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Term limit for lenders’ independent directors non-extendable, BSP says

THE BANGKO SENTRAL ng Pilipinas (BSP) has reminded banks to comply with the maximum nine-year cumulative term limit for independent directors of BSP-supervised financial institutions, which follows previous issuances on corporate governance and reputational risk management.

In Memorandum No. M-2021-025, the central bank highlighted the provisions of both the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions which gives independent directors a maximum term of a cumulative period of nine years.

“After which, the independent director shall be perpetually barred from serving as independent director in the same BSP-supervised financial institution but may continue to serve as its regular director,” the circular said.

“All BSP-supervised financial institutions are hereby advised that pursuant to Monetary Board Resolution No. 371 dated March 31, 2021, the BSP shall not approve requests for exemption from the said term limit for independent directors,” it said.

BSP Deputy Governor Chuchi G. Fonacier said they have received “quite a few requests” for term extensions.

“The BSP would like to emphasize that the term of an independent director should only be for a maximum of nine years (cumulative). After having served for that period of time as an independent director, that person may no longer be considered as really independent,” Ms. Fonacier said in a Viber message on Sunday.

An independent director is a person, “who, apart from his fees and shareholdings, is independent of management and free from any business or other relationship which could, or could reasonably be perceived to, materially interfere with his exercise of independent judgment in carrying out his responsibilities as a director,” based on Memorandum Circular No. 16 Series of 2002 of the Securities and Exchange Commission.

Aside from being allowed to become a regular director after their nine-year term in a bank, an independent director can also serve the same function for other lenders, Ms. Fonacier said.

“They can serve as independent director for other banks after serving the maximum term of nine years in a certain bank provided they qualify as an ‘independent director’ for that bank,” she noted.

The central bank earlier released Circular No. 1112 which tightened policies and control measures for hiring and performance management of bankers.

Meanwhile, Circular 1114 issued last week requires banks to report “reputational risks” that could be caused by stakeholders, customers and bank employees, which could spill over and adversely impact earnings, capital, and liquidity.

“It is the thrust of the Bangko Sentral to promote good corporate governance and effective risk management systems in the financial industry,” the BSP said.

“It is in this light that the Bangko Sentral issued regulations that institutionalize control measures to highlight accountabilities, strengthen checks and balances, and ultimately protect the interest of customers and depositors,” it added. — Luz Wendy T. Noble

US gymnast Simone Biles joins Gap’s Athleta, ends Nike deal

US gymnast Simone Biles — FACEBOOK.COM/ATHLETA
US gymnast Simone Biles — FACEBOOK.COM/ATHLETA

FOUR-TIME Olympic gymnastics champion Simone Biles has signed up with Gap, Inc.’s Athleta brand for a new apparel partnership, ending an almost six-year deal with Nike, Inc.

Ms. Biles, the most decorated gymnast in world championship history at age 24, said in an Instagram post on Friday she wanted to partner with a brand that shares her “passion to help girls rise and own their limitless potential.”

“They are committed to diversity and inclusion, which was really important for me to see in a partner,” she said.

The move is a blow to Nike, which tried for years with mixed success to expand in the lucrative market for women’s sports apparel, launching yoga, plus-size and maternity lines.

“What Nike have undersold — or at least under-monetized — in the past is womenswear,” said Michael Faherty, a portfolio manager at Adidas and Nike investor Seilern Investment Management. “You only have to look across at Lululemon to see the excellent growth they’ve been able to generate in the womenswear space.”

As it competes with Lululemon and Under Armour, Nike has spent millions cultivating relationships with Ms. Biles and other major athletes, including Serena Williams and Naomi Osaka. These deals have helped Nike’s womenswear sales growth outstrip that of its other brands for the past eight quarters.

“We will continue to champion and celebrate all athletes,” Nike said in a statement, confirming its contract with Ms. Biles has ended and wishing her “the very best.”

Athleta, founded in 1998 as a brand for female athletes, said it plans to co-create an activewear line with Ms. Biles and design other signature products.

The brand has also pledged to support Ms. Biles’ post-Tokyo Olympics gymnastics tour that she is planning to mount herself, rather than the usual tour backed by governing body USA Gymnastics, according to the Wall Street Journal.

She is not the first Nike-sponsored sports person to join Athleta. In 2019, six-time Olympic champion Allyson Felix signed up with the Gap-owned brand after penning an opinion piece in the New York Times in which she said she faced potential pay cuts from sponsors including Nike for having children.

Nike later committed to not financially penalize pregnant athletes. The company has also made a name for itself for taking a stand on social issues, fighting against racial injustice and showing solidarity with some protesting athletes. — Reuters

The race to get the power industry ready for imported LNG

By Angelica Y. Yang, Reporter

THE TRANSITION to imported natural gas was dictated by the impending depletion of the Philippines’ only indigenous provider of the resource, the Malampaya project. Malampaya provides fuel to natural gas-fired power plants in Batangas, which account for around 30% of the Luzon grid’s power needs. But with the field’s commercially viable reserves expected to run out by 2024, the power industry is racing to build out the infrastructure needed to bring in the gas and keep the power plants running.   

As of February, at least six firms have expressed interest in setting up liquefied natural gas (LNG) terminals, either onshore facilities or floating storage regasification units (FSRU), which are needed to transform LNG into a form that power plants can use.

One of the issues that has turned up is how the LNG import sub-industry is to be regulated, including overarching concerns about the Philippine market’s general openness — or lack thereof — to foreign investment.

Batangas Clean Energy, Inc. (BCE) President Yari A. Miralao noted that anyone who wants to build an LNG terminal has to deal with the “lack of a regulatory framework to govern and incentivize this new industry; legal and regulatory constraints for foreign investors; the scarcity of good sites to build a facility, and poor infrastructure to deliver and distribute the natural gas to end-users.”

“Despite these headwinds, BCE recognizes the Philippine government’s efforts to address these issues and believes that conditions will improve going forward,” Mr. Miralao said in an e-mail.

BCE, a joint venture between Lucio C. Tan, Sr. and US-based Gen X Energy, is seeking to develop a P82.5-billion land-based project in Batangas, where natural gas plants in Luzon are clustered because the province was the landing point for gas extracted from the Malampaya field in northern Palawan.

