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DigiPlus earmarks up to P3B for 2025 capex

DIGIPLUS.COM.PH

LISTED digital entertainment company DigiPlus Interactive Corp. is allocating up to P3 billion for its capital expenditures (capex) this year as it pursues further expansion.

“It’s P2.5 billion to P3 billion for 2025. This includes maintenance capex for the Philippines,” DigiPlus Vice-President for Investor Relations Celeste M. Jovenir said at a recent media briefing. The 2025 capex budget exceeds last year’s allocation of P1.5 to P2 billion.

DigiPlus doubled its registered user base in 2024 to over 40 million, up from 20 million in 2023, driven by new game offerings.

Asked about the company’s Brazil expansion, Ms. Jovenir said it has yet to finalize the total capex allocation.

“For the rest of the capex for Brazil, we haven’t determined it yet because we’re still finalizing the plans and building the team,” she said.

DigiPlus previously earmarked P660 million for the first three months of its planned Brazil expansion.

“The P660 million includes the license and operating expenses for the first three months,” Ms. Jovenir said.

The company’s Brazil operations, expected to launch by late 2025, will initially focus on sports betting through the Arena Plus platform.

DigiPlus is also exploring a potential local partnership for its Brazil expansion and has engaged a Brazilian investment bank to identify possible partners.

In January, DigiPlus announced that its subsidiary, DigiPlus Brazil Interactive Ltda., secured a gaming license from the Brazilian Ministry of Finance’s Secretariat of Prizes and Bets.

The license allows DigiPlus to operate land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities in Brazil.

The company aims to tap into Brazil’s population of over 200 million and leverage the recent liberalization of its gaming market.

DigiPlus shares last traded on Feb. 14 at P35.50 per share. — Revin Mikhael D. Ochave

T-bill, bond rates may climb as BSP pauses cuts

RJ JOQUICO-UNSPLASH

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week may rise after the Bangko Sentral ng Pilipinas (BSP) unexpectedly paused its easing cycle.

The Bureau of the Treasury (BTr) will auction off P22 billion in T-bills on Monday, or P7 billion each in 91- and 182-day papers and P8 billion in 364-day papers.

On Tuesday, the government will offer P30 billion in reissued 10-year T-bonds with a remaining life of eight years and 11 months.

T-bill and T-bond auction yields may track the broad rise in secondary market rates after the BSP surprised markets by keeping benchmark rates unchanged, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Secondary market rates rose sharply after the BSP’s surprise decision but corrected slightly to end the week as BSP Governor Eli M. Remolona, Jr. hinted at another cut in big banks’ reserve requirement ratio (RRR), a trader said in an e-mail.

At the secondary market on Friday, the 182- and 364-day T-bills rose by 6.82 basis points (bps) and 2.3 bps week on week to end at 5.5641% and 5.7431%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Feb. 14 published on the Philippine Dealing System’s website. Meanwhile, the 91-day paper went down by 1.2 bps to yield 5.1577%.

For its part, the 10-year bond saw its yield increase by 1.35 bps week on week to end at 6.1313%.

The BSP unexpectedly held interest rates steady on Thursday as global uncertainties threaten the outlook for inflation and growth.

At its first policy meeting of the year, the Monetary Board left the target reverse repurchase rate unchanged at 5.75%. Rates on the overnight deposit and lending facilities were also kept at 5.25% and 6.25%, respectively.

The central bank had cut rates by 25 bps at each of its last three meetings since August 2024.

The BSP’s decision came as a surprise after 19 out of 20 analysts polled by BusinessWorld had anticipated a 25-bp cut at Thursday’s meeting. Only one analyst expected the BSP to keep rates steady.

“Normally, we would have cut further, but something has changed. The thing that has changed is the uncertainty over what’s going on globally, especially the uncertainty over trade policy,” Mr. Remolona said.

Meanwhile, he said the BSP could cut big banks’ reserve ratio to 5% from 7% within the year.

The BSP in October reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%.

Last week, the BTr raised P22 billion as planned from the T-bills it auctioned off as total bids reached P50.113 billion or more than twice the amount on offer.

Broken down, the Treasury borrowed the programmed P7 billion via the 91-day T-bills as tenders for the tenor reached P19.238 billion. The three-month paper was quoted at an average rate of 5.128%, rising by 2.7 bps from the previous auction, with accepted rates ranging from 5.10% to 5.148%.

The government also made a full P7-billion award of the 182-day securities as bids stood at P14.95 billion. The average rate of the six-month T-bill stood at 5.562%, 8.5 bps higher than the previous week. Tenders accepted by the BTr carried rates of 5.5% to 5.59%.

Lastly, the Treasury raised P8 billion as planned via the 364-day debt papers as demand for the tenor totaled P15.925 billion. The average rate of the one-year debt increased by 5.5 bps to 5.726%, with bids accepted having rates of 5.69% to 5.765%.

Meanwhile, the reissued 10-year bonds on offer on Tuesday were last auctioned off on Jan. 21, where the BTr raised P30 billion as planned at an average rate of 6.251%.

