Home Blog Page 6167

July inflation seen within BSP target

PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

HEADLINE INFLATION likely eased to a seven-month low in July, and returned to within the central bank’s target range, with analysts noting that improved meat supply and a slower rise in transport costs likely offset higher prices of fuel and other food items.

A BusinessWorld poll of 15 analysts yielded a median estimate of 4% for July inflation.

If realized, this would mark the first month since December that inflation settled within the 2-4% target of the Bangko Sentral ng Pilipinas (BSP). It would also be nearer the lower end of the BSP’s 3.9-4.7% estimate for July.

Analysts’ July inflation rate estimates (2021)

The July print also likely eased from June’s 4.1%, and is the slowest increase in the consumer price index (CPI) since the 3.5% in December 2020. However, it is much faster than the 2.7% a year ago.

Analysts attributed the slight easing in the CPI reading last month to improvements in the supply of meat, even as Typhoon Fabian drove prices of other food staples higher.

“Pork prices would still gradually ease in the coming weeks and months as a result of lower import tariffs on pork and higher import volumes, thereby could help ease food prices,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Security Bank Corp. Chief Economist Robert Dan J. Roces expected a slightly faster increase in food prices month on month as fish and vegetable prices went up as the typhoon damaged crops.

The Department of Agriculture said farm damage caused by the typhoon hit P615.72 million as of July 30.

The impact of the continued rise in global oil prices may have been offset by the better supply of meat products in the local market, Alvin Joseph A. Arogo, research head at Philippine National Bank, said.

In May, the government increased the minimum access volume and cut tariff rates for pork imports effective for a year. This was aimed at boosting local supply, after soaring prices pushed inflation beyond the target in recent months.

Meanwhile, global oil prices have steadily risen in the past four months amid continued demand and tight supply. In the local market, prices of gasoline, diesel, and kerosene have gone up by P12.85, P10.30 and P8.70 per liter, respectively, year to date as of July 27.

Moody’s Analytics Senior Asia Pacific Economist Katrina Ell said another key factor for easing inflation is the relatively slower rise in transport prices.

To recall, the transport index in July 2020 rose by 20.1% due to higher commuter costs. The government continued to limit public transportation capacity, even as the lockdown eased last year.

This year, the central bank expects inflation to average 4%. The CPI reading in the first half of the year was still above target at 4.4%.

The Philippine Statistics Authority (PSA) will report the July inflation data on Aug. 5.

The easing inflation and the rising number of coronavirus cases with the Delta variant strengthen the case for the BSP to retain its loose policy, analysts said.

“The sustained accommodative monetary policy environment is critical to support the economy as it continues to battle elevated infections alongside movement controls. Domestic demand will stay suppressed until infections drop further and the vaccination program gathers further steam,” Ms. Ell said.

ANZ Chief Economist for Southeast Asia Sanjay Mathur noted that BSP Governor Benjamin E. Diokno has signaled the central bank’s commitment to support the economy until next year.

“There is no reason to assume that this reaction function has changed and if anything, easing inflation can only fortify it,” he said.

Mr. Diokno in June said they will retain an accommodative monetary policy until economic recovery becomes more sustainable, which he believes will happen around the second half of 2022.

On Friday, the BSP chief said this accommodative monetary policy is more crucial given that while the economy is already recovering, the rebound has been “slower-than-anticipated.”

Meanwhile, Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said the BSP could go for a “preemptive” hike under conditions such as the US Federal Reserve announcing its 2022 plan for reduction of asset purchases, which could cause strong depreciation for emerging market currencies like the peso, or when the second-quarter gross domestic product (GDP) exceeds market expectations.

The PSA will release second-quarter GDP data on Aug. 10.

The Monetary Board on June 24 kept the key policy rate at a record low of 4%. It will have its next policy review on Aug. 12.

‘Hot money’ enters PHL for 2nd straight month

MORE FOREIGN PORTFOLIO investments (FPI) entered Philippine markets than left it for a second straight month in June, when lockdown restrictions were further eased amid a drop in daily active cases.

“Hot money” — dubbed as such for the ease by which these funds enter and flee an economy — yielded a net inflow of $334.51 million in June, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Friday evening.

This is a turnaround from the $235.14-million net outflow a year earlier, but 20% less than the $416.74 million in net inflow seen in May.

For the first half of 2021, hot money still posted a net outflow of $106 million as the coronavirus crisis continued. This was, however, much smaller than the $3.3-billion outflow seen in the January to June 2020 period.

The BSP said market sentiment in June was lifted by the House of Representatives’ approval of the proposed third stimulus package under Bayanihan to Arise as One Act (Bayanihan III), which allocates financial aid for all Filipinos.

The improving flows of foreign direct investments; the progress of the vaccination program; as well as the central bank’s decision to keep policy rates at record lows also helped boost market sentiment, the BSP said.

Also in June, the International Monetary Fund slashed its 2021 growth forecast for the Philippines to 5.4% from 6.9%, while the statistics agency’s data showed an unemployment rate of 8.7% in April 2021, inching up from 7.1% in March.