According to its environmental impact statement, the project comprises an integrated LNG import terminal and 1,200-megawatt combined-cycle gas turbine power project.

The BCE project currently holds a notice to proceed (NTP) issued by the Department of Energy (DoE), a key milestone before construction.

PROPOSED MEASURE
Much of the LNG infrastructure industry’s hopes for regulatory clarity have been pinned on a piece of legislation, the proposed Midstream Natural Gas Industry Development Act.

DoE Assistant Secretary Leonido J. Pulido III said the urgency of having proper regulation in place stems from the view of prospective investors that the Philippines is a small market for LNG, which could encourage the development of monopolies.

His wish list for the midstream natural gas industry bill includes “provisions for third-party access in the use of the LNG infrastructure (to) increase competition in the market.”

The midstream natural gas industry bill covers activities like the aggregation, supply, import, receipt, unloading, loading, processing, storage, regasification, transmission and transportation of natural gas in original or liquefied form.

“The measure institutionalizes a regulatory and legal framework for the industry, which is important for investors because it gives them a peace of mind that there are sufficient protections for them to recoup their initial investment… We’re also hoping that (the bill) would incentivize industries to shift to the use of natural gas,” Mr. Pulido said by phone.

Ideally, he said the bill should strike a balance between enforcing industry best practices and enabling free-market solutions.

“Too much regulatory oversight may also lead to issues with investors coming in. At the same time, too little regulatory oversight could lead to anti-competitive behavior so we’re hoping to find a balance between those principles,” Mr. Pulido said.

Senator Sherwin T. Gatchalian, who chairs the Senate Committee on Energy, said that the measure is configured to exert a light regulatory touch, while letting the private sector take the lead in developing the LNG industry.

“We will only regulate the competition aspect of those plants, because we want to make sure that there is robust competition, and allow third-party access,” Mr. Gatchalian said in a video call.

The proposed regulations, he said, will cover import terminals, regasification facilities and pipelines.

“The best case is to get the terminals and regasification plants up and running prior to the depletion (of Malampaya). We need to get this law up and running soon because it gives the players the framework on how to proceed with their businesses,” Mr. Gatchalian added.

The consequences of not having enough LNG importing facilities to make up for the lost Malampaya gas, Mr. Gatchalian said, include an “electricity price crisis.”

“What will happen is that these plants will (use) gas condensate or oil, but it will have a very severe impact on pricing so the prices will go up and it will be passed on to us. It’s imperative that we get imported LNG before the depletion or else we will be faced with higher electricity costs,” he said.

University of the Philippines Diliman energy engineering professor Nicanor S. Villasenor III said the development of LNG import terminals addresses the immediate need for power, but much has to be done to ensure energy security.

“With Malampaya, more or less, we have some good level of energy security because we’re sourcing gas from our territory. But when you’re importing the fuel, it becomes a problem… As far as energy security is concerned, this is imported fuel. If anything happens globally along the supply chain, we can be (vulnerable) in terms of prices,” Mr. Villasenor said.

CLEANER THAN COAL?
Mr. Pulido said that the DoE advocates for natural gas since it is considered a “clean alternative to coal and a bridging fuel to (the future expanded use) of renewable energy (RE).”

He said that RE sources are intermittent by nature, but natural gas is more capable of addressing “baseload” demand — the portion of the generation mix that needs to be reliable and always on, as opposed to “peaking” — energy sources that are tapped when baseload capacity is exceeded.

“The beautiful thing about the value proposition of natural gas is its flexibility. You can easily adjust the amount of power that you need to balance the grid and that’s why it’s classified as mid-merit power. It can be baseload, and it can be used for peaking purposes,” he said.

Center for Energy, Ecology, and Development Executive Director Gerry C. Arances said however that natural gas is no alternative to coal, which the government recently declared a moratorium on with regard to new power plant construction.

“The turning of the tide against the coal industry seems to be giving the DoE an excuse to flaunt gas as the ready alternative and brand it as ‘clean energy.’ In fact, (we) refer to it as ‘fossil gas,’ if only to remind proponents that gas is but another obstacle to the reduction of greenhouse gas emissions required by the climate crisis,” Mr. Arances said in an e-mail.

He said that although natural gas emits up to 60% less carbon dioxide compared with a new coal plant, using the former “did not make it any better” than coal.

“Like coal, every stage of electricity production from fossil gas — from its extraction, transportation, to combustion — gives off pollutants that contaminate host environments and trigger health problems among communities exposed to it. It, too, is finite and thus vulnerable to fluctuations in supply and demand, unlike RE,” Mr. Arances said.

The latest draft of the National Renewable Energy Program, which is scheduled for a public hearing, currently gives natural gas a key role in accelerating the development of renewables.

National Renewable Energy Board Chairperson Monalisa C. Dimalanta has projected “an increase in RE share… supported by higher flexibility in the system coming from natural gas plants all the way to 2030, with a slight decline by 2040.”

SC affirms MWSS exemption from real property taxes

THE Supreme Court (SC) ruled that the Metropolitan Waterworks and Sewerage System (MWSS) is exempt from real property taxes by virtue of its being a “government instrumentality vested with corporate powers” as provided by law.

The cited Executive Order 596 of then-president Maria Gloria M. Macapagal-Arroyo and Republic Act No. 10149 or the Government-Owned and Controlled Corporation Governance Act of 2011.

In the High Court’s decision dated on Jan. 13 and made public on March 19, the SC reversed the decisions of the Court of Appeals dated June 3 and Dec. 11, 2014 that MWSS was liable to pay the Pasay City government for real property taxes worth P166,629.36 for taxable year 2008.

“The real properties of the [MWSS] located in Pasay City are declared exempt from real property tax,” the court said in its 13-page decision.

The SC further voided all other tax assessments issued to MWSS. It added that its decision does not stop Pasay City from collecting the said real property taxes from the private concessionaires of MWSS.

The MWSS has a concession agreement with Maynilad Water Services, Inc. for Metro Manila’s west zone that includes Pasay City.

The SC further said that the ruling does not automatically grant MWSS refunds of its earlier real property tax payments as the agency has to file a written claim for refund with the city treasurer within two years of the SC decision according to Section 253 of the Local Government Code of 1991 to do as such. — Bianca Angelica D. Añago

TESDA commits to organizing more organic farms, community gardens

PHILSTAR

THE Technical Education and Skills Development Authority (TESDA) said it hopes to organize more mini-organic farms and community gardens to help address the country’s food security issues.

