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ARTA urges FDA to outsource inspection process

THE Anti-Red Tape Authority (ARTA) said the Food and Drug Administration (FDA) needs to accredit third-party inspection bodies to accelerate the agency’s license to operate (LTO) approvals.

“For the inspection — imagine if these private groups would be accredited to do the inspection, then you just need to monitor these private groups,” ARTA Director General Jeremiah B. Belgica told FDA at a meeting at HPGV Building in Makati City on Tuesday.

LTO applications for manufacturers falling under FDA jurisdiction are generated by companies producing food, drugs, cosmetics, and medical devices, number around 10,000 to 15,000 a year, the FDA said at the meeting.

FDA’s Center for Devices Regulation, Radiological Health and Research has identified private inspectors such as certification body TÜV Rheinland.

Mr. Belgica asked the FDA to look into expanding outsourced inspection to other areas regulated by the FDA.

Under this proposed process, Mr. Belgica said that the FDA will accredit and monitor the private inspector and retain final authority to audit and license such organizations.

Mag-accredit na tayo (Let’s accredit)… What is important is we make things faster,” Mr. Belgica said.

ARTA had also asked FDA to consider expanding the validity of an LTO to five years. Initial LTOs are currently valid for two years.

ARTA also reiterated its recommendation for FDA to recognize certifications performed by its foreign counterparts.

“FDA should look at the processes of the counterpart FDAs abroad, and if they see a study that the processes are already acceptable for them then they should basically accredit the companies,” Mr. Belgica said in an interview after the meeting.

ARTA in September automatically approved 3,125 pending applications at FDA, in a bid to address the FDA’s application backlog. — Jenina P. Ibañez

UAAGI brings in Chery brand

Words and photos by Manny N. de los Reyes

IT WOULD take guts to bring in a brand that failed in this market more than a decade ago. But if there is one automotive distributor that could pull it off, it could only be the United Asia Auto Group, Inc. (UAAGI).

ISO-certified UAAGI is behind the Chinese commercial vehicle brand FOTON. And they steered this brand to a solid Top 10 (No. 9, to be specific) position in total Philippine vehicle sales — overtaking more famous brands in the process.

And now, UAAGI is poised to work its magic on a more mainstream brand in Chery. Chery Auto makes passenger cars, crossovers and SUVs, which are the fastest-growing segments in the Philippines today.

The initial attempt by Chery in 2007 marked the first time for a Chinese automaker to enter the local market, which as sales figures went, was not prepared for a China-based brand at the time. (The after-sales support of the original distributor left a lot to be desired as well.)

The intervening years, however, and 2019 in particular, saw a resurgence of Chinese automakers entering the local market. Close to half-a-dozen China auto brands have entered the Philippine market in the last 12 months.

“The time is ripe for us to bring in a second automotive brand, and we are convinced that Chery Auto now has the right mix of design, features, technology, and pricing in its product line to make a strong impact on the Philippine market,” said UAAGI President Rommel Sytin during the official media launch held at The Tent at Solaire in Pasay City last Wednesday.

“History and experience are the best teachers, and we have learned a lot from FOTON’s success in the Philippine market as well as where previous efforts to market Chery have failed — and we have taken all that to heart,” shared Mr. Sytin.

The lineup of Chery models that will mark the initial reentry to the Philippine market will be composed of an all-crossover range. These are the Tiggo 2, Tiggo 5X, Tiggo 7, and the 7-seater Tiggo 8. All models are powered by modern 1.5-liter inline-4 fuel-injected DOHC 16-valve Euro 5-compliant petrol engines (turbocharged for the Tiggo 7 and Tiggo 8) and mated to 5-speed manual transmissions or 6-speed automatics.

