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Economic team may rethink stimulus

A MAN gets incoulated with pfizer at Caloocan City sports complex last June 28. — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

ECONOMIC MANAGERS now appear to be open to considering a third stimulus package that could help improve the Philippines’ recovery prospects, after Fitch Ratings gave a “negative” outlook on its credit rating.

“The Development Budget Coordination Committee (DBCC) will be meeting [this Monday]. We’ll see what’s going to shape up,” Budget Secretary Wendel A. Avisado said in a Viber message to BusinessWorld.

Mr. Avisado said discussions on Bayanihan III could be a part of the DBCC’s agenda.

The House of Representatives has already approved a third stimulus package worth P401 billion. House Bill 9411 or the Bayanihan to Arise as One Act (Bayanihan III) could be the largest of the Bayanihan series of stimulus packages if passed by Congress.

However, its counterpart measure remains pending at the Senate committee level.

Socioeconomic Planning Secretary Karl Kendrick T. Chua said there are some provisions under Bayanihan III that may be considered if there are extra funds available.

“There are some items [from the measure] that we can pursue if we have savings or additional revenues,” Mr. Chua said in a Viber message.

For Marikina Rep. Stella Luz A. Quimbo, the passage of a third stimulus measure may convince credit raters that the Philippines could weather the impact of the pandemic through “well-targeted spending” that will help businesses and individuals.

“High impact government spending will be key to boosting our economy’s trajectory of growth and improving our long-term prospects. Bayanihan III lays out a spending plan to help ensure that public funds are well-targeted and used productively,” Ms. Quimbo, one of the main proponents of Bayanihan III, said in a Viber message.

Fitch Ratings last week revised the Philippines’ outlook to “negative” from “stable,” saying this reflects “increasing risks to the credit profile from the impact of the pandemic and its aftermath on policy-making as well as on economic and fiscal out-turns.”

While Fitch maintained the Philippines’ “BBB” investment grade sovereign rating, a “negative” outlook is a warning that this rating could be downgraded in the next 12 to 18 months.

“Fitch will monitor the evolution of the fiscal deficit and debt levels, as the balance between fiscal consolidation and ongoing government spending to support economic recovery will be an important consideration for the rating,” the credit rater said.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno, however, said he does not believe Bayanihan III can lift the country’s rating outlook.

“I disagree, however, that legislating Bayanihan III will help us to improve our ratings prospects after Fitch downgraded the country’s outlook to ‘negative’ from ‘stable.’ Nevertheless, it should be pointed out that in a sea of ratings downgrade globally last year and this year, Fitch has affirmed the Philippines’ investment grade…That should be seen in a positive light,” he told BusinessWorld in a Viber message.

Mr. Diokno, a former Budget secretary, said what will be crucial is for the government to accelerate the vaccination drive, continue structural reforms, and aggressively pursue infrastructure projects.

“These measures will immensely improve the Philippines’ growth prospects and its ability to attract foreign direct investments,” he said.

“The rationale for Bayanihan III fades with the submission of next year’s President’s Budget with a month or so.”

The Department of Budget and Management earlier said it is proposing a P5-trillion national budget which will focus on vaccination rollout and increased support for local governments, among others.

With the implementation of the Mandanas ruling next year, Mr. Diokno said more fiscal resources will go to local government units (LGUs).

“LGUs may be in a better position to address the needs of their local constituents who are affected by the pandemic. If local officials don’t want to overburden their fiscal position as a result of high incidence of COVID-19 in their community, then they should exert more effort to contain the virus through strict enforcement of health protocol and more aggressive contact tracing. This is what we call ‘incentive compatible,’” he added.

Lawmakers have been pushing for another stimulus package, even before the Bayanihan II expired in June.

“In the past year, the absence of a sufficiently sized economic stimulus package contributed more to the contraction of the economy and reduction in tax collection than prudent management of our debt,” Ms. Quimbo said.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said the country “appeared to have sacrificed so much” to maintain its investment grade credit rating through fiscal prudence at the expense of being unable to spend more for economic recovery.

“The decision to choose the austerity path appears to have had a bigger effect on the decline in our nominal GDP (denominator) than the increase in our public debt (numerator) translating to our debt/GDP ratio to exhibit the fastest deterioration in Southeast Asia versus 2019 levels,” Mr. Neri said in a Viber message.

The Philippine debt-to-GDP ratio stood at a record low of 39.6% as of end-2019. Since the pandemic, the ratio has climbed up to 60.4% as of end-March 2021.

Against the backdrop of rising debt level, the economy shrank by a record 9.6% in 2020 which was the worst in Southeast Asia. The Philippines remains in a recession, with GDP shrinking by 4.2% in the first quarter.

Fiscal support coming from Bayanihan I and II was equivalent to 4.4% of the country’s GDP in 2020, based on the International Monetary Fund’s policy tracker as of July 1. Other measures including credit guarantees made up 0.6% of 2020 GDP.

“Sustaining reforms such as plugging leakages in our tax system and lifting bank secrecy rules are also necessary to improve revenues and not have to rely mostly on austerity, debt monetization and negative real policy rates to keep our public sector deficits manageable,” Mr. Neri said.

In May, S&P Global Ratings retained its “BBB+” rating with a “stable” outlook for the Philippines, citing expectations of economic recovery.

Moody’s Investors Service kept its “Baa2” rating with a “stable” outlook for the Philippines in July 2020. In March 2021, Moody’s said the renewed COVID-19 surge was “credit negative” for the country.