The net inflow in hot money seen in June reflects better investor sentiment as the country had a “relatively more managed pandemic situation” than neighboring economies in terms of the Delta infections, Asian Institute of Management economist John Paulo R. Rivera said in a Viber message.

In June, Indonesia, Thailand, and Vietnam began seeing a Delta-driven surge in COVID-19 infections. At that time, active cases in the Philippines had fallen from the peak in April when daily infections rose by more than 10,000.

Rizal Commercial Banking Chief Economist Michael L. Ricafort said in a Viber message that the net inflows of hot money were backed by a better investment climate with the economy’s gradual reopening.

FPI inflows in June more than doubled to $2.105 billion from $1.019 billion a year ago and by 44% from May’s $1.458-billion level.

But outflows also rose 41% to $1.771 billion from $1.254 billion in June 2020 and by 70% from the $1.041 billion in the previous month.

The United Kingdom, United States, Singapore, Luxembourg, and Norway were the top five sources of inflows for the month, the central bank said.

The bulk or 91% of the investments went to securities listed in the Philippine Stock Exchange such as food, beverage and tobacco companies, property firms, banks, holding firms, and retail companies. The remaining 9% were invested in government securities.

Investor sentiment in the coming months would depend on how they view the impact of the upcoming two-week enhanced community quarantine (ECQ) in Metro Manila and nearby provinces on the economy, Mr. Rivera said.

“Short-term investors may veer away (from the Philippines) because of the immediate impact of the upcoming enhanced community quarantine on businesses,” he said.

Metro Manila and nearby provinces will be placed under an ECQ from Aug. 6-20, as the government tries to curb a Delta variant-driven spike in coronavirus cases.

Mr. Ricafort said inflows for the fund-raising activities of some firms may help offset the risk-off sentiment caused by the lockdown.

Filinvest REIT. Corp. is conducting a P12.6-billion initial public offering (IPO), while Del Monte Philippines, Inc. is also set to launch a P44-billion IPO this month.

The BSP expects hot money to yield a net inflow of $5.5 billion this year. — Luz Wendy T. Noble

PHL exporters seek support amid carbon tax proposal

PHILIPPINE STAR/EDD GUMBAN

By Jenina P. Ibañez, Reporter

PHILIPPINE EXPORTERS are seeking financial and technological support from developed countries to address carbon emissions as the world’s biggest economies mull climate-related tariffs on traded goods.

The European Union (EU) last month unveiled a proposal to impose carbon border taxes on carbon-intensive overseas businesses, which was designed to protect European industries cutting emissions from being at a competitive disadvantage to imports.

In the United States, Democrats in their budget plan proposed a tax on imports from countries that do not have strong climate change policies.

“There has to be a fair approach,” Philippine Exporters Confederation, Inc. (Philexport) Chairman George T. Barcelon said in a phone interview last month. “If (developed countries) are more advanced in technology, there should be technological targets.”

“All these industrialized countries that started 150 years ago somehow have to take responsibility too. What they are imposing now are burdens on developing countries to follow this stringent policy at their own expense.”

The EU policy could take effect in 2026 and is expected to affect countries like China and Russia most, or large exporters of aluminum and steel. Proposed tariffs would first be placed on steel, aluminum, cement, fertilizers and electricity.

An analysis from the United Nations Conference on Trade and Development (UNCTAD) found that the tariffs based on a carbon price of $44 per ton could translate to a $5.9-billion income loss for developing nations against income gains among developed countries.

“Developed countries, as a group, wouldn’t suffer export declines since many tend to employ production methods that are less carbon intensive in the targeted sectors than many developing nations,” UNCTAD said.

Developed countries are expected to experience higher welfare loss when the tariff is introduced, however, while effects on employment could be minimal for most economies.

In principle, Mr. Barcelon said that larger economies looking to impose carbon tariffs should contribute more to helping reduce emissions.

“There should be a counterpart, wherein can you help finance some of this pollution reduction projects in our country?”

Several manufacturing industries, he said, use power linked to carbon emission. And exporters charged with carbon tariffs would shift the costs to buyers, he added.

Sergio R. Ortiz-Luis, Jr., Philexport president, said in a mobile message that exporters are focused on addressing global supply chain woes and pandemic-related losses.

Container shortages and an ensuing surge in freight rates are causing shipment delays and losses for companies, the industry group said in May.

“With so many logistics and financial problems on the table, I don’t know exporters are even doing anything about the carbon tariffs,” he said.

Trade risks worsen as Delta descends on Southeast Asia factories

REUTERS

THE PANDEMIC’S IMPACT on global trade risks worsening in coming weeks as more factories across Southeast Asia brace for closures amid one of the world’s deadliest outbreaks.

Factory shutdowns are accelerating in Vietnam, while Thailand is prepping for outbreaks among its manufacturers and the Philippines tightens restrictions in its economic heartland.

