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adidas classic reimagined for the new generation

The adidas Forum, which made its debut in 1984 as a basketball shoe, is brought back in 2021 reimagined.

ADIDAS Originals recently released in the country another one of its classics, tweaked to make it more modern for the new generation.

The adidas Forum, which made its debut in 1984 as a basketball shoe, is brought back in 2021 reimagined, anchored on the push for “inclusiveness” and “openness to new ideas and concepts.”

The new Forum, part of the brand’s Fall/Winter 2021 collection, comes in both low and mid-top models and retains some of the original qualities of the silhouette but infused with features that give a nod to the present day to cater to a generation of sneakerheads which has an open attitude and love to express themselves.

It is a testament to the timelessness of the Forum, adidas said, going beyond its basketball beginnings to becoming a standout line in streetwear.

The new Forum sneaker line has three distinct new looks, namely, Forum Exhibit Low, Forum Exhibit Mid, and the iconic Forum Low.

The Forum Exhibit Low features all the sneaker’s classic elements wrapped into a low-profile look, matched with a removable strap, a luxe white leather upper with accents and details, as well as a court-ready rubber outsole. It comes in a variety of colorways.

Meanwhile, the Forum Exhibit Mid comprises a similar approach, this time in a mid-cut silhouette.

The iconic Forum Low rounds out the collection, elevating the sneaker’s classic look with a basketball-inspired white, navy, red, and yellow colorway.

“The Forum is the unsung hero of the adidas line. There was something about its style back in the day that made it transition to what the sneaker culture is today,” said JD Cortez, brand communications and sports marketing manager at adidas Philippines, at the Forum’s virtual launch on July 22.

“[Now] it’s a vehicle for everyone who wants to express themselves,” he added.

The new line of the adidas Forum is available at adidas.ph and select retail locations. The Forum Low sells for P4,800 while the Forum Mid shoes are priced at P5,000. — Michael Angelo S. Murillo

Rates of T-bills, bonds to move sideways on Delta variant fears

BW FILE PHOTO

RATES OF government securities on offer this week may move sideways after the government tightened restrictions anew to prevent the further spread of the more infectious Delta variant of the coronavirus disease 2019 (COVID-19).

The Bureau of the Treasury (BTr) is looking 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 seven-year Treasury bonds (T-bonds) with a remaining life of six years and eight months.

Two bond traders said the rates of the short-term bills will likely move sideways, while the seven-year T-bond’s yield may range from 3.625% to 3.675%. Meanwhile, a third trader gave a wider forecast range of 3.55-3.75% for the bonds on offer on Tuesday.

All three traders said the market is pricing in the possibility of tighter lockdowns as the Delta variant spreads in the country.

“All eyes are on the Delta variant and how the government will react to this and how this will affect the economy,” the third trader said via Viber.

The government on Friday placed Metro Manila and the provinces of Ilocos Norte, Ilocos Sur, Davao de Oro, and Davao del Norte under general community quarantine “with heightened restrictions” until the end of the month to help curb the spread of COVID-19.

The Health department on Saturday reported 17 new cases of the Delta variant, with 12 of which said to be local cases and one a returning overseas Filipino. The other four cases are still being verified. Three of these newly reported Delta variant cases are said to be active, while 14 have recovered.

The country now has a total of 64 Delta variant cases.

The government also reported 6,216 new COVID-19 cases on Saturday, which bought active cases to 54,401.

The traders said yield movements could also be influenced by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno’s remarks that the central bank will keep benchmark rates low over the near term to help the economy recover faster. The BSP’s policy-setting Monetary Board kept rates at record lows in its June meeting.

Mr. Diokno reiterated last week that the BSP’s current policy settings remain appropriate as it sees inflation staying within the annual 2-4% target.

Headline inflation slowed to a six-month low of 4.1% in June on easing transport prices and the slower increase in the food price index. However, the pace fell beyond the BSP’s annual target for the sixth month in a row.

July inflation data will be released on Aug. 5.

The BTr fully awarded its offer of P15 billion in T-bills last week even as rates inched up across the board. Total tenders reached P45.74 billion.

Broken down, it borrowed the programmed P5 billion via the 91-day papers at an average rate of 1.082%, up from the 1.068% quoted on July 12.

The Treasury also raised P5 billion as planned from the 182-day T-bills. The six-month papers fetched an average rate of 1.401%, higher than the 1.384% seen the week prior.

Lastly, the BTr made a full P5-billion award of the 364-day securities at an average yield of 1.629%, rising from the 1.593% quoted in the previous auction.

Meanwhile, the last time the BTr offered the reissued seven-year bonds to be auctioned off on Tuesday was on June 8, raising P35 billion as planned from P83.684 billion in bids.

The T-bonds yielded an average rate of 3.685%, slightly higher than the 3.625% coupon fetched for the series.

At the secondary market on Friday, the rates of the 91-, 182- and 364-day T-bills stood at 1.156%, 1.414% and 1.637%, respectively, while the seven-year tenor was quoted at 3.482%, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

The Treasury is looking to raise P235 billion from the local market this month: P60 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

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 gross domestic product. — B.M. Laforga

GCash expands money transfer service to non-app users

GCASH, the mobile wallet arm of Globe Telecom, Inc., said on Sunday that its remittance service is now available to non-app users through its 2,000 partners nationwide.

The payment solutions provider said in an e-mailed statement that its new feature, the GCash Padala “allows Filipinos without any e-wallet account to receive money in real time anywhere in the Philippines via the GCash app.”

The new feature also allows users to “send to non-GCash users and only requiring receivers to show one valid ID to claim transactions through its 2,000 partners nationwide,” it added.

Among the partner outlets of GCash are Posible, Go VIP, Tambunting, Panalo Express centers, and some sari-sari (mom and pop) stores.

