HONG KONG — Competitive swimmer Jody Lee’s goal is to compete at the Paris Olympics in 2024, but with only two years left to qualify, Hong Kong’s months-long shutdown of swimming pools is making achieving his dream tougher.
Pools and all other sports facilities, including tennis courts, golf courses and gyms, have been shut since January — and for more than 13 months total since the start of the pandemic in 2020.
Mr. Lee, 15, has been trying to keep fit by training in the ocean, braving red tides and currents, but the city closed beaches on Thursday, making it even harder to swim.
“I have no idea where my swimming level is … Things will get especially hard for me in terms of trying to qualify for the Olympics.”
The global financial hub’s blanket ban on sports to curb the coronavirus is hitting thousands of athletes, residents, and businesses who depend on the sports and leisure industry for competitive glory, recreation, wellbeing or profit.
Residents and athletes alike are increasingly frustrated at what they see as inconsistent policy-making from the Chinese-ruled territory’s government, which allowed hairdressers to reopen in March but closed public beaches a week later.
Leader Carrie Lam said there was a “need” for people to get their hair cut, and then defended beach closures as necessary to prevent gatherings. Many residents had flocked to beaches and coastal parks for leisure activities with playgrounds, schools and most public venues shut.
Hong Kong has officially stuck to a “dynamic zero” coronavirus policy, similar to mainland China, which seeks to curb all outbreaks as soon as they occur.
Authorities this year have implemented the city’s most draconian measures since the pandemic started in 2020. Still infections and deaths have skyrocketed, and Ms. Lam has given no clear roadmap how Hong Kong can resume normality.
Tens of thousands have been affected financially by the broad closures, with coaches and clubs losing millions of dollars in revenue, sports associations said.
Around 10% of Hong Kong’s 1,800 fitness centers won’t be able to continue operating, said Sam Wong, executive director of the city’s Physical Fitness Association.
Gym operator Fitness First said this week it was closing its Hong Kong gyms due to the lengthy coronavirus shutdowns.
The city’s Tennis Association said stakeholders from umpires and linesmen to equipment makers were losing significant revenue from the closures. It has urged the government to reopen courts as tennis can “naturally” implement social distancing measures.
At Repulse Bay beach, on Hong Kong’s southern tip, residents looked in frustration at makeshift blockades preventing them from accessing the shore.
“Unscientific and reactive again,” said a resident called Michael who did not want to give his last name.
Many of the city’s young athletes were enthused after Hong Kong’s strongest-ever Olympics performance in Tokyo last year. Ms. Lam said after the Games she would deploy large resources to support the sports industry, but the reality has been much different, residents said.
“While Hong Kong’s politicians are quick to take photos with the swim school’s famous and successful Olympians, they don’t seem to care at all about the financial hardship we have to endure due to poorly-thought-through facility closures,” said Michael Fasching, head coach at swim club Harry Wright International, which trained Olympian Siobhan Haughey. — Farah Master and Joyce Zhou/Reuters
KUALA LUMPUR — Water shortages, already affecting billions of people around the world, are expected to worsen in the coming decades — linked to drought, pollution, rising sea levels and poor management — but an “invisible” solution may be hiding underground.
With water usage seen rising by 1% each year over the next three decades, a United Nations (UN) report predicted on Monday that so-called groundwater will grow in importance as climate change and human exploitation shrink surface supplies like lakes and reservoirs.
Today, groundwater — which accounts for 99% of the planet’s freshwater supplies — is poorly understood and consequently undervalued, mismanaged and even abused, according to the UN World Water Development Report 2022.
Globally, 3.6 billion people had inadequate access to water for at least one month of the year in 2018, and this figure is expected to top 5 billion by 2050, researchers say.
“What if the solution to the world’s water problems is sitting there right under our feet?” said Richard Connor, editor-in-chief of the new report published by UNESCO.
“There is an enormous opportunity if we can manage and exploit all this groundwater sustainably,” he told the Thomson Reuters Foundation.
As the global population grows, hiking pressure on water supplies, here’s why we should pay more attention to the huge potential of groundwater and take steps to manage it properly:
Why is groundwater important and what are its benefits?
Only about 1% of water on Earth is freshwater — mostly found in ice caps — with the rest being saline, in the oceans.
Of the planet’s liquid freshwater, 99% is found underground, where the quality is generally good. It can therefore be used safely, affordably and without requiring advanced treatment.
Water stored above ground, such as in reservoirs and dams, is a finite resource, often costly and vulnerable to pollution and climate change impacts like severe drought — and the ways it is exploited can have ecological and social consequences.
By comparison, 10–20% of groundwater renews naturally and is found at shallow depths, making it easily accessible.
The rest is “fossil water” that has been in the ground for thousands or even millions of years and, while not renewable, it is abundant.
Groundwater systems are important for supporting nature-rich landscapes such as forests, and provide about a quarter of all water used for farming, according to the UN report.
Underground supplies also account for about half of the water used domestically by the world’s population and are the cheapest source of drinking water for rural villagers, most of whom are not connected to public or private supply systems.
How are groundwater supplies abused, and what are the consequences?
Over-extraction can have dire consequences, including land subsidence and conflicts linked to scarce supplies.
In 2018, when India suffered what was seen as the worst water crisis in its history, a report by a government think-tank predicted that at least 40% of its 1.3 billion population would have no reliable access to drinking water by 2030.
Droughts are becoming more frequent as the climate heats up, creating problems for India’s rain-dependent farmers, while disputes between states are on the rise.
In Indonesia’s capital, Jakarta, meanwhile, rapid urbanization and disappearing water catchment areas mean most residents rely on wells that drain underground aquifers, causing the mega-city to sink by about 5–10 cm (2–4 inches) each year.
The planet’s groundwater can be contaminated by improper sanitation and pit latrines, as well as industrial pollution from tanning, mining and agricultural chemicals.
UN report editor Mr. Connor noted that groundwater is less susceptible to pollution than surface supplies.