While Southeast Asia weathered the spread of the coronavirus last year relatively well, the Delta variant has spread swiftly across a sprawling region that has been slow to vaccinate a population twice that of the US. The region’s death toll now has nearly overtaken Latin America as the world’s worst.

The economic impact will be acute for nations like Vietnam and Thailand, where exports were expected to be a bright spot as richer economies in the west emerged from lockdowns. The disruptions come as shipments and orders would traditionally ramp up to meet demand for the Christmas shopping season.

The new closings in Vietnam follow recent decisions by local manufacturers for Nike, Inc. and Adidas AG to suspend operations over virus restrictions. The country has been the second-largest supplier of apparel and footwear to the US for many years, according to the American Apparel & Footwear Association, which represents more than 1,000 brands, including Gap, Inc., J Crew Group, Inc. and Levi Strauss and Co.

Meanwhile, Thailand’s 60,000 factories are preparing for the worst, with the national industry group helping set up contingency plans to isolate all workers as manufacturing emerges as a potential new hotspot for infections. Toyota Motor Corp. earlier this week extended indefinitely its shutdown of three plants in Thailand because of COVID-related parts shortages.

Industry groups in both countries have called on their governments to help procure vaccines they intend to distribute privately, seeking to accelerate inoculation programs that are behind schedule. Only about 10% of factory workers are vaccinated in Thailand, according to the Federation of Thai Industries.

“The sector is lost. There’s nowhere we can turn to for vaccines,” said Supant Mongkolsuthree, the Thai group’s chairman. “Vaccines are the best solution, the best way to protect the people and the manufacturing sector. This will help prevent factories from becoming a source of infections.”

The American Apparel & Footwear Association said it sent letters this week about vaccine distribution to President Joe Biden and Vietnamese Prime Minister Pham Minh Chinh. Chief Executive Steve Lamar asked Mr. Biden to “immediately ramp up distribution of excess US vaccines to Vietnam and other key partner countries” including Bangladesh and Indonesia.

The food, electronics, garment, steel and plastic sectors are the most affected so far in Thailand, according to the country’s Center for COVID-19 Situation Administration, which said 49 of 77 provinces had reported outbreaks in factories. New clusters emerged Friday in tire and air-conditioner factories, it said.

In Vietnam, about 90% of Ho Chi Minh City-based factories that make textiles, shoes, bags, electronics and wood products have suspended operations after failing to meet mandates to provide on-site sleeping accommodations for workers, VnExpress news website reported Friday, citing data from four trade associations. The southern economic hub is currently the nation’s virus epicenter.

Meanwhile, many factories in southern Vietnam that did set up on-site sleeping arrangements are facing outbreaks among workers, the report said, citing information from the companies. — Bloomberg

NGCP readies power sourcing via ‘firm’ deals

BW FILE PHOTO

Move earlier seen to result in passing on cost to consumers

By Angelica Y. Yang, Reporter

SY-LED National Grid Corp. of the Philippines (NGCP) is looking at converting 35 “non-firm” contracts to firm-based arrangements for the provision of reserves or ancillary services (AS) to the power grid, according to the Energy Regulatory Commission (ERC).

At present, the grid operator is procuring AS from a mix of firm and non-firm contracts, which the Energy department previously flagged.

“NGCP is in the process of re-negotiating its non-firm AS contract(s) to firm contracts… There are a total of 35 non-firm contracts for conversion,” ERC Chairperson and Chief Executive Officer (CEO) Agnes VST Devanadera said during a House Committee on Energy hearing on July 30.

She added that NGCP is providing the energy regulator with weekly updates on the re-negotiation process. The ERC has already set a streamlined process for the conversion of contracts, Ms. Devanadera said.

The Energy department previously explained that non-firm contracts for reserves “compromise the reliability of the grid” at times since AS providers under these arrangements will decide when to provide reserve power.

Under a circular issued by the Department of Energy (DoE) in 2019, NGCP is required to source regulating, contingency and dispatchable reserves, through only firm contracts.

Data obtained by BusinessWorld showed that NGCP has inked 35 non-firm contracts with state-led and private entities, including the government-run Power Sector Assets & Liabilities Management Corp.; First Gen Hydro Power Corp., SNAP (or SN Aboitiz Power) Benguet and Magat; Energy Development Corp; AP Renewables, Inc.; and Global Business Power Corp.

These non-firm contracts are deemed as existing and “active.”

“The simulated rate impact of the conversion as computed by ERC and confirmed by DoE ranges from P0.19/kWh (per kilowatt hour) for Luzon, P0.36/kWh for Visayas and P0.28/kWh for Mindanao. The said projected rate impact is expected to go down as demand increases,” Ms. Devanadera explained.

NGCP is evaluating all existing contracts for reserve power, its top official said.

“On the matter of AS, we are assessing all the existing contracts and required capacities in view of the recent clarification made by DoE. We are pursuing all the 35 (non-firm contracts) and we would bid (them) out — do a CSP (competitive selection process) and all,” NGCP President and CEO Anthony L. Almeda said during the hearing.