GCash said sari-sari stores may earn up to P10,000 a month for participating as outlets. It said it has been offering free cash-in services to its authorized agents nationwide for amounts of P8,000 and more.

“Service fees for GCash remittances go as low as 1% for a minimum remittance amount of P500,” GCash noted, adding that its service fees are lower than the fees charged by banks and other money-transfer outlets.

Citing a 2019 Financial Inclusion Survey by the Bangko Sentral ng Pilipinas, GCash said around 27 million Filipinos are sending domestic remittances.

More than one million of whom are using GCash for these transactions, GCash also said, citing its own survey.

“The fintech industry has enjoyed exponential growth over the years, especially during the height of the COVID-19 (coronavirus disease 2019) pandemic in 2020, as more customers preferred to pay for products and services made online — and sometimes even offline — through their mobile wallets,” GCash said.

“GCash wants to capitalize on this momentum. It plans to further sustain consumer engagements with its products by leveraging on celebrity influence through video stunts, maximizing digital advertising, trade merchandise and caravan visits,” it added.

GCash is targeting to reach more than P2 trillion in transactions this year.

Last year, the GCash app processed more than P1 trillion in transactions.

GCash saw 38 million registered users, over one million merchants and social sellers using the mobile wallet, and more than six million daily transactions. — Arjay L. Balinbin

MG 5 1.5L CVT Alpha: Schooling the sedan segment

The MG 5 subcompact sedan blends ‘Audi minimalism with Jaguar sensuousness.’ — PHOTO BY MANNY N. DE LOS REYES

Why the MG 5 is a solid, best-in-class contender

LAUNCHED back in September 2019, it’s hard to believe that the MG 5 is already almost two years old. It still looks fresh and head-turning as the smaller of two MG sedans that the venerable (now Chinese-owned) British brand has brought to the Philippines. The bigger sibling, in case you’re wondering, is the MG 6 fastback/liftback turbocharged five-door compact sedan.

The MG 5 falls under the highly competitive subcompact class, currently dominated by the Toyota Vios and populated by other strong players like the Mitsubishi Mirage, Honda City, Mazda2, Suzuki Ciaz, Nissan Almera, Hyundai Accent and Reina, Kia Rio and Soluto, and the Volkswagen Santana.

But the MG 5 has more than what it takes to hold off the competition. Here’s why:

While the Japanese car brands have steadfastly adhered to their native country’s design languages, the Chinese (and Korean) brands have gone all-out European. So if you’re a fan of European design themes, then you’ll fall for the MG 5, which blends an Audi’s minimalism with a Jaguar’s sensuousness.

The front has serious-looking headlamps and a boldly large grille — a description that applies to pretty much any luxury car maker from Germany — while the side is devoid of extraneous curves and bulges but only has one continuous and gracefully curving character line that stretches from the tip of the headlamps to the tip of the taillights. Very tasteful and elegant.

LED headlamps and taillamps add even more upmarket distinctiveness — as do handsome 16-inch alloy wheels (for the Style and Alpha variants).

The MG 5 subcompact sedan punches above its weight with its class-leading dimensions, endowing it with cabin space — especially legroom — that’s almost comparable to one-size-bigger compact sedans.

Much of the credit goes to its generous 2,680mm wheelbase — less than an inch shorter than the one-class-higher Honda Civic’s. The low center hump on the floor of the MG 5’s rear seats helps a lot, too.

A legitimate case can be made for the MG 5 being the best-equipped model in the subcompact class. In fact, it gives some bigger compact cars a run for their money. Key features include a user-friendly 10-inch touchscreen infotainment system that runs both Apple CarPlay and Android Auto; 360-degree vehicle view, which gives drivers a bird’s-eye view of their car, making it easier to maneuver around tight spaces; a power driver’s seat; and auto on/off headlamps.

More safety and convenience features include dual air bags, four-wheel disc brakes, hill start assist, auto brake hold, a push start/stop button, cruise control, electronic climate control, a tire pressure monitoring system, a reversing camera, and a sunroof.

Under the hood of the MG 5 is a responsive yet smooth and fuel-efficient 1.5-liter, DOHC 16V, naturally aspirated engine that produces 114ps and a best-in-class torque output of 150Nm. The MG 5 is available with either a five-speed manual transmission or my test unit’s CVT gearbox with manual mode. The CVT works smoothly enough, but it still has a bit of lag, making me wish for a conventional automatic. A CVT, however, delivers better fuel economy than an old-school automatic. The car averaged an excellent 9kpl in predominantly city driving.

It’s also priced to sell. The MG 5 starts at an unbelievably low P658,888 for the entry-level Core M/T. The other three variants all have CVTs, starting with the Core at P718,888, the Style at P848,888, topping out with the flagship Alpha at P938,888. While the Core obviously offers the biggest bang for the buck, springing for the Style or Alpha lets you enjoy more toys (and that bigger size) than their equivalent rivals from other brands.

The car’s already high value proposition is further supplemented by MG Philippines’ premium after-sales offers and services. These include a five-year/100,000km warranty and one-year free periodic maintenance service (PMS). MG owners can also download the My MG mobile app, which allows them to easily schedule vehicle servicing appointments through their smartphones. They can also use the app to book a visit from a Mobile Garage service caravan that provides MG owners with vehicle home service for major technical issues. MG Hero Services, on the other hand, provide 24/7 roadside support through the MG Philippines hotline (02 5328-4664).

All things considered, the MG 5 is one hugely compelling sedan. If the looks don’t hook you, the price, the performance, or the wealth of features (or all of the above) will.

