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Mexico vows retaliation to Trump tariffs without detailing targets

THE MEXICAN FLAG flutters during the National Flag Day event in Iguala, Guerrero State, Mexico, Feb. 24, 2021. — REUTERS

MEXICO CITY – Mexican President Claudia Sheinbaum on Saturday ordered retaliatory tariffs in response to the U.S. decision to slap 25% tariffs on all goods coming from Mexico, as a trade war broke out between the two neighbors.

In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its top trade partner to the north, but that Mexico had been forced to respond in kind.

“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Ms. Sheinbaum posted, without specifying what U.S. goods her government will target.

For decades, the two neighbors have seen cross-border trade grow, including from a highly integrated auto industry, as well as massive volumes of crude oil, natural gas and motor fuels that move in both directions.

There is also a booming farm trade. Mexico sends large volumes of fresh produce north, including avocados and tomatoes, while U.S. farmers supply huge amounts of corn and other grains to Mexican buyers.

Overall, the United States is by far Mexico’s most important foreign market, and Mexico in 2023 overtook China as top destination for U.S. exports.

Mexico has been preparing possible retaliatory tariffs on imports from the U.S., ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.

Economy Minister Marcelo Ebrard said on X that Mr. Trump’s tariffs were a “flagrant violation” of the U.S.-Mexico-Canada Agreement.

“Plan B is underway,” Mr. Ebrard said. “We will win!”

U.S. exports to Mexico accounted for more than $322 billion in 2023, Census Bureau data showed, while the U.S. imported more than $475 billion worth of Mexican products.

Almost a third of Mexico’s gross domestic product depends directly on exports to the United States, Grupo Financiero BASE’s economic analysis director, Gabriela Siller, said on X.

“With a universal tariff of 25%, it is estimated that exports could fall by around 12%. With this, Mexico’s GDP could fall by 4% in 2025, if the tariff is maintained all year round,” Ms. Siller said.

In her post, Ms. Sheinbaum also rejected as “slander” the White House’s allegation that drug cartels have an alliance with the Mexican government, a point Trump’s administration used to justify the tariffs.

Mr. Trump said the tariffs against Mexico were due to the country’s failure to stop fentanyl, a deadly opioid, from getting into the United States, as well as what he called uncontrolled migration.

Ms. Sheinbaum touted her government’s record since she took office in October – seizing 20 million doses of fentanyl, in addition to detaining over 10,000 people tied to drug trafficking.

The U.S. measures were “one of the heaviest attacks Mexico has received in its independent history,” Mexico’s ruling party congressional leader Ricardo Monreal told broadcaster Milenio. – Reuters

How work-life balance is shaping up for Filipinos

Anthony Oundjian, managing director and senior partner of the Boston Consulting Group’s Manila office, talks about work-life equilibrium in the context of hybrid work and the reality of Manila traffic.

Interview by Almira Martinez
Video editing by Arjale Queral

BSP eyes 50-bp rate cuts this year

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. — COURTESY OF BANGKO SENTRAL NG PILIPINAS

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) may cut interest rates by 50 basis points (bps) this year, its top official said.

“Seventy-five basis points might be too much, maybe 50 bps. We need a bit of policy insurance,” BSP Governor Eli M. Remolona, Jr. told reporters on the sidelines of the BSP Media Information Session in Baguio City on Saturday.

Mr. Remolona said that this could be delivered in increments of 25 bps each in the first and second half of the year.

“I think that sounds about right, 25 bps (in the) first half, 25 bps (in the) second half. Not every meeting we’ll see a policy rate decline,” he added.

The central bank began its easing cycle in August last year, slashing borrowing costs by a total of 75 bps by end-2024.

The Monetary Board delivered three straight rate cuts, bringing the benchmark to 5.75%.

Mr. Remolona said “there is no need” for a 100 bps worth of reductions this year as the country is far from a “hard landing” scenario.

“Central banks around the world learned to do things gradually except when there is an impending hard landing. Hard landing usually means a cut of more than 25 bps. We don’t see a hard landing in the near future,” he said.

On Friday, Mr. Remolona said a rate cut is still on the table at the Monetary Board’s first policy review meeting this year on Feb. 13.

The BSP chief said a negative output gap could prompt further monetary easing.

“Right now, we have a kind of a negative output gap. We’re growing at a little bit below capacity and whether that (growth) number widens that gap, our capacity and how much we’re really growing.”

