[B-SIDE Podcast] Love in the time of corona(virus): pandemic brides

October 5, 2020 | 10:58 am

The COVID-19 pandemic has stripped away a lot of what we expect from weddings: the pageantry, the ceremony, the large number of guests. Bridal designer Patricia “Patty” Pascual and BusinessWorld reporter Joseph L. Garcia talk about love in the time of corona.

TAKEAWAYS

There are two kinds of brides: practical and optimistic.

Amid the pandemic, Ms. Pascual has met two kinds of brides: the practical ones who take advantage of discounts offered by suppliers and get married in intimate ceremonies—with guests participating via Zoom; and the optimistic ones, who believe in their hearts that they’ll have the wedding of their dreams in 2021.

In terms of design, bridal gowns are going minimalist while face masks are statement pieces.

Fully beaded ball gowns with full skirts and detachable long trains are out. “We’re into delicate silhouettes that are very modest,” said Ms. Pascual. To make a statement, brides can choose from custom face masks. “It’s the new accessory during weddings,” said Ms. Pascual, who offers face masks bedazzled with Swarovski crystals. “You’re still sparkling on your wedding day.”

(Grooms, don’t fret: Ms. Pascual can match your mask to your suit.)

Push through with your wedding—but follow health protocols—Ms. Pascual recommends.

“Everything is discounted,” she reasoned, adding that a guest list of under 10 persons—in keeping with community quarantine guidelines for social gatherings—will also cut costs. “I’m a very practical designer.”

And if you’re an optimistic bride holding out for your dream wedding? “Continue with your planning, don’t stress yourself—you need to be healthy on your big day,” said Ms. Pascual.

Recorded remotely on September 25. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Diskarte: The best powers of today’s entrepreneur

October 5, 2020 | 9:00 am

G Summit of Globe myBusiness encouraged MSMEs to harness their inner diskarte

By Adrian Paul B. Conoza, Special Features Writer

The pandemic has inevitably sent a call to many micro, small, and medium enterprises (MSMEs) to adapt to sudden changes. Many businesses might have found it more important to harness what Filipinos call diskarte, that mix of guts and strategy, in thriving through the big impacts of the coronavirus disease 2019 (COVID-19) pandemic.

Making the most out of that inner diskarte was the main focus of this year’s G Summit, held by Globe myBusiness last Sept. 23. The virtual business summit was rich with stories and insights from entrepreneurs and thought leaders that will definitely guide entrepreneurs to effectively pivot their businesses to success in spite of current and future challenges.

Emerging through digital

Flo Yeow, Philippine Business Development Manager of Google, kicked off the summit by sharing local insights and trends identified by Google regarding the rise of e-commerce.

Among these insights is that the consumer journey has become more complex nowadays, as shown by the multiple and differing touchpoints identified by Google among consumers of sneakers. These touchpoints include searches, video views, and page views.

The research also identified an accelerating pattern for e-commerce from a distinguished rise in online shopping searches this year compared to the previous year.

Furthermore, Mr. Yeo highlighted a three-stage ‘e-commerce path’ for businesses to take, with Google as a tool they can use along the way.

The first stage involves recognizing signals, or trends, and acting on them. Alongside recognizing these trends — where tools like Google Trends can help — businesses are encouraged to be discoverable, build their brands, acquire new customers, and increase sales with the help of online platforms.

Following the recognizing stage, reimagining industries can help businesses match the velocity of change occurring around them. Especially with the increased acceleration of digital, it is now highly recommended to consider that Filipinos are moving towards using digital tools for productivity, home living, as well as purchase.

In addition, Mr. Yeo advised entrepreneurs to find ‘white spaces,’ where other players are not yet at, since opportunities may lie out there. “I think the one thing we want from businesses today is look into not just being unique, but also finding the white spaces,” he said during the summit.

Creating their future

Ginger Arboleda, co-founder of Taxumo and founder of Manila Workshops, shared some tips on businesses can start their recovery in this time of uncertainty.

She advised entrepreneurs to get away from beliefs that can hamper them from starting their recovery process, such as beliefs that they are at fault, that the aftershocks of events (like the pandemic) will last forever, and that an event will affect all areas of their lives.

To get away from these hampering thoughts, entrepreneurs are advised to: focus on shifting their mindsets; understand what is happening around them; try and test out different things; unlearn and learn new things; revisit their purpose and adjust their objectives and key results; and work towards earning trust and respect.

Ms. Arboleda encourages entrepreneurs to apply the scientific method as they rethink their strategies and try out things for their businesses.

“The thing about building a product — like I’ve noticed a lot of people do — they want to get everything into their product, and then launch it once everything is up and running. But that’s not how I would think we should do,” the co-founder of Taxumo said. “We should create small snippets of the product, launch it, test it out, and then see if it works. If it works, then build on it. So that’s how you get to an amazing, full-blown product.”

She suggested to think of the basics businesses can actually put forth, to test them, and build on them once they become effective.

When it comes to standing out among competitors, she stressed that knowing their purpose and focusing on their business matters.

