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Aboitiz InfraCapital submits revised plan for Bohol airport

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By Denise A. Valdez
Reporter

ABOITIZ InfraCapital, Inc. submitted to the Department of Transportation (DoTr) last week the revised concession terms for its proposal to operate and maintain the Bohol-Panglao International Airport.

Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. told BusinessWorld the DoTr received the company’s revised concession agreement for the new airport in Bohol, in addition to the revised plan for the Ninoy Aquino International Airport (NAIA) submitted by the consortium of seven conglomerates.

“Panglao also submitted,” he said in a text message over the weekend.

The submission of revised concession terms from airport proponents came after the DoTr said last month it wants all airport deals to be patterned after the concession terms for the Clark International Airport.

This means all concession agreements, even those that were already given to the National Economic and Development Authority’s Investment Coordination Committee (NEDA-ICC), were returned to original proponents for revision.

Transportation Secretary Arthur P. Tugade said having the Clark concession agreement as a template for all airport deals will hasten the process of negotiations with the private entities, as this was already reviewed and approved by the NEDA-ICC.

Mr. Reinoso said the DoTr has so far received two revised concession agreements — for NAIA and Bohol-Panglao airport — and targets to provide feedback on these within the week.

“We’ll try to complete line by line review by next week,” he said Saturday.

Both the “super consortium” and Aboitiz InfraCapital were given original proponent status for its NAIA and Bohol-Panglao International Airport proposals in September.

Aboitiz InfraCapital is also part of the NAIA consortium, together with AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Metro Pacific Investments Corp.

Aside from the two proposals with the DoTr, Chelsea Logistics and Infrastructure Holdings Corp.’s bid for the Davao International Airport and Mega7 Construction Corp. for the Kalibo International Airport are pending submission of revised concession agreement.

The 2020 GR Supra is an enduring icon for Toyota

By Ulysses Ang

WHEN CAN it be said that a vehicle captures the essence or “DNA” of its manufacturer? When it sets new benchmarks for quality and value? When it becomes a leader in its segment, selling many millions around the globe?

The answer, for Toyota, would be “all of the above,” with models like the Vios, Innova, Camry, and Fortuner perfectly matching those criteria for years or even decades.

At the opposite end of the spectrum, a different set of standards defines another brand icon: the Supra. Specifically, the fourth-generation Supra, known inside Toyota as the A80 and by its many fans as the “Mk. IV,” has come to exemplify the brand’s illustrious performance and racing heritage. It is the car that most inspired the 2020 GR Supra, the A90.

The fourth-gen Supra was then the pinnacle of a series that began in 1979 as an upscale version of Toyota’s popular Celica sport coupe. The Supra evolved, in quantum leaps, into a benchmark sports/GT with supercar-level performance.

The “Mk. IV” Supra became a design and performance touchstone, achieved global acclaim and inspired owners to start clubs, Web sites, social media pages, and national events. It also became a pop culture star and is today a sought-after collectible.

The new GR Supra is the culmination of 50+ years of Toyota sports car heritage, infused with the spirit of the fourth-gen model thanks to its striking design, turbocharged 3.0-liter inline six-cylinder engine and driver-centric focus on world-class performance. Supra’s journey to this point has not been simply a lineage of cars, but also a story of dedication from designers, engineers, racers, a Toyota CEO passionate about sports cars and, most critically, Supra owners and fans.

Years after production of the Supra had ended, many inside Toyota, including its CEO, Akio Toyoda, were eager for a sports car revival. The 86 got things started in 2012 as an affordable yet highly capable sports coupe praised for stellar handling. That model instigated talk that something more potent could be coming.

In 2014, Toyota created the FT-1 concept car. “FT” meant “Future Toyota” and “1” indicated “ultimate.” The car’s extroverted shape clearly alluded to the previous Supra, and it certainly got the boss’s attention.

The link between past and present is visibly clear today. The FT-1, at a quick glance, almost seemed like a fourth-gen Supra turned into a 21st-century superhero’s ride. Meanwhile, its “double-bubble” roof, wraparound windshield and side glass openings were distinct nods to the classic 2000GT, and those elements, which together suggest a racing helmet and visor, carried over to the GR Supra.