But once it happens, the contamination is hard to reverse, he said, calling for more action to protect groundwater by strengthening environment agencies, regulation and enforcement.
What are the challenges of tapping more groundwater, and how can they be overcome?
A region like sub-Saharan Africa has poorly developed water infrastructure and little irrigation for farming, leaving it dependent on increasingly erratic rainfall and vulnerable to drought — which can fuel famine, poverty and mass migration.
The region, along with the Middle East, holds significant groundwater reserves that are largely untapped and, if extracted in a controlled manner, could help maintain water security.
Governments must invest in water infrastructure and institutions, and train professionals, in order to access those reserves sustainably, the UN report said.
The development of groundwater sources could catalyze economic growth by expanding irrigated farmland and improving agricultural yields and crop diversity, it added.
Outside Australia, Europe, and the United States, little data exists on groundwater, including how much is available at different depths, its quality and level of salinity.
But companies involved in oil, gas and mineral exploration often gather huge amounts of information on the underground — including the water it holds.
Corporate responsibility pledges by such firms could include sharing groundwater information with agencies responsible for managing it, to support sustainable use, said Mr. Connor.
“You have to have knowledge and data to know how much water [there] is, what its quality is … but also where is it and how fast is it recharging?” he added. — Michael Taylor/Thomson Reuters Foundation
Courtesy of Doctors Without Borders/Médecins Sans Frontières (MSF)
LVIV, Ukraine — Ukraine on Monday rejected Russian calls to surrender the port city of Mariupol, where residents are besieged with little food, water and power in a humanitarian crisis that is increasing pressure on European leaders to toughen sanctions on Moscow.
Ukraine’s government defiantly rejected Russian calls for Ukrainian forces in Mariupol to lay down their arms in exchange for safe passage out of the city and humanitarian corridors to be opened from 1000 Moscow time (0700 GMT) on Monday.
“There can be no question of any surrender, laying down of arms,” the Ukrainska Pravda news portal cited Ukraine’s Deputy Prime Minister Iryna Vereshchuk as saying.
“We have already informed the Russian side about this.”
Mariupol has suffered some of the heaviest bombardments since Russia invaded Ukraine on Feb. 24. Many of its 400,000 residents remain trapped as fighting rages on the streets around them.
Ms. Vereshchuk said over 7,000 people were evacuated from Ukrainian cities through humanitarian corridors on Sunday, more than half from Mariupol. She said the government planned to send nearly 50 buses there on Monday for further evacuations.
Russia and Ukraine have made agreements throughout the war on humanitarian corridors to evacuate civilians, but have accused each other of frequent violations of those.
The crisis in Mariupol and other devastated Ukrainian cities is likely to feature heavily in discussions between European Union (EU) leaders this week as they consider imposing tougher sanctions on Russia including an oil embargo.
EU governments will take up the discussion among foreign ministers on Monday, before US President Joseph R. Biden. Jr., arrives in Brussels on Thursday for summits with NATO’s 30 allies, as well as the EU and in a Group of Seven (G7) format including Japan.
Diplomats told Reuters that Baltic countries including Lithuania are pushing for an embargo as the next logical step, while Germany is warning against acting too quickly because of already high energy prices in Europe.
In his latest appeal for help from abroad, Ukrainian President Volodymyr Zelenskyy addressed the Israeli parliament by video link on Sunday and questioned Israel’s reluctance to sell its Iron Dome missile defense system to Ukraine.
“Everybody knows that your missile defense systems are the best … and that you can definitely help our people, save the lives of Ukrainians, of Ukrainian Jews,” said Mr. Zelenskyy, who is of Jewish heritage.
Mr. Zelenskyy also welcomed the mediation efforts of Israeli Prime Minister Naftali Bennett, who has held numerous calls with him and Russian President Vladimir Putin.
He said in his daily video address to Ukrainians that “sooner or later we will begin to have talks with Russia, possibly in Jerusalem.”
Mariupol’s council said on Telegram that several thousand residents had been “deported” to Russia over the past week. Russian news agencies said buses had carried hundreds of refugees from Mariupol to Russia in recent days.
US ambassador to the United Nations Linda Thomas-Greenfield told CNN the deportation accounts were “disturbing” and “unconscionable” if true, but said Washington had not yet confirmed them.
Reuters could not independently verify the claims. Russia denies targeting civilians.
Greece’s consul general in Mariupol, the last EU diplomat to evacuate the city, said it was joining the ranks of places known for having been destroyed in wars.
“What I saw, I hope no one will ever see,” he said.
Kyiv and Moscow reported some progress last week toward a political formula that would guarantee Ukraine’s security, while keeping it outside NATO — a key Russian demand — though each side accused the other of dragging things out.
FEW ADVANCES
Capturing Mariupol would help Russian forces secure a land corridor to the Crimea peninsula that Moscow annexed from Ukraine in 2014.
Mr. Putin says Russia’s “special operation” is aimed at disarming Ukraine and rooting out dangerous nationalists. Western nations call it an aggressive war of choice and have imposed punishing sanctions aimed at crippling Russia’s economy.
Ukraine and its Western backers say Russian ground forces have made few advances in the last week, concentrating instead on artillery and missile strikes.
Mr. Zelenskyy’s adviser Oleksiy Arestovych said on Sunday there had been a relative lull over the past 24 hours, with “practically no rocket strikes on cities.” He said front lines were “practically frozen”.
Three civilians were killed and five were injured as a result of Russian shelling on Sunday in the east of the country, said Pavel Kirilenko, head of the Donetsk regional military administration. In the Kharkiv region one person was killed and one injured, and in Luhansk region two were killed and one injured.
In the capital Kyiv, Mayor Vitali Klitschko reported several explosions in Podil district and said rescue teams were putting out a large fire at the shopping center. He said at least one person was killed.
Reuters was not able to verify the reports.
The UN human rights office said at least 902 civilians had been killed as of Saturday, though the real toll was probably much higher.
