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Planning livable and sustainable cities

In photo during the BusinessWorld Insights (clockwise, from top left) are moderator Arjay L. Balinbin of BusinessWorld, and panelists Steven Tan, president of SM Supermalls; Felino A. Palafox, Jr., Principal Architect-Urban Planner of Palafox Architecture Group, Inc.; and Erika Fille T. Legara, Aboitiz chair in Data Science and associate professor at the Asian Institute of Management.

By Chelsey Keith P. Ignacio, Special Features and Content Senior Writer

Many people go to the cities to discover the opportunities they widely present. Currently, over half of the global population lives in cities, according to the United Nations. This is expected to expand to two-thirds of the population by 2050.

How can the cities in the Philippines accommodate such growth? Rapid urbanization, when unplanned, could create issues affecting the people and the surroundings. Realizing the issues in existing cities and the work to do to develop better cities for people to live in were explored during the BusinessWorld Insights forum about “Smart Cities and Mobility: Building More Sustainable Cities and Transportation” on Jan. 25.

Projecting that the Filipino population would reach 150 million by 2050, Felino A. Palafox, Jr., Principal Architect — Urban Planner of Palafox Architecture Group, Inc., has been promoting for the planning and development of a hundred new cities by then. Or else, he saw that the existing cities would be as bad, if not worse, than the present Metro Manila.

In the Philippines, Metro Manila is known for encompassing opportunities in its various cities. But the capital region is also infamous for the wrongs in its urban planning.

“In the 70s, Metro Manila was a model, a reference, for good metropolitan planning. Today, many scholars from Harvard, Yale, and European universities, they come to our office and interview me, ‘Metro Manila, what went wrong?'” Mr. Palafox shared.

Mr. Palafox pointed out the imbalance in the country. For example, Makati City’s central business district (CBD) is surrounded by gated communities, but “there is no housing for the human capital,” he said.

“The employees of Makati, on the average, spent about five to six hours commuting because [they] are priced out of the housing stock.”

He also mentioned that the Makati CBD’s daytime population is 11 times more than its nighttime population due to the human capital lacking of socialized housing.

“There’s so much imbalance in our country, urban, regional, and national development, and the primacy of Metro Manila,” he further emphasized.

He also said later on that “we cannot address the problems of Metro Manila unless we distribute more cities outside Metro Manila.”

Mr. Palafox noted issues such as the lack of public parks or democratic spaces for all income classes as well, hence a lot of people go to malls. He later mentioned also that Metro Manila lacks open spaces.

“Open spaces are the lungs of the city. That’s why Metro Manila, [when] compared to the human being, needs lung transfer because of the lack of open spaces, a heart bypass because roads are congested, and a heart transplant because major activity centers like CBDs are all constrained, and so on,” he said.

Another issue pinpointed by Mr. Palafox was the lack of being visionary.

Sharing his experience from working in Dubai in United Arab Emirates, he said that the rulers of modern Dubai possess “visionary leadership, strong political will, a good appreciation of good urban planning and good design, architecture, engineering, and very competent. They always keep on improving.”

“In our country, it’s mostly short-term and opportunistic. There seems to be lacking long-term and visionary,” he said.

He also noted that a lot of the urban planning decisions made by local governments are political decisions.

Educating policy makers

Policy makers must be educated about the cities, stressed Erika Fille T. Legara, Aboitiz chair in Data Science and associate professor at the Asian Institute of Management.

Properly understanding cities, according to Ms. Legara, stipulates a complex systems perspective, given cities are complex systems. For instance, Metro Manila cannot be fully understood and managed by isolating individual cities that comprise the region.

“We have to look at it as a whole. Everything is linked, everything is interconnected and interdependent,” she said. “So, to develop sound policies, for example, for improving well-being and the quality of life of commuters and citizens, we must start thinking in systems and consider this interconnectedness, the different components, and factors.”

Ms. Legara also considered the “natural tendencies” of the people and the cities.

“Sure, we can be engineered. But the engineering and management must be well-thought-out considering these tendencies [or] human behavior. Why, for example, do people want to move to cities? Because people want to be where the action is, where the economic activities are, where the opportunities are, and where there is a dynamic and active lifestyle,” she said.

These dynamics, active lifestyle, and opportunities should also be there when considering decentralization, not just building housing, she later added.

Making cities smarter should also not just be the goal, said Ms. Legara, but to make them more livable. That is, by making the amenities, centered on well-being and quality of life, more accessible to the people. Yet, getting there might need cities to be smarter, but that should not be the end.

“These plans and implementation must be all-inclusive. [In] Metro Manila, inequality is really terrible. And this is something that we also need to address, and the government must start to think this way, too,” Ms. Legara said.

She also mentioned the need for political will to put plans in place. “Because even if you have the right data, the science and technology, all of these approaches, the plans, if there’s no political will to implement these plans, that would be a big problem,” she said.

For the ordinary citizens’ part, meanwhile, Ms. Legara believed that it is important that they should let the government know that they demand things.

“We have to call their attention because usually our policymakers — not all, but many of them — don’t really use public transport so they don’t know what people go through on a daily basis. It would be good if we can tell them, let them know that ‘Hey, we need this,'” she said.