NGCP only contracted regulating, contingency, and dispatchable reserves of 237 megawatts (MW), 180 MW, and 145 MW, respectively, from firm contracts for the Luzon grid as of the fourth quarter of 2020, based on DoE data.

The Luzon grid’s required capacity for regulating, contingency and dispatchable reserves stood at 491 MW, 647 MW, and 647 MW in the same period.

“If non-firms have the contract, the reserves aren’t guaranteed. That is why there is a thinning of supply when electricity demand goes up during the summer season,” DoE Secretary Alfonso G. Cusi said in an earlier statement in April.

However, in June, NGCP’s Mr. Almeda said that the full firm contracting of reserves will “only lead to a change in payment terms where all the power, used or unused, will be shouldered by the public.”

Moving daze: Hidilyn Diaz has travel perks

PHOTO FROM THE PHILIPPINE AIRLINES FACEBOOK ACCOUNT

By air or by land, our first-ever Olympic gold medalist is covered

WITH A MIGHTY heave, Hidilyn Diaz lifted us out of Olympic obscurity and, said not a few, to an extent above even the political doldrums that long weighed down on our country’s shoulders. Of course, it would be unfair to call Ms. Diaz a panacea for that which ails us. But she’s surely a salve we so desperately need on a gaping and smarting wound of division.

Many all over the world had questioned the wisdom of pushing through with the quadrennial meet during the pandemic, but looking back, this history-making participation is appearing to be just what Filipinos need during a distressing time of COVID, politicking, and economic difficulty.

The historic first-ever gold medal for the Philippines in almost 100 years is mind-blowing. Its significance cannot be diminished (but, to be fair, kegler Arianne Cerdeña also struck gold back in 1988, although bowling was a “demonstration sport” at the Seoul staging, so the medal wasn’t added to the official tally).

The much-deserved windfall for our Filipina weightlifting champion has started. Hidilyn is expected to get tens of millions of pesos for sure, along with free services and goods, sponsorships, perks, and other rewards that come with the magnitude and singularity of her feat. We suspect the universe of brands and supporters will get much bigger longer before very long.

It’s fascinating to note though that Hidilyn Diaz will never have to worry about traveling ever again.

National flag carrier Philippine Airlines got the ball rolling by making Ms. Diaz its first-ever “Forever Flyer.” This means the athlete receives “80,000 miles every year, for life,” said PAL on its Facebook post. The airline also held a simple awarding ceremony on board the PR427 flight that brought her back to her eager, excited countrymen.

Aside from getting a new house and lot, and condominium unit from donors, Hidilyn will have something to park in the garage of these — something big, in fact. Foton Motor Philippines, Inc. (FMPI) President Rommel Sytin announced in a release, “The Filipino pride stands high amid an international audience with the triumph of our Filipino athlete, Hidilyn Diaz. As she drives home glory, we are honored to prize her utmost dedication with the top-rated mobility of the Foton Transvan 13-seater.”

Powered by Foton’s 4JB1T engine (a 2.8-liter, turbocharged four-cylinder diesel) serving up 95hp (at 3,600rpm) and 225Nm (from 1,800 to 2,000rpm) mated to a five-speed manual, the Transvan stretches 4,850mm, is 1,695mm wide, and stands 1,980mm tall. The people mover gets a 1DIN head unit with CD, AM/FM radio, MP3 compatibility, a USB port, and Aux input.

Other accessories included are halogen foglamps, LED turn lamps, high-mount third rear brake light, rear under mirror, and individual seat belts. To keep Hidilyn and all her fellow passengers cool, there’s front and rear air-conditioning. Completing the features list are power windows and power locks. This big van will surely come in handy for our Olympian.

Foton Philippines confirmed to “Velocity” that Hidilyn will be getting a Cool Silver-colored unit.

Meanwhile, the Ayala Group of Companies’ social development arm, Ayala Foundation, Inc. (AFI), recognized Ms. Diaz as an “Atletang Magiting” (Brave Athlete). Aside from this honor, Hidilyn Diaz “will receive a top-of-the-line Kia Stonic” from the Ayala-led AC Motors and Kia Philippines.

Ayala points out that it has been supporting Philippine weightlifters (including Hidilyn) since 2016. The Bank of the Philippine Islands had donated training equipment for the Hidilyn Diaz Weightlifting Gym in Zamboanga City. Then in 2018, Samahang Weightlifters ng Pilipinas received a check donation from Ayala Land.

“Recognizing Diaz under the Maging Magiting program is part of Ayala Foundation’s sustained efforts to promote love of country. Through the Maging Magiting campaign, Ayala Foundation calls on Filipinos to take pride in our heritage and identity, by giving honor to our national emblems such as the flag, while also embodying the call for all of us to be heroes in our own ways,” said AFI in a release.

The Maging Magiting campaign also involves recognizing men and women in uniform through AFI’s Pulis x Pilipinong Magiting initiative.