The Treasury is looking to raise P203 billion from the domestic market this month, or P88 billion from T-bills and P115 billion from T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy

Ace age

The Mini Aceman, priced at P3.55 million, slots in between the bigger Countryman and smaller Cooper Five-Door. — PHOTO BY KAP MACEDA AGUILA

Mini PHL adds a crossover to its EV lineup

EVIDENCED BY our conversations on the sidelines of many a brand a model his Autohub Group has launched over the years, Willy Tee Ten has always been a staunch believer of the inevitability of electric (or, at least, electrified) vehicles.

In the case of iconic UK brand Mini, Mr. Tee Ten had declared during the inauguration of the flagship Bonifacio Global City location back in early 2023 that the facility was already “future-proof,” ready for the then yet-to-arrive full-electric Minis.

The BEVs did finally get here in October 2024 and, just last week, Mini Philippines stepped up the charge anew with the unveiling of the first from-the-ground-up electric model of the brand, the Aceman. The reveal happily coincided with the 15th anniversary of the brand under Autohub here, and Mini Philippines additionally pulled the cover off the newest iteration of the Mini Cooper Five-Door.

“We’re very happy with what Mini has done over the years, and we’re happy that they’re going for new energy vehicles. I hope more people will get to try them,” declared Mr. Tee Ten to members of the media who spoke with him after the unveiling.

Positioned as the “first crossover model for the premium small car segment,” the first-ever Mini Aceman, priced at P3.55 million, is hailed as a “contemporary interpretation of classic Mini inventor Sir Alec Issigonis’ underlying vision: maximum utilization of space with a minimum footprint, combined with a modern drive concept.” Measuring 4.07 meters (m) in length, 1.75m in width, and 1.5m in height, the Aceman slots in between the Mini Cooper and the larger Mini Countryman.

As with the latest iteration of its Mini siblings, the Aceman promises an “immersive digital user experience,” along with the go-kart handling the brand is known for. Said Mr. Tee Ten in a release, “This exceptional car combines Mini’s signature urban adventure spirit with iconic design elements to inspire a new generation of drivers leading the way in fashion, technology, and culture. We are confident this new all-electric Mini Aceman will provide a thrilling city-driving experience.”

The not-so-secret sauce of this EV lies in a high-voltage battery that submits 160kW and 330Nm, expected to send the vehicle from a standstill to 100kph in 7.1 seconds — onto a top speed of 170kph. The battery’s 54.2-kWh energy content translates to a range of up to 407 kilometers between charging cycles, according to WLTP standards. That’s not bad at all for people still on the fence about the viability of EVs owing to range anxiety.

A unique headlight form fringes a familiar grille, set in “highly contrasting accents” to make the model stand out. A silver octagonal shape extends to the lower lip of the front air dam. LED daytime running lighting surrounds the main headlight arrays (also LEDs), and can be engaged in three different modes.

In the cabin, the Mini Aceman expresses a reductionist theme — interpreting design in three key elements: an “easy-to-handle steering wheel,” a central, 240-mm OLED display reflects the classic outsized circular one of the brand, and remodeled toggle switches. Color-adjustable ambient lighting runs along the roof frame, while free-standing door handles and speaker covers in a so-called Vibrant Silver finish are aligned diagonally. Curved surfaces within are covered with knitted material “in which the lower color shines through the upper one.” Extending to the interior door trim, the easy-care, versatile structure is made of recycled polyester. Seats are covered in perforated Vescin.

Going back to the central OLED display, it features Mini Operating System 9 and “enables all driving functions to be operated intuitively by touch or voice. A center for both comfort and experience, the Mini Interaction Unit is handled in a similar way to a smartphone.”

On the other hand, the Mini Cooper Five-Door is available in an all-new guise. Its sole variant here, priced at P3.799 million, is exclusively powered by an ICE. Still featuring the classic elements of the Cooper line — short overhangs, a small bonnet, a long wheelbase, and large wheels — the Cooper Five-Door stretches 4.036m, is 1.744-m wide, and is 1.464-m tall. Mini Philippines said that its dimensions are similar to the outgoing model and reflects the same ethos: “To create as much space as possible on a small footprint.”

Under the hood is a 2.0-liter Mini TwinPower Turbo engine mated to a seven-speed dual clutch transmission. Maximum output is 198hp and 300Nm, with a zero-to-100kph time of 6.6 seconds and a top rate of 242kph. Versus the Three-Door, the Five-Door’s wheelbase is 72-mm longer, and its body is 172-mm longer — translating to more space in the cabin. The model manages to retain a compact profile, leading to easy and comfortable maneuverability even in tight spaces.

The new-generation Mini Cooper still features the iconic round headlight assembly flanking an octagonal front grille. Standard are LED headlights with individually adjustable daytime running light elements. In the rear is a new Mini design aesthetic with clear surfaces and “flush-fitting” tail lights. Now vertically aligned, the LED clusters are said to call to mind classic Mini rear lighting. This “modern and purist” look is complemented with a black handle strip with model lettering, and a horizontal alignment lends to a wider stance.