“It’s good to see that competitors are there, and it’s good to get in the know of what’s happening around you. But, what I’ve realized after many years of entrepreneurship, it’s just a distraction. It’s good that you know what’s happening, but focus on what you’re doing,” she said.

Becoming everyday innovators

Completing the summit is Josh Linkner, #1 most booked innovation keynote speaker and author of the bestselling Big Little Breakthroughs: How Small, Everyday Innovations Drive Oversized Results. His presentation called entrepreneurs to be ‘everyday innovators’ who have five helpful obsessions.

Mr. Linkner shared that, first, everyday innovators must start before they are ready, which means they have to get going quickly even when they do not have everything figured out yet.

He also finds that innovators should be engrossed at ‘breaking’ things in order to fix them. “Be willing to take something that’s working, deconstruct it, and rebuild it with an upgraded version in mind,” he explained.

Everyday innovators also “use every drop of toothpaste.” Mr. Linkner continued, doing more with less and letting creativity make the most out of those constraints.

Innovators should also reach for weird, challenging themselves to come up with “crazy, eyeballing, strange ideas” that can be the ones most effective for their businesses.

The fifth and last obsession concerns rising up from adversity, regardless of how many times they occur. “In our moments of adversity, fall seven times, stand eight, bouncing back from adversity with more inventive thinking and more creative problem solving,” Mr. Linkner encouraged.

“If we could double down on our own gift of human creativity, if we could be resilient and creative, if we can adapt to changing circumstances, our best days will begin to come,” he added.

With the inspiring insights from these speakers, Globe myBusiness hopes that the G Summit has empowered entrepreneurs to optimize their diskarte to face new challenges. “You are not alone. We are here as your trusted partner to change the way you do business especially in the new normal,” Globe Telecom CCO Alberto M. de Larrazabal said during the summit.

Participants of the G Summit were provided a Diskarte Kit, co-created with Aaron Palileo, event moderator and co-founder of CIA Bootleg. The toolkit aims to help business owners find opportunities that can help unleash their inner diskarte, with segments: Reflect, Generate, and Implement. Frameworks were also provided to help guide MSMEs, based on business objectives. [https://mybusinessacademy.ph/resources/rewards/g-summit-diskarte-kit-sme/]

Moreover, several MSMEs shared their stories of determination, resiliency, and how they pivoted to survival and success in the Diskarte Heroes stories which were also provided to the participants. The series will be continuously updated with more heroes in the days to come. [https://mybusinessacademy.ph/resources/rewards/g-summit-diskarte-heroes/]

Sept. inflation likely slowed — poll

October 5, 2020 | 12:33 am

By Luz Wendy T. Noble, Reporter

HEADLINE INFLATION likely slowed further in September due to lower prices of some staple food and power rates, analysts said.

A BusinessWorld poll of 16 economists held last week yielded a median estimate of 2.3%, closer to the higher end of the 1.8% to 2.6% forecast range given by the Bangko Sentral ng Pilipinas (BSP) for September and well within the 2-4% target for the year.

If realized, the median estimate will be the second consecutive month of slower inflation, following the 2.4% pace in August. However, it is still much quicker than the 0.9% logged in September 2019 which was the slowest pace since the 0.7% seen in April 2016.

The Philippine Statistics Authority will report the September inflation data on Oct. 6.

Analysts said key factors that may have contributed to easing inflation are food and utility prices.

Jessie Lu, an economist from Continuum Economics, said downside pressure likely came from food and non-alcoholic beverages components.

“Some food items, however, have experienced a slight increase last month such as pork and chicken due to limited supply. Otherwise, prices of other commodities remain stable,” Mitzie Irene P. Conchada, an economist from the De La Salle University said.

In September, rice prices slipped, with average farmgate palay prices down by 2.2% week on week to P17.64 per kilogram in the first week of the month. Average wholesale price of regular-milled rice likewise dipped 0.7% to P34.99, while its retail price slipped 0.5% to P37.91.

Further downward pressures to inflation include lower utility and oil prices, according to ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa.

“Price gains will dip from the previous month despite base effects as the economy remains in recession while crude oil prices reflect a global downturn, helping cap utility prices and the recent pickup in transport costs,” Mr. Mapa said.

Manila Electric Co. (Meralco) power rates dropped by P0.0623 per kilowatt-hour (kWh) to P8.4288/kWh in September from the rates in August. September saw Meralco rates at its three-year low due to lower generation charge.

Meanwhile, some economists said inflation likely picked up last month as the economy continued to open up. Metro Manila and nearby provinces remained under a general community quarantine for the month of September.

“The semblance of normalcy displayed by the opening of some sectors of the economy including tourism and transportation has paved the way for the return to the usual transaction and economic activity,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said.

While more modes of transportation are allowed to operate including buses and jeepneys, restrictions on capacity has made transport costs more expensive, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“Capacity on mass transportation systems remains limited to prevent the COVID-19 from spreading further, thereby would still keep transport costs relatively higher,” Mr. Ricafort said.

