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Torre Lorenzo considers REIT via market listing

By Denise A. Valdez
Reporter

TORRE LORENZO Development Corp. (TLDC) is studying the possibility of launching a real estate investment trust (REIT) and listing at the stock exchange through an initial public offering (IPO) in the coming years.

TLDC Chief Finance Officer Emmanuel A. Rapadas told reporters last week the company is beefing up its portfolio to prepare for financial instruments that will turn it into a public company.

“At the moment, we’re talking with our financial advisors on how and when we will enter REIT,” Mr. Rapadas said. “We will get into REITs, it’s just a question of when.”

He also said the company was initially planning to do an IPO by 2021, but this would be moved due to the present market conditions.

“It was supposed to be 2021. But the problem is you also have to understand the general business conditions… (We have) our internal considerations as well,” Mr. Rapadas said.

“Nobody will go public now. Everybody is running away from the equities market. So when? We really have to play it by ear,” he added.

The Philippine Stock Exchange has been volatile in recent weeks due to the coronavirus outbreak, and has breached bear territory last week after reaching the 6,300 level. The main index closed at 5,793.94 on Friday.

TLDC is a local real estate developer whose assets are mostly premium university residences. It started venturing into the leisure business last year with the opening of the dusitD2 Hotel in Davao and private island resort Dusit Thani Lubi Plantation Resort.

The company recorded total revenues of P2.2 billion in 2019, 21% higher from a year ago, and a bottomline of about P190 million, up 15% year-on-year.

Mr. Rapadas said the company is allocating up to P7 billion for capital spending this year, which will fund the introduction of three new residential projects in Manila, Quezon City and Davao, and ongoing construction of leisure projects in Batangas, Pampanga, Manila and Davao.

TLDC is expecting to hit P2.3 billion in revenues and a net income of about P400 million by end-2020. Mr. Rapadas said the company’s target is to do an IPO once revenues reach P8 billion net income hit P1.5 billion.

“We believe we’re ready. Just a few more adjustments, we need to get to a certain level of revenues… But absent the market conditions, you should not do it… Probably when the conditions are ripe,” he said.

Sporty spice: Subaru Forester GT Edition now here

Text and photos by Kap Maceda Aguila

FOLLOWING its unveiling at the Singapore Motor Show early this year, the fifth-generation Subaru Forester’s sportier-looking iteration now makes its way to the Philippines to take the top rung in the SUV model’s roster.

Motor Image Pilipinas, Inc., exclusive distributor of Subaru vehicles in the country, has just launched the Subaru Forester GT Edition — a specially designed version developed in collaboration with engineering company Giken Co. Ltd. and Masahiko “Jack” Kobayashi.

A former chief designer heading the Global Advanced Design Studio at Subaru Corporation, Kobayashi was “responsible for the exterior design of more than 12 Subaru production models, including… the WRX STI,” according to Subaru in a release. Meanwhile, Giken is an “award-winning engineering company founded in 1964 (which holds) numerous patents in Japan, South Korea, and the United States.”

The Forester GT Edition, predicated on the top-spec 2.0i-S with EyeSight, gets a host of design changes and modifications such as a front bumper lip extension, side skirts, roof spoiler, and rear bumper lip extension. It also receives new 18-inch bespoke alloy wheels, and a unique seat-leather design.

The variant sports a head unit with an eight-inch display for its audio system boasting Apple CarPlay and Android Auto compatibility, and a Superview Around Recognition 360-degree monitor system. This Forester also banners four “hallmark” Subaru Core Technologies: Symmetrical All-Wheel Drive, Boxer Engine, Subaru Global Platform, and EyeSight Driver Assist Technology. All told, it has more than 100 safety features.

In a speech during the launch held at Subaru Pasig last Wednesday, Glenn Tan, deputy chairman and managing director of Tan Chong International Ltd. (which owns the Motor Image Group of Companies) averred, “The car is now more stylish and sleek. It’s specially made for customers here who want to stand out in a crowd and defy convention. This is an example of how we’re constantly offering more choices for Filipino customers.”

He added during a subsequent press conference that, with the GT Edition, the company is hoping to bump up Forester sales by 40%. The GT Edition package will not be available as a retrofit to existing vehicles. Replying to a question from Velocity, Mr. Tan explained that the GT Edition, only distributed in this part of the world, addresses the Asian market’s preference for “more sporty-looking” automobiles — which shows up even in the design of MPVs (multi-purpose vehicles).