All models are made in Chery’s world-class state-of-the-art fully robotized plants in Wuhu, China. All Chery models have contemporary styling and modern comfort, convenience and safety features, while the higher end models boast luxury car features like 10” UHD touchscreen displays, foot-sensing automatic power tailgates, automatic LED headlamps, LED taillamps, cruise control, Smart Key Entry System, 6-way power-adjustable seats, LCD instrument panel, panoramic sunroof, leather seats, 18” alloy wheels, and much more. For safety, Chery automobiles feature six air bags, front and rear radar-based driving aids, and a full suite of electronic driver-assist systems.

The Chery brand sold over 750,000 units last year, a growth of 11% compared to the previous year. Chery has been China’s biggest exporter of passenger cars in the last 16 years. Chery has sold over 7.2 million vehicles in over 80 countries. It is also a leading manufacturer of hybrid and full electric vehicles, not just in China, but in the world.

“We are excited to bring in Chery. The new cars possess all the brand values Filipinos now look for and we are convinced that the local market will warmly receive these latest models,” Mr. Sytin added.

To emphasize their confidence in the vehicles, Chery Auto Philippines is offering an industry-leading 10-Year/1 million-km Powertrain Warranty on top of a 5-Year General Vehicle Warranty. And to sweeten the purchase, Chery Auto Philippines is offering a 3-year free Preventive Maintenance Service (PMS) to all buyers of any Tiggo model.

Prices for the new models start at P695,000 for the Tiggo 2, P818,000 for the Tiggo 5X, P1,195,000 for the Tiggo 7, and P1,280,000 for the seven-seater Tiggo 8.

The Chery dealership and service network will be announced soon. For more info, visit Chery Auto Philippines’ Facebook and Instagram pages on CheryAutoPhilippines.

Nike releases latest NBA City Edition uniforms; adidas Dame 6 now out

COINCIDING with the recent start of the 2019-20 season of the National Basketball Association, Nike has released its latest NBA City Edition uniforms — the third set of uniforms in three years.

The uniforms take varying inspirations stemming from the geographic details of the city where a particular team is situated. In the case of the Orlando Magic (in photo), the jersey brings to the fore the region’s citrus groves it was known for long before the theme parks it is now famously hosting. The jersey pops citrusy orange on the its neckline, side panels and shorts.

All 30 teams in the NBA are represented in the City Edition uniforms.

Select jerseys from the NBA City Edition collection will be available at select Nike stores for P3,595.

Meanwhile, the sixth iteration of the adidas shoe line of NBA All-Star Damian Lillard of the Portland Trail Blazers is now available locally.

Described as the embodiment of Lillard’s creativity and persona, the Dame 6 introduces a variety of energetic colorways, including “Ruthless” and “Hecklers,” which tell the story of Lillard’s dichotomy on-and-off the court.

The Ruthless colorway features the word “Ruthless” painted in bold script on the medial midsole. The black textile mesh upper, providing breathability, is highlighted with split hues of neon pink and green and accented with a black suede overlay on the toe box. It is now available in the local market.

Hecklers, meanwhile, is centered around four team colors and features a graphic print with zipped up emojis. Each colorway is designed with a “Get Dealt With” message and the final touch includes the word “Hecklers” strategically placed on the heel tab for all to see. The shoe drops in the country on Jan. 18.

The Dame 6 is the first model in the Dame series to feature Lightstrike technology, the super-light midsole that provides the perfect balance of lightweight cushioning and on-court responsiveness.

The shoe is available for P6,000. — Michael Angelo S. Murillo

ACE Legazpi gets SEC go-signal for P1-B IPO

ANOTHER member of the Allied Care Experts (ACE) Medical Group has gained the approval of the Securities and Exchange Commission (SEC) to conduct a P1-billion initial public offering (IPO).

In a statement over the weekend, the SEC said it approved the application of ACE Medical Center — Legazpi, Inc. to register 240,000 shares and to issue securities upon submission of certain requirements.

The hospital firm said in its initial prospectus published on its website that it wants to do a primary offer and sell 36,000 common shares equivalent to 3,600 blocks consisting of 10 shares per block. The price of the shares will range from P200,000 to P362,500 per block.