A five km area around a chemicals plant in the besieged northeastern city of Sumy the plant was hazardous due to an ammonia leak, Sumy regional Governor Dmytro Zhyvytskyy said. It was not known what caused the leak.
About 10 million Ukrainians had been displaced, including some 3.4 million who have fled to neighboring countries such as Poland, the UN refugee agency said.
In the southern city of Kherson, video seen by Reuters showed dozens of protesters, some wrapped in Ukraine’s blue-and-yellow flag, chanting “Go home” in Russian at two military vehicles with Russian markings. The vehicles turned and left.
“I want the war to be over, I want them [Russian forces] to leave Ukraine in peace,” said Margarita Morozova, 87, who survived Nazi Germany’s siege of Leningrad in World War Two and has lived in Kharkiv, eastern Ukraine, for the past 60 years. — Pavel Polityuk/Reuters
The Philippines’ presidential candidates debating on Saturday agreed on at least one thing and that was the need to hold social media firms liable for the spread of disinformation as the country prepares for elections on May 9.
With the coronavirus pandemic disrupting traditional campaigning, candidates and supporters are increasingly turning to social media to reach voters, prompting concerns about online hate speech and disinformation.
“Social media platforms should be made accountable because they are housing disinformation,” Vice President and opposition leader Maria Leonor “Leni” G. Robredo said in the debate.
Retired boxing champion Emmanuel “Manny” D. Pacquiao, who is also running for president, said creators of fake news should be punished.
Another candidate, Manila Mayor Francisco “Isko” M. Domagoso, also said social media firms should be held accountable for allowing fake accounts on their platforms.
The candidates did not name which social media companies could be punished.
Representatives for Meta Platforms’ Facebook, Alphabet’s YouTube, Twitter, and TikTok, all popular social media platforms in the Philippines, did not immediately respond to requests for comment.
Frontrunning candidate Ferdinand “Bongbong” R. Marcos, Jr., did not participate in the presidential debate organized by the country’s election body.
Analysts say the popularity of Mr. Marcos, the namesake and son of the Philippines’ late dictator, stems from an effective social media strategy targeting the youth.
More than 67 million Filipinos are eligible to vote on May 9 to select the Southeast Asian nation’s next president, vice president and roughly 18,000 local officials. —Reuters
In the spirit of a good meal that lasts several hours because the talking is just as satisfying as the eating, this B-Side episode continues on the social role of food.
This time, we’ll hear from Maria Angelica B. America, an advocate of sustainable development who also teaches economics to senior high school and university students.
She tells BusinessWorldreporter Jaspearl Emerald G. Tan that food is a matter of national identity.
TAKEAWAYS
Food is central to Filipino culture and community.
When Filipinos leave home, they cope by eating or cooking certain dishes that make them feel like they’re not so far away.
“Filipinos won’t be the same without our food … When we leave the country, we think, oh, when I want to feel more Filipino, I will cook, I will prepare, or I will eat Filipino food. It helps me get in touch with my Filipino identity,” said Ms. America.
Food creates a sense of belongingness.
A person first learns about the concept of belongingness through being fed by their parents, according to Ms. America.
“In an ideal situation, as the child grows up, he or she comes to equate feeding—or eating together for that matter—with the concept of family, of togetherness, of belongingness,” she said.
In cases where the family is not too expressive, food can take the place of words, especially when it comes to expressing difficult emotions, like saying sorry.
Food also helps people learn to fit into society, helping them form new bonds and strengthen old ones.
She noted that eating together is a sign of friendliness and community. “You show the intention to get to know somebody if you want to eat with them.”
Food is memory.
The pandemic “shook the fabric of society” because it took away the community aspect of Filipino life. “A lot of the things we did, we did together,” said Ms. America.
The most important events in a person’s life are often in the presence of food, she said, because “food amplifies the experience.”
“It might be simple food, but if it’s shared with great company, prepared with great company, you will always go back to that memory. That’s beautiful. That’s the power of food.”
The topic of sustainability in property development has surged since the world experienced Covid-19. Having to redefine the use of spaces, people soon realized how instrumental real estate is in the journey towards a more sustainable way of life. With the threat of climate change looming in the horizon and a growing population to sustain, the need to build more sustainable and resilient cities only continue to rise.
SM Prime traces its journey on sustainable design and development way before the concept has gone main stream. At the heart of SM is its commitment to serve its customers – designing its malls to bring better comfort and an enjoyable experience in every visit to SM Supermalls.
Sustainable Comfort
Built through several phases of development, SM Megamall, among SM’s 78 malls across the country, has grown into the complex it is today with 800 shops including 250 dining outlets and 16 anchor tenants. Customers explore the expanse of the 10-hectare development from its convenient parking grounds, relaxed atmosphere and beautiful façade. Behind this is sophisticated engineering anchored on sustainable design and technology.
SM Megamall is energy and water efficient. The building is enveloped with EIFS or Exterior Insulation Finishing Systems board which helps boosts wall insulation, making it more resistant to heat. It only uses LED lighting system allowing a 50% energy saving. The mall also tracks a lighting operating schedule following the supply requirement of our mall activity and does not contribute to environmental lighting pollution so as not disturb nocturnal animals. It also uses sensor activated escalators that contribute to about 30% energy savings. It’s air handling system uses high-efficiency air-conditioning system that has greater environmental stewardship. Lastly, it uses efficient water fixture for water savings and recycles water.
SM Megamall
SM Megamall works with the natural environment. The mall utilizes green walls, skylights and clerestory or a high section wall that contains windows above eye level to increase the flow of natural light. It is surrounded with plants of local varieties and selection of trees and shrubs.
SM Megamall Bicycle Racks
SM Megamall promotes mobility. Situated in the middle of EDSA, SM Megamall brings 550 buses into one integrated system to promote easier mobility. Green hybrid transports provide options for the more environmentally conscious passengers. All public transports are required to meet mandated emission levels in support of the Clean Air Act. The mall is pedestrian-friendly with about 1,595 square meters of covered walk ways. Throughout the mall, designated bike lanes and parking spaces are provided. Lastly, parking sensors not only make parking easier but has also reduced emissions in the parking areas.