“If the gap is widening, if it becomes more negative, then it would call for more easing,” he added.

The Philippine’s gross domestic product (GDP) grew by 5.6% in 2024, falling short of the government’s 6-6.5% target.

In the fourth quarter, GDP growth expanded by a weaker-than-expected 5.2%, the slowest print since the 4.3% logged in the second quarter of 2023.

Meanwhile, Mr. Remolona said they are also monitoring the US Federal Reserve’s moves but do not see the need to necessarily fall in step with the US central bank.

“Of course, it affects what we will do because it affects what happens to the economy, what happens to inflation rates. In that respect, it affects what we do but we don’t copy them. We don’t just follow them.”

The Fed, in its January meeting, kept benchmark interest rates unchanged as widely expected, after easing a full basis point in 2024. This marks the first pause since the start of its easing cycle in September, Reuters reported.

RRR CUT
Meanwhile, the BSP chief said the central bank is eyeing another cut in banks’ reserve requirement ratio (RRR) this year.

The Monetary Board is eyeing to reduce reserve requirements by 200 bps to 5% this year, he said.

“That’s the amount that we’re discussing, 200 bps. From 7% to 5% for the big banks,” Mr. Remolona said.

This may be delivered sometime in the middle of the year, he added, likely in June or July.

The central bank reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%, which took effect last October.

It also cut the RRR for digital banks by 200 bps to 4% and for thrift lenders by 100 bps to 1%. Rural and cooperative banks’ RRR was also slashed by 100 bps to 0%.

“In a way, the policy rate cut is a substitute for cutting the reserve requirements. They have similar effects on the economy… We want to bring it lower but the timing matters, because we are also cutting the policy rate,” Mr. Remolona said.

“The nice thing about the reserve requirement is it affects both the deposit rate and the lending rate. So, it should raise the deposit rate a little bit if you cut the reserve requirement while lowering the loan rates.”

The RRR is the portion of reserves that banks must hold onto to ensure they can meet liabilities in case of sudden withdrawals. When a bank is required to hold a lower reserve ratio, it has more funds to lend to borrowers.

From a high of 20% in 2018, the central bank has since brought down reserve requirements to single-digit levels. 

Poll: Inflation likely eased to 2.8% in January

Canned goods are on display at a supermarket in Quezon City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

HEADLINE INFLATION may have eased in January amid lower electricity rates and food prices, analysts said.

A BusinessWorld poll of 16 analysts yielded a median estimate of 2.8% for the consumer price index (CPI) in January.

This is within the 2.5%-3.3% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month and the 2-4% target range.

Analysts’ January inflation rate estimatesIf realized, January inflation would have eased from 2.9% in December and matched the 2.8% print a year ago.

The Philippine Statistics Authority (PSA) is set to release January inflation data on Feb. 5 (Wednesday).

“We expect headline inflation to ease, driven by lower food price inflation, while a decline in electricity generation rates partly offset a pickup in retail fuel prices,” Nomura Global Markets Research analyst Euben Paracuelles said.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said food inflation has been steady “largely due to reports that rice prices have declined versus prior months with favorable supply prospects following the end of El Niño.”

Rice inflation sharply slowed to 0.8% in December from 5.1% in November and 19.6% a year prior.

The PSA earlier noted the possibility of rice inflation turning negative in January.

“We expect headline inflation to decelerate on the back of retail rice prices falling to P37 per kilogram and electricity prices easing,” HSBC economist for ASEAN Aris D. Dacanay said.

Manila Electric Co. lowered the overall rate by P0.2189 per kilowatt-hour (kWh) to P11.7428 per kWh in January from P11.9617 per kWh in December.

OIL PRICE HIKES
On the other hand, analysts flagged risks that could stoke inflation, such as fuel costs.

“While electricity rates eased on the back of lower generation charges, domestic fuel prices were up over three straight weeks in January due to higher global oil prices,” Sarah Tan, an economist from Moody’s Analytics, said.

In January, pump price adjustments stood at a net increase of P2.65 a liter for gasoline, P4.80 a liter for diesel and P3.80 a liter for kerosene.

Mr. Dacanay said inflation could have eased further if not for other non-core components.

“For instance, retail fuel prices continue to climb due to a strong US dollar, while pork prices jumped as the increase in African Swine Flu cases took a toll on supply,” he said.