Inside are the same outsized round instrument and toggle switch array, updated with new technology and touches. A head-up display in lieu of the classic steering wheel-mounted instrument cluster “ensures that all relevant content appears in the driver’s field of vision.”

Interior materials involve the aforementioned knitted recycled polyester that is both versatile and easy to care for. The textile surface extends across the curved dashboard and into the door panels. Meanwhile, 60:40 folding rear seats increase the luggage compartment capacity from 275 liters to up to 925 liters.

“EVs are gaining traction after the President signed an order to exempt them from duties. You can see that our EVs are cheaper than our ICE (internal combustion engine) cars,” Mr. Tee Ten continued, and added that the premium market has been known to be an early adopter of EVs because these can be charged at home. “We’re hoping for the establishment of more public-access electric charging stations, and for condominium administrators to allow charging stations to be established (within their properties) so that our customers can charge at home.”

Replying to a question from “Velocity” on the current distribution of sales between powertrains, the executive said, “It’s surprising. For Mini we’re at 50:50, more or less. Normally, sales would tend to favor the ICE models. Again, maybe it’s because we’re in the premium segment where EVs are more popular.”

The EV floodgates might open more, he posited, if Filipinos are better acquainted with the electrified format. “I think we need to educate Filipinos more; we need to let them try it first. Getting them to try it can already be a challenge, but I’m confident that once they try it, they’re going to love it,” concluded Mr. Tee Ten.

The ‘No Exclusive Franchise’ decision of the SC: A game changer?

FREEPIK

The Supreme Court (SC) has spoken: as penned by Associate Judge Rodil Zalameda on July 30, 2024 on the petition of the Iloilo Electric Cooperative (ILECO, consisting of IEC I, II, and III) challenging the validity of Republic Act 11919, which expanded the franchise of another electricity provider, More Electric Power Corp. (MORE), to areas within the ILECO’s franchise to include 15 municipalities and one city previously within ILECO’s franchise area. ILECO filed a petition before the SC for a certiorari and a prohibition with a prayer for the issuance of a writ of preliminary injunction to invalidate Section 1 of RA 11918 for violating their rights to an exclusive franchise, due process, the right to non-impairment of contracts, and equal protection. The SC denied the petition (see also Boo Chanco: “No More Exclusive Franchises?” The Philippine Star, Jan. 27).

In dismissing the petition, the SC ruled that Section II, Article XII of the 1987 Constitution and Article XII of the 1973 Constitution both prohibit exclusive franchises.

Section 11, Article XII, 1987 Constitution states: “Neither shall any such franchise or right be granted except under the condition that it shall be subject to amendment, alteration or repeal by the Congress when the common good so requires.” Moreover, franchises are subject to amendment, alteration or repeal by the Congress when the common good so requires.”

Section 5, Article XIV of the 1973 Constitution: “… nor shall such franchise, certificate or authorization be exclusive in character or for longer than period of 50 years.”

Thus, it must yield to serve the common good as determined by Congress. Who determines the common good? It is Congress. Congress, in enacting RA 11918, determined that expanding MORE’s franchise would promote healthy competition and would benefit consumers without waiting for 2029, 2039, and 2053, the expiry dates for the ILECO franchises. The Court added that contract rights must give way to the broader authority of the State’s police power when exercised for the general welfare.

In November 2018, former President Rodrigo Duterte blamed the Palawan Electric Cooperative (Paleco) franchise for outrages in Palawan. He threatened to expropriate the Paleco franchises in view of the outages suffered by the province: “I will expropriate your franchise.” He said he would tap other parties (Chinese or private) to take over the administration of Paleco. In Dec. 10, 2018, the state-run National Electrification Administration (NEA) took over the administration of Paleco. Paleco, on its part, blamed its IPP power supplier for failure to upgrade its facilities to deliver reliable power. Based on demand and supply for the Palawan grid: the actual peak as of October 2018 was 52.22 megawatts while peak demand was 53.85 megawatts — thus a shortfall which results in brownouts. Was former President Duterte in the right to threaten to expropriate the Paleco franchise for better service? Yes, he was. On Feb. 18, 2019, 120 power cooperatives denounced the effort to undermine electric cooperatives in favor of big companies. Philippine Rural Electric Cooperatives Association (Philreca), the association of electric cooperatives, hinted that the Department of Energy (DoE) wanted to cancel the franchises of at least 17 power cooperatives.

The Davao Consumer Movement welcomed the SC decision. “It removes the notion that once a franchise is given to an electric co-op, it is theirs forever. This means that electric cooperatives that continue to arrogantly refuse to hear our demands to improve services can be gotten rid of. The law allows the entry of another power service provider that would better benefit the consumers. This means that consumers will no longer have to wait for the non-performing electric cooperative’s franchise to expire.”

