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TransCo seeks smaller feed-in tariff rate for 2020

STATE-LED National Transmission Corp. (TransCo) is asking the energy regulator for provisional authority to implement starting January a feed-in tariff allowance (FiT-All) rate of P0.2278 per kilowatt-hour (kWh) for 2020 ahead of the hearing on the merits of its application.

FiT-All, a uniform charge in pesos per kilowatt-hour, is payable by all electricity users that is calculated and set annually.

Distribution utilities, system operator National Grid Corporation of the Philippines, and retail electricity suppliers serve as collecting agents.

The proceeds go to the FiT-All fund, which is being administered by TransCo.

The FiT-All mechanism was established under Republic Act. No. 9513, or the Renewable Energy Act of 2008, to help spur the development of emerging renewable power sources such as wind, solar, run-of-river hydropower and biomass.

In its application, TransCo said it arrived at the FiT-All based on a factors that include the forecast annual required revenue of eligible renewable energy plants, the previous year’s over and under recoveries, forecast annual electricity sales. It said it also took into account “other relevant factors to ensure that no stakeholder is allocated with additional risks in the implementation of the [feed-in tariffs].”

The application is dated July 17, which is days ahead of the end-July deadline for each year.

TransCo has yet to receive ERC approval for the P0.278/kWh rate it applied for 2019 “or the updated amount at the time of evaluation.”

TransCo expects renewable energy power plants to generate a total of 4,098,632 megawatt-hours (MWh) in 2020, 20% more than the 3,413,468 MWh projected for 2019. Of the forecast power generation, biomass plants and wind farms are expected to account for the biggest share with 1,465,170 MWh and 1,086,589 MWh, respectively. — Victor V. Saulon

Businessworld Analysts’ Poll

ECONOMISTS expect gross domestic product (GDP) growth in the second quarter to have picked up from the first-quarter expansion, driven primarily by stronger household spending amid slower inflation, but weighed down by residual impact of delayed enactment of the 2019 national budget that was signed in mid-April. Read the full story.

Businessworld Analysts’ Poll

Peugeot ramps up its presence with 3008 Active

By Manny N. de los Reyes

I GOT to test Peugeot’s 3008 GT Line early this year and came away very impressed. First, the new 3008 is nothing less than a radical departure from its predecessor. While the previous model was virtuously practical, it had wallflower styling that seemed to appeal more to soccer moms more concerned about child seat mounts and baby stroller-carrying capacity than eye-candy styling.

The new model, on the other hand, is an outright head-turner, from its bold and very upscale-looking grille and expressive headlamps, to its svelte side panels, windowline and artfully shaped C-pillar, to the distinctive “lion’s claws” three-bar LED taillights. In one model change, the Peugeot 3008 morphed from a homely MPV to a sexy SUV/crossover.

Instead of baby seats, strollers, and groceries, you’d expect to see golf clubs or an expensive mountain bike being carried by this stylish crossover. Or an elegantly attired couple in the front seats off to the theater.

The only catch? The price. At P2,890,000, the new 3008 GT Line model cost over a million bucks more than the old one — substantially over the budget of many households.

Thankfully, Peugeot Philippines is addressing that pricing issue. To continue its aggressive strategy towards increasing and solidifying its presence in the local crossover-SUV segment, it has introduced a new and much more affordable 3008 Active variant. Following the footsteps of its highly desirable 3008 GT Line, this new variant comes at a price point that is whopping P500,000 less than its GT Line sibling.

“Peugeot is proud to unveil the first stage in its long-term goal of bringing its products to a wider and truly global audience,” Peugeot Philippines President Glen Dasig said. “To achieve this, we are making our vehicles more accessible to the market while still providing the same driving experience and comfort found in our current range,” he added.

Similar to the GT Line variant, the Peugeot 3008 Active Diesel possesses a unique and distinctive style. Its dynamic silhouette highlights an athletic and aggressive stance, creating one uninterrupted flow from the concave radiator grille with edged trims and chromed facets to the gloss black rear panel incorporating Peugeot’s signature claw effect LED lighting. The slim halogen headlights complete the look by providing the vehicle a feline-like appearance. It rolls on stylish 18-inch polished alloy wheels wrapped by generously sized 225/55R-18 all-terrain rubber.

