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Time running out for Duterte’s economic reforms

PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

TIME MAY BE running out for President Rodrigo R. Duterte to implement the remaining economic reforms, as some key priority measures have yet to be passed by Congress less than a year before he steps down.

Congress opens its final regular session today (July 26), in time for Mr. Duterte’s final State of the Nation Address (SONA) against the backdrop of the economy’s sluggish recovery and a rise in coronavirus cases with the more contagious Delta variant.   

Add to that Fitch Ratings’ recent revision of its outlook on the Philippines’ sovereign rating to “negative,” which means the country’s hard-earned investment grade rating could be downgraded in the next 12-18 months.

Duterte administration’s legacy through the years

According to credit raters and experts, Mr. Duterte needs to urgently push for the legislation of much-needed economic reforms that would help the Philippines recover faster from the pandemic and attract more investments.

The passage of laws amending the Public Service Act (PSA), the Retail Trade Liberalization Act (RTLA), and the Foreign Investment Act (FIA) will be key to driving investments into the Philippines, said Christian de Guzman, senior vice-president of Sovereign Risk Group at Moody’s Investors Service.

The three measures are aimed at easing restrictions on foreign ownership on some sectors. The bills amending the PSA and the FIA are still pending at the Senate, while a Bicameral Conference Committee has yet to finalize the version of the RTLA amendments.

Senate President Vicente C. Sotto III last week said the Senate will prioritize the passage of those three measures, as well as the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery Act and the bill seeking to impose taxes on Philippine offshore gaming operators.

Still, there are worries that Congress will not have enough time to pass these economic bills as lawmakers will also focus on the proposed 2022 national budget, the ongoing pandemic, and their reelection plans.

“It remains to be seen whether such reforms can be passed and subsequently signed into law given the limited amount of time left in the legislative calendar and, simultaneously, the attention required of lawmakers by issues related to the broader pandemic,” Mr. De Guzman said in an e-mail.

The Philippine economy has suffered due to the pandemic, shrinking by a record 9.6% in 2020.

In the first quarter, gross domestic product (GDP) contracted by 4.2%. Among economic components, investment represented as capital formation saw the steepest decline at 18.3% in the January to March period.

Still, government officials are hopeful of the economy’s rebound with GDP expected to grow by 6-7% this year and by 7-9% in 2022.

“Beyond any particular measure or reform related to improving the investment climate, the ability of the government to address the immediate pandemic situation, lowering infections, improving vaccination coverage and opening up the economy will have the greatest influence in terms of facilitating fiscal consolidation and restoring growth,” Mr. De Guzman said.

Economic reforms could stall by the fourth quarter as lawmakers focus on the upcoming elections, and this may hurt the pace of recovery, said Fitch Solutions Country Risk & Industry Research Senior Asia Country Risk Analyst Michael Langham.

The filing of certificates of candidacy is set in October, although candidates typically begin their campaign months ahead.

“Fiscal disbursement delays are also a threat given fiscal stimulus remains vital to helping the domestic recovery,” Mr. Langham said in an e-mail.

TAX REFORMS, INFRASTRUCTURE
For its remaining months, the government’s focus should be on implementing infrastructure programs and legislating the remaining tax reform packages, said former Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo.

“There is very little time left to establish game-changing reforms but nothing is impossible for those who have strong political resolve to get things done,” Mr. Guinigundo said in a Zoom interview.

To drive economic recovery, the government needs to generate more revenues through tax reform to support the higher spending due to the pandemic, he added.

Last year, the fiscal deficit ballooned to 7.5% of GDP from 3.4% of GDP in 2019 as the government spent more for its pandemic response, while revenues slumped due to the economic slowdown.

This year, the budget gap is expected to increase to 9.3% of GDP or P1.856 trillion. The government is eyeing to borrow P3 trillion from domestic and external sources to plug the deficit.

“It is easier to just borrow here or abroad but a more sophisticated approach to it is to be able to design, pass through Congress, and implement a better, more efficient, more simplified tax system that will bring in more revenues to the government without so much hitting both corporate income and tax payers,” Mr. Guinigundo said.

The former BSP official said legislators should also prioritize the bill that will establish a fiscal regime for the mining industry. This measure is still pending in the House of Representatives.

Mr. Guinigundo said Congress should also focus on the remaining tax reform packages — the proposed Real Property Valuation and Assessment Reform Act and the Passive Income and Financial Intermediary Taxation Act. Both are pending at the Senate committee level.

“[The tax reform measures] will also help attract foreign and even domestic investors because the tax regime will be simpler, fairer, and there will be greater efficiency in the taxation and collection,” Mr. Guinigundo said.

The government should continue to ramp up spending for infrastructure projects, particularly in healthcare facilities that were put to the test during the pandemic.

Mr. Guinigundo noted that spending for infrastructure rose during the current administration, averaging 5.1% of the country’s yearly GDP from 2016 to 2019. Mr. Duterte assumed office mid-2016.

To compare, infrastructure spending accounted for an average of 2.5% of GDP during President Benigno S.C. Aquino III’s term, and an average 1.5% of GDP between 2001 to 2010 under President Gloria Macapagal-Arroyo’s administration.

“Depending on their priority, I think they (the government) should focus on what could be completed and those with greatest multiplier effects. I think they should concentrate on transport and mobility. It offers great potential for productivity increase,” he said, noting that most projects will likely be unfinished by the end of the Duterte administration and should be prioritized by the next administration.

For Asian Institute of Management economist John Paolo R. Rivera, there is still need for a stimulus package like Bayanihan III that would provide direct subsidies to households affected by the pandemic.

“The ‘Build, Build, Build’ alone cannot justify a significant growth rate because it’s just the government mostly spending for construction, it will be a half-baked growth,” he said in a Zoom interview.

Under House Bill 9411, P108 billion out of the P400-billion stimulus package will be given as a cash assistance program that will disburse P2,000 for all Filipinos.

“When you actually pass it [the stimulus measure] and disburse funds, it will actually come into the equation of our GDP — companies are spending, consumers are spending, and government is spending, and that will contribute to GDP growth,” Mr. Rivera said.

Household spending which makes up around three-fourths of GDP was still down by 4.8% in the first quarter.

RETURN TO GROWTH
The coronavirus pandemic ended 21 years or 84 straight quarters of Philippine economic growth, which was among the fastest in Asia.

For the remainder of his term, Mr. Duterte should focus on reforms and policies that would help the Philippines return to its pre-pandemic growth rates, experts said.

“An inability to restore previously high rates of growth relative to similarly rated countries could denote a degree of economic scarring that suggests a lower assessment of economic strength. At the same time, the persistence of wide fiscal deficits could lead to even higher debt and hamper the ability of the government to respond to future shocks,” Moody’s Mr. De Guzman said.