In a nutshell, the decision is telling electric cooperatives that the right to their franchise area is contingent on their performance as service providers or their franchise will be taken away from them (Ryan Amper, Convenor, Davao Consumer Movement).

The Davao consumer sentiment displays a general dissatisfaction of customers of electric cooperatives with the service they are getting and hopes that this decision opens the door for the reopening of the electric cooperative space to more privatization. This sentiment is also expressed in EPIRA (the Electric Power Industry Reform Act of 2001) that the electric cooperatives be placed in the situation of more accountability for better performance either via consolidation or via greater parallel competition and hard budget constraints (the standard for private distribution utilities or PDU is how other private DUs in the same area are performing) especially on being converted to PDU and regulated by the Energy Regulatory Commission (ERC) rather than by the NEA.

The sentiment expressed by the Davao Consumer Movement is in keeping with the evidence on performance of electric cooperatives. PDUs seem to deliver better performance in terms of quality of service such as stability of power and voltage. PDUs are subject to hard budget constraints and would have to give up the franchise if unable to deliver the requisite services.

The view has a proper tailwind of evidence (Fabella, Bajaro, and Gapay, 2018):

(a) The larger the size of electric cooperatives’ customer base associates significantly and negatively with systems loss and volatility of power (SCALE EFFECT). Consolidation of electric cooperative franchises to fewer but larger ones promises to improve performance.

(b) The share of Commercial and Industrial in total connections significantly and negatively associates with systems loss and less volatility in power supply.

(c) Ninety percent of firms are served by private DUs due partly to self-selection — firms tend to flock to areas served by PDUs since they are perceived to deliver better service.

(d) Membership in the Cooperative Development Authority, the other recommended way to improve performance by EPIRA, has no effect on performance.

Thus, economic progress and job creation is associated with more consolidation and/or privatization of electric cooperatives.

Does this SC decision on no exclusive franchise open the gates for the faster private sector takeover of the electric cooperatives franchises? Sadly no! The essence of the Zalameda/SC “no exclusive franchise” decision is that since the franchise is a grant by Congress to serve public interest, only Congress can take away such a franchise when public interest so mandates. The Zalameda decision does not introduce a new right but only reiterates the constitutional power of Congress to take away a franchise on public welfare. And only Congress can determine that interest of the public is being served or otherwise. Consumer communities suffering from persistently poor services can only appeal to Congress for transfer to another better served jurisdiction. In practice, since only Congress can finally make that decision, only entities with sufficient economic power to move legislative mountains have this option. This rule is not new and has always been there, as was reiterated by Justice Zalameda.

Absent the really big power players who can move political mountains, the old accepted modality where the electric cooperatives membership/owners cede via referendum the administration to a private entity (such as the case of Sonedco in Bacolod City, Negros Occidental, which was taken over by the Razon Group) is the only other pathway. This modality remains the biggest hurdle to privatization. For the SC decision to be a game changer, it must make it easier to engender privatization for improved performance. Does it?

Thus, the August 2024 SC decision of “no exclusive franchise” is only a reiteration of the old practice. It is not a game changer!

 

Raul V. Fabella is a retired professor of the UP School of Economics, a member of the National Academy of Science and Technology and an honorary professor of the Asian Institute of Management. He gets his dopamine fix from bicycling and tending flowers with wife Teena.

New York Fashion Week:  Michael Kors’ layered luxury, Siriano inspired by cars

MICHAEL KORS

NEW YORK — Michael Kors layered up for his fall/winter 2025 collection at New York Fashion Week on Tuesday, rounding out six days of shows and nearly 60 designers showing off their latest looks. (Watch the show here: https://tinyurl.com/y2ajz29y.)

Known for his love of practicality and luxury, Mr. Kors infused his latest collection with the theme of throwaway chic.

“I love the idea of ease, comfort, mobility and movement. Looking chic without being studied and stiff. And the French word for it is dégagé, which is, you know, throwaway chic. So, you’re definitely going to see what I like to say is warm modernism,” said Mr. Kors.

Models were dressed in a range of outfits — from draped wool coats to supple leather dresses and flowing silk blouses — that were relaxed yet sensual, providing a twist on power dressing and a departure from recent trends of revealing attire.

“It’s actually a pretty covered-up show. I think we’ve gone as naked as we can go. So maybe it’s time to cover up, but still feel powerful, sexy, but in a more sensual way so that when you move, movement is sexy. It’s, you know, things that catch the breeze when you walk. To me, that’s everything,” Mr. Kors explained.

Other highlights of the week included Wes Gordon at Carolina Herrera, who took inspiration from the movie Being There to display brightly colored dresses adorned with giant flowers.

Sergio Hudson, who dedicated his show to victims of the Los Angeles wildfires, gave everyday wear a haute couture twist, with denim pleated skirts and chunky cashmere knits.