TESDA Director General Isidro S. Lapeña said in a statement over the weekend that the program seeks to ease the threat of food shortages during the coronavirus disease 2019 (COVID-19) pandemic.

“Agriculture is not limited to the rural and far-flung areas. We are pursuing agriculture to achieve food sufficiency in all areas of the country, including cities,” Mr. Lapeña said.

“Growing one’s own food is among the best approaches to help the country achieve food security,” he added.

Mr. Lapeña has signed a memorandum ordering all TESDA training centers to build their own mini-organic farms to encourage the community to grow its own food. TESDA estimates that there are currently 161 mini-organic farms nationwide.

Meanwhile, TESDA is also inviting the public to undergo training in agriculture.

Recently, TESDA announced that it is set to offer a training program in drone operation for agricultural personnel. Graduates of the program can be employed as ground support staff, junior drone pilots, and senior drone pilots.

Uses of drones in agriculture include evaluating soil conditions, determining suitable areas for planting, fighting infection and pests, spraying, crop surveillance, and livestock monitoring. — Revin Mikhael D. Ochave

Sign of T-Cross

Volkswagen Philippines reenters the SUV category with the T-Cross. — PHOTO FROM VOLKSWAGEN PHILIPPINES

Volkswagen Philippines is dotting the i’s and, well, you know, with its coming crossover

By Aries B. Espinosa

AFTER MONTHS of waiting for the formal public introduction of Volkswagen Philippines’ first global crossover, the announcement of a date finally came during an online discussion with the motoring media last April 21: The subcompact SUV T-Cross would be formally launched this May 26.

This early, however, Volkswagen Philippines encourages the motoring public to already make reservations in order to enjoy the introductory prices and a sizeable discount.

One can sense the eagerness of the folks at Volks to push the T-Cross as aggressively as they could in the local market. One reason is that the T-Cross has had a two-year head start elsewhere on the planet. The crossover debuted in 2018, and sales formally began the next year, as production went full swing in Volkswagen’s three manufacturing hubs in Brazil, Germany, and China. By 2020, the T-Cross made its initial appearance in Asia via India, which helped propel the vehicle to a landmark 300,000 units in sales across 55 countries. The world’s second most populous nation also became the T-Cross’ fourth manufacturing hub.

Another reason is that the T-Cross may yet be Volkswagen Philippines’ long-awaited gust of wind propelling it out of the sales doldrums where it has been stuck for the past couple of years — no thanks to the less-than-inspiring market performances of its China-sourced models and the ongoing pandemic. The T-Cross brings a heaping of good repute to the table, as it comes loaded with awards from international auto and media organizations in the United Kingdom, Ireland, Germany, Brazil, and South Africa.

Volkswagen Philippines says it’s leaving nothing to chance in its debut of the T-Cross, making sure that the vehicle takes off on the right gear in the local market. Its president Felipe Estrella III made this crystal clear during the discussions. “The T-Cross is a vehicle that will be ushering in the revival for the Volkswagen brand in the Philippines. We are excited because it is a subcompact SUV, and as we all know, the Philippines has gone quite SUV-happy. So, we expect to attract the attention of the Filipino automotive consumer,” he said.

To this end, the Ayala-backed distributor has not only brought in the T-Cross variants it perceives as perfect matches to local market preferences, but also sweetens the deal in SRPs and after-sales perks.

Two T-Cross variants will debut on May 26 — the 180 MPI AT S and the 180 MPI AT SE, both powered by a 1.5-liter engine with six-speed Tiptronic AT capable of generating maximum power output of 113ps and 145Nm of torque, which Volkswagen Philippines claims would result to optimum fuel efficiency while providing satisfying power for city or countryside driving.

The SE is endowed with additional or upgraded features, such as leather seats, LED headlights and taillights, 17-inch alloy wheels, panoramic sunroof, six air bags, autonomous emergency braking, and a 9.2-inch infotainment monitor with Apple CarPlay and MirrorLink.

Apart from its trendy exterior design and interior layout that reveal its intended target market of young, upwardly mobile or accomplished urban professionals, the T-Cross’ other come-on (or “come-in”?) is its generous space. Despite being classified as a five-seater subcompact SUV, the T-Cross’ long wheelbase of 2,651mm (the longest in its class) offers 329 liters of rear luggage space, or up to 1,319 liters with the rear seats folded.

That amount of breathing room has also been offered in the SUV’s after-sales services. The day’s deep dive into the T-Cross eventually fathomed the scope of after-sales perks, especially the cost of scheduled periodic maintenance services (PMS). Like the rest of Volkswagen’s stable of vehicles, the T-Cross would need only a once-a-year trip to the dealership for scheduled PMS. This, Volkswagen Philippines’ after-sales people stressed, would be around 40% more affordable compared to its segment competitors for a normal five-year duration of ownership.

When “Velocity” asked Volkswagen Philippines to translate that to actual cash savings, its after-sales estimated that a once-a-year PMS would “figure in the P12,000-to-P15,000 range.” This would be on top of the warranty coverage of three years, or 100,000 km (whichever comes first); spare parts warranty of two years, and; service quality consistent with Volkswagen standards across the world.

The online media discussion culminated with the price reveal of the T-Cross variants. The MPI S would be offered at P1.098 million, while the MPI SE would be pegged at P1.198 million. Like what was said at the start, these introductory prices, plus a P30,000 discount on both variants, would be good only for those who reserve their T-Cross units before the market introduction on May 26.

After that, buyers can only pray that this world-renowned and multi-awarded global SUV won’t go out of sight of the crosshairs of their budgets.

SM Prime investors take profit as gloomy prospects linger

BW FILE PHOTO

THE ongoing economic uncertainty brought about by the coronavirus pandemic prompted investors of SM Prime Holdings, Inc. to take profit, making it the 10th most actively traded issue last week.

A total of 24.68 million SM Prime shares worth P875.36 million were traded from April 19 to 23, data from the Philippine Stock Exchange (PSE) showed.