Moody’s last affirmed its “Baa2” rating with a “stable” outlook for the Philippines in July 2020.

Experts noted the next administration should continue any positive reforms undertaken by the Duterte administration.

“In the spirit of development, you have to let the next administration build on the existing projects that you have. In the same way that President Duterte built on the achievements of President Aquino, in the same way that President Aquino built on the gains of President Arroyo and so on,” Mr. Rivera said.

For Mr. Guinigundo: “We are building for our people, for the next generation. Whoever gets the credit is immaterial so finish what can be finished.”

Celebrity-obsessed PHL politics to test Duterte’s cling to power

REUTERS
Philippines President Rodrigo R. Duterte arrives with daughter Sara Duterte-Carpio to attend the enthronement ceremony of Japan’s Emperor Naruhito in Tokyo, Japan Oct. 22, 2019. — REUTERS/FILE PHOTO

By Norman P. Aquino, Special Reports Editor

JEDEL RODNEY S. MACINAS, 32, voted for Philippine President Rodrigo R. Duterte in 2016 after he promised to end corruption and the country’s illegal drug menace in six months.

“He said he would step down if he failed but he’s all talk and no action,” the taxi driver from Albay said in an interview. “Voting for Duterte was one of my biggest regrets.”

Now, the tough-talking leader, who is barred by law from running for reelection, is considering running for vice-president once his six-year term ends in 2022.

A Duterte-Duterte ticket also looms given hints by his daughter Davao City Mayor Sara Duterte-Carpio of a presidential run.

“We may have the first direct dynastic succession at the presidential palace by the ballot box,” Richard J. Heydarian, a professorial chairholder in geopolitics at the Polytechnic University of the Philippines, said by telephone.

“We’ve had precedents in the past whereby mother and son or father and daughter became Presidents, but never in direct succession,” he said, referring to the late democracy icon Corazon C. Aquino and her son Benigno III, and the late President Diosdado P. Macapagal, Sr. and his daughter Gloria Arroyo.

“But we’re talking about a presidential gap that lasted decades,” Mr. Heydarian said. The prospect of a direct dynastic succession is highly intriguing if not controversial for many people.”

Mr. Duterte this month gave the strongest hint yet that he might run for vice-president in 2022, saying he was “seriously thinking” about the post. Being vice-president could protect him from potential lawsuits, he said, in a country that’s used to sending its former leaders to jail.

His critics and legal experts have refuted such thinking, noting that a Philippine vice- president is impeachable but not immune from lawsuits

Mr. Duterte faces an investigation by the Hague-based International Criminal Court for alleged crimes against humanity in connection with his war on drugs that has killed thousands.

Mr. Duterte appears to have been emboldened by the call of his allies at the Partido Demokratiko Pilipino–Lakas ng Bayan or PDP-Laban for him to run for vice-president. His party mates also asked him to choose his presidential running mate.

‘FORMIDABLE TEAM’
A faction of PDP-Laban had also expressed support for his daughter’s supposed presidential ambition, which has created a rift with the camp of boxing champ and Senator Emmanuel “Manny” D. Pacquiao.

Mr. Duterte led the pack among potential 2022 vice-presidential bets and his daughter remained the top pick to be his successor as President, according to a poll by Pulse Asia Research, Inc.

A potential father and daughter tandem at next year’s elections is particularly controversial in light of earlier speculations that Mr. Duterte might pull off a Putin-Medvedev move.

The Putin-Medvedev tandem was the joint leadership of Russia between 2008 and 2012, when Vladimir Putin, who was barred by law from serving a third straight term as President, assumed the role of Prime Minister under President Dmitry Medvedev.

While the Prime Minister is supposed to be under the President, political experts thought Mr. Putin kept his power. He was reelected President in 2012 and Mr. Medvedev became his Prime Minister.

The probability of a Duterte-Duterte ticket for 2022 injects some interesting dynamics in Philippine elections, Mr. Heydarian said. “Should that happen, we’re looking at a very formidable team — the full machinery of the state and the popularity of the President.”

“A President and vice-president who are relatives would look bad,” Ramon C. Casiple, executive director at the Institute for Political and Electoral Reform, said by telephone. “It’s politically untested and does not offer an advantage.”

He noted that in the Philippines, where the president and vice-president are elected separately and may come from different parties, candidates for the top and second-top positions usually come from different regions to maximize their political base and support.

“Does Duterte think he has the entire country in his hand and can manage to win with his daughter?” Mr. Casiple asked. “How will they get majority votes in areas outside Mindanao? The Dutertes could get demolished by their rivals in Luzon and the Visayas,” he added.

A potential run for President by Mr. Pacquiao, who like the Dutertes is from Mindanao, is expected to split the region’s vote.

The boxing legend’s star power in a country famed for its boxing-crazed and celebrity-obsessed politics could put him at the forefront of the May 2022 presidential contest.

The rivalry between Mr. Pacquiao and Sara Duterte could open up the space for candidates outside the two camps, including Manila Mayor Francisco “Isko” Moreno Domagoso and Senator Grace Poe-Llamanzares.

PERMUTATIONS
Like Mr. Duterte, the late President Benigno S.C. Aquino III also enjoyed a 50-60% approval rating, yet divisions among his preferred candidates benefited Mr. Duterte, who had bluffed his way into the presidency, and changed the course of history, Mr. Heydarian said.

“Back in 2015, Duterte supposedly backed out from running just to eventually become a replacement candidate under very controversial legal circumstances but with huge political implications down the road,” he said. “That’s how you intrigue voters, that’s how you get attention.”

There is also the prospect of a tandem between Ms. Duterte for vice- president and ex-Senator Ferdinand “Bongbong” R. Marcos, Jr. for president next year, which would be less controversial than a father and daughter team.

“I don’t’ think Bongbong Marcos will run for anything less than the presidency, having lost the vice-presidential race only by razor-thin margins, which he had legally contested year after year,” Mr. Heydarian said.

A Duterte-Duterte tandem also doesn’t mean Mr. Duterte would be in power given that his daughter has shown a significant amount of independence and autonomy. “People on the ground would tell you that when Sara was Davao mayor and his father was vice mayor, it was far from a smooth operation. There were tensions, differences in philosophy of governance, not to mention generational differences,” the analyst said.

“All these permutations would make the presidential race more unpredictable than what some people would want to argue as the supposed narrative of inevitability,” Mr. Heydarian said. “I don’t think there is anything inevitable, even if the odds are stacked against the opposition and are in favor of the incumbent and his anointed successor,” he added.

Even if the Dutertes and Marcoses combine forces, there will be baggage. “The Marcoses will have to contend with a still significant anti-Marcos sentiment in the country for the corruption and nepotism that happened under the Marcos regime,” he said.

