Peso drops vs dollar on positive US data

June 17, 2019 | 9:00 pm

THE PESO weakened against the greenback due to strong US retail sales data.

THE PESO weakened against the dollar on Monday following the release of strong US retail sales and weaker-than-expected remittances from overseas Filipinos.

The local unit closed Monday’s session at P52.145 versus the dollar, down 12.5 centavos from the P52.02-per-dollar finish last Friday.

The peso opened the session weaker at P52.05 per greenback, which was already near its intraday high of P52.04. Meanwhile, it dropped to as low as P52.21 versus the US currency during the session.

Trading volume climbed to $955.73 million from the $870.39 million that switched hands in the previous session.

A trader said in a phone interview that the peso declined against the dollar at the start of session to track the stronger greenback over the weekend, driven by the strong US retail sales report.

The US Commerce Department said on Friday that retail sales picked up 0.5% in May, bolstered by higher sales of cars and other goods.

Retail sales in April was also revised to a 0.3% growth from a 0.2% drop earlier reported.

“Given the stronger retail sales, this boosted the dollar index against euro, pound and yen,” the trader said.

The trader added that the peso’s decline continued in the afternoon session following the release of weaker-than-expected local remittances data.

The Bangko Sentral ng Pilipinas reported yesterday that cash sent home by Filipinos abroad amounted to $2.4 billion in April, up 4% from $2.3 billion booked in the same month in 2018. This was driven by remittances from the United States, Saudi Arabia, Singapore, United Arab Emirates and the United Kingdom.

“Philippine remittances came out lower than expected. The previous data posted a 6.6% growth and the market expectation was at 4.6%. But the actual data came out at 4%,” the trader said.

Meanwhile, another trader said the peso weakened on Monday amid dampened hopes of a near-term trade resolution between the US and China after US Trade Secretary Wilbur Ross downplayed a possible major trade deal that might be achieved at the G-20 Summit in Japan later this month.

For today, the first trader expects the peso to trade between P52 and P52.30, while the other gave a P52.10-P52.30 range. — Karl Angelo N. Vidal

Stocks drop ahead of Fed, BSP policy meetings

June 17, 2019 | 9:00 pm

By Arra B. Francia, Senior Reporter

LOCAL EQUITIES fell on Monday ahead of the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) this week.

The benchmark Philippine Stock Exchange index (PSEi) plunged 1.01% or 81.21 points to close at 7,908.99 yesterday, continuing its losses since Friday. The broader all-shares index likewise declined 0.86% or 42.19 points to 4,842.72.

“Investors resumed profit-taking ahead of the some important events towards the end of the the week namely the FOMC (Federal Open Market Committee), BSP meeting and FTSE (Financial Times Stock Exchange) rebalancing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

The FOMC will have its two-day policy meeting from June 18-19, where it is expected to keep interest rates steady.

Meanwhile, the BSP’s Monetary Board will also meet on Thursday, June 20 for its own review where it is also seen to hold fire.

“Sentiment carrying over from last week was also negative as US stocks fell over the sharp decline in the broader tech sector,” Mr. Limlingan added.

The Dow Jones Industrial Average was down by 0.07% or 17.16 points to close at 26,089.61 last Friday. The S&P 500 index tumbled 0.16% or 4.66 points to 2,886.98, while the Nasdaq Composite index retreated 0.52% or 40.47 points to 7,796.66.

Most Southeast Asian stock markets also trod water on Monday as market participants stayed on the sidelines ahead of a slew of central bank policy meetings, while political tensions in Hong Kong and the Middle East kept risk appetite in check.

“Everyone is waiting to see if the central banks can actually be more dovish on interest rates to support markets, considering there’s a lot of downside risk coming in from the trade wars,” said Joanne Goh, an equity strategist with DBS Bank Ltd. in Singapore.

On the other hand, Papa Securities Corp. Sales Associate Gabriel Jose F. Perez attributed the local market’s decline to net foreign selling.

Net foreign outflows increased to P587.43 million on Monday versus the previous session’s P388.11 million.

All sectoral indices moved to negative territory, led by services which dropped 1.42% or 24.08 points to 1,670.79. Industrials shed 1.18% or 139.38 points to 11,591.94; financials went down 1.09% or 19.11 points to 1,723.68; property slipped 0.87% or 38.02 points to 4,294.55; holding firms slumped 0.63% or 48.15 points to 7,494.36; while mining and oil dropped 0.26% or 19.21 points to 7,133.57.

