3.87M more Filipinos became poor in the first half of 2021 – PSA

December 17, 2021 | 11:09 am

MORE FILIPINOS were driven into poverty in the first half of this year, the Philippine Statistics Authority (PSA) reported on Friday.

Results of the First Semester 2021 Official Poverty Statistics by the PSA placed poverty incidence among individuals — the proportion of Filipinos whose incomes fell below the per capita poverty threshold — at 23.7%, compared to the revised 21.1% recorded in the first half of 2018.

The latest poverty data translates to an increase of 3.87 million poor individuals to 26.14 million poor in the first half of 2021, the PSA said in a press conference.

The subsidence incidence among Filipinos — or the proportion of those whose incomes fell below the monthly food threshold — stood at 9.9% in the first semester of 2021 from 8.5% in the same six months in 2018.

Likewise, poverty incidence among Filipino families — or the proportion of those whose incomes fell below the poverty threshold — went up to 18% from 16.2%.

The subsistence incidence among families — or the proportion of those in extreme poverty — worsened to 7.1% from 6.2%.

Food threshold is the minimum income required to meet basic food needs and satisfy the nutritional requirements set by the Food and Nutrition Research Institute to ensure that one remains “economically and socially productive.”

Similarly, the poverty threshold is the minimum income needed to meet basic food and non-food needs such as clothing, housing, transportation, health, and education expenses.

The per capita poverty threshold in the first half of 2021 was P14,498 per month as compared to the P12,638 in the same period of 2018.

Meanwhile, the monthly poverty threshold for a family of five members was P12,082 versus the P10,532 in 2018’s first half.

The per capita food threshold was P10,071 per month in the first half 2021 as compared to P8,849 in the first half of 2018. For a family of five, the monthly food threshold in the first half of 2021 was P8,393 versus P7,374 in 2018’s first half.

The results also noted that incomes of poor families, on the average, fell 27% short of the poverty threshold in this year’s first half. This means that, on the average, an additional monthly income of P3,262 was needed by a poor family with five members to move out of poverty.

The data were derived from the Family Income and Expenditure Surveys (FIES) which the PSA conducts every three years. The 2021 FIES was conducted in July 2021 with a sample size of 174,007 families, in which the PSA noted “can provide reliable estimates at the national level and disaggregation by regional, provincial and highly urbanized cities.” — Ana Olivia A. Tirona

Celebrate feel-good moments together, even when miles apart with the McDelivery Share to Many

December 17, 2021 | 10:40 am

Thanks to the McDelivery Share to Many feature, you can share the light this holiday season by staying virtually connected with loved ones.

Friends and family that eat together, stay together! Although big, chaotic, and fun face-to-face gatherings are put on hold, McDonald’s found a way to brighten up the festivities even when celebrated apart.

With the McDelivery Share to Many, you can bond with friends and family over your McDonald’s favorites in the comfort and safety of your homes and despite being miles apart. This feature, exclusively available in the McDelivery App, can simultaneously deliver favorite McDo meals in multiple locations!

Whether you want to send your virtual guests individual menu items, Happy Meal orders for the little ones, or even food bundles via Holiday Group offers for a big feast, the McDelivery Share to Many feature will make sure the meals will arrive at everyone’s houses safe and ready to be devoured!

Celebrate and share the holiday cheer with family, friends, and colleagues by sharing and sending their favorite McDo meals via the McDelivery Share to Many! Head on over to the McDelivery website or download the App now through the App Store or Google Play, and make sure to follow McDonald’s on Facebook for more McDo announcements.

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Typhoon Rai weakens after pummelling central Philippines

December 17, 2021 | 10:08 am

MANILA – Typhoon Rai (Odette), one of the most powerful tropical storms to hit the Philippines this year, has weakened after slamming into southern and central parts of the Southeast Asian country, with one death reported so far, authorities said.Rai, which at one point intensified into a category 5 storm, the highest classification, toppled power and communication lines, damaged homes and displaced hundreds of thousands of people as it passed through the western portion of Visayas and mainland Palawan.“It has weakened as it crossed the mountains in the Visayas,” weather forecaster Aldzar Aurelio told DZBB radio on Friday.The Philippines’ disaster agency reported one typhoon-related death in its latest situational report. No details were provided yet.Rai, which saw winds of up to 195 km (121 miles) per hour before hitting land on Thursday, has been downgraded to a category 3 storm, according to Tropical Storm Risk. It was expected to exit the landmass via Palawan province and move out the country by Saturday.Storm warning signal 3 and 4 on the severity scale of 5 remain in some areas in the Western Visayas with high winds still being felt, a regional disaster official told DZBB radio.Bohol governor Arthur Yap has appealed for help as flooding in the province complicated rescue efforts. “Families are trapped on rooftops now,” he told DZBB radio. “All of us (first responders) here are affected.”The typhoon, the 15th to strike the Philippine archipelago this year, has forced the cancellation of dozens of flights, and paralyzed operations at several ports, leaving over 4,000 passengers, drivers and cargo helpers stranded.The Philippines postponed the start of a mass vaccination drive in most of the country because of the storm.About 20 typhoons hit the archipelago on average each year, according to weather authorities. — Reuters

Call center outsourcing Philippines done right

December 17, 2021 | 10:00 am

For over two decades, the Philippines has crafted a reputation as the top call center outsourcing destination on the planet. In fact, it has earned the moniker “Business Process Outsourcing Capital of the World,” largely due to the country’s success in delivering high-quality contact center solutions. There are many reasons for this, such as an educated workforce and ongoing government support. The biggest factor, however, is that premium call center providers in the Philippines have mastered a pricing structure that enables them to deliver world-class service consistently.