Mr. Duterte’s record is also far from stellar given his “massive mismanagement” of the coronavirus pandemic. “Duterte may be charming, authentic and may have popular appeal, but what we really need is competent leadership.”

Mr. Macinas, the taxi driver, thinks he won’t make the same mistake twice.

“They killed small-time pushers but big-time drug lords are still here,” he said. “The Chinese are everywhere and the illegal drugs come from China.”

“Pacquiao? He’d want us to believe that he won’t steal taxpayers’ money because he’s already a billionaire,” Mr. Macinas said. “His advisers will be the one to run the country because he’s incompetent. If he really wants to help, just use his money to help the poor.”

Work on Cebu container port to start in January

By Arjay L. Balinbin, Senior Reporter

THE CONSTRUCTION of a new international container port in Consolacion, Cebu is targeted to begin in January, the Transportation department said.

The P10-billion New Cebu International Container Port will handle all-foreign containerized cargo to complement the Cebu Baseport.

“Construction/civil works (are) targeted to start in January 2022,” according to a document from the Department of Transportation (DoTr) obtained by BusinessWorld.

The project is expected to be completed by the fourth quarter of 2024.

In January this year, the DoTr sought potential bidders for the civil works contract of the port project.

“The works to be performed by the contractor under this contract comprise, but (are) not limited to, detailed engineering design and construction of berthing facilities, revetment for reclamation, dredging and reclamation, road, bridge, water supply and drainage, electric installation, architectural facilities, and electronic communication facilities,” the department said in its invitation for pre-qualification.

The project, according to the Finance department, has an estimated overall cost of P10.1 billion.

In 2018, Finance Secretary Carlos G. Dominguez III signed a $172.64-million loan agreement with the Export Import Bank of Korea for the construction of the new container port in Cebu.

The government will provide P1.4 billion or $26.09 million for the port project, which “aims to free up the existing seaport in the province and provide a more efficient and reliable transport infrastructure for the unimpeded flow of goods and services in the Visayas,” the Finance department said in a statement on its website.

“It will include a berthing facility with a 500-meter quay wall length that can simultaneously accommodate two 2,000 TEU (Twenty-foot Equivalent Unit) vessels; operating facilities and structures for containers such as a freight station and inspection shed; an access road and bridge; and a dredged waterway and turning basin,” it said.

The loan carries a preferential interest rate of 0.15% per year for non-consulting services and 0% for consulting services. The maturity period is 40 years, inclusive of a 10-year grace period.

On March 9, 2020, the Transportation department signed a consulting services contract with the joint venture of South Korea’s Yooshin Engineering Corp., Sekwang Engineering Consultants Co. Ltd., and Korea Engineering Consultants Corp. in association with SVTI.

Under the contract, the consulting services will be financed out of the proceeds of the loan and should not exceed $5.44 million.

Fed officials to meet, GDP data coming globally

REUTERS

FEDERAL RESERVE officials aren’t expected to signal a reduction in support for the US economy when they meet this week, but will debate how to scale back massive bond purchases when the time comes.

Pressure on Chair Jerome Powell to start the taper sooner rather than later has probably been eased by the recent slide in bond yields, as investors worry the spreading delta coronavirus variant could sap the recovery.

He told Congress on July 14 that the economy was “a ways off” from reaching the threshold the Federal Open Market Committee has laid out for reducing monthly purchases — from a current pace of $80 billion in Treasuries and $40 billion in mortgage-backed securities (MBS).

Still, policy makers are expected to discuss when to begin the process during their two-day meeting, with concludes Wednesday, as well as at what pace and whether to prioritize MBS over Treasuries. A statement of their decision will be released at 2 p.m. Washington time, with Mr. Powell holding a press conference 30 minutes later.

A Bloomberg survey shows economists expect a signal of their intentions as early as the central bank’s Aug. 26-28 annual policy retreat in Jackson Hole, Wyoming, as which the Fed chair is likely to speak.

Powell has promised plenty of advance warning and the economists don’t see a formal announcement to scale back bond buying before December and the actual start not until the first quarter of 2022.

Elsewhere, central bankers in Nigeria, Ghana and Colombia set rates and in Europe, Hungary’s central bank will likely continue raising interest rates.

In addition to the Fed, investors in the US await a string of key economic data to end the month.

Early in the week, reports include those on new home sales and durable goods. On Thursday, the market will get its first reading of second-quarter growth — to determine if it’s peaked coming off the pandemic lows last year. Figures on personal income and spending are due Friday.

South Korea gross domestic product (GDP) figures out Tuesday are likely to show a slowing of growth compared with the previous quarter but still in line with government expectations for a 4% expansion this year. An upward surprise may fuel more talk of an early interest rate hike even as rising virus infections offer an unsettling reminder that the outlook is far from certain.   

Bank of Japan (BoJ)Governor Haruhiko Kuroda could shed more light on the central bank’s recently announced lending measure to help battle climate change when he speaks later on Tuesday. A summary of opinions released the following day could offer more details on the range of views within the BoJ’s board on how aggressive the bank’s green action should be. 

Taiwan and Hong Kong publish GDP data on Friday. On July 31, China will release its purchasing managers indexes for July. — Bloomberg

Industry groups to government: Allow local firms’ recovery before foreigners’ entry

By Jenina P. Ibañez, Reporter

INDUSTRY GROUPS are urging the Duterte administration to hold off on attracting foreign direct investments that could compete against local firms, giving domestic companies breathing room to recover in an economy hit hard by the pandemic.

Other business groups maintain that foreign investments are the key to recovery that would lure into the country the administration’s promised jobs.

“Current administration to rush all foreign investment incentives should be held in abeyance until the business conditions create the new normal and profitable operations,” Philippine Retailers Association Vice-Chairman Roberto S. Claudio said.

The local retail industry, he said in an e-mail, is on an uneven playing field against online commerce led by foreign suppliers that do no pay local taxes.

“This also has created a big loss of tax revenues for the government aside from loss of sales by our local in-store and online retailers,” he said.

Local construction firms are warning against unregulated competition.

Included in the Philippine Constructors Association’s (PCA) wish list is “not liberalizing the market further through the unregulated entry of foreign construction companies.”

PCA Executive Director Ibarra G. Paulino in an e-mail said that the Duterte administration should help local contractors compete in the global market.

“Remove impediments and incentivize Filipino contractors adopting digital and modern technologies to build up local capacity and capability,” he said.

Meanwhile, British Chamber of Commerce of the Philippines (BCCP) Executive Director Chris Nelson said that legislation opening up the Philippine market to foreign investment — including an amendment that would reduce the minimum required paid-up capital for foreign retailers — should be prioritized this year to bring back jobs and grow various sectors.