The central bank has lowered its average inflation forecast for this year to 2.3% from 2.6%, citing a downward trend in oil prices.

The Monetary Board also maintained the overnight reverse repurchase, lending, and deposit rates at record lows of 2.25%, 2.75%, and 1.75% during its fifth policy review last Thursday. BSP Governor Benjamin E. Diokno said the current monetary policy settings “remain appropriate,” and noted some “encouraging signs” of recovery for the domestic economy.

The Monetary Board has slashed policy rates cumulatively by 175 basis points (bps) this year.

Analysts said the BSP may likely maintain benchmark rates at record lows, at least in the near-term given the inflation outlook.

“We expect the BSP to keep the key policy rate unchanged toward the yearend. Negative real interest rate likely constrains the central bank’s ability to lower rates further,” Ms. Lu said.

“Additional bouts of RRR (reserve requirement ratio) reduction will also likely be shelved for now given the liquidity situation,” Mr. Mapa said.

The RRR for big banks have been slashed by 200 bps to 12% while reserve requirements for thrift and rural lenders have been brought down by 100 bps to three percent and two percent, respectively. The Monetary Board is allowed to trim the RRR by up to 400 bps this year.

So far, the BSP’s moves have infused P1.5 trillion in liquidity into the financial system, Mr. Diokno said.

The last two policy review meetings are scheduled on Nov. 19 and Dec. 17.

Analysts’ September inflation rate estimates (2020)

October 5, 2020 | 12:33 am

HEADLINE INFLATION likely slowed further in September due to lower prices of some staple food and power rates, analysts said. Read the full story.

Coronavirus exposes wide gap in education

October 5, 2020 | 12:32 am

By Arjay L. Balinbin, Senior Reporter

APPLE D. GARCIA, an incoming senior high school student in Pampanga province, north of the Philippine capital, bartered through Facebook a tray of eggs and a bundle of string beans for an old personal computer that she plans to use for her online class this month.

“Tatay, who is a tricycle driver, had to borrow money for the tray of eggs and spent P40 for the vegetable,” she said in Filipino by telephone. “The kind-hearted man who gave us the PC said it was old but still usable.”

Apple offers a digital portrait painting service on Twitter to save money for internet connection that she would need when school opens today (Oct. 5).

President Rodrigo R. Duterte has banned physical classes until a vaccine is found for a coronavirus that has sickened more than 300,000 and killed more than 5,000 people in the Philippines.

Public schools nationwide will offer distance learning through online and modular classes. Students get printed handouts that they study and answer at home, and submit to school authorities regularly.

Education during the pandemic is a problem for millions of public school students who don’t have computers at home, not to mention a faster broadband connection needed to handle the bandwidth requirements of Zoom Cloud Meetings or Google Classroom.

Majority of parents of school children or 8.8 million preferred modular learning for their children, while 3.9 million chose blended learning, which involves the use of television, radio and printed handouts, according to results of a Department of Education (DepEd) poll.

Meanwhile, 3.8 million parents preferred online classes. About 1.4 million parents also favored television, while only 900,000 chose radio-based instruction.

For many public schools, parents still have to get printed handouts at the school even if their children opted for online classes.

Shienna Lyn L. Antenor, a master teacher and curriculum head at Concepcion National High School in Koronadal City in southern Philippines, said the school adopted modular learning for its 4,000 students.

But senior high school students might have to mix it with online classes for subjects that require group research.

Education Undersecretary Jesus Lorenzo R. Mateo said parents need not buy an iPad, tablet or computer if they chose modular learning for their children

“These are optional,” he said by telephone. “We keep telling the public and the media that there is no need for parents to buy a gadget. Online classes are not for everybody, which won’t happen given the state of our information and communications technology.”

DepEd data as of Aug. 13 showed 23.21 million students from kindergarten to senior high school have enrolled. About 96% or 21.57 million are public school students.

As the coronavirus crisis intensified, the traditional June class opening was moved to Aug. 24. President Rodrigo R. Duterte again postponed classes to Oct. 5 as infections continued to surge.

It might take the Education department as long as three years to perfect its distance learning materials, education expert Christopher P. Satulan said.

“It normally takes a lot of time to prepare learning materials, which are very important in distance education,” he said by telephone. “In our experience, learning materials are developed every term,” said Mr. Satulan, chief operating officer at AMA Online Education, adding that the reported errors in DepEd’s handouts were understandable.

“There really are errors, that’s why a learning resource platform committee is reviewing these with the help of academicians at universities involved,” Mr. Mateo said in Filipino.

Merlyn D. Lingaling, a public primary school teacher in the mountainous Kayapa town in Nueva Vizcaya, said online learning is impractical in her area. “We adopted modular learning because not everyone has a gadget and internet access,” she said in a mobile phone message.

The additional budget for printers, ink and paper to produce the modules was a challenge, but the school had received help from the local government, she added.

Marvin Jan C. Baladiang, a grade school teacher at a public school in San Jose, Antique in central Philippines, said Education authorities were working on radio and television-based instruction as alternative options. Like many public schools, his school will use modules to teach students, he said.