Toyota craftily worked with Polyphony Digital, creators of the popular Gran Turismo driving simulator, to put the FT-1 into the PlayStation game. Company executives then “drove” the FT-1 in timed laps around a virtual Fuji Speedway. Mr. Toyoda, an accomplished racecar driver, completed the circuit faster than his best real-world lap time at Fuji in his Lexus LFA.

The boss was sold. The Supra got the green light.

Fast-forward to 2019, the fifth-generation sports car is the first-ever Supra to be made available officially in the Philippines. Sold through 16 GR Performance-certified dealerships, the 2020 GR Supra is available starting at P4,990,000 for the Prominence Red color; P5,050,000 for the Lightning Yellow, Deep Blue Metallic, White Metallic, Silver Metallic, Ice Gray Metallic, and Black Metallic; and P5,090,000 for the Matte Storm Gray.

MacroAsia eyes IPO for water business within three years

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TYCOON Lucio C. Tan’s MacroAsia Corp. is planning to hold an initial public offering (IPO) for its water businesses within the next three years.

“Considering the opportunities, we envision to grow further our water business, with our mind set to eventually spin off and list this segment separately at the Philippine Stock Exchange within three years,” Lucio K. Tan, Jr., MacroAsia director, said at the company’s annual stockholders’ meeting last Friday.

MacroAsia Chief Financial Officer Amador T. Sendin told reporters the listing may happen even before 2022, as activities are now ongoing for the planned IPO.

“We’re currently transferring the holding of the shares. It’s currently under MacroAsia Properties Development Corp. We’re putting it under a water holding company. This one takes time,” he said.

MacroAsia Properties Development Corp. currently serves as the vehicle for MacroAsia Corp.’s water businesses, which covers the development and construction of water treatment facilities across the country.

Among its businesses are Naic Water Supply Corp. (NAWASCOR); SNV Resources Development Corp. (SNVRDC); Mabini Pangasinan Resources Development Corp. (MPRDC); Panay Water Business Resources, Inc. (PWBRI) and Watergy Business Solutions, Inc. (WBSI).

Also under MacroAsia’s water business are Cavite Business Resources, Inc. (CBRI); Boracay Tubi System, Inc. (BTSI); MONAD Water and Sewerage Systems, Inc. and New Earth Water System, Inc. (NEWS).

Mr. Sendin added the company is currently working on building the revenue and income base of its water businesses for the planned listing.

Last year, MacroAsia’s water segment booked a 90% increase in revenue to P271.04 million, driven by its acquisition of Summa Water Resources, Inc. and continuous revenue streams from water operations in Nueva Vizcaya, Cavite, Boracay, Bulacan, Albay and Iloilo.

With the creation of a water spin-off, Mr. Sendin said MacroAsia can focus on its core businesses: the aviation and food segments.

“The intention of MacroAsia Corp. is to focus on its core. These are related to aviation services and at the same time the food side. The capital allocation policy for the water segment is currently different from the aviation services. It will help us if we can separate this, and that’s the logical reason for the separation,” he said.

MacroAsia still largely depends on its in-flight catering business for revenues, as this segment accounted for 46% of the company’s total revenues last year at P1.66 billion.

It also deals with ground-handling and aviation, which contributed 39% to MacroAsia’s total revenues last year at P1.46 billion. — Denise A. Valdez

FOTON Gratour MiniVan 1.5: The P570,000 8-seat MPV

By Manny N. de los Reyes

MOST CAR MODELS that come with various engine displacements or seating configurations usually have substantially higher prices for the variants with the larger engine size or greater seating capacity.

FOTON didn’t seem to get the memo — because their Gratour MiniVan, which previously had a 1.2-liter engine and seven-seater capacity, now has a 1.5-liter motor and eight-seat capacity. And it still retails for an eminently affordable P570,000.