“[That is] critical, for us to know that we can actually come to them, approach them, let them know of what we’re going through and hopefully they listen,” she added.

Private sector’s role

The private sector also has a role in helping address cities’ problems and work together with the government in this endeavor. This was highlighted by Steven T. Tan, president of SM Supermalls.

“Big corporations [or] institutions like us, I think we have that responsibility to act on these pressing issues. And we work very closely with whether it’s the local government or the national government,” he said.

He added that the private sector could not disregard and say that this is only the government’s problem. “It’s everyone’s problem. It’s everyone’s concern. We have to really work hand in hand.”

“It is [in cities] that we are doing business, and it’s just right for big businesses like ours to also help [with] other concerns of the cities,” Mr. Tan said. For SM Supermalls’ part, for instance, they also consider other things to uplift people’s lives when they build a mall.

“When we put up a mall, we also put up residentials, we create jobs,” he shared, adding that 70% of their tenants are micro, small, and medium-sized enterprises, which help the provinces where their malls are located.

“At SM Supermalls, we believe that sustainable property development is the key. We make every effort to future-proof our country through the practice of disaster resilience that addresses the increasing demand for urban areas and the threat of climate change,” said Mr. Tan.

He shared that SM Supermalls has launched several free E-Vehicle Charging Stations. The SM electric bus services also began rolling out, which allowed commuters to go from SM Fairview in Quezon City to SM Megamall in Mandaluyong City and vice versa. More destinations would be rolled out in the coming months, according to Mr. Tan.

“Our commitment to building smarter, sustainable cities and transportation has become stronger than ever. I believe that by initiating sustainability programs that will improve the way we live, we can add value to the lives of every single Filipino mall-goers and increase our chances of achieving a sustainable nation. However, this is not just SM Supermalls’ battle alone. It is ours,” he said.

Fitch sees better profits for PHL banks this year

STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

By Keisha B. Ta-asan, Reporter

PHILIPPINE BANKS will continue to see improved profits this year, supported by better margins following the central bank’s rate hikes, according to Fitch Ratings.

“In the absence of a new shock in the economy, we expect banking sector profitability to continue to improve in 2023, helped by rising interest rate margins as banks continue to reprice their loans while funding costs are likely to remain controlled thanks to banks’ favorable funding structure,” Tamma Febrian, a director at Fitch Ratings’ Asia-Pacific Banking team, said in an e-mail interview with BusinessWorld.   

Mr. Febrian said this would offset any rise in credit costs stemming from the vulnerable sectors.

“Capitalization levels are likely to remain steady, supported by sustained earnings growth that is broadly in line with credit growth,” he added.    

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed outstanding loans extended by universal and commercial banks climbed by 13.7% year on year to P10.64 trillion in November 2022.

As lending growth continued to pick up, M3 — the broadest measure of liquidity in an economy — expanded by 5.4% to P15.6 trillion in November.

However, rising inflation and higher interest rates, which may affect consumers’ purchasing power, could result in weaker asset quality for lenders, Mr. Febrian said.   

Inflation averaged 5.8% in 2022, well-above the BSP’s 2-4% target range. The BSP expects inflation to average 4.5% this year, although BSP Governor Felipe M. Medalla has said this is expected to be below 4% by the third quarter and below 2% by early 2024.

The Monetary Board increased the overnight reverse repurchase rate by 350 basis points (bps) to 5.5% in 2022, although it is expected to continue tightening this year to curb inflation.

“Higher interest rates, coupled with rising cost of living and input costs, would generally weaken borrowers’ debt repayment capacity. Nevertheless, most large corporates in the country have significant financial buffers to withstand the rise in interest expense,” Mr. Febrian said.   

He noted small- and medium-sized enterprises (SME) and consumers may feel the impact of higher rates more, given their thinner buffers, but any weakening in loan quality in these sectors will likely be contained as economic growth is expected to remain strong this year.

Fitch Ratings expects the Philippines to grow by 5.5% this year, slower than the 7.6% gross domestic product (GDP) growth in 2022. This forecast is also below the government’s 7-6% target.

“Loan demand is sensitive to interest rate movements. Pent-up consumer demand and capex (capital expenditure) have kept loan growth robust in the second half of 2022 despite the aggressive monetary policy tightening since May 2022,” he said.   

“We expect demand to moderate in 2023 as effects of the rate hikes filter through to the economy. Our base case is for loan growth to settle at 6-7% in 2023, with some upside if the economic momentum turns out stronger than expected,” he added.   

Despite rising borrowing costs, economic output grew by 7.2% in the fourth quarter of 2022.

Fitch Ratings also expects “fairly steady asset-quality performance” for the banking sector this year.

“We believe any deterioration in the vulnerable sectors (i.e. SME, consumer) are likely to be offset by continued recovery in the large corporates’ loan quality and the tourism sector. The latter has been a major drag on banks’ asset quality over the past two years, but tourism activity is expected to continue to rebound as China reopens its economy, which should cause credit pressures on these borrowers to ease,” Mr. Febrian said.   

