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Megawide readying MCIA, PITX for post-quarantine ‘revenge travel’

By Arjay L. Balinbin, Senior Reporter

MEGAWIDE Construction Corp. is eyeing more improvements to the Mactan-Cebu International Airport and the Parañaque Integrated Terminal Exchange, as well as looking to develop more landports, in anticipation of a potential surge in “revenge travel” once quarantine rules are relaxed.

“We are anticipating a rise in demand for the so-called ‘revenge travel’ post-quarantine,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra told BusinessWorld in an e-mailed reply to questions recently.

“We are looking at making the passenger experience at both the Mactan-Cebu International Airport (MCIA) and Parañaque Integrated Terminal Exchange (PITX) more comfortable,” he added.

Mr. Saavedra noted that foot traffic at PITX bounced back when transport restrictions were lifted, “showing that the terminal is an essential convergence point for land travel and that passengers feel safe with safety protocols in place.”

Megawide’s second-quarter revenue from landport operations fell 45% to over P173 million from more than P312 million in the same period a year ago.

Costs of landport operations went up 40% during the quarter to more than P77 million from over P55 million in the same period last year.

“We will continue to implement digital processes [for seat bookings] and strict safety protocols at PITX,” Mr. Saavedra said.

The company is also eyeing expansion opportunities for additional landports, as land travel has been found essential during the pandemic.

“During the pandemic, we further developed our landport concept and are now looking at opportunities to bid and develop other landports across the country together with partners,” Mr. Saavedra said.

As for the Cebu airport, he said: “To ensure seamless travel for our passengers, we will continue implementing [our] contactless passenger platform and retain the onsite [coronavirus] testing facility at the MCIA.”

The company’s second-quarter revenue from its airport operations climbed 62% to around P119 million from almost P74 million in the previous year.

Costs of airport operations for the quarter decreased 4% to over P97 million from more than P101 million in the same period a year earlier.

Lambo classic makes a Countach-tic reappearance

PHOTO FROM PGA CARS

The ultimate ’80s poster car is back!

LONG BEFORE the terms “supercar” or “hypercar” were ever coined, there was the “exotic car.” And no car represented that term better than the Lamborghini Countach. Debuting at the 1971 Geneva Motor Show, the Countach became an instant showstopper. Impossibly low, impossibly wide, and sporting an impossibly sleek wedge shape, the Countach sparked a revolution in how sports cars are designed. And that’s even before the spectacular “scissor” doors were opened.

The Lamborghini Countach was a true “disruptor,” 50 years before that term became popular.

And now, in celebration of the 50th year of the Countach’s world debut, Lamborghini is unleashing a new limited-edition Countach — a homage that embodies the still-incredible attributes of the original while boasting cutting-edge technologies that enable it to deliver the sensational performance expected of a legend.

But while the original Countach models were referred to as LP 400 and LP 500, the new one will be the LPI 800-4 — the “800” referring to the car’s rounded-off 814cv of power (and “4” for the new car’s all-wheel drive). Only 112 units will be made — the number referring to the “LP 112” internal designation of the car when it was being developed. And yes, all 112 units have been spoken for, with customer deliveries beginning next year.

“The Countach LPI 800-4 is a visionary car of the moment, just as its forerunner was,” says Automobili Lamborghini President and CEO Stephan Winkelmann. “One of the most important automotive icons, the Countach not only embodies the design and engineering tenet of Lamborghini but represents our philosophy of reinventing boundaries, achieving the unexpected and extraordinary and, most importantly, being the ‘stuff of dreams.’ The Countach LPI 800-4 pays homage to this Lamborghini legacy but it is not retrospective: it imagines how the iconic Countach of the ’70s and ’80s might have evolved into an elite super sports model of this decade. It upholds the Lamborghini tradition of looking forward, of exploring new design and technology avenues while celebrating the DNA of our brand. It is a Lamborghini that innately expresses the marque’s enduring and emotive power: Always inspirational and thrilling to see, hear and, most of all, drive.”

Despite the model not being on the market for over two decades, the new Countach is instantly recognizable as exactly that — the new Countach. And if you’ve been wondering what the name means, the “Countach” moniker is an expression of surprise and wonder in Piedmontese dialect. Unlike the Miura, Gallardo, Huracan, and several other Lamborghini model names, the Countach (pronounced “koon-tash) is not a bull breed or a name of a famous bull.

“The first Countach has been present in our Centro Stile as a model for some years now,” explains Mitja Borkert, head of Centro Stile. “Whenever I look at it, it gives me goose bumps and it serves as the perfect reminder for me and the entire design team to design every future Lamborghini in a visionary and futuristic way. This is an unnegotiable part of our DNA, the essence if you so will. The first Countach shaped the Lamborghini design DNA like no other car; the new Countach translates that unconventional and edgy character into the future.”

