MANILA ELECTRIC Co. (Meralco) has extended the no-disconnection policy until end-January next year for consumers who could not settle their unpaid power bills, House Speaker Lord Allan Q. Velasco said on Sunday.
In a press release, he said Meralco President Ray C. Espinosa told him that the distribution utility decided to allow consumers to pay their electricity bills at a later date without getting disconnected, after “careful evaluation and in consideration” of the lawmaker’s request to extend the grace period.
Mr. Velasco said he sent a letter on Nov. 30 to Mr. Espinosa requesting the power distribution utility to extend the no-disconnection period until January 2021 to ease the burden of consumers in coping with the global health emergency.
The Meralco executive then approved of Mr. Velasco’s request in a letter dated Dec. 14.
Mr. Espinosa, as quoted in the press release, said that the extended grace period would “benefit more than three million Meralco customers with consumption of 200 kilowatt per hour and below during the billing month of December 2020.”
The number of customers that stand to benefit from the extension make up 47% of Meralco’s customer base, he said.
Mr. Espinosa’s statements were confirmed by the Meralco team on Viber.
For Mr. Velasco, the longer grace period will provide reprieve to those who are reeling from the effects of pandemic as well as natural calamities. “This good gesture on the part of Meralco will go a long way in helping our kababayans feel secure this Christmas,” he said.
He also thanked Mr. Espinosa for “showing true bayanihan spirit and empathizing with the plight of our countrymen.”
In June, Meralco said that it was considering whether to extend the moratorium on disconnection notices for customers who still could not settle their bills.
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., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang
THE PESO could appreciate against the greenback this week on the back of holiday flows and optimism on the timely passage of the 2021 budget.
The local unit finished trading at P48.085 versus the dollar on Friday, losing four centavos from its P48.045 close on Thursday, data from the Bankers Association of the Philippines showed.
It also weakened by 1.5 centavos from its P48.07-per-dollar close on Dec. 11.
The peso depreciated versus the dollar after faster inflation forecasts from the Bangko Sentral ng Pilipinas (BSP), which caused risk-off sentiment among investors, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.
Benchmark interest rates were maintained by the central bank at its last policy meeting on Thursday, as expected. However, the inflation forecasts for 2020 and 2021 were revised upward to 2.6% (from 2.5%) and 3.2% (from 2.7%), respectively.
BSP Deputy Governor Francisco G. Dakila, Jr. said they factored in the quicker increase in food prices and the recent uptick in global oil prices for the revised forecasts.
Headline inflation in November picked up to 3.3%, quicker than the 2.5% in October and the 1.3% a year ago. This is also the fastest in 21 months or since the 3.8% logged in February last year.
For this week, Mr. Ricafort said the market will closely watch budget developments, which will impact foreign exchange trading.
“Major catalysts include President [Rodrigo R.] Duterte’s final approval of the 2021 national budget expected on or before Christmas as well as the extension of the 2020 national budget validity,” he said in a text message.
Next year’s P4.5-trillion national budget has been transmitted to the Palace and is awaiting Mr. Duterte’s signature.
Meanwhile, external developments including the progress of a US fiscal passage paired with seasonal currency flows will also be the theme of trading this week, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.
Legislators in the US worked over the weekend to finish discussions on a $900-billion pandemic response package, Reuters reported. The Senate held an unusual weekend session in a bid to settle the package, which, if passed, will be the biggest since the relief deals worth $4 trillion legislated in the early weeks of the pandemic.
Among settled issues so far is the inclusion of a one-off $600 cheques for most Americans, unemployment benefits worth $300 a week, help for state distribution of vaccines as well as assistance for small firms.
For this week, Mr. Ricafort gave a forecast range of P47.95 to P48.15 while Mr. Asuncion expects a tighter trading band of P48.00 to P48.10 per dollar. — L.W.T. Noble with Reuters
TECHNOLOGY firm Cisco Systems, Inc. is in talks with Makati and Pasig cities for a “smart city” project.
Cisco Managing Director for the Philippines Karrie C. Ilagan, in an online press briefing on Friday, said that the company was in discussion with various cities, including Pasig and Makati, to scale up a project connecting local government units (LGUs) to technology.