Based on data from the central bank, bad loans slipped by 0.9% to P408.097 billion in November from P411.632 billion in October. This brought the November nonperforming loan (NPL) ratio to 3.35%, which fell from 3.41% in October.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. They are deemed as risk assets as borrowers are unlikely to settle these loans.

“We see some upside to our outlook if the economy grows faster than expected or if banks aggressively write off NPLs, given the high loan-loss coverage of a number of the large banks in the country,” Mr. Febrian said, adding that asset quality may worsen if there is another economic shock or if rates rise significantly higher than the base case.

VAT refund program expected to boost tourist spending

Tourists are seen at the beach of Boracay island, Aklan province. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINE government’s move to grant value-added tax (VAT) refunds for foreign tourists is expected to boost the tourism industry’s recovery from the coronavirus pandemic.

President Ferdinand R. Marcos, Jr. is expected to issue an executive order to implement the VAT refund program for foreign tourists by 2024, Malacañang said on Sunday. No details were given.

“The VAT refund for tourists can (encourage) tourists to spend more here in the Philippines as this practice is also done in many developed economies with huge arrival figures,” John Paolo R. Rivera, an economist at the Asian Institute of Management, said in a Viber message.

The Philippines applies a uniform 12% VAT on nearly all sales of services and imports in the country.

Many countries currently offer VAT refunds to tourists upon their departure. For instance, tourists can claim a VAT refund on purchases made in European Union member countries, such as Spain, France and Italy, but the minimum purchase required to qualify for refunds would depend per country.

Aside from the VAT refund scheme, Mr. Marcos on Jan. 26 approved other recommendations by the Private Sector Advisory Council (PSAC) such as the rollout of e-visas by 2023 with priority given to Chinese and Indian nationals, and the removal of the One Health Pass.

The PSAC had also recommended the revocation of outdated advisories and loud-speaker announcements at all airports, as well as the automatic inclusion of travel tax in all airline tickets.

“These are great initiatives to energize tourism and create more jobs… We need initiatives like this to become world-class, then world-beating,” Makati Business Club Executive Director Francisco Alcuaz, Jr., said in a Viber message on Sunday.

The Department of Tourism (DoT) reported 2.65 million international visitor arrivals as of end-December 2022, which translated to P209 billion in tourism revenues. The DoT exceeded its target of 1.7 million tourist arrivals last year, as government began easing travel restrictions.

Of the total, there were 39,627 foreign arrivals from China and 51,542 from India.

While last year’s tourist arrivals are significantly bigger than the 163,879 recorded in 2021, it is still a far cry from the 8.6 million tourist arrivals before the pandemic in 2019.

Tourism-related jobs reached 5.23 million in 2022, the DoT has said.

The Philippine government is targeting 4.8 million international tourist arrivals this year.

“With pandemic-related travel restrictions lifted, we Filipinos are ready to showcase the Philippines as a world-class tourist destination. PSAC is in support of the administration’s tourism agenda, particularly in boosting infrastructure and systems that will support the many travelers looking to discover the unique beauty of our country,” Robinsons Land Corp. President and Chief Executive Officer Frederick D. Go, who was also PSAC Tourism Sector Lead, said in a separate statement.

The United Nations World Tourism Organization (UNWTO) has said international tourist arrivals are projected to hit 80% to 95% of pre-pandemic levels in 2023.

“The recent reopening of several Asian source markets and destinations will contribute to consolidating the recovery in 2023,” according to the UNWTO. — J.V.D.Ordoñez

Consumption likely to slow amid looming recession, say experts

A WOMAN SHOPS for food items at a supermarket in Quezon City, Sept. 11, 2022. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE GOVERNMENT should diversify its major growth drivers to rely less on consumption as household spending is seen to slow amid a potential global recession, analysts said.

“While it is true that much of the growth is coming from consumption, this is hardly stable and is coming mainly from the easing down of the lockdowns,” Ateneo de Manila University Economics Professor Leonardo A. Lanzona said in an e-mail.

The Philippine economy grew by 7.6% in 2022, the fastest economic growth since 1976. Preliminary data from the statistics authority showed household consumption surged by 8.3% last year from 4.2% in 2021.

On the demand side, household consumption was the biggest contributor to gross domestic product (GDP) growth last year. Restaurant and hotel spending contributed the most to household expenditures amid the reopening of the economy.

HSBC Philippines Chief Executive Sandeep Uppal said during the Philippine Economic Briefing in London last week that the Philippines is seen as a destination for investments due to its “rising consumption.”

However, consumption may likely wane amid the looming global recession, University of Asia and the Pacific Senior Economist Cid L. Terosa said.

“Consumption spending heavily depends on disposable income, which could be negatively affected by a global recession. Although a major portion of the consumption spending of Filipinos is for necessities such as food, the potential impact of supply disruptions due to the global recession can exert upward pressure on prices and eventually curb consumption spending,” he said in an e-mail.

“The spending spree that we see in markets today will eventually ‘normalize’ and seek its usual level.”

The World Bank expects global growth to decelerate this year due to the fading of pent-up demand, elevated inflation, and prolonged impact of the Russia-Ukraine crisis. The multilateral lender trimmed its Philippine GDP growth projection to 5.7% for 2023-2025, from 5.8% previously.