CHRISTIAN SIRIANO
Designer Christian Siriano looked to the automotive world for his Fall/Winter collection at New York Fashion Week, presenting plenty of metallics for both women and men. (You can see the show here: https://tinyurl.com/2v2a2bdc. )

Models dressed in shiny jackets and trousers, sleek dresses and voluminous gowns walked down an all-red catwalk with a parked Toyota nearby. Designs nodded to cars with some details appearing as paint slicks, oil slicks, as well as tire tracks. Mr. Siriano used plenty of red as well as blue, black, and bronze.

“(The collection) was… inspired by a… connection between sexy… automotive design and clothing. So the red… symbolizes for me that iconic red car, that iconic red dress on a red carpet and how those… go together,” Mr. Siriano said backstage.

Mr. Siriano’s show on Thursday took place on the first day of New York Fashion Week, where some 60 labels, including Michael Kors, Carolina Herrera, and LaQuan Smith were to present their creations. The event ran until Feb. 11.

New York is the first leg of the autumn-winter 2025/2026 catwalk calendar, with buyers and editors then heading to London, Milan, and finally Paris to see designers present their latest lines. — Reuters

Bugkalot Coffee on the road to recovery from typhoon

BUGKALOTCOFFEE.COM

By Kyle Aristophere T. Atienza, Reporter

A COFFEE enterprise hit by a major typhoon last year is banking on a recovery on the strength of its business model — which involves control over the entire supply chain and a revenue-sharing model with its growers in the Sierra Madre.

Bugkalot Coffee Co., a social enterprise, processes and markets coffee beans apart from controlling thee production side, ensuring uniform quality, according to Chief Executive Officer (CEO) Joseph Tanchi.

“One of the things that sets us apart is that we are a producer, not just a trader or processor,” he said in an e-mail.

“Since we produce our own coffee and process it ourselves, we have a high level of operational control and standardization,” he added.

The business has as many as four layers of quality control throughout the post-harvest processing, and has centralized storage and sorting, “which all contribute to a higher quality of coffee.”

Bugkalot Coffee partners with indigenous communities in the Sierra Madre mountains.

“From a community development perspective, you work with the local community to see what resources they have, and you start from there,” Mr. Tanchi said.

“Given that the Bugkalot community lies deep within the Sierra Madre mountains, and also that there are some natural geographic and logistical constraints, coffee makes sense,” he added.

“We are fully invested in the community because we have other, non-monetary goals,” he said, citing a revenue-sharing model that gives growers “a bigger piece of the pie (and ensures that they) are not just a cog in the supply chain,” he added.

Mr. Tanchi said growing conditions are favorable for the business — altitude is good for Arabica coffee, the company’s main product, and water is sufficient year-round.

“However, the natural soil composition is not the most fertile, requiring some intervention to improve it,” he said.

The business was hit hard by Typhoon Man-yi (Pepito), which caused agriculture losses worth over P260 million and inflicted damage to infrastructure.

“We continuously still struggle with raising funds for operations and for improvements or enhancements. One of the drawbacks of our centralized operation is that all the responsibility for operational expenses falls on us,” Mr. Tanchi said.

Asked about the state of the recovery process, he said “We just deal with it and keep moving forward as best as we can.”

Mr. Tanchi said the company has been planting a newer variety of Arabica, which he said is “higher-yielding” and would “help us increase production over the next few years.”

The company has been implementing “more and more” organic farming principles every year, with the plantation itself contributing “to greening and tree-planting and also prevents further slash-and-burn farming anywhere there are coffee trees.”

“As we bring in new organic farming technology, the farmers also see that and can adopt that as well,” Mr. Tanchi said.

He said the business has been using organic fertilizer for several years now and just recently visited a fully organic farming site “to learn even more.”

While the company is not yet fully organic, “we definitely aim to be one as much as we can.”

“We will continue what we’ve been doing, adding infrastructure as and when able, continue our expansion, maintain our quality and keep working towards more production at same or better quality,” Mr. Tanchi said.

“In parallel, we have been working on our cafe, and that should provide us higher margins and an additional distribution venue for Bugkalot Coffee.”

SM Foundation, GPCCI partner for workforce dev’t

(L-R) GERMAN-PHILIPPINE Chamber of Commerce and Industry (GPCCI) Dual Training & Education and Special Services Director Kristina Silan, GPCCI board member Tristan Loveres, GPCCI President Maan Mariano, GPCCI Executive Director Christopher Zimmer, SM Foundation Executive Director Debbie Sy, SM Foundation Vice-Chairperson and Trustee Tessie Coson, and SM Foundation Executive Director for Education Programs Carmen Linda Atayde.

SM FOUNDATION, Inc. said it hopes to enhance job creation and workforce upskilling through a partnership with the German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI).

The collaboration will include nationwide employment initiatives such as specialized job fairs in SM malls and short-course training programs tailored for GPCCI member organizations, SM Foundation said in a statement over the weekend.

Experts from National University and Asia-Pacific College will conduct short courses and skills training on artificial intelligence, cybersecurity, and related fields.

The two organizations recently signed a memorandum of understanding (MoU) to formalize the partnership.

