandez said the company strives to continuously improve the app while maintaining inclusivity for all 72 million of its users.

“Not everyone is tech-savvy. Not everyone knows how to navigate complex apps. We have to make sure it’s really understandable and friendly to all kasi GCash nga para sa lahat,” she said in a Zoom interview.

For first-time downloaders, GCash ensures that users are familiar with the interface through an onboarding step-by-step process of what the app is and its features. To upskill the digital literacy of those new to the app, video tutorials are also available on their website for ease of use.

Most notably, Ms. Fernandez acknowledges the pain points that exist among senior citizens toward e-wallet usage.

“We do know that [e-wallets] are something that they actually need more. They shouldn’t be going out too much, or exposed to physical cash as it can be a health concern and it can be unhygienic. So, [senior citizens] should be the ones to avail of this service more for their own convenience. We really do consider that when we do our designs. My mom is my main use case because I get a lot of design insights from her,” she said.

GCash started as a Globe Telecom, Inc.’s money transfer service via SMS in 2006. It then transitioned to an app in 2016.

“GCat (the cat mascot of GCash) was still very prominent. The icons were very thin, and fonts were smaller. There was a little bit of a rebrand in 2020. But then, it was really [in 2022] that we changed about 60% of the app visually. A bit of the experience changed as well,” Ms. Fernandez said.

Considering feedback from senior citizens, the GCash team ensures that everyone is included and accessible to the e-wallet service.

“We were actually resizing our fonts and our icons real time as we were speaking with the senior citizens. So, we would check, “How about this? Is this font or icon size okay?” and they would say “Lakihan mo pa (Make it larger).” And, real-time, we would enlarge the font size. Then they would react “okay, tama na ’yan. Nababasa ko na ’yan (that’s good, I can read it already),” Ms. Fernandez added.

Other than the visual and functional aspects of the app’s features, GCash also includes those with physical challenges.

“We also consider the mobility and reachability aside from just the size and color contrast. Some people are colorblind. So that means they won’t be able to tell the difference between some of the shades we use. That’s why we have more contrast. And again, maybe that’s not the most modern way of designing, but it’s a more considerate way of designing,” Ms. Fernandez said.

Thus, it is considerate to understand the target market’s needs. Regardless of age, it all boils down to how the needs for the service can be provided in a simple and all-accepting way.

“Generation Z (those born between 1997 and 2012) are more prone to be able to adapt to changes. But as you get older, you just want to stick to what you know. And you don’t want to be so inconvenienced about relearning things,” Ms. Fernandez said.

“It is our job to adjust for them.”

PSE to host listing sessions for IPO-ready companies

BW FILE PHOTO

PHILIPPINE Stock Exchange, Inc (PSE) has moved to equip companies with the necessary resources ahead of a potential application for an initial public offering (IPO).

On March 2, PSE is set to host its inaugural Learn IPO Strategies and Tactics (LIST) masterclass exclusively for companies under its Listing Engagement and Assistance Program (LEAP). The training will be conducted in small groups throughout the year.

“PSE LIST was designed for companies that may start the paperwork on their listing applications anytime. We want the officers of these companies to be better equipped during the IPO application process by getting pertinent information directly from the regulators,” Ramon S. Monzon, PSE president and chief executive officer (CEO), said in a press release.

Resource speakers include PSE Issuer Regulation Division Head Attorney Marigel B. Garcia, Securities and Exchange Commission (SEC) Director Vicente Graciano P. Felizmenio, Jr., and Fund Managers Association of the Philippines Board of Senior Adviser Frederico Rafael D. Ocampo.

“PSE LIST will cover topics such as IPO registration process and procedures, due diligence and compliance requirements, among others,” PSE said.

Additionally, Cebu Landmasters, Inc. President and CEO Jose R. Soberano III will talk about “experiences and valuable insights” on preparing for an IPO, transitioning the company from privately owned to publicly listed, and its responsibilities post-IPO.

“For the year, the [exchange operator] will continue to host activities aimed at raising awareness about IPO listing such as the Corporate Connect and Road to IPO programs,” PSE said.

The Corporate Connect event is in partnership with financial advisors and business organizations aimed at gaining awareness and creating interest in tapping the equities market for capital raising.

Road to IPO is a round table discussion featuring executives from private listed companies and stakeholders in the listing process “to give potential listing applicants a preview of what to expect when preparing to go public.”

The exchange will be joining the SEC’s roadshow on capital formation for micro, small, and medium enterprises and start-ups.

“After the successful run in Davao this month, the Exchange will take part in the same activity that will be conducted in Cebu in March and Cagayan de Oro in April to discuss fund raising through the stock market and introduce PSE LEAP to business owners based in the key cities outside of Metro Manila,” PSE said. — Adrian H. Halili

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