Economic managers expect Philippine GDP to expand by 6-7% this year, narrower than its earlier target of 6.5-8% amid the anticipated global recession.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said there is a need to further “diversify the country’s major sources of economic growth to increase the share of investments, both local and foreign.”

“Besides, the country’s demographics are attractive to foreign investors, at least as a large market for their products and as a source of organic growth since the country’s population is at least 110 million, the 12th largest in the world and among the youngest in the region,” he added.

Gross capital formation, the investment component of the economy, grew by 16.8% in 2022, slower than 20.3% in 2021.

Mr. Lanzona said trade-based, long-term investments are more preferable.

“Other countries in the Association of Southeast Asian Nations are mostly trade based. Because the global chain is disrupted, their growth rates are lower compared to the Philippines which is not too dependent on trade. I can predict that once the global recession ends and the global chain strengthens, these investments will leave the country,” he added.

Mr. Terosa said the Philippines should focus on attracting infrastructure investment.

“Investors do not only respond to market size and market consumption capacity. The infrastructure and institutional support for markets are important as well. Hence, the country should strive to upscale its infrastructure and to sharpen its governance-related image,” he said.

“The country should show investors that we have a trustworthy and reliable capacity to manage our economic and social resources for economic growth and economic development,” he added.

The National Economic and Development Authority (NEDA) last week said it is working on around 3,600 potential infrastructure projects worth a total of $372 billion. The projects will be implemented through 2028.

Singapore’s SMEC eyes ‘major role’ in NAIA O&M

NINOY AQUINO INTERNATIONAL AIRPORT (NAIA) Terminal 3 — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Arjay L. Balinbin, Senior Reporter

SMEC Philippines, Inc., a unit of Singaporean infrastructure and urban development consultancy company Surbana Jurong Group, said it is now preparing its expression of interest for the technical aspect of the operations and maintenance (O&M) of the Ninoy Aquino International Airport (NAIA).

“We are participating,” SMEC Philippines President/Country Manager Ricardo M. Yuzon, Jr. told BusinessWorld last week. “We are developing now our expression of interest for the O&M of NAIA.”

He said the professional services company, which has Australian origins, will be involved in the support facilities for the operations and management of Manila’s main gateway.

According to the company, the Asian Development Bank (ADB) recently issued a request for expression of interest.

Mr. Yuzon noted that SMEC’s parent company, Surbana Jurong Group, has been involved in various airport projects, including the expansion of Singapore’s Changi Airport.

“Just like the mother company, which was involved in the design and construction of the Changi Airport and other airports, we would want also to play a major role in NAIA, but on the technical aspect,” Mr. Yuzon said.

“Technical aspect means we can also be involved in the design of the facilities; but since the airport is already there, the next step that can be done will be the rehabilitation of the runway and rehabilitation of the facilities, especially given what happened last time that the power system shut down,” he added.

The Department of Transportation (DoTr) previously said that it was engaging the ADB for technical support in opening up the NAIA operations and maintenance to private companies.

According to its website, ADB provides support in terms of developing public-private partnership (PPP) framework and policies to facilitate increased private sector investment and participation in the development and operations of infrastructure assets.

Mr. Yuzon said SMEC is also involved as a consulting services provider in San Miguel Corp.’s airport project in Bulacan.

OUTLOOK

SMEC expects the Philippine construction industry to stay strong this year, as the Marcos administration continues the previous government’s infrastructure push.

“Inflation is still a major concern, but with signs of it stabilizing and the government eager to provide funding for much-needed projects, we are upbeat that the major projects we are involved in will push through as planned,” Mr. Yuzon said.

Inflation averaged 5.8%, a 14-year high, in 2022. The Philippine central bank expects inflation to average 4.5% this year, although it sees it returning to the 2-4% target range by the third quarter.

“The project sector, on the other hand, is still very enthusiastic and supportive of the government’s endeavor to improve the country’s economic condition,” he added.

Despite the current political and health situation, Mr. Yuzon noted many private investors are now getting into big-ticket projects.

“Whilst we see slower growth, we see the partial completion of some big-ticket rail and road projects like the North-South Railway Project Phase 1 and the opening of the Connector Road, in which SMEC was involved as a design and construction supervision consultant, to further spur economic activities between Metro Manila and connecting provinces,” Mr. Yuzon said.

SMEC is looking to do more consultancy work for water, renewable energy, transport, and reclamation projects, among others, he added.

SEC warns against Upsys, Elizabeth Esty and Bitprime

THE Securities and Exchange Commission (SEC) warned the public against putting money in three entities, which are soliciting investments without first securing a license.

It identified the entities as Elizabeth Esty Save Lives Binary Option Trading, Inc., Bitprime Computer Software Trading, and Upsys Daily Trading.

In an advisory, the SEC said Elizabeth Esty, which also transacts as ElizabethEstySaveLive, has been enticing the public with a 100% return on investment and 10 times profit.

Investments in Elizabeth Esty start from P1,000 to as high as P17,000 with promised earnings ranging from P10,000 to P125,000 depending on the amount of investment.