What many organizations looking for call center outsourcing in the Philippines fail to understand is that the cost structure of outsourcing has a direct impact on quality. An hourly rate for a premium call center outsourcing vendor average approximately US$12 to US$14 per hour. In contrast, a low-cost call center costs about US$6 to US$8 per hour. The difference? The premium call center delivers reliable, world-class service in the form of highly skilled agents and robust infrastructure. The low-end call center may be hard-pressed to even deliver the same agents on a week-to-week basis.

In the Philippines, demand for the best, brightest, and most highly skilled agents is fierce. In fact, the demand far outweighs the supply for call center staffing in the Philippines. “This imbalance has coincided with the explosive growth of the Business Process Outsourcing (BPO) industry in the Philippines over the years and has led to steadily increasing salaries. The country’s leading call center outsourcing providers and captive operators understand that they need to pay top dollar to attract and retain top talent,” says Ralf Ellspermann, CEO of PITON-Global, an award-winning, mid-sized call center outsourcing provider in the Philippines.

For the last twenty years, agent salaries have steadily increased at a rate of US$20 (P1,000) per year. Now, the Philippines’ premium BPO providers, third-party outsourcers and captive operators, pay a premium for top agents, with salaries of US$600 to US$800 (P30,000 to P40,000) per month. The days of hiring highly skilled, experienced, and English-proficient agents in the Philippines for US$2 to US$2.50 per hour are long gone.

Yet a low-cost call center in the Philippines that charges US$6 to US$8 per hour can only afford to allocate US$2 to US$2.50 for an agent’s salary, since there are other costs that must also be covered, such as the operating margin of 30%, cost of management, support, infrastructure, technologies, telco, utilities, etc. These low-cost contact centers simply do not generate enough revenue to be able to hire and retain the country’s top agents, who are needed to make programs work and to deliver a truly world-class Customer Experience (CX).

Over the last two decades, as the outsourcing industry has grown and matured in the Philippines; it has become one of the most highly desirable employment sectors for Filipino professionals. The industry enjoys full government support as well as highly focused curricula in the country’s leading universities dedicated to high-value specializations such as IT, AI, and R&D. As a result, the market for jobs at the leading outsourcing service providers in the country is thriving. “For Filipino professionals, it is also a point of pride to work for or represent some of the biggest brands in the world, such as Amazon, Facebook, and Google. Likewise, these leading Fortune 500 companies and SMEs are perfectly willing to offer top compensation packages to hire and retain the most talented and skilled agents in the country. They understand that doing so will allow them to deliver world-class CX and roll out higher-level business processes.”

Low-cost vendors cannot compete with this level of quality and service, and as a result, they are unable to hire and retain the top agents. When a low-cost call center in the Philippines can compete only on price, they will experience a revolving door of low-quality labor. “For low-cost vendors, it then becomes a race to the bottom, and for the companies that partner with them, the result is frustration, additional (unplanned) costs, and in most cases, program failures.

“However, for the organization that understands the value of working with a premium outsourcing call center in the Philippines, the result is quite the opposite. A slightly higher cost is directly proportional to the long-term success of the program and ultimately equates to outsourcing done right,” explains Mr. Ellspermann.

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Globe, multinational companies say ESG practice vital to business at Lead-In 2021

December 17, 2021 | 10:00 am

Globe and multinational companies stressed the importance of integrating environmental, social, and governance (ESG) practices in business operations as nations come out of the pandemic. It is necessary to put ESG at the core of every institution to build a better world.

ESG, as aligned to the United Nations Sustainable Development Goals (UN SDGs), aims for everyone to have equal opportunities to live a life that respects humanity and allows future generations to do the same.

Industry leaders spoke about the power of ESG integration on the future of enterprises at the 12^th Globe Business Leadership Innovation (Lead-In) Forum, which carried the theme “Bigger Picture, Greater Future: Redefining Success Beyond Business.” The annual event was attended by over 900 guests, including C-Level executives and heads from various industries.

Globe Chief Sustainability Officer and Senior Vice-President for Corporate Communications Yoly Crisanto said more Filipino consumers and companies are now embracing new ways of doing things under the ‘Great Reset.’ As a result, ESG targets are being placed alongside financial targets as top corporate priorities.

She said stakeholders worldwide, including employees, customers, shareholders and investors, are expecting businesses to be transparent and to stand for sustainable practices and ethical standards.

“There is no time to lose. We must evolve from outdated principles of unlimited access to resources and the primacy of shareholders to one that recognizes the limits and consequences of everything we extract, manufacture, consume, and put to waste. Above all, we must recognize our impact on humanity. Just like any transformative change, it begins within our organizations,” Ms. Crisanto pointed out.

Underpinning ESG is technology, which serves as a great enabler. Companies that are more mature in the digital space are winning the future because digital transformation has become a life essential. However, digital transformation with compassion for humanity will create more value moving forward, she added.

Globe is determined to do its part to help the country meet its commitment to the UN SDG 2030 agenda by making connectivity accessible for all, preserving the environment, creating economically viable jobs, and protecting human rights.