The aforementioned top-of-the-line Kia Stonic (an EX AT) that will get Hidilyn (in Flash Yellow, we learned, because it’s the color closest to gold) is priced at P925,000. First unveiled in the country in October last year, the Stonic took its place as Kia’s entry-level crossover nameplate. The small SUV gets the brand’s familiar Tiger Nose Grille, a fin-type antenna, roof rails, and LED daytime running lamps (exclusive for the EX), rear combination lamps, a rear spoiler garnish, and projector headlamps. It rides on 16-inch alloy wheels.

Hidilyn won’t need to fumble with keys in the traditional manner as the EX gets smart entry and a push start system. The infotainment is predicated on an eight-inch touchscreen audio system that is compatible with Android Auto and Apple CarPlay. This is hooked up to a total of six speakers. The EX also gets a USB port and a 12V socket. Other niceties available to the EX alone are hill start assist and electronic stability control.

Two nice-looking vehicles in the garage for Hidilyn, plus unlimited-mileage flights? You deserve them and more, Hidilyn! Congratulations and thank you!

Hike in net metering rates to raise power cost – Meralco

BW FILE PHOTO

INCREASING the compensation of end users participating in the government’s net metering program must be thoroughly studied, as doing so will lead to higher power generation charges, Manila Electric Co. (Meralco) said.

“Meralco will continue to actively support the net metering program, but we think proposals that will lead to higher power rates should be carefully studied… Any increase in compensation to net metering participants will automatically mean a higher generation charge,” Meralco Vice-President and Head of Utility Economics Lawrence S. Fernandez told BusinessWorld on Viber last week.

The higher remuneration for participants under the program will be reflected in the power bills of other electricity consumers, he said.

Previously, Richard B. Tantoco, president and chief operating officer of Energy Development Corp. said in a BusinessWorld Insights event that a policy change enabling higher or what he referred to as “more equitable” net metering rates will encourage consumers to invest in solar technology for their establishments.

The government’s net metering scheme allows qualified customers to generate their own electricity through renewable energy (RE) facilities with a capacity of up to 100 kilowatts. Participants can then export excess power to distribution utilities (DUs), for peso credits which will offset their power bills.

“[The] rate of compensation is governed by ERC’s (Energy Regulatory Commission’s) net metering rules, as amended. It is at the prevailing generation cost of the host DU,” Mr. Fernandez said.

The Meralco official explained that there are cheaper ways to obtain energy from solar technology.

“Instead of forcing consumers to pay [more] for net metering energy, DUs like Meralco have entered into power supply agreements with solar plants at P5/kWh (per kilowatt hour) or even less,” he said, referring to the firm’s deals with Bulacansol and Solar Philippines Tarlac.

If higher net metering rates are implemented, the government, DUs or power generation firms will eventually have to shoulder the additional costs, Terry L. Ridon, convenor of a public policy think tank said.

“We’d like to see the math on the proposal for a more ‘equitable’ net metering system, because some entity will ultimately have to bear the cost difference between the current net metering arrangement and the proposal for a more equitable scheme,” he told BusinessWorld in an e-mail over the weekend.

For him, household solar technology prices must be competitive enough to let end users do without relying on the power grid for most of their electricity consumption.

As long as the prices for these types of solar technologies remain expensive, they will remain as lifestyle choices among Filipino households, rather than compelling economic options, according to Mr. Ridon.

For Center for Renewable Energy and Sustainable Technology (CREST), net metered solar PVs (photovoltaics) can offset electricity during peak hours or when DUs source power from peaking plants at a “premium rate.”

“Reducing demand from peaking plants will significantly reduce the generation cost [which makes up] roughly 50% of the electricity bill,” CREST President Riedo A. Panaligan told BusinessWorld in an e-mail over the weekend.

“A higher net metering compensation will encourage more qualified end users to install a solar PV rooftop and apply for a net metering program. Both net metering and non-metering customers will enjoy the benefit of lower generation costs due to reduced demand for peaking plants,” he added.

Mr. Panaligan explained that customers who set up their own solar PVs want to reduce their own power consumption, adding that any excess energy exported to the grid is incidental.

“Since the government [and] DUs treat net metering customers as power generators, then they must be compensated equitably. Solar PV rooftops offset electricity sourced from peaking plants, paid at a premium rate, and as such these should be the reference price for exported energy,” he said.

Department of Energy estimates showed that a total of 3,795 qualified end users have registered for the net metering program with a total rated capacity of 30 megawatts-peak, as of end-2020. — Angelica Y. Yang

500 years of fashion

YOUTUBE.COM/ CONTACTS & CONTINUITIES

A PANEL discussion on fashion emphasized the connections made by the colonial trading routes that connected the Philippines to the rest of the world.