DIGITAL DIVIDE
Glaring gaps in the DepEd’s plan, including concerns about the digital divide, are expected to lead to further exclusion. Senators were unconvinced that the country’s slow and unreliable internet will be fixed in time for classes.

Majority of Filipinos don’t have internet access, Senator Grace Poe-Llamanzares said in a speech at a BusinessWorld online forum on Wednesday, citing an official survey.

“In the Bangsamoro Autonomous Region in Muslim Mindanao, 94.9% of households do not have access to the internet and surprisingly, in the National Capital Region, only 32.3% of households have access,” she said.

There’s also a huge internet speed gap between highly urbanized cities and rural areas — as much as 5.54 megabits per second (Mbps) versus a measly 1 Mbps in Mindanao, Ms. Poe-Llamanzares, who heads the Committee on Public Services, said.

The Philippines has a fixed broadband average speed of 3 Mbps, slower than Cambodia, Brunei, Malaysia and Singapore, she said. It has the sixth cheapest fixed-broadband rates but the most expensive rates for mobile voice, nearly double that of Vietnam and almost three times more than that of Thailand, she added.

Even Mr. Duterte has threatened to take over telecommunication companies for their bad service.

“We have many parents who can hardly provide their children with basic needs, not to mention quality time, moral and physical support,” Mr. Baladiang said in a mobile phone message. “These kids are clearly at a disadvantage. Another factor is the literacy level of some parents.”

Farnaida A. Kawit, head of an elementary school in Southern Mindanao, bartered her own clothes and sought donations so the school could buy paper reams for printing materials.

They had to come up with 20 reams of paper to print handouts in the first week for Grade 1 students alone, she said by telephone. “The school budget was simply not enough.”

DepEd’s Mr. Mateo said the agency had released a P9-billion printing budget to field offices, but due to communication challenges, some of them were unaware that the fund had become available. He added that funding for government projects is a challenge because of the recession.

Students with learning disabilities will find it even harder to learn, Ms. Kawit said, adding that parents might have to teach them under a homeschool arrangement.

Public schools are not alone in dealing with the so-called new normal. Many private schools were under pressure to cut tuition even if they had to retain the same teaching staff, Elna Leah L. Fonacier, president of Calamba City Private Schools Administrators Association, said by telephone.

They also had to allot a budget for online learning systems for both students and teachers, she pointed out.

Ms. Fonacier said many private schools have closed since few students enrolled, while a number of them have transferred to public schools after their parents lost their jobs.

She frowns at private schools that use the DepEd’s free learning management system. “If we get our materials from them which reportedly have errors, how are we different from DepEd? Why should parents pay private schools?” she asked.

“Private schools should put up something unique and different to elevate the quality of education,” she added.

AMA’s Mr. Satulan said online learning is more common in Western societies, and it will only succeed with the help of parents and guardians.

Schools use various approaches to keep students’ focus and motivate them. “One of them is the point system where students earn points whenever they finish or submit a task,” he said.

The system may not work for all students. “Some will excel online, some are more effective in face-to-face classes,” Mr. Satulan said. “The most important aspect is the child’s foundation from preschool and elementary to junior and senior high school.”

Apple, mentioned at the outset, is nervous about school given the limited interaction with teachers and with nobody to guide her except Google.

“That’s why I really need the internet for my research,” she said. “I just hope everything will go back to normal again because it’s really difficult.”

Shipowners sound alarm over domestic regulatory climate

October 5, 2020 | 12:31 am

By Arjay L. Balinbin, Senior Reporter

DOMESTIC SHIPOWNERS said the current regulatory climate worsened their plight amid the coronavirus pandemic, seriously impacting their business.

“The tight liquidity position is affecting the PLSA (Philippine Liner Shipping Association) members’ decision to modernize and expand. But even more alarming is the current regulatory climate. Current government regulatory climate (policies) has significantly increased the cost to operate and do business and also unnecessarily put the Filipino ownership at risk,” PLSA President Mark Matthew F. Parco said in an e-mailed reply to questions.

Mr. Parco said the current regulations “worsened by the uncertainty brought by the pandemic” have seriously affected their business, prompting many to put off making any decisions until end-2020.

As an example, he cited the government directive to domestic shipping lines to allocate 12% of their capacity for agricultural products and provide preferential rates for such cargo.

“The private sector has been required to give discounts by as much as 40% with no government support or assistance linked,” Mr. Parco said.

Asked to comment at a briefing on Sept. 18, Maritime Industry Authority (MARINA) Administrator Robert A. Empedrad said the discounted rates and the space allocation for agricultural products were intended to help “ensure that the prices of goods are not increasing during the pandemic.”

“Alam ko medyo affected kayo dito sa hiningi naming 12% (We know you are affected by the 12% requirement), but we are appealing to you to implement this, and hopefully we can also come up with programs that can help you out… We will do our best to alleviate your plight during the pandemic,” Mr. Empedrad said.