Inside, the Peugeot 3008 SUV Active features a modern and sophisticated cabin. Peugeot’s critically acclaimed i-Cockpit provides the driver the utmost in comfort and accessibility with an elevated driving position, compact steering wheel, touchscreen controls, and a futuristic all-digital dashboard.

Infotainment comes from an eight-speaker Bluetooth/USB audio system with an eight-inch touchscreen display and steering wheel controls. Upscale features include full-grain leather steering wheel with two-tone stitching, electric parking brake, cruise control, fully automatic dual-zone climate control, and one-touch front and rear power windows with anti-pinch protection.

Both front seats have multiple adjustments (including height) while the 60:40-split rear seats have a “Magic Flat” folding feature. Safety features include dual front and side air bags, ABS, EBD, Brake Assist, ISOFIX seat mounts, rear parking sensor, Advanced Grip Control (with five Grip modes), Hill Start Assist, Hill Descent Control, and a Tire Pressure Monitoring System.

At the heart of the Peugeot 3008 SUV Active is a 2.0-liter turbocharged Euro 4 diesel engine also found in the GT Line. With an exhilarating output of 150hp and 370Nm of torque, the turbocharging technology found in the 3008 Active provides more power and consumes less fuel than other non-turbocharged vehicles with a similar displacement. “No compromises have been taken in making the Peugeot 3008 SUV Active more attainable,” Mr. Dasig said. “This is proof that Peugeot has taken serious interest in expanding its reach in the Philippines by providing products that are priced very competitively against its rivals,” he added.

Since formally opening in 2012, Peugeot has grown throughout the Philippines and currently has a total of seven dealerships nationwide.

The Peugeot 3008 Active Diesel is now available in select Peugeot dealerships nationwide with a price of P2,390,000 and comes in three exterior colors: Bianca White, Nera Black, and Artense Gray.

Davao City readies 500 hectares for durian farms to meet China demand

DAVAO CITY — Farmers in Davao City’s upland Baguio district have started planting durian seedlings under a project that aims to develop an additional 500 hectares to meet growing demand for the fruit, particularly from China.

“If they started planting in June, in five to six years, the farmers will start harvesting durian… the demand is getting higher, especially the China market,” Davao Durian Industry Association Council (DIADC) Secretary Manuel R. Villanueva told reporters last week.

The Department of Agriculture-Davao Region (DA-11) and the Davao City Agriculture Office launched the Durian 500 project in May.

“The City Agriculture Office has started distributing durian seedlings. About 20,000 durian seedlings are targeted for planting in the 500 hectares that cover the areas of Baguio District that include Tawan-Tawan, Carmen, Wines, and Malagos area,” he said.

The local government and the DA-11 are providing other inputs such as insecticide.

Mr. Villanueva said domestic demand for the fruit, including in the Visayas and the capital Metro Manila, has also been increasing.

“We are expecting that (domestic) demand will grow so we will have to plant more,” he said.

DIADC President Candelario B. Miculob said the association is hoping that a bilateral trade deal between the Philippines and China will include fruit such as durian is approved under President Rodrigo R. Duterte’s administration.

“We are hoping that a bilateral trade agreement with China will be approved as this will also help attract foreign investors to put up processing plants here. We have asked the President to push for the bilateral trade (deal),” Mr. Miculob said.

Mr. Villanueva added that there will be an abundant supply of durian for this year’s Kadayawan sa Davao Festival.

Seven DIADC members will be setting up shop for the 6th Durian festival, a sub-event of Kadayawan, from Aug. 9 to Sept. 9 at SM Lanang Premier.

Mr. Villanueva said the standard per kilo price will be P80, possibly falling to P50 towards the end of the festival season.

Participant in the trade show are hoping to offer a “durian buffet” of several varieties at P180 per person.

“There are many ways to experience durian — and that’s the kind of food experience everyone can look forward to. We will be holding eating contests, special hour sales, and we will also be introducing new ways to eat the fruit,” he said. — Maya M. Padillo

Not a swan song but a quiet rebel yell

Text by Kevin C. Limjoco; Photos by Isabel N. Delos Reyes

TO CELEBRATE a decade of producing successful high-concept and high-performance F models, Lexus created special limited editions of the RC-F coupé and GS-F sedan at 500 units each for the world. We got to test the North American variant, one of 240 for their market, and after a week with it, I can boldly say that I like it even more now than I did before. Though I still prefer the larger cabin and overall avant-garde design of the LC 500, this limited edition RC-F made my emotions soar. Acceleration from 0 to 100 km/h happens in 4.3 seconds with a top speed of 270 km/h.