Lucas Joppa, Microsoft Corporation’s Chief Environmental Officer, also underscored the responsibility of enterprises to include ESG in their operations. “Building a solid society, working to improve the human experience, working to ensure that our economic systems don’t degrade our environmental systems — those are jobs for every type of organization,” he said.

On the other hand, Cesar Romero, President and CEO of Pilipinas Shell Petroleum Corporation, said that the environmental challenges, mainly global warming, are too big to be handled by just one sector of society, thus, the need for collective effort.

Just like Globe, Royal Dutch Shell has committed to achieving net-zero emissions by 2050. “We believe that in due consideration to nature and society, we need to work hand in hand with our customers in helping them achieve the net-zero emissions target. And similarly, allow our company to be a net-zero emission business by 2050,” he said.

For instance, Shell pushes the use of eco-bricks through a livelihood project in Cagayan de Oro City, which at the same time addresses plastic waste. The company also provides the community with renewable energy and solar power.

For his part, Managing Director, Member of the Management Committee of Ayala Corporation and Chief Operating Officer of iPeople, Inc. Alfredo Ayala said businesses can still pursue profit with purpose. “You can attract really passionate people when you have that purpose at the core of your organization. You can achieve a similar Return on Equity, but you have other dividends from the community, from HR, coming from retention and attraction. There are different types of profit, and there could be a lot of benefits above and beyond the numbers,” he explained.

Ayala Education has committed to providing quality and affordable education to significantly enhance the employability of graduates. Job creation is key to a nation’s success, thus, the importance of equipping students to become great employable citizens.

“Fast-forward today. I think we can say that we’ve dramatically reduced our environmental footprint and our footprint going forward. I think we’ve significantly increased our societal impact, all because of digital and our partners like Globe,” Mr. Ayala said.

Globe has maintained its status as among the world’s most socially and environmentally responsible companies, having been included in the FTSE4Good Index Series for six consecutive years. The index, administered by the Financial Times Stock Exchange Russell Group, measures the performance of businesses around the world that demonstrate strong ESG practices.

For more information about Globe Business, visit www.globe.com.ph/business/enterprise.

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Lemon-Dou® launches in the Philippines

December 17, 2021 | 9:50 am

P_4154_LEMON DUO HOME HERO TALENT_V3 SlimNoF-d — The entry of Lemon-Dou® in the country is seen as a response to the growing demand for lemon sour drinks and marks the first alcoholic beverage brand in the growing beverage portfolio of Coca-Cola in the Philippines.

One of Japan’s leading chu-hi drinks bound to make waves as Coca-Cola introduces its first alcoholic drink in the country

Lemon-Dou®, one of Japan’s growing chu-hi drinks, is now available in the Philippines in three different variants. The entry of Lemon-Dou® in the country is seen as a response to the increasing demand for refreshing lemon alcoholic drinks and marks the first alcoholic beverage brand in the growing beverage portfolio of Coca-Cola in the Philippines.

“At Coca-Cola, we’ve always strived to deliver innovations that center around what our consumers want, while ensuring that we evolve our business responsibly and sustainably as well. We continue to be bullish on our business here in the Philippines amidst the ongoing challenges of the pandemic — and the launch of Lemon-Dou, our first alcoholic brand in the country, is a tangible proof of that commitment. We are confident that Lemon-Dou will help further accelerate the high-growth trajectory of flavoured alcoholic drinks in the country,” said Tony del Rosario, President of Coca-Cola Philippines.

Inspired from the southern province of Kyushu, Japan – the birthplace of shochū over 500 years ago – Lemon-Dou was first introduced by Coca-Cola in 2018. After two years, the lemon-flavored alcoholic drink became one of Japan’s Nikkei Trendy top 5 trends in 2020.

Martyn Ferguson, Marketing Director for Emerging Brands of Coca-Cola ASEAN & South Pacific shared, “Lemon-Dou uses a closely-guarded traditional recipe from Coca-Cola. True to the Japanese philosophy of Kodawari, we’re very proud of how we have tapped into the strength of our global network to ensure that the quality of Lemon-Dou remains consistent when served to the Filipino legal age drinkers.”

Lemon-Dou is a play on “lemon,” the drink’s main ingredient, and the Japanese word “dou,” meaning house. Literally translated to “The House of Lemon,” Lemon-Dou uses crushed whole lemons, infused in alcohol and mixed with bubbles, which creates the great tasting, refreshing and full-bodied lemon-sour experience for the alcohol drinkers.

This newest Japanese-crafted chu-hi drink comes in three different variants: Honey Lemon– sweet taste & mild flavor with 3% alcohol level, Signature Lemon with the classic taste, bold lemon flavor and 5% alcohol level, and the Devil Lemon, a wickedly good taste with 9% alcohol content.

Globally, Coca-Cola adheres to a strict Global Responsible Marketing Policy to ensure that the company grows their alcohol brands, such as Lemon-Dou, in a responsible and sustainable way. This policy includes championing responsible consumption and marketing that does not appeal to people under the legal purchase age (LPA).

People of legal drinking age can now enjoy Lemon-Dou. It is available in major supermarkets nationwide, which includes SM Hypermarket, Waltermart, Robinsons Supermarket, Shopwise, Landmark Supermarket, Royal Duty Free, S&R, Lander’s, Alfamart, Puregold, as well as convenience stores such as 7-Eleven, Mini Stop, Family Mart, and Lawson. Lemon-Dou may also be ordered online via Boozy.ph, CokeBeverages.ph, Shopee, and Lazada as long as you are 18 years old and above.