Mr. Parco also identified the high waste reception fees for ships as another problem.

Hiyasmin H. De Los Santos, manager at the Philippine Ports Authority (PPA) port operations and services department, said the appeal filed by PLSA with the agency is now pending resolution.

MARINA’s Mr. Empedrad assured domestic shippers a financial package will be allocated for them under the Bayanihan to Recover as One Act (Bayanihan II) signed by President Rodrigo R. Duterte on Sept. 11.

“We are working on it right now. I believe the PPA recommended also for the waiving of dockage, lay-up, and terminal fees on all domestic shipping vessels. These are under study. I assure you the domestic shippers will have their piece of the stimulus pie once the budget under the Bayanihan II is released by the government,” Mr. Empedrad said.

Of the P9.5 billion allotted for the Transportation department under Bayanihan II, only P2.6 billion will be used to assist the air, land and sea transport sectors badly hit by the pandemic. The law directs the Transportation department to provide direct cash or loan interest rate subsidy, grants for applicable regulatory fees, among others.

Mr. Parco said shipowners are not planning to purchase any new vessels this year, as demand continues to be weak due to the economic slowdown and travel restrictions.

“Like other industries, the local domestic shipping industry was taken by surprise by the speed and breadth of the impact of the pandemic. The reduction in cargo and continuing restrictions in passenger travel have significantly affected the profitability and liquidity of the lines,” he said.

PSA AMENDMENTS
At the same time, Mr. Parco raised concern over the proposed amendments to the Public Service Act (PSA) pending before Congress, which would open up more sectors to foreign investments.

“The proposed amendments to the Public Service Act… seeks to open shipping to foreign ownership. This will significantly affect the long-term business plans or decisions of the shipping lines,” he said.

“It could also potentially affect the shipbuilding sector in the Philippines because foreign-owned shipping companies, if allowed to enter domestic shipping, could build or bring in ships made from their home countries, thus drastically affect our local shipbuilding industry,” he added.

MARINA Deputy Administrator for Planning Arsenio F. Lingad II expressed reservations in supporting the measure, saying “we view the Filipino participation in domestic shipping as part of our national artery for trade, which must not be given to foreign owners.”

“So we maintain that we should have the 60-40 capitalization in favor of Filipinos in order to safeguard the trade in domestic shipping,” Mr. Lingad said, adding MARINA will soon submit its position paper to Congress.

Firms need post-COVID rethink — Bain

October 5, 2020 | 12:05 am

By Denise A. Valdez, Senior Reporter

PHILIPPINE conglomerates may need to adjust their business models to remain competitive in the post-coronavirus disease 2019 (COVID-19) world, as the evolving economy is proving better for pure-play companies.

Bain & Company, Inc., a United States-based management consulting firm, said pure-plays are now outperforming conglomerates in Southeast Asia, and the Philippines is prone to seeing the same event.

“Conglomerates have done well in the Philippines, historically, but as the economy matures and becomes more competitive, the old model will not work,” Jean-Pierre Felenbok, managing partner at Bain Southeast Asia, said in an email to BusinessWorld last week.

“As the Philippines economy is particularly severely impacted by the COVID crisis, there are a few imperatives for conglomerates in a post-COVID world,” he added.

Among these is the tight management of productivity, which entails not only reducing operating costs, but also changing a business operating model to consider digitization and automation, Mr. Felenbok said.

Part of this would be reengineering supply chains and investing heavily in digitalization, which may result in leaner and more agile ways of working.

The consultancy firm also suggests reshaping portfolios, which will focus on leadership positions in industries that thrive in the post-COVID world. This may include divestitures, mergers and acquisitions, and joint ventures.

“Typically, less diversified conglomerates with a clear theme and areas of focus will do better going forward,” Mr. Felenbok said.

In Bain’s 16-year research of Southeast Asia’s conglomerates covering six countries, namely the Philippines, Indonesia, Thailand, Vietnam, Malaysia, and Singapore, it has found that pure-plays are generally outdoing conglomerates in terms of annual total shareholder return (TSR).

In the past five years, Bain said there had been a growing gap between conglomerates and pure-plays, such that in 2010-2014, conglomerates bested pure-plays by four percentage points in terms of TSR, and now, had been beaten by six percentage points.

But in the Philippines, four conglomerates were recognized as part of Bain’s 12-member list of “All-Weather” companies, which means they have shown consistently superior TSRs since 2003. These are A. Soriano Corp., Aboitiz Equity Ventures, Inc., DMCI Holdings, Inc., and JG Summit Holdings, Inc.

Family-owned conglomerates perform significantly better on average than other conglomerates (13% vs 6% TSR over 2010-2018), Mr. Felenbok said.

“This is attributable to what we call ‘founder’s mentality’ characterized by a strong sense of purpose, an obsession with the customer and the front line and an aversion for bureaucracy and complexity,” he added.

The four companies that made the All Weather list are all family owned: A. Soriano (Soriano), Aboitiz Equity Ventures (Aboitiz), DMCI Holdings (Consunji), and JG Summit (Gokongwei).