SM Mega Tower
SM Megamall practices responsible materials management. The mall uses Echostop ceiling finish for noise absorption which is made from gypsum and paper liner made from 100% reclaimed and recycled paper. The Mega Tower uses insulated glass units which keeps heat out during summer months and Low E-glass to minimize the amount of ultraviolet light that comes through the windows, with both features maximizing energy savings. It also has a Material Recovery Facility dividing recyclables, biodegradable waste, residual waste and hazardous waste.
Environmental Strategy
All these initiatives are aligned with SM Prime’s environmental strategy of developing, designing, and building integrated lifestyle cities with sustainability and resiliency considerations in mind.
Echoing these efforts, SM Prime continues on its transition to clean energy. Aside from investing in energy efficient programs, the company is broadening its renewable energy investments. SM Prime targets to increase its demand for electricity sourced from renewables by more than 50% across all of its business segments by end of 2022 in support of the Department of Energy’s goal of moving the country’s renewable energy supply component up to 35% by the end of the decade.
Moreover, as part of a growing movement of responsible and sustainability-centered enterprises, SM Prime has joined the 2,500 organizations worldwide in supporting the Task Force on Climate-related Financial Disclosures (TCFD) and its goal of creating a more resilient financial system through better climate risk disclosures. Through this, it hopes to continue to drive its business to adopt more sustainability initiatives related to climate change.
At Hamilo Coast, SM property in Nasugbu, Batangas, it continues to uphold its commitment to sustainability and conservation as it planted 50,000 more mangroves which covers 100,000 square meters of the estate. This is also touted as one of the largest mangrove areas in Nasugbu. Hamilo Coast continues to protect its mangrove ecosystem together with the World Wide Fund for Nature (WWF) Philippines—a partnership it has nurtured since 2007.
Hamilo Coast also undertook the initiative to declare three of its coves, namely Pico de Loro, Etayo, and Santelmo as Marine Protected Areas in 2009.
SM is regreening the country sides through its tree planting program led by SM City Baguio. This is in partnership with the Philippine Military Academy (PMA), the Department of Environment and Natural Resources – Cordillera Administrative Region (DENR-CAR), Baguio Water District, the local government of Baguio City and 25 media organizations in Baguio.
As of January 2022, over 600,000 trees have already been planted in Baguio City and neighboring towns in Benguet.
SM further promotes sustainable practices through water recycling and the adoption of technologies that promote smart water use. In 2020, it was able to recycle 28.9 million cubic meters of water.
In terms of solid waste management, SM Prime has intensified its campaign by requiring all contractors to implement proper waste management procedures during construction. A long-running program through SM Cares, the monthly Trash to Cash (TTC) provides an avenue for the community, including properties’ tenants, to participate in solid waste management. This initiative ran for nine months in 74 malls and five SM Development Corporation properties in 2020, saving 134,067 seven-year-old trees to date.
It also undertakes paper recycling in partnership with the Trust International Paper Corporation and the responsible transport, treatment, storage and disposal or processing of the properties’ generated hazardous waste, compliant to the government’s implementing rules and regulations.
Resiliency as a Necessity
While SM serves millions of customers every day, its impact goes beyond its businesses – touching the lives of millions more in the communities wherever it is present. For a country like the Philippines, the impact of climate change can already be felt with typhoons getting stronger and more frequent.
Hans T. Sy, chairman of the Executive Committee of SM Prime has served in leadership roles in both national and international organizations focused on disaster resiliency and its impact to business and society. Leading by example, SM integrates disaster resiliency in its business strategy as well as its city and mall designs and developments. This, not only allows SM businesses to operate during calamities, instead, also helps communities become more resilient to typhoons.
“I believe in an age-old adage; an ounce of prevention is worth a pound of cure. SM Prime has taken deliberate steps to reinforce resiliency across its properties and provide a focused approach on sustainability in order to preserve communities and save lives,” said Mr. Sy.
Such is the impact created by SM Masinag.
Vermont Park Phase 1 is located near SM Masinag. For years, it would undergo flooding during typhoons. However, the story has changed. Since SM Masinag opened to serve the community, it has been equipped with a water catchment facility that can detain 17,681 cubic meters of water, which is equivalent to 7 Olympic size swimming pools. This helped control the flooding of nearby villages during typhoons.
Meanwhile, SM Marikina, which is also in a high-flood rate zone, is able to serve as first responder and a safe haven to affected families during times of calamities. This is because it is standing on 246 stilts with an elevation higher than the highest recorded water level rise in Marikina City.
Sustainability and Resiliency as Strong Foundations for Responsible Development
SM Prime anchors its development on both sustainability and disaster resiliency. For SM, both serve as strong foundations for responsible development – to address the increasing demand for urban areas and to address the threat of climate change.
From the onset of concept design, SM Prime allocates around 10% of capital expenditure to incorporate sustainability features and disaster resilience when building malls, offices and even integrated lifestyle cities.
“The safety of the communities, employees, customers, and the facility structure remains top priorities in all SM Prime developments. As I tell my design teams ever so frequently, ensuring safety is the only way I can sleep well,” Mr Sy said.”
For SM, this means the hard infrastructure capacities as well as how spaces are designed to facilitate mobility, green transport options, greener buildings and even green technology such as being powered by solar energy. As such, wherever SM operates, SM Prime makes every effort to help create the spaces and cities we need in order to sustain ourselves into the future.
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More than a health crisis, the COVID-19 pandemic has become an economic crisis as well, with the pandemic’s impacts reaching financial markets, as indicated in several ups and downs in share prices. In spite of such challenges, however, financial markets and institutions have pressed on and stood unwavering in performing their valuable roles in the economy.
