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Riding the roads of change

Ultimately, COVID-19 appears to be speeding up change in the auto industry

By Bjorn Biel M. Beltran, Special Features Writer

THE WORLD has received a shock like no other with the outbreak of the COVID-19 pandemic, and car makers all over have been feeling the pressure.

In fact, according to data from global management consulting firm McKinsey & Company, it is estimated that the top 20 manufacturers in the global auto sector have seen profits decline by approximately US$100 billion in 2020, a roughly six-percentage-point decrease from just two years ago — a drop in profitability that might take years to recover.

Yet even before this great upheaval, the auto industry had been in the midst of rapid development and change. The pace of technology had sped up innovation in the industry for years, and with car manufacturers constantly looking for a competitive edge, the future of mobility looks very different from how it was previously imagined.

A RACE FOR INNOVATION
The digital revolution has ushered in an era of hyper-speed connectivity, and no longer is it limited to interpersonal communication. Utilizing technologies such as the Internet of Things and 5G, vehicles of the future can have access to a wealth of information by communicating with one another on the road, sharing data on things like the environment and weather conditions.

Such data could be used to prevent collisions, alert the driver to potential hazards, and even provide car makers design feedback on their models. The information could then be analyzed to optimize the manufacturing process of future cars.

The connectivity also allows for smart gadgets and cars to communicate with one another, allowing drivers to remotely control their vehicle functions with their mobile devices. Conversely, dashboards are becoming more and more sophisticated, allowing for easy playback of media from phones, laptops, and even smartwatches.

That’s not all. Other consumer trends are exerting their influence on the auto industry, particularly trends revolving around convenience and accessibility. Car subscription services are on the rise alongside ridesharing services as more consumers demand mobility solutions without the burden of a mortgage. Automakers are in the unique position of learning how to balance these new business models to meet the ever-changing expectations of their customers and meet their own revenue goals.

Sustainable mobility has also become a significant driver of change. Due to the increased availability and a positive consumer sentiment, electric vehicles are becoming more popular. Indeed, EV sales are poised to hit their highest level on record in 2021, according to the car shopping experts at Edmunds, with data showing that EV sales made up 1.9% of retail sales in the United States in 2020. Edmunds analysts expect this number to grow to 2.5% this year.

REIMAGINING THE FUTURE AFTER COVID-19
Such trends, along with the massive disruption brought about by the pandemic, have meant a time of rapid change in the development of the global automotive industry, even affecting such things as the process in which consumers buy their cars.

With the world on lockdown, consumers have had no choice but to use online sales channels in conducting their business. According to a recent McKinsey digital sentiment analysis, in Europe, the use of digital channels has increased by an average of 13 percentage points. Growth in online channels is high for every country surveyed, but the biggest boost has occurred in Germany, which has seen the use of digital channels jump 28 percentage points in response to the COVID-19 crisis. Moreover, 72% of first-time users in Germany and 70% of regular users are planning to continue engaging online even after the crisis subsides.

However, previous surveys by McKinsey have found that automotive players were uncertain about using digital channels to market their products. A 2019 Digital Quotient analysis, which is a McKinsey method for evaluating an organization’s overall digital maturity, revealed that the average automotive business has a clear need to digitize, with the industry earning a below-average score compared with other business-to-business players.

Consumer preferences are also changing. Surveys show that due to the economic downturn caused by the pandemic, more people are choosing to go for short-term, subscription-based services that do not tie up significant capital.

“On-demand mobility is on the rise,” McKinsey reported. “The COVID-19 crisis has reinforced the existing trend toward greater flexibility, as customers hesitate to commit to large-scale investments and want flexibility in a fast-changing world.”

“The automotive industry has reached a fork in the road: one path leads to reinvention and success, while the other maintains the current status quo. Business leaders will only have a brief window of opportunity to reimagine their core operations. To ensure their survival and success now and in the future, it’s time for automotive industry players to act,” it added.

SMC sets food donation drive in Metro Manila

SAN MIGUEL Corp. (SMC) is mounting another food donation drive to assist poor communities in Metro Manila, which the government placed again under the strictest quarantine measures due to rising coronavirus disease 2019 (COVID-19) cases.

Ramon S. Ang, SMC president and chief operating officer, said a statement on Sunday that the company sent out boxes of canned goods to assist local government units (LGUs) in providing food for their constituents.

Mr. Ang said the company is initially donating 86,400 pieces of canned goods that are set to benefit 17,280 families across Metro Manila LGUs.

He added that SMC committed to deliver 148,200 packs of NutriBun bread to benefit soup kitchens, medical frontliners, and villages in Pasig City.