Since the seven-seat Gratour MiniVan 1.2 was unveiled in 2015, it has been sought after by first-time car buyers due to its versatility, generous space, and very affordable price. Aside from being able to serve as an efficient and reliable people- and cargo-mover for families, it is also used for delivering goods for businesses, especially in the provinces. Although FOTON has seen plenty of success in the area, the new iteration brings more than enough to the table to also make an impact in the urban settings of Metro Manila.

To this end, FOTON concentrated in revamping the Gratour MiniVan’s packaging, making it more efficient in terms of space, comfort, and performance.

From being powered by a 1.2-liter gasoline engine, FOTON has powered up the all-new Gratour MiniVan with a 114hp, 150Nm Euro 4-compliant 1.5-liter engine. Power is sent to the front wheels via a five-speed manual transmission. Engine noise is now much less, resulting in a more comfortable drive. Plus it now has electric power-steering to make maneuvering even more effortless.

The exterior of the new Gratour MiniVan has been revamped with a new front grille, upswept headlights, sculpted character lines, taillights that extend up and flank the rear window, and new 175/70R14 tires mounted on alloy wheels. The versatile interior professes a sense of simplicity, tidiness, and overall comfort.

The new Gratour MiniVan 1.5 drives almost as easily as its smaller stablemates despite its larger dimensions. Although the wheelbase is the same as the first generation (a generous 2,710mm — about the same as most executive sedans), the new model boasts of additional space for passengers and cargo, as the seating capacity was upgraded from seven to eight, maximizing or even further monetizing its utility and functionality. The third row seats are also designed to fold for maximum cargo space.

The 8-seater Gratour also boasts of five doors, two of them are sliding, enabling much easier ingress and egress — even in tight parking spaces. Its ground clearance makes it easy for small children or PWDs to get in and out of the vehicle as well.

When you throw in the seat belt reminders, over-speed alarm, Anti-Lock Brake System and Electronic Brake Distribution, this practical Gratour MiniVan isn’t as spartan as it may first appear. It also scores points with a keyless push-start button, too.

With that P570,000 price tag, this 8-seater makes an attractive choice over the other MPVs, which are some P200,000 more expensive. So while the Gratour MiniVan may not be shifting goalposts in its class yet, it does stand out in terms of space, purpose and value for money.

Does cheering improve performance?

By Tony Samson

Big crowds filling up the stadium, the din of rhythmic chanting, and the sheer enthusiasm of urging a team to victory make up the cheering factor in an event, be it a competition or a rock concert. Can companies use cheering to help the team achieve targets like claiming back market share, raising customer care indices, and bringing up the bottom line numbers?

Can the organization raise its adrenaline level with a cheer rally?

The town hall meeting aims to achieve this feat of exhorting the troops to charge. It bonds the management team with its employees to achieve targets and crush the competition.

Employees are gathered together, in a big office conference room rather than an off-site venue which can be too expensive even with an exchange deal. The chief or a hired consultant, maybe foreign, leads the cheer rally. An evangelical kind of fervor can be employed to get the team behind a new initiative, say announcing a new management team — argh… here are your new saviors.

The pep rally is an approach borrowed from college sports. All the cheering and jeering effort hopes to inspire the team to do better when it hears people shouting and screaming at goals made, leads diminished, and opportunities missed by bad officiating. This faith in the fans’ role may be misplaced but does not seem to be challenged by the charged-up supporters who truly believe they make a difference in the outcome. Even the players thank their fans after a win.

This same conviction drives the urge for a corporate pep talk. It’s micro version is the personal pat on the back, the loyalty award, and even the warm greeting at the elevator — Hey, how’re you doing? The cheering effect rests on the conviction that the company is one team, and even the lowly employee has a stake in a successful corporate initiative about to be implemented, even if this was made without his inputs. (Yes, don’t we all love to fill up daily time sheets?)

This process of inclusion is called a buy-in. It’s an emotional investment in corporate goals by all the peasants in a big tent where they can even ask questions. The corporate town hall meeting is gaining popularity, even if it disrupts everyone’s schedule. While it’s a bit awkward to include actual cheers to get the adrenaline pumping, it is acceptable to invest the effort with a nice catchy slogan. A downsizing exercise can be promoted as “small is beautiful.”