“We are in discussion with a number of LGUs. Where we are most advanced is actually in Baguio City,” she said.
The Baguio smart city partnership with Cisco includes the development of a tech-based command and control center. The city plans to use technology to manage its assets and develop contactless transaction methods.
Cisco on Friday launched its digitization program Ugnayan 2030 as it works with the private and public sectors to improve internet connectivity and cybersecurity.
The company in a press release said that the campaign has several components, including a partnership with PLDT, Inc. to develop an incubation platform, where industries can create relevant use cases for 5G technology.
The Cisco partnerships will also work on a study on digital technology in healthcare, communications solutions for healthcare professionals and disaster response, and connectivity solutions for education. The firm will also help assess government cybersecurity risks and management in pandemic response.
The firm, through the project, aims to address uneven access to information and communications technology (ICT), weak ICT adoption, and limited expertise and manpower. — Jenina P. Ibañez
THE FEDERAL Reserve’s window to tinker with its bond-buying program may be narrowing, meaning there’s a risk that Treasury yields will climb faster than many predict.
At its final policy meeting of 2020, the US central bank just decided not to tilt more purchases toward longer maturities — something that could’ve kept a lid on longer-term interest rates. And while the Fed didn’t rule out eventually making such a change, a healthier US economy — possibly due to more fiscal stimulus if Democrats take control of the Senate after runoff elections on Jan. 5 — could make it harder for the central bank to justify, according to some investors.
The mere possibility that the Fed might act more overtly to anchor long-end borrowing costs at some point has helped cap yields at that part of the curve. It’s a big factor behind why the 10-year rate stayed below 1% this week even amid progress on stimulus talks and after the Fed’s decision to defer action. If that policy option were to disappear entirely, that could well provide scope for rates to move up.
Shifting to longer-term bonds “becomes harder practically and politically and makes less sense to the market” as 2021 wears on, said Thomas Graff, a portfolio manager who helps oversee $100 billion at Brown Advisory in Baltimore. “The market is going to say, ‘Hold up, interest rates are rising because the economy is healing,’ and that won’t be viewed favorably.”
The Fed wants to keep long-term rates down because that reduces borrowing costs for individuals and businesses. A rise could derail any recovery from the current pandemic-induced economic slump. But the central bank would be less likely to lean against a rise in yields if it were a justified response to an improving economy and higher inflation.
The benchmark 10-year yield — currently around 0.95% — is seen ending 2021 at 1.25% and this year just below 1%, according to the median estimate in a Bloomberg survey of forecasters. Annual US economic growth, meanwhile, is predicted to rebound to about 4% in the coming year.
One potential trigger for a shift higher in rates could occur in early January with the results of two Senate elections in Georgia. If both Democratic candidates win, the party would control Congress as well as the White House, significantly improving prospects for boosting US government spending and Treasury issuance. Central bank policy makers would then get to evaluate all that at the next Federal Open Market Committee meeting on Jan. 26-27.
How the market behaved on Dec. 16, the day of the Fed decision, provided some clues about the dynamics currently at work, with the curve engaging in brief bouts of steepening following news about stimulus progress and what central bankers did. But with Fed Chairman Jerome Powell choosing not to completely rule out a shift toward buying more longer-term debt — known as extending the weighted average maturity, or WAM, among pros — and expectations that fiscal stimulus may be at the more moderate end of previous negotiating ranges, the gap between 2-year and 10-year debt largely held to its recent range.
“Given where financial conditions are at now and expectations for a recovery in the economy, it doesn’t make sense to use WAM at this point,” said Charles Ripley, an Allianz Investment Management strategist based near Minneapolis. “But other risks could present themselves and it’s hard to pinpoint exactly when the Fed might step in,” though a sudden rise in the 10-year rate above 1.5% might raise alarm.
Still, “the probability of a WAM extension from the Fed decreases the further along the recovery is,” he said. “For market participants, this means the Treasury curve can continue to steepen.”
Even without additional fiscal stimulus, many are tipping toward forecasting a gradually improving US economy in 2021 as the rollout of coronavirus vaccines enables a move toward normality. That’s the kind of economic path that could also set the stage for a steepening of the curve — and which, some say, could complicate the Fed’s task of knowing when or if it should offset an unruly rise in rates.