“From our experience last year, we know that providing food is a big help to many Filipinos, especially those who live on daily paid work. If they’re unable to work, they won’t be able to put food on their tables. This is our way of helping at least narrow that gap and help keep people from hunger,” Mr. Ang said in the statement.

He added that the company will continue to keep in touch with LGUs and pledged to give more if there is a bigger demand from communities.

“We all have to do our part to ease the strain on our hospitals and medical frontliners at this time. We have to help stop the spread and stay at home. To do this, we also have to ensure our least fortunate countrymen will not go hungry,” Mr. Ang said.

SMC said it donated more than P516 million worth of food as part of its food donation drive last year.

Its weekly NutriBun donation drive also continued, with more than 100,000 buns donated to communities in Malolos, Bulacan; Tondo, Manila; Payatas, Quezon City; and Caloocan.

Meanwhile, SMC said it has other initiatives such as its own feeding center and food bank in Tondo, its own COVID-19 testing facility, a ready market for farmers produce across its Petron gas stations, and free COVID-19 vaccine for employees, among others.

“All aspects of our lives have been affected by the COVID-19 pandemic. Just as we have at the beginning, we remain committed to helping out in any way we can, be it through immediate assistance and relief, to helping our country with long-term recovery efforts,” Mr. Ang said. — Revin Mikhael D. Ochave

Poultry farmers seek gov’t help to set up Davao breeder facility

DAVAO CITY’S poultry and egg producers have asked the Agriculture department’s regional office to go ahead with the proposed establishment of a breeder farm in the city to ensure stable supply and food security.

“As of now we depend on hatching eggs from Luzon and other areas, and the breeder farms in Davao Region are small,” Lalaine Lillibeth A. dela Victoria, president of the Davao Poultry and Egg Producers, Inc., said.

Speaking at the 22nd Davao Agri Trade Expo Webinar Series on Biosecurity Measures and Farm Management Systems last week, Ms. Dela Victoria noted that supply has tightened recently for hatching eggs from both domestic and foreign supplies.

“The imported hatching eggs are not getting delivered because of the pandemic,” she said.

She also said demand for chicken has increased as an alternative to pork, which has been affected by African Swine Fever (ASF) outbreaks in parts of the region.

The Department of Agriculture’s Davao office has been rolling out livestock and poultry expansion programs to assist raisers affected by the ASF as well as other growers hit by the coronavirus pandemic.

Hog repopulation is being undertaken on a small scale with ASF-affected areas still being monitored and tested for the virus.

Ms. Dela Victoria said a breeder farm in the city would address long-term demand and ensure food security.

Davao Region produced 81,090 metric tons (MT) of chicken in 2019, seventh out of 16 producing regions, according to the Philippine Statistics Authority.

Davao City accounted for 61% of the region’s chicken output with 49,263 MT.

Chicken production in the region expanded at an annual average rate of 3.53% between 2015 and 2019, with the highest growth recorded in 2015 at 7.54%. — Maya M. Padillo

Senate to consider lower increase in deposit insurance

A SENATOR said lowering the increase in the maximum deposit insurance coverage proposed under measures amending the Philippine Deposit Insurance Corp.’s (PDIC) charter is an “option,” following concerns raised by banks on a possible rise in their premium payments.

Senator Juan Edgardo M. Angara, vice chair of the Senate Committee on Banks, said the measures amending the PDIC charter are now being reviewed by a technical working group, saying one issue being considered is the premiums paid by banks.

“Lowering insurance [below the current P500,000] is not an option; ideal is no change in premiums but insured deposit amount/coverage increases,” Mr. Angara told BusinessWorld in a phone message.

“Lowering below P1 million is an option we will have to discuss,” he added.

Senate Bill No. 1260, filed by Senator Ramon Revilla, Jr. and Senate Bill No. 2089, filed by Mr. Angara, both propose to increase the deposit insurance coverage to P1 million from P500,000.

Mr. Angara’s bill also seeks to amend provisions of Republic Act No. 3591 or the PDIC charter to address the “constantly changing Philippine financial landscape.”

The measure he filed also states that the maximum deposit insurance coverage shall be subject to review of the PDIC Board of Directors every three years and may further be increased to an amount “indexed to inflation or other economic indicators.”

It proposes to transfer the PDIC as a corporation attached to the BSP from the Finance department and also modifies some powers of the state deposit insurer to avoid overlapping functions with the BSP.

During a Senate hearing on March 19, both the Department of Finance and the Bangko Sentral ng Pilipinas expressed support for the bill. 

BSP Governor Benjamin E. Diokno had said in the hearing that the P500,000 maximum insurance deposit coverage “may be inappropriate at this time already.”