The issuance will have five tranches where the shares will be sold at an increasing offer price on a staggered basis.

The SEC said the hospital’s IPO is targeted to medical specialists and individuals that are related to them, as subscribing to the shares will be a requirement for physicians and medical specialists that want to work at ACE Medical Center — Legazpi.

The hospital firm expects to net about P996.53 million from the IPO, which it will allocate for the development and construction of the hospital, payment of existing loans, procurement of medical equipment and additional working capital, among others.

The SEC noted ACE Medical Center — Legazpi is building two four-story hospitals in Brgy. Bogtong, Legazpi City, and the cash to be generated from the IPO will support the completion of the first building, which it intends to start operating by end of next year.

“ACE Medical Center — Legazpi is envisioned as the biggest private hospital in Legazpi City. It will be a 172-bed, Level II, Philhealth-accredited hospital catering to patients from neighboring communities needing further treatment and management,” the SEC said.

Aside from subscription to the hospital firm’s shares, participating in the IPO will have benefits to investors such as discounts in hospital services from those in the ACE Group of Hospitals.

Aside from ACE Medical Center — Legazpi, other hospital units under the ACE Medical Group have also previously obtained clearance from the SEC to conduct an IPO, namely ACE Medical Center — Iloilo, ACE Malolos Doctors; ACE Medical Center — Butuan; ACE Medical Center Gensan; ACE Dumaguete Doctors; and ACE Medical Center Bohol. — Denise A. Valdez

Debt yields close flat on US-China, BSP rate bets

By Marissa Mae M. Ramos
Researcher

YIELDS ON government securities (GS) continued to be flat last week amid mixed developments in the US-China trade talks and the statement of the Philippine central bank chief hinting on the possibility of another rate cut this year.

At the secondary market, debt yields rose on average by 0.3 basis point (bp) week-on-week, according to PHP Bloomberg Valuation (BVAL) Service Reference Rates published on the Philippine Dealing System’s website on Nov. 29.

“Local yields ended almost flat for the week due to mixed developments in the US-China trade discussions,” a bond trader said in an e-mail.

“Yields were initially higher as US President Donald J. Trump remarked that a first-phase trade deal with China is already ‘very close’ to completion… However, towards the end of the week, trade fears were revived after he signed the Hong Kong [Human Rights and] Democracy Act which is widely seen to delay the first-phase trade agreement,” the bond trader added.

In a phone interview, Security Bank Corp. Vice- President and Head of Fixed Income Dino Angelo C. Aquino attributed the flat GS yields to “lack of fresh leads…mainly following the auction result last Tuesday of the 20-year Treasury bonds…”

Mr. Aquino noted that the bonds fetched 5.341% on average, which is higher than market expectations of 5.25%.

“Another reason could be the statement of Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno of a possibility of an interest rate cut this year that the market didn’t price in earlier,” he added.

The Bureau of the Treasury last week awarded just P12.271 billion of the P20 billion programmed for the reissued 20-year Treasury bonds (T-bond) even as the tenor attracted P28 billion worth of bids.

The debt papers fetched an average of 5.341%, 32.6 bps higher from the 5.015% quoted when the tenor was last awarded in July. At the Sept. 24 auction, the Treasury rejected bids worth P30.7 billion for this tenor as the market asked for higher rates.

Following the auction, Deputy Treasurer Sharon P. Almanza told reporters there is not much appetite for longer tenors as the market prefers shorter-dated securities following the BSP chief’s remarks on the possibility of another rate cut within the year.

Earlier last month, Mr. Diokno told reporters that a 25-bp cut will not be off the table on the last policy meeting of the Monetary Board (MB) this year, which is scheduled on Dec. 12.

The central bank chief said policy decisions will always remain data-dependent and that the MB will not make any “drastic” changes to avoid being misinterpreted by the market as “desperate.”