Some 663.59 million issues valued at P5.02 billion switched hands, lower than Friday’s P7.68-billion turnover.

Decliners were almost double the advancers, 136 to 70, while 43 names were unchanged. — with Reuters

Pepsi Philippines champions sustainability in national Brigada Eskwela drive

June 17, 2019 | 9:00 am

In line with its commitment to sustainability and quality education, Pepsi-Cola Products Philippines, Inc. (PCPPI) partnered once again with the Department of Education (DepEd) to support their annual Brigada Eskwela program through nationwide, week-long activities with almost five hundred volunteers that rendered a cumulative 2,462 volunteer hours to local communities.

“Every year, PCPPI actively engages with the education sector and the schools of our surrounding communities through Brigada Eskwela,” said PCPPI Corporate Affairs and Communications Senior Manager Monique Castro. “Taking care of the communities that support our trade is part of our core commitment to sustainability. Now equipped with our new three-pronged sustainability framework on Water Stewardship, Circular Economy, and Inclusive Business, we expand our efforts in promoting effective resource management and our green advocacy to contribute to the mutual growth of both these communities and all of our operations.”

A total of 27 schools from the surrounding communities of PCPPI’s 14 business units nationwide benefited from the company’s community investment of almost a million pesos.

Effective resource management through water stewardship

For its 2019 initiative, PCPPI supplied safe drinking water for students by donating high-grade drinking fountains to five schools surrounding their Modern Trade Operations, Central Luzon, Southern Tagalog Region, Cebu, and Davao offices.

With a drinking facility provided to each district, over 5,000 students in Luzon, Visayas, and Mindanao were given access to safe drinking water. Recipient schools include Muntinlupa Elementary School, San Agustin Integrated Elementary School, Doña Tiburcia Carpio Malvar Elementary School in Luzon; Cebu’s Tulay National High School; and Talomo Elementary School in Davao.

PCPPI also promoted hygiene and sanitation by conducting proper handwashing demos as well as donating handwashing facilities with hygiene kits set to serve 1,280 students. The three school beneficiaries were Marcos Elementary School near the company’s North Luzon facility, Echague National High School in Cabuyao, and Tanauan National High School in Leyte.

“We ensure the safety of the community around our operations and enrich their lives by providing them better access to water while teaching them proper sanitation and hygiene practices. By doing so, we not only address their immediate needs but promote effective resource management as well,” said Castro.

Driving a greener advocacy through circular economy

Committed to its mission of doing sustainable business, PCPPI also championed Circular Economy practices through solid waste management trainings for parents and students. The trainings were conducted in F. De Mesa Elementary School, Muntinlupa Elementary School and Diezmo Elementary School.

“This year’s Brigada Eskwela extended our involvement with the students by reaching out to their parents and teachers. We wanted to impart to them lasting lessons on sustainability that they can continue to put into practice at home or in school,” she said.

On top of this, the company promoted recycling and upcycling by turning over a greenhouse made of PET bottles to Echague National High School in Cabuyao, 50 modified water sprinklers in Bacolod, and 54 trash bins to the schools covered by its Metro Operations Services, Modern Trade office, Northern Luzon, Central Luzon, and Davao operations.

In support of better education for the local communities, the bottling firm donated a total of 17,200 notebooks and 275 sets of school supplies for students.

“We wanted to get more communities on board with our sustainability efforts to maximize its reach and impart to them our best practices on how to manage our natural resources wisely and well. We are confident that through these, our stakeholders can help us influence and encourage more Filipinos to partner with us so that together we can make a lasting difference,” Castro concluded.

Executive pay disclosure required

June 17, 2019 | 12:32 am

PUBLICLY LISTED firms may have to disclose the exact compensation of each member of their board directors soon, as per the Revised Corporation Code of the Philippines.

A provision in the changes to the country’s Corporation Code implemented through Republic Act (RA) No. 11232 says companies must now disclose the total compensation of each of their directors or trustees.

“Corporations vested with public interest shall submit to their shareholders and the Commission, an annual report of the total compensation of each of their directors or trustees,” according to the Section 29 of RA 11232, which was signed by President Rodrigo R. Duterte into law last February.