“Foreign direct investment will help the economy,” he said in a phone interview. “The Philippines is obviously not working in isolation and is in competition with other countries, particularly within Southeast Asia.”

Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said that more foreign ownership in the transport, manufacturing, and energy industries would not only create jobs, but would also improve service quality.

ECONOMIC RECOVERY
To improve the country’s business prospects, industry group heads said that ease of doing business should be top of mind.

“Embracing technology to improve government efficiency and effectiveness. For example — while respecting data privacy — if the agencies can just share the database so that we don’t have redundant procedures, redundant policies. And even automated backups to manual systems,” Mr. Lachica said.

PCA’s Mr. Paulino, meanwhile, said the government should revisit laws on right-of-way acquisitions to avoid delaying projects.

Philippine Chamber of Food Manufacturers, Inc. Legislative Committee Chair Helen Grace Baisa in an e-mail said the food regulator should be supported with additional staff and laboratories to further speed up services that have recently improved. The government should roll out a national single window for customs, she added.

Hit hard by the lockdowns declared to contain the pandemic, the industry group heads said that the Duterte administration should speed up vaccination and roll out economic stimulus, including health packages for construction workers and support for Bayanihan III.

Mr. Lachica said that vaccines will not only protect the health of citizens, but it would also speed up economic recovery as arresting the pandemic ensures that foreign engineers for manufacturing industries will be able to travel to the country.

The industry group heads said that infrastructure and ease of doing business initiatives should be continued after Mr. Duterte steps down, moving to further digitalization of government operations. But some priorities surrounding taxes will be the task of the succeeding political administration, they said.

“Multiple taxations” on construction materials should be removed, Mr. Paulino said, including “quarry materials being assessed by LGUs to rationalize or reduce its cost.” The food chamber said that fiscal and tax burdens should be reduced.

“[There should be] standard, clear protocols for LGUs in this new norm to hasten economic activities,” Ms. Baisa said.

According to Mr. Lachica, the next president should communicate directly with industry groups, noting an absence of direct contact with Mr. Duterte.

“I think we need to have leaders that are incorruptible, command respect from other countries, and respect the rule of law,” he said.

What do you want to see in Pres. Duterte’s last year in office?

 

Eulalio B. Austin, Jr.
President and Chief Executive Officer
Philex Mining Corp.

The Duterte administration already made a call for the revitalization of the mining industry towards the end of 2020, so perhaps what we would like to see for the remainder of the President’s term is a follow-through on that call. Already, we have seen the issuance of Executive Order No. 130 lifting the suspension on new mining agreements, and we hope that the lifting of the ban on the open pit mining method would follow suit.

What I would like to see in the next administration, which I feel will be friendlier to mining, are the following: the harmonization of national and municipal laws; the harmonization of mining law and the law on indigenous peoples; and the relaxation of the foreign ownership restrictions in the Constitution to the extent possible that is comparable to other countries where mining industry is a major contributor to the economic development.

Gregory H. Banzon
Executive Vice-President and Chief Operating Officer
Century Pacific Food, Inc.

Immediacy of purpose… I think, given that we’re probably just about 12 months away, even less, from the next election and from transitioning to the next administration, focus should really be [on] pulling this country out of this pandemic in a strong manner as possible.

I think that should be the focus, really pulling us out of the pandemic through a very efficient and I guess urgent attention on the vaccination program.

As that happens, run in parallel programs that would facilitate the opening up of the economy.

Dante R. Bravo
President
Global Ferronickel Holdings, Inc.

We would like the continued support of the President for the mining industry and to include the mining industry in the Investment Priority Plan of the government. Encourage all concerned government agencies, including the local government units, to support the mining industry.

We still have some structural reforms to do like lifting ownership restrictions in order to liberalize investments in the mining industry, establishing one stop shops for all the needed permits and clearances, delineating clearly areas open for mining investments, allot more budget for concerned regulatory agencies to hire more mining engineers, geologists and other experts or technical persons to assist the mining industry in elevating the levels of compliance, help design practices that are best-fit to our country (not simply adopting best practices elsewhere) and engage all other stakeholders in order to make the mining industry more sustainable.

Vicente Froilan M. Castelo
President
Philippine Chamber of Telecommunication Operators, Inc.

About 90% of the right-of-way issues are involving private lands, so one of our asks from the SONA of the President is hopefully, the telecom infrastructure will be considered as one of the critical infrastructures of the government just like roads, bridges, and airports. If it’s the government that is going to do the eminent domain or the expropriation for us, then that would save us a lot of time.

The Bayanihan II has a sunset provision. It’s only good for three years. It will end in 2023. We hope that the President can make the provision on the infrastructure, particularly on the telecoms side permanent.

We are also asking the NTC and the government to lower the spectrum user fees and the station licenses fees. For Globe alone, we are paying billions of pesos for these fees. As we have known already, the United Nations has declared the internet access as a basic human right, so how can we give universal access if we are impeded by higher fees for giving internet to everyone?

We are asking the WiFi frequencies to be free already, because WiFi is supposed to be a public use so dapat libre. Hindi na kami dapat sinisingil ng gobyerno when we use the WiFi spectrum.

We have also asked Congress to amend the Building Code of the Philippines to allow telcos to be part of the master plan in building construction.

Right now, under the building code, the contractor, before constructing the building, they have to have provision already for the electricity and water. We hope that internet and telecom will also be considered as such. It should be mandatory.

Isidro A. Consunji
President and Chairman
DMCI Holdings, Inc.

Full rural electrification should be a key focus area given the 93% coverage rate in Visayas and 80% coverage rate in Mindanao. Electrification efforts need to be doubled to offset the delays caused by the pandemic and attain 100% coverage by 2022.

Grid connectivity and flexibility should be another focus area. This will stabilize our power supply and at the same time lower missionary electrification subsidies.

All contractors were hit hard by the pandemic. The lockdowns and quarantine restrictions drained their productivity and capital. Government should speed up its infrastructure modernization program to help the industry recover faster.

They should also defer the entry of 100% foreign-owned construction companies. While large contractors can directly compete with these firms, the same cannot be said for small and medium-sized Filipino contractors.

Reduction of red tape. RA 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018) is a step in the right direction. Hopefully, it will be strictly implemented in all government agencies and local government units.

The bureaucracy should also be strengthened to meet the changing business environment. This could include more specialized trainings, upskilling, digitization and better talent acquisition. Boosting the competency and efficiency of the public sector will allow more businesses to grow and contribute to the economy.

Government needs to change its approach to managing the pandemic. Restricting mobility, capacity and business activities is not sustainable.

Ramoncito S. Fernandez
Chief Executive Officer
Maynilad Water Services, Inc.