Social enterprise showcases products by PWDs

Mini Dried Flower Bouquet — LAZADA.COM.PH
Mini Dried Flower Bouquet — LAZADA.COM.PH

AN ARTIST with down syndrome, Jana Gan, paints colorful landscapes and portraits which are available online through Jana atbp. Meanwhile, Special Hands by Nina features painted abaca and eco bags, and stickers sets featuring images by Nina Bantoto, an artist with autism. Deaf arts and crafts maker Chindee Cruz’s business, CLCreates, features personalized products for special celebrations such as birthday cakes, giveaway goods, and gifts.

They are three of the 15 young artists and entrepreneurs whose artworks and products are available at the newly established social enterprise for Persons with Disabilities (PWDs) called Precious Works of Differently Abled Enterprise (PWDe).

PWDe — pronounced as “puede,” the Filipino work for “can do” —  is a nonprofit social enterprise that aims to provide a space where PWDs can provide their goods and services to the public.

During the enterprise’s online launch on July 23 via Zoom and livestreamed through Facebook, Arlene Tan-Bantoto, a founding member of PWDe and mother to an artistic daughter with autism, noted the importance of inclusivity and opportunities among PWDs.

“We believe that PWDs must be given equal rights and opportunities to make the contributions to society,” said Ms. Tan-Bantoto.

She and three other committed individuals formed PWDe. The other founders are Archie David, who established Independent Living and Learning Center (ILLC), a school for special-needs children; Princess Schuck, an actress and marketing professional who has a passion for supporting PWDs; and Elyse Go, co-founder of Hand and Heart, a social enterprise that facilitates jobs and livelihoods for PWDs.

“We hope this innovative project will help our PWD friends with a means of living amidst the pandemic,” said Archie David, PWDe co-founder and executive director of ILLC.

THE ENTREPRENEURS
In line with National Disability Prevention and Rehabilitation Week, which was observed from July 17 to 23, the newly established enterprise was launched as an online bazaar on Lazada on July 21.

“We’re very excited to continuously support this community. What we have done this week is only the start… Hopefully the community grows because we are very ready to help them out. Let’s show them how them how talented the community can be with the different products they sell,” said Yshana Wong, Senior Associate for Business Development Services at Lazada.

The online bazaar features products made and services to be provided by deaf people, people with Autism and Down syndrome, physically disabled people, and other PWDs.

The online bazaar includes food products (French macarons, no-bake cheesecakes, Korean samgyupsal sets, buko pandan, macaroni); craft and gift items (paintings, customized flower and basket arrangements, table runners, saori weaves, drawstring pouches, and T-shirts); and services (encoding, cleaning, sign language classes, graphic design, and photography).

“Through an online platform, we hope to create a marketplace where buyers and can meet and do business together,” Mr. David said.

“PWDe is envisioned to initiate programs such as this online bazaar, [offering] equitable opportunities for PWD entrepreneurs [who] need to do business with potential clients and customers. Initially we have invited a select group of PWD entrepreneurs to join us… but we hope that with everyone’s support, we will be able to engage more sellers, even those from different parts of the Philippines who are not necessarily affiliated with any of our organizations,” he added.

PWDe is supported by JCI Manilena, Lazada Philippines, and the National Commission on Disability Affairs.

The products and services are available on the bazaar’s dedicated page on the Lazada website or app, Precious Works of Differently Abled Enterprise (lazada.com.ph). — Michelle Anne P. Soliman

More banking reforms sought to strengthen pandemic-hit sector

By Luz Wendy T. Noble, Reporter

BANKING INDUSTRY players are batting for the passage of priority measures and improved implementation of existing laws to help a pandemic-hit sector regain its strength and spur economic activity.

Even before the Duterte administration’s term, the Philippine banking industry has undergone many years of reforms to build its buffers against risks in the aftermath of the Asian Financial Crisis and the Global Financial Crisis. Various laws meant to help boost financing for agriculture and small businesses — both key sectors of the economy — were also passed.

These reforms were recently put to the test as the coronavirus pandemic all but halted economic activity, leaving many big and small businesses and consumers strapped for cash.

“The regulatory requirements in the past years coupled with favorable banking conditions were such that at the onset of the pandemic, the banking system had significant capital and liquidity buffers built up to allow it to face the storm head on,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail.

With the current administration’s term ending in less than a year, the banking industry hopes for a more inclusive implementation of the Financial Institutions Strategic Transfer (FIST) Law to help smaller lenders, as well as the enactment of reforms in rural banking and amendments to the Agri-Agra and bank secrecy laws.

Republic Act 11523 or the FIST Law signed in February allows banks to offload loans and real and other properties acquired (ROPA) considered as nonperforming until Dec. 31, 2022 to FIST corporations, letting them clean up their balance sheets after borrowers were unable to pay their obligations due to the pandemic’s economic impact.

Bankers Association of the Philippines President Jose Arnulfo A. Veloso said the measure will help lending rebound as banks have been reluctant to provide credit due to the crisis. Outstanding loans by big banks declined for the six straight month in June by 4.5% despite liquidity-infusing measures from the central bank.

“This will allow banks to maintain sufficient liquidity that will facilitate continuous supply of credit to businesses and individuals stimulating growth and revitalizing the economy in the long run,” Mr. Veloso said in an e-mail.

However, the measure may not help smaller banks much as its scope is limited, the Rural Bankers Association of the Philippines (RBAP) said.

“This new law does not include clear provisions for unsecured credit exposures, which majority of rural banks have in lending to asset-less small farmers and micro-enterprises,” RBAP said in an e-mail.

This could be remedied by improving the implementing rules and regulations of the law to mandate FIST corporations to purchase assets from rural lenders as well, Rural Bank Research and Development Foundation, Inc. Chairman Elizabeth C. Timbol said.