BDO Unibank, Inc. (BDO), for its part, steadily serves its clients in the financial market as its products remain competitive and relevant.
Despite the volatility in the financial markets, the volume and returns on BDO’s investment funds have improved, with most funds outperforming their benchmarks. Such positive performance is reflected by its consolidated assets under management, which expanded by 22% year on year as of the third quarter of 2021. Moreover, the bank maintained its dominant position as it accounts for 38% of the market.
BDO’s participation in the capital markets cuts across several business lines, with its services involving investment banking, treasury, and wealth management.
BDO Capital and Investment Corporation (BDO Capital), the investment banking arm of BDO, continues to leverage on the bank’s extensive market knowledge and experience across a broad range of industries to service clients’ capital and funding requirements, as well as to support their recovery from the pandemic. Last year, BDO Capital participated in major equity and debt fundraising exercises, which include three initial public offerings and one follow-on offering.
The bank’s Treasury Group, meanwhile, supports the bank’s asset and liability requirements. The group’s portfolio strategy is to deploy funds prudently dependent on prevailing market conditions, invest selectively to build up its accrual portfolio, and tap longer-term funding sources to address BDO’s funding requirements.
In providing investment and wealth management services across the spectrum, BDO employs a segmented approach. The bank serves the high net worth segment through BDO Private Bank (BDOPB), while its Trust and Investments Group (TIG) and BDO Prime service, under BDO Securities, cater to the mass affluent segment.
Anchored on open architecture approach, these services allow clients to participate in a wide array of both local and global investment opportunities.
BDOPB creates bespoke solutions to meet clients’ unique investment requirements, which include anticipating client needs for higher-yielding instruments during the low-interest rate environment. With an emphasis on diversification, BDOPB was the first institution in the Philippines to adopt the open architecture approach, providing clients with access to investment opportunities beyond BDO proprietary products.
TIG, for its part, continues to seek alternative investments for clients to optimize their returns. This includes US dollar-denominated funds, which are offered as attractive investment outlets. Focused on propelling growth by further diversifying offshore investments, TIG is offering a variety of feeder Unit Investment Trust Funds (UITFs) to broaden foreign offerings and offer additional exposure to overseas capital markets. With these offerings, TIG maximizes on the recent performance of global equities as they provided better returns upon opening their economy earlier than emerging markets.
BDO Securities, on the other hand, aims to create a more comprehensive platform to serve both mass affluent and emerging affluent segments by providing a broader set of products and services that include equities, fixed income, UITFs, and mutual funds in both peso and US dollars. Notably, last year BDO Securities was ranked at #4 among Philippine Stock Exchange trading participants in terms of total value traded.
Alongside its broad approach in participating in the financial market, BDO likewise has a diversified and even upgraded menu of offerings for clients to avail of.
To address the evolving needs of its diverse clients, for instance, the TIG currently manages 25 different UITFs across a multi-asset, multi-currency, and multi-strategy platform.
In addition, BDO’s core offerings are regularly reviewed to strengthen its value proposition. As a result of these reviews, new products such as the BDO Money Manager and BDO Pension 360 were developed to address the growing needs of retail and institutional clients.
Further making BDO stand out in serving financial markets is its advocacy for socially responsible investing. Since 2015, it has made available the BDO ESG Equity Fund, the first Philippine investment fund that incorporates environmental, social, and governance factors in the selection of equity investments. The product responds to the demand of institutions, schools, non-profit organizations, and religious entities for a socially responsible fund.
BDO has taken this advocacy further through sustainability bonds. Recently, the BDO raised P52.7 billion-worth of Peso-denominated Fixed-Rate ASEAN Sustainability Bonds under its P365 billion Bond Program. This issuance, the first of its kind from BDO, is set to finance eligible assets under the BDO’s Sustainable Finance Framework.
For BDO, this is a new milestone as the bank exceeded its previous record of P40.1 billion for a single bond issuance. This is also by far the largest issuance for any Philippine financial institution or company.
These diverse and relevant offerings are coupled with BDO’s continuing support for the financial wellness and inclusive growth of its clients. The bank has a dedicated team that provides free financial education programs to clients. By educating Filipinos on the importance of investing to improve their financial well-being, BDO hopes to achieve the goal of converting Filipinos from savers to investors.
BDO’s various quality investment choices, put together with accessibility to new issues (through BDO Capital) and offshore investment outlets (via open architecture platform) and consistent above-industry performance, makes BDO a reliable brand in sustaining and boosting the financial market.
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The new Lexus RX boasts of style and safety, further enhancing the luxury driving experience that it offers and is known for.
The new Lexus RX’s features are a testament to Lexus’ ongoing commitment to upholding the vehicle’s status as a pioneer of the luxury SUV segment. RX has been refined from inside out and from the front to rear, including a new lighting technology geared towards a safer driving experience.
At the front of Lexus RX are the all-new headlamp, fog lights, grilles, and wheel arch moldings, while updated lighting and bumper are at its back.
Inside the Lexus RX are two USB charging ports, a mobile phone holder, Remote Touch Interface, and an available 12.3-inch EMV (Electro Multi Vision) touch display closer positioned to users and can now be utilized by the front passengers. In the rear, the vehicle’s third-row seats now feature two different seating positions. In addition to the traditional seating position, more leg space can now be occupied when needed.
Lexus RX’s driving character is also updated, embracing the brand’s exhilarating performance following the path of LC and LS flagship coupe and sedan. Engineers intensively examined the vehicle, enhancing the rigidity of the body and suspension system and adding in new shock absorbers and brake control system. Such upgrades provided excellent handling feel and precision that enables users to accurately trace their desired driving lines, thereby furthering their motoring experience.
Intelligent High Beams
Lexus equipped the new RX’s AHS (Adaptive High-beam System) with the world’s first BladeScan technology.
Understanding that many of the accidents between vehicles and pedestrians happen at night, this newly available high-beam system enhances the driver’s field of view. It gives them excellent visibility even in dark situations and a wider illumination area compared to conventional array-type lighting, with smooth and fine light distribution control.