All things considered, “the Fed will have the pandemic-related uncertainty to justify defending the long end of the curve” if needed, says Mark Heppenstall, chief investment officer of Penn Mutual Asset Management, which manages $30 billion of mostly fixed-income assets. And that’s true, he says, “even if economic growth surprises to the upside.” — Bloomberg
The country’s most-anticipated automotive spectacle pivots to digital
FOR A YEAR largely bereft of things to rejoice about, the Manila International Auto Show (MIAS) was both an escapist distraction and proof of life for the country’s automotive industry.
At the start of the pandemic, organizers had understandably nixed the planned April staging. For motoring enthusiasts and, to be sure, motoring journos, MIAS has always signaled the start of summer. While many troop to the beaches, we always have MIAS.
The crush of people gawking at the latest vehicles, the brave souls seeking selfies with the lady models, the pulsating musical numbers, and a glimpse of auto executives and celebrities — all of that was swept by the wayside this year.
Last Wednesday though, MIAS (now bannering the name “MIAS Wired”) was back with a mighty shift to digital. Its organizers understandably didn’t want the year to pass without the country’s most awaited and longest-running motoring spectacle.
Said co-organizer Jason Ang, in an exclusive interview with “Velocity:” “MIAS Wired was designed to bring the feel and excitement of the live auto show to the virtual space. Mapped out with high-resolution cameras, the 3D booths are the closest we can have MIAS visitors to the onsite show this year. The 17 car brands that joined welcomed the chance to have a full virtual showroom within MIAS Wired.”
It was certainly a different experience to have waited for and sat through the opening ceremonies last Dec. 16 in front of my laptop screen instead of at the World Trade Center in Pasay City. Familiar MIAS faces such as our “Velocity” columnist James Deakin (who hosted again this year), Automobile Association Philippines President Gus Lagman, and, of course, Worldbex Services International Founding Chairman Joseph Ang led the proceedings, with guests from government including Metropolitan Manila Development Authority (MMDA) Chairman Danilo Lim and House Speaker Lord Allan Velasco. President Rodrigo Duterte also sent a letter expressing his support to MIAS.
Speaker Velasco said, “We must use this platform to its fullest gear to salvage the economy,” and described the pivot to digital as a “new way of fulfilling the passion for cars (through) a one-of-a-kind virtual marketplace.” The lawmaker also said that the country is undergoing “recession like the rest of the world… we need support from consumers and enthusiasts.”
Gus Lagman described MIAS Wired similarly as “fulfilling the need of car enthusiasts and motorists,” and expressed gratitude to the organizers that “despite the problems of this year, they’re able to conduct a virtual car show.”
Meanwhile, MMDA’s Danny Lim reminded the public of the need for “more responsible car owners for (government) programs to work.”
To be honest, there was hardly any unveiling at the MIAS. Rather, highlighted models were previously launched earlier in the year. I suspect this is a function of the rescheduling. Remember, of course, that we’re at the end of the 2020 (yay!), so most, if not all, brands have rolled out their planned releases for the year. Still, as I’ve always said, we’ll take all the wins and triumphs we can get our hands on. During these darkest of moments, the smallest points of light shine the brightest.
Back to MIAS Wired, it’s important to think about it not just as a stop-gap, but a potential additional platform or expression of the auto show even if conditions allow the physical holding of the spectacle.
Said co-organizer Alvin Uy, “We’ll most likely continue with the virtual package for exhibitors to extend the range of the event to make it national and even international. On the national level, it helps to promote car buying in provincial dealers of the exhibitors; the international presence benefits the strong car-buying market composed of OFWs.”
Underscored Mr. Ang, “We plan to continue offering this feature even when the onsite MIAS returns, hopefully next year. We think that this type of hybrid show may be the key to getting more visitors and allowing them to connect effectively to the automakers.”
MIAS Wired also had the expected complement of activities and spectacles such as the Classic and Custom Car Competition, the Formula V1 Virtual Cup and Formula V1 Fantasy League, Road Safety Academy by JP Tuason, virtual booths, 3D showrooms, and more.