“Higher prices were observed for fuel as well as for key food items such as vegetables, meat, fish, and fruits,” Chinabank said.

Food inflation could have also reflected the impact of storm damage late last year, Ms. Tan said.

“Flood damage knocked food production in the final months of 2024, stoking inflation. These upward price pressures are expected to linger into the opening month of the new year,” she added.

Several storms hit the country in the fourth quarter, leading to billions of pesos worth of agricultural damage. The combined effects of tropical cyclones Kristine and Leon resulted in P9.81 billion in agriculture losses.

“Further, water rates were also upwardly revised as of Jan. 1, which will add to households’ and businesses’ utility bills through the year,” Ms. Tan said.

“The higher water rates are said to contribute to the expansion of water service and infrastructure projects,” she added.

The Metropolitan Waterworks and Sewerage System Regulatory Office had approved a P5.95-per-cubic-meter increase for Manila Water Co., Inc. and P7.32 per cubic meter for Maynilad Water Services, Inc., starting January.

“The annual adjustment in water rates in Metro Manila, along with the increase in sin taxes also added to upward price pressures,” Chinabank Research said.

INFLATION OUTLOOK
In the coming months, inflation is seen to continue settling within the 2-4% target range.

“Looking ahead, inflation will likely remain within target, barring new shocks,” Chinabank Research said.

The BSP projects inflation to average 3.3% this year. Even accounting for risks, it sees inflation potentially hitting 3.4%.

“On a monthly basis, we may see headline inflation bottom out at 2.4% year on year in February and a slight decline from December… as heavyweight CPI housing rental, electricity, water, and gas ease to less than 2%,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said.

“Moving forward, we expect the government’s ongoing efforts to manage rice supply to bring overall inflation down in the next few months,” Mr. Dacanay said.

The government implemented a maximum suggested retail price on imported rice in Metro Manila in late January to address elevated prices.

The within-target inflation outlook will allow the BSP to continue its rate-cutting cycle, analysts said.

‘This will support further monetary policy easing in the Philippines, reducing the pressure on the budgets of households and businesses,” Ms. Tan said.

“This favorable inflation outlook, along with the weaker-than-expected GDP growth in the fourth quarter, supports the case for another interest rate cut by the BSP in its upcoming policy meeting this month,” Chinabank Research said.

Security Bank Corp. Vice-President and Research Division Head Angelo B. Taningco said he expects the BSP to deliver a 25-basis-point (bp) rate cut at its first meeting for the year as inflation is likely within the 2-4% target range in January and fourth-quarter growth was weaker than expected.

Sun Life Investment Management and Trust Corp. economist Patrick M. Ella said the latest growth outturn will be a “larger consideration” for the BSP.

The Philippine economy grew by a slower-than-expected 5.2% in the fourth quarter, bringing full-year 2024 growth to 5.6%. This falls short of the government’s 6-6.5% target.

“We think the BSP will have to cut 25 bps for the first Monetary Board meeting this year. The weakness in consumption and private investments points to the need for support from the monetary policy side at the moment,” Mr. Ella said.

“This may lead to a weaker peso in the near term but the pressing need to support growth is immediate,” he added.

However, analysts also said that the BSP’s easing cycle may be derailed as risks persist.

Ms. Tan said the pace of further easing may be more moderate than last year.

“We’re looking at two quarter-point rate cuts by December, with the first coming through in mid-2025 at the earliest,” she said.

“The BSP will be prudent in monitoring global developments that could reinflate inflation and weaken the strength of the peso,” she added.

Mr. Neri likewise expects the central bank to deliver just 50 bps worth of cuts this year.

“That said, we continue to see risks that could limit the BSP’s rate cuts to just 50 bps this year,” he said.

“If BSP becomes too aggressive with easing, the peso could be subject to sizable exchange market pressure, which, in turn, could fuel inflation expectations.”

The peso has been under pressure in the past few months, sinking to the record-low P59-per-dollar level thrice in 2024.

Ms. Tan expects the Monetary Board to keep rates steady at its Feb. 13 meeting as it will likely remain cautious.

BSP Governor Eli M. Remolona, Jr. has signaled the possibility of up to 50 bps worth of rate cuts this year.

Hot money yields $2.1-B net inflow in 2024 — BSP

Euro, Hong Kong dollar, US dollar, Japanese yen, pound and Chinese yuan banknotes are seen in this picture illustration in Beijing, China. — REUTERS

MORE SHORT-TERM foreign investments entered the Philippines in 2024, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Foreign portfolio investments registered with the central bank through authorized agent banks posted a net inflow balance of $2.1 billion last year, a turnaround from the $248.84-million outflow in 2023.