According to the SEC, the company’s chief executive officer claims that “she is engaged in Bitcoin trading and Binary Options Trade.”

The regulator also found out that the corporation has been posting a certificate of incorporation with a company registration number that belongs to another corporation.

In a separate advisory, the SEC said that Bitprime, which also operates under Ariane Estolonio-Bitprime Software One-Person Corp. (OPC), has been representing itself as a cryptocurrency service in cloud mining.

“The said entity allegedly generates income through cloud-mining investments. The investment from partners will be invested in ‘Cointrust-mining company’ to gain profits,” the regulator said.

Investments in Bitprime start from P500 and can go up to P100,000 with a promised 45% earnings for 15 days.

Meanwhile, Upsys was found to have been offering investment schemes ranging from P500 to P150,000 with a promised 2% up to 4% daily earnings.

Its investors were also told that they can earn a 50% direct referral bonus for first-level referrals and a 1% unilevel bonus for second levels and above.

According to the commission, Elizabeth Esty and Upsys both operate without registration, while Bitprime is a registered OPC.

However, the regulator clarified that all three entities have not secured a permit to sell or offer investment contracts to the public.

In another advisory, the SEC warned the public against impersonation scams amid rising reports about entities that pose as reputable financial institutions.

The commission emphasized that any business entity must secure prior registration and a secondary license to solicit investments.

“The mere fact that an entity has no secondary license granted by the SEC makes their investment-taking activities illegal,” the advisory read. — Justine Irish D. Tabile

PSEi re-entry seen to boost liquidity of DMCI, UnionBank

BW FILE PHOTO

DMCI Holdings, Inc. and Union Bank of the Philippines are seen to improve their liquidity and stock valuation after their re-entry to the Philippine Stock Exchange index (PSEi), according to analysts.

“Admittedly… such inclusions or removals from the PSEi do impact the stock prices of the firms involved, and trading the potential candidates can be a profitable — albeit somewhat risky — enterprise,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message

“There are clearly liquidity benefits to inclusion into the PSEi, and the juice just might have been squeezed for these companies,” he added.

“There was little surprise as investors were making bets as early as December as to which names would be included in the index,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Active funds may have bought in anticipation of the release while passive funds will implement the changes by the deadline,” Mr. Limlingan said, adding that “trading activity will likely pick up towards the actual rebalancing date.”

On Friday, the Philippine Stock Exchange, Inc. announced that DMCI and UnionBank will be replacing Megaworld Corp. and Robinsons Land Corp. (RLC) in the main index starting Feb. 6, 2023 as a result of its index review in 2022.

DMCI will be rejoining the PSEi after a year while UnionBank will be rejoining the index after 14 years. Once realized, Megaworld and Robinsons will be under the property index.

To be considered for inclusion in the main index, the company must be among the top in terms of liquidity and market capitalization and have at least a 20% free float level.

The financials index will also have changes with the local bourse operator joining to replace East West Banking Corp.

Vitarich Corp., a member of the industrials index, will be removed and replaced by Basic Energy Corp. and The Keepers Holdings, Inc.

The property index will be welcoming four new members, namely: D.M. Wenceslao & Associates, Inc., Filinvest REIT Corp. (FILRT), MREIT, Inc., and RL Commercial REIT, Inc. (RCR) after the removal of Philippine Infradev Holdings, Inc. and Philippine Estates Corp.

The service index will soon have AllDay Marts, Inc. and Medilines Distributors, Inc. and will bid goodbye to Metro Retail Stores Group, Inc. and Philippine Seven Corp.

Benguet Corp. is set to be removed from the mining and oil index, while Lopez Holdings Corp. will be joining the index for holding firms.

After the rebalancing, the PSE MidCap index will have China Banking Corp., Filinvest REIT Corp., Megaworld, MREIT, RCR, RLC, and Synergy Grid & Development Phils., Inc.

For the PSE Dividend Yield index, Citicore Energy REIT Corp., UnionBank and Security Bank Corp. will replace Bank of the Philippine Islands, DDMP REIT, Inc. and FILRT. — Justine Irish D. Tabile

DA resumes search for onion production sites in Davao

PHILSTAR FILE PHOTO

THE Department of Agriculture’s (DA) Davao regional office is resuming the search for potential onion production areas following the recent spike in prices of the root crop, which is hardly grown in the southern Philippines.

DA Davao Regional Director Abel James I. Monteagudo said a directive to explore possible onion farming sites nationwide dates back to 2017, but it was not pursued as a priority or initial land surveys showed unsuitable conditions.

“My predecessor directors (were) instructed by the previous two secretaries, especially Secretary (Emmanuel F.) Piñol, in 2017 that we should look for onion production areas,” he said during an Agribiz media forum last week.

Davao is largely planted to other high value crops such as coconut, banana, cacao, and other fruit. 

“Some regions really were able to identify (sites) and some came out failing due to climate adaptability, and other reasons,” he said. 

In Davao, the towns of Magsaysay and Matanao in Davao del Sur have started planting shallots, a smaller variety of the onion family, he said.

Mr. Monteagudo said the regional office is now looking into other parts of Davao del Sur as well as the other Davao provinces, noting that the DA is prepared to provide support in terms of hand tractors, irrigation, and fertilizer.