I had the honor of digitally participating in a “watch talk” with Calibre Magazine Editor-in-Chief Carl Cunanan and watch aficionado Leonard Sytat.
For sure, nothing will replace the sight, smell, and sensation of a real live event, but given the limitations that the pandemic necessitates, MIAS Wired surely delivered a spectacle that showed us we can have our cake and eat it, too — even if it is a smaller slice.
The Court of Tax Appeals denied for lack of merit the petition for review of the Bureau of Internal Revenue (BIR) over the ruling declaring as void the P1.05-billion tax assessment against Marketing Convergence, Inc. for 2010.
In an 18-page decision dated Dec. 3, the court, sitting en banc, affirmed the January 2019 ruling and July 2019 resolution of its special first division reversing and setting aside the tax assessment against the company for being assessed by revenue officers who lacked the authority to do so.
The court said the grounds raised are “mere restatements” of previous arguments and “already have been exhaustively discussed” in the previous decision.
The court upheld the ruling that the tax assessments are void as the revenue officers (RO) who audited the company’s book of accounts were not authorized through a letter of authority (LoA).
It said that an LoA was issued for the assessment of Marketing Convergence, but was reassigned twice through memorandum of assignment for other revenue officers to continue the audit. The officers assigned in the MoA found the company liable for P1.05 billion in 2010.
“Considering that the original LOA did not reflect or carry the names of the aforementioned ROs to conduct respondent’s audit and assessment pursuant to an LOA, the Special First Division correctly cancelled petitioner’s assessment,” it said.
The court also opposed the claim of the bureau that a new LoA is unnecessary in reassignment and MoAs would be sufficient pursuant to Revenue Memorandum Order No. 8-2006, saying it has ruled that revenue officers not named in the LoA is ”devoid of authority” to conduct audit investigation.
A new LoA must be issued not merely a memorandum when there is change in revenue officers, it said.
The BIR also said the Supreme Court ruling cited is not applicable to the case due to factual difference.
The court said its division did not err in applying the case where the Supreme Court interpreted Section 6(A) of the Tax Code that a valid grant of authority from the commissioner or his authorized representative is needed for an officer to conduct an assessment. The authority is through an LoA under Section 13 of the Tax Code.
The court also said the RMO No. 43-90 required a new LoA in cases of reassignment of cases to another officer.
“Considering that the FDDA (final decision on disputed assessment) dated February 2016, which was issued pursuant to an examination conducted by ROs who were not authorized to conduct such examination via LOA, the said assessment is void,” it said.
The court also said that it is allowed to resolve issues not raised by the parties, such as the issue on lack of authority of the revenue officers, contrary to the claim of the BIR that it should not have been considered by the division as it was not raised by the company in the administrative level and its original petition.
Marketing Convergence said it disagrees with the claim of the BIR that a new LoA is not required for reassignment and the case cited by the court is applicable to the case.
The BIR filed the petition for review in August 2019 and submitted the case for decision in December that year. The court referred the case to the Philippine Mediation Center-CTA for mediation, but the parties decided not to have their case mediated by the center.
Marketing Convergence filed a motion for suspension in January, saying the parties are exploring the possibility of a compromise agreement, which the bureau did not object to in its comment.
It issued a second motion in July this year to give the parties 30 more days to discuss the settlement. A resolution was then issued asking the bureau to comment. But as of October, the court said the agency failed to file any comment.
The court in November denied the motion saying it is prohibited under the Rules of Civil Procedure and the period to decide the case is about to lapse. The parties failed to submit any compromise agreement before the promulgation date, it said. — Vann Marlo M. Villegas
THE “SAND DOLLAR” was launched in October, with users coming aboard in the subsequent weeks. — FREEPIK
LONDON — It didn’t seem like a revolution.
A botanical green smoothie and a snapper fish burger, it was. In a Bahamas health-food café.
But future generations might look back at this as a pivotal moment — the first national launch of a technology that could upend commercial banking and even shake the US dollar’s status as the world’s de facto currency.
The refreshments were among the first items bought using the “Sand Dollar,” a digital currency issued by the Bahamian central bank for use across the country via an app.