“A certain percentage of their portfolio should include nonperforming assets and nonperforming loans from the rural banks. Otherwise, no FIST corporations will look into countryside assets but rather center more on the universal and commercial banks, totally disregarding the rural banks in the process,” Ms. Timbol, a former RBAP president, said in an e-mail.

AGRI-AGRA, RURAL BANKING REFORMS
Smaller lenders are also hoping for the enactment of amendments to Republic Act 10000 or the Agri-Agra Reform Credit Act of 2009 before the Duterte administration’s term ends. The measure is part of the priority bills of the Legislative-Executive Development Advisory Council targeted to be passed by June, but it is still pending in the Senate.

“The amendments to the Agri-Agra Law are of paramount importance to us. We support a bill in the Senate which will overhaul the law and merge the allocation with no distinction, aimed at improving banks’ compliance with their mandate to set aside 25% of their loanable funds to farmers and fisherfolk; and widen the extent of what the banks can lend out since the economy is now very much different,” Chamber of Thrift Banks Executive Director Suzanne I. Felix said in an e-mail.

“Amendments to the Agri-Agra Law [will] allow banks other means to provide financing assistance to the agriculture sector and…to support more realistic compliance,” Development Bank of the Philippines (DBP) President and Chief Executive Officer Emmanuel G. Herbosa added.

The Agri-Agra Law mandates lenders to allocate 25% of their credit line to the agriculture (15%) and the agrarian reform sectors (10%). However, banks have preferred to incur penalties rather than lend to these sectors, which they consider to be risky. The Bangko Sentral ng Pilipinas (BSP) estimates that banks have paid around P2 billion in penalties yearly since 2011 for noncompliance with the law.

BSP data showed banks’ agri-agra loans rose 10% to P765.92 billion in the first quarter from P696.35 billion a year earlier. Still, this was just 10.59% of banks’ total loanable funds in the period — well below the 25% quota.

The central bank has already imposed an interim measure allowing more activities to be counted as part of the required lending under the law as they await the passage of the amendments. This has already helped improve compliance, the RBAP noted.

“However, even a single measure to capacitate further the compliant institutions, particularly rural banks with their long-standing performance of having the highest compliance rate is notably missing,” the RBAP said.

“If the situation is unchanged and banks remain risk-averse as the economy remains sluggish, less and less credit exposures will go to the agricultural sector which would lead to lower agricultural productivity,” it added.

The rural banking community is likewise hoping for the passage of the proposed Rural Banking Act of 2021. House Bill 4256, which will grant tax exemptions to rural banks, was approved at the committee level in May.

“The Rural Banking Act of 2021 would broaden the rural banks essential financial services to the most marginalized sectors of society thus widening the inclusion of rural communities into the financial sphere,” Ms. Timbol said.

The chair of the House Committee on Banks and Financial Intermediaries said they consider these measures as priorities as they will help the banking sector become more resilient.

“What will really be very beneficial to the banking industry and make them resilient is Agri-Agra Law amendments. It will ease the burden on the banking industry by way of expanding the scope of compliance and really address the root problem of why the banks that really have the resources to lend are unable to comply,” Quirino Rep. and committee chairman Junie E. Cua said in a phone interview.

“We also need to strengthen the rural banking system because they help out smaller entities. We want to provide more funds to the countryside through the Rural Banking Act and through the Cooperative Bank charter amendments, and the amendment of the Agri-Agra,” Mr. Cua added.

BANK SECRECY
A bill seeking to amend the Bank Secrecy Law is up for second reading approval at the House. It is also considered a priority measure for the Senate, according to Senator Grace Poe-Llamanzares.

“There are a lot of pending bills on the Bank Secrecy Law, which need to be deliberated on or passed as the current situation makes it difficult for everyone, especially the ordinary Filipinos, who require the movement of money in and out of the country. The banking sector is very much affected as its core business is deposits, remittances, and settlements,” DBP’s Mr. Herbosa noted.

Mr. Herbosa also hopes deliberations on the Comprehensive Tax Reform Package (CTRP), as well as the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) bill, will also be prioritized by Congress.

He said the CTRP will help complete the implementation of the packages of the Tax Reform for Acceleration and Inclusion or TRAIN Law, while the GUIDE bill “will strengthen the capacity of the GFIs to provide the needed assistance to MSMEs (micro, small and medium enterprises), especially the strategically important companies.”

Ms. Poe-Llamanzares added that the Senate is also working on amendments to the Philippine Deposit Insurance Corp. and Philippine Veterans Bank’s charters, as well as the Financial Consumer Protection Act, which the BSP has tagged as a priority measure.

Security Bank’s Mr. Roces said ongoing reforms in the banking sector will help lenders adapt and thrive amid the changing operating environment caused by the pandemic, even beyond the current administration’s term.

“There likely will be a larger engagement by the industry in the digital space, with the use of digital platforms fast-tracked by the community quarantines. There could also be a focus on differentiated client service propositions,” he said.

SEC flags Em-power8 for unlicensed scheme

THE Securities and Exchange Commission (SEC) is warning the investing public about an entity that offers an unlicensed scheme promising an 80% profit of investment within 15 days.

The commission issued an advisory against Em-power8 Beauty and Wellness Trading, which is said to be headed by a certain Betty F. Quilling.

Investors may also earn a 10% commission through direct referrals and a one percent commission via indirect referrals “down to the sixth level.”

Em-power8 Beauty and Wellness Trading also guarantees a weekly 40% payout, which may only be withdrawn on the 15th day.

BusinessWorld sought comment from Ms. Quilling via Facebook Messenger, but she has yet to respond as of writing. Meanwhile, its website no longer works.

Ms. Quilling’s Facebook profile dons a copy of its Certificate of Business Name Registration with the Department of Trade and Industry (DTI), with Business Name No. 3013099 under her name.