“Contacts and Continuities: 500 Years of Asian-Iberian Encounters” is an international conference series organized by the CHAM–NOVA FCSH, (the Centro de Humanidades of the Faculdade de Ciencias Sociais e Humanas, of the Universidade Nova de Lisboa, Portugal), the National Quinticentennial Commitee, and hosted by the Ateneo de Manila University. A panel discussion — streamed on July 21 via YouTube — focused on fashion (the talks ran from June 21 to July 23, covering all sorts of topics, from language to literature, and the visual arts).

The various lectures and panels of “Contacts and Continuities: 500 Years of Asian-Iberian Encounters” can be seen at https://www.youtube.com/channel/UCtNy-Va7Elq3ixbp6uuxyBA.

LACE AND RELIQUARIES
Sandra Castro, an independent researcher and curator from New York, gave a talk titled “Hybridity and Identity in Philippine Colonial Whitework.” Here, she showed examples of whitework (defined as white needlework, usually decorative, on white fabric as a background), executed in the Philippines, and how it compared to similar examples from the rest of the world. Comparisons were made to muslin from India, which shared the same delicate, white, and translucent qualities as our native pina fabric.

According to her, whitework was formally introduced to the country in the 17th century through convent schools, and by the late 1800s, Manila had a booming industry in embroidered whitework, including that produced in the Asilo de San Vicente de Paul (an orphanage cum convent school; one alumna was the mother of Imelda Marcos).

She also shows examples of how Philippine techniques were used to copy European luxuries: Valenciennes lace — first done by hand then machine-made by twisting threads together — had a near copy in the Philippines where a textile was embroidered, and surrounding threads plucked out around the embroidery to show off the pattern.

Meanwhile, Dr. Florina Capistrano-Baker talked about the evolution of jewelry from before and after the period of colonization. She discussed the various found artifacts in the Philippines and surrounding Southeast Asia, executed in precious metals like gold and silver, and precious stones like jade. These evolved into the reliquarios (reliquaries) and other religious items worn later by wealthy colonized Filipinos.

TALKING TERNO
Author and acclaimed costume designer Gino Gonzales talked about the terno, and how it evolved from precolonial dress. He starts by defining the terno using online resources such as Google searches, illustrating that in Spanish, the word “terno” could either mean a suit, or a set of three things of the same kind (this foreshadows a later aspect).

Precolonial people once wore the baro (a heavily decorated top) and a tapis (a rectangular fabric worn as a skirt or apron), sometimes accompanied by a malong (a tube-shaped garment worn either on the top or the bottom). This evolved into the kamisa, a blouse which was often transparent. For women, a triangular fichu — now known as the panuelo — obscured the chest. The fichu is also present in European fashions of the 1700s. The panuelo was embroidered with local, Chinese, and Western motifs, and was emphasized in the whole outfit as it was the outermost and most visible garment. This whole set — the panuelo, the kamisa, and a skirt — came to be known as the traje de mestiza.

The outfits came to follow European fashions, albeit with a decade-long lag or so, due to the distance between lands. Empire-line clothing came to fashion in Europe by the 1790s, but became truly fashionable in the Philippines in the 1810s. With the opening of the Suez Canal in the 1860s, the timelines between fashions of East and West became more consistent. As an example, pagoda sleeve fashions of this period came to shape the sleeves of the traje de mestiza, a fashion which remained until the end of the century.

By the American colonization period beginning 1898, the Philippines saw Belle Epoque and Edwardian styles touch Philippine fashion with a Gibson Girl look, characterized by the long, narrow skirt, readily adopted by Filipinas as the serpentina. The 1920s, meanwhile, saw a change from the sleeve shape (flattening it to the butterfly sleeves to which we’ve become accustomed), and joined together the panuelo and the kamisa.  The 1930s joined all three elements together — the rule of threes in the original definition of “terno.”

The aftermath of the Second World War saw younger women discarding the panuelo, and the 1950s truly united the look with the elimination of the previously transparent sleeves, unifying the look by matching skirt, sleeves, and bodice.

“A dress became a terno merely by the addition of matching butterfly sleeves,” said Mr. Gonzales.

“Beyond the wealth of materials that were brought in by the Galleons, it was the influence of new fashion ideas in the West which stirred the constant evolution of the Philippine dress,” he said. — J.L. Garcia

Japan’s GT Venture to invest $1B in Pangasinan aquaculture

GT-VENTURE.COM

GLOBAL TRADE (GT) Venture Co. Ltd., an arm of the Japanese government-owned Tokushima Auction Market (TAM), is investing $1 billion in Pangasinan for a complete value-chain aquaculture facility.

In a statement Friday, the provincial government said Pangasinan Governor Amado I. Espino III and TAM President Yoshihisa Arai signed the memorandum of understanding (MoU) on July 29 for what will be called the Pangasinan Fish Farming (PFF) project.

The project will involve setting up floating fish cages, an operations complex with offices and dormitories, a feed warehouse, processing plants, cold storage, solid and wastewater treatment facility, and medical center.

“The PFF project aims to grow and harvest a variety of fishes in Pangasinan waters where over 1,000 local fisherfolk will be trained and employed,” according to the provincial government.