“We are preparing individuals not just to find jobs but to build careers in high-demand industries,” SM Foundation Executive Director for Education Programs Carmen Linda Atayde said.

“This initiative connects skills training with actual employment opportunities, ensuring that education truly transforms lives through short-course training, job fairs, and strong industry linkages,” she added.

GPCCI President Marie Antoniette E. Mariano said the partnership aims to establish a job-ready workforce, upscale talent, and connect businesses.

“This MoU is more than just a paper that’s going to be inked. It is a collaboration and a commitment to shaping the future of employment in the Philippines,” she said.

A recent GPCCI survey found that 58% of German companies reported a positive business environment in the Philippines, while 60% expected growth in the next 12 months.

SM Foundation previously launched the Job Opportunities Building Skills initiative to address unemployment and underemployment by bridging job distribution gaps, improving employability through upskilling, and facilitating job matching.

Last year, SM Supermalls hosted 183 job fairs across its malls nationwide, connecting approximately 107,000 job seekers with nearly 6,000 employers, resulting in around 14,500 on-the-spot hires. — Revin Mikhael D. Ochave

PhilHealth targets P204B in collections

PHILSTAR FILE PHOTO

PHILIPPINE HEALTH Insurance Corp. (PhilHealth) is aiming to collect P204 billion from members this year as it plans to continue expanding benefits despite having zero government subsidy.

“For this year, we are targeting to have a collection of around P204 billion, especially from the direct contributors. Our proposed benefit expense for the year is around P270 billion,” PhilHealth Spokesperson and Senior Vice-President for Health Finance Policy Sector Israel Francis A. Pargas told BusinessWorld earlier this month.

PhilHealth’s net income declined by 41.66% to P46.43 billion in the first nine months of 2024, its financial statement showed.

At end-September 2024, premium contributions inched up by 2.02% year on year to P167.39 billion, while benefit expenses rose by 43.26% to P134.7 billion.

Operating expenses went up by 41.15% year on year to P140.66 billion.

PhilHealth also wants to maintain its investment income, Mr. Pargas said, which as of September last year was at around P19.69 billion, up by 29.95% from the same period in 2023.

The state health insurer’s approved corporate operating budget for 2025 is around P280 billion.

Mr. Pargas said PhilHealth aims to continue expanding members’ benefits this year despite having zero subsidy from the government.

“We are doing our best to improve on our services, on our benefits, and we are, of course, hoping that by next year’s round of budget preparation, especially for 2026, we will be given a subsidy already by the Congress,” he said.

PhilHealth recently released a new policy to cover post-kidney transplant medicines, including anti-rejection medicines, immunosuppressants, antibiotics, and diagnostics, to complement its kidney transplant package.

It will review its coverage of catastrophic cases, such as expanding its Z benefit packages for cancers like lung, liver, prostate, ovarian, and cervical, Mr. Pargas said.

PhilHealth will also continue the rationalization of case rates, the official added.

“We are doing it in two directions. One is improving our current benefits. The second one is we are also introducing and coming out with benefits that would actually support the Universal Health Care (UHC) Act. So, until such a time that we are completely implementing the reforms and the benefits espoused in the Universal Health Care Law, then that is the time that we will slow down. But we will not stop because we will continue reviewing and expanding our benefits,” Mr. Pargas said.

He added that PhilHealth’s current actuarial life is until 2028.

“We don’t need to have a long actuarial life because we’re not the same as any pension insurances, but rather our system is like pay as you go… We of course want to increase it, but it will have an impact on our benefit expansion and all our benefit plans,” Mr. Pargas said.

Under the UHC Act, PhilHealth is required to maintain a reserve fund equivalent to two years of its projected expenditures.

President Ferdinand R. Marcos, Jr. this month appointed Edwin M. Mercado as PhilHealth’s new president and chief executive officer. — Aaron Michael C. Sy

Electrifying addition

With three variants priced from P2.188 million, the new Kia Sorento Turbo Hybrid is a spacious and efficient three-row SUV that’s exempt from number coding. — PHOTO BY KAP MACEDA AGUILA

With the Sorento Turbo Hybrid, Kia PHL electrifies a midsize SUV price point

By Dylan Afuang

KIA PHILIPPINES recently introduced to the market the Sorento Turbo Hybrid that carries styling and technology upgrades and, more importantly, a gasoline-electric hybrid (HEV) powertrain the car maker gave to its mid-size SUV.

“From efficient ICE models, to innovative hybrids, and electrified vehicles, the Kia movement highlights the brand’s commitment to providing a Kia vehicle suitable for each Filipino,” Jaime Alfonso Zobel de Ayala, CEO of Kia Philippines’ parent company ACMobility, announced during the Sorento Hybrid’s public launch in Makati City.

Last year, the local Kia arm brought in the Sonet subcompact crossover, the EV9 battery-electric SUV, and the Carnival Hybrid multi-purpose vehicle.