The silky smooth 470-bhp RC-F is still fractionally quicker, faster, and more visceral than the current LC 500 which is both larger and heavier. Somehow, the seasoned design looks current again thanks to the unique packaging. The 10th Anniversary edition gets an awesome Matte Nebula Gray paint job (the carbon-fiber bonnet is painted, and it is Lexus’ first use of matte paint on a production model since the LFA went out of production in 2012) that contrasts beautifully and purposefully against the exposed exterior carbon-fiber active rear wing, carbon-fiber roof, polished black finish of the mixed 19-inch 20-spoke forged BBS alloy wheels shod with sticky Michelin Pilot SuperSport 255/35R-19 front and 275/35R-19 rear tires, and the fabulous Brembo six-piston front (clamping on vented and slotted 14.9-inch discs) and rear four-piston aluminum calipers (clamping also on vented and slotted 13.5-inch discs) are painted blue.

That theme (called Fuji Blue) from the brake calipers and “F” badging on the front fenders are then continued and applied gloriously in the cabin. The updated interior uses abundant special Blue Carbon fiber trim that includes a discreet metal model plaque on the driver’s side door panel that complements the further bespoke interior treatment which includes the front sculped bucket seats finished in vivid blue semi-aniline leather with white accents and the F symbol embossed in the integrated head restraints, the gear shift knob, switch surrounds, the steering wheel with a white band at 12 0’clock, instrument panel hood, and matching colored front seat belts.

The updated equipment list goes on to include premium triple-beam LED headlights, a Torque Vectoring Differential together with the TORSEN limited slip differential, Adaptive Variable Suspension, Vehicle Dynamics Integrated Management, and the incredible 835-watt 17-speaker Mark Levinson surround system combined with the full infotainment suite through a 10.3-inch central display and Remote Touch control.

The Lexus RC-F 10th Anniversary edition model may not be dynamically changed from before as a whole, but the culmination of all the optional and new bits makes it feel and drive way more special than ever.

LANDBANK targets agrarian reform farmers with P5-B loan program

LANDBANK of the Philippines (LANDBANK) said it has allocated P5 billion for a new loan program to assist Agrarian Reform Beneficiaries (ARBs) in financing rice, corn, and high-value crop production, and the acquisition of small farm equipment.

The Accessible Funds for Delivery to Agrarian Reform Beneficiaries (AFFORD-ARBS) was presented by the state-owned bank during the distribution of certificates of land ownership awards (CLOAs) to ARBs in Davao City on Friday.

LANDBANK turned over a total of 58,387 CLOAs, which covers 102,727 hectares of land, to DAR. These will be distributed to 60,233 ARBs from Regions 9, 10, 11, 12, and 13.

Also present were President Rodrigo R. Duterte and Department of Agrarian Reform (DAR) Secretary John R. Castriciones. This is the second regional CLOAs distribution attended by Mr. Duterte, the first being in General Santos City in June. Some 6,679 hectares were distributed to 3,604 beneficiaries from Sultan Kudarat, North Cotabato, South Cotabato, and Sarangani Province.

“As of end-May 2019, LANDBANK had fully turned-over to DAR a total of 208,895 CLOAs, covering a total of 354,783 hectares of land,” the bank said in a statement.

LANDBANK recently said that Mindanao will receive the biggest share of its loans.

Cecilia C. Borromeo, president and chief executive officer of LANDBANK, said that the bank is looking to increase lending to the agriculture sector by 20% by 2020.

Mr. Duterte warned in his State of the Nation Address last month that he might abolish LANDBANK foe allegedly neglecting its mandate to finance agricultural projects and endeavors, adding that the bank has preferred to engage in “many commercial transactions.”

The bank said that it is the only bank that has complied with the Agri-Agra Reform Credit Act, or Republic Act 10000, which directs banks to allot at least 10% of their total loanable funds to ARBs ad 15% to farmers and fisherfolk. — Vincent Mariel P. Galang

T-bill rates to drop on Fed move

RATES OF THE Treasury bills (T-bill) on offer today will likely end lower following strong demand for short term papers, the US Federal Reserve’s rate cut and renewed US-China trade tensions.

The Bureau of the Treasury (BTr) is offering P15 billion worth of Treasury bills (T-bill) at its auction today, broken down into P4 billion and P5 billion for the three- and six-month instruments, respectively, and P6 billion in one-year papers.