“It’s just a matter of giving them support and the necessary interventions,” he  said.

Davao and its neighboring Soccsksargen region posted the highest onion demand in the southern Philippines, with per capita consumption of 1.82 and 2.03 kilograms, respectively, according to the DA’s Philippine Onion Industry Roadmap 2021-2025.

The top five onion producing regions in the country are all in the north: Ilocos, Cagayan Valley, Central Luzon, and Mimaropa.

“Although bulk of the production and areas planted to onion are in Luzon, the possibility of growing this commodity in the Visayas and Mindanao regions is now being considered and acted upon to augment the production as the local and international demand is expected to increase in the coming years,” the DA said in the roadmap.  

The five-year report concludes that the Philippines needs to increase production to 279,270 metric tons in five years from 229,539 MT currently to achieve self-sufficiency. — Maya M. Padillo

Paris Fashion Week: Armani spins harlequin patterns into ballgowns for haute couture lineup in Paris

PARIS — Giorgio Armani took to the haute couture catwalk in Paris last week with evening wear spun from a traditional, diamond-patterned harlequin motif in pale pastels.

Models moved steadily down a glossy runway carrying the motif, their clothing echoing the colors underfoot — pale pink, green, and purple. (See the show here: Privé – Haute Couture Fashion Show SS23 | Giorgio Armani ).

The show opened with elegant trouser ensembles — black, satin pants paired with bolero jackets in pink as well as in emerald green.

Slim gowns followed, the diamond patterns delineated with sparkling beadwork that shimmered with movement, often worn with matching shoes and mini handbags.

At the end of the show, the 88-year-old Italian designer took his bow in a dark velvet suit jacket and tie, waving at the crowd before exiting with one of the models.

DIOR DAZZLES
Dior designer Maria Grazia Chiuri paid homage to Josephine Baker with her spring haute couture show last week, sending out a dazzling lineup featuring golden jacquards, crushed velvet and beaded fringes that swayed and sparkled down the runway. (See the show here: Spring-Summer 2023 Haute Couture Show – DÉFILÉS HAUTE COUTURE – Women’s Fashion | DIOR ).

“She immediately understood the power of fashion,” Ms. Chiuri said of Baker, the famed French-American jazz singer and dancer.

The designer looked beyond Baker’s stage style, also considering her love of suits and the uniforms she wore as a member of the resistance in France during the Second World War, as well as more intimate garments, including body-enveloping robes worn after a performance.

The show of the LVMH-owned label opened with a luxurious robe-like coat, thrown over a satin bodysuit. A black velvet jumpsuit followed, strapless, the legs cut wide, before moving into a series of enveloping coats worn on top of long, pleated skirts.

Artwork by Mickalene Thomas lined the set, larger-than-life portraits of Black women, including Donyale Luna, Eartha Kitt, and Naomi Sims who built on the path opened up by Baker, said Ms. Thomas.

She sought to depict the beauty and confidence of these women, Thomas told Reuters, describing the challenge of whittling the list down to 13.

“All of these women were socially active and either they used their stage, their voice or their performance to really tell a story or a narrative about their personal life and about also the demographic that they were from,” said Ms. Thomas.

The exhibit, which was set up in a temporary show space at the Rodin Museum in Paris was open to the public through Jan. 29.

CHANEL HITS PLAYFUL NOTE
Chanel creative director Virginie Viard took a spirited direction for the French fashion house’s spring haute couture show, sending models out of hulking, stylized animals crafted from cardboard and wood. (View the show here: Spring-Summer 2023 Haute-Couture Show | CHANEL ).

They emerged, one at a time, circling the towering statues like ringmasters, in bouncy, cheerleader miniskirts, floral jumpsuits and shimmery tweed jackets.

The opening look set the tone — an ivory, double breasted coat, buttoned snuggly across the chest before flaring out, the feathery fringe of a miniskirt poking out below.

On her head, the model wore a black top hat, its brim gently sloped, while flat sling-back shoes accentuated her long, bare legs.

Ms. Viard pared down the superfluous often associated with haute couture, offering mostly trim silhouettes, with just enough flounce, when it came to fuller skirts, or restricting the color palette when it came embellished looks, like a full-length ivory coat covered in ruffled pleats.

An elephant-shaped structure rolled in for the finale, and out stepped the bride, in an airy, ivory tulle bustier dress that fell below the knee, paired with gold boots that rose above her ankles.

During her bow, Ms. Viard drew artist Xavier Veilhan, who designed the set, out from the risers while the audience cheered.

IMANE AYISSI ADDS AFRICAN TOUCH
Imane Ayissi wove African textiles into his haute couture collection shown in Paris on Thursday, mixing raffia-lined garments in bright colors with dresses coated in sequins or airy silk fringes. (Watch the show here: Imane Ayissi Couture Collection SS 23 “ Agnieup” – YouTube).

“This is a window to show techniques of African artisans,” said Mr. Ayissi.

Models walked down a runway in an ornate mansion near the Arc de Triomphe, parading sculptural dresses and sequin-coated tops that were trimmed with raffia.