“We hope that the signing of the MoU is a sign of our long and productive partnership with Tokushima Auction Market and the country of Japan that will greatly benefit the people of Pangasinan,” Mr. Espino said.

GT Venture’s agricultural products include processed fruit and vegetables, seafood, and livestock.   

Its Philippine subsidiary, GTVP Trading (Global Trade Venture Philippines Trading), has offices in Mandaluyong, Metro Manila and Digos City, Davao del Sur. — Marifi S. Jara

SEC flags Elite Alliance entity’s unlicensed investment scheme

THE Securities and Exchange Commission (SEC) has released an advisory against Elite Alliance Vera Trade System OPC for soliciting investments from the public without the required license from the regulator.

Led by a certain Eins Angelo Ruiz Valencia, the entity also goes by EliteAllianceVera Computer Trading, Elite Alliance Vera Trade Ltd., Elite Aliance Vera Trade International, and EAV Trade.

The SEC said Elite Alliance Vera Trade System OPC was registered as a one-person corporation under Company Registration No. 2021070020495-22 on July 22 this year.

However, it is not authorized to solicit investments from the public since it does not have the necessary license as required under the Securities Regulation Code (SRC).

The Valencia-led entity is said to be offering a program that promises 100% returns every 15 days for as low as P500. It also offers a 50% direct referral bonus and a one percent unilevel bonus.

The SEC also said the scheme offered by Elite Alliance Vera Trade System “shows indication of a possible ‘Ponzi Scheme,’” wherein the investments of new investors are used to pay for the “fake profits” of those who invested in the program first.

“The commission will not issue a permit to offer and sell securities to the public to persons or entities that are engaged in this business or scheme,” the corporate regulator said.

BusinessWorld reached out to Mr. Valencia for comment via Facebook Messenger, but he has yet to respond as of writing.

The SEC is warning that those involved as salesmen, brokers, or agents in the scheme of Elite Alliance Vera Trade or for Mr. Valencia may be prosecuted or held criminally liable under the SRC. A penalty fee worth P5 million at most may be imposed and/or they may face 21 years if imprisonment.

“Further, the names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes be correspondingly assessed,” the SEC said.

The investing public is advised to not invest or to stop investing in the scheme offered by the entity. — Keren Concepcion G. Valmonte

Hatch stuff: Simple but sprightly

Nimble and nice: The Suzuki Swift punches above its price point with peppy yet frugal performance. — PHOTO BY MANNY N. DE LOS REYES

Rediscovering a love for hatchbacks with the Suzuki Swift

WHILE SMALL crossovers have been stealing the limelight with one new model launch after another, it’s easy to overlook the genre that shares a crossover’s versatility, while retaining a sports car-like nimbleness — the hatchback.

But while there are roughly a dozen hatchbacks on the market (in S and XS sizes), few have adhered to the fun-to-drive-yet-affordable formula as the Suzuki Swift has. While its contemporaries — the Honda Jazz (recently replaced by the City Hatchback), and the Toyota Yaris — now breach the million-peso mark, a brand-new Swift starts at a substantially lower P755,000 for the manual and P819,000 for the automatic.

Depending on the variant, the Swift is now priced lower by at least P154,000 and as much as P296,000 compared to its direct rivals (although the Swift uses a 1.2-liter engine for both its MT and AT versions, while its competitors have 1.3- and 1.5-liter power plants).

CHANNELING THE MINI COOPER
The Swift sits low to the ground — squat and wide — exactly the same stance as a Mini Cooper. And like the Mini, it sports large, expressive headlights that run counter to the now-common slim headlights. The big lights bracket a gaping blacked-out grille that gives the Swift a sporty, aggressive look.

The side view is devoid of extraneous curves and bulges. The only visual highlights are the high beltline, the subtle curvature that runs along the fenders and doors that give the Swift its wide, muscular look, and the hidden rear door handle on the novel C-pillar with its wraparound blacked-out treatment that creates a floating roof effect.

The rear view is low, squat, and wide, with large LED taillights and a subtle roof-edge spoiler. It’s the look of a proper hot hatch. The Swift wears 185/55R16 rubber; they may seem narrow but they don’t look undersized for the car. More importantly, they’re perfect for the car’s power and weight. Any wider and they’ll affect the car’s nimbleness.

SPRIGHTLY PERFORMANCE, FRUGAL CONSUMPTION
The Swift’s 1.2-liter four-cylinder engine may develop only 82hp and 113Nm, but given the car’s lithe 860-kg curb weight, the Swift still manages to deliver energetic performance, especially if you’re willing to rev the smooth and rev-happy engine to 4,000rpm and higher. To put this in perspective, a base Mini Cooper’s power-to-weight ratio is nine kilos per horsepower; in contrast, the Swift’s is 10.4 kilos per horse — not too shabby.

Fuel economy? It delivered an effortless 8-9kpl in the city, and should easily achieve 12-15kpl on the highway.