The car keeps its distinctive silhouette with the essential line running from front to rear, sharp angles and lines, and a distinctive wedge shape. It has an innovative modern super sports design that will also be surely reflected in future Lamborghini models. The Countach LPI 800-4 develops the characteristic lines of the nameplate’s five models over nearly 20 years.

The final outline is pure and uncluttered, with references to the first LP 400 and LP 500. Giving the LPI 800-4 a distinctive Countach face, inspiration was taken from the Quattrovalvole edition in the assertive lines of the hood with long, low rectangular grille and headlights, as well as in the wheel arches with their hexagonal theme. The sharp inclination of the greenhouse adopts the straight lines redolent of the original Countach. There is no fixed rear wing outside the pure lines (there is a subtle retractable three-position rear spoiler), and the air scoops are integrated fluidly in the strong shoulders of the car, embellished with the distinctive Countach slatted “gills.” The iconic and aerodynamically powerful NACA air intakes cut into the side and doors of the Countach LPI 800-4 while the distinctive Periscopio lines run through the roof to the rear of the car, particularly distinctive if viewed from above.

The rear of the Countach LPI 800-4 is immediately recognizable from its distinctive inverted wedge shape, with the rear bumper featuring a lower, sleeker line, and the ‘hexagonita’ design shaping the three-unit rear light clusters. The LPI 800-4 sports the four-strong exhaust tail pipes of the Countach family, connected within the carbon fiber rear diffuser. Access for driver and passenger is of course via the pioneering scissor doors, first introduced on the Countach and that have since become a Lamborghini V12 signature.

The V12 engine of the vehicle is as legendary as the design. Mounted behind the driver in a forward-cabin layout, the original Countach featured side-mounted radiators from Formula One; forward-facing gearbox and tubular spaceframe technology. More racecar wizardry for the new Countach, which has a 2,700mm wheelbase and 43:57 front-to-rear weight balance, comes from the pushrod magnetorheological active front and rear suspension with horizontal dampers and springs.

It was as revolutionary in its approach to sports car engineering as in its astonishing looks. The Countach developed the best available technologies to produce an extraordinary car. This visionary philosophy is reflected in the Countach LPI 800-4, taking the pinnacle of current Lamborghini technologies and engineering to produce the performance expected from a Countach in 2021.

“The engineering team that developed the original Countach advanced Lamborghini’s pioneering technical approach, delivering unexpected innovations and the best performance available in a production car,” says Lamborghini Chief Technology Officer Maurizio Reggiani. “That spirit inherently drives Lamborghini R&D, resulting in the pioneering hybrid technology in the LPI 800-4, and the emotive driving experience and top-line performance expected from a flagship V12 Lamborghini.”

The 6.5-liter V12 — outputting 780cv at 8,500rpm and 720Nm at 6,750rpm — is combined with a 48-volt e-motor mounted directly on the seven-speed clutch-less gearbox providing a further 34cv/35Nm for immediate response and increased performance. It’s the same innovative architecture developed for the Sián — the only mild-hybrid technology to create a direct connection between electric motor and wheels, preserving the pure V12 behavior. The e-motor is powered by a supercapacitor providing three times more power compared to a lithium-ion battery. Perhaps the biggest departure from the original rear-wheel drive Countach is the new car’s Haldex Gen-IV AWD system.

Numbers? Zero to 100kph in 2.8 seconds, zero to 200kph in 8.6 seconds, with a top speed of 355kph. It can brake from 100kph to a standstill in a stunning 30 meters.

Shunning the now-common electric power steering, Lamborghini employed hydraulic power steering, with three different characteristics coupled with Lamborghini Dynamic Steering (LDS) and Rear Wheel Steering (RWS), all managed by drive select mode.

The monocoque chassis and all the body panels are in carbon fiber, providing light weight and exceptional torsional stiffness — the Countach LPI 800-4 weighs only 1,595 kg for a dry weight-to-power ratio of 1,95 kg/cv. Carbon fiber is seen on the front splitter, around the front window and wing mirrors, engine cover air intakes and rocker panel and it is always present in specific interior details. Moveable air vents produced by the state-of-the-art 3D printing technology, and a photochromatic roof — changing from solid to transparent at the push of a button — act as a reminder that this car, despite its historic inspiration, is a future automotive screensaver for the 21st century.

The Countach LPI 800-4 is unveiled in a dedicated color Bianco Siderale, containing a hint of pearlescent blue and reminiscent of Ferruccio Lamborghini’s own Countach LP 400 S, complete with red and black leather heritage interior.