At launch, the new Sorento is available in three variants: 1.6 EX Turbo Hybrid 4×2 (P2.188 million), 1.6 EX+ Turbo Hybrid 4×2 (P2.588 million), and 1.6 SX Turbo Hybrid AWD (P2.888 million). Ditching the diesel engine that this Sorento iteration had from its first local launch in 2021, the updated model now features hybrid power as standard across the range.

This HEV uses a 1.6-liter turbocharged gasoline engine, which accepts 91-octane gasoline, assisted by a single electric motor that draws power from a 1.49-kWh battery. Total system output is rated at 232hp and 367Nm of torque, delivered to the front and to all wheels in the 4×2 and AWD models, respectively, via a six-speed automatic transmission.

Kia Philippines claimed that the SUV musters an urban fuel consumption rate of 23kpl, and that it’s exempted from the Unified Vehicular Volume Reduction Program or number-coding scheme, a privilege granted to EVs and HEVs.

The Sorento Hybrid’s Smart Regeneration feature facilitates effective battery charge by automatically modifying the intensity of regenerative braking, depending on variables like running speed, road slope, and distance from the car ahead.

Exclusive to the Sorento SX AWD are Sand, Mud, and Snow terrain modes, which calibrate the traction across all four wheels when the crossover is taken off road.

All Sorento variants offer three-row seating for seven, but only the EX+ 4×2 and SX AWD models come with perforated white leather upholstery and front seats with cooling and power adjustment. Middle-row passengers here can also move the front passenger seat forward via buttons on the seat. Devices can be charged with USB-C ports attached on the front seats.

A panoramic sunroof, ambient sound options, and customizable mood lighting enhance the riding experience in the Sorento SX. Standard on all Sorento cars is a maximum cargo capacity of 2,139 liters, and buttons on the cargo area that prompt the middle seats to fold down. The power tailgate, unique to the SX, has a proximity function for added convenience.

Front passengers face a 12.3-inch infotainment touchscreen that’s connected to a similarly sized instrument cluster. Another touchscreen provides access to climate, multimedia, and navigation functions. The console below holds USB-C charging ports and a wireless charger.

Apple CarPlay and Android Auto are standard, but the range-topping model features a 12-speaker Bose sound system.

Aside from the standard six air bags, the Sorento EX+ and SX variants are equipped with Kia’s DriveWise advanced-driver assist systems. The AWD version has E-VMC or Electrification-Vehicle Motion Control that uses the electric motor and electronics to keep the vehicle steady during cornering and evasive emergency maneuvers.

In addition to the standard, five-year vehicle warranty, there’s an eight-year warranty for the hybrid system’s battery. Kia’s nationwide network of 40 dealerships assure after-sales support.

The railroading of House Bill 11360

FREEPIK

On Feb. 3, during one of the last days of regular session before the adjournment for the midterm election campaign period, the House railroaded House Bill 11360, or what advocates call the Sin Tax Sabotage Bill.

The railroading of the Sin Tax Sabotage Bill was obvious. In the face of strong opposition to the bill that will lower tax rates and will result in a decline in revenues, the House leadership, including the Ways and Means Chair Joey Salceda, said that further hearings on the bill were canceled. Then House Speaker Martin Romualdez reneged on his commitment to cancel further hearings.

So, without even informing stakeholders in advance and without stakeholders getting any formal invitation, the House Committee on Ways and Means suddenly called for a briefing session on HB 11360 on Jan. 28.

A briefing session should not entail any voting on a measure. However, the briefing was suddenly and deliberately converted into a hearing mid-session, allowing the bill’s sponsors to force a vote and pass the Committee Report despite their inability to address the bill’s overwhelmingly negative revenue and health impacts.

The same Committee Report was calendared to be heard in the plenary the following day.

House Bill 11360 was passed on second reading at 2:09 a.m., Jan. 29, after amendments to include new provisions directly increasing the pork barrel of districts represented by the measure’s authors were inserted.

Despite the claims of its sponsors, namely Representatives Kristine Singson-Meehan, Rufus Rodriguez, and Mikaela Suansing, that HB 11360 would address illicit trade, the Sin Tax Sabotage Bill does not actually contain any among the globally recognized best practices to combat illicit tobacco trade. Instead, the bill deals two-fold damage to both fiscal and public health.

The lowering of tobacco taxes is bound to make cigarettes and other tobacco products more affordable. Making these products more accessible in this way will result in an increase in smoking incidence of over 900,000 new smokers. This places the public healthcare system in an even more precarious position, as it will be forced to bear the burden of the additional tobacco-related deaths and diseases amidst rapidly rising healthcare costs.

Furthermore, there is no substantial evidence that the bill will recoup revenues lost to illicit tobacco trade. Since the measure was filed, the Department of Finance (DoF) has made no effort to present any revenue estimates that would allow legislators to make informed policy decisions. In the agency’s failure to provide crucial data, the Secretary of Finance, Ralph Recto, has fallen short in his mandate to protect the government’s coffers.