For more information on Lemon-Dou, visit facebook.com/LemonDouPH/.

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On the way to recovery amid brief bumps

December 17, 2021 | 9:17 am

With less than a month left for 2021, the automotive industry in the Philippines has been seeing traces of recovery from the coronavirus disease 2019 (COVID-19) pandemic, as recent figures from industry associations show.

The latest joint figures from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA), released just a few days ago, show that as of November, the industry sold 240,642 units this year. This is an increase of 22.7% from the 196,197 units sold during the same period last year, and this exceeds 2020’s total sales of 223,793. To recall, CAMPI-TMA figures last year bared a 39.5% decline in sales due to pandemic-induced lockdowns.

“Surpassing our last year’s sales performance gives the industry a renewed hope that recovery is underway as restrictions started easing, and economic activities have resumed at improved levels,” CAMPI President Rommel R. Gutierrez was quoted as saying in a statement. “However, the industry remains cautious and on guard at the same time on the uncertainties brought by the COVID-19 mutations, which hopefully will not undermine our recovery.”

Within those 11 months, 76,813 units of passenger cars were sold, a 26% year-on-year (y-o-y) increase from 2020 sales; while 163,829 units of commercial vehicles were sold, indicating a 21% y-o-y jump.

Association of Vehicle Importers and Distributors, Inc. (AVID), meanwhile, released its most recent reported record back in October, which bared that in September year-to-date (YTD) total vehicle sales rose by 26% to 43,957 units.

Furthermore, YTD commercial vehicle sales rose 311% y-o-y to 917 units, while YTD light commercial vehicle sales increased 37% y-o-y to 31,444 units. YTD passenger car sales, however, tallied a 1% decline to 11,596 units.

“We have weathered the volatile market conditions of the third quarter. With improving health conditions and a more stable outlook, AVID is optimistic and driven to wind up this last quarter on a strong note,” Ma. Fe Perez-Agudo, president of AVID, was quoted as saying last October.

Imported duties and domestic boost

After the first half of the month witnessed a 56.1% increase in sales among manufacturers within CAMPI and TMA and 55% increase among AVID members compared to the same period last year, a notable development in the automotive industry took place.

Last July, the Tariff Commission issued its finding from its investigation that there is no basis for the imposition of safeguard duties on vehicle imports. The commission said that the cars subject to investigation were not imported in increased quantities and therefore could not seriously injure local groups.

For CAMPI’s Mr. Gutierrez, this finding eased the uncertainties brought about by the petition filed by the Philippine Metal Workers Alliance (PMA), an auto parts labor group, for safeguard measures on car imports.

Last August, meanwhile, witnessed an update on the Comprehensive Automotive Resurgence Strategy (CARS), a program offering fiscal support to car companies that each produce 200,000 units of high-volume car models in the country over a six-year period.

According to Trade Secretary Ramon M. Lopez, CARS participants Mitsubishi Motors Philippines Corp. and Toyota Motor Philippines Corp. have produced a total of 147,000 vehicles by last May. The manufacturers still have time to meet their deadlines in 2023 and 2024, respectively.

The Secretary added that CARS has so far generated P9.1 billion in capital expenditure investments, has created 100,000 jobs and registered nine parts makers, and has also saved the economy $700 million in foreign exchange as of June.

Mr. Lopez also said that the department, in building its electric vehicle (EV) strategy on CARS, is gearing up an “investment strategy to attract investments in key activities critical to the industry’s development such as the EV assembly, auto electronic and other parts manufacturing, EV battery charging and energy storage systems manufacturing, battery recycling, and engineering service outsourcing.”

Recent numbers

The second half of 2021 kicked off in July with a y-o-y increase of 4.7% in CAMPI’s and TMA’s vehicle sales and a 5% slip in AVID’s sales. Units sold amounted to 21,499 units and 4,862 units, respectively.

Sales in the following month were reflective of a stricter two-week lockdown in the National Capital Region and nearby provinces. CAMPI-TMA figures showed y-o-y 11.5% decline from 17,906 to 15,847 units; while AVID recorded an 18% y-o-y decline from 4,753 to 3,919 units, as well as a 19% month-on-month (m-o-m) fall.

In September, in light of eased restrictions, CAMPI and TMA tallied a 12% y-o-y drop from 24,523 to 21,493 units, although m-o-m improved by 35.6%. AVID also recorded a 12% y-o-y decline to 4,946 units, while m-o-m sales increased by 26%.

The drop and jump continued the following month for CAMPI and TMA members with a 10% y-o-y decline from 25,023 units to 22,581 and a 5.1% m-o-m rise.

Last month, CAMPI-TMA figures showed double-digit growths: a 14% y-o-y increase from 23,162 units to 26,456 units, as well as a 17.2% m-o-m rise, which CAMPI’s Mr. Gutierrez says is the highest monthly performance so far this year.

Outlook

As reported in BusinessWorld earlier in the year, Mr. Gutierrez stated he expects the industry to recover to pre-pandemic sales as late as 2023, while recovery depends on certainties in the market, consistent government policies, and widespread inoculation against COVID-19.

The CAMPI president pegged sales growth to 30-35%, although the projection was revised in September to 20.9% growth from actual sales recorded last year; while AVID’s Ms. Perez-Agudo last March pegged imported car sales up to 20%.