The Countach LPI 800-4 20-inch (front) and 21-inch (rear) wheels are created in the “telephone” style of the 1980s, fitted with carbon ceramic brake discs, and Pirelli P Zero Corsa tires with size 255/30R20 for the front and 355/25R21 for the rear. (The original Countach had then-widest 345/35R15 Pirelli P7 tires.)

Owners of the exclusive limited edition Countach LPI 800-4 can choose from a range of heritage exterior paint options, such as the iconic Impact White, Giallo Countach, and Verde Medio. Otherwise, the contemporary palette offers modern metallic colors, such as Viola Pasifae or Blu Uranus.

An 8.4-inch HDMI center touchscreen unique to the LPI 800-4 manages car controls including Apple CarPlay. It also includes a unique button entitled “Stile” (Design): pressed, it explains the Countach design philosophy to its privileged audience.

Lamborghini set the automotive world on fire when it unveiled the Countach in 1971. Fifty years later, it is doing exactly the same with the new Countach LP 800-4. And all the world’s a stage yet again.

Analysts weigh in as Robinsons Land’s REIT sets P6.45 price

By Keren Concepcion G. Valmonte, Reporter

THE real estate investment trust (REIT) sponsored by Robinsons Land, Corp. (RLC) has set its final offer price nearly 12% lower than the P7.31 price-ceiling it set in its preliminary prospectus.

“Please be advised that the final price for the REIT initial public offering (IPO) of RL Commercial REIT, Inc.’s (RCR) common shares is P6.45 per common share,” the company told the exchange on Friday.

Analysts said the pricing could have to do with the country’s current economic conditions amid the surge in coronavirus disease 2019 (COVID-19) cases.

“This may have to do with market or economic conditions in view of the more contagious Delta variant that led to lockdowns or tighter restrictions that could slow down business or economic activities amid record-high new COVID-19 cases,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message on Saturday.

On Friday, the Health department logged 17,231 new COVID-19 infections and 317 new fatalities. The country’s tally totaled 1,824,051 on Saturday after an additional 16,694 new cases were reported.

Active cases stood at 123,935 as of Saturday with a positivity rate of 25.2%, down from the 26.1% positivity rate seen the previous day. Metro Manila, Laguna, and Bataan will be under the modified enhanced community quarantine (MECQ) until the end of the month.

However, RCR’s lower IPO price may still benefit the company by luring in more investors.

“The lower final offer price may entice more investors to subscribe to the IPO, given the more attractive yields that the issue may present,” Timson Securities, Inc. trader Darren Blaine T. Pangan said in a Viber message on Saturday.

RCR will be offering to the public 3,342,864,000 common shares for P6.45 apiece, with an overallotment option of up to 305,103,000 common shares. The company may raise up to P23.53 billion in proceeds, which it will use to reinvest in the country.

“We want to be able to contribute to nation-building by building more projects and therefore helping create jobs and helping restart the economy,” RCR President and Chief Executive Officer Jericho P. Go told BusinessWorld Live on Wednesday.

RCR’s offer period will run from Aug. 25 to Sept. 3, targeting a listing date of Sept. 14. Shares will be listed on the main board of the Philippine Stock Exchange under the trading symbol “RCR.”

The company has 14 commercial real estate assets in its initial REIT portfolio, which are located in central business districts across Makati, Bonifacio Global City, Ortigas, Quezon City, and Mandaluyong and in key cities of Naga, Tarlac, Cebu, and Davao.

RCR said it has the “most geographically diverse Philippine REIT,” with a total gross leasable area (GLA) of 425,315 square meters (sq.m.).

“We already have tenants in our buildings with very high occupancy rates, we are already guaranteed of a steady income stream, and at the same time we have built-in three percent to five percent annual rental escalation,” Mr. Go said.

RCR also has an “excellent expansion pipeline.”

“We do have additional projects that are in the pipeline that can help grow RCR by almost double the size in about four to five years’ time,” Mr. Go said.

In a previous statement, the company said its potential additions to its portfolio include RLC’s Cyberscape Gamma located in Ortigas and/or Robinsons Cybergate Center 1 in Mandaluyong. RCR said it entered into a memorandum of understanding with RLC.

“Including the Cyberscape Gamma and the Robinsons Cybergate Center 1, RLC has approximately 204,000 sq.m. GLA in existing office assets, 68,000 sq.m. GLA of business process outsourcing (BPO) spaces located within RLC’s various commercial centers as well as 150,000 sq.m. GLA of properties that are in various stages of construction,” the company said in an e-mailed statement on Aug. 11.