These investments are called “hot money” because of the ease with which they can enter or leave a jurisdiction, as opposed to foreign direct investment, which is considered less fickle.

Central bank data showed gross inflows jumped by 39.2% to $17.93 billion in 2024 from $12.89 billion a year ago.

Over half or 54.2% of these investments went to peso-denominated government securities, while the rest were invested in Philippine Stock Exchange (PSE)-listed shares of banks; holding firms; property; transportation services and food, beverage and tobacco.

In 2024, the top investor countries were the United Kingdom, Singapore, the United States, Luxembourg and Hong Kong, accounting for the bulk or 86.3% of investments.

Meanwhile, gross outflows totaled $15.83 billion last year, higher by 20.5% from $13.14 billion in 2023.

“Majority (or 96%) of these outflows represented capital repatriation while the remaining 4% pertained to remittance of earnings. The US continued to be the main destination of outflows with 49.8% of total,” the BSP said.

In December alone, the hot money balance stood at a net outflow of $487.37 million in 2024, more than double (137.5%) the $205.18-million outflow in the previous year.

Gross inflows slipped by 1% to $1.055 billion during the month from $1.065 billion a year ago. It also fell by 43.4% from the $1.86-billion inflows recorded in November.

Broken down, 51.7% of these went to peso government securities while the remaining 48.3% were in PSE-listed securities.

In December, inflows came mostly from the United Kingdom, the United States, Singapore, Germany and Ireland, accounting for 76.3% of investment inflows.

On the other hand, gross outflows rose by 21.4% to $1.54 billion from $1.27 billion. Month on month, it declined by 12.6% from $1.76 billion.

“The US remains to be the top destination of outflows, receiving $718.88 million (or 46.6%) of total outward remittances,” it said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the hot money net inflow was due to the start of monetary easing by the US Federal Reserve and BSP.

The US central bank began its easing cycle in September last year, slashing interest rates by a total of 100 basis points (bps) in 2024.

The BSP also kickstarted its rate-cutting cycle in August last year. It reduced borrowing costs by a total of 75 bps by end-2024, bringing the key rate to 5.75%.

This helped “reduce funding costs, spur more investments, employment, trade, and other business activities,” he added.

The country’s recent credit rating upgrades and improvements also supported investor sentiment, Mr. Ricafort said. 

In August, Japan-based Rating and Investment Information, Inc. upgraded the Philippines’ investment grade rating to “A-.”  — Luisa Maria Jacinta C. Jocson

Car sales to reach 512,000 in 2025

VEHICLES are parked near a mall in Mandaluyong City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

PHILIPPINE automotive sales are expected to reach 512,000 units this year amid a more promising macroeconomic outlook, said Toyota Motor Philippines Corp. (TMP).

At a media event on Friday, TMP Chairman Alfred V. Ty said that the prospects for the industry this year are “encouraging.”

He noted the macroeconomic outlook is “reasonably optimistic,” as the gross domestic product (GDP) growth is expected to surpass 6% this year.

The government’s GDP growth target is set at 6-8%.

Mr. Ty said the financial sector “remains sound” as the consumer loans continue to rise.

He also cited the projected growth in overseas Filipino worker remittances and business process outsourcing earnings, as well as a “relatively under control” peso-dollar exchange rate.

“Government infrastructure spending is expected to continue, and election-related spending will trigger incremental economic demand,” he said.

“As a result, we are projecting sales to grow to over 500,000 units, half a million new cars — 512,000 units to be exact — representing a sustained growth of 8%.”

In 2024, the automotive industry sold 467,252 units, up by 8.7% from the 429,807 units sold in 2023, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

Mr. Ty said that adding the sales from the Association of Vehicle Importers and Distributors, Inc. (AVID) and some Electric Vehicle Industry Development Act (EVIDA) players to CAMPI-TMA’s total pushed industry-wide sales to over 474,000.

“The combined sales of CAMPI, TMA, AVID, and some EVIDA players come to 474,000 units, with 12 motor vehicle manufacturers and assemblers, up to 60 brands, and more than 400 models on the road,” he said.

Mr. Ty said higher car sales translate to more jobs, government revenue, investments and exports.