Mr. Diokno’s statement came after the MB decided to pause cutting rates in its Nov. 14 policy meeting to observe possible adjustments from previous rate reductions.

At the external front, Mr. Trump confirmed the progress of the first phase of the trade deal between US and China after key negotiators agreed through a phone call of further finalization on certain issues in the trade agreement.

Reuters reported that same week also saw Mr. Trump signing a legislation intended to help Hong Kong maintain its autonomy from Beijing to justify favorable trading terms with the US to which China’s Foreign Ministry cautioned of “firm counter measures.”

At the secondary market last Friday, the 91- and 182-day Treasury bills (T-bills) inched up by 0.4 bp and 3.3 bps, respectively, to fetch 3.178% and 3.371%. On the other hand, the 364-day debt paper dropped 0.8 bp, yielding 3.510%.

At the belly of the yield curve, the rates on the two-, three-, four-, and five-year T-bonds declined by 5.5 bps (3.791%), 3.9 bps (3.941%), 1.9 bps (4.099%), and 0.2 bp (4.256%). Meanwhile, the seven-year paper saw its yield go up by 1.5 bps to 4.515%.

Yields on the 10-, 20-, and 25-year T-bonds climbed by 2.1 bps, 4.9 bps, and 3.9 bps, respectively, to yield 4.741%, 5.283%, and 5.298%.

For this week, Security Bank’s Mr. Aquino expects the inflation result on Thursday to be one of the market catalysts.

“We expect yields to remain range bound with a downward bias as inflation is expected to remain low,” he said, noting that the last month’s headline figure is likely to stay below two percent.

Mr. Aquino also expects the downward bias to continue until the first quarter of 2020 as the BSP continues “easing requirements by 100 to 200 bps next year” in line with Mr. Diokno’s goal of reducing the reserve requirement ratio for big banks before the end of his term in 2023.

Meanwhile, the bond trader said local yields “might move with an upward bias” this week amid bets of faster domestic inflation in November as well as the “likely upbeat” US economic data on manufacturing and labor.

“The increase in yields, however, might be capped by bets of another rate cut from the BSP [this month] and from lingering uncertainty on the US-China trade talks,” the bond trader added.

Sugar industry seeking performance audit for SRA

THE Confederation of Sugar Producers (CONFED) is seeking a performance audit of the Sugar Regulatory Administration (SRA) to ensure it is able to perform its mandate.

In Resolution No. 4, series of 2019-2020, CONFED made a request to Agriculture Secretary William D. Dar “to order the conduct of a performance audit on the SRA, including an examination of its current organizational structure and capabilities.”

“Given the industry’s current challenges, it is timely to examine the effectiveness by which SRA performed its mandated functions and responsibilities with the end in view of determining what measures are needed for SRA to serve the industry better,” CONFED said in the resolution.

The government’s economic team is currently considering liberalizing sugar imports along the lines of a similar opening up of the rice industry, noting the need to make food processors more competitive. The sugar industry has since turned its fire on the SRA for allegedly failing to implement projects to make the sugar industry more efficient, citing the agency’s inability to fully spend funds set aside for the upgrade projects.

Executive Order No. 18, series of 1986 created the SRA, which is tasked to promote growth of the sugar industry through the involvement of the private sector and to improve the lives of industry workers.

The agency is also tasked to implement the programs under the Sugar Industry Development Act (SIDA).

CONFED is urging the SRA to form a Project Management Unit which will implement the programs of the Sugar Industry Development Act (SIDA), as well as to create a Sugar Industry Development Council (SIDC), which will come up with activities to enhance the growth of the sugar industry.

SIDA, or Republic Act 10659, promotes the competitiveness of the sugarcane industry by maximizing the use of sugarcane resources while improving the income of sugar farmers and workers through higher productivity, product diversification, job creation, and higher sugar mill efficiency.