BladeScan operates by rotating a mirror inside the AHS unit that enables the illumination area to expand further to cover the maximum field of view with minimal glare for drivers in front.
Such technology also activates automatically, being supported by a control unit inside the lamp that examines the surrounding through a front-facing camera, including vehicles ahead and ambient brightness, as well as processing vehicle speed and yaw-rate information to enable/disable and adjust the LEDs’ brightness to deliver optimum illumination.
As BladeScan augments the driver’s field of view, it also supports in identifying roadside pedestrians that happen to be crossing further ahead. Such technology, along with the award-winning Lexus Safety System+, supports the brand’s mission of ensuring the safest driving experience possible for the people inside and outside the vehicle in almost every type of road and environmental conditions.
Revised grille
Since its launch as an all-new model in 2016, the new Lexus RX sports a distinctive front fascia that gives its visual identity. Non-F-Sport RX models have their grille revised.
Amplifying its visual strength and distinctiveness, Lexus RX underwent minor changes to the shape of its spindle-shaped grille and was designed with a slightly raised bottom border to visually match the body sides.
The non-F-Sport RX is also no longer characterized by straight horizontal lines. It now wears an “L”-shaped block mesh that suggested the unity of the Lexus’ SUV lineup while serving more depth and character to the grille.
The new design also shows differing upper and lower sections. The mesh flow changes as it radiates outward from the central badge, creating a look with a sense of motion.
Being the face of vehicles, Lexus knows that front fascia transformation is significant. The revised grille highlights and adds more to RX’s luxurious design and experience.
The new Lexus RX comes in four different variants: RX 350 for P4,498,000; RX 350L for P4,978,000; RX 350 F-Sport for P5,158,000; and RX 450h for P5,398,000.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
A vendor arranges vegetables at a public market in Manila, March 16. — PHILIPPINE STAR/ RUSSEL PALMA
By Luz Wendy T. Noble, Reporter
THE BANGKO Sentral ng Pilipinas (BSP) is widely expected to maintain policy rates at record lows on Thursday in line with its signals it will continue to support economic recovery.
However, analysts said they are seeking more forward guidance from the BSP on its imminent tightening as the space to retain its accommodative stance is getting smaller.
A BusinessWorld poll last week showed 15 out of 17 analysts still anticipate the Monetary Board keeping rates on hold on March 24, the second policy review this year.
Analysts believe the BSP will remain focused on providing support for a more sustainable economic recovery despite inflationary risks caused by the Russia-Ukraine war.
“I think the BSP will maintain rates, since the problem (i.e., the Russia-Ukraine conflict and its ripple effect on world oil and commodity markets) is essentially cost-push in nature, which requires appropriate supply-side interventions from the government,” said Ser Percival K. Peña-Reyes, associate director at the Ateneo de Manila University Center for Economic Research and Development.
Global oil prices have been volatile in the recent weeks due to supply concerns arising from Russia’s invasion of Ukraine. Russia is the world’s second-biggest exporter of crude oil.
Latest data from the Department of Energy showed prices of gasoline, diesel, and kerosene increased by P20.35, P30.65, and P24.90 per liter since the start of the year.
Fuel retailers are expected to announce on Monday a hefty cut in pump prices, as global crude oil prices posted a weekly loss last Friday.
The Philippine economy is still below its pre-pandemic level, which strengthens the case for the BSP to stay on hold, analysts said.
“The economy will likely only return to its pre-pandemic level by the third quarter of 2022. As such, we believe that the central bank would only be comfortable to start tightening the monetary environment by the middle of the year,” Philippine National Bank economist Alvin Joseph A. Arogo said.
He expects the BSP to announce a rate hike at its policy review meeting on June 23.
“I certainly think that economic growth should still be the BSP’s focus, largely because the economy is still operating well below potential. Indeed, this is one of the reasons why we expect the bank to remain on hold throughout this entire year, despite the wave of interest rate tightening sweeping the globe,” said Miguel Chanco, senior Asia Economist at Pantheon Macroeconomics.
The economy expanded by 5.6% in 2021 after shrinking by a record 9.6% in 2020. However, gross domestic product (GDP) remained below its pre-pandemic level and is only expected to regain this within this year.
BSP Governor Benjamin E. Diokno has earlier said they would first want to see at least four consecutive quarters of economic growth before assessing the need for a rate hike.
In the fourth quarter of 2021, GDP grew by 7.7% — a third straight quarter of growth.
Meanwhile, two economists believe that inflation risks caused by the surge in oil prices are enough reason for the BSP to start increasing interest rates by at least 25 basis points (bps) on Thursday.
“We anticipate an escalating rise in prices of practically all prices of commodities for this month and the month to come due to the uncertainties brought about by the Ukraine-Russia war. This will bring about economic uncertainties that will linger,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said.
“I think this will call for a slow hike [in interest rates]. The effects of oil prices on inflation need to be tempered by an appropriate monetary policy,” Asian Institute of Management economist John Paolo R. Rivera said.
Inflation remained steady at 3% for the second straight month in February. However, the central bank said inflation could go beyond their 2-4% target in the second quarter if oil price increases are sustained.
Some analysts said that while the BSP will likely keep rates on hold this week, a more aggressive tightening may come in the next few months given the inflation risks caused by the war in Ukraine.
“We think the BSP will remain on hold this March 24, but should give stronger guidance on policy and the likelihood of an earlier-than-second half of 2022 policy action given that the window for monetary policy action may be narrowing with the current circumstances,” Security Bank Corp. Chief Economist Robert Dan J. Roces said.
He said the BSP’s current policy directive is similar to its stance of staying “behind the curve” when faster inflation was mostly caused by low supply.
“Clearly the key risk is the possibility that world commodity prices stay elevated for a prolonged period as a function of the Russia-Ukraine conflict, pressuring inflationary tendencies, and thus a preemptive hike may prove to be more and more prudent,” Mr. Roces said.