The Subaru Forester 2.0i-S EyeSight GT Edition is powered by a 2.0-liter direct fuel injection, horizontally opposed, four-cylinder engine developing 156ps and 196Nm. It is available to order at all Subaru showrooms nationwide, and comes in Crystal Black Pearl, Crystal White Pearl, Dark Gray Metallic, Ice Silver Metallic, Crimson Red Pearl, and Sepia Bronze Metallic. The vehicle is priced at P2.12 million.

PhilRice to train more farmers in higher-value production methods

THE DEPARTMENT of Agriculture’s Philippine Rice Research Institute (PhilRice) said it will bring its agroenterprise development program to more than 3,000 new farmers to promote higher-value products like special varieties of rice and byproducts.

The Rice Business Innovation Systems (RiceBIS) program lead, Aurora C. Corales, said Phase II involves partnerships with farmer organizations in eight new locations.

The program has eight current sites. Each new site hopes to engage at least 400 farmers. The 21 farmer organizations currently involved in the program produce mushrooms, brown rice, special rice, and rice brew.

Participating farmers receive training in production, processing, organization building and management, and agripreneurship.

“Producing rice is more profitable with (a) guaranteed market. In RiceBIS, we encourage farmers to engage themselves in profitable rice and rice-based enterprises by teaching them how to market their products in groups and how to develop enterprises and add value to their products,” Ms. Corales said.

Farmers who joined RiceBIS have reported increased yields of 1.24 tons per hectare (t/ha) during the dry season. The average postharvest losses were also cut by 14.81% during the 2019 wet season.

The program targets to increase yields by 1t/ha in irrigated areas and 0.5t/ha in rain-fed areas.

Participants are also introduced to combine harvesters which reduce farm production costs by 30% and limit postharvest losses by 12%.

RiceBIS also involves the Agricultural Training Institute (ATI), Philippine Center for Postharvest Development and Mechanization (PHilMech), DA regional offices, and local government units. — Revin Mikhael D. Ochave

Global fashion brands face EU crackdown to clean up textiles

EUROPE’S fashionwear manufacturers and importers may face stricter environmental rules under a push to clean up textiles production.

In a fresh sign of the European Union’s ambitions to expand its green regulatory footprint around the globe, the bloc’s environment chief vowed to zero in on the apparel industry to ensure that it avoids using harmful chemicals and wasting water.

Environment Commissioner Virginijus Sinkevicius called textiles the “new plastic” when it comes to trash. Draft EU rules will aim to require information on clothing labels about the resources used in manufacturing and set sustainability obligations for producers seeking access to the €500-billion ($567-billion) European single market for textiles and apparel, he said.

“We’ll definitely go into labeling,” Sinkevicius said in an interview in Brussels where he announced a wide-ranging action plan on Wednesday. “But a major thing is product policy — what is sold on the EU market.”

Already vowing to lead the worldwide fight against greenhouse gases blamed for climate change, Europe is gearing up for a parallel crackdown on earthbound pollution.

The EU announced in December an unprecedented “Green Deal” to become the first climate-neutral continent through an economic overhaul that will affect industries ranging from energy to agriculture.

The new “circular economy” initiative covers industries ranging from textiles and construction to electronics and batteries. It sets the stage for months of work by the European Commission, the EU’s regulatory arm, on detailed proposals that EU lawmakers would need to approve in a process lasting many more months.

The portion of the plan dealing with textiles has the potential to affect numerous apparel companies that rely on low-cost Asian countries including China, Vietnam, and Bangladesh as production sites.

SOFT POWER
It would be a further example of how the EU, the world’s most lucrative single market, deploys its rule-making authority to exert soft power over businesses across the globe. A previous landmark example of this occurred in the mid-2000s when, during three years of deliberations, the EU pushed through tougher chemical rules over the resistance of the industry and trade partners.

The 29-year-old Sinkevicius downplayed the prospect of conflict with textile manufacturers and importers, saying many companies now see business opportunities in tighter environmental regulation.

“We will need to work with the companies and work with their value chains,” he said. “Companies need to change their value chains. That’s the most important.”

Sinkevicius, who comes from Lithuania, said that EU national governments would have to step up enforcement of any new environmental legislation covering the textiles industry to ensure the bloc’s credibility. “The commission will be very vocal on implementation — on filling the implementation gap,” he said.