This compares to the current practice of disclosing only the total compensation of all the officers and directors of a company.

For instance, SM Investments Corp. (SMIC) only states the compensation of its president and its four highest compensated executive officers. It paid out a total of P100 million in total salaries to these five executives in 2018, and is projected to rise to P110 million this year, according to its information statement filed with the bourse last March.

SMIC also said it paid P328 million in salaries to “all other officers and directors as a group unnamed.” This figure is seen to rise to P355 million in 2019.

The same practice is done at Ayala Corp. (AC). In its latest information statement, AC said its chief executive officer and highest compensated executive officers collectively earned a salary of P303.98 million in 2018.

AC expects the salaries of these officials to rise to P328.30 million this year.

The same section of the Revised Corporation Code states that the total compensation of directors must not exceed 10% of the company’s net income before income tax the year before.

“In no case shall the total yearly compensation of directors exceed ten (10%) percent of the net income before income tax of the corporation during the preceding year.”

Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino earlier said the law does not require implementing rules and regulations since it is self-executory, but noted they may issue memorandum circulars for some sections.

Sought for comment, SEC Officer-in-Charge for the Office of the Commission Secretary Armando A. Pan, Jr. said they have yet to finalize plans for RA 11232’s implementation.

“Don’t know the plan on this since focus is still on company formation rules. Anyway that requirement is clear,” Mr. Pan said via text.

Officials of the Philippine Stock Exchange have yet to respond to requests for comment on the matter.

The Revised Corporation Code amended the 38-year-old Batas Pambansa Blg. 68. Other salient provisions in the law include the grant of perpetual corporate term for existing and future corporations unless otherwise provided in their articles of incorporation.

The new code also allows the establishment of one-person corporations, where a single stockholder may form a company without a minimum authorized capital stock. — Arra B. Francia

Power underwhelming: Why are there power outages?

June 17, 2019 | 12:31 am

By Mark T. Amoguis
Senior Researcher

IN THE PHILIPPINES, one would have to get used to brownouts, or the drop in voltage in an electrical power supply system. Whether or not it is intentional, these outages have wide-ranging effects on the economy: households would experience no electricity for a few minutes or even for hours, causing great inconvenience; businesses would incur higher costs by way of lost revenue and reduced productivity; and investors would be hesitant to do business, leading to reduced investments.

The Luzon grid has had episodes of “yellow” alerts since March due to high electricity demand outstripping supply as well as unscheduled outages of power plants. The first yellow alert, which occurred on March 5, saw peak demand for the day reaching 9,491 megawatts (MW) against the grid’s available capacity of 10,115 MW with an operating margin at just 624 MW — falling short of the required contingency reserve of 647 MW.

Thinning reserves reached a low when the National Grid Corporation of the Philippines (NGCP) declared on April 10 its first “red” alert notice as power demand in Luzon outstripped reserves following unscheduled outages.

NGCP, which is the private firm that operates, maintains, and develops the country’s transmission network, issues these alerts whenever energy reserves are inadequate. The grid operator has several levels of reserve energy that it uses to stabilize the fluctuating power demanded from the electricity grid.

One, there is a “regulating” reserve, which is the standard operating requirement to maintain a balance between available capacity and system demand. This is ideally equivalent to around four percent of peak demand.

On top of the regulating reserve, the NGCP maintains a “contingency” reserve that it allocates to immediately cover the loss in supply when the largest power generating unit online — usually at around 600 MW — fails to deliver.

Lastly, the operator also maintains a “dispatchable” reserve that is readily available to replenish lost contingency reserve.

A yellow alert notice is issued when the dispatchable reserve is fully spent and the system is already tapping into its contingency reserve. A red alert notice means both dispatchable and contingency reserves are gone.

Based on NGCP notices, there were seven yellow alerts and seven red alerts in April alone. In May, there were 13 yellow alerts and two red alerts.

This number far outstripped the number of yellow alerts in the previous years, according to consumer advocacy group CitizenWatch Philippines’ “PowerPlant Watch.”

“Comparing this to previous years, we had only seven instances of yellow alerts in 2018 and only three during the same period in 2017,” wrote Hannah Viola, convenor of CitizenWatch and energy fellow at Stratbase ADR Institute, in her column in BusinessWorld titled “A Call for Energy Transparency” published on April 9.