The annual budget for SIDA is P2 billion starting 2016, but after underspending was discovered in 2016 the Department of Budget and Management (DBM) reduced its funding to P1.5 billion in 2017, and to P500 million in 2018 and 2019. — Vincent Mariel P. Galang

Porsche unveils all-electric Taycan

Words and photos by Manny N. de los Reyes

SINGAPORE — The Force is strong in this collaboration. Two legendary icons, Porsche and Star Wars, joined forces (pardon the pun) at the Porsche Asia Pacific debut of the spectacular new all-electric Taycan in Singapore last Thursday, ahead of its regional (and Philippine) launch in 2020.

“The Taycan links our heritage to the future. It is a fascinating sports car with exciting driving dynamics, performance and technology — and like every Porsche ever built, it comes with a soul. Something you will feel immediately, once you get behind the steering wheel,” said Arthur Willmann, managing director of Porsche Asia Pacific.

“Asia Pacific is an important sales region for Porsche — with a continuously growing customer and fan base. With the Taycan, we are entering a new era and this spirit fits perfectly with the iconic Star Wars brand and the joint event here in Singapore,” said Matthias Becker, vice-president Region Overseas and Emerging Markets of Porsche AG.

Michael Mauer, vice-president Style Porsche at Porsche AG, who was present at the event, shared the design philosophy behind the vehicle. “Designing the Taycan was one of the most exciting tasks because the only certainty was that it had to be recognizable as a Porsche at first glance. And by pursuing the strategy of making it the sportiest in the segment, we have defined a new architecture for purely electric vehicles. Just like what the 911 has achieved, my vision is that the Taycan will become an icon of this new era, a synonym for a purely electric sports car,” he said.

As part of the unprecedented collaboration, the design teams at Porsche and Lucasfilm collaborated to design a fantasy starship in support of the upcoming Star Wars: The Rise of Skywalker, the final chapter of the Skywalker saga. Mr. Mauer, together with Doug Chiang, VP executive creative director, Lucasfilm, explained the design process and presented design sketches of the spacecraft highlighting the combined Porsche and Star Wars design DNA.

Mr. Chiang said, “Although one brand is placed in a fantasy universe and one in the real world, it’s interesting that both are defined very much by their iconic design principle. The basic challenge of the design brief was to design a starship that would both be true to the Star Wars universe and Porsche design DNA.”

The first all-electric sports car, the Taycan, marks the beginning of a new chapter for Porsche as the company expands its product range in the field of electromobility.

The flagship Turbo S version of the Taycan can generate up to 761hp overboost power in combination with Launch Control, and the Taycan Turbo up to 680hp. The Taycan Turbo S accelerates from zero to 100 km/h in 2.8 seconds, while the Taycan Turbo completes this sprint in 3.2 seconds. The Turbo S has a range of up to 412 kilometers, and the Turbo a range of up to 450 kilometers. The top speed of both all-wheel drive models is 260 km/h.

The Taycan is the first production vehicle with a system voltage of 800 volts instead of the usual 400 volts for electric cars. This is a particular advantage for Taycan drivers on the road: in just over five minutes, the battery can be recharged using direct current (DC) from the high-power charging network for a range of up to 100 kilometers.

The charging time for 5% to 80% SoC (state of charge) is 22.5 minutes for charging under ideal conditions, and the maximum charging power (peak) is 270 kW. The overall capacity of the Performance Battery Plus is 93.4 kWh. Taycan drivers can comfortably charge their cars with up to 11 kW of alternating current (AC) at home.

The Taycan Turbo has two exceptionally efficient electric machines, one on each axle, making the car all-wheel drive. The two-speed transmission installed on the rear axle is an innovation developed by Porsche. First gear gives the Taycan even more acceleration from a standing start, while second gear with a long gear ratio ensures high efficiency and equally high power reserves. This also applies at very high speeds.