Sinkevicius signaled that the future EU labeling framework for textiles would resemble decade-old European “eco-design” legislation for improving the energy efficiency of household appliances like refrigerators and televisions. These rules, which include labeling requirements, have helped cut EU electricity consumption by the amount of power that Italy uses annually, he said.

“Many companies claim that they give you green textiles and so on, but we will try to say what is really green,” Sinkevicius said. “It’s about consumers making smart choices.” — Bloomberg

Motorcycle taxis halted for social distancing

By Arjay L. Balinbin
Reporter

THE government has ordered the suspension of the operations of motorcycle taxis such as Angkas (DBDOYC, Inc.), JoyRide (We Move Things Philippines, Inc.) and Move It (We-Load Transcargo Corp.) in line with President Rodrigo R. Duterte’s “community quarantine” order in Metro Manila.

According to the guidelines of the Department of Transportation task group on social distancing and community quarantine, the pilot implementation of motorcycle taxis is “suspended or prohibited.”

The decision is in view of Mr. Duterte’s directive placing Metro Manila under a “community quarantine” from March 15 to April 14 to contain a novel coronavirus that has killed at least eight people and sickened 90 more in the Philippines.

Angkas, JoyRide and Move It said their passenger services in Metro Manila would be suspended starting March 15.

They said the suspension notice does not cover their delivery services in Metro Manila.

“As safety has always been our top concern, we enjoin everyone to please ‘DO YOUR PART’ by cooperating with the government and strictly following guidelines in order to prevent the spread of the virus: observe social distancing, avoid unnecessary travel and going to crowded places, keep yourselves and surroundings clean and sanitized, always wash hands thoroughly, and immediately get medical attention if you have symptoms,” Move It said in a statement on Sunday.

The Transportation department has set a passenger limit for taxis and transportation network vehicle services at four, including the driver.

UV Express should not have more than six passengers including the driver.

Old and new jeepneys should not have more than one half of their regular capacity including the driver. Standing is not allowed.

Bus passengers should not be more than 25 including the driver and the conductor.

As for the rail sector, trains will be loaded at reduced capacity.

Passenger concentration in station platforms, concourses, and elevators will also be reduced.

The “one seat apart” rule should also be observed.

The Department of Health reported 34 more infections on Saturday, bringing the total to 98.

The Palace has released a memo extending class suspensions until April 15 and detailing quarantine and social distancing measures for the metro.

Under the rules, mass gatherings including movie screenings, concerts, sporting events and other entertainment activities, community assemblies and nonessential company gatherings will be banned.

The movement of people will be limited to accessing basic goods and work, while police and quarantine officers will be present at border points.

Mitsubishi Xpander Cross has more ‘SUV-like’ qualities

By Kap Maceda Aguila

IT WAS touch and go, but the threat of COVID-19’s further spread in the metropolis finally ended the hope of the planned formal launch of the Mitsubishi Xpander Cross last week. In a letter sent out to the media, Mitsubishi Motors Philippines Corp. (MMPC) said it “decided to cancel the scheduled Xpander Cross mall display in Glorietta 2, Activity Center. This decision is made to prioritize the health and safety of the public, our employees and dealer partners. MMPC is one with the effort of the Philippine government to contain the spreading of the virus.”

Indeed, public safety should always come first, but even as we wait to see the new variant of the Mitsubishi Xpander in the sheet metal, we get a glimpse of what the Cross is all about.

At its core, the Xpander Cross sees the “family-friendly seven-seater” multi-purpose vehicle getting more SUV styling — in effect straddling or even “crossing over” the two genres. Said MMPC Marketing Communications Senior Manager Mark Parulan to Velocity: “The Xpander Cross will be the new top-of-the-line variant in the Xpander lineup. We believe that with the new features offered by the Cross model, it is a better option for our customers who are looking for a sportier and more SUV-like vehicle that does not compromise the car like feel and affordable pricing.”

First introduced in the Philippines in 2018, the Xpander quickly gained a following and moved 13,494 units in its first year. That number now stands at 36,168 units, with the MPV accounting for a hefty 30% of MMPC sales. The company reports that the Xpander is also the best-seller in its category, and has garnered industry awards on its way to the top.