The President should continue the reforms that his administration has started most specially in the passing of the law that will establish the Department of Water and/or a Water Regulatory Commission. This will surely address the country’s fragmented water regulatory framework and align the various competing agencies and prevent dysfunctional behaviors and less than favorable outcomes.

The implementation of the much-awaited Kaliwa or New Centennial Dam Project must be pursued with expediency. Metro Manila needs an alternative water source to the 60-year-old Angat Dam which currently supply 90% of the Metro Manila customers. This new major water source will greatly mitigate the challenges of climate change.

Eric T. Francia
President and Chief Executive Officer
AC Energy Corp.

I hope that there will still be follow-through with respect to the policies that promote renewables and sustainability.

The government has pushed certain policies that were in place already for renewables, particularly through the renewable portfolio standards (RPS). I think what’s still missing there is the adjustment of the annual increment of the RPS law from what it is today, which is 1% annual increment. The industry estimates that that 1% needs to be moved, increased to at least 2.5%.

There’s (also) the green energy option program (where) there’s an opportunity to lower the threshold, right now it’s 100 kilowatts. It would be good to lower that threshold over time so that more customers will be able to purchase green energy.

The third one is the green energy auction. If the government can do at least one real auction prior to the handover next year, it will be great. At least we build some momentum.

The next thing, I think top of mind for everyone, it’s still fresh in our minds, it’s this so-called surprise about the tightness in the supply situation in the industry and in the power sector. We want to make sure that we have ample reserves in the system. At the end of the day, I think it’s all about enforcement as well. Now, the implementation of the reserve market so I think that will solve a lot of things. That will encourage players to invest in ancillary or reserve capacity.

It’s also important to look at the medium term. We cannot just look at the long-term view which people have been looking at 2030, 2040.

David T. Leechiu
Chief Executive Officer
Leechiu Property Consultants

Constitutional reform, number one, to allow foreigners a bigger say in the Philippines. So, allow foreigners to practice medicine, allow foreigners to teach in the education system, allow them to practice directly architecture, accounting, law, real estate brokerage, allow them to lease land up to 99 years or 100 years. Even if we won’t let them own 100% of land, but let them own 50% of corporations and allow them to lease 100 years straight with no breaks in between. That will be powerful for the Philippines.

Calvin Lim
President and Chief Executive Officer
DFNN, Inc.

Under this administration, the industry became very progressive. All these new products that I mentioned, and some that I did not such as E-Sabong had to undergo a very strict compliance and regulatory scrutiny by the regulator before they are allowed and it has proven successful because of the growth in taxes both pre and pandemic. All these were nonexistent before this administration.

I hope to see more of these forward-thinking innovations that both the private sector and government are willing to explore as well as tightening up regulation between several agencies in the private sector such as operators to service providers, including telecommunications, ISPs and other government agencies perhaps NTC and even the police to step up to help enforce lawful gaming. More regulation is the way forward to our industry.

Romolo Valentino Nati
Chief Executive Officer
Italpinas Development Corp.

Just as scientists exercised their scientific methods in real time as the pandemic drew on, policy makers are also exercising their best discretion to adjust to pandemic conditions that are constantly changing. What I would hope to see not only in the final year of this term, but also throughout the following one, is a continuation of all the most objective and best-considered rationales for policy as it is tasked with keeping abreast of changing conditions.

Rates of vaccination are increasing, and I believe we can expect this to help all aspects of life to return to more normalcy. As they say, ‘a rising tide lifts all boats,’ and I think that improvements not only in vaccination, but also in other modes of pandemic-mitigation, like public awareness and preparedness, will benefit all industries and all aspects of life.

Butch SD. Ortega
President
Philippine Association of Private Telephone Companies

The government can extend protection to us, the small operators, who had pioneered and sacrificed during the initial years of communication in this country. The big telcos should no longer operate in the areas of coverage where small operators are operating. I am not saying that we should not have competition. What I am saying is there should be proper regulation by the government, more particularly the National Telecommunications Commission.

The NTC can first and foremost check on the CPCN of these big telcos… These telcos have nationwide franchises, meaning to say Congress has granted them that privilege to operate. But for regulatory purposes, they are still required to secure CPCN. To my knowledge, there are areas where big telcos operate without a CPCN.

Emmanuel V. Rubio
President and Chief Executive Officer
Aboitiz Power Corp.

We are looking forward to the implementation of solutions and improvements brought up in the recent hearings related to our current power situation. The sooner we are able to resolve the issues at hand, the better for our country’s energy development and most importantly, for our consumers.”

Michael G. Tan
President and Chief Executive Officer
LT Group, Inc.

We would like to see this government sustain its campaign against illicit cigarettes which deprives the government of much needed revenues and undermines public health objectives. The passage of Bayanihan III will be a big help to our countrymen reeling from the effects of the COVID pandemic. As COVID vaccines begin to arrive in bulk, I expect the administration to speed up the pace of its nationwide vaccination program and hopefully, we can acquire herd immunity before the President steps down.

Vaccination is the answer and the government cannot do it alone. The private sector is here to help and partner with the government. Civil society has a role to play too in bringing down vaccination hesitancy. Every Filipino has a role. We all need to observe health and safety protocols and get ourselves vaccinated.

 

Compiled by Arjay L. Balinbin, Jenina P. Ibañez, Revin Mikhael D. Ochave, Keren Concepcion G. Valmonte and Angelica Y. Yang

Telcos: Keep easier permit process for towers

Industry shares wish list for administration’s last year

By Arjay L. Balinbin, Senior Reporter

PHILIPPINE telcos are hoping that the Duterte administration will be able to make the provision on telecommunications in the Republic Act No. 11494 or Bayanihan to Recover as One Act (Bayanihan II) permanent, as well as cut spectrum user fees and station licenses fees, before the end of the President’s term.

“The Bayanihan II has a sunset provision. It’s only good for three years. It will end in 2023. We hope that the President can make this provision on the infrastructure, particularly on the telecoms side, permanent,” Vicente Froilan M. Castelo, president of the Philippine Chamber of Telecommunication Operators, Inc. (PCTO), said in an online interview.

The Bayanihan II, which President Rodrigo R. Duterte signed on Sept. 11, 2020, granted the government the power to simplify the permit process for building cell towers.

“Before, we could barely make out 300 to 500 sites a year with 26 to 29 licenses and permits necessary for the construction of cell sites. Now, it’s down to two,” Mr. Castelo noted.

Globe said it was able to secure 1,180 permits as of end-May, while PLDT, Inc. and its wireless arm Smart Communications, Inc. secured around 22,000 fixed and wireless permits since the government fast-tracked approvals for telco firms last year.