It’s a challenge to convince CEOs to use the pep talk as a motivational tool. They prefer sending out e-mails which dispenses with the need to serve pizzas. With an e-mail blast, the sender does not need to see the audience’s body language or, worse, encounter a wave of coughing and washroom disappearances which are the equivalent of booing at unpleasant news and the one delivering it.

Difficult topics like bad numbers requiring the organization to redefine its priorities and scale back its operations are best sent out as e-mails which have the added advantage of not needing to have a quorum. In the never-off corporate culture, even those out of the office get to feel the ripples of anxiety wherever they are.

The pep rally has its variations. Not every meeting, after all, involves a corporate crisis. Sometimes there is good news to share like the company winning an award or the numbers breaking records. A small get-together, sometimes called coffee with the president, can be more acceptable to a CEO who prefers to speak softly, bringing along an associate he feels comfortable with to fill up the silences with comic relief when the conversation hits an air pocket. A small audience can also be pre-selected on the basis of its high obsequiousness index. The whiners who routinely question corporate directions need not be invited.

Should the position of Chief Cheering Officer (CCO) be established? Her functions will include organizing events and finding things to cheer about within a prescribed budget.

Or is cheering already part of the CEO’s functions? Being at the top of the pyramid gives the leader a unique perspective of where the company is going and what needs to be done to achieve its mission statement. On the other hand, having too much information can hold back his enthusiasm. After all, the CEO may need cheering up himself.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Partying at the MaArte Fair

LET’S TAKE you back to the late ’90s and early 2000s, when climate change was a far-off fear, spaghetti straps were de rigueur, and we all had hope for the future (which is why we all dressed in plastic and glitter). The Syquia Apartments in Malate, once some of the most luxurious in Manila, served as a home for upmarket bohemians. The residents — photographers, actors, editors, writers, designers, artists, and other creatives — opened up their apartments for wild block parties, with each apartment having a unique theme. The parties were eventually put to a halt after a series of petty crimes.

From Aug. 16 to 18, the spirit of the Syquia Apartments lives again, this time in the Peninsula Manila, with MaArte oPen House. The MaArte fair — the annual fund raiser of the Museum Foundation of the Philippines, Inc. (MFPI) — will see 41 guest rooms of the storied hotel closed off for about 60 exhibitors, recalling the parties of the past.

The press was given a taste of what to expect as The Pen’s Salon de Ning hosted some of the brands that would be participating in the MaArte oPen House.

We’re already in love with some of the items: a crab-shaped golden clutch by Aranaz, ceramics by Bangay, jewelry by DSV Studio, watches by Ibarra, old-fashioned tambourine jewelry by Natalya Lagdameo, and scents by Oscar Mejia.

Upcoming new brands include FDCP members Joel Escober, Lally Dizon, Maco Custodio for Pinoy ManCave, Coco and Tres, Pika Pika + Pinta, Vesti, and Evangeline Austria are also participating. This year’s fair will also feature fine edibles by Auro Chocolates, Green Babes, and Felicisimo Gourmet Homecooking.

“It’s a celebration of our culture,” said the hotel’s Director of Public Relations Mariano Garchitorena. “The potters from Sagada, weavers from Lake Sebu, bag makers of Davao, and jewelers from Muntinlupa create beautiful objects while creating jobs. When you purchase something at the MaArte Fair, you never know what this might bring into your life — a thing of beauty and function, and maybe even a renewed love of country.”

Alongside its annual fund raiser, the MFPI will also hold the MaArte Talks, a series of conversations with select business owners who can offer new entrepreneurial tips and insights.

“I attended quite a number of parties in North Syquia as a guest,” said MFPI treasurer Mico Manalo. “These were in various apartments in the different floors of the building, so no two setups were the same. Aside from the food and drink, there was a lot of music, and a it was like crossing different environments and miniature cultures.”

While none of the exhibitors were members of the Syquia set, Mr. Manalo did note that artist Phyllis Zaballero, MFPI Vice-President, owned a studio in North Syquia and was one of those who opened their doors during those legendary parties.