RCR said its potential pipeline for infusion spans an estimated 422,000 sq.m., which are still subject to its fund manager’s recommendations, market conditions, and regulatory approval.

Rates of T-bills, T-bonds to rise as gov’t cuts GDP goal

BUREAU OF THE TREASURY FACEBOOK PAGE

RATES of government securities on offer this week will likely increase after economic managers trimmed the country’s growth outlook and as investors await the Treasury’s September borrowing plan.

The Bureau of the Treasury (BTr) is set to offer P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.

On Tuesday, the BTr will auction off P35 billion in reissued 20-year Treasury bonds (T-bonds) with a remaining life of 11 years and seven months.

A bond trader said rates of the T-bills will continue to move sideways, while the 20-year T-bonds could fetch a higher average yield between 4.2% and 4.375%.

“The bulk of FXTN issuances is at the belly to long end of the curve this month, while the market is anticipating the supply for September,” the trader said via Viber.

The trader added that the government’s move to lower its growth target, as well as Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno’s comments that the central bank is unlikely to cut banks’ reserve requirements anytime soon, could also affect yield movements this week.

A second bond trader also expects the rates of the short-term debt papers to move sideways but gave higher 4.25-4.4% forecast for the yield on the 20-year papers.

“Investors will continue to demand a little higher rate for this bond due to frequency of supply and tenor,” the trader said via Viber.

The interagency Development Budget Coordination Committee on Wednesday slashed its gross domestic product (GDP) growth target for the year to 4-5% from the already downgraded 6-7% goal after the government tightened restrictions anew in Metro Manila and other parts of the country due to a surge in coronavirus infections.

Meanwhile, Mr. Diokno earlier said cutting lenders’ reserve ratios now would be “untimely and not justified” as there is still a lot of liquidity in the financial system.

At the secondary market on Friday, the rates of the 91-, 182- and 364-day T-bills stood at 1.138%, 1.43% and 1.624%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the yield on the 10-year bonds, which is the closest benchmark tenor to the remaining life of the reissued 20-year papers on offer on Tuesday, stood at 4.088%.

The BTr raised P15 billion as planned via the T-bills it offered last week as the auction attracted P53.276 billion in tenders, making it 3.6 times oversubscribed.

Broken down, it borrowed P5 billion as planned via the 91-day papers at an average rate of 1.066%, a tad higher than the 1.064% quoted in the Aug. 16 auction.

It also raised P5 billion as programmed from the 182-day T-bills. The average yield on the six-month debt stood at 1.407%, unchanged from the previous week’s level.

Lastly, the Treasury made a full P5-billion award of the 364-day securities it offered as the tenor’s average rate fell to 1.617% from 1.625% previously.

Meanwhile, the last time the BTr auctioned off the reissued 20-year T-bonds on offer on Tuesday was on June 29, when it made a full P35-billion award out of bids worth P65.265 billion.

The T-bonds fetched an average rate of 4.187%, higher by 55.2 basis points than the paper’s 3.635% coupon.

The Treasury is looking to raise P200 billion from the local market this month: P60 billion via weekly offers of T-bills and P140 billion from weekly auctions of T-bonds. The BTr is expected to release its borrowing plan for September in the coming days.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of GDP. — B.M. Laforga

SEC issues halt order against Royal O’ and affiliates

THE Securities and Exchange Commission (SEC) has issued a cease-and-desist order against Royal O’ Consultancy Services OPC and related entities for offering unlicensed investment schemes to the public.

The SEC has previously released advisories warning the public not to invest in Royal O’ Consultancy and its affiliates, which are said to be owned by a certain Princess Joana Jo Alfajid Campos and led by Gretchen Aguas, its president.

Royal O’ Consultancy is said to be registered with the SEC as a one-person corporation (OPC) with Company Registration No. 2021010005460-01.

The cease-and-desist order also covers Royal O’ International Import and Export OPC, also registered with the commission as a one-person corporation with Company Registration No. 2021010005106-10, and Oromagnet International E-Games OPC with Company Registration No. 2020100002972-12.

All three entities have articles of incorporation explicitly stating that “the corporation shall not solicit, accept or take investments/placements from the public, neither shall it issue investment contracts.”

“The complaints submitted by the EIPD (Enforcement and Investor Protection Department) show that a considerable number of investors were enticed, and have actually parted with their hard-earned money, on the basis of the guaranteed high return of their investments that were promised to them,” the SEC said in an issuance.

The other individuals involved in the scheme, which are named by the regulator, are one of its agents Scelnna M. Jimenez, leader and offeror Christopher “Toffy” Dimaguila, agent Christopher “Ace” Tundag, and Team Malacash Group Chat Administrator Honeylyn Grace Israel.