The share price of the Sy-led property firm closed at P35 apiece, down 2.4% from April 16’s closing price of P35.85. Year to date, the stock has gone down by 10.8%.

In a Viber message, Mercantile Securities Corp. Analyst Jeff Radley C. See said SM Prime’s performance last week was reflective of the market’s “wait and see” attitude, adding that property firms are “heavily battered by the pandemic.”

SM Prime released several disclosures to the PSE on April 21, which includes the declaration of cash dividends, the release of capital expenditures (capex) for this year, the election of independent directors, and the amended full-year financial report. SM Prime’s annual report was first released on April 16.

The day of the disclosures’ releases sent the stock’s closing price down by 4% to P34.8 per share from P36.25 per share the previous day. Its closing price rebounded by 1.87% to P35.45 before falling back by 1.27% to P35 on Friday to end the trading week.

SM Prime named former central bank governor Amando M. Tetangco, Jr., Darlene Marie B. Berberabe, and J. Carlitos G. Cruz as newly elected independent directors, succeeding Jose L. Cuisia, Jr., Gregorio U. Kilayko, and Joselito H. Sibayan.

It also declared cash dividends of P0.082 per share with the ex-date set on April 30. This means only shareholders before this date will be eligible for the dividend payout.

“The cash dividends… were less than half of what they declared last year, which was understandable given the circumstances,” AAA Southeast Equities, Inc. Head of Research Christopher John J. Mangun said in an e-mail.

The company is also setting aside P80 billion for capital expenditures this year, to which Mercantile Securities’ Mr. See said signals SM Prime to be bullish despite challenges this year.

“This is the same capex without the pandemic. They are foreseeing that eventually the number of cases will subside, people would want to go out, and [the] economy will soon recover,” Mr. See said.

On the other hand, AAA Southeast Equities’ Mr. Mangun noted most investors have expected capex for this year to be “conservative as the economy struggles to recover from the effects of the pandemic.”

“Nobody wants to be aggressive right now because of the uncertainty,” he said.

SM Prime reported an attributable net income of P18 billion in 2020, 53.2% lower than the P38.09 billion posted in 2019. Its consolidated revenues fell by 30.8% to P81.9 billion from P118.3 billion previously.

Mr. See expects earnings to “continue to fall” given the current situation, but hopes to see a rebound “towards the second half” of this year as restrictions on the economy may be loosened by that time. 

For Mr. Mangun: “We expect net income to come in 20-30% lower from the previous quarter as mall rentals and real estate sales remain depressed.”

“It is going to take a while for a big company like SMPH to recover,” he said, referring to SM Prime’s stock symbol.

“SMPH has already made the pivot to online both in retail sales and property although competition will be fierce as most businesses have done the same,” he added.

Mr. Mangun placed the stock’s support and resistance levels at P33.55 and P37.40 respectively.

Meanwhile, Mr. See pegged support at P34 and resistance at P37. — Abigail Marie P. Yraola

Style (04/26/21)

FAME+ fashion brands join Indonesian online expo

PHILIPPINE fashion brands housed on FAME+ are part of the inaFashion smesco Online Expo which is ongoing until April 30. Agsam Fashion Fern, Aranaz, Beatriz, Filip + Inna, Joanique, Ken Samudio, Maco Custodio, Mele + Marie, Vesti, and Zacarias 1925 fly both the Philippine and FAME+ banners in the Indonesia-based trade fair, offering their nature-inspired brand of chic to the textile, textile-product, and footwear industries. Carrying the theme “Fashioned from Nature,” the 10 brands offer export-ready and contemporary pieces ranging from apparel to accessories which take inspiration from the varied flora and fauna of the Philippines. All 10 participating brands are exhibitors at FAME+, the digital trade and community platform launched by CITEM late last year to respond to the increasingly digital demands of trade. Among other things, the digital trade platform improves the searchability and discoverability of its over 200 exhibitors from the home, fashion, and lifestyle (HFL) sectors to buyers and design enthusiasts across the globe. Register as a visitor at https://tradefair.inaproduct.com/ and visit the FAME+ virtual booth at inaFashion 2021.

UNIQLO to release League of Legends T-shirts

UNIQLO has announced an upcoming League of Legends UT (UNIQLO T-shirt) collection that will be released worldwide. The collaboration features six unique T-shirts with designs inspired by popular characters like Jinx, iconic in-game elements like Summoner’s Rift and poros, and the girl group K/DA.  The T-shirts will be priced at $19.90 each and be available in sizes XXS-3XL. The League of Legends UT collection will be available globally on UNIQLO’s website and in-stores while supplies last. Part of UNIQLO’s LifeWear concept, the UT collection features a wide range of pop culture icons from around the world. To date, the lineup has included collaborations with other globally recognized brands such as Marvel, Disney, and more. Meanwhile, as more Filipinos embrace a stay-at-home lifestyle, there is a greater need for clothing that is comfortable, lightweight, and functional. UNIQLO’s LifeWear clothing embodies the Japanese values of simplicity, quality, and longevity. It is ever-evolving to meet the changing needs of consumers. Crafted with the best fit, fabrics, and innovations, they can complement everyone’s home, wellness, neighborhood, and new work life. Stay comfortable indoors with the Women’s AIRism Cotton Short T-Shirt which has DRY technology, cool to the touch, and moisture-wicking features that make it smooth and cozy. Pair this with the Women’s Drape Pants. The soft fabric and relaxed cut guarantee maximum comfort for lazy days.  Hit those fitness goals with the Wireless Bra Active Cross Back which provides firm support with breathable pads and a mesh elastic under the bust. Match this with the AIRism Soft UV Protection Leggings which is cool to touch. For an online work meeting or presentation, stay fresh with the AIRism V Neck Short Sleeve T-Shirt. This garment has UNIQLO’s DRY technology, Cool Touch, odor-control, and deodorizing comfort features. The stretch fabric feels comfortable against the skin. The AIRism Jersey Short Sleeve Polo Shirt is for occasions that require smart wear. The jersey material is easy to move in. Style the shirts with UNIQLO’s Smart Ankle Pants. It has a slender tapered cut and made with a two-way stretch fabric that is comfortable and easy to care for while still looking polished. For more updates, visit UNIQLO Philippines’ website at uniqlo.com/ph.