The world is a lot different now, and there was something in the air during the 1990s and 2000s that was heady and invited a sort of raucous recklessness that kept you alive, and would wake you up in the morning for more. Mr. Manalo says that the spirit of Syquia can live again, but, “Community is the key! It can be done anytime, anywhere, but you have to have people who feel that they belong to a place, that they take care of, and watch over each other. People who delight in the presence of friends and neighbors. Its an extended family.”

Speaking about how the theme translates into the MaArte fair, Mr. Manalo says, “MaArte has grown to become a community of merchants and patrons with the common goal of preserving the traditional crafts in the country. Many of the merchants know each other, bring their friends and family over. It feels very familiar.” — Joseph. L Garcia

DPWH to open portion of CAVITEx C5 Link this week

THE Department of Public Works and Highways (DPWH) is scheduled to open on Tuesday a portion of the Manila-Cavite Expressway (CAVITEx) C5 Link project.

Public Works and Highways Secretary Mark A. Villar announced the opening of the 2.2-kilometer segment after an inspection yesterday.

“Vehicular traffic spends about 1.5 hours just to cross from Villamor area in Pasay City to Taguig via Fort Bonifacio. On opening, this section will have three lanes on each direction and will enable about 8,000 vehicles to easily cross in half that time,” he said.

The segment forms part of the 7.7-kilometer C5 Link expressway which will connect Taguig to the cities of Parañaque, Las Piñas and Cavite through CAVITEx.

The remaining sections of the P10-billion toll road — the 1.6-kilometer segment from E. Rodriguez to Merville Subdivision, the two-kilometer segment from Sucat to E. Rodriguez and 1.9-kilometer segment from Sucat Interchange to the R-1 Expressway — are scheduled to open before the term of President Rodrigo R. Duterte ends by June 2022.

Mga first quarter of 2022 ’yung buong 7.7 [The whole 7.7-kilometer highway will be finished by the first quarter of 2022],” Roberto V. Bontia, president of the project’s concessionaire Cavitex Infrastructure Corp. (CIC), told reporters on Sunday.

“Ultimately, we foresee that the CAVITEx C5 Link Expressway will benefit about 50,000 vehicles daily… We intend to start construction of the next 2.1-kilometer section from Merville to Sucat, Las Piñas City by fourth quarter of this year,” he added.

Earlier, CIC applied for a toll fee at the Toll Regulatory Board (TRB) for the CAVITEx C5 Link project. The rates are P22 for class 1 vehicles (ordinary cars), P44 for class 2 vehicles (buses and small trucks) and P66 for class 3 vehicles (large trucks and trailers).

CIC is under Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

Suzuki brings Auto Fest 2019 across the country

SUZUKI PHILIPPINES, Inc., the country’s pioneer subcompact car distributor, takes this year’s Suzuki Auto Festival nationwide. The series of exhibits will be held in various SM Supermalls nationwide bringing the Suzuki award-winning cars and the Suzuki Way of Life even closer to more Filipinos.

Join in on the fun and experience Suzuki vehicles up close and personal in the following venues and dates:

• SM Iloilo, July 27-28

• SM BF Parañaque, August 17-18

• SM GenSan, September 21-22

• SM Davao, October 26-27

This year’s Suzuki Auto Festival will showcase the most-valued Suzuki units such as the Suzuki Ciaz, Swift, Dzire, Vitara, all-new Ertiga and the all-new Jimny alongside Suzuki V-Storm motorcycle.

Games and fun activities await car enthusiasts and families to help them bond during the weekend festivities. The Suzuki Safety Scouts Corner will also be there and will be a sure hit with the kids.

Suzuki Philippines Director and Automobile Division General Manager Keiichi Suzuki shared, “We have made it our consistent goal to provide Filipinos with innovations and design that will fit their various lifestyles. Suzuki Philippines is experiencing a business momentum right now due to the consistent support from our valued customers. The Suzuki Auto Festival is a series of celebrations we hold every year as our way of giving back and reminding the Filipinos of our commitment to innovate. We are looking forward to seeing our fans in the exhibits and for them to experience the Suzuki Way of Life!”