Steel industry group finds inferior rebars made during lockdown

October 5, 2020 | 12:04 am

THE PHILIPPINE IRON and Steel Institute (PISI) has found “substandard” steel rebars and unmarked products in hardware stores in Central Luzon, accusing manufacturers of taking shortcuts during the lockdown.

PISI in a press release on Saturday said that it informed the Department of Trade and Industry (DTI) about substandard rebars allegedly produced by Real Steel Corp. and Metrodragon Steel Corp.

The group also found unmarked rebars and rebars embossed with non-registered logos.

“These rebars are banned because their manufacturer cannot be identified, traced and sanctioned,” PISI President Ronald Magsajo said.

PISI took the samples from hardware stores for testing by the Bureau of Philippine Standards at the Metals Industry Research and Development Center (MIRDC).

“Based on MIRDC’s findings, the samples’ lug heights and mass variation did not conform with what the DTI requires to assure the integrity of the rebars for use in construction,” PISI said.

PISI said that steelmakers were exploiting cutthroat competition in a shrinking construction market during the lockdown.

“Some manufacturers and traders are taking advantage of quarantine restrictions and taking shortcuts that, ultimately, will harm the end-user,” Mr. Magsajo said.

“Low mass variation, for instance, is like asking someone to pay for 1 kilo of steel and only getting 900g,” he said, adding that PISI would “intensify” its test-buy operations.

BusinessWorld sought Real Steel and Metrodragon for comment, but has not been able to reach them.

PISI last year listed Real Steel and Metrodragon among manufacturers that it found to have produced substandard steel bars, along with Capasco, Phil Koktai Metal, and Continental manufacturers.

DTI last year said it would investigate the alleged proliferation of substandard steel after legislators observed damages to buildings caused by the earthquakes in Mindanao. The Bureau of Customs also monitored imported steel bars.

The Bureau of Philippine Standards in March approved the Philippine National Standard (PNS) 49:2020 Steel bars for concrete reinforcement — Specification, considering the local engineering code, as well as geographical and environmental conditions.

DTI allows the domestic distribution of deformed steel bars, rerolled steel bars, and equal leg angle steel bars if these products come from plants certified by the Bureau of Philippines Standards. — Jenina P. Ibañez

A touch of luxury

October 5, 2020 | 12:04 am

BULGARI gives us a touch of luxury in these difficult times with the release of its Fall-Winter accessories collection last week.

The line pushes forward old favorites such as the Serpenti (“snakes” in Italian) motif, familiar to the brand since the 1940s. The brand was founded in the 1880s in Rome, and achieved worldwide fame in the 60s through relationships with celebrities such as Elizabeth Taylor, known for her fabulous jewelry collection, a large part of it from Bulgari.

For starters, the updated Serpenti Forever bag features a more compact shape in vibrant colors and iridescent materials. With new additional pockets and a longer bag strap, it becomes a wearable accessory for someone more modern. With a snakehead stud closure in black and white agate enamel against precious leathers, the variations of the Serpenti Forever bag are crafted to present a dazzling combination of luxury and versatility. The chain itself has motifs reminiscent of scales, making the bag feel as if it wraps itself around you.

The collection was unveiled via a styling afternoon last week with stylist Pam Quiñones. The celebrity stylist talked to guests while wearing a diamond-encrusted Serpenti necklace, appearing as a snake devouring itself. Snakes in the Medieval and Victorian period were used to celebrate the meaning of eternity and rebirth, due to the symbolism of a snake eating itself as a circle, as well as its constant moulting. The necklace also comes in several serpentine variations, such as a simple snake head studded with precious stones. Another variation presents a snake coiled into a ball, or else just capturing the pattern on snakeskin.

Other lines include the Fiorever (taking its name from the italian word for “flowers,” “fiore”), showing sweet little four-leaf shapes also encrusted in precious stones. The Divas’ Dream line, meanwhile, expresses itself as tassels and swags, according to a release, showing Rome’s history through the Baths of Caracalla.

As for the timepieces, the snakes come out again with the Serpenti Seduttori, a celebrity favorite for its illusion of wrapping up against the wearer’s wrist. The illusion is completed by the watch’s face, shaped like a snake’s head. On the other hand, the Divas’ Dream timepieces feature the fan-shaped motif, a curved design celebrating every woman’s enduring elegance and sensuality, and the BVLGARI BVLGARI Lady designs showcase the timelessness of the Maison’s double logo. The same line is present for the jewels, coming out as stackable pieces. Finally, the Lvcea creations combine modern architecture with radiant femininity in unmistakably Bvlgari designs.

Men can play around too: the brand also has the BVLGARI BVLGARI timepiece in a more masculine iteration, and then an octagonal design in titanium and stainless steel finishes, called the Octo Finissimo.

Another updated line is the B.zero1, which was meant to show an interpretation of the Colosseum. According to a release, the line was “made for the unapologetic woman who loves to express herself.” It shows itself with a studded core against sparkling diamonds.