However, he said to make the increase sustainable, there should be a “necessary adjustment” in the premiums paid by banks. He said one possibility is increasing the premiums to two-fifth of 1% of total deposits from one-fifth of 1%.

PDIC President Roberto B. Tan also said if there will be an increase in the insurance coverage, “the adequacy of the deposit insurance fund as it is now will diminish.”

“That’s the reason why there must be some corresponding compensation for the deposit insurance fund to be adjusted. This will in effect require an increase in the assessment rate,” he said.

Cecilio D. San Pedro, president of the Chamber of Thrift Banks, said the increase in coverage will stabilize the banking system, but lenders affected by the pandemic may not be able to afford higher premiums.

“Increasing the premium coverage will create stability for the banking system as this will boost public confidence and trust in the banking sector. However, banks are adversely affected by the pandemic, particularly loan portfolios, hence cannot afford any increase in premium,” Mr. San Pedro said during the hearing.

He added that thrift banks would also have to address the requirements of their micro, small, and medium enterprise clients, a “major niche” of the sector, that have also been affected by the pandemic.

Bankers Association of the Philippines President Jose Arnulfo A. Veloso said the deposit insurance coverage, when indexed to inflation, should be adjusted to P675,000, adding that determining the limits should be left with the board of the PDIC “to allow for timely adjustments.”

“Maximum limits should reflect the country’s depositor profile and seek to protect the vast majority of depositors, with a particular focus on small depositors,” Mr. Veloso said in the hearing, adding that at the current rate P500,000, 97% of all bank depositors were fully insured. — Vann Marlo M. Villegas

Lonesome Dove author Larry McMurtry, 84

LARRY McMurtry, who wrote of complex relationships in novels such as The Last Picture Show and Terms of Endearment, and then helped redefine the American Old West with the epic Lonesome Dove, has died at 84, his publicist said on Friday.

The cause was heart failure, according to publicist Amanda Lundberg, who said by e-mail the author was surrounded by loved ones, including his wife Norma Faye and long-time writing partner, Diana Ossana, when he died on Thursday night.

In addition to his Pulitzer Prize for Lonesome Dove in 1986, Mr. McMurtry won an Academy Award in 2006 with Ms. Ossana for the screenplay for Brokeback Mountain about the relationship between two gay cowboys. He also was nominated in 1972 for his adaptation of his novel The Last Picture Show.

Mr. McMurtry wrote nearly 50 books —  collections of essays and criticism and memoirs in addition to his novels —  but Lonesome Dove had the most impact. It was a sweeping tale of two aging former Texas Rangers —  the amiable Gus and cantankerous Call — on a cattle drive from Texas to Montana.

“If anybody had any sense, they’d throw out Moby Dick and put Lonesome Dove in the center as the great American epic novel,” Carolyn See, a literature professor at the University of California Los Angeles, told the Los Angeles Times in 2003.

“No question about it. His heroes in that book are just terrific. His women are just terrific. And he sustains it for 800 pages.”

Mr. McMurtry was remembered for being as unassuming as he was accomplished.

James L. Brooks, who directed Terms of Endearment, recalled on Twitter how Mr. McMurtry had him adapt the novel into a screenplay, refusing “to let me hold him in awe” and was “working the cash register of his rare book store as he did so.”

Fellow novelist Stephen King called him a great storyteller.

“I learned from him, which was important,” Mr. King said on Twitter. “I was entertained by him, which was ALL important.”

Mr. McMurtry developed lasting affection for many of his characters and quite often brought them back for sequels. The principles from Lonesome Dove would eventually be in four books and the characters from The Last Picture Show generated five novels.

Critics praised Mr. McMurtry for his skill in fashioning nuanced and compelling characters and the way he brought them together — whether they were coming-of-age teenagers fighting small-town ennui in The Last Picture Show or a self-absorbed woman and her needy, dying daughter in Terms of Endearment.

Mr. McMurtry had a contrarian streak — he wore jeans with his tuxedo jacket to pick up his Oscar — and took a simple approach to his writing.

“I like making stuff up,” he told Texas Monthly in 2016. “I just write.”

Mr. McMurtry, the son and grandson of ranchers, was born on June 3, 1936, on a book-less cattle ranch near the West Texas plains town of Archer City. The town would be the model for Thalia, the setting for The Last Picture Show and its sequels.

He told interviewers late in his career that he thought his work peaked with Lonesome Dove in 1985.

“Constructing a long novel is a really demanding business,” he once said. “I don’t think there have been many novelists whose best work has been written after they were 60.”

Mr. McMurtry’s novels had contemporary settings until Lonesome Dove. That book, along with the successful television mini-series that followed and his other Western books, did not hew to the romantic myth of the Old West.