BSP seen to keep rates unchanged through 2022

THE BANGKO SENTRAL ng Pilipinas (BSP) will likely be firm in keeping the policy rates at record lows through 2022, as the sluggish recovery in domestic demand may be at risk from another possible surge due to new coronavirus variants.

“Considering the BSP’s firmness in favoring economic growth in the policy equation, we are not expecting any policy rate changes through 2022. This reading is also shaped by our view of weakly recovering domestic demand that is even now threatened by the rapid spread of the Delta variant in neighboring economies,” GlobalSource Partners Country Analyst Romeo L. Bernardo said in a note sent on Saturday.

The Monetary Board kept the key policy rate at a record low of 2% last month, citing the need to support the economy as the coronavirus disease 2019 (COVID-19) remains a threat.

The Health department on Friday reported 16 additional cases with the more infectious Delta variant, of which 11 were local cases.  As of Sunday, 5,411 new COVID-19 cases were reported, bringing the number of active cases to 47,190.

“The pace of local vaccination so far as well as uncertainties regarding the efficacy of the deployed vaccines against the mutating virus leave us wondering whether any upward price pressures can be sustained by the slack in goods and labor markets,” Mr. Bernardo added.

Data from Johns Hopkins University showed 14.465 million jabs have been administered in the country. So far, only 4.288 million have completed two doses, representing 3.97% of the population.

However, Mr. Bernardo also cited several factors that may spur a policy rate hike earlier than expected, such as a sharper economic rebound and rising inflation.

“This may happen if the country avoids a resurgence in infections with its latest plan to focus vaccination in Metro Manila and other key urban areas that serve as entry points for new variants. In the event, the boost to consumer confidence coupled with potential aggressive election spending could result in a US-style run-up in inflation as pent-up demand is unleashed,” he said.

Mr. Bernardo noted a rising inflation momentum and the need to anchor inflation expectations “may force a preemptive policy rate hike.”

Headline inflation slowed to a six-month low of 4.1% in June on the back of slower increase in the transport index and the stable rise in food prices. However, it still marked the sixth month of inflation beyond the BSP’s 2-4% target.

The BSP this year expects inflation to average 4% before slowing to 3% by 2022.

“Risk-off global financial conditions, possibly triggered by the feared early US monetary tightening (whether by tapering its Treasury purchases or raising interest rate) and/or sentiment changes about the large buildup in emerging market debts, alongside less favorable opinions from credit raters and local political risks, may cause unmanageable capital outflows and lead monetary authorities to choose to tame an overshooting peso in lieu of keeping policy independence,” Mr. Bernardo said.

“In the event, even without a policy rate hike, we expect local market interest rates to take direction from global markets.”

Mr. Diokno has repeatedly said the central bank will keep an accommodative policy stance and will only withdraw support once there are “indisputable” signs of economic recovery.

The BSP has four more policy reviews this year, with the next one set on Aug. 12. — Luz Wendy T. Noble

BIR says on track to hit revenue goal

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE BUREAU of Internal Revenue (BIR) is on track to meet its revenue goal again this year if the economy continues to recover from the coronavirus disease 2019 (COVID-19) pandemic, officials said.

This as the BIR reported its first-half collection breached the P1-trillion mark.

Marissa O. Cabreros, deputy commissioner at the bureau, said on Sunday that the country’s biggest revenue-generating agency is optimistic it will be able to hit its P2.081-trillion target for the entire year, as economic activity picks up.

“We should always target the attainment of the goal since these are set based on the expenditure plan of the government for the year,” she said in a phone call, adding that better economic landscape should help prop up BIR’s collections.

The bureau generated P1.034 trillion from January to June, exceeding its P1.018-trillion target for the period by 1.61%, BIR Commissioner Caesar R. Dulay said in a text message on Friday.

This was also 8.11% higher than the P956.397-billion tax collection in the first half of 2020, when strict lockdowns halted nearly all economic activity.

In the first half of 2021, the economy showed signs of recovery as quarantine restrictions in Metro Manila and surrounding areas have been eased, alongside the rollout of COVID-19 vaccines.

Economic managers set yearly collection goals for the bureau and other revenue-generating offices to fund the government’s spending plan, and borrows the rest to plug the funding gap. For this year, the state has set a P4.5-trillion budget and projected total revenues to hit P2.881 trillion.

To recall, the BIR exceeded its downscaled target last year after generating P1.846 trillion, 12.5% above the P1.642-trillion goal. It accounted for 74% of the government’s total revenues worth P2.5 trillion in 2020.

Meanwhile, the Bureau of Customs also exceeded its P291.833-billion goal for the first half by 3.7%, after collecting P302.74 billion.

This made up 48.83% of the BoC’s P620-billion collection target for the entire year.

The economy is projected to grow by 6-7% this year. — Beatrice M. Laforga

Better payment channels may boost remittance inflows — ADB

AN IMPROVEMENT in the domestic payment channels may help boost remittance inflows to the Philippines as this will help promote financial inclusion and reduce reliance on cash, a study by the Asian Development Bank (ADB) showed.

“In the Philippines, a key lesson is that by improving the domestic payments environment, international remittances can benefit. More broadly, better domestic payment systems can encourage more people to obtain accounts and become ‘financially included,’ removing their need to receive money in cash,” the ADB said in a study: “Harnessing Digitization for Remittances in Asia and the Pacific.”

Better domestic payment systems can also help accelerate the remittance process and reduce costs for overseas Filipinos.

“The importance of digitization to addressing many of the challenges with remittances cannot be overstated. When properly deployed they help reduce the price of remittances, increase access for consumers, address gender issues, improve settlement, optimize operations, provide valuable data, and many other benefits,” the multilateral lender said.