Shopee Beauty’s summer skincare and makeup sale

FROM hair care to makeup, Shopee Beauty has summer makeup and skincare needs, on sale for up to 90%. These include Neutrogena Foaming Cleanser, a non-comedogenic facial wash that removes excess sebum while maintaining your skin’s natural moisture balance; Breylee Blackhead Mask which contains centella asiatica extract to soothe broken, irritated skin; NIVEA Deodorant which is made with aloe vera to help heal razor cuts and prevent ingrown hairs; Palmolive Shampoo, infused with natural lemon oil which removes dead skin cells and dandruff; Dove Body Wash, whose avocado oil helps prickly heat’s red, itchy skin calm down; Vaseline Gel Lotion, which contains niacinamide to remove dark spots; Cream Silk Conditioner which contains argan, rosehip, and marula oils; Lanbena Vitamin C Serum which, aside from Vitamin C, is packed with hyaluronic acid to moisturize the skin; Pond’s Day and Night Cream which contains not just retinol to reduce wrinkles and fine lines, but also niacinamide and hyaluronic acid for clear and hydrated skin; L’Oreal Repair Mask whose gold quinoa and protein extracts treat dry, brittle locks. There is also oil-free, water-based makeup for summer like lightweight and blendable Maybelline Gel Blush; Sace Lady Eyebrow Gel for sweat-proof eyebrows. For more information, visit https://shopee.ph/m/shopee-beauty. More beauty and healthcare brands such as Fresh PH, BLK Cosmetics, Lanbena, GSK, Sanofi, Garnier, Happy Skin, Revlon, The Body Shop, and L’Oreal Pro are going on sale up to 90% off at Shopee’s Beauty Fair this April 27-28. Watch out for even bigger deals at 5.5 Brands Festival as well. Visit https://shopee.ph/m/5-5 for details.

Kathryn Bernardo named endorser for Nivea deodorant

NIVEA Philippines has chosen actress Kathryn Bernardo as the new endorser of Nivea Deodorant. With her busy lifestyle, the actress acknowledges the need for a deodorant that can keep up. She looks for three things in a deodorant: the smell, ingredients that care for her underarm skin, and the effectiveness at keeping sweat at bay. For Ms. Bernardo, having fresh, bright and smooth underarms boosts her confidence to conquer life. “Underarms are very important for us girls. I feel like, when your underarms are beautiful, your confidence level as a woman is higher,” she said in a mix of English and Filipino in a statement released by Nivea. Nivea’s Extra Whitening Deodorant keeps sweat and odor at bay with 48-hours guaranteed protection, and contains licorice, Vitamin C, and skin nutrients that help repair damaged underarm skin by lightening dark spots and smoothing rough and bumpy skin. NIVEA is available in leading supermarkets, drug stores and groceries and online via Lazada and Shopee.

Ever Organics tackles summer skin

AS SUMMER sets in, so do the intense heat and harmful UV rays which can lead to skin problems. Ever Organics protects skin by keeping it cool and hydrated throughout the sunny days. There is Ever Organics Ice Jeju Aloe Gel Lotion which has a cooling effect that hydrates and refreshes the skin. It contains aloe from jeju plants that can boost suppleness and even out skin texture. It also has antioxidants and antimicrobial properties to handle skin irritation and redness. Then there is Ever Organics Ice Jeju Aloe Face Mist, packed with aloe leaf extract which soothes sore skin from sun damage. It contains Mesembryanthemum Crystallinum that helps fight skin aging and provides an added layer of protection for the skin. Both products are made in Korea and are free of harsh and harmful ingredients. Ever Organics Ice Jeju Aloe Soothing Gel Lotion (P188) and the Ice Jeju Aloe Face Mist (P198) are now available on Lazada. For more information, follow @EverOrganics on Facebook and @ever_organics on Instagram.

Make-up playtime at Beauty Bar

BEAUTY Bar, the one-stop shop for all things beauty, lets you play around with looks based on your mood with choices from two brands that will help you express yourself — Anastasia Beverly Hills’ new items and Smashbox’s bestsellers and exclusives. Prefer a minimalist approach for those less-than-an-hour essential trips out of home? Keep brows tamed with Brow Pen (P1,600) by Anastasia Beverly Hills; a superfine-tipped pen ideal for creating realistic hair strokes that will give you your most natural-looking brows yet. Its waterproof formula glides on effortlessly with a feather light feel and the sharp, flexible brush tip easily builds dimension by micro stroking in areas where you want more fullness. For those never-ending Zoom calls, give lips some color with Lip Stain (P1,150). This longwearing formula has four shades to choose from and goes on as light as water yet delivers lush pigment that stays put without drying out lips. When wearing a mask, let your eyes do the talking with the Amrezy Palette (P2,950) which boasts of 16 all-new, all-Amrezy shades. Rushing to an online meeting? Swipe up Anastasia Beverly Hills’s Lash Brag Volumizing Mascara (Full size P1,550 and Mini P895) and achieve maximum lash volume and fullness that will make you look fresh and awake. The specially designed hourglass-shaped mascara wand separately coats each lash with the lush, full-pigment formula that glides on without weighing down lashes. Want to do a full makeup look? Once you’re done with your base, apply a buildable cheek color and pick from one (or even mix to colors together) of three full-pigmented shades from the Blush Trio (P2,100) for color that lasts all day. Create endless makeup looks for face, eyes and body with the Contour Powder Kit (P2,750); an all-in-one contour powder kit containing three highlighter shades and three contour shades in matte and shimmer finishes featuring the brand’s finely milled powder formula that provides buildable coverage and effortlessly blends and adheres to skin. Then there is the Smashbox Art of Play Collection, a collaboration with artist Donald Robertson (@drawbertson) who created the artwork for these limited-edition makeup gift sets that come in playful, reusable boxes. Start off with the Photo Finish Primer Trio (P1,500) to set the base with smooth, hydrated, and revitalized skin. This set of three travel-sized Photo Finish Primers are vegan, cruelty free and can be used individually or together when prepping skin for makeup. Play up your features with the Halo Cheek Palette (P2,100), a versatile cheek and eye makeup palette that features two luminous putty blushes and two radiant powder highlighters that can be worn alone or layered to create a custom glow. Moisturize your lips with a pigmented and satin-smooth cream formula from the Be Legendary Lipstick Trio Set (P1,350) which has shea butter and vitamins C and E for soft lips. Be more playful with lightweight yet bold liquid matte lipsticks from the Always On Liquid Lip Set (P1,500), which has a water-resistant formula infused with Primer Oil Complex, a blend of jojoba, apricot, and sunflower oils to keep lips comfortable. Keep the focus on the eyes with the Super Fan Lash Duo (P1,500), a cruelty free volumizing lash primer and lengthening mascara gift set which provides 12-hour length without heaviness or clumping. Visit beautybar.com.ph/, lazada.com.ph/beauty-bar, facebook.com/BeautyBarPH, ssilife.com.ph, or follow @beautybarph and @ssilifeph on Instagram for more information about their upcoming Summer Sale.