Olympics fitness equipment supplier opens Makati showroom

TECHNOGYM, the official fitness equipment supplier of the Olympics since 2000, recently opened its new showroom located along Chino Roces Avenue in Makati City.

Established in 1983, the Italian brand best known for its professional and sports training equipment, which are anchored on its DNA of “design, innovation, technology and performance,” through the new showroom, looks to enhance further its presence in the country.

“The showroom is where we want people to discover fitness formats, products, and solutions for training at home. We want our clients’ training menu to be comprehensive, but also extremely refined,” said Marvin Navarro, sales manager of local TechnoGym distributor E-Sports International, during the showroom’s press launch on Nov. 21.

Showcased in the two-floor showroom is TechnoGym’s line of equipment, which includes the Kinesis Personal, a piece of designer gym furniture that utilizes a patented cable loop system to allow users to move tri-dimensionally without interference from the body, and the MyRun treadmill, which users can sync to their iPad to access instant running feedback.

“Each piece of equipment we offer is the complete package, and are designed to make workouts easy, efficient and even entertaining,” E-Sports managing director Audris Romualdez said in a statement.

Mr. Navarro said interested clients can check out and try the equipment in the showroom to immerse themselves in TechnoGym’s “Olympic Heritage.”

Most recently, TechnoGym supplied the equipment in the gym at the newly built world-class sports facility in the New Clark City in Capas, Tarlac, which the national athletics team used for their last leg of training in the just-started 30th Southeast Asian Games. — Michael Angelo S. Murillo

MacroAsia prepares Sangley Airport bid

Macroasia corp logo

MACROASIA Corp. is currently preparing its bid for the Sangley Point International Airport project in Cavite.

“We are working on the bid,” MacroAsia Corp. President and Chief Operating Officer Joseph T. Chua told reporters in Pasay City on Nov. 27.

Asked if the company will partner with other groups for the bid, he said: “We still don’t know actually. We are still looking into it.”

The Cavite provincial government is looking for private sector partners to turn the Sangley airport into an international hub. The $10-billion airport project will have four runways and a terminal that can handle 100 million passengers annually.

Mr. Chua said the deadline for bids has been extended to Dec. 17 from the original date Nov. 25.

He said the new deadline gives them more time to “study” the bid and decide on their possible partners.

MacroAsia Chief Financial Officer Amador T. Sendin said they are one of the companies who requested to extend the deadline.

Asked if MacroAsia is “sure” to participate in the bidding, Mr. Sendin said: “Yes.”

For his part, Mr. Chua said the Sangley Airport project is “viable.”

“Of course it’s viable. The Philippines can have multiple airports. There are so many tourists we’re waiting to come in,” he said.

Cavite Governor Juanito Victor “Jonvic” C. Remulla earlier said the groundbreaking for the project is targeted on Jan. 15 and that the airport should be operational by 2023. The fourth runway, he also said, will be opened after six years.

Apart from MacroAsia Properties Development Corp., other groups that have bought bid documents for the project, according to Mr. Remulla, are Metro Pacific Investments Corp.; Prime Asset Ventures, Inc.; Philippine Airport Ground Support Solutions, Inc.; Langham Properties, Inc.; Chinese Communications Construction Co.; and Mosveldtt Law Offices.

Megawide Construction Corp. earlier said that it was also evaluating prospects of the airport project. — Arjay L. Balinbin

Driving around 5 continents for better Toyotas

By Kap Maceda Aguila

MUCH IS SAID about car companies drawing insight and learning from stints on the racetrack — primarily through motorsports — and cascading these onto production vehicles made for you and me. After all, it’s sexy, exciting, and always poster-ready.

Running the tough gauntlet of racing events is indeed not just a proving ground that ultimately raises the quality of vehicles, but also adds reputational value and prestige to brands.

Still, one can make the argument that everyday roads are where ordinary people usually take our cars to, so there’s undeniable wisdom in testing them there.