Instead of noble cowboys performing heroic deeds and taking part in dramatic gunfights, his characters endured endless hardships and lives of desperation.

When not writing books, Mr. McMurtry was selling them. After living in various places including Washington, D.C., where he owned a rare book store, in 1988 he moved back to Archer City, which had no bookstores or libraries in his youth, and built up a used book store complex that some collectors considered the biggest of its kind in the country.

In 2012 he reduced the Archer City operation by half but still maintained a personal collection of more than 28,000 books.

A disciplined author with a regular routine that called for composing five pages every morning at his manual typewriter, Mr. McMurtry loved movies almost as much as books.

In addition to The Last Picture Show and Terms of Endearment, his first novel, published in 1961, Horseman, Pass By was turned into the movie Hud, starring Paul Newman. He also wrote several screenplays and teleplays.

Mr. McMurtry underwent quadruple bypass surgery in 1991 and fell into a deep depression, inspiring what he said was one of his favorite books — his 1999 novel Duane’s Depressed, which revisited one of the main characters from The Last Picture Show.

Mr. McMurtry’s son from his first marriage is singer-songwriter James McMurtry. In 2011 he married Faye Kesey, widow of One Flew Over the Cuckoo’s Nest author Ken Kesey, who had been McMurtry’s classmate in a writing program at Stanford University in the late 1950s. The couple split their time living with Ms. Ossana in Tucson, Arizona, and in Archer City. — Reuters

New roads and high hopes

‘Build, Build, Build’ marches forward despite the pandemic

By Adrian Paul B. Conoza, Special Features Writer

AMID THE coronavirus disease 2019 (COVID-19) pandemic that disrupted economic activity and even halted road constructions temporarily, new roads were completed last year and more are set to be open as the current administration’s Build, Build, Build (BBB) program pushes through.

One of the most remarkable completed roads is the Metro Manila Skyway Stage 3, which was officially inaugurated last Jan. 14. The 17.93-kilometer (km) elevated expressway extends from Gil Puyat Ave. (the former Buendia Ave.) in Makati to the North Luzon Expressway (NLEX) in Balintawak, Quezon City.

The opening of Skyway Stage 3, which bypasses the often-congested EDSA, cuts travel time between Gil Puyat and Balintawak from two hours to 15 to 20 minutes.

Moreover, as constructor San Miguel Corp. noted in a statement, through this expressway, travel from Magallanes to Balintawak will only take about 15 minutes; Balintawak to Ninoy Aquino International Airport also 15 minutes; and Valenzuela to Makati 10 minutes.

Skyway Stage 3 has five sections: Gil Puyat Ave., Makati-Quirino Ave.-Nagtahan; Nagtahan-Aurora Blvd./Ramon Magsaysay Ave.; Ramon Magsaysay-Quezon Ave.; Quezon Ave.-Balintawak, Quezon Ave.; and Balintawak, Quezon City-NLEX Footbridge.

Last July 15, the Tarlac-Pangasinan-La Union Expressway (TPLEX) was completed and can now be fully utilized from Tarlac City and Rosario, La Union. The 89-km expressway cuts the travel from 3.5 hours to one hour, benefitting 20,000 travelers per day. This is being followed up by a proposal extending TPLEX by an additional 59 km up to San Juan, La Union.

In addition, at the NLEX Harbor Link, Segment 10, a 5.58-km elevated expressway connecting MacArthur Highway and C-3, and the 2.6-km C-3-R10 Section (Exit Ramp) were opened. This reduces travel time from NLEX to Radial Road 10, Navotas City (and vice versa) from one hour to 10 minutes.

Along with these finished roads, there are more projects along the road network that have been ramped up. Many of these are expected to be completed within this year.

Among the main roads in progress is the 8-km NLEX-SLEX Connector, which will connect the end of NLEX Harbor Link, Segment 10 in C3 Road, Caloocan City to Skyway Stage 3 through PUP Sta. Mesa.

As said by the Department of Public Works and Highways (DPWH) in a statement last January, a portion of the connector road, which spans 5 km from the Caloocan Interchange to España, Manila, is aimed to be open by yearend.

Meanwhile, the Arterial (Plaridel) Bypass Road, traversing from Batangas to Bulacan, is being widened from two lanes to four. Targeted to be finished by April, this widening is expected to address traffic diverted from Maharlika Highway and to cut travel between Burol, Batangas to Maasim, San Rafael in Bulacan to 24 minutes from 69 minutes.

Also in progress is the 30-km, four-lane Central Luzon Link Expressway (CLLEX), traversing Tarlac City and Cabanatuan, Nueva Ecija. CLLEX aims to reduce travel time within the area from 70 minutes to 20 minutes. The DPWH announced last February that the expressway will be open to the motoring public up to Aliaga, Nueva Ecija by May 15.