For more information about Suzuki Philippines and their automobiles, please visit http://suzuki.com.ph/auto/ and like them on www.facebook.com/SuzukiAutoPH, https://twitter.com/SuzukiAutoPH and follow on Instagram at @suzukiautoph.

Aging app kerfuffle shows fun trumps privacy

By Robert Cyran

NEW YORK — A new app kerfuffle shows that fun still trumps privacy concerns. Consumers love FaceApp’s filter for making selfies look older or sexier, but its Russian ownership has suddenly sparked worries about potential data misuse. Yet the app isn’t new, and people have been posting their images on social media for years. It’s past time for regulators to set some boundaries.

Facebook’s inappropriate sharing of user information and data breaches at the likes of Equifax and Yahoo have prompted hefty fines and settlements, and sparked calls for new regulation. It’s easy to see why adding images to the mix can amplify such concerns. Consumers willingly share their selfies for a few minutes of fun, but once in the cloud those images can potentially be used for everything from identity theft to so-called deepfakes, or realistic looking videos designed to spread disinformation. Senator Chuck Schumer called on the US government to examine whether FaceApp’s Russian owner shares information with the Kremlin.

Perhaps nothing is amiss. The company told TechCrunch it uploaded only agreed images, deleted most within 48 hours, and didn’t transfer data to Russia or share it with third parties. The controversy will probably fizzle out quickly, just as it did when FaceApp was first introduced in 2017. Then users marveled over the ability to age faces and swap genders, the media focused on a “hotness” filter that lightened users’ skin, and experts voiced worries about privacy, only to all be forgotten.

It’s a pattern that has grown increasingly familiar ever since the late Apple boss Steve Jobs put cameras on smartphones and Mark Zuckerberg’s Facebook turned people onto social media. The only thing that changes is the volume — app downloads grow, users surrender more privacy, and experts issue shriller warnings.

Companies and consumers can’t be counted on to break this cycle. The financial incentives are too strong for firms to forswear data collection. It’s unrealistic to expect the average person to give informed consent to every lengthy user agreement. Regulators need real sticks to ensure better behavior by companies, while rules like Europe’s General Data Protection Regulation can give consumers better control of their data. Such measures would offer the best assurance that a silly app is only that.

 

REUTERS BREAKINGVIEWS

Rice SRP to leave small farmers vulnerable to exploitation — FFF

FARMERS said the government should focus on helping small farmers instead of imposing suggested retail price on rice, which they called a means for traders to take advantage of farmers.

“At this point when rice prices have normalized, government must focus on addressing the problems of small farmers, especially since the main harvest season is about to begin,” Raul Q. Montemayor, national manager of the Federation of Free Farmers, said in a statement.

“It may be true that some importers and traders are earning extraordinary profits at the expense of consumers. However, traders can again use the cap on rice prices as an excuse to buy at even lower prices from farmers,” he said.

The Department of Agriculture (DA) said it is seeking to rein in what it called “uncontrolled” market prices for rice by imposing a suggested retail price (SRP) system for the staple grain.

Agriculture Secretary Emmanuel F. Piñol said the DA is currently drafting a memorandum of agreement (MoA) with the Department of Trade and Industry (DTI) to implement the SRP system. This is expected to be signed within the month.

The Rice Tariffication Law, which freed up rice imports by private traders who must pay a 35% tariff on most of their shipments, particularly on rice from Southeast Asia, was passed March this year.

FFF noted that the current price of well-milled rice is higher than its price in 2016 and 2017, the years prior to the implementation of the Rice Tariffication Law.

The Philippine Statistics Authority noted that well-milled rice was at P39.30 per kilo in the fourth week of June, compared with P37.13 for the equivalent week in 2016 and P37.74 in the corresponding 2017 period.

“The spike in prices in 2018 was abnormal and was caused by the refusal of the economic managers to allow the NFA to replenish its dwindling stocks. It was only when President Duterte intervened and allowed the NFA and the private sector to import that prices started to go down.

“Therefore, it is unrealistic to compare current prices against prices during the rice crisis in 2018. It is also deceptive to attribute the current decline in prices to the Rice Tariffication Law,” Mr. Montemayor said.