Aside from these growth projections, digital’s influence in automotive sales is expected to stick as recovery proceeds. “The paradigm shift to online sales and marketing methods and activities will definitely continue. This has become a viable strategy for the automotive industry to meet the needs of our stakeholders,” Mr. Gutierrez said this month. — Adrian Paul B. Conoza

Global automotive trends in 2022

December 17, 2021 | 9:15 am

The automotive industry has seen drastic impacts going back to the start of the pandemic, from vehicle sales crashing to keeping up with digitalization. Some transformations will continue to take place in the industry moving forward to 2022.

According to Fitch Ratings, global auto industry conditions could possibly improve next year, with the further recovery of demand and gradual easing of supply chain challenges.

The credit rating agency also forecasted global sales to increase. However, it is likely to be about 6% below the pre-pandemic level in 2019.

Fitch also mentioned that among other key items to watch for in the following year include the regulations on climate-related emissions becoming increasingly rigorous, the rapid growth of electric vehicles (EVs), and the continuing development of automated vehicles.

A push for sustainability

Awareness about environmental issues has made an impact on the automotive sector. With some targeting to reduce carbon emissions as part of the effort towards sustainable development, EVs increased its presence and would continue to be a trend that would reshape the industry in 2022.

According to Fitch, tightening emission regulations and government incentives can likely increase global EV sales next year.

However, the agency added that even with the increase in EV offerings and enhancement of battery technology, there are still worry over the range and the slow expansion of charging infrastructures, which could delay a major rise in the sales.

Similarly, in its 2022 automotive trends report, market research agency Kadence International cited a Deloitte study showing that consumers also expressed concerns on the driving range and the price of EVs.

“These are old worries and to some extent outdated, with ranges for EVs now often well over 400km. But they are likely to linger until the mass market is used to the presence of EVs — and more importantly, a visible EV infrastructure in terms of charging points. For innovators in this sector, price and infrastructure remain the most important levers to pull,” it said.

Advancing autonomous vehicles

Self-driving cars are also becoming more known recently. However, its advancement has several concerns to address along the way.

“Driverless cars have been part of the promised future for years, but the problems they pose — of AI, of laws and ethics, and of public perception — are still very hard to crack. ‘Yes…but not yet’ sums up the public response,” Kadence International said.

Basing on a US survey last June, the agency reported that even only 14% of the people found the prospect of autonomous vehicles fearful, only 36% said that they are eager to give up the full control of their vehicles.

“A lot of the concern around autonomous vehicles is around the car getting into an incident while you’re not engaged with the driving, so the newer generation of Advanced Driver Assistance Systems equipped vehicles make sure you do stay at least partially engaged by monitoring your awareness, alertness, tiredness, and other factors,” the agency shared.

More connected vehicles

Another technology advancing in the automotive sector are the in-vehicle connected services, which enable devices and systems within a vehicle to connect with one another and with other external or remote systems, explained Rohit Gupta, head of Products and Resources at Cognizant, in an article published by Automotive World. These have also been existing for some time, even before the rollout of EVs and autonomous vehicles.

“Compared with megatrends such as autonomy, the term ‘in-vehicle connected services’ certainly does not make sparks fly, but when viewed in-depth, it becomes an incredibly exciting market that will have a huge impact on most of our lives,” Mr. Gupta said.

Accelerated digitalization

Beyond advancing car features, the automotive industry has also accelerated its digital adoption. When the lockdown has forced several shops to consider selling online, several vehicle manufacturers do so as well.

Toyota Motor Philippines Corp. (TMP) is among those manufacturers that sped up its digitalization amid the pandemic. In August, TMP has launched its new and upgraded mobile app, the myTOYOTA, which allowed its users to explore its vehicle lineup, book car appointments, purchase vehicle upgrades and packages, and more. The app also includes a showroom feature that lets the users have a 360-degree virtual view of their chosen vehicles.

The global online car buying market has generated $237.93 billion last year, according to a report published by the Allied Market Research. It is expected to reach $722.79 billion by 2030, with a compound annual growth rate of 12.2% from this year to then.

2021’s most notable car releases

December 17, 2021 | 9:12 am

It has been a rough period for the Philippine auto industry. Yet despite the ongoing pandemic and the challenges it has brought, innovation and competition continue to drive development in the sector, as the country’s car makers position themselves to take advantage of the opportunities of an expected economic recovery.

This is a victory for Filipino consumers, who now have the pick of some of the best cars the industry has ever released. Here is a list of a few of them.

Toyota Vios

The country’s leading carmaker Toyota Motor Philippines (TMP) bolstered its already robust selection of models by introducing a new variant to its ever-popular Toyota Vios lineup. Backed by its TOYOTA GAZOO Racing brand, the Vios GR-S is a motorsports-inspired reinvention of the much-loved sedan, infusing it with a sporty upgraded design and new features.

The new Vios GR-S is Vios with a new look that’s ready for the racetrack with its striking exterior — marked with the prestigious GR emblem and featuring a sporty front bumper and grille, aerokit, and spoiler. Driver and passenger experience is also made to feel race-ready with the leather with red stitching on the wheel, shift lever and knob material, and suede/synthetic leather with red stitching seats. The 10-speed CVT transmission variant comes with 7 SRS airbags and clearance sonars for a safer drive, as well as easy smartphone apps access with the Apple Carplay and Android Auto compatibility.

Through the introduction of the Vios GR-S, the first GR-S model in its lineup, TMP intends to make sportier options available for racing fans and motorsports enthusiasts who want to express this passion through their daily drivers.