A fitted minidress in splashes of orange, red and green featured a traditional tie-dye technique, with a sprinkling of orange Swarovski crystal embellishments added for sparkle.

“We’ve gone through some very difficult times, with the COVID-19 pandemic that was hard for everyone; it’s time to try to rebound,” said Mr. Ayissi, gesturing towards a hot pink dress.

The Cameroon-born designer, who is based in Paris, is currently featured in the Victoria & Albert Museum exhibit Africa Fashion in London.

MAISON RABIH KAYROUZ RETURNS
Maison Rabih Kayrouz took to the runway last week for the first time in three years, showing an elevated collection that toyed with the boundaries of ready-to-wear and haute couture fashion.

For his namesake label, the Lebanese designer sent models ambling through a maze of rooms in a Paris mansion, heels resonating on the wooden floor, in chic evening dresses and tailored suits.

There was just a sprinkling of sparkles, with embroidered embellishments, high around the waist and the neck of a sleeveless dress. But most looks came in single colors such as ivory or black, as well as a bright marigold yellow.

Mr. Kayrouz, who is known for a clean, understated elegance in his styles — often seen on the red carpet — said he imagined a woman after a full day, brimming with confidence.

“For me, haute couture is not one style, not one situation — it’s know-how,” he told reporters after the show.

Mr. Kayrouz also said that since the pandemic he has been interested in the role of clothing as protection, which he offered in his capes, jackets, and dresses which served to cover the body.

Jackets were wrapped snugly across the waist, forming folds, while trousers carried a crisp crease down the middle, slightly flared at the bottom.

For the finale, models walked in pairs, carrying glasses of champagne, offering them to members of the audience as the rooms erupted in applause.

The Paris haute couture shows, which include some of the most prestigious names in fashion like Giorgio Armani Prive, Jean Paul Gaultier and LVMH-owned LVMH.PA Christian Dior, ran through last Thursday. — Reuters

Cebu Pacific aims to boost demand for Manila-HK travel

BW FILE PHOTO

CEBU PACIFIC (CEB) said on Sunday it will now fly four times daily to Hong Kong, but hopes to boost demand by offering airfare discounts.

“After Hong Kong eased requirements for inbound travelers in December, the airline operated Manila-Hong Kong flights 32 times weekly until January due to the anticipated high traffic over the resumption of the destination amid the holiday season,” Cebu Pacific Director for Corporate Communications Carmina Reyes-Romero said in a phone message to BusinessWorld on Sunday.

Cebu Pacific will fly 28 times weekly for February, she added.

The budget carrier hopes that Filipinos will “take advantage of the easier travel protocols in Hong Kong,” Cebu Pacific said in an e-mailed statement.

The airline targets to restore 100% of its pre-pandemic network and capacity in March this year.

The budget carrier currently flies to 34 domestic destinations and is set to restore all its 25 international destinations in the first quarter.

“Even better, every Juan can fly to Hong Kong for as low as P499 one-way base fare, made possible by a CEB special seat sale which runs from Jan. 27 to 31, 2023,” the airline said.

The travel period is from June 1 to Aug. 31 this year.

“Upon check-in, travelers must present a negative result from an antigen test taken within 24 hours or a negative 48-hour RT-PCR result, and a proof of vaccination of primary doses for non-Hong Kong residents aged 12 or above,” Cebu Pacific said.

It noted that the test results may also be submitted online through Hong Kong’s health and quarantine information declaration website (https://www.chp.gov.hk/hdf/). Travelers are reminded to keep photos of their test results for 90 days.

Arriving travelers are also encouraged to take a self-arranged antigen test daily until the fifth day from their arrival.

Cebu Pacific said that the results of the antigen tests may be reported through the Hong Kong government’s electronic monitoring and surveillance system (https://nhqsdata.hqss.ogcio.gov.hk/ibt/#/login).

“Passengers with existing travel funds may use these to pay for flights and other add-ons. Apart from the Travel Fund, other payment options such as payment centers, credit or debit cards, and e-wallets may also be used,” the airline said. — Arjay L. Balinbin

El-X3-city

PHOTO BY KAP MACEDA AGUILA

Another all-electric option joins the BMW fold

TIMING can be everything. For BMW Philippines and the all-electric iX3, it has been nothing short of truly serendipitous.

Barely two weeks after President Marcos released Executive Order No. 12, approving “zero tariff on electric vehicles to encourage consumers to use ‘cleaner and greener’ cars” as reported by Kyle Aristophere T. Atienza in a recent BusinessWorld article, Local BMW distributor and service provider SMC Asia Car Distributors Corp. took the wraps off this BMW Sports Activity Vehicle (SAV, its nomenclature for the SUV).

The tariff relief is expected to boost the local electric vehicle market and encourage a shift to emerging technologies, according to the order. This specifically cut the iX3 price by a hefty P700,000 — to P4.59 million — certainly very reasonably by EV (and premium) standards.

BMW Philippines President Spencer Yu said ahead of the unveiling last week that the iX3 will complement the previously launched iX in the Munich-headquartered brand’s electric lineup, and is “the first in a series of BEVs (the company will) be introducing this year. This is part of our continued promise to bring more electrification in a more modern package to the Philippine motoring public,” he declared.