“With the entry of the Xpander Cross (and) its added features, we see renewed potential to the already successful Xpander nameplate,” reiterated MMPC President and CEO Mutsuhiro Oshikiri in a company release.

Still bearing Mitsubishi’s now familiar Dynamic Shield design, the Xpander Cross is given a skid plate, LED headlights and fog lamps, 17-inch alloy wheels, wheel arch molding and side body garnish, and a roof rail.

In addition, Mr. Parulan reported, “The “Xpander Cross has class-leading 225mm ground clearance that is higher than some SUVs available in the market. This is a great compliment to (its) new robust design anchored on a spacious and comfortable interior, driving comfort, a tough and luxurious look, and the strong and durable reputation of the Mitsubishi brand.”

Powering the MPV is the reliable 16-valve, DOHC 1.5-liter gasoline engine of the line. Mitsubishi asserts that, “thanks to high-performance sound absorbing and vibration blocking materials installed in the engine, the Xpander Cross is the top level of its class (with) near 80% articulation index.” The articulation index is an indication of how much speech within the vehicle cabin can be heard while the automobile is in operation.

The Xpander Cross has a black dashboard with brown accents, while its seats are swathed in two-tone leather. The head unit features a seven-inch touchscreen with reverse camera. As with other variants, it has configurable seats — the second- and third-row seats can be folded flat with no gap — to accommodate cargo and other payload.

When asked if there will be other variants coming in the future, Mr. Parulan said, “We are constantly looking for ways to improve our products and satisfy the needs of our customers. The development and release of new products and variants are focused on customer experience and feedback.”

The Mitsubishi Xpander Cross is priced at P1.255 million and is available in White Pearl, Sterling Silver Metallic, Graphite Grey Metallic, and Sunrise Orange Metallic. For more information, visit www.mmpc.ph.

Rates of Treasury bonds, bills to drop on demand for gov’t papers

RATES OF government securities on offer this week will likely inch lower amid strong demand for safer assets as the coronavirus disease 2019 (COVID-19) pandemic continues to fuel uncertainties, spooking investors.

The Bureau of the Treasury (BTr) will offer P20 billion via Treasury bills (T-bills) on Monday, broken down into P6 billion each for 91- and 182-day T-bills and P8 billion in 364-day papers.

On Tuesday, the government is also looking to raise P30 billion via the issuance of fresh seven-year Treasury bonds (T-bonds).

Dino C. Aquino, vice-president and Fixed Income Trading head at Security Bank Corp.’s Asset Management Group, said the rate for the seven-year tenor might settle within 4.5-4.75%, while yields for the T-bills might “be flat to lower by around 10-15 basis points (bps).”

He said demand for the seven-year papers, however, will be mixed as some players want to take advantage of assets with low prices, while others could maintain a wait-and-see attitude amid rising uncertainties caused by the pandemic.

“Demand may be mixed, we might see some bottom fishing but at the same time, we might see a lot of investors staying on the sidelines because there are still concerns regarding the coronavirus scare that’s happening globally,” he said.

He said in a risk-off sentiment scenario, a steeper yield curve can be observed as long-term papers are being sold off which then drives yields up.

“On a risk-off a scenario, there’s usually steepening on the yield curve where the long-end (papers) are actually being sold off, as evidenced by this week where the 20-years is traded as high as 5.1% from a low of this Monday early (last) week 4.5%, that’s about a 60 bps retracement from the lows,” he said.

Another trader shared the same sentiment, saying the papers could fetch yields lower by at least 10 bps than current levels and demand to government securities will still be strong.

The last time the Treasury offered seven-year papers was on Jan. 21, where the BTr only awarded P27.2 billion out of the P30-billion program at an average rate of 4.732%, even as the offer was almost twice oversubscribed.

Meanwhile, last week, the P20 billion in T-bills the government offered was fully awarded amid lower rates, with the 91-, 182- and 364-day papers fetching average yields of 3.024%, 3.312% and 3.588%

At the secondary market on Friday, the seven-year T-bond was quoted at 4.512%, while the 91-, 182- and 364-day T-bills fetched yields of 3.124%, 3.391% and 3.654%, respectively, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

Amid rising confirmed cases, President Rodrigo R. Duterte on Thursday placed the National Capital Region (NCR) on “community quarantine” which prohibits land, domestic air and sea travels to and from Metro Manila for one month starting Sunday until April 14 as the government intensifies its efforts to contain the disease.