The Philippines is the third-largest recipient of remittances in Asia with more than $30 billion inflows received in 2018, trailing behind China and India.

However, cash remains king in the Philippines. A survey showed 70% of local respondents said they still prefer cash transactions, claiming that this gives them greater control over their finances. They also added it is easier to trust a person than a digital device.

Money sent home from Filipinos abroad increased for the fourth straight month in May to $2.382 billion, up 13% year on year. This was the fastest uptick in nearly five years according to central bank data.

To date, cash remittances grew by 6.3% to $12.28 billion.

The ADB noted the country’s efforts to boost payment digitization, with the Bangko Sentral ng Pilipinas (BSP) targeting to increase the share of digital payments to 50% of all payments and expand financial inclusion to 70% by 2023.

As of 2017, only 34% of adult Filipinos have a bank account.

The national ID system and the standardized QR code scheme will also help the BSP achieve its targets much faster.

The BSP started seeing more Filipinos using digital payments last year as the coronavirus disease 2019 (COVID-19) pandemic and the lockdown prompted them to adopt contactless transactions.

“The COVID-19 crisis led to an increase in digital transactions, but cash is still predominant. To increase use of digital remittances, a series of recommendations has been developed that could help move people from cash to digital,” ADB said. — Beatrice M. Laforga

How to shop for furniture without testing the sofa

PRIZMIC & Brill Scaled Photo Kipling Desk

A NEW platform called ITOOH is trying to change how you shop for furniture: all online.

ITOOH founders Jules Veloso, Andrew Bercasio, and Enah Baba told BusinessWorld in a phone call last week how they started. Ms. Veloso, co-founder and CEO, was faced with an empty apartment upon arriving in Los Angeles to pursuing further studies. With physical stores closed at the height of the coronavirus disease 2019 (COVID-19) pandemic, she had no choice but to shop online. “To my delight, I was really pleasantly surprised on how easy it is to shop everything online,” she said — at least in the United States. That served as the germ of the idea to bring online furniture shopping to the Philippines.

Ms. Baba added, “When we started this, it had one mission: to make frictionless shopping for everything, anything home.” The group talked about the frustrations they’d had with furniture shopping: long delivery times and a lack of choice, or mistakes like wrong measurements. With the click of a few fingers, the group plans to eliminate all that. For example: their delivery commitments are between five to seven days, and they have taken to measuring everything (even drawer depths and compartments), and providing context to the dimensions against the height of an average Filipino (5’6”, according to their calculations).

Partner brands they have included in the platform include Prizmic and Brill, Rudd Trading, Thomas & George, Sirius Dan, Jed Yabut, and Neu Muri, among others. Some of the brands on the ITOOH website might be familiar to those who attend furniture trade shows around the country. “Most of them — we’re proud to say — are locally made,” said Mr. Bercasio. “We wanted to be able to represent different aesthetics. Most of the established brands, they kind of have just one style, or one design all throughout. I think people have come to realize that it’s okay to not just be one-note.”

Ms. Baba said, “Our goal is to help the industry digitalize. That’s a big hurdle for mom-and-pop brands. They can’t do social media properly, or create their own website. They don’t have access to bringing on board various payment gateways.”

In addition to that, the platform also offers interior design consultancy with firm Grupo Santamaria. “Our vision is to democratize interior design and make it more accessible to Filipinos,” said Ms. Baba. Packages range from P8,000 to P30,000.

The thing is though: furniture is extremely intimate. It cradles your body, supports your weight, and becomes part of your life. Online dating aside, how does one trust something that will rest next to your body when you see merely a picture of it online? While the site offerings account for taste, how does one account for feeling and touch?

For starters, ITOOH is developing 3D and augmented reality for users, as well as employing an online concierge to handle customer questions. On a more practical note, Mr. Bercasio noted: “We went to all their warehouses, all of the showrooms, and really took every photo to make sure we represent [as] close to real fabric, color, and grain.”

He does acknowledge this issue, and credits progress made to changing attitudes after the pandemic. “I think we share the same discomfort. I’m very old-school like that. I think most Filipinos are, especially pre-pandemic.” However, since the events of 2020, “people embraced buying stuff [online], more than food or booking transport. That’s very similar to our goal to really change the mindset of Filipinos.

“Our hope is to really convince the market that they don’t really have to touch it and feel it. but the entire experience can mimic that.”

The ITOOH website is at https://shopitooh.com/. — Joseph L. Garcia

SEC flags more unlicensed investment schemes

Year’s tally mounts with addition of Asiaworks, 247STOCKTRADEFX 

THE Securities and Exchange Commission (SEC) released two separate advisories against the investment schemes of Asiaworks Digital Marketing Services and 247STOCKTRADEFX.

“The SEC Advisories are issued in order to guide the public in making informed [decisions] regarding their investments and to warn all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code (SRC), the Revised Corporation Code, and such other rules and regulation enforced by the commission,” the corporate regulator said.

It has issued eight advisories against unlicensed investment schemes of unregistered entities in July. A total of 55 advisories have been released so far this year.

Asiaworks is said to be founded and led by a certain Ivan Henry Prieto Enrijo. It is a “triple your money” investment scheme, wherein investors are promised a 10% daily revenue in 30 days per subscription.

The entity’s investors are asked to create an account using a referral link or through its website, www.asiaworksco.com, where investors can track their subscriptions. Those who participate in the scheme can also earn via referrals.