Beginning in 2014, Toyota Motor Corp. (TMC) staged a gargantuan endeavor called the “5 Continents Drive” which involves a team driving in “various Toyota vehicles in local communities, diverse terrains, and challenging environments which customers experience on the road on a daily basis.” From Australia that year, the team has traveled across “North and Latin America, Europe, and Africa. The group started (its) Asia Drive this February 2019 in the Middle East and is slated to end in Japan in time for the milestone Olympic Games and Paralympic Games Tokyo 2020.” Toyota boasts of this as a Genchi Genbutsu (“go and see for yourself”) project subsumed under its Gazoo Racing program.

Recently, the 5 Continents (or 5C) team found itself in our country for a 850-kilometer drive in various terrain. Toyota Motor Philippines (TMP) and global affiliates helped to stage the Philippine leg which commenced from TMP’s Santa Rosa, Laguna facility plant last Nov. 19. A total of 27 Toyota engineers and technical experts from TMC, TMP, Toyota Daihatsu Engineering and Manufacturing (TDEM), and Toyota Motor Asia Pacific (TMAP) hit the roads of Metro Manila, Bulacan, Tarlac, La Union, Baguio, Pangasinan, Nueva Ecija, Pampanga, and Zambales and back to Manila for a goal event at TMP’s dealership along Manila Bay.

The nine-vehicle convoy was composed of the locally assembled Vios and Innova, along with Hilux, Corolla Altis Hybrid, Rush, Fortuner, and the RAV4 units.

“Toyota Motor Philippines is honored to be a part of the historic 5 Continents Drive, with our very own team members guiding the group as local experts. They will help the 5 Continents Drive team understand not only the local road conditions, but also the country’s transportation situation, and culture,” said TMP President Satoru Suzuki during the send-off ceremony. “This immersion project serves as an opportunity for the world to witness the Filipinos’ unique way of life and how cars are helping them go through their daily lives.”

The 5C complements and completes a laboratory of sorts from which the organization draws valuable lessons not only technical in nature. GT Capital Auto Dealership Holdings, Inc. Chairman Vince Socco averred in an exclusive interview with Velocity, “Some people might misunderstand that this is only an engineering thing. More than that, we have some 700 people exposed to different roads over a period of five years. Seven hundred-fold, they will teach many others over the course of their stay in Toyota.”

Continued the executive, “We do (testing) for each model that we develop, like the IMV (vehicle platform) project. But this extended five-continent thing, the difference is that it’s not so much about the product, but about the people. As we’ve said, roads train people, people build cars. We can’t expect our team members to build ever-better cars if they’re just doing it from behind their desks. They need to understand how the cars are used, who the people are, and what the realities of vehicle usage are. Then they really can put not only their minds but their souls and hearts into it.”

Meanwhile, Toyota Motor Corp. 5 Continents Drive team 2C project secretariat/GR management division of motorsports promotion department’s Harold Archer explained to this writer that participants come from across the organization, “from engineers to white-collar workers in management, product, finance, HR.”

Adding to Mr. Socco’s observation, Mr. Archer said, “People should not be in a silo. One of the purposes of this project is to break the silos; break the walls.”

As for observations about Philippine road conditions, Mr. Archer said since the team had scouted local roads six months ago, much had changed by the time they actually drove here. It was raining heavily in some places, and one of the testers was very wary about potholes which were occasionally invisible because of flooding. “He realized that customers could not judge the location and depth of potholes,” he revealed. This may lead Toyota to employ some changes in the tuning of its suspension.

To be sure, there will be homologation implications, too, as data are gathered in a holistic fashion to fine-tune cars (while evolving team-member abilities). 5C is also about meeting customers and understanding their mobility needs. “It’s about polishing our sensors on real customer roads, not only on the test track,” commented Mr. Archer.