However, workers outside Metro Manila and other business-related trips are exempted from the ban, provided they can present proof of employment.

The Department of Health reported additional 13 confirmed cases on Saturday evening, which brought the total number of individuals that tested positive for COVID-19 in the Philippines to 111 so far. The death toll is currently at eight.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via T-bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — B.M. Laforga

French sugar group Tereos asks suppliers for price reductions

PARIS — French group Tereos, the world’s third-largest sugar maker, has asked regular suppliers for price reductions to help it cope with tumbling sugar prices, letters sent to suppliers showed.

Two letters seen by Reuters indicated the firm had requested price cuts of 7% and 10%. Tereos said the reductions it requested differed between suppliers but the firm did not give figures or name the suppliers it had contacted.

Like many European peers, Tereos has felt pressure from sliding global sugar prices coinciding with a surge in supplies, partly due to the European Union’s move to scrap production quotas in 2017.

“The economic circumstances since the end of the quotas remain difficult, thus creating unpredictable conditions,” a letter to one supplier said.

“This is why … we ask you exceptionally to grant to Tereos a price reduction of 7% compared to the current prices between our two companies in the form of tariff reduction or any other form of discount in order to allow Tereos to get through this period.”

A letter to another supplier had the same wording, but requested a 10% rebate.

Tereos said in an emailed statement that the level of rebate was personalized for each supplier.

“The idea is to regularly re-launch rounds of (re) negotiation with our suppliers, to ensure that we have the best possible purchasing conditions,” the sugar maker said. “It has nothing to do with alleged financial difficulties.”

The letters said that a cut in costs was a key element of its wider plan called Ambitions 2022, which aims to improve Tereos’ economic performance across all its activities.

“In the economic context we are going through, it is almost certain that no supplier who has received this letter will give a favorable response,” said the chairman of a company which received a Tereos rebate request. He asked not to be named.

Reuters was unable to independently establish how other suppliers planned to react to the request from Tereos.

In its emailed statement, Tereos said: “We are launching this process after the repayment of the second half of our bond loan at the start of the year, and after the publication of the quarterly results at the end of December.”

Tereos has posted losses for two years running but said last month it expected improved results in the year ending March 31, helped by a rebound in sugar prices and strong ethanol demand.

But sugar prices resumed have their slide due to uncertainty created by the fast-spreading coronavirus. The oil price rout is also expected to increase supply as producers are tempted to turn away from ethanol.

Tereos’ debt stood at 2.91 billion euros on Dec. 31, 2019 versus 2.69 billion on Dec. 31, 2018.

French competitor Cristal Union said last year it would halt output at two factories due to the sugar crisis and Germany’s Suedzucker also said it would stop two units of its French branch Saint Louis Sucre.

Tereos has repeatedly said it had no plan to close sugar plants in France.

Helped by its sugar cane activities in Brazil, Tereos is the world’s third largest sugar maker by volume and a major ethanol producer. The group had sales 4.4 billion euros last season. — Reuters

Rolex opens a new boutique sporting the brand’s new look

THE WORLD continued to tick on for wearers of Rolex as guests flooded into the Rolex boutique at the Podium in the Ortigas Center a few days before the announcement of the community quarantine spurred on by the COVID-19 pandemic. The new boutique is the first of its kind.

There were very few, if any, handshakes, and some people exchanged bows or fistbumps instead. One lady was straightforward and said to another, “Oh, I can’t kiss you.”

The store is special in that it is the first Rolex store following a new concept by the Swiss watch company. The company, first founded in England, moved to Switzerland in the early 20th century for tax reasons. The brand went on to become one the largest producers of Swiss-made certified chronometers, with over 400 patents in its name. The brand is well-known for its Submariner, Daytona, and Datejust pieces, and some of the world’s most expensive watches sold at auction carry the Rolex brand. It has been in the country for 38 years, according to a speech by distributor Lucerne’s Managing Director, Emerson Yao. “The store behind me is the latest concept of Rolex being implemented globally.”

The brand’s familiar green colors were all over the 113 sqm. store, from the pedestals on the display cases to a high green glass wall. Mr. Yao did point out to BusinessWorld how the chandelier resembled a watch’s crown. Being the first distributor to enjoy the new concept by Rolex, we asked Mr. Yao why the country was extended such a privilege: “A lot has to do with timing. Maybe the concept was fresh out of the company, and we were the next to be renovated. But of course, I’d also like to believe that because we have this beautiful facade and high ceiling, they can implement it in this place.”