“The above-described scheme offered by Ivan Henry Prieto Enrijo is clearly in the nature of solicitation of investments from the public in the form of investment contract. Simply, the scheme is ‘subscribe, wait, and earn,’” the corporate regulator said.

Asiaworks is not registered as a corporation or as a partnership with the commission. However, it has been issued a Certificate of Business Name Registration by the Department of Trade and Industry with Business Name No. 2875993 under Mr. Enrijo.

Despite this, Asiaworks does not have the necessary license to solicit investments from the public as required under the SRC.

As of writing, its website can no longer be reached.

Meanwhile, 247STOCKTRADEFX’s headquarters is said to be based in Liverpool, Australia.

“[It is] soliciting investments in the Philippines without the necessary license and/or authority from the commission through the assistance of its supposed brokers, accounts managers, agents, and/or representatives that [appear] to be using synthetic or fraudulent identities,” the SEC said.

The commission named Blessing Chima, Maryam M. Yau, and Itz Osmaneh as those working for the Australia-based entity. None of its representatives have the needed registration and/or the appropriate license to offer or sell securities to the public.

247STOCKTRADEFX’s investment program “shows indication of a possible Ponzi Scheme,” wherein investments of new members are used to pay the “profits” of earlier investors.

The entity is operating a digital exchange platform in the Philippines without proper registration with the commission, the SEC noted. It is not registered as a virtual asset service provider with the Bangko Sentral ng Pilipinas, and it also lacks the required Certificate of Authority as a Money Service Business.

Names of all those involved in the operations of Asiaworks and 247STOCKTRADEFX will be reported to the Bureau of Internal Revenues to assess appropriate penalties and taxes.

The commission calls on the investing public not to invest or to stop investing in both entities.

Those who recruit anyone to invest in or join unauthorized investment programs may incur criminal liability, the SEC said. Salesmen, brokers, dealers or agents of unauthorized entities may be criminally prosecuted and be fined a maximum of P5 million and/or face 21 years of imprisonment. — Keren Concepcion G. Valmonte

Spike Lee jumps gun at Cannes with Titane Palme d’Or reveal

HTTPS://WWW.CHOPARD.COM/

CANNES, France — Titane, a wildly imaginative film about a serial killer by French director Julia Ducournau, won the top Palme d’Or prize at the Cannes Film Festival on Saturday —  as revealed by jury head Spike Lee ahead of time in a gaffe at the ceremony.

Ms. Ducournau, 37, became only the second woman to win the top award at Cannes.

In a moment of confusion when asked in French to reveal what one of the prizes was, the US film director read off a card and prematurely announced the best movie winner.

“No excuses, I messed up,” Mr. Lee told a news conference after the event. “I’m a big sports fan, it’s like the guy at the end of the game at the foul line, he misses a free throw, or the guy misses a kick.”

It was not the first blooper moment at an awards ceremony: at the 2017 Oscars, musical La La Land was incorrectly announced as best movie, instead of Moonlight.

Ms. Ducournau, 37, became only the second woman to win the top award at Cannes. Her violent film, where the heroine has sex with a car, split critics, with some praising its originality but others put off by its frantic and messy approach.

“Ducournau’s beautiful, dark, twisted fantasy is a nightmarish yet mischievously comic barrage of sex, violence, lurid lighting and pounding music,” critics at the BBC broadcaster said. “It’s also impossible to predict where it’s going to go next.”

Described as a “body horror” movie and based around a character with a titanium plate in her head, the film impressed with its energy.

“I’ve never seen a film in my life…. where a Cadillac impregnated a woman,” Mr. Lee said.

Ms. Ducournau had previously found critical success with Raw in 2016. The only previous female winner of Cannes’ top award was Jane Campion who shared the prize in 1993 for The Piano.

The world’s biggest film festival returned to the French Riviera after a 2020 hiatus due to the coronavirus pandemic in one of the most unpredictable contests in years.

STARS HAPPY TO BE BACK
The event drew stars such as Matt Damon and Sharon Stone to the red carpet, with moviemakers and actors delighted to be back though attendance was down on previous years.

Once the awards were officially announced, other big winners included Leos Carax, picked as best director for Annette, a musical about two artists caught in a twisted love affair.

Hamaguchi Ryusuke and Takamusa Oe of Japan won best screenplay for their tale of heartbreak and loss Drive My Car.

Renate Reinsve won best actress for her role in The Worst Person In The World by Joachim Trier, a modern-day romantic comedy that was a big hit with critics.

Compartment no6 by Juho Kuosmanen, about a woman who embarks on a train journey across Russia, tied with A Hero by Iran’s Asghar Farhadi, which features a prisoner faced with a moral quandary, for the Grand Prix distinction.

Caleb Landry Jones, who starred in Australian film Nitram, won best actor.

The Jury Prize, another runner-up award for best movie, went to two films: Ahead’s Knee by Israel’s Nadav Lapid and Memoria by Thailand’s Apichatpong Weerasethakul. —  Reuters

NLEX targets to start P2-B QC extension by early Sept.

NLEX Corp. is targeting to start the construction of a two-kilometer expressway connecting its Mindanao Avenue toll plaza to Quirino Highway in Novaliches, Quezon City by late August or early September, a company official said.

“We are targeting late August or early September, if we get the approvals required,” Romulo S. Quimbo, Jr., NLEX Corp. senior vice-president for communications, told BusinessWorld in a phone message on July 16.

The P2-billion expressway section is expected to benefit NLEX commuters who “currently face daily traffic gridlock in the congested portions of Mindanao Avenue,” NLEX Corp. President and General Manager J. Luigi L. Bautista said in a recent statement.