Two of Royal O’ Consultancy’s affiliates are registered with the Department of Trade and Industry — Plasmatech Medical Supplies Trading with Certificate No. or Business Name No. 1864944 and Bacolod-based Royal O’ Dry Goods Trading with No. 1864944 and 2391576 and 2316919.

Meanwhile, Princess Joana Jo Alfajid Campos Foundation is said to be an unregistered foundation based in Geneva, Switzerland.

Royal O’ Consultancy lures investors in its scheme by branding it as a “co-ownership of funds to cater to various businesses involved with, among others, in operation of macro and micro-businesses, trucking, importation, and exportation of goods, etc.”

The entity and its affiliates were offering investment schemes to the public via business presentations on Zoom, Facebook posts, and YouTube, the SEC said.

Royal O’ Consultancy and its affiliates also do not have the necessary licenses to sell securities. The entity also did not file nor does it have a pending application for registration to sell securities to the public.

“The inescapable conclusion is that the sources of Royal O’s profits which were used to pay the guaranteed returns of its investors were derived not from legitimate businesses activities, but solely from the unauthorized investment taking activities of Royal O,’” the commission said.

Royal O’ Consultancy’s scheme is said to also resemble a Ponzi scheme, which promises investors big returns with little or no risk at all and where the investments of new investors are used to pay off the “profits” of old investors. — Keren Concepcion G. Valmonte

AVID YTD sales up by 43% despite July dip

AVID President Ma. Fe Perez-Agudo

THE ASSOCIATION of Vehicle Importers and Distributors, Inc. (AVID) reported that its member companies saw an increase in year-to-date (YTD) sales for the first seven months of 2021, compared to the same period last year. Last year’s figure of 24,610 units rose by 43% to 35,092 this year.

Meanwhile, July sales experienced a slight contraction of 5% from 5,101 units sold in July 2020 to 4,862 units this year. Versus June (4,961), the figure dropped marginally by 2%.

AVID said in its release that “(the) performance reflects the industry’s overall improvement amid the pandemic.” Sales of light commercial vehicles (LCV) “hold the lion’s share with 72% of total industry.” LCV sales surged by 52% from 16,561 units in 2020 (January to July) to 25,127 units sold in the same period this year.

Leading the segment is Ford with 10,343 units sold. Suzuki follows with 7,076 units, and Hyundai is in third with 3,177 units sold.

Commercial vehicles registered the highest category sales growth rate with a 448% surge YTD. Hyundai accounted for sales of 852 units here, improving significantly from the 156 units sold in the same period last year. Passenger car sales grew by 15% growth from 7,893 units sold in 2020 to 9,110 units this year. Suzuki still leads the segment with 4,559 units sold. Coming in second is Hyundai with 2,979 units sold.

“The gradual adaptation of the automotive industry to ‘now normal’ operations is mainly driven by the valuable lessons gathered and learned over the course of the period. These lessons fuel our passion for developing new and innovative ways to addressing the needs of the market. And AVID is determined to pave the way towards recovery,” said AVID President Ma. Fe Perez-Agudo.

Fashion and identity

ANTHILL —ANTHILLFABRICGALLERY.COM/

WHILE fashion is an enterprise governed by economics, fashion also operates within the fields of culture, politics, and psychology by constructing beings through selling, ostensibly, looks, but also ideas and identities.

A talk titled “Clothes and Culture: Defining National Identity Through Fashion,” by exclusive members-only club Manila House, featured several fashion designers and other fashion practitioners discussed how (and even, if) national identity is woven into clothing.

The talk featured Filipino designers Rajo Laurel, Anne Marie Saguil (of Amarie), South African designer Craig Jacobs, German designer Gabriele Frantzen, Filipino entrepreneur Mons Romulo of the Katutubo Pop-Up Market, and social entrepreneur Anya Lim of Anthill Fabric Gallery.

Ms. Lim said, “I read somewhere that our ancestors considered our textiles our second skin, and I thought it was something we should celebrate.” Her Anthill Fabric Gallery utilizes indigenous Filipino textiles in modern takes. The thought that textiles themselves serve as markers of identity flavored the rest of the talk.

“In my case, that has always been my identity,” said Mr. Laurel, who has participated in fashion shows abroad as well as dressing international clients. “Fashion, from my understanding, is a lot of white noise. The only way to truly clean that white noise is to be who you are. Me, being a Filipino, that was my identity. As a designer, that was the vocabulary I chose to speak,” he said.

“If you understand who we are as a nation, as a culture, I believe that we are truly the first global citizen, because of all the people who entered our country,” he said, citing the various colonial periods and regional trade recorded over the last 500 years or so. “All of these amalgamations truly define who I am as a designer.”