Traders expect T-bill rates to decline across the board amid strong liquidity and following the US central bank’s move to cut benchmark rates last week.

“We expect it to be around 20 basis points lower as the market recently rallied with the liquidity coming from the last tranche of the rate reserve cut last July… Also, tracking US treasuries which are lower dahil sa rate cut ni Fed (because of the Fed’s rate cut),” a bond trader said in a phone interview on Friday.

“Rates of T-bills for auction could move 30-50 bps (basis points) lower from previous auction amid very strong demand for short term papers,” Kevin S. Palma, Robinsons Bank Corp. peso debt trader, said in a text message on Saturday.

The Treasury made a full award of the T-bills it auctioned off last July 22, raising P15 billion as planned as the offer was almost five times oversubscribed, with tenders amounting to P74.32 billion.

Yields on the three-month, six-month and one-year papers declined to 3.769%, 4.1% and 4.519% at that auction, respectively.

At the secondary market on Friday, the three-month, six-month and one-year T-bills were quoted at 3.818%, 4.046% and 4.151%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates publishing on the Philippine Dealing System’s website.

Meanwhile, as widely expected by the market, the Fed decided to trim its policy rates by 25 basis points at its meeting last week, its first in a decade.

However, Mr. Powell said in a news conference following the meeting that the central bank had no plans of adjusting rates further, as the latest cut was only done to adjust to economic conditions.

“There are lot of factors in play here. Despite the Fed delivering a hawkish cut, bond bulls continue to take center stage after US President [Donald] Trump announced additional tariffs on Chinese goods, fueling speculations that the Fed may consider easing again in September,” Mr. Palma said.

Mr. Trump announced on Twitter last week that he will impose another round of tariffs on Chinese goods, virtually taxing all of China’s imports to the US.

Mr. Trump met with his Chinese counterpart Xi Jinping on the sidelines of G20 summit in Osaka, Japan on late June, wherein both countries agreed to resume trade talks.

The new round of tariffs comes after the world’s two biggest economies met in Shanghai earlier this week that yielded no result.

“Onshore, we are headed for a data-heavy week and with July inflation seen to be tamed, local policy rates may continue to ease as soon as the August 8 Monetary Board meeting,” Mr. Palma added.

Inflation likely slowed further in July as food prices sustained a decline, analysts said in a BusinessWorld poll, adding that this will give the central bank space to resume trimming interest rates.

A poll of 17 analysts and a research group yielded a 2.4% median estimate for July inflation, within the midpoint of the 2-2.8% estimate range given by the Bangko Sentral ng Pilipinas (BSP) and slower than June’s 2.7% print.

The Philippine Statistics Authority will release official inflation data tomorrow.

Following expectations of easing inflation, market watchers asked in a separate BusinessWorld poll said the BSP will likely trim policy rates this week, with 16 respondents expecting a 25-bp rate cut when the central bank’s policy-setting Monetary Board meets on Thursday for its fifth review this year.

BSP Governor Benjamin E. Diokno earlier said central bank will likely cut policy rates this semester before moving to reduce banks’ reserve requirement ratio (RRR) further.

After a 100-bp RRR cut across all banks on May 31, the BSP trimmed the reserve ratios of universal and commercial lenders and thrift banks by another 50 bps last June 28 to 16.5% and 6.5%, respectively.

Another 50-bp reduction was implemented last July 26, bringing the reserve quotas of big banks to 16% and thrift banks to 6% and completing the phased cuts the BSP announced in May.

The government is set to borrow P230 billion from the domestic market this quarter through T-bills and Treasury bonds.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — B.M. Laforga

Modern reinterpretations of traditional craft at ArteFino

HERITAGE is such a loaded word these days, and in the face of a rapidly changing world, preserving a legacy seems ever more urgent.

Sure, you can go on an archaeological dig or immerse yourself in indigenous culture, but the ArteFino bazaar, now on its third year, helps a consumer preserve heritage by that most pleasurable of activities: shopping. The fair will run from Aug. 29 to Sept. 1 at its new venue, the Fifth at Rockwell.

Heritage is this year’s theme, and during a preview last week, we got a sense of what heritage means, planted in Rockwell, in this most urban of settings.