Bienvenido S. Oplas, Jr., columnist for BusinessWorld, economist, and president of Minimal Government Thinkers (MGT), noted in an e-mail interview the Philippines’ power capacity as being “far out from many neighbors in East Asia.”

Citing data from the Central Intelligence Agency’s World Factbook, Mr. Oplas said the Philippines, which has a population of at least 100 million, has a lower power capacity per person compared to neighboring countries such as those of Vietnam, Malaysia, and Laos at 2.1 times, 4.9 times, and 4.9 times, respectively.

LACK OF POWER PLANTS, DE-RATINGS
Industry players and analysts said this scenario could have been avoided had there been more power plants available to compensate for those undergoing unscheduled shutdowns or maintenance.

Data from the Department of Energy (DoE) showed there are 126 power plants in Luzon grid alone as of end-2018 with installed and dependable capacities of 16,133.06 MW and 14,641.76 MW, respectively.

However, results of a study from the Energy Regulatory Commission (ERC) released in May showed that up to 72% of these power plants are at least 16 years or older, which may have contributed to the grid’s power deficiency this year.

“Older plants require more frequent maintenance and repairs and may be more prone to unscheduled outages,” Lawrence S. Fernandez, Manila Electric Co. (Meralco) vice-president and head of Utility Economics, said in an e-mail interview.

DoE Undersecretary Felix William B. Fuentebella said in a separate e-mail interview that the occurrence of unplanned and forced outages were considered in the DoE’s assessment of the 2019 summer supply and demand outlook as well as the potential impact of El Niño.

“However, the simultaneous breakdowns were not expected in spite of the preparation and availability of the interruptible load program during the red alert statuses, which resulted in manual load drops,” Mr. Fuentebella said, adding that the delays in the entry of committed power plants “contributed to the limited capacities” in the Luzon grid.

Meralco’s Mr. Fernandez said they have noticed the demand for power has been growing faster in the rest of Luzon compared to the Meralco service area.

“However, it was really the unplanned and forced power plant outages and the delayed entry of new generation capacity that caused the alerts this year,” he said. “This thinning power supply, paired with rising power demand, combine to create a less than ideal power situation.”

“I think the unforeseen factor there was the ‘old plants’ factor; just many of them went on unscheduled shutdowns,” MGT’s Mr. Oplas said.

A closer look at available data showed plants currently online include those built way back in the 1940s and 1950s — plants whose efficiency has eroded through the years.

Two of these plants are located in Luzon — the Caliraya dam-type hydroelectric power plant (HEPP) and the Botocon run-of-river type HEPP, both located in Lumban, Laguna. These plants were commissioned in the early to mid-1940s.

Adding to the forced and unforced outages, the lack of supply is also attributed to plant de-ratings, which happens when a power plant is operating at less than its maximum capability in order to prolong its life.

“The current situation of our power plants and the continuously rising demand suggest that it would be beneficial to our grid if new capacities are built so more supply and reserves are available,” said Meralco’s Mr. Fernandez.

For MGT’s Mr. Oplas, the lack of new peaking power plants being built is also a concern. These are power plants that are generally run when there is high demand or only during peak times.

The economist explained there is little to no incentive in putting up these peaking plants as they can only sell through the Wholesale Electricity Spot Market (WESM), which has installed price caps to protect consumers from excessive price spikes.

“There should be incentives for developers of peaking plants that may be idle for nine to ten months per year, then running only for a few hours per day on hot months… Even if they charge high, say five to ten times the average WESM clearing price on certain hours, it’s still cheaper compared to having massive blackouts, or the poor buying candles (and have more fires) or the middle class and rich buying more generator sets (and have more air, noise pollution),” he said.

“When demand is high during hot months, baseload and mid-merit plants cannot deliver extra,” he explained.

Joe R. Zaldarriaga, Meralco assistant vice-president and public information office head, said the government and power plant operators should look into the causes behind these power plant outages and address them accordingly.

“It would be best to explore ways of better operating, maintaining and sustaining the various power plants and keep them running efficiently. The government should also continue identifying projects of national significance, like large power plants and transmission facilities, and help fast-track their construction and operations,” he said in an e-mail.

DELAY IN POWER SUPPLY DEALS
According to DoE’s Mr. Fuentebella, common hurdles faced by proponents in pursuing new power projects include “licensing/permitting challenges” as well as access to financial packages.