“As the Philippine auto market continues to expand, I am very much encouraged by the added possibilities this growth brings with it. The auto industry is truly transforming into a major pillar of economic development,” he added.

Increasing sales volume has encouraged automakers to expand in the country.

“I am hoping that we can harness the collective power of every automaker doing business in the country in realizing a more united automotive program to develop the auto industry into a major economic force in support of the nation’s long-term development plans,” he added.

For Toyota, Mr. Ty said the company expects to grow sales by 8% this year.

Last year, TMP sold 218,019 units, up 9% from the previous year, making the Philippines among the 10 largest markets for the Japanese car giant worldwide. Toyota had a 46.66% market share in the Philippines in 2024.

TMP sold 63,007 passenger cars in the Philippines last year, rising 14.7% from 2023. It had a 52.17% share of the passenger car market.

It sold 155,012 commercial vehicles in the Philippines, up 6.8% from the previous year. This accounted for a 44.74% share of the commercial vehicle market.

“It helped us secure jobs for over 69,000 Filipinos in 2024 and realize over $1 billion of exports for the country and contribute P35 billion to government revenues,” Mr. Ty said.

“Our volume sellers will continue to be Vios and Tamaraw. And then Innova will continue to deliver. So, we believe the commercial vehicles will continue to be stronger this year,” he added.

Late last year, the company launched the Next Generation Tamaraw, which has three in-house conversions: utility van, dropside, and cargo.

“We are quite ambitious at this point. Around 20,000 (sales) in a year is our target, initially for Tamaraw,” TMP President Masando Hashimoto said.

If the 8% growth is realized, the company will end the year with around 235,460 units sold.

Meanwhile, Mr. Hashimoto said that the company is looking at expanding its electrified lineup.

“Our main focus has been on hybrid electric vehicles (EVs), with our customers seamlessly adopting them over time, adapting to the hustle and bustle of many Filipinos,” he said.

“Along with the clamor of plug-in hybrid EVs, we see the potential of an expanded electrified lineup, and this may come sooner than you think.” — Justine Irish D. Tabile

PSEi relief rally expected this week

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

By Revin Mikhael D. Ochave, Reporter

THE BELLWETHER Philippine Stock Exchange Index (PSEi) may see a “relief rally” this week after entering bear territory last Friday, with market movements likely to be driven by upcoming economic data.

“Barring any negative surprises, a relief rally is possible,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“This week’s market action will be driven mainly by the Philippine January inflation report, US December jobs data, and the evolving situation on tariffs,” he added.

The PSEi plunged by 4.01% or 245.07 points to close at 5,862.59 on Friday — its lowest finish in 27 months, since the 5,853.63 close on Oct. 12, 2022.

The main index officially entered bear territory after dropping over 20% from its intraday high of 7,604.61 and highest close of 7,554.68, both recorded on Oct. 7 last year.

The broader All Shares Index also declined by 2.19% or 79 points to 3,520.32.

Philippine inflation data for January will be released on Wednesday, Feb. 5. The Bangko Sentral ng Pilipinas (BSP) recently projected that January inflation could range from 2.5% to 3.3%, within its 2% to 4% target range.

On Feb. 1, US President Donald J. Trump imposed a 25% tariff on goods from Mexico and Canada, as well as a 10% tariff on products from China. He demanded that these countries act against the flow of fentanyl into the US, as well as address the issue of illegal immigration in the cases of Mexico and Canada.

“The January inflation data out on Feb. 5 must not add to the gross domestic product (GDP) disappointment,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

“Inflation should decelerate below last December’s 2.9% and beat consensus estimates. If not, the market will remain in the bear trap,” she added.

Last Thursday, Philippine Statistics Authority data revealed that the country’s GDP expanded by a weaker-than-expected 5.2% in the fourth quarter, bringing full-year growth to 5.6%, short of the revised 6% to 6.5% target set by the government.

COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message that the PSEi is expected to recover next week following adjustments to the index’s composition.

“There is a chance next week for the market to bounce back immediately because the index rebalancing is already done,” she said.

“Last Friday, a lot of fund managers had to sell their other index stocks to make way for the addition of AREIT, Inc. and China Banking Corp. (Chinabank). Since volumes were so thin, they had to sell at a lower price to get their orders through,” she added.

AREIT, Inc. and Chinabank will join the 30-member PSEi starting Monday, Feb. 3, following the market operator’s index review for 2024.