“We are also asking the National Telecommunications Commission (NTC) and the government to lower the spectrum user fees and the station licenses fees. For Globe alone, we are paying billions of pesos for these fees,” Mr. Castelo said.

“As we have known already, the United Nations has declared the internet access as a basic human right, so how can we give universal access if we are impeded by higher fees for giving internet to everyone?”

“We are asking the WiFi frequencies to be free already, because WiFi is supposed to be a public use so dapat libre, so hindi na kami dapat sinisingil ng gobyerno (it should be free, so the goverment should not charge us) when we use the WiFi spectrum,” Mr. Castelo also said.

On the right-of-way issues, he said: “Hopefully, the telecom infrastructure will be considered as one of the critical infrastructures of the government like roads, bridges, and airports.”

“If it’s the government that is going to do the eminent domain or the expropriation for us, then that would save a lot of time,” Mr. Castelo said.

“Ang problema ngayon kami ang nag e-expropriate (The problem now is that we are the ones who expropriate), so if there is no agreement as to the amount to be paid, we go to court. ‘Pag nagdemandahan, wala nang mangyayari (If there’s a lawsuit, nothing will be done),” he said.

PCTO has also asked Congress to amend the Building Code of the Philippines to allow telcos to be part of the master plan in building construction.

“Right now, under the building code, the contractor, before constructing a building, they have to have provision already for the electricity and water. We hope that internet and telecom will also be considered as such. It should be mandatory,” Mr. Castelo said.

For his part, Butch SD. Ortega, president of the Philippine Association of Private Telephone Companies, said in a phone interview that the government can extend protection to small operators.

“They had pioneered and sacrificed during the initial years of communication in this country,” Mr. Ortega said.

“The big telcos should no longer operate in the areas of coverage where small operators are operating. I am not saying that we should not have competition. What I am saying is there should be proper regulation by the government, more particularly the NTC.”

He said the NTC should check the certificates of public convenience and necessity (CPCNs) of big telcos.

“I am not saying the government should cut their service. The government should require them to have a CPCN,” Mr. Ortega noted.

“These telcos have nationwide franchises, meaning to say Congress has granted them that privilege to operate, but for regulatory purposes, they are still required to secure CPCN. To my knowledge, there are areas where big telcos operate without a CPCN,” he explained.

Telcos have made big improvements during Mr. Duterte’s term as a result of regulatory reforms he has implemented, Mr. Castelo said.

He also lauded the Anti-Red Tape Authority (ARTA), which streamlined processes in the issuance of permits for the construction of telecommunications towers.

“It’s really fantastic what happened. If we encounter any delay, we just go to ARTA, and ARTA will call out the local government units (LGUs), subdivisions, or agencies that actually create some bottlenecks, so that’s very good,” he said.

Citing data from Ookla, the company behind Speedtest, the Department of Information and Communications Technology (DICT) has said the country’s speed rankings for both fixed broadband and mobile internet continued to improve in June.

“Ookla figures for June 2021 indicate that the country’s average download speeds for fixed broadband is now 66.55 megabits per second (Mbps), a 6.82 increase from the 59.73 Mbps speed recorded in May 2021,” the DICT said in a recent statement.

“For mobile internet, the June 2021 speed reached 32.84 Mbps, which shows an increase of 0.86 from the recorded 31.98 Mbps in May,” it added.

“We are gaining ground. Before, we were almost at the bottom part. Now, we are in the middle,” Mr. Castelo said.

Gov’t focus sought on tight power supply

By Angelica Y. Yang, Reporter

COMPANY officials in the energy sector are hoping that President Rodrigo R. Duterte will work on addressing the country’s tight power supply situation in his last year in office after recent rotating “brownouts” in portions of Luzon.

Three executives of listed energy companies marked this as an item in their “wish lists” for the country’s top official who will be delivering his sixth and final State of the Nation Address on July 26.

“We are looking forward to the implementation of solutions and improvements brought up in the recent hearings related to our current power situation,” Aboitiz Power Corp. President and Chief Executive Officer (CEO) Emmanuel V. Rubio told BusinessWorld in an e-mail.

“The sooner we are able to resolve the issues at hand, the better for our country’s energy development and most importantly, for our consumers,” he added.

AC Energy Corp. President and CEO Eric T. Francia also said that the Duterte administration should look at solving the tight supply situation before the 2022 national elections.

“It’s really [about] putting some structural sustainable solutions to address the tight supply-demand situation, and to start looking ahead. It’s the ability to start looking ahead, three, four, five years down the road to address any impending shortage,” he said in a phone interview.

Mr. Francia noted that the Philippines is facing a rebound in electricity demand amid the pandemic, delays in adding supply, and issues surrounding plant reliability.

For him, this requires a “fresh look” at the situation and a push in certain policies.

Meanwhile, DMCI Holdings, Inc. Chairman and President Isidro A. Consunji said that grid connectivity and flexibility should be one of the Duterte administration’s focus areas.

“This will stabilize our power supply and at the same time lower missionary electrification subsidies,” he told BusinessWorld via e-mail.

‘CONTINUE RENEWABLES PUSH’
AC Energy’s Mr. Francia hopes the Duterte government will follow through with its policies promoting renewable energy and sustainability.

“The government has pushed certain policies that were in place already for renewables, particularly through the renewable portfolio standards (RPS). I think what’s still missing there is the adjustment of the annual increment of the RPS law from what it is today, which is 1%,” he said.

The RPS mandates distribution utilities to source an agreed portion of their supply from eligible RE facilities. The industry estimates that the RPS increment must be increased to at least 2.5%.

Mr. Francia added that the administration should look at lowering the 100-kilowatt (kW) threshold of the green energy option program (GEOP), and hold its green energy auction program (GEAP) before the handover next year.

The GEOP is a voluntary policy mechanism that allows consumers with at least 100 kW of usage to source their supply from a retail energy supplier, while the GEAP allows eligible renewable energy developers to supply a portion of the electricity generated by their facilities to qualified customers.

DMCI Holdings’ Mr. Consunji said that the Duterte administration should also look at ensuring full rural electrification across all major islands, given the 93% and 80% coverage rates in Visayas and Mindanao, respectively.

“Electrification efforts need to be doubled to offset the delays caused by the pandemic and attain 100% coverage by 2022,” he said.

Weaving together the past and the future

PHOTO FROM FACEBOOK.COM/UPBMUSEOKORDILYERA

THE PAST and the future were woven together in a panel discussion about reviving and preserving traditional fabrics from the Cordilleras, but also bared issues such as health hazards and cultural appropriation.