He also noted that the price of palay, or unmilled rice, have been in a downward trend, at an average of P17.85 per kilo, which is a 23% decline in farmgate price compared to a year earlier.

The price of palay, the form in which farmers sell their harvest, was P17.85 in the fourth week of June, also lower than the prevailing price in the same week of 2016 and 2017 P18.63 and P21.39, respectively.

The price of well-milled rice fell 13% year-on-year while that of regular-milled rice fell 16%.

“What is most painful to farmers is that their sacrifices are apparently going to waste because consumers are not getting the full benefits from the decline in palay prices and the entry of supposedly cheaper imports. The PSA data in fact appears to show that both consumers and farmers were better off when the quantitative restrictions were still in place, if we exclude the abnormal price movements in 2018,” he added. — Vincent Mariel P. Galang

Flight shaming won’t reduce emissions in Asia

By Adam Minter

THIS summer, European vacationers are being brought down to earth. A campaign, marked by hashtags such as #stayontheground and #flightshame, is pressuring travelers to think twice about the carbon impact of their air travel. Even airlines are joining in the public shaming. KLM Royal Dutch Airlines is encouraging people to fly less, and Deutsche Lufthansa AG’s CEO recently declared that cheap fares are “economically, ecologically and politically irresponsible.” Whether connected or not, there’s been a surge in European train passenger traffic this summer.

None of this well-meaning effort will amount to much, however, unless the industry grapples with the environmental impact of its fastest-growing market: Asia.

Aviation industry estimates suggest that global passenger numbers will double by 2037, led primarily by new middle-class consumers in China, India and Southeast Asia. Sometime in the next decade, China will surpass the US as the world’s biggest aviation market.

This growth has been driven partly by population size — China’s middle class alone includes at least 400 million members — and partly by strategy. Rather than waiting for these consumers to become rich enough to afford traditional airfares, Asian low-cost carriers sprung up to meet them where they were economically. In 2008, airlines in Southeast Asia flew 200 million seats. A decade later, they flew 530 million seats; during that time, low-cost carriers expanded their market share from 30% to nearly 50%. The region’s leading such airline, Malaysia-based AirAsia Group Bhd., uses the slogan, “Now Everyone Can Fly!.” It’s on track to become Southeast Asia’s largest carrier — period — in 2019.

Neither the airline industry, passengers — many of whom are flying for the first time — nor local governments have any intention of slowing this growth. To the contrary, by 2035, India plans to build 100 new airports and China plans over 200 of its own. Meanwhile, developed countries including Singapore and South Korea are upgrading and expanding airports to prepare for the expected deluge of new passengers.

East Asia already has the world’s fastest-growing tourist industry and planemakers are salivating at the potential for more growth. The Boeing Co. predicts that Asia-Pacific will account for around 40% of the 44,000 commercial aircraft it expects to sell through 2038.

The environmental costs of this growth are very real. An individual flying roundtrip between New York and London generates the same level of emissions as a person heating their home for a year. That adds up: The airline industry emits nearly 1 billion tons of CO2 annually. If aviation were a country, it’d be a top 10 emitter, bigger than such notable polluters as Brazil, Canada, South Korea, and the UK.

The few conscientious Europeans who choose not to fly will in all likelihood be vastly outnumbered by the Asians who do, even if the latter are often flying shorter distances within the region. While environmental consciousness is growing across Asia, sustainable consumption — and especially the notion that consumers should opt out or pay more for the benefits of a consumer economy — remains an idea largely embraced by the already affluent.

That means airlines and local governments are going to have to find other ways to mitigate the impact of air travel in Asia. There are no easy solutions, of course. But governments can and should take tangible steps now. For instance, China and India could join the over 70 states participating in the Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA, a market-based program in which airlines buy “offsets” for their emissions. Its idealistic goal is to make aviation carbon-neutral by 2020.

Greater government support for biofuels and other sustainable fuels, especially by flag carriers and state-supported airlines, would reduce emissions and create economies of scale that would make it more affordable for other airlines to adopt such cleaner-burning fuels. Airlines could work together to establish and maintain “green” flight routes that reduce fuel use and climate impacts.