“It’s instant — I get a message, and it’s received,” said Dawn Sands, owner of NRG, the café in the capital Nassau, showing Reuters via video how sales work. “Once people get comfortable and educated, I think it’s going to be big.”
While this experiment in the archipelago nation of around 390,000 people is modest in itself, it is likely being closely watched by major central banks across the world, from the US Federal Reserve and European Central Bank to the People’s Bank of China and Bank of England.
They have been looking at issuing their own digital coins, having found themselves in a tricky position as the use of physical cash dwindles.
They are wary of a blockchain-based technology like bitcoin conceived to banish central banks, but reluctant to miss the boat on a potential game-changer and cede the field to Big Tech offerings like the Facebook-backed Diem, formerly Libra.
Smaller nations such as Cambodia have also, meanwhile, forged ahead with their own projects in digital currencies, which promise to extend financial services to people currently lacking access to banking, especially in the developing world.
The Bahamian scheme offers clues for other economies on how central bank digital currencies (CBDCs) can be introduced and work in practice — from getting users on board to helping businesses avoid costly payments fees.
“Everybody is interested in it — I think it’s arguably the first step,” said Philip Middleton, deputy chairman of the OMFIF central banking think-tank in London.
“If I’m looking for lessons learned for the big boys, it’s the whole education piece — if this is successful, how have you persuaded the population to use this?”
The Sand Dollar was launched in October, with users coming aboard in the subsequent weeks.
One of its core aims is to boost access to financial services to people in the archipelago, whose complex geography of 700 islands and remote keys throws up challenges in securely distributing cash. Payments are also a key area.
At the NRG café, Ms. Sands said the technology would help smaller business avoid fees charged by credit card companies. She said she was charged around 4% on credit and debit card sales of omelettes, panini and the like: “For a small business, 4% is a very big hit.”
The virtual coin is issued by the Central Bank of The Bahamas to digital wallets held by an initial tranche of six licensed money-transfer and payment firms. Through them, people and businesses can then access, hold and spend coin via an app.
Three other companies, including a commercial bank, are undergoing checks for entry to the scheme, the central bank said, without giving further details.
The early signs are positive, though there are only $130,000 worth of Sand Dollars in circulation at present, central bank data show, compared with $508 million worth of traditional Bahamas dollars.
Interviews with the Central Bank of The Bahamas, Sand Dollar users and three of the financial firms offering the tech suggest that, so far, it is functioning as a way to pay.
“We have merchants right now that have come on board in terms of integrating it into their system for persons to be able to purchase products for them,” said Deirdre Andrews of Omni Financial Group, a money transfer firm.
“The start of it is the movement of money back and forth.”
‘SAFE IN AGE OF COVID’ To introduce the virtual currency, the central bank launched a social-media campaign on Instagram, where its workers discuss their experience of the pilot scheme.
“A key lesson is that stakeholder engagement is important,” said John Kim, general counsel for NZIA, the tech firm that developed the Sand Dollar. “You can say, ‘adoption is important,’ but people need to use it — people need to get integrated into this.”
CBDCs are different from cryptocurrencies like bitcoin, though both are based on blockchain technology. They are issued by a central bank while bitcoin is produced by “miners” solving maths puzzles, with no central authority.
They are a complete replacement for notes and coins, also differing from electronic cash used to pay with cards or PayPal, which is merely a representation of physical money. If there is a major shift from credit and debit cards to CBDCs, big payments firms and banks could see lucrative fees charged to process transactions evaporate.
Bigger tests await with other larger CBDCs, with China the most advanced among major economies with it digital yuan — something it hopes could reduce its dependence on the global dollar payment system.
The Bahamian coin also doesn’t allow individuals to hold accounts directly with the central bank — which could drain deposits from commercial lenders and shake their business models.
As such the project offers few clues to the impact of CBDCs on traditional financial firms, a key area of interest for major economies as they weight the risks of the technology.
Kimwood Mott, who is overseeing the project at the central bank, said one attraction for many business owners had been the prospect of avoiding physical cash during the pandemic.
“It’s fast, seamless and — in the age of COVID — it’s safe.” — Reuters
DAVAO CITY — The Anflo Industrial Estate in Panabo City said it signed four new locators this year, with a cold storage facility, signalling the potential of agri-industrial parks despite the pandemic.