Honda City

The popular City model from Honda Cars Philippines, Inc. (HCPI) has climbed to the top of its class in the brand’s sales. With the All-New City Hatchback launched in the Philippines last April, Honda is expanding the model lineup with the brand’s newest offering in the hatchback category.

With improvements to the hatchback’s versatility, power, and fuel efficiency, the All-New City promises to easily adapt to a wide variety of the owner’s lifestyle and needs. Notable interior features such as the One Push with Smart Entry and Remote Engine Start System, 8-inch Advanced Touchscreen Display Audio with Apple CarPlay Android Auto & WebLink connectivity add to the comfort, convenience, and ease of access for the customers.

Under the hood is the All-New City Hatchback’s 1.5-Liter 4 Cylinder DOHC i-VTEC engine that produces maximum power output of 121ps at 6,600 rpm and 145 Nm of torque at 4,300 rpm. This reaffirms the model’s released official fuel economy run result last May 2021, in partnership with Automobile Association of the Philippines (AAP), which achieved a fuel mileage of 25 kilometers per liter after a total of 73.5 kilometers highway day driving.

MG ZST

MG Philippines introduced the new MG ZST Crossover SUV as the latest vehicle to join its roster of modern, safe, stylish, British heritage cars. The ZST is the latest in the ZS model lineup currently available from MG Philippines, namely the Alpha AT, Style AT, and Core MT variants.

Featuring a new, 1.3-liter, three-cylinder engine that is capable of producing 160 horsepower and 230 Nm of torque, the ZST exemplifies the crossover’s punchy, turbocharged power. And with a new 6-speed automatic transmission with manual sports mode, drivers will enjoy smooth, efficient delivery of power to the wheels.

A new, Obsidian Matrix grille and full-LED projector headlights give the ZST an athletic countenance while its 17-inch, two-tone “Tomahawk” wheels wrapped in wide, low-profile tires, and red brake calipers give the car a sporty stance. Gloss black exterior door panel accents, a widened front air dam, and reimagined body lines convey speed and power. With these, among other features, the ZST conveys a presence that is both striking and impressive; but still very approachable, and youthful in spirit.

Ford Ranger

Highlighting its commitment to its customers, Ford’s engineers and designers teamed up with customers around the world to create a pickup they can rely on for work, family and play in the newest generation of the Ford Ranger.

The result is a visually bold and confident design, with a purposeful exterior that shares Ford’s global truck design DNA. The design features a defined new grille, and signature C-clamp headlight treatment at the front while a subtle shoulder line down the sides incorporates bolder wheel-arches that gives Ranger a sure-footed stance. For the first time, Ford Ranger offers matrix LED headlights. At the back, the taillights are designed in harmony with the signature graphics on the front. Inside, the car-like cabin steps up, using premium soft-touch materials, and prominent portrait-style center touchscreen with Ford’s signature SYNC®1 4 connectivity and entertainment system.

The next-gen Ranger project was led by Ford’s Product Development Center in Australia. Its international team of dedicated designers and engineers worked with teams around the globe to not only incorporate the very latest in Ford technology, capability and safety, but to also engineer and test the Ranger to Ford’s toughest standards.

Mitsubishi Xpander

Known as a nameplate that shook up the MPV segment in the country when it launched in 2018, Mitsubishi’s Xpander line challenged the traditional conservative and practical reputation of multi-purpose vehicles with its bold and sporty design. The Xpander was the first Mitsubishi Motors vehicle to carry the dynamic shield that embodies strength and exudes confidence, and it has since made itself one of the most popular vehicles in its category.

In November, the Mitsubishi Xpander further refined its signature characteristics with the new Xpander Black Series. The award-winning MPV has been updated with a more elegant look with new black accessory accents incorporated. At the front, the grille, dynamic shield garnish, lower bumper, fog light bezel and door mirrors are converted to black to project an aggressive style. Of course, the side and back profile, the sill garnish, door handles, panel moldings, rear lower bumper and 17-inch alloy wheels are all painted in black for good measure.

Safe and creative ways to celebrate Christmas

December 17, 2021 | 9:10 am

This Christmas season is a time to gather and celebrate with loved ones after going through another difficult year into the pandemic. And with the gradual relaxation of quarantine restrictions and continued inoculation against the coronavirus, some people may envision a better Christmas celebration this year.

Still, even when shopping malls, tourist destinations, or other public spaces are open to spending the holiday with families or friends, protective measures should be maintained. It is critical to keep in mind that the world still battles with COVID-19 and the emerging variants. Hence, ensuring to protect oneself and the surrounded people is the most essential tip for a safer yet merrier Christmas.

People have a choice to celebrate Christmas physically or digitally. Either way, they can make the festivity more joyful this year.

With the aforesaid loosening of travel restrictions, people may want to physically see loved ones for the holiday. To make the environment safe as possible this holiday season, the World Health Organization (WHO) said to increase ventilation or meet with the people outside especially when the indoor spaces are small and lack good ventilation.

“COVID-19 is more easily transmitted in crowded and poorly ventilated spaces and where people spend long periods of time together. Settings with increased risk of outbreaks include restaurants, choir practices, fitness classes, karaoke bars and nightclubs, offices and places of worship,” WHO explained in a story published on its website.

The agency also reminded to avoid the “3Cs”, which meant spaces that are “closed, crowded, or involve close contact.”