In the Southeast Metro Manila Expressway, C-6 (Phase I) project, which targets to reduce travel time from Bicutan, Taguig to Batasan, Quezon City from 110 minutes to 26 minutes, advanced construction activities for the workable area along Skyway/FTI-C-5/Diego Silang Section are ongoing.

The Alabang-Sucat Skyway Connection and Ramp Extension, which intends to provide direct access to and from the elevated Skyway to SLEX through the Alabang Viaduct, is 61% complete. The DPWH announced that the northbound portion of the extension will open by the second quarter of 2021.

Within the 45-km Cavite-Laguna Expressway (CALAX), which intends to reduce travel time between CAVITEX and SLEX from 90 minutes to 45 minutes, the 7.2-km segment that runs between Santa Rosa-Tagaytay Road Interchange and the Silang East Interchange may open by the third quarter, according to constructor MPCALA Holdings, Inc.

At the 66.74-km South Luzon Expressway-Toll Road 4, which intends to reduce travel time from Sto. Tomas, Batangas to Lucena City, Quezon from four hours to an hour, construction of the Tiaong Interchange in Quezon is ongoing.

Further south, the Quezon-Bicol Expressway is already considered in the Supplemental Toll Operations Agreement of the Toll Regulatory Board as part of SLEX-TR5.

The Camarines Sur Expressway, which is planned to reduce travel between San Fernando and Pili towns to 11 minutes, is already ongoing implementation.

Aside from these projects in Luzon, Visayas and Mindanao regions are not left out. The DPWH allots P1.23 billion for preliminary studies required to implement several big-ticket projects. These include 19 projects in Visayas, among them the Capiz-Aklan Coastal Road and Baybay-MacArthur Road, to name a few.

Mindanao, meanwhile, will receive funding for 29 projects, including Putik-Campo Island Diversion Road in Zamboanga City and Poblacion Sta. Maria-Malungon Road, connecting Davao del Sur to Sarangani.

AllHome net income hits nearly P400 million

VILLAR-led AllHome Corp. generated a net income of P399.6 million for the fourth quarter of 2020, growing by 28% from its third-quarter income of P312.5 million.

“The improvement in sales and net income was brought about by the opening up of the Philippine economy and easing of quarantine restrictions in the third quarter and fourth quarter that compensated for the loss of revenues in the second quarter,” the company said in a statement on Saturday.

Revenues increased by 18% to P4.1 billion in the last quarter of the year from P3.5 billion in the third quarter. Year-on-year comparative figures were not disclosed.

For 2020, AllHome’s net income declined by five percent to P1 billion from P1.05 billion. Net sales inched up by nearly three percent to P12.4 billion from P12.06 billion, despite the pandemic.

“The year 2020 has proven AllHome’s strength and capability to quickly respond to the health and shopping challenges of the pandemic and to capitalize on the AllValue retail ecosystem by putting pop-up stores for essential products beside its affiliate company AllDay supermarket during the early days of [the enhanced community quarantine],” Camille A. Villar, vice-chairman of AllHome, said.

AllHome began offering cashless payment options in its physical stores. The company also launched e-commerce platform allhome.com.ph, introduced a Viber community, and provided a personal shopper service.

“Our digital presence complements our brick and mortar stores as we use them for our fulfilment,” Ms. Camille A. Villar added.

AllHome said it maximized its seven product categories to generate sales, while its soft categories offset the decline in sales from hard categories.

“The balanced mix of seven product categories and diversified brand portfolio enabled AllHome to mitigate the slowdown in sales related to construction. Soft categories contributed 62% of total revenues in 2020 with appliances as top contributor at 31% of total revenues,” the company said without disclosing specific figures.

The appliances category expanded through a new concept called AllDigital, which focuses on offering work-from-home products, distance learning, and online gaming.

“Bolstered by the reopening of the economy and the sustained improvement of our sales since the third quarter of 2020, we resumed with our expansion program,” AllHome Chairman Manuel B. Villar, Jr. said.

The company added that its strategies “have proven effective during this time,” citing a balanced category mix and putting stores closer to residential communities.

“We have changed our conservative stance in terms of our store expansion program last year after we have seen a much improved sales numbers in the third quarter which was sustained for the rest of 2020,” AllHome President Benjamarie Therese Serrano said.

AllHome closed the year with 50 stores from 45 in 2019. The five additional stores were opened from September to December 2020. Meanwhile, two more stores were launched in January and February in 2021.

“Our collaboration with the Villar Group is the reason why we can open a number of stores in a short span of time. Those synergies with the Group includes more importantly the store location and fast-track construction capability in addition to the captive customer base,” Ms. Serrano added.