The US Federal Reserve’s policy tightening and its impact will also be another reason for an earlier rate hike, Makoto Tsuchiya, an economist at Oxford Economics said. For the first time since 2018, the Fed last week raised interest rates by 25 bps to quell a four-decade high inflation.
“High commodity prices are not only pushing up inflation but will also contribute to a larger current account deficit. With the US Fed set to raise rates by another 150-bp hike this year leading to a narrowing interest rate differential, we could see investors turn negative on Philippine assets, weakening the peso and putting pressure on the BSP to raise rates earlier,” he said.
Last week, Mr. Diokno said they do not necessarily need to move in tandem with the Fed, noting the BSP adjusts its policy setting only to the extent that external developments affect the outlook for growth and inflation.
The BSP chief also said they will wait until the second half of the year to start raising interest rates.
After Thursday, the Monetary Board’s next policy review is set on May 19. First-quarter GDP data will be released on May 12.
A Philippines peso note is seen in this picture illustration, June 2, 2017. — REUTERS
By Ana Olivia A. Tirona, Researcher
FOURTH-QUARTER lending by the Philippines’ biggest banks grew at the fastest pace since the start of the coronavirus disease 2019 (COVID-19) pandemic.
The latest edition of BusinessWorld’s quarterly banking report showed the aggregate loans of 46 universal and commercial banks (U/KBs) jumped by 5.93% year on year to P10.15 trillion in the fourth quarter, quicker than the 3.24% growth in the preceding quarter.
The latest performance reading marked the fastest in seven quarters, or since the year-on-year expansion of 9.73% recorded in the first three months of 2020.
Meanwhile, aggregate assets in the fourth quarter grew by 8.59% to P20.56 trillion, slower from the year-on-year growth of 8.97% in the third quarter of 2021 but quicker than the 5.59% seen in the same period in 2020.
The median return on equity (RoE), which is an indicator of profitability, slowed to 3.11% in the fourth quarter from the 3.36% in the preceding quarter and the 3.66% RoE in the fourth quarter of last year.
Bad loans, also known as nonperforming loans (NPLs), slipped by 7.11% to P371.65 billion in the October to December period, from P400.08 billion in the third quarter of 2021. Compared with the fourth quarter of 2020, NPLs grew by 20.34%.
This brought the NPL ratio, or the portion of bad loans to the total loan portfolio, to 3.95% in the fourth quarter, lower than the 4.49% in the preceding quarter. The NPL ratio was higher compared with 3.68% recorded in the final three months of 2020.
Loans are considered to be nonperforming once they are left unpaid at least 30 days beyond the due date. They pose a risk to the lenders’ asset quality as borrowers are likely to default on these debts.
Likewise, the U/KBs’ nonperforming asset (NPA) ratio — or the NPLs and foreclosed properties in proportion to total assets — stood at 1.27%, lower than the previous quarter’s 1.43%, but higher than 1.17% in 2020.
Relative to total assets, foreclosed real and other properties stood at 0.25%, dipping from third quarter’s 0.26%. This was also slightly lower compared with the 0.28% posted in the fourth quarter of 2020.
Total loan loss reserves reached P341.23 billion during the period, smaller than the preceding quarter’s P353.53 billion but bigger than P322.57 billion in 2020.
Big banks’ median capital adequacy ratio — or the ability to absorb losses from risk-weighted assets — stood at 21.30%. This was higher than 20.80% in the third quarter of 2021 and 20.14% in the fourth quarter of 2020. Still, the ratio remained well above the regulatory minimum of 10% set by the BSP as well as the international minimum standard of 8%.
When comparing U/KB’s in terms of combined assets, BDO Unibank, Inc. remained the top bank with P3.560 trillion. It was followed by Land Bank of the Philippines (LANDBANK) with P2.922 trillion and Metropolitan Bank & Trust Co. (Metrobank) with P2.507 trillion.
Banks that had the most deposits were BDO (with P2.822 trillion), LANDBANK (P2.569 trillion), and Bank of the Philippine Islands (P1.957 trillion).
BDO had the biggest loans issued with P2.320 trillion, followed by Bank of the Philippine Islands and Metrobank with P1.471 trillion and P1.209 trillion, respectively.
Among U/KBs with assets of at least P100 billion, Rizal Commercial Banking Corp. posted the fastest year-on-year asset growth with 24.62%, followed by LANDBANK (23.51%) and Robinsons Bank Corp. (18.64%).
LANDBANK also posted the fastest loan growth during the period with 25.59%, followed by Hongkong & Shanghai Banking Corp. Ltd.’s 15.01% and Robinsons Bank Corp.’s 13.92%.
BusinessWorld Research has been tracking the financial performance of the country’s largest banks on a quarterly basis since the late 1980s using banks’ published statements.
The full version of BusinessWorld’s quarterly banking report will soon be available for download at www.bworldonline.com.
THE COUNTRY’S outstanding external debt reached a record high in 2021 as the government continued to ramp up borrowings amid the pandemic.
Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Friday night showed external debt as of end-2021 reached $106.428 billion.
It increased by 8.1% from the $98.488-billion level as of end-2020. It is also the biggest so far based on available BSP data which dates back to 1985.
“Year on year, the country’s debt stock rose by $7.9 billion brought about by net availments of $9.8 billion, mainly by the National Government and prior periods’ adjustments of $3.8 billion,” the BSP said in a statement.
The rise in external borrowings was partially offset by the increase in residents’ investment in offshore debt papers.
The external debt is equivalent to 27% of the Philippine gross domestic product (GDP). This is slightly lower than 27.2% debt-to-GDP ratio logged in 2020, which was the biggest in seven years or since the 27.6% in 2013.
“External debt-to-GDP ratio as of end-2021 eased amid the faster growth in GDP that led to a bigger base as the economy reopened further towards greater normalcy,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The Philippine economy bounced back with a 5.6% growth in 2021 coming from the record 9.6% contraction in 2020.