Ms. Saguil, who designs embroidered resortwear said, meanwhile, “I think we all as designers just try to express ourselves… for me, embroidery just happened to be this craft that I fell in love with. That’s how I integrated it.

“I don’t think that identity is something that we really push for – we’re not waving a flag here,” she said, though she does agree with Mr. Laurel’s point. “The Philippines is my influence; it’s my aesthetic. This was where I grew up — everything. Just by virtue of that, I think that’s how our culture comes through. By virtue of being in the Philippines, of being a Filipino designer in the Philippines, your identity; your culture comes through.”

Anthill’s Ms. Lim has a special interest in indigenous textiles, a material intrinsically colored by local culture. “When you talk about design, it’s not just limited to using indigenous or handwoven Philippine textiles, right? All of us here are celebrating our talent through our way of expressing our aesthetic. That is still somewhat our identity.”

Ms. Lim’s brand takes certain precedence with the question of identity in fashion, considering that the indigenous peoples that her brand works with also struggle with notions of identity in an increasingly modern world. “When we design for identity, we also take into consideration not just those who will wear our [products], but also the weavers, who themselves have a poverty of identity.” She cites the lack of interest younger members of these indigenous groups have to weave, with several desiring to migrate.

“If we want to continue or grow the movement of younger Filipinos… taking pride in our local design, we need to be innovative and be open to combining commercial fabrics with indigenous fabrics,” said Ms. Lim.

Ms. Romulo, founder of Katutubo, which supports local designers and indigenous creators, said, “We have to support our weavers, our heritage our culture… at the same time, we have to celebrate our designers who are there making beautiful clothes.” She notes that sometimes, fabrics have to be sourced abroad due to local limitations on manufacturing (indigenous fabric or otherwise).

“Then again, it’s a Filipino culture and intelligence that comes in when they design certain clothing. That alone is a celebration of culture.” — J.L. Garcia

CIC streamlines registration process for database’s submitting entities

STATE-RUN Credit Information Corp. (CIC) has simplified its online registration process and lessened requirements for lenders under its new guidelines.

CIC issued Circular No. 02, series of 2021, laying out a simplified registration process for submitting entities requiring less documents and steps.

CIC President and CEO Ben Joshua A. Baltazar said in a statement that the country’s credit registry now has 606 submitting entities, while more than one thousand lending institutions currently registering with their database.

“We streamlined and simplified the entire registration process so we can stay true to our mandate of providing reliable and standardized information on the credit history of borrowers,” Mr. Baltazar said.

Under the new guidelines, entities are required to submit their Certificate of Registration, Articles of Incorporation or Articles of Cooperation, and their Secretary’s certificate.

Once verified and proven to be eligible, the lender will then receive a link to the CIC’s Online Submitting Entity Information Sheet (SEIS), which will generate the documents to be signed by their authorized representatives.

After this, the CIC will assign a provider code to the lender, along with credentials, to access the Covered Entity Portal where the submitting entity has to encode its batch operators or the persons assigned to submit data to the credit registry.

Mr. Baltazar said the new guidelines will cover new applicants, while registered submitting entities will just have to update their SEIS through the CIC Portal.

“Given all the new policies and reforms that the CIC is implementing including this streamlined online process of submission, the public can expect wider and more consistent credit reporting compliance from financial institutions which will result in improved data quality,” he said.

As of July, CIC houses the credit data of 28 million borrowers, equivalent to unique individuals with 97 million contract data. The bulk of the database or 72.4 million records were on installment transactions, followed by 23.3 million in credit card data and 1.2 million records of non-installment transactions.

Contributors to the database include universal and commercial banks, rural banks, thrift banks, credit card issuers, lending and financing companies, cooperatives and cooperative banks, microfinance institutions, savings and loans associations, insurance companies, as well as state-run public insurer Government Service Insurance System. — BML

CAMPI, TMA year-to-date sales grow by 46.1%

Chamber of Automotive Manufacturers of the Philippines, Inc. President Atty. Rommel Gutierrez — PHOTO FROM TOYOTA MOTOR PHILIPPINES

SEVEN MONTHS into the year, it appears that the auto industry is continuing to paint a picture of recovery from the woes of 2020. Based on consolidated reports from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA), member companies mustered a year-to-date (YTD) sales total of 154,265 units — 46.1% higher versus the same stretch last year.

In July alone, 21,498 vehicles were sold — 4.7% higher than the 20,542 units delivered in the same month last year.

Leading the way is Toyota Motor Philippines Corp. (TMP), which accounted for half (50.07%) of total units moved in July. Its 10,763 total is 4.3% less than the 11,242 vehicles Toyota shipped in June. However, when compared to July 2020 sales (8,833 units), this figure represents 21.8% growth. YTD, the Japanese brand has sold 74,521 vehicles (48.31% of total CAMPI/TMA sales).