The two companies will replace Nickel Asia Corp. and Wilcon Depot, Inc., which will become members of the 20-member PSE MidCap Index.

Philippine Seven Corp. will also join the PSE MidCap Index, replacing DDMP REIT, Inc.

Robinsons Land Corp. will be added to the PSE Dividend Yield Index following the removal of International Container Terminal Services, Inc.

All sector indices will remain unchanged except for the industrial sector, which will see the addition of Pryce Corporation and the exclusion of Fruitas Holdings, Inc.

“This was an extraordinary circumstance because the drop was due to index rebalancing. I’m optimistic that we should bounce back next week,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“We have Philippine inflation coming out next Wednesday and US jobs report coming out next Friday. These two data points could dictate market direction next week,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that a “healthy upward correction” is possible for the local bourse next week.

“The market is also waiting for bottoming out signals to do some bargain-hunting, avoiding a risk of further losses. It is still wait-and-see until the dust settles and to grab opportunities for long-term purchases of high-quality listed companies with strong valuations,” he said.

IPOs likely by second half — ICCP

BW FILE PHOTO

INITIAL PUBLIC OFFERINGS (IPOs) could come by the second half of 2025 amid uncertainties posed by the administration of United States President Donald J. Trump and the May 12 local midterm polls, according to the Investment & Capital Corporation of the Philippines (ICCP).

“I think many will come by the second half because in the first half, I think everybody is still trying to understand the Trump presidency. You have the May elections coming up,” ICCP Senior Managing Director Jesus Mariano P. Ocampo told reporters on the sidelines of an event in Makati City last week.

For 2025, the Philippine Stock Exchange (PSE) is eyeing six IPOs.

Mr. Ocampo said it is possible for the PSE to meet its IPO target this year.

“We know of four (possible IPOs) already,” he said, without providing specifics.

Cebu-based fuel retailer Top Line Business Development Corp. (Topline) is expected to be the first company to conduct an IPO this year.

The company selected ICCP and PNB Capital and Investment Corp. as the joint lead underwriters and joint bookrunners for the offer.

On Jan. 22, the company said it is eyeing a listing on the local bourse by the second quarter after lowering the size of its IPO.

Topline reduced the size of its planned IPO to around P900 million from the previous P3.16 billion after talks with potential institutional investors.

Its IPO now comprises up to 2.15 billion primary common shares with an overallotment option of up to 214.84 million secondary shares, priced at up to 38 centavos per share. Its public float will be around 22%, assuming the full exercise of the overallotment option.

Topline is engaged in commercial fuel trading, depot operations, and retail fuel in the Visayas region. — Revin Mikhael D. Ochave

SteelAsia says January shipment sets export record

STEELASIA MANUFACTURING Corp. completed a P1.1-billion shipment of high-strength reinforcing steel to a subway project in Vancouver, Canada, last week, its chairman said.

“We have repeat orders from the same buyer and project, a vote of confidence in our reliability as a supplier and in the quality of our products,” SteelAsia Chairman and Chief Executive Officer Benjamin Yao said in a statement on Feb. 1.

“Locally, it is the same for us since the top developers are our biggest loyal customers,” he added.

According to the company, the shipment on Jan. 30 was the country’s largest steel export to date.

The 32,000-metric-ton shipment of high-strength reinforcing steel came from the company’s mill in Davao City.

The latest shipment brought SteelAsia’s total exports to the Canadian subway project to 87,000 metric tons with an approximate value of P3.2 billion.

SteelAsia operates four steel mills, which have a total capacity of 2.5 million metric tons per year.

These are Meycauayan Works, Calaca Works, Davao Works, and Compostela Works.

It is also constructing a green steel H-beam plant in Lemery, Batangas, and will begin site development in Candelaria for a second green steel H-beam plant worth P30 billion.

In July 2024, the company announced an P82-billion investment for plants in Candelaria, Quezon; Lemery, Batangas; Davao City; and Concepcion, Tarlac.