For her part, Ms. Quiñones likes the B.zero1 ring, receiving a vintage version herself. “When I was young, my mom had this B.zero1 ring and I always had my eye on that ring from her personal collection. So I was really honored and happy when she gave it to me.

“The great thing about jewelry is that it can be with you forever and it can be passed on — the same way my mom did that for me,” she said.

Bvlgari shops are located at The Shoppes, Solaire Resort, and Casino. — Joseph L. Garcia

Mercedes-Benz GLA: Compact, utilitarian luxe

October 5, 2020 | 12:03 am

P3.29-M crossover is entry point into three-pointed star’s SUV portfolio

SUVS HAVE always been extremely popular in the Philippine automotive market and, as of late, we’ve been observing a tremendous upsurge of buyer interest in the subcompact crossover category. These “cuter” segment in-betweeners are cheaper to acquire, easier to park, and still manage to offer a lot of the conveniences that many motorists seek in SUVs. This customer interest is likewise reflected in the luxury segment, and Mercedes-Benz Philippines has promptly responded to this interest by completing its lineup of new SUVs with the recent launch of its second-generation GLA.

The Mercedes-Benz GLA is the three-pointed star brand’s entry point into its family of SUV models. It rounds off the Modular Front Architecture (MFA) lineup of vehicles, and is proudly built in its Rastatt, Germany plant. The vehicle now offers more space, advanced safety features, and added character. In its crosshairs are young professionals and young families who are seeking to buy their first luxury car.

This latest GLA is now 1,611-mm tall (plus an extra 5mm, if you factor in the roof rails), increasing its height by more than 10cm compared to its predecessor. Its GLA 200 AMG Line available here showcases a sportier look, with an AMG body styling coming with a diamond radiator grill featuring pins embellished in chrome. It also flaunts 19-inch, twin-spoke light-alloy wheels, and roof rails made of polished aluminum. Inside the cabin, the driver can enjoy the luxury of a multi-function sports steering wheel that is wrapped in beautiful Nappa leather. The seats of both the driver and the front passenger are also more upright and higher than the seats in its predecessor — adding to this rendition’s more SUV-like feel.

The vehicle’s rear seats can be split 40:20:40 to provide more versatility when it comes to storage space and for accommodating irregularly sized cargo. Petite individuals like myself will definitely appreciate the low boot sill, which makes loading heavy cargo into the rear significantly easier. As a matter of fact, its luggage compartment height can be adjusted in two stages, thanks to its continuous floor console.

As the new GLA is now bolder, sportier, and more dynamically designed, the vehicle is also paired with the brand’s proprietary MBUX or Mercedes-Benz User Experience. This is a modern multimedia system that allows several users to set and save their own profiles. The system features a seven-inch instrument and media display screen with its own intelligent voice assistant that the car occupants may interact with, simply by using the key words: “Hey Mercedes!”

Needless to say, the new-age MBUX also supports Apple CarPlay and Android Auto as standard, alongside the major apps that are commonly used for navigation. Moreover, less driver distraction is also promoted with the vehicle’s comprehensive touch operation concept — which is sort of a combination of a touchscreen on the car’s center console and equivalent touch buttons on the car’s steering wheel.

Powering the GLA 200 AMG line is a 1.3-liter, turbocharged engine that spits out 163hp and 250Nm of torque. It is matched with a 7G dual-clutch automatic transmission, and comes standard as a front-wheel drive. Of course, one of its most enjoyable driving features is the car’s Dynamic Select, which allows the driver to choose from several drive settings which include: Eco, Comfort, Sport, and Individual (custom).

Aside from its smaller-displacement engine, the GLA also has an Eco Start-Stop system that helps the user save on fuel and cut down on his/her carbon emissions.

Finally, Mercedes-Benz has always been lauded for its exceptional safety features, and the GLA has its good share of advanced safety technologies. The Mercedes-Benz Intelligent Drive system includes features such as: Active Brake Assist, which is autonomous braking applied to assist the driver during an imminent collision; Attention Assist, which alerts the driver whenever the car detects signs of drowsiness or inattentiveness from the driver; and Active Parking Assist, which supports the driver during parking maneuvers with assists and a reverse camera. A tire pressure loss warning system also comes in handy to immediately inform the driver if any of his/her tires are running low on air pressure, even while driving.

The introductory price of the new Mercedes-Benz GLA is pegged at P3,290,000. Mercedes-Benz Philippines also hints that the high-performance GLA 35 AMG is likely to arrive in the country sometime in 2021.

Canceled tax assessment on Central Luzon Drug affirmed

October 5, 2020 | 12:03 am

THE COURT of Tax Appeals affirmed the cancellation of the P1.14 billion tax assessment against Central Luzon Drug Corp. for 2009.

In a 15-page decision dated Sept. 18, the court, sitting en banc, denied for lack of merit the petition of the Bureau of Internal Revenue (BIR).

The court said the arguments raised in the BIR’s petition were “mere reiterations” of the issues raised in its appeal in the court’s special third division.

“As such, there is no reason for this Court to disturb the Court in Division’s ruling in both the assailed Resolution and Decision,” it said.