“We are cautiously optimistic with the home improvement industry for 2021,” Mr. Manuel B. Villar said.

AllHome shares at the stock exchange moved up by 0.25% or P0.02 on Friday to close at P7.90 apiece. — Keren Concepcion G. Valmonte

Farmers say new pork import MAV to discourage hog repopulation

THE drastic increase in allowable pork imports is likely to discourage farmers from expanding their hog herds, threatening the industry, farmers’ representatives said.

Edwin G. Chen, president of the Pork Producers Federation of the Philippines, Inc., (ProPork) said in a mobile phone message that there is no need to expand the pork import quota, known as the minimum access volume (MAV).

President Rodrigo R. Duterte “was probably misinformed by his advisers. This act of raising the MAV will further weaken pork producers,” Mr. Chen said.

On Friday, the President’s spokesman Herminio L. Roque, Jr. announced that Mr. Duterte has asked Congress to expand the MAV allocation for pork imports to 404,210 metric tons (MT) from the current 54,210 MT.

Imports within the MAV quota are charged a 30% tariff while out-of-quota shipments must pay 40%.

“This is to immediately augment the supply of pork, stabilize increasing prices, and address the pressing issues on food security,” Mr. Roque said in a statement.

The drive to increase the supply of pork follows a sharp increase in prices after the domestic herd was decimated by African Swine Fever.

Nicanor M. Briones, ProPork vice-president for Luzon, said in a mobile phone message that Mr. Duterte’s proposal will deter hog raisers from expanding their herds, noting that a MAV allocation of 404,210 MT is the equivalent of 8 million hogs.

“Higher MAV allocation means that wet markets will be flooded with imported pork not only in Luzon but also in the Visayas and Mindanao which are not experiencing shortages,” Mr. Briones said.

“The proposal will further aggravate the shortage of pork supply next year. Also, other hog raisers will stop operations” because of the expanded supply of competing imports.

Samahang Industriya ng Agrikultura Chairman Rosendo O. So said in a statement Sunday that consumers and producers will lose out, while only a select group of importers will benefit.

Congress is on break and will resume on May 17.

“Congress has not been given the chance to deliberate on the matter since the Department of Agriculture (DA) knew it can never justify its proposal (if it went before) a fair platform,” Mr. So said.

Jesus C. Cham, president of the Meat Importers and Traders Association, said in a mobile phone message that increasing the MAV quota is a step in the right direction in increasing the supply of pork.

Mr. Cham said a lowering of pork tariffs is still needed to bring down the retail price.

“The DA informed us that the hog sector projected a deficit of 500,000 MT. It remains to be seen whether the higher MAV allocation will be enough. With a lowered tariff, out-quota imports can hopefully alleviate some of the pain,” Mr. Cham said.

Asked to comment, Agriculture Secretary William D. Dar said in a mobile phone message that the DA has not received a copy of the recommendation from Mr. Duterte.

Earlier in the year, the DA recommended the MAV increase as well as a lowering of the tariff for pork imports within the MAV quota to 5%-10%, and that for out-of-quota imports to 15%-20%.

According to the Bureau of Animal Industry, pork imports hit 58,757.07 MT in the first two months of 2021, up 91.3% year on year.

Meanwhile, the DA said live hog deliveries to Metro Manila markets amounted to 229,774 animals, since shipments began on Feb. 8 to expand supply in support of price controls imposed on that date. — Revin Mikhael D. Ochave

Ship stuck in the Suez Canal unleashes flood of Internet jokes

TOKYO —  A giant ship has blocked the famous Suez Canal but opened up a torrent of memes and gifs lampooning the hapless container carrier, which has been jammed in the waterway since Tuesday.

Elements of global commerce have been brought to a standstill, but no one was hurt, and the environment is so far undamaged. The lack of stakes surrounding the Ever Given’s grounding has made it a prime target for jokes.

Nine tugs attempted to move it while getting some help from the shore with two workers and a digger clawing into the sandy embankment where the Ever Given’s bow is dug in.

Images of them — dwarfed by the hull of the monster they were trying to dig out — circulated with comments on Twitter such as “these two guys and their digger are currently trying to save global trade.”

The Twitter account @SuezDiggerGuy, “Guy With the Digger at Suez Canal,” had nearly 15,000 followers by around 0600 GMT Friday and a profile line that read: “Trying my best. No promises.”

Its timeline was replete with observations such as “Thinking of naming my digger, Ever Digging” and bemoaning having his leave rescinded by managers.

Netizens also conjured up Lego images of the digger and the bow of the container ship, which is carrying consumer goods from Chinese factories to European households.