The section will be integrated into the future NLEX expansion to C5/C.P. Garcia near Katipunan Avenue.

“We foresee an interconnected tollway network that will be accessible to the west, east, north, and south sides of Metro Manila,” Mr. Bautista said.

The new project is part of the government’s Build, Build, Build program. It is also part of the 11.5-kilometer NLEX C5 Link between Mindanao Avenue, Quirino Highway, Regalado Avenue, Congressional Avenue and C.P. Garcia Avenue in Quezon City.

The extension project will provide an alternate route to the ports of Manila via NLEX Harbor Link all the way to the new Navotas Interchange along Mel Lopez Boulevard, or R-10.

The company said the entire NLEX C5 Link is expected to be used by 45,000 motorists daily and reduce travel time between Mindanao Avenue and Commonwealth Avenue to 10 minutes from the usual 45 minutes.

NLEX Corp. is a unit of Metro Pacific Tollways Corp., itself the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Charging into the age of electro-mobility

The Nissan Leaf is now available in the Philippines. — PHOTO FROM NISSAN PHILIPPINES

9th Philippine Electric Vehicle Summit looks to speed up country’s shift to electric

By Kap Maceda Aguila

THE NINTH edition of the Philippine Electric Vehicle Summit (PEVS) kicks off on Aug. 26. Unbowed by the pandemic, confab organizer Electric Vehicle Association of the Philippines (EVAP) resorts to an online staging anew for a multi-sectoral coming together for the electrification of transportation.

EVAP “envisions a nation wherein the use of electric vehicles is highly promoted, encouraged and supported by its government and the society in order to develop a transportation landscape that is one with the environment ecologically and economically.”

The summit is once again supported by Manila Electric Co. (Meralco) and the Department of Energy (DoE) and is themed “Accelerating the Switch to Electro-Mobility in the Philippines.” The overarching vision is the “fast-tracking (of) electric vehicle adoption in the local transport sector in line with the government’s medium-term goal of attaining a low-carbon economy.”

Said EVAP President Edmund Araga, “We need to step up our efforts to achieve our goals for rapid EV deployment, and to do this, government and private sectors need to collectively reaffirm their commitment to do so.”

Last week, organizers held a preliminary press conference to drum up support for — as well provide an outline of what can be expected from — the PEVS. Mr. Araga said that among the expectations is the “reaffirmation of commitment from key representatives of government agencies, from academe, from civil society in pushing transition of a sustainable transport system.”

We wait with bated breath for the much-anticipated and hoped-for approval at the Congressional level of the Electric Vehicles and Charging Stations Act authored by Sen. Sherwin Gatchalian. SB 1382 has already been okayed by the Upper House last May.

Once passed into law, the measure, according to a Senate press release, “will lessen the transport sector’s dependence on imported crude supply, a sustainability solution that will also be beneficial to the environment as it will have zero gas emission.”

Not only that, it espouses EVs while giving impetus to our “manufacturing sector because what is incorporated in the bill is not only the promotion of the use of EVs but also the development of the EV industry, not just the vehicle itself but the whole ecosystem as it includes the charging stations, batteries, other parts and components.”

Aside from the lessening (direct) dependence on fossil fuels, the wider adoption of EVs also spells relief for our embattled lungs. Meralco Vice-President and Chief Sustainability Officer Raymond Ravelo said that this is doubly appropriate as respiratory health has become a key focus area in this age of the pandemic. He additionally stressed the importance of the PEVS as a “platform for knowledge sharing, policy dialogue, and platform for identifying synergies… This is a team game; we cannot go at it alone. We need earnest effort and collective action.”

Nissan Philippines, one of the event sponsors and participants, recently introduced in a big way the global EV model Leaf. “It’s a very big milestone,” underscored Nissan Philippines Assistant General Manager and Head of Communications Dax Avenido. “And this is the first EV Summit since (making the Leaf available).” Embodied in the model are Nissan’s sustainability aspirations.

“It ties in with our campaign for zero emissions, and the Leaf as a partner in sustainability,” Mr. Avenido added.

For his part, Department of Energy-Energy Utilization Management Bureau Director Patrick Aquino said, “We’ve always said that the future is electric, and we will be supporting electric vehicle charging stations — and the infrastructure bill.” What seems to be the tipping point that will enable a quicker, more widespread transition into electric (or at least electrified) vehicles appears to be the knocking down of barriers of cost.

Fiscal relief and other incentives will effectively turbocharge the industry until the traditionally higher cost admission for EVs gets to the level of regular internal combustion engine-powered automobiles. “The bill will also ensure an expedited registration procedure for EV users,” said Sen. Gatchalian in a release. Parity can also happen more quickly as the price of EV batteries plummet with time and more polished manufacturing practices.

To be fair, OEMs have been separately moving on their own in varying speeds toward electrifying their vehicle portfolios — largely as a function of the intent of their global headquarters. Brands such as Volvo, Porsche, Jaguar, BYD, Mitsubishi, Hyundai, and more have made electrified vehicles aspirational parts of their portfolio. And when we say aspirational, we do not mean in a price-prohibitive sense. But EVAP has been doing sterling groundwork on multiple fronts by engaging all relevant stakeholders — including local and national government, and legislature — to keep electrification top of mind and never out of sight. The PEVS is certainly a critical ingredient to its success thus far.

Toyota Motor Philippines (TMP) introduced the now-iconic Prius hybrid more than a decade ago, but the acquisition cost — sans relief from government — didn’t make it a blockbuster hit. Certainly, Filipinos weren’t too keen then about electrification, either.