The company’s investment aims to reduce the country’s reliance on imports, create jobs, and contribute to the country’s economic growth. — Justine Irish D. Tabile

UAAGI welcomes new head for Chery and Lynk & Co

From left are Lynk & Co Deputy Director Timothy Sytin, Chery Deputy Director for Sales Nikko Sayson, Foton General Manager Levy Santos, Mr. Decloedt, Mr. Sytin, UAAGI Vice-Chairman Kenneth Sytin, UAAGI Chief Marketing Executive and Senior Vice-President Lyn Buena, and BAIC Brand Head and General Manager Chris Yu. — PHOTO BY KAP MACEDA AGUILA

Industry veteran Franz Decloedt makes a move

LAST WEEK, the United Asia Automotive Group, Inc. (UAAGI) celebrated the Chinese New Year a day in advance – hosting a luncheon for members of the media, content creators, and bank partners.

The moment we received the invite, many of us in the press already surmised it wasn’t going to be just another get-together. Word was going around that UAAGI had recruited a new executive – one who had just left another large auto distributor.

I’m referring, of course, to one-time GAC head Franz Decloedt from Madrid-based Astara (which also handles JAC, JMC, and Peugeot here). UAAGI had been one executive short with the departure of Froilan Dytianquin, formerly group managing director before he announced he was stepping down to attend to “urgent personal matters” early in the year.

Following presentations of executives for specific UAAGI-administered brands BAIC, Chery, Foton, and Lynk & Co, UAAGI Chairman Rommel Sytin stepped up to the podium and declared, “While we work toward expanding our market share and achieving greater growth, we remain equally committed to developing the exceptional team behind UAAGI’s brands. I’m immensely proud of the men and women of the (group) who continue to help bring their expertise. Their dedication has been the driving force behind the outstanding portfolio of automotive brands and our industry-leading after-sales service.”

He paused, then continued, “On that note, I am thrilled to introduce another valuable addition to the UAAGI family. Please join me in welcoming Mr. Franz Decloedt (who) brings with him extensive experience in the Philippine automotive industry, and we are confident that his leadership will propel these brands to even greater heights.”

Franz Decloedt, who assumes the role of brand head for both Chery and Lynk & Co, flashed a wide smile and said, “It is both an honor and a pleasure to stand before you today. I’m sure many of you are surprised to see me today. I’ll be honest, I’m also surprised.”

He continued, “Over the past 28 years of my professional career, I’ve been blessed to work across various industries – from fast-moving consumer goods, food and beverage, homecare, laundry and personal care, to my most recent chapter in the automotive industry. Yet, I must say, these last nine years in automotive have been the most challenging and at the same time the most rewarding.”

Mr. Decloedt maintained that the auto industry has taught him a lot, and expressed deep thanks “for the blessings, learnings, and opportunities (he’s had) working with different groups and brands… I can confidently say that this will be a breakout year for both Chery and Lynk & Co. Together, we will showcase what it truly means to be UAAGI all the way.”

Replying to a question from “Velocity” via text, the executive stated, “My focus is to amplify the strong foundation UAAGI has built for these two distinguished auto brands. With the guidance and leadership of our chairman Rommel Sytin, I aim to further develop and nurture key partnerships and expand the networks of both Chery and Lynk & Co – with the goal of driving growth and increased market share for both brands.”

Vivant plans P4.5-B capex focusing on solar, wind power

STOCK PHOTO | Image by Michael Wilson from Unsplash

CEBU-BASED energy and water company Vivant Corp. is allocating P4.5 billion for its 2025 capital expenditure (capex), focusing primarily on renewable energy projects such as solar and wind power developments.

This year’s budget is higher compared to last year since most of the projects were in the pre-development stage, said Vivant Chief Finance Officer Minuel Carmela N. Franco. 

“When it’s pre-development, the outlay and investment are very minimal. We’ll start the outlay once development begins,” Ms. Franco told reporters last week.

For 2025, Vivant is expecting to roll out solar power projects with a total capacity of 115 megawatts (MW), as well as a 200-MW wind power project in Samar, said Vivant Chief Executive Officer Arlo Angelo G. Sarmiento.

Among the projects expected to become operational is the 22-MW solar project in Bulacan. 

“A lot of the work involves groundbreaking this year,” Mr. Sarmiento said. 

Most of the power generated from the company’s energy projects will be supplied to its retail electricity supply (RES) arm.

“That’s one of our newer strategies that we’re trying to execute — building plants and then bringing them to market through the RES market, the retail market,” Mr. Sarmiento said. 

In June last year, Vivant said it targeted allocating P15 billion for various renewable energy projects until 2030, part of the company’s projected total equity investment requirement of up to P22 billion. 