The panel discussion, titled “Habi: Weaving Philippine Textiles’ Future,” was organized by Advancing Philippine Studies at HU, based at the Institute for Asian and African Studies, Humboldt-Universität zu Berlin, with the support of the Philippine Embassy in Berlin and the Philippine Studies Series Berlin. The speaker was Prof. Dr. Analyn Salvador-Amores   of the University of the Philippines — Baguio and Museo Kordilyera who gave the talk “Agabel Tayo! Let’s Weave: Textile Revitalization in the Philippine Cordillera.” A second talk on Philippine silk and pina fabric was led by Deputy Speaker Loren Legarda (“Piña Weaving and Embroidery in the Philippines”).

During the talk, Dr. Salvador-Amores, director of the Museo Kordilyera, discussed the origins of weaving in the Cordilleras. She noted, for example, that the Southeastern part of the Central Cordillera is linked to the Sierra Madre mountains, and “seem to have no evidence of weaving in the past.” On the other hand, the Northeastern side enjoyed a booming weaving industry. “They have confluences with the Ilocos region, through trade, migration, and intermarriage. As such, you can see similar patterns, techniques, methods, and belief systems surrounding the tradition of weaving,” she said.

“Every weaving group in the Cordillera has their own distinct design, color, and local meaning that exemplify complex relations with their use of textiles,” she said.

She notes that red is a dominant color, and weaving is usually done on the backstrap loom, though some groups have adopted the foot loom (an innovation introduced by Ilocano weavers).

Anthropologist George Ellis, she said, posits that there was already a diffusion of textiles in the mountains before the 18th century. Another anthropologist, Patricia Afable, suggests that the trade of abel (or woven cloth) in Northern Luzon goes back to at least the 1700s, though interactions have already been recorded as far back as the 1500s, said Dr. Salvador-Amores. Apparently, the cloth had been so valuable that it could be used to trade for gold, pigs, carabaos, salt, jars, and horses. The traditions in weaving are usually passed by grandmothers to their female kin.

And therein lies the problem of its slow decline.

Ms. Salvador-Amores presented data that master-weavers and expert weavers, on average, are aged from their 70s to their 80s. “The sustainability of knowledge in weaving of the region declines parallel with the aging expert weavers and master-weavers,” she said.

Furthermore, the fabrics take a little bit of their weaver with them. She reports that weavers suffer from skeletal problems in the neck, shoulders, and lower back; chronic lower back issues, poor eyesight, and upper respiratory illnesses, among other health issues. “This perhaps is one of the many reasons why young people are dismayed by the tedious process, the hazards, and the long process of weaving.”

The local youth are also not interested due to the development of the market, globalization, urbanization, and the many other -ions that erode traditional crafts. “Knowledge in weaving is often not transferred from one generation to the next,” said Dr. Salvador-Amores.

There are other factors at play: a decline in cotton yields have made weavers turn to commercial threads. While this enabled them to weave more, it’s usually to mass-produce textiles meant to cater to tourists “making them vulnerable to cultural appropriation.” She then cited an example — she had spotted fake Cordillera textiles in the Baguio City Market, imported from Divisoria in Manila.

While she acknowledges that the government has undertaken measures to assist weaving groups, she said, “They remain insufficient.” She cited RA 9242 (The Philippine Tropical Fabric Law) which prescribes the use of native textiles for uniforms of government officials and employees, the Indigenous Peoples’ Rights Act, and the Intellectual Code as being able to stir awareness for the fabrics. She said though that “These are inadequate and fail to recognize the unique concepts of ownership of the community in rights and responsibilities as well as the indigenous peoples’ concept of creation and invention.”

More effective, in her opinion, are the Schools for Living Traditions which aim to teach weaving in schools in Kalinga, Benguet, and in Kiangan. However, lack of institutional and financial support has put them in peril. A solution by the Department of Education was to integrate weaving into the technical-vocational track for Senior High School.

Meanwhile, Ms. Salvador-Amores’ team in the Cordillera Textiles Project (Corditex) have been taking archival photographs of Cordillera textiles from museum collections from all over the world, and reproducing them within the source communities.

There’s also the Geographical Indication Product (GI) program, under the auspices of the Intellectual Property Office, which protects goods when their “quality and reputation are attributable to the geographical origin.” However, no such application for recognition has been filed on behalf of Cordillera textiles as of yet. “Protection through the GI is the first step in empowering local weavers. A GI specifies the place of origin of a cloth and how it has been produced,” explained Ms. Salvador-Amores.

With these projects, one can hope the threads between the Cordillera fabrics’ part and future will not be cut. — Joseph L. Garcia

Firms hope for tax breaks, better vaccine rollout

By Keren Concepcion G. Valmonte, Reporter

FIRMS are hoping the administration can introduce more programs to help businesses weather through and recover from effects of the coronavirus disease 2019 (COVID-19) on their operations.

“It does not need to be in the form of cash handouts but through tax breaks,” DFNN, Inc. President and Chief Executive Officer Calvin Lim said in an e-mail interview.

“Some industries are harder hit than others, therefore requires more tax breaks incentives,” he said, citing the tourism and entertainment industries.

Prior to the health crisis, most industries were said to be doing well because of low inflation, strong private consumption, and increased public infrastructure spending.

LT Group, Inc. (LTG) President and Chief Operating Officer Michael G. Tan said the country saw an” improved” peace and order situation.

“The campaign against illegal drugs [has] contributed to boosting investor confidence,” Mr. Tan said in a separate e-mail. “In one of our businesses, for example, the campaign against illicit cigarette traders has brought billions of pesos into the national coffers.”

The pandemic threw a “curveball” to the country’s growing economy and the prospects of businesses.

“The virus disrupted our positive momentum, but recent developments give us hope, like the low interest rates, passage of the CREATE (Corporate Recovery and Tax Incentives for Enterprises) law, signing of EO (Executive Order) 130, and [a] renewed commitment to the Build, Build, Build program,” Isidro A. Consunji, chairman and president of DMCI Holdings, Inc., said in another e-mail interview.

In March this year, President Rodrigo R. Duterte signed into law the CREATE Act, which took effect on April 11. It reduces corporate income tax to 20% or 25% from 30%, which helped give businesses a “boost.”

“[It allows us to] be able to reinvest whatever savings we can get from corporate income tax to projects that will help us. For example, capital expenditures — that can help us enhance our capacity to serve the market both domestically and abroad and provide more jobs,” Gregory H. Banzon, executive vice-president and chief operating officer at Century Pacific Food, Inc. (CNPF), said over a video call.

This forms part of the administration’s Comprehensive Tax Reform Program, with the initial package granting a reduction of income tax via the TRAIN (Tax Reform for Acceleration and Inclusion Law) Law.

“Before the new TRAIN & CREATE Law, the Philippine corporate tax rate was one of the highest in the region bringing it down a very progressive step forward in allowing innovation to take place and makes [the] Philippines a more welcoming economy,” Mr. Lim said. “The business community reacted positively as the economy grew in the region of 6-7% per year.”