Finally, countries with an interest in developing plane manufacturing sectors could increase investments in electric and hybrid propulsion. Governments won’t get far if they try to tell eager new consumers they can’t fly. The key is to make all those trips a lot less damaging than they currently are.

 

BLOOMBERG OPINION

Staying cool in Japan

By Cathy Rose A. Garcia
Associate Editor

SUMMER in Japan is usually very hot and humid, but thankfully Japanese consumer companies have come up with many innovative products that help people keep cool.

Shelves of “cooling” products can be found in stores like Don Quijote, Matsumoto Kiyoshi, Daikoku Drug, Tokyu Hands, and Loft.

Even if the signs and names are in Japanese, just look for products that feature images of penguins, polar bears, snow flakes, and icicles. If you’re still unsure, grab anything emblazoned with the word “COOL.”

One ingenious product is Shirt Cool, which, as the name suggests, is sprayed on clothes and gives the wearer a cool feeling when they get sweaty. Brands like Shirt Shower or Cool Shirt Mist have the same effect, and also come in light blue bottle sprays.

Instant Ice, on the other hand, is meant to be sprayed on a handkerchief and used to refresh your face when you get hot. The aerosol spray is small enough to be tucked in a woman’s purse.

If there’s one product I swear by, it’s Seabreeze Deo & Water (around ¥500-600 or P250-300). Seabreeze is a liquid deodorant that you can use all over the body. To use, shake the bottle well and apply the liquid to your skin. It’s best when you’re hot and sweaty after being outdoors or working out in the gym. It comes in different fragrances, and an icy-type that claims to provide -5°C cooling effect.

Another product I always stock up on is a pack of “cool-type” body sheets. It’s like scented wet wipes for the body, and helps mask any unpleasant odor. Biore and Gatsby (for men) have a variety of scents and levels of coolness. I spotted one called Happy Deo which had Daisy Duck on the label saying: “It freezes me.”

While the packages of body wipes for women are in pretty pastel colors, the ones for men are usually in dark blue and black.

Japanese stores also carry a wide range of sunscreen products, with Biore UV and Anessa seemingly the most popular ones.

Also useful during summer are cool sprays, which provide instant relief from the heat; and minty lotions, which help relax tired muscles.

If you’re staying under the sun for a long time, it’s best to grab an ice cool pack. Punch Cool is one such portable instant cooling pack. As the name says, you have to “punch” the gel-filled pack and it freezes and keeps cool for several hours.

“COOL” CLOTHES
Many Japanese stores also sell summer hats, towels, shirts, and shawls that claim to have UV protection or “cool” technology. Uniqlo has for a long time been pushing the UV Cut feature on its jackets and light cardigans, saying it blocks 90% of ultraviolet rays and protects one’s skin from sunburn.

While traveling during the hot summer months, I found the cooling towels especially useful. These can also be used during your workout, daily run, or any outdoor activity.

Thankfully, there are also cooling scarves in tasteful prints and simple neck ties that women can use if they’re going to work or school. Just soak these towels and scarves in water and then squeeze off the excess and they are ready for use.

Sock store Tutuanna carries a huge selection of socks, including those cool ones with deodorant.

Another useful Japanese innovation is the sweat-absorbing underarm pad, which prevents unsightly pit stains on shirts. Attach the pads to your clothes under the armpit, and it claims to absorb the sweat.

For those who don’t want to get tanned arms but hate wearing long-sleeved shirts, grab a pair of hand and arm sleeves. There are many different sleeve colors, designs, and fabrics to choose from.

At Loft’s home section, I discovered cooling pillows, blankets, and pillow covers that claim to make sleeping more pleasant even without turning on the AC. I bought one such pillow cover for ¥1,500 (around P700). It wasn’t as “cool” as I expected it to be, but I did fall asleep fairly quickly unlike when just using a normally warm pillow.

So if you’re ever in Japan during summer, be sure to stock up on these “cooling” products since they can be used in the Philippines all year round.