Surely, there has been a glut of information from 5C as the team has negotiated the Australian outback, endured -40 degrees Centigrade weather in Alaska, climbed 4,620 meters in Chile, drove in Middle Eastern deserts, and even risked changing tires in Africa with a pride of lions nearby. There are numerous QDR (quality, durability, and reliability) takeaways, for sure.

After his Philippine jaunt, Mr. Archer repairs back to Japan, then goes onto Vietnam for the next leg of the Asian tour which started in India. “This kind of scale is the first,” he underscored. “This many people. We have KPIs, we have data loggers.”

Will it lead to improvements in the next generation of vehicles? Definitely, he maintained, and insisted that data gathered are immediately transmitted back to TMC: “Right away, this gets fed back — to each division, each boss, and all the way to the top.”

Of course, there’s important confidence and credibility earned by each participant. “They can now speak with authority when they say this is how the car should be built,” concluded Mr. Socco.

BSP tweaks rules on capital-raising activities of banks, quasi-banks

THE BANGKO SENTRAL ng Pilipinas (BSP) has revised its rules on banks’ issuance of long-term negotiable certificate of time deposit (LTNCTDs), bonds and commercial papers in a move to develop the capital market.

In a statement on Sunday, the BSP said its policy-setting Monetary Board (MB) has approved amendments to rules allowing universal and commercial banks (U/KB) and quasi-banks (QB) to have its related companies underwrite or arrange offerings of LTNCTDs, bonds and commercial papers, now requiring lenders to hire firms other than parties that have any connection to them.

“The amended rules require that there are other third party underwriters/arrangers that are not related in any manner to the issuing U/KB or QB. The parties shall ensure that an objective conduct of the due diligence review is not undermined and that appropriate safeguards and controls on related party transactions shall be instituted to prevent conflict of interest on the arrangement,” the central bank said.

“These prudential reforms are aimed to promote efficiency in the issuance of the said instruments by U/KBs and QBs and at the same time protect the interest of the investing public,” it added.

Some banks that offer financial instruments hire their investment-banking subsidiaries as sole underwriters or arrangers for their transactions. With the BSP’s new rules, these lenders will have to get other firms to manage their capital-raising activities in cooperation with their own units.

Meanwhile, the BSP said in the same statement on Sunday that the MB has approved indefinite moratorium for LTNCTD issuances starting January 2021, giving lenders until September 2020 to file their requests to issue these instruments.

“The moratorium is seen to shift the banks’ funding channel from LTNCTDs to bond issuances that is to likewise further deepen the local debt market,” it said.

LTNCTDs are like regular time deposits that offer higher interest rates.

China’s Hu urges recovery in pig production to stabilize pork supply

BEIJING — Chinese Vice Premier Hu Chunhua said the country must resolutely work to achieve the target of recovering pig production numbers, and stabilize pork supply for the upcoming holidays, the official Xinhua News Agency reported.

China must ensure stable pork supply in key periods of early 2020, including the Lunar New Year holidays in January and during the annual National People’s Congress in March, Xinhua cited Hu as saying at a meeting on animal husbandry on Saturday.

Millions of pigs have died or been culled due to the African swine fever outbreak in China and other Asian countries such as Vietnam. The disease has slashed China’s pig herd by as much as half since August 2018, U.S. agribusiness firm Archer Daniels Midland Co. said in November.

The ravaging of pig herds in the world’s top pork market helped to drive China’s consumer price index (CPI) up 3.8% year-on-year in October, the fastest increase in nearly eight years.

Pork prices more than doubled in annual terms in October, according to China’s statistics bureau, accounting for over 60% of the CPI rise. China’s October pork imports doubled from a year earlier in response to the domestic production declines, and Beijing has pushed to approve new sources of pork as part of its efforts to stabilize prices.

China’s official Securities Times newspaper also reported that Fang Xinghai, vice chairman of the China Securities Regulatory Commission, at a forum on Saturday said China will also launch a new pig futures contract as soon as possible given the importance of pork to the Chinese diet. The report did not give a target date for launching the futures. — Reuters