The BMW iX3 is essentially the X3 that many motorists are familiar with — except that it swaps an electric motor for the more familiar internal combustion engine. It is the first BMW to be offered in four drivetrains — a diesel, plug-in electric vehicle, gas, and the iX3. This unrivalled flexibility in platform helps to make the iX3 both familiar and fresh.

“The iX3 is a very compelling option to a lot of first-time buyers,” continued Mr. Yu, and said that it makes EV motoring closer to the general public… It will feel, behave, and drive like a BMW.

“Those of you who are familiar with driving our X3 will not find a difference here, except for the fantastic torque.” In terms of looks, the iX3 sports blue accents to indicate its electric drivetrain, and the kidney grille is bereft of too many holes because it doesn’t have an internal combustion engine that needs to breathe and be ventilated.

Driving the iX3 is the fifth-generation BMW Group eDrive system, which features a current-excited synchronous motor and a 400-volt lithium-ion battery. It can muster a range of 460 kilometers on a single charge — a figure Mr. Yu said he can attest to. The electric motor can dish out a maximum of 286hp and 400Nm, and can speed the vehicle from a standstill to 100kph in 6.8 seconds — onward to an electronically limited 180kph.

“The power density of the electric motor in the first-ever BMW iX3 is 30% greater than that of existing fully electric vehicles from the BMW Group. The motor displays efficiency of up to 93%, in comparison to under 40% for combustion engines,” said the company in a release.

The aforementioned price includes a Wallbox-branded alternating current (AC) home charger to be installed by BMW’s accredited “i partner.” Charging from zero to 100% can take as little as 7.5 hours, but users are reminded to keep the charge level to no less than 20%. Direct current (DC) charging on a 150-kW charge point can take as little as 10 minutes for 100 kilometers of range. Of course, it’s not a good idea to always use a rapid charger as it will degrade the battery more quickly. The iX3 is compatible with all Type 2 public charge points in the country.

Helping extract more distance from its battery is Adaptive Recuperation. “The intensity of the brake energy regeneration is adapted to the road situation described by data from the navigation system and the driver assistance system sensors,” reported BMW.

In keeping with its eco-friendly nature, the iX3’s electric motor is said to be produced without employing rare earth metals. Rather, it uses secondary raw materials to manufacturer aluminum castings and thermoplastics. Even electricity used in the actual production process is “green.”

The lone variant (for now) is fitted with BMW’s “Inspiring” equipment line, giving it an M Aerodynamic Package, M high-gloss Shadow line, M roof rails, aerodynamically designed 19-inch light-alloy wheels, and adaptive LED headlights. And while it may feel like it, the seats are not wrapped in hide or leather but man-made materials — specifically, perforated Sensatec. However, it does get an M leather steering wheel, added to an M headliner in Anthracite, electronically adjustable seats with memory function on the driver’s side, fine-wood trim, a panoramic glass sunroof, acoustic glazing for the front door windows, ambient lighting, three-zone automatic climate control system, the BMW Comfort Access System, and automatic tailgate operation.

BMW Live Cockpit Professional includes a 12.3-inch digital instrument cluster and 12.3-inch widescreen display predicated on the iDrive Operating System 7.0. The SAV also gets a wireless smartphone integration with Apple CarPlay and Android Auto preparation, remote software upgrade, and telephony with wireless charging. Harmon Kardon speakers are fitted within as standard. Rear seatbacks can be split/folded 40:20:40 — with load capacity able to be expanded from 510 to a maximum of 1,560 liters.

For safety, the iX3 receives High Beam Assistant, Parking Assistant, cruise control with braking function, Acoustic Protection for pedestrians, Active Protection, plus Park Distance Control with front and rear sensors, and a tire pressure monitoring sensor.

Buying the BMW iX3 M Sport also comes with a five-year factory warranty, eight-year high-voltage battery warranty, and six-year BMW Service Inclusive warranty. Check it out at RSA Motors Libis and RSA Motors Greenhills.

Cold chain industry projects 8-10% capacity growth in 2023

REUTERS

THE Cold Chain Association of the Philippines (CCAP) is expecting the industry to expand by 8-10% in terms of capacity, or about 50,000 pallet positions, this year.

CCAP President Anthony S. Dizon said the expansion will be mainly be organic as the economy recovers, the population grows, and e-commerce adoption accelerates.

He added that the industry’s growth trajectory dates back to 2015, and is set to continue with new builds lined up.

“In terms of capacity (growth), it was 10% in 2022,” Mr. Dizon told reporters in a press briefing.

According to the Philippine Cold Chain Industry Roadmap, food spending is “a main driver of cold storage” as food-related items account for 45% of consumer spending.

As onion prices soar, some farmers’ groups called for the expansion of cold storage facilities to minimize their post-harvest losses.

CCAP has said that its storage capacity was inadequate if the government intends to build up a reserve to mitigate the onion crisis, noting that it costs about P150 million to build cold storage for every 2,300 MT of onions.

Mr. Dizon said government intervention is needed to address the “disparity between demand and capacity,” and proposed loan support for the industry. — Sheldeen Joy Talavera