LITERALLY SWIFT MOVES
The Swift is a ball to drive — whether you’re in gridlock or cornering fast on your favorite backroad. I got to test the automatic (CVT) version; I expected the CVT to make the car feel sluggish, but it proved a willing accomplice, eagerly shifting to lower gears, allowing the engine to spin higher up the rev range. The stickshift version — or a paddle-shift for the automatic (which sadly isn’t available) — should be an even greater joy.

The ride/handling balance is early skewed for comfort. Nonetheless, there is minimal body roll when cornering. The electric power steering is precise and gives good feedback. Braking is confidence-inspiring and is easy to modulate.

Credit also goes to Suzuki’s advanced HEARTECT high-rigidity body construction that improves not just the car’s crashworthiness, but also its dynamic performance, riding comfort, and fuel economy. HEARTECT employs lightweight yet ultra-high-tensile steel and combines that with a continuous and smoothly curving shape with fewer joints for a rigid, safe, and responsive chassis.

SPARTAN YET FUNCTIONAL INTERIOR
Inside, you’ll find a spacious yet spartan all-black interior. You won’t find any leather on the seats, steering wheel, shift knob, or door panels. There is no chrome door trim. All you get is black plastic on the dash, console, and door panels and black fabric on the seats and armrests. At least the plastics are nicely textured and sculpted while the black fabric feels plush on the thickly padded and very comfortable seats. The front seats’ prominent side bolsters deserve special mention as they give superb support. They look great, too — as if they came straight from a sports car.

Other nice interior elements are the meaty, thick three-spoke steering wheel, with its racy flat-bottom design, and the ’70s-era twin circular instrument cluster.

You won’t miss those complicated electronic AC switches with the Swift’s no-brainer three AC knobs (fan speed, thermostat, and air direction). The Swift has a seven-inch USB/Bluetooth touchscreen infotainment/navigation system with four speakers plus a USB port and a 12V socket up front. There are twin cupholders up front and a single one for the rear. There are also bottle holders on all four doors (plus spacious door pockets on the front doors).

Safety and security features include dual front air bags, four three-point ELR seat belts (and a two-point lapbelt for the middle rear-seat passenger), two Isofix anchorages, two additional non-Isofix child seat anchorages, ABS with EBD, brake assist, rear parking sensors, an anti-theft system, and a cabin air filter. There are also three adjustable headrests for the 60/40 split-folding back seat.

The latest Swift even boasts modern pedestrian-protection systems like impact-absorbing front bumper, hood, and even hood hinges and wiper system.

All things considered, the Swift is an exceptionally accomplished small car. It does everything it’s designed to do very well and achieves that despite an eminently affordable price tag. It doesn’t have an overly long features list compared to its rivals, but its compelling (and much lower) price and its refined and well-developed driving dynamics more than make up for it.

Films of fashion

House Of Gucci — IMDB.COM

Fashion, in the form of costumes, is an important aspect of films – think of how much the clothes on films like Sabrina and The Grand Budapest Hotel helped set the mood or the personalities of characters. But while fashion is part of film, there are also, occasionally, films about fashion. Sometimes they are fiction like The Devil Wear Prada, biopics like Coco Before Chanel, or documentaries like Halston and The September Issue. And some are created by the fashion houses themselves to celebrate a special occasion.

In the latter category is a series of films created to celebrate 100 years of Chanel No. 5 perfume.

To mark the occasion, Chanel High Jewelry crafted a jewelry collection reflecting the aspects of the perfume, from its bottle, stopper, to its scent. The collection is crowned by the 55.55 necklace, which has as its centerpiece a 55.55-carat emerald-cut D Flawless Type IIa diamond. Other pieces include a ring of diamond Jasmine blossoms (paying homage to a backbone of the perfume’s scent) and a magnificent Golden Sillage brooch, in yellow gold and diamonds, reflecting the spread of No. 5 as it is sprayed.

While the collection was formally unveiled in March, Chanel released a series of films detailing the collections’ craftsmanship that can be seen at Chanel’s channel on YouTube.

Then there is the biopic, one of which, The House of Gucci, has inspired controversy even before its release with a criticism that is very in keeping with the image of the fashion world.

MGM released the trailer of the society and crime drama House of Gucci on July 30. The film stars Lady Gaga as Patrizia Reggiani, the socialite who had married into the prestigious fashion house through one of its scions, Maurizio, a grandson of Gucci founder Guccio Gucci. The couple divorced in 1991, and Maurizio was shot by a hitman in 1995. Ms. Reggiani was sentenced to 29 years in prison for ordering her husband’s murder.

House of Gucci is set to be released by November this year.

The Gucci family has had some troubles with the casting. According to an article from The Guardian, Patrizia Gucci (a cousin of the late Maurizio) told the AP, “My grandfather was a very handsome man, like all the Guccis, and very tall, blue eyes and very elegant. He is being played by Al Pacino, who is not very tall already, and this photo shows him as fat, short, with sideburns, really ugly. Shameful, because he doesn’t resemble him at all.”  JLG