There were shoes from Zapateria, using native materials to show the tarsier, but stylized to show its eyes as modern emojis. Jewelry from Adornata seems classic at first, but then can be taken apart to suit the modern woman. Simbolo, a new collection by jeweler Jul B. Dizon, shows slices of Filipino life expressed through gold and jewels (like a stylized rendering of a Moro couple).

Fans by Monchet Olives were also on display, and Kathy & Kathy Bespoke impressed with tambourine jewelry.

Fun Nest, meanwhile, showed traditional basket weaving techniques reinterpreted to fit into more modern homes. Haspe Design Studio meanwhile, taps the skill of furniture makers who have been at it for generations — while the pieces won’t seem out of place in a Danish catalogue, the craftsmanship is all Filipino.

Other highlights include the participation of the De La Salle College of St. Benilde’s Industrial Design Students, as well as Barracks by ArteFino, a section devoted to men, curated by Monchet Olives.

All in all, about 130 brands will show during the fair.

“It’s all interwoven,” said Mercedes Lopez-Vargas, co-founder of ArteFino during an interview with BusinessWorld, responding to a question about the relationship between artisanship and heritage. “You’re preserving tradition (in performing artisanal crafts), and because of that, you’re preserving the underlying cultural values that are part of these traditions.”

“With the intent of preserving, we’re trying to contemporize,” said Ms. Vargas.

As noted earlier, most of the items on display and which will be on sale are mostly modern reinterpretations of traditional crafts. Maybe you’re looking at traditional materials or techniques, but the look and purpose are wholly modern. Perhaps making something that fits into the modern world is the price to pay for them to even make an appearance: Ms. Vargas said, “I also struggle with that sometimes.”

“To be able to sustain, you have to try to change sometimes. At the same time the sensibilities are still there,” she said.

The choice is defended by her next words: “The struggle is being able to keep the tradition: being able to go back to it when you need it, but at the same time, knowing that maybe, to continue surviving, you have to be able to move forward.”

“If you don’t do it at all, everything would be gone.”

While BusinessWorld tried to box the ArteFino customer as an upmarket, advanced, and established female (much like its founders), Ms. Vargas corrected us: “That would be a bazaar customer.”

“Our demographics are younger. They’re also more informed,” she said, giving an example that a consumer at the fair would be more likely to ask who made the item they’re about to purchase.

“These are the kind of patrons that we’d like to be able to work with. The people that understand what we’re doing: we’re preserving, we’re conserving, we’re upcycling, we’re repurposing.” — Joseph L. Garcia

Yields on gov’t debt down on BSP bets

By Carmina Angelica V. Olano
Researcher

YIELDS ON government securities (GS) traded on the secondary market fell across the board on heightened expectations that the Bangko Sentral ng Pilipinas’ (BSP) will cut rates following the US Federal Reserve’s move to ease policy.

On average, GS yields went down by 16.3 basis points (bp) week on week, according to the PHP Bloomberg Valuation Service (BVAL) Reference Rates as of Aug. 2 published on the Philippine Dealing System’s website.

“The latest declines in PHP BVAL yields have been largely brought about by the latest 0.25-bp cut in key US short-term interest rate [by the Fed], expectations of further easing in local inflation rate…and possible cut in local policy rates on the next local monetary policy-setting meeting on August 8, 2019,” Rizal Commercial Banking Corp. economist Michael L. Ricafort said in an email.

In a separate phone interview, Jonathan L. Ravelas, chief market strategist at BDO Unibank, Inc. shared the same view: “Yields were down, first, on expectations the Fed’s [recent] rate cut will give the central bank more policy space. [Second], as inflation decelerates, the BSP will tend to cut rates.”

Mr. Ravelas also noted that if other macroeconomic conditions — like oil prices and the peso — are good, then “there could be another cut this August 8.”

The BSP’s Monetary Board meets on Aug. 8 for its fifth policy review for 2019. The central bank has signaled that further cuts in benchmark interest rates are on the table after it reduced borrowing costs by 25 bps in May. This was its first rate cut since a cumulative 175-bp hike last year in the face of multi-year high monthly inflation rates.

The BSP’s Department of Economic Research said last week that July inflation likely settled within the 2.0-2.8% range, saying lower rice and domestic LPG costs, the downward adjustment in electricity rates and the recent peso appreciation likely tempered price pressures last month.

The floor of BSP’s estimate would be the slowest in more than two-and-a-half years or since October 2016’s 1.8%, while the ceiling compares with June’s 2.7% and the 5.7% clocked in July last year.