“Throughout the year, I kept on speaking on how the Anflo Industrial Estate was one of the prime spots in our portfolio, and sure, this is what the experts were saying, they were saying all along that industrial businesses, warehousing, these were businesses that were resilient,” said Ricardo F. Lagdameo, vice president of Damosa Land, Inc., whichowns and manages the agri-industrial park.
The 63-hectare complex, accredited by the Philippine Economic Zone Authority (PEZA), is positioned for agriculture-based manufacturing and light industry.
The new locators this year are banana chip exporter Southern Harvest, Inc., PMR Pallet Ltd. Co., FoamPack, Inc., and Danish building technology licensee Connovate Philippines, Inc.
Mr. Lagdameo said the ecozone is closing the year with about 500 active workers, up from around 300 at the start of the year.
“That’s something that we are extremely happy about… despite the pandemic, people are being given job opportunities,” he said.
One locator is also expected to finish its facility by the end of the year. “So hopefully they’ll be starting their operations by January of next year,” Mr. Lagdameo said.
The cold storage facility is targeted to be running within the first quarter of 2021.
Current locators in the ecozone, which is adjacent to the Davao International Container Terminal, which is also owned by the Floirendo-controlled Anflo Management and Investment Corp., are mostly agricultural product processors and packaging firms.
Among these are Del Monte Fresh Produce Philippines,First Panabo Tropical Foods Corp., Phildutch Polymer, Inc., Davao Packaging Corp., Davao Zhenzhi Plastics Corp., Manly Plastics, Inc., CAMECO Realty Development, Fermon Corp., and Lane Holdings, Inc.
Real estate consultancy firm PRIME Philippines, in its fourth PRIME Radar Webinar last month, pointed to industrial market opportunities outside Luzon, particularly Cebu and Davao.
While Cebu is strong in medium and heavy industry, Davao’s potential is in the agro-based and food industries, the firm said.
Other ecozones in the region are the Davao Oriental Eco Industrial Park, Hijo Industrial Estates in Tagum City, and the Davao del Sur Economic Zone.
Davao City Chamber of Commerce and Industry, Inc. President Carlo B. Tria said while manufacturing and processing are primarily focused on export products, investors must also keep in mind the 25 million population of Mindanao which is in itself a significant market for consumer goods.
“You also have what we call the BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area). North Sulawesi Indonesia will need a lot of goods and so will Borneo. I foresee these areas to blossom over time so these, I believe, will be the future hot spots,” he said.
“It might make sense to at least relocate a portion of your capacity anywhere in Mindanao,” he added.
Other agro-industrial zones in Mindanao include the Phividec Industrial Estate inMisamis Oriental; the Bukidnon Agro-Resources Export Zone; one in Roxas, Zamboanga del Sur; and at least five in the Sarangani-South Cotabato-General Santos City cluster. — Maya M. Padillo
IT’S good to have lasted a long time if you’re in the trade of time — timepieces, that is.
Wizer Industries — a third generation watch distributor in the Philippines — held a press conference last week for the several brands it distributes in the Philippines (Tommy Hilfiger, Tissot, Frederique Constant, and Alpina).
The third generation is led by Wizer’s Marketing Services Manager, Rainier Jacinto. His grandfather, Ernesto, planted the seeds when he began as the exclusive distributor of brands Rado and Citizen with his company, Ercinto, then headquartered in Quiapo. Rainier’s father Ray expanded into retail in the 1990s. “We found a loophole where our dealers did not want to carry some of the higher-end models of certain brands. We couldn’t do justice for the more premium products that brands like Tissot and Alpina came out with,” said Mr. Jacinto during the press conference, held via Facebook Live.
Today the company has 22 company-owned stores and is present in 27 department stores across the country. “I think the most significant contribution I’ve made as the third generation handling Wizer Industries is pushing our brands to be present on e-commerce and to make use of social media as a cost effective way of creating brand awareness,” said Mr. Jacinto in a Viber message to BusinessWorld. Under his guidance, Wizer began to expand its presence through online shopping platforms Lazada and Zalora.