A guest at the opening was the Ambassador of Switzerland, Alain Gaschen. “Since these are times of worry and concern, maybe I will start by sharing some good news about the Swiss business community in the Philippines. At the embassy, we justy launched a survey and we found out that two-thirds of the Swiss companies are willing to invest and to expand their presence in the Philippines.

“That was before the coronavirus.

“This morning, we presented the results of the survey to the business communities. The good news again is that the outlook and the climate remains very positive,” he said. “There is good reason for optimism.” — Joseph L. Garcia

Coronavirus will change how we shop, travel and work for years

EVERY economic shock leaves a legacy. The deadly coronavirus will be no different.

The great depression spurred a “waste not want not” attitude that defined consumer patterns for decades. Hyperinflation in the Weimar Republic still haunts German policy.

The Asia financial crisis left the region hoarding the world’s biggest collection of foreign exchange. More recently, the 2008 global financial crisis drove a wedge through mature democracies that still reverberates, with workers suffering measly pay gains in the decade since.

This time it’s a public health emergency that’s shaking up the world economy. In just a matter of weeks, people in affected areas have become accustomed to wearing masks, stocking up on essentials, canceling social and business gatherings, scrapping travel plans and working from home. Even countries with relatively few cases are taking many of those precautions.

Traces of such habits will endure long after the virus lockdowns ease, acting as a brake on demand. On the supply side, international manufacturers are being forced to rethink where to buy and produce their goods — accelerating a shift after the US-China trade war exposed the risks of relying on one source for components.

In the white-collar world, workplaces have amped up options for teleworking and staggered shifts — ushering in a new era where work from home is an increasing part of people’s regular schedule.

“Once effective work-from-home policies are established, they are likely to stick,” said Karen Harris, managing director of consultancy Bain’s Macro Trends Group in New York.

Universities stung by travel bans will diversify their foreign student base and schools will need to be better prepared to keep educating online when breakouts force their closure.

The tourism sector is seeing the most drastic hit, with flights, cruises, hotels and the web of businesses who feed off the sector struggling. While tourists will no doubt be eager to explore the world and relax on a beach again, it may take some time before the industry that hires about one in 10 people recovers.

The virus has also turned the economic policy outlook on a dime and created new priorities. Central banks are in emergency mode again, while governments are digging ever deeper to find money to prop up struggling sectors. Hygiene is soaring up government and corporate agendas — indeed, Singapore already plans to introduce mandatory cleaning standards.

“This outbreak is unprecedented in terms of its nature of uncertainty and associated social and economic impact,” said Kazuo Momma, who used to be in charge of monetary policy at the Bank of Japan. Tighter borders controls, wider insurance coverage and lasting changes to working and commuting patterns will be just some of the micro-economic changes that will endure long after the virus, Momma says.

In China, where the virus first erupted in Wuhan late last year, the top legislature has already imposed a total ban on trade and consumption of wild animals amid scientists’ warnings that the deadly coronavirus migrated from animals to humans. Additional strict hygiene rules are expected that will accelerate a push by wary consumers to online shopping, similar to how the 2003 SARS outbreak changed shopping habits as people avoided the mall.

Analysis by Bain & Company found that China will see pronounced immediate changes in health care as more and more rudimentary checkups and transactions are conducted through online channels to avoid the risk of contamination in crowded waiting rooms and wards. — Bloomberg

So, you’ve decided to opt out of a casa?7 basic things to check in your vehicle

Text and photos by Wee Gamboa

IF IT isn’t broke, why fix it? Most of us use this line all the time when it comes to maintaining a car. If it’s not visibly damaged or inoperative altogether, we tend to think that a car part shouldn’t be up for replacement.

You probably think that unless you hear noises, clanks, or something off, then your vehicle is okay. That belief is not uncommon, but it’s a malpractice most of us are accustomed to and pretty much normal for any car owner whether you have a luxury or affordable ride.

But anything mechanical will eventually need servicing because of wear and tear over time. Asking on social media may help at times but people on the other side of the monitor can only see one side of the story. In the end, you won’t get the answer that you need. Asking 10 people may result in 20 different answers and, believe me, I learned it the hard way. The best way to attend to your car is by bringing it to the shop regularly. Diagnosing a car can be like going to the doctor — with first, second, and sometimes third opinions. If all these opinions match, then that’s pretty much nails what the problem is.