If one cannot avoid crowded or indoor venues, WHO suggested to open the windows to increase the amount of natural ventilation, properly wear a mask, maintain a physical distance, and limit the time spent in indoor settings.

Keeping good respiratory and hand hygiene as well as getting vaccinated as soon as it is one’s turn are also among the protective measures to practice this holiday season — and perhaps even beyond.

But to make the Christmas celebration with loved ones safer, going digital is a space to gather again. With technologies getting more advanced and accessible, there are more ways to celebrate the holiday from a distance.

For one, maximizing the online stores developing on the digital space will enable one to shop for gifts for loved ones without having to wrestle with crowds flocking the malls. And with a range of delivery services also available, sending these presents is possible even not meeting in person.

Also, while one may want to indulge their families and friends by splurging them with extravagant gifts, one may consider giving practical gifts instead. The pandemic year has already caused financial troubles and uncertainties for some. So, better to ask them about products or services that they truly want or need to make sure that they would actually use them.

Aside from giving gifts, one can also use delivery services by sending food to loved ones. Whether homemade treats or favorite foods from nearby restaurants, sharing food this holiday with someone from afar can work with such a digital service.

And for a more creative way to send these gifts or foods, including a Christmas card along can be more meaningful. But instead of buying cards, try to craft on one’s own. Putting an effort to design and write a Christmas card can add a smile to the faces of loved ones.

Munching these delights for the Noche Buena, opening up the gifts, or sharing special messages for one another on Christmas can also be done with families or friends at the same time via a virtual celebration. To gather loved ones around the Christmas tree, one can set up a video chat through Facebook Messenger or Zoom.

The virtual celebration can also include playing games, having a movie marathon of holiday classics, and digitalizing or creating a new family tradition during the holiday.

As more people get used to connecting in a video call platform nowadays, families and friends can gather more and create indelible memories of celebrating Christmas in the digital world.

While celebrating the holiday with loved ones is special, one can make it better by sharing the spirit of Christmas beyond the people close to them. Whether on one’s own or with family and friends, celebrating the holiday season can also involve giving back to the community by donating or volunteering, which can perhaps become an annual tradition with loved ones.

For a meaningful holiday, one can start taking part in donations through foundations helping Filipinos in need and making the holiday season more joyful for them.

Such activity will not only make a better gathering with families and friends for the holiday but also help in making Christmas celebration and even the following days better for more people as well. — Chelsey Keith P. Ignacio

Envisioning a net-zero future and what it will take to get there

December 17, 2021 | 9:05 am

With the United Nations Conference on Climate Change (COP26) recently concluded in November, the world at large has reaffirmed its ongoing commitment to address the climate crisis before it is too late, with world leaders, business executives, non-government organizations, and environmental groups taking the charge.

To adequately respond to the wide-reaching scope of the climate change problem, COP26 had countries pledge toward the pursuit of goals from environmental restoration, conservation, and protection; to net zero goals; reducing methane emissions; transitioning from fossil fuels, and more.

The Philippines has previously pledged to cut its greenhouse gas emissions to a 75% reduction by 2030. Corporations have followed suit, with business giants such as Meralco, and the SM Group of Companies among others announcing their sustainability commitments. The Ayala Corp. in particular has recently committed to achieving net zero greenhouse gases by 2050, in alignment with the goal of mitigating global warming.

Yet is this enough? In a recent report, the Intergovernmental Panel on Climate Change (IPCC) predicted that, should the world not drastically reduce its carbon emissions, it has a 50% chance of exceeding a 1.5°C temperature threshold within the next few decades — warming levels that endanger the lives of millions through extreme heatwaves, droughts, floods, and typhoons.

The Emissions Gap Report 2021 released by the UN Environment Programme showed that new national climate pledges combined with other mitigation measures put the world on track for a global temperature rise of 2.7°C by the end of the century, well above the 1.5°C goal.

“The clock is ticking loudly,” Inger Andersen, UN Environment Programme executive director, said in the report. “Nations must put in place the policies to meet their new commitments and start implementing them immediately. Then they must zero in on net zero, ensuring these long-term commitments are linked to the nationally determined contributions, and that action is brought forward. It is time to get the policies in place to back the raised ambitions and, again, start implementing them. This cannot happen in five years. Or in three years. This needs to start happening now.”

Another report by the International Energy Agency (IEA) found that climate pledges from governments so far will fall well short of what is needed.

The “Net Zero by 2050: a Roadmap for the Global Energy Sector” said that while the world has a viable pathway to building a global energy sector with net-zero emissions in 2050, but it is narrow and requires an unprecedented transformation of how energy is produced, transported and used globally.

“Climate pledges by governments to date — even if fully achieved — would fall well short of what is required to bring global energy-related carbon dioxide (CO2) emissions to net zero by 2050 and give the world an even chance of limiting the global temperature rise to 1.5°C,” the report said.

The global energy sector accounts for the lion’s share of the greenhouse gas emissions largely responsible for climate change, alongside agriculture, forestry and land use, and manufacturing.

The IEA report is the world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth.

The roadmap aims to illustrate this journey by setting out more than 400 milestones to achieving net zero by 2050. These include, from today, no investment in new fossil fuel supply projects, and no further final investment decisions for new unabated coal plants. By 2035, there are no sales of new internal combustion engine passenger cars, and by 2040, the global electricity sector has already reached net-zero emissions.