Once it became clear the ship could be stuck for weeks, a website quickly spun up, https://istheshipstillstuck.com.

And the memes filled the internet like cargo ships piling up in the Red Sea. Many of the most popular touched on the angst of the last pandemic-filled year; one labeled the hulking ship “my COVID depression & anxiety” and the tiny digger on shore as “going on a daily walk.” — Reuters

BPI pioneers ‘all-in-one’ auto loan and insurance bundle

By Kap Maceda Aguila

BPI Retail Loans Group Head Dennis Fronda — PHOTO FROM BPI

THE PANDEMIC has necessitated the reexamination of many aspects of daily life and whether they make sense in this new normal. Convenience is truly king, particularly if it means saving on effort and time (and in some cases, a trip to go out).

BPI Family Savings Bank (BFSB) President Ginbee Go acknowledged that “transport and travel” have been the hardest hit. Commensurately, the company has to “dial down” on its outlook as auto insurance volumes were on the decline. The Ayala-led banking brand thus had to “pursue initiatives that build on resilience and prudence.”

First things first, Ms. Go underscored, are the protection of employees, continued cash flow for customers, proceeds reaching dealer partners within a day, and the approval and release of loans “without fail.” It’s not just about learning to pivot, but seeing to business continuity.

“We need to give hope (by providing) relevant solutions to address challenging times,” continued Ms. Go.

With that in mind, the Bank of the Philippine Islands (BPI) recently launched “BPI Auto Loan Multiyear Protect” which provides comprehensive insurance coverage for auto loan clients. The protection spans the entire duration of the loan.

Instead of lump sum payments at the start of each year, the BPI product combines monthly installments with the loan amortization payments “in a more affordable and convenient package.” There’s no more need for lump sum upfront payments for insurance.

Auto loan customers also get Guaranteed Asset Protection (GAP) insurance coverage — providing up to P200,000 of additional coverage in case of the vehicle’s “total loss.”

Said BPI Retail Loans Group Head Dennis Fronda, “The Multiyear Protect prioritizes our customers’ convenience and peace of mind because it was designed to eliminate the financial worries and administrative hassles a typical car loan client might experience today.” To offer the service, BPI partners with BPI M/S Insurance Corp.

“We wish to provide customers the confidence to pursue their dreams of owning a car today and give them the premium experience they deserve. On a larger scale, we also hope that this will translate to better consumer confidence that will result in more car sales and help the auto industry bounce back this year,” he added.

BPI is treating 2021 as the year of recovery and growth for both the auto sales and financing sectors. “Auto Loan Multiyear Protect is one of our ways to show our commitment to provide customers with reliable and relevant financial solutions, so we can all have opportunities for better times ahead,” he said. Replying to a question from “Velocity,” the executive maintained that the company is cognizant about its role in helping spur and enable vehicle purchases, and that they have been meeting with auto executives with a view toward enabling the renewal of the sector.

Interested applicants may visit bpiloans.com to learn more about Multiyear Protect or visit any BPI or BFSB branch nationwide to talk to the bank’s expert loan advisors.

Meralco to suspend disconnection activities until mid-April 

MANILA Electric Co. (Meralco) will halt its disconnection activities in its franchise area until April 15 shortly after the government placed Metro Manila and nearby provinces an enhanced community quarantine (ECQ).

In a press release issued on Saturday, Meralco said that it is “immediately suspending all disconnections” until mid-April.

“We hope this measure will contribute to easing the burden of our customers and provide enough relief and time for them to settle their bills,” Meralco First Vice-President and Chief Commercial Officer Ferdinand O. Geluz was quoted as saying.

He reiterated that Meralco will continue to be considerate, and vowed to help customers with their electricity concerns.

The utility firm said business operations, including meter readings and bill deliveries, will continue amid stricter quarantine measures.

“Rest assured there will be strict implementation of health protocols in order to safeguard the health and safety of both customers and our personnel. This will ensure that actual consumption for the month will be billed accordingly,” Mr. Geluz said.

He added that the Meralco crew will be on standby to respond to emergencies and reports.

Meralco said that customers can reach the power firm by sending a personal message through its social media platforms on Facebook and Twitter, Meralco said. They can also call its hotline before heading to Meralco business centers, which will be on skeleton force.

The distribution utility said that its business centers will remain open to accept payments and applications, and will continue assisting customers. Business hours from Monday to Friday will be from 7 a.m. to 3 p.m.; and 7 a.m. to 12 p.m. on Saturdays. The centers will be closed on April 1 to 3 in observance of Holy Week.