SHOP TALK
But the root of the matter is this: How can you tell that a repair shop is a reputable one and the right one for you and your treasured vehicle?

First, the mechanic (or chief/head mechanic) should know how to drive and should own a driver’s license. To my mind, a technician without a driver’s license should not diagnose cars. If they don’t own one, how would they be able to test-drive your car?

Secondly, the shop should be servicing the right kind of vehicles. If you go to a shop that works on jeepneys and trucks, obviously, you’re in the wrong place.

Car manufacturers always remind their customers to have their cars undergo regular checkups and maintenance for a worry-free driving experience. These are the basic things to check out if you’ve decided to forego a casa.

Battery. A dead battery can be frustrating. Make sure you replace your battery before the warranty expires. Failure can strike anytime. The point is, you’ll never know. A faulty battery can be determined with the use of aftermarket battery devices such as the CTEK Battery Sense. This way you can monitor your car’s battery life.

Belts. Not replacing the timing belt on time may cause severe damage to your engine — and even need an overhaul. Belts should be replaced as often as your shop suggests. It’s much better if you know how to inspect them yourself.

Oil. Oil protects your engine by staying between the moving parts — keeping them from wearing down and keeping away corrosion caused by condensation. Depending on your preferred oil brand, most oil changes should be done after 5,000 kilometers. Fully synthetic ones require changing at around 10,000 kilometers range.

Air filter. Some shops suggest to dust off the dirt from your air filter and place it back in your filter box. But replacing your air filter regularly will always give you the best results. Better yet, aftermarket filters like K&N can save you the trouble of purchasing over and over again after every oil change. The said filter can last your car’s lifespan as it requires only cleaning every 50,0000 miles (as posted in the K&N warranty slip). It should save you lots of money in the future.

Transmission. Regular checkups on and flushing of your transmission will keep it in good shape, as it is an integral part of any vehicle.

Tires. These can really be a pain in the wallet because high-quality ones do not come cheap. Make sure your car wheels’ alignment is checked regularly, as misalignment can decrease the service life of your tires dramatically. Also, replacing tires at the right time will not save you money, but it will save your life.

Brakes. You can never have too much braking. So, make sure to have your brakes checked regularly. Having a worn-out brake pad will destroy your rotors, resulting in more expensive repairs.

Having car trouble usually happens during the most inconvenient time — like when you’re on a date, going to work, or on a family vacation. All these can be prevented with the help of proper and regular service on your vehicle. Adhering to a preventive maintenance schedule even if your car is out of warranty is always a good idea. Caring for your car the right way shouldn’t end just because you’ve decided to forego the casa.

Currency counterfeiting declines

CASES OF currency counterfeiting dropped in 2019, with the central bank ramping up efforts to curtail these illegal operations.

The rate of currency counterfeiting in the Philippines stood at 11 parts per million (PPM) banknotes in circulation in 2019, down compared to the 12.9 PPM seen in the previous year, the Bangko Sentral ng Pilipinas said in a statement.

The central bank said its drive against counterfeiting with the help of other law enforcement agencies has resulted in the arrest of eight suspects and the confiscations of fake bank notes with notional value of P473,500.

The BSP said it has filed criminal cases and arrested 67 counterfeiters from 2015 to 2019.

“The BSP encourages the public to report any information on counterfeiting of Philippine currency to any law enforcement agency for appropriate action,” the central bank said in a statement.

“Moreover, to ascertain the genuineness of Philippine banknotes, the BSP advises the public to carefully feel, look and tilt their banknotes to check for security features,” it added.

Under Republic Act 11211 or the New Central Bank Act, the BSP has the sole power and authority to issue banknotes in the country.

It is also vested with the police authority to investigate, arrest, and conduct searches and seizures in accordance with law to keep the integrity of the local currency.

In 2018, the BSP tapped the National Bureau of Investigation in a drive to crack down on peddlers of fake money on social media.

Its facility to print bills and mint coins is at the BSP Security Plant Complex located along East Avenue in Quezon City.

In December last year, the BSP launched the coin version of the P20 denomination for cost-efficiency. It has likewise started minting the enhanced P5 coin under the BSP’s New Generation Currency coin series in a move to prevent confusion with other coins. — LWTN

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