Innovation is a key part of the plan. While the roadmap shows that the available technologies today can put the world on the right path, to reach net zero emissions by 2050, there needs to be widespread use of technologies like advanced batteries, direct air capture, and electrolyzers for hydrogen — technologies that are only at the demonstration or prototype phase today.

This demands that governments quickly increase and reprioritize their spending on research and development – as well as on demonstrating and deploying clean energy technologies – putting them at the core of energy and climate policy. A transition of such scale and speed cannot be achieved without sustained support and participation from citizens, whose lives will be affected in multiple ways.

“The clean energy transition is for and about people,” Fatih Birol, IEA executive director, said in the report.

“Our Roadmap shows that the enormous challenge of rapidly transitioning to a net zero energy system is also a huge opportunity for our economies. The transition must be fair and inclusive, leaving nobody behind. We have to ensure that developing economies receive the financing and technological know-how they need to build out their energy systems to meet the needs of their expanding populations and economies in a sustainable way,” he added. — Bjorn Biel M. Beltran

Ayala commits to achieve net zero by 2050

December 17, 2021 | 9:00 am

Fernando-Zobel-de-Ayala-OL — Ayala Corporation President & CEO Fernando Zobel de Ayala, during the group’s Integrated Corporate Governance, Risk Management, and Sustainability Summit, said, 'As Ayala’s concrete contribution to the well-being of future generations of Filipinos, we are announcing our commitment to achieve net zero greenhouse gas emissions by 2050. We are aligning ourselves with the global movement for climate action as our way to help secure our country’s future from the threats brought by climate change. We believe that we have the capabilities and collective will to make this happen.'

Ayala Corporation, one of the largest conglomerates in the country, is committing to achieve net zero greenhouse gas emissions by 2050, as announced recently by its President & CEO Fernando Zobel de Ayala during the group’s Integrated Corporate Governance, Risk Management, and Sustainability Summit.

“As Ayala’s concrete contribution to the well-being of future generations of Filipinos, we are announcing our commitment to achieve net zero greenhouse gas emissions by 2050. We are aligning ourselves with the global movement for climate action as our way to help secure our country’s future from the threats brought by climate change. We believe that we have the capabilities and collective will to make this happen,” Mr. Zobel said.

Ayala aligns its business strategy with the Paris Agreement’s goal of limiting global warming to 1.5°C compared to pre-industrial levels. As such, Ayala commits to set targets aligned with science that cover the following: Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from generation of purchased electricity), and all relevant Scope 3 (all other indirect emissions that occur in value chain). Scope 3 emissions are expected to make up the majority of Ayala’s footprint and can be complex to address, but Ayala is committed to net zero best practices and driving meaningful change in its business ecosystem.

Prior to Ayala’s net zero by 2050 announcement, its core business units have initiated the following climate-action interventions:

Ayala Land pushes for offsetting its Scope 1 and 2 emissions by 2022 for its commercial operations;
BPI will not finance new greenfield coal power generation projects. The Bank will reduce its coal power generation exposure to half of 2020 by 2026 and to zero by end of 2032;
Globe, a participant to the Race to Zero and a signatory to the Science-Based Targets Initiative (SBTi), has shifted to buying energy directly from renewable energy producers for its headquarters in Taguig and six offices and facilities since 2019;
AC Energy is on its way to installing 5GW of renewable energy by 2025;
Ayala Corporation’s Project Kasibulan, a reforestation, forest protection, and biodiversity conservation program for carbon sequestration is to be piloted in the island of Mindoro.

To develop a net zero road map, Ayala partners with South Pole, a leading project developer and global climate solutions provider that works with private organizations and governments worldwide. This partnership enables the group to have an accurate view of emissions across its core business units and a tangible road map for reducing them in line with its net zero by 2050 ambition. In the next 12 months, Ayala and South Pole will:

Develop a detailed greenhouse gas footprint that includes all relevant Scope 3 emissions from the value chain, which is considered net zero best practice;
Assess potential emission reduction activities and strategies to help Ayala prioritize and budget for these interventions across its core business units, ensuring practical steps are taken to reduce emissions as quickly as possible;
Establish interim targets aligned with a science-based 1.5°C pathway across the core business units to ensure Ayala has robust and measurable milestones along its journey to net zero by 2050.

Ayala Corporation and its core business units are signatories to the Taskforce on Climate-related Financial Disclosures (TCFD) and are currently working to implement the 11 recommended disclosures. This year, Ayala focuses on determining the actual and potential impacts of climate-related risks and opportunities on its businesses, strategy, and financial planning. A physical and transition-risk analysis is well under way.

Ayala’s announcement of its net zero by 2050 ambition came ahead of the 26^th United Nations Climate Change Conference of the Parties (COP26), which was held in Glasgow, United Kingdom last November 2021, where signatories to the Paris Agreement reported back on progress made since 2015.

Last April, the Philippines submitted its first nationally determined contribution to the Paris Agreement, committing to a projected greenhouse gas emission reduction and avoidance target of 75% by 2030.

Ayala believes that accelerating climate action is part of its recovery road map. Despite the challenges of COVID-19, global companies have moved towards net zero. Capital has been flowing to sustainable investments as a growing number of investors and lenders walk away from carbon-intensive sectors. And while a net zero ambition entails risks and costs, Mr. Zobel sees it as a long-term investment for the future generations, aptly defining Ayala as a catalyst and partner for net zero transition in the Philippines.

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