Meanwhile, last Wednesday, the Fed trimmed its policy rates by 25 bps for the first time in a decade. However, Fed chair Jerome Powell said during the two-day meeting of the central bank’s Federal Open Market Committee on July 30-31 that the latest cut was only done to adjust to economic conditions.

Treasury bills (T-bill) eased across the board, led by the 364-day debt papers which yielded 4.15%, down 38.3 bps from the week-ago level. The 91-day and 182-day T-bills went down 7.5 bps and 7 bps to 3.82% and 4.05%, respectively.

Bonds at the belly of the curve likewise fell. The two-, three- and four Treasury bonds (T-bond) were quoted at 4.31%, 4.42% and 4.48%, down 19.6 bps, 15.9 bps and 16.6 bps, respectively. Similarly, the five-, seven-, and 10-year papers yielded 4.5%, 4.53%, and 4.58%, which were 19.6 bps, 22.3 bps and 17.9 bps lower week-on-week.

Yields on longer-term debt papers also declined, as the 20- and 25-year T-bonds were quoted at 4.91%, down 7 bps and 7.1 bps, respectively, from a week ago.

For this week, analysts expect yields to ease further.

BDO’s Mr. Ravelas expects yields to move sideways to down ahead of significant data and developments to be released this week.

“The market expects monetary policy to be cut, the country’s gross domestic product (GDP) will improve, and inflation will be lower,” he said.

For RCBC’s Mr. Ricafort, “Philippine interest rate benchmarks…could still continue their easing streak in the coming weeks…especially if the latest inflation data continue to ease further, if the latest GDP growth data for 2Q 2019…remained relatively softer…, and if the local policy rates are cut on the next monetary policy-setting meeting…”

The Philippine Statistics Authority will report July inflation data on Aug. 6 and second quarter GDP data on Aug. 8.

8990 in talks to acquire property in Pampanga

MASS HOUSING developer 8990 Holdings, Inc. is in talks to acquire up to 200 hectares of land in Pampanga for more than P1 billion.

8990 Holdings President and Chief Executive Officer Willibaldo J. Uy said they are in “very close acquisition mode” for a 180 to 200-hectare property in the province.

“We’re talking to about four to five people (to sell the property), it’s contiguous… There are several places in Pampanga that we’re talking about, all within the same area,” Mr. Uy told reporters after the company’s annual shareholders’ meeting in Makati last week.

The listed firm plans to transform the property into a socialized and low-cost housing project, as part of its effort to expand to second-tier cities. Once it closes the acquisition, Mr. Uy is hoping they can start developing the land by 2020, should they secure all the necessary permits.

“We’re looking now at second-tier cities, the provinces. But our priority is always in highly populated areas,” Mr. Uy said.

8990 Holdings ended the first quarter of 2019 with 701 hectares in its land bank, up from the 478 hectares it had by end-2018. The company earlier said it can generate P154 billion in sales across all geographic locations from its 2018 land bank.

To date, the company’s largest project is the 13-hectare Urban Deca Homes Ortigas along Ortigas Avenue Extension. The development consists of 22 buildings with 19,000 units sized anywhere from 27-40 square meters (sq.m.). It is expected to generate at least P30 billion in sales for the next four to five years.

Mr. Uy said they have already sold 652 Urban Deca Homes Ortigas units worth about P1.2 billion, seeing strong demand from workers near the area.

The top executive also noted that they are seeing strong sales from its Urban Deca Homes Manila project in Tondo, Manila which houses 13 towers offering over 13,000 units.

“What we noticed this quarter is the sales of our Tondo project have really gone up…We’ve already sold about 5,000 units,” Mr. Uy said.

Meanwhile, the condominium manager of the Tondo project is currently facing a case from the Philippine Competition Commission (PCC) over its exclusive deal with an internet service provider and its alleged “abuse of dominance.”

Mr. Uy said they are already settling the case with the PCC.

“We think the settlement is fair. The discussion that we’ve had is a learning experience from both sides, we saw our mistake…from now on we have to be careful about these things, we have to check,” he explained.

8990 Holdings’ net income attributable to the parent went up by 17% to P1.18 billion in the first quarter of 2019, following a 20% uptick in gross revenues to P3.01 billion. — Arra B. Francia

Suzuki PHL climbs up sales rankings

By Manny N. de los Reyes

I HAD the pleasure and good fortune of being seated beside Suzuki Philippines’s Director and General Manager Keiichi Suzuki during a media dinner last Wednesday night.