Revenues from TRAIN are said to be funding value-added tax (VAT)-exempt medicines, social services, improve and build more educational and healthcare facilities. Incremental revenues are funding the country’s Build, Build, Build infrastructure program, which business leaders are lauding.

Meanwhile, business leaders are calling for the increased focus on vaccinating the population to allow the economy to reopen.

“To help MSMEs (micro, small and medium enterprises) get back on their feet, the government should focus on inoculation, standardization of LGU (local government unit) COVID-19 protocols, and easing restrictions among fully vaccinated individuals,” Mr. Consunji said.

CNPF’s Mr. Banzon said he supports the idea of having a vaccination pass to allow those who have been vaccinated to help drive consumer demand. Citing the company’s research, he noted consumers still feel restricted because of either the lockdowns or the country’s pace in vaccinations.

“Vaccination is the answer and the government cannot do it alone,” LTG’s Mr. Tan said. “The private sector is here to help and partner with the government.”

Meanwhile, DFNN’s Mr. Lim is hoping to see more developments in the technology sector by investing heavily in digital infrastructure like other governments.

“The pandemic caused a knee-jerk and almost complete dependence on digital technology,” he said. “The private sector adapting through its use of digital technology may be a significant part of the puzzle in building back our battered economy.”

With less than a year left for Mr. Duterte in office, business leaders are hoping infrastructure developments would still be a priority for the next administration.

“If we want to transform the country, there is no other choice but to improve and expand our road networks, mass transit systems, water sources, etc.,” DMCI Holdings’ Mr. Consunji said.

Meanwhile, LTG’s Mr. Tan hopes the next administration would prioritize a COVID-19 response program in restoring the economy, saying public-private partnerships will be the key.

“What we have been through during the pandemic has taught us a valuable lesson,” he said. “From mass testing to vaccination, the government and the private sector working together can serve the Filipino people better. I wish the next administration can bring this forward.”

The return of a Kombi nation?

Not your ‘flower-power’ van: The Volkswagen Multivan Kombi takes aim at the premium van segment.

Volkswagen means business (and luxe) with the iconic nameplate

FIRST OFF, while it shares the nameplate, the Multivan Kombi is clearly not the people mover of yore that symbolized love, peace, and the “flower-power” ethos that suffused a generation and its embrace of a culture of freedom.

But I digress. You could probably get those intangible ideals, utilitarian and, well, more spartan qualities in other variants of the Kombi (though unavailable here) — the Transporter (cargo/shuttle), Caravelle (people carrier), and California (camper). However, that’s not what the Multivan Kombi that Volkswagen Philippines is now bringing in is all about.

To be clear, that’s not a knock on the Multivan Kombi. It’s just another animal altogether — espousing different aspirations the local distributor of the Wolfsburg-headquartered brand has for it.

“We are very delighted that we have added another model to our portfolio this year besides the T-Cross. This is already the second model to arrive and we expect more models to arrive in the future… The Volkswagen Multivan Kombi is a brand-new, premium van ready to cater to the premium market,” said VW Philippines President Felipe Estrella during the online presser for the model.

Wait, what? Premium? Isn’t that almost antithetical to that whole “people’s car” ethos of the brand? Well, not really. But let’s shelve that thought for now and look at the wisdom of the VW Philippines decision to choose to play in the luxury van segment, when it could have also pulled the trigger on shipping in more affordable variations of the Kombi.

Mr. Estrella underscored that the Multivan Kombi is a “differently positioned product — premium,” and maintained that it makes sense to target this niche because “volumes are still there.” The customers VW is going after are CEOs and other high-level executives, that are expected to gravitate to this luxe Kombi’s “refinement and flexibility.”

The Multivan Kombi is powered by a 2.0-liter TDI engine, mated to a seven-speed DSG transmission, delivering 150ps and 340Nm of output. This, said VW, “guarantees adequate power, optimum fuel efficiency, and smooth shifts regardless of the load.” The company also points to key features like a Tiptronic function and coasting feature that “lessens driver fatigue on long trips.”

Driver Profile Select with Dynamic Chassis Control allows a more comfortable drive through customization of settings based on optimal drive practices with its option to tailor individual settings “based on steering, engine, cruise control, and air-conditioning parameters as well as offering the choice among drive modes Normal, Sport, Comfort, or Eco, according to the needs of the situation.”

On the outside, the Multivan Kombi is said to be “understated yet elegant,” and gets commensurate equipment such as LED daytime running lights, headlights, and taillights; and 17-inch alloy wheels. There’s no doubt about its intentions once you board the vehicle. VW employs Nappa leather, and gives the van front- and second-row captain seats, electric dual sliding doors, and a powered tailgate for hands-free opening and closing.

The second-row captain seats can swivel around so its privileged passengers can hold a meeting on the road. For that purpose and more, a multifunction folding table is positioned between the second and third rows. Three-zone Climatronic air-conditioning assures comfort, while a rear camera and park distance control make it easy to maneuver or park the vehicle. Tech toys include an eight-inch Discover Media with navigation, Android Auto and wireless Apple CarPlay Connectivity, and an Active Info Display. There’s even a valuable safety measure called Crosswind Assist which deals with potentially dangerously crosswinds on the road when the vehicle reaches 80kph or more by automatically activating the brakes as needed.

One of the unique value propositions highlighted by Volkswagen is the Multivan Kombi’s relative ease of ownership. Mhar Afable of VW Philippines After-Sales said that owners will get a two-year warranty (with unlimited mileage), 12 years no-through corrosion warranty (unlimited mileage), and two years parts warranty (unlimited mileage). Speaking of which, the vehicle only needs to be serviced once a year — helping to realize savings by an average of 22% compared to competitors.

The Multivan Kombi comes in four standard colors: Black Pearlescent, Reflex Silver; and bi-colors Reflex Silver/Starlight Blue Metallic and Reflex Silver/Fontana Red. An incredible additional 12 color schemes are available on indent order as well: Fontana Red, Ravenna Blue, Starlight Blue, Mojave Beige, Bay Leaf Green, Copper Bronze, Indium Grey, Candy White; and bi-colors Reflex Silver/Indium Grey, Mojave Beige/Black Pearl, Candy White/Bay Leaf Green, and Candy White/Copper Bronze.

“Kombi’s purpose remains the same: To take you to new adventures,” said Mr. Estrella. “We now have a new player in town which is different from the old Kombi we all knew — one that has evolved with the times, but still carries the same traits, ready to take on new experiences and create new memories with you and the ones you love — your family.”

The Multivan Kombi is available at introductory prices — with the mono-color variants going for P3.595 million, while the bi-color models are priced at P3.64 million.

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

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