That is certainly not the case now as Toyota is offering better-priced hybrid options that allow thoroughly guilt-free mobility at more reasonable prices. Still, kudos to TMP for daring to pioneer despite the hurdles of being the first mover. But I digress. Perhaps you can see TMP reaping the fruits of its EV labor/information drive in the success of its luxury brand Lexus in selling hybrids.

Just to give you an idea from recent numbers, out of 269 units sold from January to June this year, Lexus Philippines (through Lexus Manila) delivered 43 hybrid units to customers. “That’s around 16%. But in the case of the IS, hybrid versus regular gasoline models the proportion can vary from 30% to 50%,” shared Lexus Manila President Raymond Rodriguez with “Velocity.”

Mr. Araga said to this writer, “We’re waiting for the approval of the bill. If you give companies the right incentives, we can expect more (electrified) models.”

For Mr. Ravelo, it’s not a matter of if but when. “Electric vehicles are inevitable,” he declared.

Style (07/19/21)

Avon develops gender-free underwear

ACCORDING to an international study in 2015 by the United Nations for LGBT Equality, 10% of the world’s population identify as part of the LGBTQ+ community. This encompasses the full spectrum of the community including non-binary individuals who do not fall into the traditional binary masculine and feminine standards. This diversity is yet to be fully reflected by the garments industry, with gender-neutral options still sparse among fashion retailers, even more so when it comes to intimate apparel. Avon is stepping into the gap with its first gender-free intimate apparel line, the Avon Limitless collection, which is designed with breathable, quick-dry materials and a universal fit. “If we can stretch our support in terms of sizes, breast shapes, and life stages, what’s stopping us from stretching support to be inclusive of gender identity?” says Avon Marketing Director, Anna Garces. “Avon has been producing high-quality, innovative, and affordable creations for Filipinos and Filipinas for decades. It’s only right to expand our years of expertise on intimates to support the needs of all gender identities and sexual orientations.” The Limitless collection provides gender-neutral silhouettes that can literally be worn by everyone with breathable fabric that gives a soft four-way stretch in every wear. The Andy 2-in-1 Ultra-stretch boxers come in black and gray variants, designed with a double layer panel on the crotch area so it can fit anyone with or without a penis. On the other hand, the Andy Ultra-stretch Support Top can be used as a minimizer, a molded bra, or even just a casual top with removable molded cups and expandable hook and eye, so anyone can sport it with or without breasts. The Limitless collection can be purchased online at avonshop.ph or through Avon representatives.

Tommy Jeans goes red, white, and blue for summer

THE SUMMER 2021 Tommy Jeans collection blends iconic red, white and blue color blocks with a modern tie dye twist across denim and knit categories. The collection features raised embroidered graphics and rich bold textures on statement pieces. This season, Tommy Jeans continues to push for sustainability in denim by repurposing deadstock fabrics to deliver contemporary yet iconic styles. In the Philippines, Tommy Jeans are available at Tommy Hilfiger stores at Central Square in Bonifacio High Street Central, Alabang Town Center, Ayala Center Cebu, Marquee Mall, TriNoma, Mall of Asia, Greenbelt 5, Newport Mall, Rustan’s Makati, Rustan’s Shangri-La, Tommy Jeans Robinsons Place Manila, Tommy Hilfiger Rockwell, and online at Trunc.ph, Rustans.com, Zalora, and Lazada.

NBAStore.com.ph carries Space Jam: A New Legacy collection

NBAStore.com.ph, the official online NBA Store in the Philippines, will carry official merchandise from the Space Jam: A New Legacy movie starring four-time NBA Champion LeBron James. NBAStore.com.ph will offer a selection of Space Jam: A New Legacy merchandise, including footwear and headwear from Nike and New Era respectively. The following Nike shoes are available: LeBron 18 Low “Bugs vs. Marvin” (P8,295); LeBron 18 Low “Sylvester vs. Tweety” (P8,295); and LeBron 18 Low “Wile E. vs. Roadrunner” (P8,295). Meanwhile, New Era offers Los Angeles Lakers x Space Jam 9FIFTY White and Los Angeles Lakers x Space Jam 9FIFTY Blue hats for P2,295.

UNIQLO launches T-shirt design tilt

Global apparel retailer UNIQLO announces the launch of the UT Grand Prix 2022 T-shirt design competition. Entrants from around the world can submit designs using a T-shirt as a canvas to freely express ideas through graphics and messages. The theme for this contest is Peanuts, the comic strip first published in the US in the 1950s, marking the 100th anniversary of the birth of its creator, Charles M. Schulz. The judging panel for the competition features representatives from the Charles M. Schulz Museum and Charles M. Schulz Creative Associates. UNIQLO is seeking designs that freely express the world of Peanuts through such characters as Charlie Brown and Snoopy as well as the storylines that touch on life and human nature. The Grand Prize winner will receive $20,000. Grand prize and second prize winners will also be invited for an internship at Charles M. Schultz Creative Associates. Winning designs will be featured in UNIQLO’s 2022 Spring/Summer collections and sold at UNIQLO stores worldwide. Entries are being accepted until Aug. 31. Entry details can be found on the special UTGP 2022 site (https://www.uniqlo.com/utgp/2022/ph/).