In second place for the month is Mitsubishi Motors Philippines Corp. (MMPC) with 2,646 units sold — down 9.8% compared to the previous month’s 2,933 total. The company cornered 12.31% of the market. MMPC’s YTD sales totaled 22,504 — 14.59% market share.

Third place goes to Suzuki Philippines, Inc. (SPH) with 1,648 vehicles sold, down 8.2% from 1,795 units moved last June. It attained a 7.67% share of the market. YTD, SPH has sold 11,635 units, or 7.54% of total sales. Ford Motor Company Philippines, Inc. (FMCPI) is in fourth place with July sales of 1,586 units, down from 1,616 units in June. Ford took a 7.38% slice of total sales for the month.

Finally, Nissan Philippines, Inc. (NPI) completes the top five with 1,362 units sold in July. Cornering a 6.33% share of CAMPI/TMA sales, this total is 12.1% lower than NPI’s June deliveries of 1,548 units.

In a release, CAMPI President Atty. Rommel Gutierrez said, “The industry welcomed the year-on-year growth of 4.7% but anticipates a decline in sales this month with the reimposition of ECQ in NCR, among other high-risk areas.”

Can luxury fashion brands ever really be inclusive?

MICHAEL LEE/UNSPLASH

LUXURY goods tend to be associated with exclusivity rather than inclusivity. But thanks to the universal scrutiny of social media and consumer activism, high-end brands are under increasing pressure to be seen as companies who care.

Some have spent large sums on initiatives which address environmental concerns, or used their expertise to help deal with the pandemic.

The Kering group (which owns Yves Saint Laurent and Alexander McQueen) has, for example, set a target to reduce greenhouse gas emissions by 50% by 2025.

In response to coronavirus disease 2019 (COVID-19), fashion house Burberry donated more than 100,000 pieces of PPE to the National Health Service and healthcare charities. Meanwhile, luxury firm LVMH used its perfume manufacturing facilities to make free hand sanitizer for the healthcare system in France.

Yet it remains unclear whether consumers can reconcile the exclusive nature of luxury brands — selling at prices many cannot afford — with a public image of sustainability and environmental or social awareness. A range of studies has shown that consumers are ambivalent about such efforts. Research into millennials’ attitudes showed that younger consumers even see the concepts of luxury and sustainability as contradictory.

This is understandable, for some brands’ apparent attempts to tackle societal challenges have come after they received widespread criticism for their own apparent failings.

Gucci for example, has a $1.5-million (£1 million) plan to support young designers from underrepresented backgrounds. But it was launched after the brand faced accusations of racism over a sweater design.

And while Prada has spoken out against racial injustice on social media, the company has also been forced to apologize for merchandise that was deemed racist. Dior, meanwhile, launched a message of support and solidarity accompanied with a black background. But again, it comes after allegations of cultural appropriation.

A New York Times report showed that among top designers and creative directors in the fashion world, only four are black. Models and photographers from diverse backgrounds are also severely underrepresented in the luxury fashion industry.

Designer Virgil Abloh, head of men’s fashion at Louis Vuitton, is one of the few black figures to have reached the summits of a luxury brand. He has commented: “Diversity isn’t just a question of gender and ethnicity. It’s a question of experience. It brings new ideas to the table. And it would be good if the fashion industry actually listened and took them on board.”

Against this complex backdrop, we asked members of the British public for their thoughts on inclusivity campaigns from luxury brands. Overall, consumers — particularly those on lower incomes — had a negative response.

The majority of the people we surveyed (87%) believe luxury brands would fare better at becoming more inclusive by focusing on fair pay and workers’ rights.

Efforts towards climate change initiatives were also popular (79%), as were work aimed at reducing racial and gender inequality.

Respondents also welcomed the idea of luxury brands selecting partners and suppliers in response to social and political situations. For instance, Burberry’s decision to boycott cotton from the Xinjiang region of China over alleged human right abuses.

Overall, our survey suggests that — despite some progress — much remains to be done by luxury brands. And the question remains over whether an industry which revels in exclusivity can embrace inclusivity in a way that drives real societal change?

As consumers increasingly demand transition towards an inclusive society, a unique window has opened for luxury brands to become better agents of social change by aligning their missions, values and strategies to social purpose. Luxury brands are in a key position to lead business action by leveraging their cultural authority.

They have an opportunity to use their influence and actions to advance public debate and accelerate behavioral change. If they don’t take it, any gestures towards inclusivity risk being seen as nothing more than an opportunistic exercise in public relations and image.