Vivant has investments in various companies engaged in electric power generation and distribution, as well as the retail electricity business. It also entered the water industry, “with a diversified portfolio in the areas of bulk water supply, wastewater treatment, and water distribution.” — Sheldeen Joy Talavera

Going beyond the terno

PEACH GARDE

Ternocon tackled the kimona, brought back the panuelo

DESPITE its theme, this year’s Ternocon expanded its reaches far beyond the familiar Filipiniana dress. Not only did it revive the terno’s 1930s structure with the addition of the panuelo (fichu), but it also concentrated on another traditional Filipiniana dress, the kimona.

The terno evolved from the 1800s traje de mestiza (colloquially referred to as the Maria Clara), melding together its elements and modifying the former’s pagoda sleeves into butterfly sleeves (effectively shrinking them) for the changing times of the 1900s. Some elements were taken out through the decades — the tapis (overskirt) for example — and around the 1960s, with the removal of the panuelo, the terno as we know it today took shape.

As for the kimona, it is a loose blouse, often with elongated sleeves, worn with a tube-shaped skirt; it is considered more rural, casual, compared to the urbane terno.

The Balintawak, a second option for Filipiniana dress, is a more casual rendition of the terno, melding together the base form (the baro’t saya or blouse and skirt) with slightly puffed-up sleeves. It was popular throughout the first half of the 20th century. While the terno back then was made of finer materials, the Balintawak is usually made of more common materials like cotton, and is usually accessorized with an alampay — a shawl or a scarf draped over one shoulder.

For this year’s Ternocon, held over a series of months in 2024 and culminating in the Philippine International Convention Center (PICC) show on Jan. 26, the terno’s earlier form, used in the most formal occasions in the pre-war period, took center stage.

ARTISTIC INSPIRATION
The 12 designers were given a brief to take inspiration from 20th-century Filipino artists. These included several National Artists — Jose Joya, Hernando R. Ocampo, Vicente Manansala, Fernando Amorsolo, Benedicto “BenCab” Cabrera, Leandro Locsin (veering from the painters and the sculptors on this list; Mr. Locsin was honored for his architecture) — and artists Ramon Orlina, Onib Olmedo, Nena Saguil, and Impy Pilapil.

That evening, Windell Madis took home the Chief Mentor’s Award for a clever interpretation of the work of H.R. Ocampo.

Ram Silva, meanwhile, won the bronze for his interpretation of Fernando Amorsolo’s paintings, particularly his depiction of idyllic countryside life during harvest time. For this, Mr. Silva showed an excellent use of the simpler kimona. For his collection, he used sweeping grasses on the skirts, with almost photo-accurate renditions of the colors in Mr. Amorsolo’s work, giving the collection the illusion of figures having stepped out of the paintings. The grass fringes were full and lush, reflecting beauty, abundance — and its perishability.

Bryan Peralta won silver for his “collaboration” with Joya, showing the outfits in common canvas (subverting the terno’s usually refined piña make), showing Jose Joya’s abstraction on mesh sleeves and wild, childlike embroidery.

Finally, Peach Garde won the gold for interpreting Mr. Locsin’s iconic buildings into clothes, tapping into the architect’s preference for Brutalism — a style dominating the postwar period with strict shapes and the use of concrete.  The main theater building of the Cultural Center of the Philippines and the Ternocon’s venue, the PICC, were both designed by Locsin. For these, he used geometrical shapes and panels of fabric to give the clothes a shape more akin to edifices than outfits.

Other notable collections that evening included Lexter Badana’s channeling glass sculptor Ramon Orlina. His collection used the signature blues and greens of Orlina’s work, using plastic and other materials to mimic glass, even in its sheen.

Irene Subang’s collection focused on BenCab’s muse Sabel, a homeless woman draped in the world’s misery, so cans painted copper were attached to the dress and an overall look of dereliction made noise on the runway.

Jared Servano’s work, based on Nena Saguil’s, featured a wash of silver and gold on the surface of the clothes, while the fabric’s thread appeared to be spilling off the sleeves, providing movement.

Ternocon’s mentors Rhett Eala, Ezra Santos, and Lulu Tan-Gan also showed off their own collections, as did 2023 Ternocon winner Yssa Innumerable.

Entrepreneur Ben Chan, whose Bench brand is the Cultural Center of the Philippines’ partner in Ternocon, made a speech that evening, saying, “May this gathering tonight ignite within us the same spirit of home, of love for country, and pride in our culture.” — Joseph L. Garcia

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