Meanwhile, the debt-service ratio (DSR), which relates principal and interest payments to exports of goods and receipts from services and primary income, rose to 7.2% in 2021 from 6.7% in 2019 mainly due to higher payments.
The DSR is a gauge of adequacy of the country’s foreign exchange earnings in relation to meeting its maturing debt obligations.
External debt includes all types of borrowings by residents from non-residents.
Borrowings by the public sector slipped by 2% to $63.9 billion as of end-December from $65.2 billion as of end-September.
The bulk or $55.4 billion of public sector obligations were borrowings by the National Government, while the remaining $8.5 billion was made up of loans incurred by government-owned and -controlled corporations, government financial institutions and the BSP.
Meanwhile, private sector debt increased by 4.4% to $42.5 billion as of end-December from $40.7 billion as of end-September.
Japan ($14.6 billion), US ($3.8 billion), UK ($2.8 billion), and The Netherlands ($2.8 billion), were the top creditor countries last year.
Broken down, loans from multilateral and bilateral sources made up by 37% or the largest share of the external borrowings.
This was followed by borrowings in the form of bonds (34.7%) and obligations to foreign banks and other financial institutions (22.3%), while the rest (5.8%) were owed to other creditor types like suppliers and exporters.
Both the government and the private sector should gauge the risks that come from the weaker peso for decisions regarding external borrowings, Mr. Ricafort said.
“This would highlight the need for both the government and private sector to hedge foreign exchange risks for their respective borrowings, at the very least, to at least better manage risks inherent to foreign debt,” he said.
At its close of P52.335 per dollar on Friday, the peso has weakened by 2.6% from its P50.999 finish as of end-2021. As of end-2021, the peso weakened by 6.2% year on year.
For this year, the government set a budget deficit cap of P1.65 trillion which is equivalent to 7.7% of GDP.
National Treasurer Rosalia V. de Leon earlier said they expect 77% of debt will come from domestic borrowings. — Luz Wendy T. Noble
TOYOTA MOTOR Philippines Corp. (TMP), the country’s perennial “triple crown” winner (leading the auto industry in passenger, commercial, and total vehicle sales) recently revealed its attainment of two milestones. One is its 20th successive triple crown, notched in 2021; the other is its having sold two-million vehicles in cumulative sales since starting operations here in 1988.
Said TMP President Atsuhiro Okamoto in a release: “Surpassing the two-million mark would not be possible without the support of our loyal Toyota and Lexus customers, the commitment of our 73-strong Toyota dealer network, and of course the sense of ownership that every TMP team member has to our goal and responsibility of providing mobility for all. Thank you for making Philippines a Toyota country.”
He added, “As a way of thanking our loyal customers who are part of the two-million sales milestone, we promise that One Team Toyota PH, which is composed of TMP, our affiliates, and our entire dealer network, will continue working as one to provide the best possible ownership experience.”
TMP was established by Dr. George SK Ty through a “strong partnership” among GT Capital Holdings; Toyota Motor Corp.; and Mitsui & Co., Ltd. Over the past 34 years, the company has grown to become one of the top firms in the Philippines.
Today, it is one of the key manufacturers and distributors of Toyota in the Asia-Pacific region, making the Japan-headquartered car brand the leading auto marque in the Philippines for decades. At the end of 2021, it paced all firms in the sector, with a market share of 46.3%. This yearend market share is not only the highest in TMP history; it is also the highest in the ASEAN region.
“I would like to express my heartfelt gratitude to the generations of Toyota owners in the Philippines who have trusted and embraced the Toyota brand since TMP opened more than three decades ago,” remarked TMP Chairman Alfred Ty. “We are truly humbled that Filipinos have welcomed the Toyota brand as family, and we are grateful to be entrusted with the responsibility of helping the Philippines build a mobility-empowered society. Your continued trust and patronage inspire us to continuously improve and evolve our operations, so that we can help modernize mobility and contribute to nation-building.”
TMP currently operates the largest car manufacturing and assembly plant in the country to produce the best-selling Vios and Innova models. The company said that its operations contribute to the advancement of automotive manufacturing in the country, and provide livelihood to over 60,000 employees in the entire value chain. The Toyota group has invested a cumulative amount of P67 billion, and TMP achieved export sales totaling US$16.3 billion as of 2020.
The firm has also paid cumulative duties and taxes amounting to P426 billion as of the end of last year, and continues to hold programs in support of nation-building and the welfare of specific communities.
Since the start of its operations, TMP’s manufacturing plant has rolled out over 958,000 CKD units, producing some of the most iconic cars on the road — including the Crown, Corolla, Lite Ace, and Tamaraw. Today, TMP’s local manufacturing operations remain strong, selling over 35,000 Vios units (refer to graphic), the most of any passenger car, and more than 13,000 Innova units last year.
TMP said that what contributes to this preference of Filipinos for Toyota cars is the company’s promise of quality, durability, and reliability (QDR). But as both the market and customers’ requirements evolve, Mr. Okamoto said TMP is committed to lead in transforming the mobility landscape with a people-first approach.
“More than just selling cars, TMP is all about addressing people’s mobility needs,” he declared. “Through the years, we have been placing greater importance in improving customer service, value-chain offers, and overall Toyota ownership experience. We are assuring our customers that we are with them at every step of their customer journey, providing them flexibility, connectivity, convenience — all with the goal of producing mass happiness for all.”
Mr. Ty added that TMP’s attainment of its milestones also comes at the right time, as it is in the middle of a brand transformation initiative. “We are looking forward to a more exciting and promising future for our customers as we introduce more ways to move their world,” he concluded.
Inside the Lexus RX are two USB charging ports, a mobile phone holder, Remote Touch Interface, and an available 12.3-inch EMV (Electro Multi Vision) touch display closer positioned to users and can now be utilized by the front passengers. In the rear, the vehicle’s third-row seats now feature two different seating positions. In addition to the traditional seating position, more leg space can now be occupied when needed.