Montblanc releases new movement

MONTBLANC unveils a brand-new Manufacture movement inspired by the historical Minerva Pythagore calibre 48 created in the 1940s. With the Montblanc Heritage Pythagore Small Second Limited Edition 148, Montblanc takes the best vintage cues from Minerva’s rich past to create timepieces for today. Two models in 18 K rose or white gold are being unveiled with new distinctive color dials. They feature the Minerva secret signature and are equipped with the new Manufacture calibre MB M14.08 with geometrical shapes that recall the historical Pythagore movement. Following the historical design of the collection, the Montblanc Heritage Pythagore Small Second Limited Edition 148 comes with a fully polished 18 K white or rose gold 39 mm case, curved horns with facets, and is fitted with a sapphire crystal glass box for an elegant vintage look. Inspired by historical Minerva timepieces from the 1940s and 1950, special attention has been paid to the dials that include technical finishes such as a two-tone decoration, dome-shape, and lacquering. The watches come with distinctive vintage colored dials, such as blue or burnt caramel. To complete the overall design, the timepieces are adorned with matching brown or blue vintage Sfumato alligator straps. Both of them are strictly limited to 148 pieces in homage to the historical Pythagore movement.

Bridges fall down the BBB priority list

LANAODELNORTE.GOV.PH

Only 3 in Metro Manila and the Panguil Bay Bridge are actually in progress

By Marifi S. Jara, Mindanao Bureau Chief
and Maya M. Padillo, Correspondent

AT THE PANGUIL Bay Bridge groundbreaking ceremony on Nov. 28, 2018, President Rodrigo R. Duterte trumpeted the coming “seemingly endless roads and bridges” across the archipelago that will be built under his administration’s “Build, Build, Build” (BBB) infrastructure program.

By July 2020, during the pre-State of the Nation Address forums led by the Duterte Cabinet, Public Works Secretary Mark A. Villar reported having laid out more than 23,000 kilometers (kms) of road and 4,900 kms of bridges.

Mr. Villar said even the coronavirus pandemic, which prompted lockdowns and stringent restrictions, has not significantly affected the BBB timetable.

“We feel we are still on track to meet our target in terms of infrastructure accomplishment,” he said, “We’re confident with regards to the big-ticket projects because of the new guidelines implemented. Based on our studies, we see that the constructions are continuing,” he said.

Most big-ticket bridge projects, however, tell a different story.

Among those considered in the BBB projects list that have been shelved are the Bataan-Cavite Interlink Bridge in Luzon, the Sorsogon-Samar bridge that would have been the first concrete connection between mainland Luzon and the Visayas, the Cebu-Bohol bridge in Central Visayas, and the Guimaras-Negros segment of the Panay-Guimaras-Negros Bridge in Western Visayas.

Other than three ongoing flagship bridges in Metro Manila — the Estrella-Pantaleon Bridge and two crossing Pasig River, the Binondo-Intramuros and Sta. Monica-Lawton bridges — only two in the southern islands of Mindanao, are still in the pipeline, though the timetables for both have been significantly set back.

These are the Panguil Bridge and the Samal-Davao Bridge.

Samal Mayor Al David T. Uy, in an interview in February, said he has his fingers crossed that groundbreaking for the 3.98-km bridge that will link his island to mainland Mindanao will finally happen by March or April.

“I asked them (Department of Public Works and the Chinese contractor) when will be the groundbreaking, they said first quarter of this year. I hope before end of March or April construction will begin,” he said.

Mr. Uy also expressed confidence that construction for the bridge, first discussed some 40 years ago, will finally go ahead despite a potential legal battle from the family that owns the affected property on the Samal landing site.

“There are legal remedies that can be applied. But despite opposition the project will continue,” he said, noting that the bridge will enhance the island’s access to social and health services, transport of people and goods, and boost tourism.

For Panguil bridge, the Korean Namkwang-Kukdong-Gumwang joint-venture contractors of the project have been mobilizing equipment and materials on both ends.

As of the end of January, the contractors have agreed to the Lanao del Norte government’s offer to set up the concrete batching plant and project offices at the former Agora terminal in Tubod, the provincial capital.

The 3.77-km bridge — funded through a P5.21-billion loan from the Export-Import Bank of Korea-Economic Development Cooperation Fund and P2.17 billion from the national budget — will cross Panguil Bay, connecting Tubod to Tangub City in Misamis Occidental.

Panguil Bay crossings are currently served by roll-on, roll-off vessels between Mukas on the Lanao side and Ozamiz City in Misamis, which could take up to three hours, “especially when the queue is extended to the main national highway,” according to Lanao del Norte Provincial Fisheries Officer Noel M. Saldajeno.

When the bridge is up, the crossing could take as little as seven minutes.

Teodolo A. Bueno, Jr., chairman of the more than two decade-old Simbuco Aqua Marine Multi-Purpose Cooperative in Lanao del Norte, said the organization sees the bridge project as a boost to its seaweed venture.

“Members of the cooperatives are very much motivated to engage further in seaweed farming after knowing that the transport of their products will not cost a lot and the travel time will be shortened,” said Mr. Bueno in an e-mail interview facilitated by Mr. Saldajeno.

The cooperative, a beneficiary of the World Bank-funded Philippine Rural Development Project, is expanding from seaweed production to value-added goods such as ice cream and crackers.

Mr. Saldajeno also said, “Seaweed consolidators can easily transport their products and the consolidation will be non-stop since the dried seaweeds will not be stocked longer in the storage area.”