On Saturday, Presidential Spokesman Herminio L. Roque, Jr. said that the National Capital Region, Bulacan, Cavite, Laguna, and Rizal will be placed under a one-week ECQ starting from March 29 up until April 4, 2021.

Earlier this month, Meralco reported that its core net income in the fourth quarter slid by 11.2% P5.98 billion year on year, capping 2020 with residential users making up the biggest share in power consumption.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Yields drop on BSP, rising cases

YIELDS ON government securities (GS) rallied last week amid buying interest as rising coronavirus cases raised lockdown concerns, while the Bangko Sentral ng Pilipinas’ (BSP) decision to keep rates steady also affected trading.

Debt yields, which move opposite to prices, dropped by 8.82 basis points (bps) on average week on week, data from the PHP Bloomberg Valuation Service Reference Rates as of March 26 published on the Philippine Dealing System’s website showed.

“Strong buying interest swamped the GS market with yields of the belly to the long end of the curve trending lower,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said in a Viber message.

“Concerns on renewed lockdown orders amid a continued rise in cases in the nation’s capital have somewhat complicated the country’s rebound prospects and have kept inflation expectations in check, thereby increasing chances for the BSP to keep its policy settings accommodative for longer,” he said.

“The local bond market found some reprieve brought about by softer US Treasury yields week-on-week…mainly due to some risk-off sentiment amid concerns on renewed lockdown orders on key European countries,” Mr. Palma added.

Manila and nearby provinces will return to stricter quarantine measures from Monday, a senior official said on Saturday, as the Philippines battles to contain a surge in coronavirus disease 2019 (COVID-19) cases that has strained hospitals, Reuters reported.

Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said the measures, which will be in place until April 4, will ban nonessential movement, mass gatherings, dining in restaurants. They represent a further tightening of curbs imposed on March 22.

The Health department on Saturday reported 9,595 new coronavirus cases, marking the second straight day the daily jump in infections remained above 9,000.

Meanwhile, Philippine Bank of Communications Senior Trader Justin Robert G. Ladaban said yields dropped after the market’s strong support for the 10-year bond auction on Tuesday.

“Although they were generally higher than market levels prior to the auction, they were within market estimates. This drove the rally along with the fact that the BSP reiterated its intent to keep policy rates accommodative in spite of higher inflation print that we’ve been seeing the last couple of months and the fact that the market remains very liquid,” Mr. Ladaban said in a separate Viber message.

The Bureau of the Treasury (BTr) on Tuesday raised P30 billion as planned from its auction of reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and three months. The offer was nearly twice oversubscribed as bids reached P53.92 billion. The bonds fetched an average rate of 4.614% versus the 3.066% seen in the previous offering. 

Meanwhile, the central bank left its key interest rate unchanged at a record low on Thursday, as it supports an economy whose recovery is at risk from a renewed surge in COVID-19 infections.

The Monetary Board kept the overnight reverse repurchase rate at an all-time low of 2% for a third consecutive meeting. Rates for the overnight lending and deposit facilities were also maintained at 2.5% and 1.5%, respectively.

The central bank has kept policy settings steady since its December meeting, but BSP Governor Benjamin E. Diokno has said they will respond accordingly when the need arises, especially if rising inflation causes second-round effects.

Headline inflation reached 4.7% in February, the highest since the 5.1% in December 2018.

The central bank upwardly revised its inflation outlook to 4.2% this year from the forecast of 4% given in February. The average print for 2022 is seen at 2.8%, slightly higher than the previous projection of 2.7%.

At the end of trading on Friday, the rates of short-dated debt papers rose compared with their week-ago levels. Yields on the 91-, 182-, and 364-day Treasury bills increased by 2.34 bps (to 1.3006%), 1.73 bps (1.4647%), and 0.31 bp (1.9349%), respectively.

On the other hand, the two-, three-, four-, five-, and seven-year T-bonds fell by 10.18 bps, 17.44 bps, 21.45 bps, 23.03 bps, and 20.32 bps, respectively, to fetch 2.4299%, 2.7708%, 3.0354%, 3.312%, and 3.9029%.

At the long end of the curve, yields on the 10- and 25-year debt also declined by 9.01 bps (4.3735%) and 0.36 bp (4.9973%), respectively. Meanwhile, the 20-year bond inched up by 0.43 bp to fetch 5.0033%.

“The market closed the week off the lows in terms of yields so it could establish a range [this] week,” Mr. Ladaban said, noting the market will take its cue from the BTr’s April auction schedule.

“Market players are likely to keep looking for developments onshore such as BTr’s borrowing schedule in April and BSP’s inflation forecast for March. For the week, expect some choppy trading ahead of the Holy weekend,” Robinsons Bank’s Mr. Palma added. — Marissa Mae M. Ramos

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