Home items in Casa de Memoria’s auction

AT CASA de Memoria’s Tercero auction — now live online until July 31 — features many items to elevate the home, from paintings and chandeliers to furniture and more. Among the highlight lots at the auction are intricate lamps, some of which have been refreshed by Michelle Lao of Solano. These include Artepiu Este Gilt Ceramic Lamp with Peony Motif, a late 20th century Italian ceramic lamp, having gilt field painted with peonies (Lot 34, price starts at P25,000) and Artepiu Este Gilt Ceramic Lamp with Oriental Male Figure, a late 20th century Italian ceramic lamp, having gilt field painted with Oriental male figure amid plants (Lot 36, P20,000). There are chairs like a pair of 19th century Portuguese mahogany fauteuils in Louis XV style upholstered with settees with a toile hunting scene by Monchet Olives (Lot 63, P40,000 and a “lips” style chair (Lot 61, P15,000), and a pair of early 20th century Spanish barber’s armchair seats with soliya seats and backrests by Daniel Acha (Lot 1, P160,000). To explore the auction pieces online, visit bit.ly/CasaDeMemoriaOnline. For more information, visit www.casadememoria.com, call 8253-3994, or e-mail hello@casadememoria.com.

Hogan’s Autumn 2020/21 now available

HOGAN’S has released its Fall/Winter 2020 collection featuring  all-new styles — the Hyperactive Sneakers and Iconic Interaction Daddy Sneakers for Women and the Interaction Sneakers and classic H365 Sneakers for Men. In the Philippines, Hogan is exclusively distributed by Stores Specialists, Inc., and is located at Shangri-La Plaza.

Vans SpongeBob SquarePants shoe collection

SHOE brand Vans has collaborated with Nickelodeon’s SpongeBob SquarePants on a range of Classic footwear for fans of all ages. Key piece from the Vans x SpongeBob SquarePants collection include: Old Skool checkerboard emblazoned quarter panel featuring SpongeBob and Gary, hidden amongst the checks, and finished with a leather yellow Sidestripe and “Off The Wall” written in SpongeBob font; Spongebob IMAGINAAATION; SpongeBob 124 Conch Street (For toddlers); Spongebob Black/Blue Bikini Bubble; and AlohaBob. The Vans x SpongeBob SquarePants in-line collection for men, women and children is now available at Vans Stores at Greenbelt 3, SM Megamall, Glorietta 3, Ayala Cebu, Alabang Town Center, Festival Mall, UP Town Center, SM North EDSA, and Market! Market!

Pinay wins Best Sustainable Design at Asia Young Designer Summit

PHILIPPINE representative and Interior Design student Margaret Therese Hagad bagged the Best Sustainable Design title at the regional finale of the prestigious Asia Young Designer Award (AYDA). The De La Salle-College of Saint Benilde undergraduate competed against participants from nine other countries and clinched the title for Interior Design for the 2020 Nippon Paint Asia Young Designer Awards (NYPDA) Philippines. Her adviser Benildean instructor Dr. Karol Ann Antonio was likewise named Best Mentor. Entitled “Bagasse Mountain Resort,” her winning entry introduces a sanctuary of wilderness and wellness equipped with sustainable, corporeal and human-centered design considerations. She chose Negros Occidental, the Sugar Capital, as the location of the project and explored how bagasse, the dry pulpy fibrous residue from crushed sugar cane stalks, may be used as partial replacement for cement. AYDA, with the help of its roster of internationally acclaimed industry experts, likewise recognized Dayana Aripin and Evva Lim Yee Fah from Malaysia with the Asia Young Designer of the Year Awards for Architecture and Interior Design, respectively. Neha Harish from India with the Best Sustainable Design title for Architecture, while the Best Design Impact recognitions were granted to Eldon Ng Yew Keong from Singapore (Architecture) and Mai Ngoc Anh from Vietnam (Interior Design). The Nippon Paint Awards were given to Sri Lankan representatives Ironi Padmaperuma (Architecture) and Dilik Abeyakoon (Interior Design), while honorary Mentions went to Mahek Khawaja from Pakistan and Marietta Stefani from Indonesia (Architecture) and Suangchanok Wongpollakrit from Thailand (Interior Design). Founded in 2008, AYDA has provided a platform for future-proof ideas and has since gathered thousands of young creators from Bangladesh, China, Hong Kong, India, Indonesia, Iran, Japan, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Turkey and Vietnam.

foodpanda shops now feature Watsons

IT’S NOW more convenient to get skin basics and other beauty essentials from Watsons as foodpanda shops now includes its extensive catalogue. Choose from the wide array of skin care products, hygiene needs, and wellness aids by browsing on the foodpanda shops section and have these delivered to your doorstep in as fast as 20 minutes. Save on Watsons products by availing of the 10% off promo on a minimum order of P499.

Loewe announces HyunA as global ambassador

LOEWE has announced that South Korean singer-songwriter and rapper HyunA is the new global ambassador for the house. In a statement, Loewe Creative Director, Jonathan Anderson says, “I am thrilled to welcome HyunA to the Loewe family. Very much looking forward to this exciting partnership and working closely together.” The South Korean solo female singer HyunA has been captivating global audiences since her debut in 2007. Her latest album is I’m Not Cool, and its eponymous title track, released in January, has topped the charts of major music streaming platforms in Korea, with the album itself topping iTunes’ world wide album chart.

Rates of T-bills, T-bonds likely to inch up further

BW FILE PHOTO

RATES of government securities on offer this week may rise further as the market turns cautious after Fitch Ratings revised its outlook for the Philippines and the detection of local transmissions of the Delta variant of coronavirus disease 2019 (COVID-19).

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

On Wednesday, the BTr will offer P35 billion in fresh 10-year Treasury bonds (T-bonds). The T-bond auction was moved from the initial Tuesday schedule as July 20 is a regular holiday in observance of Eid’l Adha.