Mr. Suzuki was rightfully proud of his namesake company’s accomplishments in vehicle sales the last few months. Suzuki Philippines, Inc. (SPH) closed the first half of 2019 on a high note, posting an impressive 14% sales growth over the same period last year and climbing to the sixth spot in the local automobile industry ranking and fifth place in the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) ranking.

“We started the year on the right foot and strengthened our efforts in Q2 to reach more Filipino customers. Our aggressive and strategic marketing campaigns are key in pushing up our position both in the Philippine automobile industry and CAMPI rankings. These achievements reflect the Filipinos’ growing trust in our brand and the quality Suzuki cars that we provide. We are more driven now more than ever to bring only quality driving experience in every Suzuki ride,” shared Mr. Suzuki.

I asked Mr. Suzuki which models were the most popular in the Philippines. His eyes brightened as he emphatically replied, “The Ertiga!” No surprise there as the compact seven-seater MPV segment is arguably the fastest-growing category in the country right now. No surprise, too, that the previous and the all-new current generation Ertigas are selling fast because of their spacious cabins, fuel-efficient drivetrains, and comfortable rides. The Ertiga is responsible for 34% of all of Suzuki’s sales. The introduction of the new Ertiga with the distinctive all-black interior (a departure from the common beige or gray interiors in this category) ramped up sales even further.

Mr. Suzuki was quick to add, though, that the Swift, Celerio, Dzire and Vitara have been vital contributors to Suzuki’s phenomenal sales growth and increasing market share. These top-selling Suzuki vehicles collectively contributed 77% to total H1 2019 sales.

The Suzuki Swift contributed 13% to the brand’s sales for the first half of the year. The Celerio, on the other hand, ranked third among Suzuki’s top-selling vehicles with an 11% share of sales. Powered by a three-cylinder 1.0-liter DOHC engine, the hatchback is available with either a five-speed manual transmission or a Continuous Variable Transmission (CVT), making it the first model in its segment to offer a CVT. Its compact design surprises with an interior that provides ample space, legroom and storage for stress-free driving.

Meanwhile, Suzuki is buckling up for continued strong growth these succeeding months with more targeted marketing strategies. Besides continuous efforts to bring the vehicles closer to the target markets through product displays and test drives, Suzuki reinforces its presence in the transport scene through active campaigns and promotions, including for those in the transport network vehicle service (TNVS) ecosystem.

In this segment, Suzuki is pushing its Vios/Mirage-fighter, the 1.4-liter-powered Ciaz subcompact sedan, which is among the largest and most spacious in its class.

And, of course, there’s the universally loved Jimny 4×4. Mr. Suzuki remarked how much more units of the Jimny they can sell in the Philippines. Unfortunately, worldwide demand is such that supplies in all markets could hardly cope.

But that’s occasionally the price of success. And it’s always a good problem to have.

Davao agri-trade fair expecting buyers from Malaysia, Taiwan

DAVAO CITY — Buyers from Malaysia and Taiwan are expected to participate in the month-long Kadayawan Agri-Trade Fair 2019, which opened August 1 at the SM City annex grounds.

Vicky C. Jimenez of the Mindanao Garden Club Inc., this year’s fair organizer, said buyers from Malaysia have expressed interest in Tillandsia, an air plant abundantly produced by garden shops here.

“Malaysians are particular on Tillandsia. It’s very easy to import because it does not need soil and needs less maintenance and is easy to propagate,” she said.

Ms. Jimenez said the fair hopes to assist Malaysian buyers in importing the plants.

A group of fruit growers from Taiwan are also expected to sample fruits in season such as pomelo, durian, mangosteen, and rambutan.

“We are expecting more visitors this year. We just came back from Thailand and we have invited guests from there and they confirmed that they are coming. Ang aming (Our) buyers, especially during Kadayawan, are foreign tourists, who mostly buy plants,” she said.

Ben C. Gallego, president of the Mindanao Garden Club, said organizers are hoping to negotiate for more space for the fair SM City, which provided space for 400 stalls.

“If hindi kami madagdagan ng (we cannot get more) space, we will reduce some of the (stall) spaces to accommodate (more participants), from the big to the small members,” Mr. Gallego said.

The agri-trade fair is one of the regular highlights of the annual Kadayawan Festival, held during August, peak season for the region’s fruits. — Maya M. Padillo

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