Representative Mohamad Khalid Q. Dimaporo, who represents the 1st district of Lanao del Norte, said the bridge’s benefits extend across the Northern Mindanao Region as well as the neighboring Zamboanga Peninsula and the Bangsamoro Automonous Region in Muslim Mindanao (BARMM).

“The transport sector, especially those traveling or carrying goods from Dapitan (city in Zamboanga del Norte) to Cagayan de Oro (the regional center of Northern Mindanao) will benefit directly from the bridge,” he said in an online interview.

“The completion of the Tubod-Ganassi Road will maximize the economic impact of the Panguil Bay Bridge. It will connect Lanao del Sur and the BARMM Region to western Mindanao markets and ports,” he added.

Misamis Occidental Governor Philip T. Tan, also chairman of the Northern Mindanao Regional Development Council, said the economic benefits from the bridge will be further felt in his province with the construction of the MisOcc Economic Zone Diversion Road.

The 80-km road, with an estimated cost of P2.25 billion, “will spur economic development of the three cities and 11 municipalities” in the province, Mr. Tan said during the Mindanao Speaks Up forum on Feb. 10.

“This will complement the Panguil Bay Bridge… This will provide more access, more investment, and provide faster connectivity” between the province and parts of neighboring regions, he said.

Back at the Panguil groundbreaking more than two years ago, Mr. Duterte was hopeful that the bridge would be completed by 2021.

“Insha’Allah, around 2021 by the time this gets done, it cuts the travel… and make it easier for you to start whatever kind of business in this area,” he said, speaking in English and Visayan.

With construction barely starting, the completion date remains a moving target with a launch seen sometime in 2023 as the earliest.

“It’s a disappointment that we cannot have the bridge completed in the current administration and will have to weather the transition to another administration,” said Mr. Dimaporo, a member of the ruling party.

“I hope the approach from the highway to Panguil Bay can still be completed within the Duterte administration,” he added.

The Panguil and Samal bridges could become the country’s two longest, beating the long-time record held by the 2.16-km San Juanico Bridge in the Eastern Visayas, which was built in 1972.

That distinction, however, would soon belong to the Cebu-Cordova Link Expressway, which will span more than eight kilometers and is expected to be completed by December this year.

Mr. Duterte also led the groundbreaking for that project in March 2017. But being a private sector-led tollway makes it a rather different bridge story.

Toyota Rush, Wigo most-browsed new vehicles on ZigWheels and Carmudi in 2020

PHOTO FROM CARBAY PHILIPPINES

USERS AND VISITORS of leading automotive portals in the country, zigwheels.ph and carmudi.com.ph, have spoken with their browsing habits, and the results are unsurprising: Toyota is the number-one vehicle brand in the Philippines.

Data gathered from the two websites under CarBay Philippines, Inc. showed that the Toyota Rush is the top new model searched for on zigwheels.ph in 2020; the Toyota Wigo was the most-researched brand-new vehicle on carmudi.com.ph during the same period.

Even before the pandemic, more people had been turning to digital resources such as the two portals to do their research on both new and used vehicles, then proceed toward a purchase on the same sites. “The benefits of the digital medium had long been obvious to both auto customers and sellers,” said CarBay Philippines CEO Cholo Syquia in a release. “You could say that the pandemic merely served to magnify these advantages, and accelerate the pace of adoption. Through ZigWheels and Carmudi, we hope to be able to continue providing a convenient and seamless experience to all our users.”

Completing the top five models on the ZigWheels list are the Honda CR-V, Toyota Wigo, Toyota Vios, and the Toyota Fortuner. At Carmudi, the vehicles following the Toyota Wigo are the Toyota Hilux, Toyota Vios, Mitsubishi Xpander, and Toyota Hiace.

Under CarDekho, India’s leading auto tech group, ZigWheels and Carmudi remain the only two-portal automotive presence in the country. While both offer both brand-new and used cars, ZigWheels Philippines is skewed toward new cars; Carmudi Philippines toward used vehicles. Both are self-sufficient, independent brands with their own following.

On ZigWheels, users searching for pre-loved vehicles primarily looked for the Mitsubishi Montero Sport in 2020, followed by the Toyota Fortuner, Toyota Wigo, and Toyota Vios. The Mitsubishi L300 tops the Carmudi list, followed by the Toyota Vios, Toyota Innova, Mitsubishi Adventure, and Toyota Fortuner.

The pervasive appearance of Toyota models in all the lists is not surprising as Toyota Motor Philippines just marked its 19th straight year of notching the “triple crown” — leading the country’s passenger, commercial, and overall vehicle sales.

While last year was an obviously challenging period globally for the automotive sector, many experts are hoping that 2021 turns out to be a recovery year for the industry. “The 40% decline in local auto sales could have actually been worse,” continued Mr. Syquia. “And it is a testament to the agility of auto brands that they were able to quickly pivot to or leverage the digital medium. Of course, having been in this platform for a while, we are glad to offer our services and expertise to many of these companies who look to realize and maximize opportunities during these times.”

ZigWheels and Carmudi are full-spectrum auto websites which offer everything from timely, relevant industry news and features to authoritative reviews. These also have updated, credible listings of cars and motorcycles and even money-saving promotions. “We basically can assist browsers every step of the way,” underscored the CarBay executive. “And our services gain even more relevance these days as people look to reduce face-to-face interactions in the name of safety, yet rightfully demand and expect the best experience in their journey to vehicle acquisition.”

For more information, visit zigwheels.ph and carmudi.com.ph.

The grocery price shock could be coming to a store near you

PHOTO BY BERNARD HERMANT

CORN, WHEAT, soybeans, vegetable oils: A small handful of commodities form the backbone of much of the world’s diet and they’re dramatically more expensive, flashing alarm signals for global shopping budgets.

This week, the Bloomberg Agriculture Spot Index — which tracks key farm products — surged the most in almost nine years, driven by a rally in crop futures. With global food prices already at the highest since mid-2014, this latest jump is being closely watched because staple crops are a ubiquitous influence on grocery shelves — from bread and pizza dough to meat and even soda.

Soaring raw material prices have broad repercussions for households and businesses, and threaten a world economy trying to recover from the damage of the coronavirus pandemic. They help fuel food inflation, bringing more pain for families that are already grappling with financial pressure from the loss of jobs or incomes. For central banks, a spike in prices at a time of weak growth creates an unwelcome policy choice and could limit their ability to loosen policy.