Upon checking with the DTI’s business name search online, Em-power8 Beauty and Wellness Trading comes up as a DTI-registered company.

However, the SEC issued an advisory against the entity as it does not have the necessary licenses to collect investments.

“As the above-described schemes involved the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered and that the concerned corporation and/or its agents have the appropriate registration and/or license to sell such securities to the public pursuant to Section 8 of the SRC,” the SEC said in its advisory.

Em-power8 Beauty and Wellness Trading is not registered with the commission as a corporation or as a partnership, and it also does not have registration and/or license from the commission to solicit investments from the public.

The SEC is advising the public not to invest or to stop investing in the scheme offered by persons on behalf of the entity, as well as to exercise caution in dealing with individuals acting for Em-power8 Beauty and Wellness Trading.

It also said those who act as salesmen, brokers, dealers, or those who act on behalf of Em-power8 Beauty and Wellness Trading may be prosecuted and held criminally liable under the SRC. They may face a maximum penalty fee of P5 million and/or face 21 years behind bars. — Keren Concepcion G. Valmonte

Agriculture output growth seen flat over rest of term

By Revin Mikhael D. Ochave, Reporter

THE GROWTH of the agriculture sector is expected to be flat to lower over the remainder of President Rodrigo R. Duterte’s term, according to industry groups and experts.

Mr. Duterte will deliver his sixth and final State of the Nation Address on July 26 and is due to end his term in June 2022.

Calixto V. Chikiamco, Foundation for Economic Freedom president, estimated that “for 2021, (agriculture output) might be flat or even negative, depending on further disruptions caused by the pandemic lockdowns, control of the spread of African Swine Fever (ASF) and adverse weather. In the first quarter, agricultural production dropped 3.3%, so positive growth for the year would be optimistic,” Mr. Chikiamco said via mobile phone.

However, Mr. Chikiamco said Mr. Duterte should be credited with the signing of Republic Act No. 11203 or the Rice Tariffication Law that removed quantitative restrictions on rice imports.

“It is significant because the law caused rice prices to stabilize and raised billions in revenue from tariffication that went into a Rice Competitiveness Enhancement Fund.  Unlike the period before liberalization, rice price inflation is no longer a major factor in consumer price increases,” Mr. Chikiamco said.

“Secretary (William D.) Dar has steered the Department of Agriculture (DA) correctly in addressing the structural problems of the agriculture sector and pursuing an agribusiness modernization strategy. However, he lacks the time and the agricultural budget to implement his strategy,” he added.  

Mr. Dar said in a mobile phone message that the government posted record production of 19.44 million metric tons of palay — or unmilled rice — in 2020, increasing rice self-sufficiency to 90% and lowering rice prices. It also achieved higher production for other crops such as corn and coffee.  

Mr. Dar added that the DA can do more during Mr. Duterte’s last months but urged the government to increase its budgetary support for agriculture.  

“(The DA) has P80-billion budget in 2021. We submitted to the Department of Budget and Management (DBM) a budget of P250 billion for 2022. The government must show the way in increasing its budgetary support for agriculture as this will encourage the private sector to come in big and invest in the sector,” Mr. Dar said.  

“The use of technology and innovation must be a way of life in the sector to have higher productivity and farmer incomes,” Mr. Dar said.

Raul Q. Montemayor, Federation of Free Farmers national manager, said in a mobile phone message that the group is not expecting much heading to Mr. Duterte’s final months as president. 

Mr. Montemayor said the Duterte administration should focus its remaining efforts on improving the income and welfare of farmers and improving the efficiency of the food system and value chain.

“Mr. Duterte has not really laid down clear policies and directions for the agricultural sector from the very start.  His agricultural policies are determined mainly by the economic managers, with a bias towards imports and inflation control at the expense of farmers,” Mr. Montemayor said.

Mr. Montemayor added that the government cannot consider the Rice Tariffication Law and Republic Act No. 11524 or the Coconut Farmers and Industry Trust Fund Act as accomplishments.

“Both laws were enacted despite opposition and criticism from farmer groups. The laws are only accomplishments for them and not for the agriculture sector since they rammed it through over the objections of farmers,” Mr. Montemayor said.

Rosendo O. So, Samahang Industriya ng Agrikultura chairman, said the group is also not expecting much in the final year of the administration, adding that retail prices of agricultural commodities are higher compared to the previous administration.

“Per Philippine Statistics Authority (PSA) record, regular-milled rice was P34 per kilogram (/kg) in 2015, now it is P38/kg. Pork was P190/kg and chicken was P120/kg, in 2015. Now, it is P330/kg and P160/kg, respectively,” Mr. So said in a statement over the weekend.

In a mobile phone message, Tugon Kabuhayan convener Asis G. Perez said he backs the creation of a fisheries department.

“We should pursue the creation of Department of Fisheries and Aquatic Resources as a long-term structural foundation of proper management, conservation protection, and sustainable utilization of the country’s resources,” Mr. Perez said.

Mr. Perez, also a former Bureau of Fisheries and Aquatic Resources (BFAR) national director, said the group is “cautiously optimistic” moving forward since the DA is working with the fisheries industry in increasing production amid the loss of access to fishing grounds in the West Philippine Sea.

“We also need to increase BFAR’s capabilities by adding more people and vessels for enforcement,” Mr. Perez said.

Roy S. Kempis, Pampanga State Agricultural University professor, said the DA cannot do much more since its efforts are subject to the absorptive capacity of the farmers and rural agriculture entrepreneurs.

“However, the government could energize the agricultural community by clustering and linking them to commercial markets through companies/businesses providing some resources and access in return of volume and consistency of supply in a fair price system,” Mr. Kempis said in a mobile phone message.