The court’s division in November 2018 cancelled the tax assessment of Central Luzon Drug Corp. for being assessed by an unauthorized officer and was upheld in March 2019.

The court stated that the grant of a letter of authority (LoA) to a revenue officer to conduct examinations of a taxpayer’s book of accounts for assessment is necessary under the Tax Code.

“The importance of an LOA cannot be over-emphasized. It is a guarantee that tax agents will act only within the authority given them in auditing a taxpayer,” it said.

“It is an instrument of due process for the protection of taxpayers. Consequently, deficiency tax assessments issued without a valid LOA are void,” it added.

The court also said that a memorandum of assignment (MoA) may allow the examination of taxpayers, as long as it is issued by the commissioner or any of his duly authorized representatives, under the Tax Code and Revenue Memorandum Order 43-90.

Under the order those who may issue the LoAs are regional directors, deputy commissioners, commissioner, and other officials that may be authorized by the commissioner.

The MoA or a referral memorandum or any other letter from the BIR, which seeks to audit a taxpayer, may be considered a valid LoA if it was issued by the authorized representatives who may issue the letter of authority.

The court said the revenue officer who audited the company was not named in the LoA issued in 2010 but in a MoA issued in February 2013 by the chief of the Large Taxpayers-Regular Audit Division 1, who is not one of the authorized representatives allowed to issue LoAs.

The tax assessments issued against the company “are void” as the revenue officer who conducted the auditing does not have authority to do so.

“And as the familiar adage goes, a void assessment bears no valid fruit,” it said.

The court also said that it may rule on issues not specifically raised by the parties in the pleadings.

The BIR said the court in division erred in granting a relief that was not raised by the company, violating its right to fair play and due process.

It claimed that the division also erred in cancelling the assessment solely on the ground that the MoA was signed by a division chief. — Vann Marlo M. Villegas

Farmers’ groups dispute DA claim of P19 palay average buying price

October 5, 2020 | 12:03 am

FARMERS’ ASSOCIATIONS contested an Agriculture department report that buying prices for palay, or unmilled rice, are at or near the P19 per kilogram government support price in the top producing regions, saying that actual prices received for the harvest are much lower.

Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said that farmers and traders across the country report that the prices for clean and dry palay range from P15 to P17 per kilogram, while freshly harvested palay is at P11 to P14.

The Department of Agriculture (DA) cited a Sept. 16-30 price survey conducted by the Philippine Rice Information System (PRiSM) showing a palay price average of P18 in Central Luzon and P19 in Cagayan Valley.

The report said newly-harvested palay in the two regions fetched an average of P14 per kilo.

The National Food Authority (NFA) pays P19 per kilo for palay with 14% moisture content, setting a price benchmark for the sector. The NFA’s mandate is to maintain a national buffer stock of rice, and does not have the funds or the storage capacity to purchase the entire harvest, leaving many farmers to try their luck with private traders, who try to undercut the NFA price.

According to the DA, the PRiSM survey was conducted across 16 regions and involved 219 respondents, including farmers, traders, and millers.

“We base our analysis and decisions using more reliable data. We go down to the communities to monitor and ensure that our interventions are in place and benefit our farmers,” Agriculture Secretary William D. Dar said.

The survey also included palay price-monitoring data from DA regional field offices and local government units.

PRiSM gathers location-specific data on the status of rice crops such as rice area estimates, planting dates, yield estimates, and crop health assessments.

The DA also cited the Philippine Statistics Authority’s estimate of average palay farmgate prices for the second week of September, which was P17.12.

Mr. Dar said claims by farmers’ groups that low palay prices are due to Republic Act No. 11203 or the Rice Tariffication Law are “exaggerated.”

Mr. Dar said FFF claims of weak prices have been “debunked” by the survey data.

“Our PRiSM data debunks the disinformation waged by interest groups against the Rice Tariffication Law, blaming it for the decline in prices of palay,” Mr. Dar said.

“It can be seen that the data used by the government is not far from each other and the reality is that the prices of palay are not as low as interest groups claim on social media,” he added.

PRiSM is a joint venture by the Philippine Rice Research Institute, International Rice Research Institute, and Swiss technology firm Sarmap.

“Even assuming that Secretary Dar’s P19-figure is true, the reality is that farmers actually receive a much lower price because they lack the drying, cleaning, storage, trucking and other facilities to meet the quality standards for such a price,” FFF’s Mr. Montemayor said.

“PRISM was designed primarily to monitor crop conditions, including damage from calamities, using satellite imagery. It was not intended to be a price monitoring tool,” he added.

Separately, Samahang Industriya ng Agrikultura (SINAG) in a statement also disputed the DA’s price claims, citing its own feedback from rice farmers showing that “real” prices for palay are much lower.

“We reiterate our call for the government to procure all harvest. It is unfortunate that the DA has resorted to disputing the data on the ground rather than finding ways to address the depressed farmgate price of palay,” SINAG said. — Revin Mikhael D. Ochave

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