With the help of models Sam Ajdani, Jessica Yang, Hideo Muraoka, blogger Aliza Apostol, and businessmen Mikka Padua and Marco Lobregat, Mr. Jacinto discussed the brands under Wizer’s belt.
Tommy Hilfiger, the American brand known for its youthful country club vibe, first started releasing watches in 2001, with the cooperation of the Movado Group. Tissot, meanwhile, is known as a relatively affordable Swiss brand that began its story in 1853. It’s talked about for its early efforts to mass-produce pocket watches, and its innovative use of materials, apparently being one of the first to use stone, mother of pearl, and wood to make its faces.
Mr. Muraoka, while wearing his own Tissot timepiece, said during the press conference, “You can never buy back time, especially those spent with loved ones.”
Frederique Constant and Alpina, meanwhile, share a path. Alpina was born in 1883, and had been known for its suitability for mountain expeditions (which its brand name would imply). The watches have been used by pilots as early as the waning days of the First World War. Frederique Constant, meanwhile, was founded by Dutch couple Aletta Bax and Philip Stas in the 1980s, with an aim to make luxury watches at more affordable price points. According to a release, the couple, employed in Hong Kong, were travelling in Switzerland and “were amazed at the beautiful watches on display, much of which they couldn’t afford.” Those days are probably over — Ms. Bax had been rated by French-language Swiss business magazine Bilan as one of the 20 most influential women in Switzerland, and in 2002, they were able to acquire the then-ailing Alpina brand. The company has since been acquired by the Citizen watch group.
In a press release, Mr. Stas said, “We can’t compete with the brand equity that they built up over 200 years. However, we compensate with a beautiful mechanical manufacture product, at a more attractive price range.”
During the press conference, Mr. Lobregat spoke about his own Frederique Constant watch: “It’s really about doing things that matter to you. I know that some people are having a hard time figuring that out. But don’t stop. Just keep going. It’s the reason Frederique Constant appeals to me. It’s battle cry — Live Your Passion — echoes my own personal mantra.”
Meanwhile, watch expert Elias Toledo spoke about a special offering by Frederique Constant, the Perpetual Calendar Tourbillon. “There are only 30 pieces in the world, and one is in the Philippines,” he said. The watch is priced at P1.9 million. He elaborates: “When you get a perpetual calendar watch from other established brands, you’ll be paying from P8-P10 million. That’s why it’s amazing to see Frederique Constant’s version, with such complexities at a fairly reasonable price point. I think that’s the come on.”
Speaking of money matters, Mr. Jacinto also spoke about how they performed during this pandemic. In a message to BusinessWorld, he said that “At the onset of the pandemic, business was slow especially during the hard lockdown from March to May, but come September, people started spending more; maybe because they had more money saved up since they could not travel out and buy the products they would normally buy when they take a trip abroad.”
Some of the nicest things we own aren’t of much use now that the only people who see us do so through a computer screen. At the same time, watches have long passed their utility, thanks to digital technology, and except for some cases (in hospitals and the army, for example), usually serve only as accessories. But still, watches remain popular.
Mr. Jacinto explains the continuing appeal of watches. “A watch’s most basic function is still to tell time. I think with people still needing to work from home, they still need to be on time for their online meetings. Another angle could be to create a sense of normalcy for them. There are timepieces that serve as investments and, may I say, timepieces are quite resilient against economic downturns like what we see now. Despite the economies of nations not doing so well, prices for hard-to-find timepieces have remained the same or have even appreciated.
“A personal theory of mine is also because people spend so much time online now and are exposed to so many ads — we have been running a number of ads on social media platforms which redirects to our e-commerce store — that with the bombardment they end up buying out of want instead of need which is actually good for the recovery of the local retail landscape.” — Joseph L. Garcia
Smart Communications, Inc. has tapped Cignal TV, Inc. to provide satellite broadband services for areas without land-based networks.
The wireless communications firm will be using Cignal’s very small aperture terminal (VSAT) technology to offer broadband services for subscribers in areas with low to no data coverage, Cignal said in a press release on Saturday.
Smart’s VSAT services are active across the Philippines, Cignal said, including Batanes and some areas in Palawan and Tawi-Tawi.