Glenn B. Gregorio, Southeast Asian Regional Center for Graduate Study and Research in Agriculture director, said the government can move towards more integrated infrastructure support for fisheries, help make agriculture more resilient to natural hazards and calamities, and provide long-term interventions in areas such as biosecurity in livestock and poultry.

“What we need is a more science-based and forward-looking structure, institutional, and operational reforms in the agriculture sector that must be sustained across different administrations,” Mr. Gregorio said in an e-mail interview.

Maura David de Leon, president and CEO of stevia grower Glorious Industrial and Development Corp., said in a mobile phone interview that the government can help in providing farmers with more accessible credit to boost production.

Ms. De Leon said Mr. Duterte and the next administration can help by preserving agriculture areas for food production, establishing agribusiness hubs for every district or province, and providing incentives to young farmers and entrepreneurs.

“Translating basic farming to agricultural entrepreneurship through national policy could change the perspective of young individuals that agriculture is a promising and worthwhile professional undertaking. Institutionalizing the business perspective in agriculture will attract the youth to embrace and continue cultivating their farmland,” Ms. De Leon said.

TMP launches Toyota GR Yaris, priced at P2.65M

PHOTO FROM TOYOTA MOTOR PHILIPPINES

THE MUCH-ANTICIPATED hot hatch from Toyota has been officially launched here in the Philippines. “Born from the World Rally Championships and Toyota CEO Akio Toyoda’s passion to develop the Toyota sports car, the GR Yaris is built from the ground up to surpass standards in building ever-better cars,” said Toyota Motor Philippines (TMP).

The GR (Gazoo Racing) prefix denotes increased performance, as Toyota Gazoo Racing is the brand’s “performance development arm specializing in motorsports and development of ever-better cars, (combining) motorsports technology and design to develop the GR Yaris as a pure performance vehicle and a heart-racing daily driver.”

Toyota said that while regular motorsports cars are built from normal road production vehicles, the GR Yaris is the reverse — built primarily as a motorsports vehicle, then engineered as a road vehicle. Its G16E-GTS three-cylinder inline DOHC four-valve roller rocker engine, hailed as the “world’s best” inline three, is mated to a six-speed manual transmission. Power is coursed to the car’s unique GR-Four four-wheel drive system that “makes the GR Yaris competitive and rally-ready in any condition.” Standard on the Philippine-spec GR Yaris is the High Performance/Circuit Package.

It gets a light but sturdy carbon fiber roof, 18-inch BBS forged alloys, three-tier LED headlamps with daytime running lights, and LED rear combination lamps to match the strong front profile. The GR Yaris also features smart entry and a push start system, and its seats are wrapped in suede and synthetic leather seats. Normal, Sport, and Track drive modes are available, and its audio system gets Apple CarPlay and Android Auto compatibility.

In aid of safety, Toyota fits the GR Yaris with driver-assistive Toyota Safety Sense features (pre-collision system, automatic high beam, lane trace assist, adaptive cruise control). These are in addition to six SRS air bags, anti-lock brakes, vehicle stability control, and hill-start assist control. Its front and rear Torsen limited slip differential provides increased traction and improved stability for the vehicle.

The GR Yaris is priced at P2.65 million for the 1.6L Turbo MT variant, which comes in three colors: Super White II, Emotional Red, and Precious Black. It will be available in Toyota’s 16 GR Performance dealers nationwide starting Aug. 14. For more information, check out TMP’s official pages — Toyota Motor Philippines and Toyota Gazoo Racing PH on Facebook and Instagram, official website, and Twitter.

Slowly recovering amid the ongoing pandemic

FREEPIK

THE PHILIPPINE automotive industry is gradually picking up from the impacts of the coronavirus disease 2019 (COVID-19), which has largely hampered mobility and has reshaped how industry players offer their products and services as well as what consumers are looking for in a vehicle.

The year 2020 witnessed a plunge in vehicle sales, with data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) recording a 39.5% decrease in sales and figures from the Association of Vehicle Importers and Distributors, Inc. (AVID) tallying a 41% decline compared to 2019.

Halfway through 2021, nonetheless, ‘hints of recovery’ are seen as vehicle sales have generally picked up, although some months have seen a pause in such rebound due to the reinstatement of stricter quarantine measures.

Joint figures from CAMPI and TMA show that for the first half of the present year, vehicle sales went up 56.1% to 132,767 units from 85,041 in the same six months last year. From January to June, commercial vehicle (CV) sales increased 47.8% to 90,361 units, compared to 61,129 units sold in the same period last year. Likewise, passenger car sales rose 77.3% to 42,406 units from 23,912 units sold in the first half of 2020.

In a statement, CAMPI President Rommel R. Gutierrez observed that “[t]he auto industry continues to adjust to the effects of the pandemic, at the same time striving to strike a balance between its contribution to the economy and keeping its stakeholders safe and healthy during these unprecedented times.”

AVID, on the other hand, recorded a 55% increase to 30,153 units compared with the figure in the same six months last year. In a recent BusinessWorld report, AVID President Ma. Fe Perez-Agudo noted that “the recent numbers are encouraging” in spite of the automotive industry, especially importers, being in an “uphill struggle”.

FIRST SIX MONTHS
Last January, CAMPI and TMA recorded 23,380 units sold that month, which was 1.4% down from 23,723 in the same month in 2020. In a statement, CAMPI considered this slight decline as a hint of a slow recovery for the industry.

CAMPI-TMA’s figures in February, however, showed a sluggish rebound as 26,230 vehicles were sold. Year on year (y-o-y), this indicated a 12% decline from 29,790 units. Month on month (m-o-m), this showed a 12.2% growth from January levels; and this was attributed to improvements in sales of Asian utility vehicles and light trucks. AVID, meanwhile, noted a 15% y-o-y decline and a 3% m-o-m increase to 5,401 vehicles.