Two bond traders expect T-bill yields to move sideways or higher by up to 5 basis points (bps).

For the 10-year bonds, the first trader sees its coupon settling between 3.875% and 4.125%, while the second trader gave a narrower forecast range of 3.875% to 4%.

“Market is still very much armed with liquidity and still opts to place in government securities even for longer tenors to reach for yields,” the first trader said via Viber.

Investors will likely continue to price in Fitch Ratings’ revised outlook for the Philippines in the upcoming auctions, the trader added.

Fitch last week maintained its investment grade “BBB” credit rating for the Philippines but revised its outlook to “negative” from “stable” due to the impact of the prolonged coronavirus pandemic.

The “negative” outlook means Fitch may downgrade the Philippines’ credit rating if it reverses reforms or departs from the prudent macroeconomic policy framework that leads to continued higher fiscal deficits. A weaker macroeconomic outlook over the medium-term and “diminishing policy credibility” may also lead to a downgrade.

Fitch has kept the Philippines’ rating at “BBB,” which is one notch above the minimum investment grade, since December 2017.

Meanwhile, the detection of the first cases of local transmissions of the Delta variant of COVID-19 in the country will also affect yield movements this week, according to the trader.

The Health department on Friday reported 16 new Delta variant infections, with 11 of these locally transmitted. This brought the country’s case count for the highly infectious variant to 35.

It also reported 6,040 new COVID-19 infections on Saturday, bringing active cases to 47,257 so far.

The first trader said local yields will also take their cue from the recent dovish speech of the US Federal Reserve Chairman Jerome Powell at a congressional hearing, where he said the US jobs data was “still a ways off” from the progress they are aiming for before they can reduce central bank support for the economy.

The BTr last week fully awarded the P15 billion in T-bills it auctioned off even as rates inched up across the board. The short-term securities attracted combined tenders worth P42.086 billion.

Broken down, it borrowed the programmed P5 billion via the 91-day papers at an average rate of 1.068%, up from the 1.044% seen during the July 5 auction.

The Treasury also raised P5 billion as planned via the 182-day T-bills. The six-month papers fetched an average rate of 1.384% from 1.351% previously.

Lastly, the government made a full P5-billion award of the 364-day securities at an average yield of 1.593%, higher than the 1.568% quoted for the tenor the week prior.

Meanwhile, the last time the BTr offered 10-year T-bonds was on June 22 when it raised P35 billion as planned from the reissued papers with a remaining life of five years and 10 months.

Total bids for the tenor hit P65.091 billion at that auction, higher than the P50.25 billion in tenders seen when the bond series was last offered on March 9. The notes were quoted at an average rate of 3.185%, down from 3.732% previously.

At the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.162%, 1.413%, and 1.612%, respectively, while the 10-year T-bonds fetched a yield of 3.9097%, based on the PHP 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

Dole plans Philippine expansion

DOLE Sunshine Co., the food and beverage company with global reach that grows most of its pineapples in the Philippines, is planning to expand its operations in the provinces while increasing its investments to include growing other fruits and producing biofuel from crop waste.

Christian Wiegele, global president of Dole Sunshine’s fresh produce group, said in an online interview with BusinessWorld on July 14 that the company plans to increase its farm production area in the country. He declined to disclose specific figures.

“We are working together with our local teams, local municipalities, and local partners to increase our hectares for pineapples. The same goes for other selected produce. We definitely plan to continue investing and growing our business here in the Philippines across the whole brand portfolio,” Mr. Wiegele said.

Mr. Wiegele said the firm had been growing its produce across more than 30,000 hectares of farmland that cover areas in Davao, General Santos City, Bukidnon, and Cagayan de Oro in Mindanao, and a small farm operation in Luzon.

Dole provides direct and indirect employment to 40,000 employees, he said, adding that the majority of the company’s overall output comes from the Philippines, particularly for bananas and pineapples for export to other countries. He did not give exact production numbers.

“In terms of pineapple production, it is definitely much more than half. The majority of our pineapples are grown in the Philippines and are sold as fresh produce or packaged into processed products out of the Philippines. For bananas, it is definitely more than half,” Mr. Wiegele said.

“The main export markets of Dole’s fresh produce grown in the Philippines include Malaysia, Hong Kong, Singapore, China, Japan, New Zealand, Saudi Arabia, and the United Arab Emirates,” he added.

In terms of investments, Mr. Wiegele said Dole is preparing for the launch of a new packing house in the northern part of Mindanao as part of efforts to reduce food waste during the packing process, together with the growing of other fruits such as papaya and avocado.

He added that other planned investments of the company include employee training, biofuel, artificial intelligence technology, and drones to help Dole move forward with agricultural technology.

“There are some exciting plans on repurposing our waste and some tangible benefits we are investing into biofuel, which will repurpose banana waste, pineapple waste into biofuel,” Mr. Wiegele said.

Further, Mr. Wiegele said the company also allocated a significant amount for capital expenditure this year but did not provide figures.

“It is definitely a significant amount. It’s definitely much more than $10 million dollars. It is significantly more than last year,” he said.

Moving forward, Mr. Wiegele said the company is looking at double digit revenue growth and is expecting positive momentum despite the pandemic.

He added that there is enough demand in the markets around the world for healthy nutrition.

“One of our commercial strategies is not only to grow our products in the Philippines, but also to offer those products to Philippines’ operations. That is one of the opportunities that we have, not only to grow and export, but also offer these products to the Philippines itself as a market, a very important market in Asia,” Mr. Wiegele said. — Revin Mikhael D. Ochave

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