“This partnership is aligned with our mission to address the national clamor for better broadband connectivity and giving access to quality (and uninterrupted) entertainment to the nation,” Cignal President and Chief Executive Officer Robert P. Galang said.
Smart and Cignal also partnered in November to power 10 cell sites for broadband connection in Catanduanes after it was hit by Typhoon Rolly.
Smart, the wireless arm of PLDT, Inc., has said that it would upgrade 40% of its sites to fifth generation (5G) by the end of 2021, noting that it would upgrade 4,000 base stations to 5G and deploying additional LTE base stations nationwide.
PLDT booked a net income of P19.69 billion as of September this year, up 23% from the same period last year. Revenues also grew 7% to P133.22 billion.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Jenina P. Ibañez
THE AUDI Sport brand’s introduction in the country will be spearheaded by the RS Q8 — set to arrive before Christmas, according to PGA Cars. The RS 3 Sedan is also expected to appear in local showrooms by that time, with the R8 supercar and RS 6 Avant coming before yearend or in January 2021.
In a release, Audi said that each RS model “undergoes development work at the famed Nürburgring track, with each logging at least 8,000 kilometers of testing. Through this, Audi Sport determines how RS models’ powertrain and suspension components perform under extreme conditions.”
Last year, the RS Q8, a souped-up version of the Audi Q8, registered a lap time at the Nürburgring Nordschleife (North Loop) of seven minutes and 42.253 seconds — the fastest time set by a production SUV around the famed track.
The performance SUV is driven by a 4.0-liter, twin-turbocharged TFSI V8 engine delivering 600hp and 800Nm of torque between 2,200rpm and 4,500rpm. It can reach 100kph from standstill in 3.8 seconds, and 200kph in 13.7 seconds. The growl of the RS Q8 comes out of a dual exhaust system finished by oval tailpipes. Audi’s drive select system allows the driver to alter the handling and dynamic response of the RS Q8.
As an Audi Sport RS model, the RS Q8 gets quattro permanent all-wheel drive, which receives the power of the 4.0 TFSI engine via an eight-speed Tiptronic transmission. “The quattro name represents sportiness, safe driving, technical expertise and peak performance in a competitive environment,” continued the release.
Audi Philippines is also set to bring in the RS 4 Avant, RS 5 Coupe, RS 5 Sportback, RS 7 Sportback, TT RS Coupe, TT RS Roadster, RS Q3 and RS Q3 Sportback in 2021.
“RS vehicles have a strong and unique character: spontaneous maximum performance wherever and whenever desired. This is achieved thanks to breathtaking design, high-end look and feel, and outstanding quality,” said Audi Sport Managing Director Oliver Hoffmann.
THE CENTRAL BANK issued guidelines for the computation of reserve requirements for both banks and quasi-lenders for the upcoming holidays amid reduced reserve days.
Memorandum No. M-2020-094 signed by Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier on Dec. 18 said the central bank will merge the week leading to Christmas and the New Year into one reserve week.
“The reserve weeks Dec. 18 to Dec. 24 and Dec. 25 to Dec. 31 shall be considered as a single reserve week for the purpose of determining “abuse” of the privilege of offsetting reserve deficiencies against excess reserve during that reserve week,” the memo said.
The memo said the original deadlines are applicable for the two reserve reports ending on Dec. 24 and Dec. 31, respectively.
The BSP also said the usual penalties will await those with reporting violations.
The central bank noted that as Christmas Day on Dec. 25 and Rizal Day on Dec. 30 are regular holidays while Dec. 24 and Dec. 31 are declared as special non-working holidays under Proclamation No. 845, these days will be considered as non-reserve days.
Banks and quasi-lenders comply with the reserve requirements through bank deposits and deposit liabilities that they cannot lend out.
The reserve requirement ratio (RRR) of big banks was slashed by 200 basis points (bps) in April to 12% as part of the BSP’s relief measures during the lockdown caused by the coronavirus pandemic.
In July, the RRRs of thrift and rural banks were also trimmed by 100 bps to two and three percent, respectively.
The Monetary Board has authorized RRR cuts of up to 400 bps this year. — LWTN