March saw a surge in CAMPI’s and TMA’s sales, with an 88% y-o-y increase to 20,702 units. This was, however, a 21.1% decrease from February’s sales; and this was attributed to the imposition of provisional safeguard duties on imports and the renewed lockdown restrictions. AVID recorded a 95% y-o-y jump to 5,193 units sold, although this was also a 4% m-o-m decline.

After it investigated a link between the decline in employment in the domestic automotive industry and the increase in automotive imports, the Department of Trade and Industry earlier in the year imposed 200-day provisional safeguard duties on imported cars to protect local jobs. Both CAMPI and AVID have pushed back against the safeguard duties, considering them to be limiting and disrupting the industry’s recovery.

Also, back in late March, Metro Manila and adjacent provinces were put under a modified enhanced community quarantine, which lasted until May 14.

April saw another surge in sales, especially in y-o-y terms. CAMPI-TMA figures showed 17,843 vehicles sold, a record 13,315% higher than the 133 sold in April 2020, albeit 12.8% lower than previous month’s sales. CAMPI’s Mr. Gutierrez cited tighter bank lending to have dampened spending for big-ticket items such as cars. AVID also reflected such rebound with 4,396 units, 24,322% higher than just 18 vehicles sold in the same month last year.

CAMPI-TMA figures in May recorded a four-time y-o-y increase as 22,062 units were sold, a 360.8% jump from 4,788 last year. Likewise, sales jumped by 23.6% from April. AVID tallied a 293% y-o-y surge and 8% m-o-m growth to 4,864 units.

Last June, vehicle sales of CAMPI and TMA members increased by nearly 45% to 22,550 compared with 15,578 units sold a year ago, albeit a “measly” 2.2% increase from May’s sales. The increase was likewise steady in AVID’s figures as sold units went up 33% y-o-y and 1% m-o-m to 4,936 units.

OUTLOOK
Much remains to be seen as the second semester unfolds, yet the positive outlook amid spotted challenges is still intact within the industry.

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

He pegged sales growth in 2021 to 30-35%, although provisional duties could lower this to 20-25% compared with last year’s figure.

Fitch Solutions Country Risk & Industry Research, meanwhile, reported that auto sales growth could end up as high as 21.5% this year, led by purchases of CVs. — Adrian Paul B. Conoza

Style (07/26/21)

FitFlop taps MAP Active as new distributor

FOOTWEAR company FitFlop has announced that it has appointed MAP Active Philippines, Inc. as its new distributor in the Philippines. MAP Active Philippines Inc., a subsidiary of PT MAP Indonesia, will take the reins from FitFlop’s previous Philippine distributor, Primer Group, as it re-launches in the local market in Oct. 2021. FitFlop plans to re-launch operations in both physical and online stores in the Philippines this year. Nine stores will reopen, including those in SM Pampanga, SM Cabanatuan, SM Bacolod, SM Megamall, SM North EDSA, Ayala Centrio, Ayala Abreeza, Trinoma, and Robinsons Place Manila.

Rustan’s Studio Artesan offers Pinoy RTW

VISITING Rustan’s Studio Artesan concept store is one way to discover the multiplicity of design in a country made up of 7,640 islands. The local, ready-to-wear (RTW) brands being showcased at Studio Artesan are: Anthill Fabric Gallery, a social enterprise that offers contemporary, stylish apparel made from weaves crafted by indigenous tribes from Luzon, Visayas, and Mindanao; Etika Collective, which has locally crafted light and easy pieces with feminine details made from natural, earth-friendly fabrics; Everyday Pinay, which focuses on Filipino fashion that can be worn on a daily basis, using Yakan fabrics reinterpreted into modern silhouettes; Kaayo, a clothing brand that honors Mindanao; Liwayway, which offers luxe clothes for home like shorts with embroidered coral details, richly patterned batik pants with beaded tassels, and elevated jumpsuits; Maison Metisse, which offers designer resortwear  with a “desert goddess” feel and a core collection of comfortable, cotton T-shirts with fun slogans; Sitara Vintage, lounge and resort pieces made from South Asian fabrics; Style Ana, tops featuring a relaxed terno sleeve which coordinate with matching shorts, or soft pants and wrap skirts. Studio Artesan is showcased at the rustans.com website and Rustan’s Makati.

Tesoros offers national costumes for kids

TESOROS now offers national costumes of the Philippines for children, right in time for Linggo ng Wika. The outfits —  balintawak dresses (P1,975), jusi barongs (P3,799), and a “magsasaka costume” (P406 for a set) — are available online at https://www.tesoros.ph/collections/children. Tesoros’ store is at the Tesoro’s Bldg., 1016 A. Arnaiz Ave., Makati City.

Watsons, Grab have online health and beauty partnership

THE A.S. WATSON Group, the world’s largest international health and beauty retailer, and Grab, Southeast Asia’s leading superapp, have launched their Philippine partnership which will make essentials such as medicines and self-care products more accessible to Filipinos. The two leading brands entered into a cooperation agreement on these fronts: Watsons x GrabMart in which consumers can enjoy more ways to shop for Watsons health and beauty products online through GrabMart, starting in Metro Manila and Cebu before expanding to all Grab serviceable areas; Watsons Online x GrabExpress where consumers can order for their health and beauty essentials online and have it delivered in five hours or less; Watsons x GrabPay, where shoppers can use Grab’s in-app wallet, GrabPay, to pay for their Watsons purchases both online and offline (earning points along the way). As a welcome treat, consumers can enjoy free delivery when they shop for at least P700 worth of Watsons products on GrabMart by using the code WATSONS. Shoppers can get both free delivery plus a P100 discount, with a minimum spend of P1,990 worth of Watsons products on the app by using the code WATSONS100.