“There seems to be sort of a bullish force behind the prices internationally,” Abdolreza Abbassian, senior economist at the United Nations’ Food and Agriculture Organization, said in an interview. “The indications are that there is very little reason to believe prices would remain at these levels. It’s more likely they will rise further. Hardship is still ahead.”

Emerging markets, in some cases already under pressure from weaker currencies, are particularly vulnerable because food costs make up a larger share of their spending. For the poorest and often politically unstable countries, the surge in raw materials threatens to further stoke global hunger. 

“The relentless rise in prices acts as a misery multiplier, driving millions deeper into hunger and desperation,” Chris Nikoi, the World Food Programme’s regional director for West Africa, said earlier this month. It’s “pushing a basic meal beyond the reach of millions of poor families who were already struggling to get by.”

The most recent crop spikes follow months of price gains fueled by booming import demand from China. Corn prices have doubled in the past year, while soybeans are up about 80% and wheat 30%. With China’s purchases continuing and a spate of adverse weather conditions threatening crops in Brazil and the US, there are few signs of respite. Analysts including those at Rabobank, Mintec and HSBC Global Research all see a risk of even higher prices as a result, though it will vary across markets.

The impact on grocery shelves can already be seen in surging tortilla prices in Mexico, beef in Brazil and retail palm oil in Myanmar. In the US, it’s more expensive bacon and other meat cuts.

“Generally people see this inflation continuing,” said Tosin Jack, an analyst at Mintec, which monitors commodity prices. “The trend will continue for some time and it will translate into consumer goods.”

The threat of food inflation is making governments nervous. Russia, one of the world’s top grain exporters, has ordered a freeze on some retail food prices while taking steps to curb shipments. Bolivia has temporarily banned exports of beef to safeguard supplies at home and put a lid on prices.

Overall, global food costs have surged for 10 straight months, the longest rally in more than a decade, according to a UN gauge. The surge is stirring memories of 2008 and 2011, when spikes led to food riots in more than 30 nations across Africa, Asia and the Middle East, and contributed to political strife and uprisings in the Arab Spring.

Even in rich nations, where food is a smaller percentage of overall consumer spending, changes to some bills could be coming. In Europe, for example, the time lag between rising commodity prices and higher shelf prices is typically six months, according to OC&C Strategy Consultants. Retailers and manufacturers often use various techniques to soften the blow for consumers, including cutting the depth of promotions or reducing the size of products while keeping prices unchanged.

“Once the big commodities, like wheat, sugar, bulk oils, start rising in price for a sustained period of time manufacturers have little choice but to pass those higher costs on,” said Will Hayllar, London-based managing partner at OC&C.

And commodities aren’t the only component in driving up the price of food. Higher freight costs and other supply-chain headaches as well as packaging can all add up. Food and beverage giants are already signaling they’re watching margins. Coca-Cola Co. has flagged higher costs in plastic and aluminum, as well as coffee and high-fructose corn syrup, the key ingredient in soda. Nestlé SA, the world’s biggest food company, warned it won’t be able to hedge all of its commodity costs and it’s raising prices where appropriate.

“This is a very volatile environment right now, very low visibility, lots of surprise,” Nestlé Chief Executive Mark Schneider said this week on a call with analysts. “We will take pricing action.” — Bloomberg

Government debt yields drop

YIELDS ON government securities (GS) fell last week following the strong result of the seven-year Treasury bond (T-bond) auction.

GS yields, which move opposite to prices, went down by an average of 5.46 basis points (bps) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of April 23 published on the Philippine Dealing System’s website.

“Local bond yields ended lower week on week following the turnout of BTr’s (Bureau of the Treasury) very strong seven-year auction,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said in a Viber message last Friday.

“Strong market liquidity continued to take center stage, with GS benefitting from it given the dearth of investment outlets amid the current risk aversion,” he said.

“Economic growth concerns initially led to buying of government securities pushing yields to intra-week lows,” a bond trader said in a separate Viber message, adding that the prolonged strict lockdown in Metro Manila and surrounding provinces could spell economic losses and further dampen the country’s economic outlook.

“However, lack of further catalyst led to profit taking and as the market assesses BTr’s borrowing plan in the coming months,” the trader said.

The Treasury borrowed P35 billion as planned via its offering of fresh seven-year T-bonds on Tuesday. The papers fetched a coupon rate of 3.625%.

Investors swamped the auction, with tenders reaching P90.386 billion, prompting the BTr to open the tap facility to raise another P25 billion as it took advantage of the low rate quoted for the tenor.

Meanwhile, the government will report first- quarter gross domestic product (GDP) data on May 11. Strict lockdowns implemented to contain the spread of the coronavirus caused the Philippine economy to shrink by 9.6% last year, the steepest fall since the 1940s.

The short end of the yield curve ended mixed on Friday as the rates of the 91- and 364-day Treasury bills dropped by 0.76 bp and 1.26 bps, respectively, to 1.3728% and 1.8835%, while the 182-day paper rose by 2.41 bps to 1.6438%.

At the belly, yields on the two-, three-, four-, five-, and seven-year T-bonds decreased by 9.39 bps (to 2.3456%), 6.84 bps (2.6978%), 3.45 bps (2.9841%), 2.61 bps (3.2268%), and 11.1 bps (3.6123%), respectively.

The long end of the curve declined as rates of the 10-, 20-, and 25-year debt dropped by 16.1 bps (to 4.1127%), 5.11 bps (4.9421%), and 5.85 bps (4.9226%), respectively.

Both analysts expect yield movements this week to be influenced by the Bangko Sentral ng Pilipinas’ April inflation forecast and the Treasury’s May borrowing schedule.

“These are awaited leads and are expected to provide guidance on the direction of the yield curve. Until then, yields may continue to consolidate,” Mr. Palma said.

“Yields will continue to trade sideways as we wait for CPI (consumer price index), BTr’s May borrowing schedule and updated quarantine status for the month of May,” the bond trader said.

The government is looking to borrow P3 trillion this year from local and foreign sources to help plug a budget deficit seen to hit 8.9% of GDP. — Lourdes O. Pilar

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