The Finance Secretary must likewise be condemned for not objecting to a bill that will sabotage the sin tax law. HB 11360 is a bill that will further harm health and, at the same time, reduce revenues when the country is trying to address the fragile fiscal space. In truth, this is not surprising, since Secretary Recto has always promoted the commercial interests of the tobacco industry. His shameful support of a tobacco industry bill on taxes during the PNoy administration in 2012 prompted advocates to call him “Recto Morris” and led to his resignation as Chair of the Senate Ways and Means Committee.

The Sin Tax Sabotage Bill is nothing more than a shameless surrender to the tobacco industry’s will.

The bill’s sponsors, and all those who voted for the bill’s passage, are all complicit in sacrificing public health to boost the tobacco industry’s profits. Speaker Romualdez and his ruling clique in the House, and Finance Secretary Recto deserve the harshest condemnation for allowing the sabotage of the sin tax law to happen.

Their shameful act is but the most recent of other abominable acts they committed: the transfer of the funds of the Philippine Health Insurance Corp., better known as PhilHealth, to the National Government, giving PhilHealth a budget of zero in the 2025 General Appropriations Act, and allowing the diversion of the PhilHealth funds and sin tax revenues to finance pork barrel and political patronage.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms while Therese Hipol is a researcher on its fiscal and health policy team.

Five celebrities on their favorite summer pieces

SOLENN HEUSSAFF (left) poses in her AIRism Bra Sleeveless Top while JASMINE CURTIS-SMITH wears the Premium Linen Long Sleeve Shirt for a chic summer vibe.

UNIQLO’S Spring/Summer 2025 LifeWear collection is hitting the shelves with most already in stock. Still to come are the Uniqlo C collection with Clare Waight Keller which will debut on Feb. 28, while a collaboration with brand Princesse tam tam will debut in March.

To launch the collection in Rockwell on Feb. 7, they tapped the power of celebrities.

Actor and model Donny Pangilinan appeared onstage at Rockwell’s Balmori Tent wearing the brand’s Wide Tapered Jeans in white, paired with a jacket of the same color. “This is literally part of my lifestyle. I cannot go without the wide tapered jeans,” he said. “For me, this one, I can wear if I’m going to work, going to an event, going out with friends, or just chilling out with my family.

“Always have a fresh pair of jeans for anything,” added the actor.

Next came erstwhile it-girl Solenn Heussaff, and actress Jasmine Curtis-Smith. Ms. Curtis-Smith wore a pink shirt from the Premium Linen line, made of European flax. “It’s not see-through, but it’s got a really good, like, lining through it. Hindi ka maiilang (you won’t feel uneasy), and at the same time, when it’s hot, you want to make sure it’s breathable and you feel comfortable moving around in it. It’s really perfect for our humidity here,” she said. She wore this with yellow Bermuda shorts, also from the brand.

Meanwhile, Ms. Heussaff wore the brand’s Airism Sleeveless Bra Top (basically a top with a bra built into it). “You think about what T-shirt to wear, with what bra… this one, you won’t have to think. You just throw it on, which is honestly what I’m about nowadays. I’m always on the go, and I need something that really moves with me. It’s really light.” She matched the shirt with flowy pants from the brand, a pair of sunglasses, and cinched all of it with one of the brand’s leather belts.

Volleyball player Kianna Dy was also called onstage, and while in a green sweatshirt, she kept things active with a pale blue skort (shorts with a skirt panel sewn over them), from the brand’s Sports Utility line. “There are shorts inside, which makes it perfect for just a casual outfit. But also, I can use it for working out, if I want to look cute.”

Finally, influencer Niana Guerrero wore the brand’s latest collaboration with Disney, one of the Mickey Faces UT T-shirts, and the brand’s Barrel leg pants. Other collaborations include the MFA Boston Ukiyo-E shirts, Henri Matisse shirts, and one printed with photos of cats.

CLOTHES DRIVE
Reichelle Vergara, head of public relations and sustainability for Uniqlo in the Philippines, announced their previous clothing drive late last year to distribute clothing to the needy worldwide, giving around million pieces. This year, they’re bringing it locally.

“We have recently started our phase one of The Heart of LifeWear by donating 600 HeatTech item to communities in need in the Cordillera region,” she said. According to a company release, the donation is specifically for “single parents living in the Baguio area.”

They’re aiming to donate 10,000 Airism pieces around Manila and more communities. “We believe in the power of clothing,” she said. “Not only the customers, but of course, the communities we live in… also deserve to be comfortable.” — JLG

Surfshark: Philippines 3rd most breached country among its peers in the region

The Philippines placed 27th among 250 countries and territories in terms of data breaches in the fourth quarter, based on the latest data from Surfshark’s Global Data Breach Statistics. Despite this, the country logged a 95.1% decline in data breaches with 702,727 leaked accounts compared to 14,465,146 breaches in the previous quarter. During the period, the country was the third most breached country/territory in the region.

Surfshark: Philippines 3<sup>rd</sup> most breached country among its peers in the region