Tod’s and Hender work on exclusive collaboration

JAPANESE brand Hender Scheme’s designer Ryo Kashiwazaki, has worked with Tod’s Creative Director Walter Chiapponi to interpret the world of Tod’s with his creative style and craftsmanship. This collaboration is part of Tod’s Factory, a creative laboratory at Tod’s, born to realize innovative and unconventional projects in collaboration with designers and artists from the world of luxury and design. These talents are given access to the iconographic heritage, Italian artisanal excellence and know-how of Tod’s, which they use to interpret and translate into product with complete creative freedom. The capsule collection will launch in September, with an event during Milan Fashion Week, and will be available immediately after in select Tod’s boutiques, on tods.com, at 10 Corso Como in Milan and Seoul and at Dover Street Market in Tokyo, Beijing and Singapore. In the Philippines, Tod’s is exclusively distributed by Stores Specialists, Inc., and is located at Greenbelt 4, Rustan’s Shangri-La, and Shangri-La Plaza and online at Trunc.ph, Rustans.com, Zalora, and Lazada.

Cream Silk launches collaboration with Ben & Ben

Ben & Ben  is one of the biggest music acts in the country, with over 1 billion streams on Spotify and numerous chart-topping hits like “Kathang Isip,” “Maybe the Night” and “Araw-Araw.”  It is also one of the most recognizable acts of today thanks to the very distinct look of frontmen Paolo and Miguel Benjamin, both of whom sport long, straight, jet black hair — a look that earlier this year inspired a fan-made meme putting the brothers’ faces on Cream Silk Conditioner products in place of its conventional female endorsers. Once the meme went viral, Cream Silk also shared the photo on its official Twitter account, with the caption: “Gusto niyo totohanin para ‘di nalang to #KathangIsip?” So, by August, Cream Silk is teaming up with Ben & Ben on a landmark campaign called #CreamSilkArawAraw. This marks the first time Cream Silk has enlisted male ambassadors in its roster. Inspired by the band’s hit song “Araw-Araw,” Cream Silk and Ben & Ben will be releasing the song #CreamSilkArawAraw which urges the use of a conditioner every day. Ben & Ben and Cream Silk will be holding a free online concert on Aug. 8, 8 p.m., at the official ABS-CBN Facebook Page.

Burberry Olympia bag campaign

Burberry reveals its campaign for the Olympia bag — a signature for the house, designed by Riccardo Tisci. The bag has a crescent curve that molds closely against the body, an athletic aura told through its defined arc. The shape nods to the past with a twist of modern classicism. The shoulder bag is sculpted from smooth leather and crafted in Italy. “When designing the Olympia, I was thinking about creating the perfect form of a handbag — something that could capture the essence of femininity. So, for the campaign, I wanted to celebrate three incredible women in my life who embody the power and beauty of feminine energy: FKA Twigs, Kendall, and Shygirl,” said Mr. Tisci, Burberry Chief Creative Officer, in a statement. The Olympia bag is available in a variety of sizes, styles and colorways from classic warms and, black and burgundy to vibrant marigold yellow, pale blue and juniper green. It is available to purchase globally in Burberry stores and online. In the Philippines, Burberry is exclusively distributed by Stores Specialists, Inc., and is located at Greenbelt 4 and Rustan’s Shangri-La and online at Trunc.ph.

Formica now distributor of Fenix interior design surfaces

Formica Philippines is now the exclusive distributor of the Fenix range in Philippines, presenting the innovative materials designed in Italy. Fenix are the innovative materials created for interior design by Arpa Industriale in 2013. They arise from the Italian design tradition, reflected in the project stylistic choices: from the colours selection to the overall aesthetic result of the interiors applications. Applying proprietary technologies, the external surface of Fenix is characterized by the use of next generation acrylic resins, hardened and fixed through an Electronic Beam Curing process. With low light reflectivity, the Fenix surface is extremely opaque, soft touch and anti-fingerprint. They are suitable for both vertical and horizontal applications in kitchens, bathrooms, design furniture, retail, offices, and contract.

SC grants Napocor refund to Cathay Pacific Steel

THE country’s highest court has granted the petition of Cathay Pacific Steel Corp. for National Power Corp. (Napocor) to refund P24.6-million worth of unapplied electricity rate discounts since 2002.

In its decision dated May 4 and published on June 21, the Supreme Court (SC) said the Commission on Audit (CoA) “committed grave abuse of discretion amounting to excess or lack of jurisdiction when it dismissed outright the money claim of [Cathay Pacific Steel].”

On May 27, 2010, the commission sided with Napocor and dismissed the petition of Cathay Pacific Steel for a refund as it held that the 2010 decision of the Court of Appeals. The appellate court ruling affirmed the decisions of the Energy Regulatory Commission (ERC) in 2006 and 2009 to grant Cathay Pacific Steel a refund, but did not specify the amount to be refunded.

The SC, however, proved the claim to be untrue and said that even if the rulings of the ERC and the appellate court failed to specify the amount in question, the CoA can easily determine the amount from the case records.

“Significantly, [the commission] has the authority to grant money claims not only for liquidated amounts, but also for those which are readily determinable,” it explained.

In 2002, then-Philippine President Gloria M. Arroyo ordered producers and distributors of electricity “to give price incentives to large electricity users so that excess power can be utilized, economic activity can be encouraged, and jobs can be created.”

The project was headed by the ERC, which then adopted the Special Program to Enhance Electricity Demand that offered existing power plants a discount of P0.8 per kilowatt hour (kwh) and tasked Napocor to implement the program.

However, the ERC found out that Napocor started to implement the program only in January 2003 instead of Oct. 26, 2002. — Bianca Angelica D. Añago

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