 

Paurav Shukla is a Professor of Marketing, University of Southampton, while Dina Khalifa is a Senior Research Associate, University of Cambridge.

Burry’s ‘Pretty Big Short’ hinges on Treasuries sinking

CALL IT the “Pretty Big Short.”

Michael Burry, whose huge, wildly profitable bets against the housing bubble were made famous in The Big Short, is wagering that long-term US Treasuries will fall.

His Scion Asset Management held $280 million of puts on the iShares 20+ Year Treasury Bond ETF at the end of June, according to a regulatory filing released this week, an increase from $172 million three months earlier.

The options contracts would make money if TLT, as the exchange-traded fund is known, falls as Treasury yields go up — something that hasn’t happened lately as fear of the delta variant drives investors into Treasuries.

But ahead of the Federal Reserve’s annual Jackson Hole symposium, many still suspect the central bank will be able to start tapering bond purchases later this year, which could prove the bears right.

Traders will be listening for hints from Chairman Jerome Powell on how much COVID-19’s resurgence is weighing on economic growth, and whether that sways when the Fed changes course.

“Every aspect of the economic data we look at, from the labor markets to inflation, are all tending to look pretty healthy,” which should cause yields to rise over coming months, said Guneet Dhingra, head of US interest-rate strategy at Morgan Stanley.

“And the Delta-variant fears have been priced into the market and may have already peaked. We are watching as a potential market mover off Jackson Hole whether Fed Chair Powell has updated his view on delta, after so far seeming not particularly worried about it.”

Minutes from the Fed’s last meeting showed most officials saw reducing monthly debt purchases starting later this year. Markets see Fed rate increases beginning in the first quarter of 2023.

The iShares ETF, which tracks Treasuries maturing in more than 20 years, has gained 12% since bottoming in March while 30-year yields have fallen to 1.87% from 2.51%.

Morgan Stanley strategist Matthew Hornbach, known for bold calls that have frequently panned out, told his clients this month that he remains confident in his recommendation to bet against 10-year Treasuries despite a swoon in yields.

The firm expects the yield to end the year at 1.8%, up from 1.26% currently, with the Fed announcing tapering in December.

It’s unknown whether Scion has shifted its positions since June. A call to Scion’s office in Saratoga, California, went unanswered Friday.

In a flurry of tweets in February, Mr. Burry warned that the economic reopening and economic stimulus would fan inflation, drawing a parallel between US policies today and Germany’s during hyperinflation in the 1920s — the sort of situation that could prompt the Fed to jack up rates.

Mr. Burry’s bearish bond bet is largely in line with the calls of most Wall Street strategists. The median forecast in a Bloomberg survey is for the 10-year yield end the year at 1.6%, with the most bullish and bearish estimates at 1% and 2%, respectively. — Bloomberg

MVP Group ramps up inoculation as more vaccines arrive

FREEPIK

COMPANIES led by Manuel V. Pangilinan (MVP) have inoculated more employees after the arrival of a fresh batch of vaccines amid the Delta variant of the coronavirus disease 2019 (COVID-19), the group said.

In a statement, the so-called “MVP Group” said the new batch of vaccines prompted the opening of its fourth mega vaccination site in the National Capital Region (NCR) — the Makati headquarters of Smart Communications, Inc.

Alfredo S. Panlilio, PLDT, Inc. and Smart Communications president and chief executive officer, described the vaccines’ arrival as a ray of hope.

“I believe that the sooner we get these vaccinations done, the more lives we will be able to save, and the quicker we can revive our economy and recover as a nation,” he said.

The MVP Group’s vaccine task force, which is chaired by Mr. Pangilinan, said the latest batch of vaccines puts it on course for inoculating all its people.

It previously announced that it ordered vaccines from Moderna and AstraZeneca enough for more than 300,000 employees, dependents and household members, and the group’s extended work force.

The activation of Smart Tower as a vaccination site was made possible with the help of the City Government of Makati.

With forthcoming regional vaccinations, the conglomerate’s vaccine task force is looking at a network of over 30 locations for inoculations nationwide.

The first arrival of company-procured Moderna vaccines end-June 2021 allowed the MVP Group to begin vaccinations of non-medical employees at pilot NCR megasites on the first week of July. Vaccination rates for pilot sites reached as much as 1,350 jabs per day.

The vaccination sites are manned mainly by frontliners from the MVP Group’s own Metro Pacific Hospitals Holdings, Inc. (MPHHI), the country’s largest private hospital chain.

Up to 98% of frontliners from MPHHI’s largest hospitals were vaccinated as early as March 2021, including those from Smart Tower’s healthcare partner, Makati Medical Center.

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