For his part, MGT’s Mr. Oplas noted the “thick, wide bureaucracies” in the local and national levels when applying for a power plant project.

“[T]he whole thing would require 359 government signatures, involving 74 agencies and bureaus, covering 43 different licenses and contracts,” Mr. Oplas explained, citing a September 2018 PowerPoint presentation of Senator Sherwin T. Gatchalian, who chaired the Senate’s energy committee in the 17^th Congress.

Meralco’s Mr. Zaldarriaga said for power projects, long-term planning is crucial as the construction of a power plant, which includes the permitting process takes more than five years to achieve.

Business groups have been calling for the construction of power plants to ensure ample long-term supply of electricity. However, hampering efforts is the delay in the approval of power supply agreements (PSA), which is a bilateral agreement between a generation company and a distribution utility for the purchase and supply of power.

A PSA is typically a critical milestone for power projects as these are signed before construction of a power plant starts to reassure banks that the plant will have ready buyers for its output.

The Supreme Court (SC) ruled last month that all PSAs submitted by distribution utilities to the ERC on or after June 30, 2015, must undergo what is called a competitive selection process (CSP).

CSP requires contracts between power generation companies and distribution utilities to be subjected to price challengers, a process that is aimed at lowering electricity cost.

The decision affected seven PSA applications that were filed by Meralco that covered 3,551 MW. The contracts were signed on April 29, 2016, a day before the April 30, 2016 extended deadline set by the ERC.

The ERC promulgated CSP in November 2015 but had to restate its effectivity date to April 30, 2016 through a resolution issued in March 2016. It said the move was prompted by letter-inquiries from distribution utilities and generation companies assailing the legal implication of the CSP to existing power supply deals.

Meralco’s PSAs are with two subsidiaries of its unit Meralco Powergen Corp., which is constructing power plants under subsidiaries Atimonan One Energy, Inc., San Buenaventura Ltd. Co., and Redondo Peninsula Energy, Inc.

The Atimonan project, whose PSA was filed in 2016, consists of two ultra supercritical coal-fired power plants with a capacity of 600 MW each. It was originally expected to be completed by 2021, but has since faced several regulatory issues. The company now looks to complete the project by the fourth quarter of 2025.

Meralco also has a PSA with St. Raphael Power Generation Corp., its joint venture with Consunji-led Semirara Mining and Power Corp. Meralco is also seeking approval for PSAs with Central Luzon Premiere Power Corp., Mariveles Power Generation Corp., Panay Energy Development Corp., and Global Luzon Energy Development Corp.

The high court ruling is viewed as a mixed bag, according to the sources interviewed by BusinessWorld.

DoE’s Mr. Fuentebella said the ruling is a welcome development in the power industry.

“While ensuring transparency, competitiveness, and reasonableness of the power supply cost, it will provide an opportunity to enhance the power supply agreements between the generation companies and distribution utilities that will eventually redound to the benefits of the electricity consuming public,” Mr. Fuentebella said.

For MGT’s Mr. Oplas, it is more of a net negative as this will further delay the construction of power plants.

“It is now 2019 and [the] SC wants to backtrack CSP ruling to PSAs made four years ago? ERC and SC should focus on enforcing CSP only to new PSAs,” the economist said.

Nevertheless, Meralco has said that they will respect the SC’s decision.

“Meralco respects, honors and abides by the SC ruling on [the CSP]. Moving forward, we will conduct CSP to ensure availability of quality, stable and cost-competitive supply in the country,” Mr. Zaldarriaga said.

“Meralco PowerGen, through its subsidiaries, will also work with all the concerned parties and agencies to ensure that planned power plants progress and to have these up and running as soon as possible,” he added.

So far, there are 19 private sector-initiated power plant projects in Luzon targeted to go online between this year and 2023, data from the Energy department as of end-2018 showed. These facilities are expected to have a combined committed capacity of 4,774.8 MW.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

Plan to raise minimum public float deferred

June 17, 2019 | 12:30 am

THE Securities and Exchange Commission (SEC) is deferring its plan to raise the minimum public ownership (MPO) of publicly listed companies, as it bids for more time to study the increase.

SEC Chairperson Emilio B. Aquino said the commission will have strategic planning (strat plan) sessions starting this month to map out its priorities and key focus areas until 2025, which will include raising the public float of listed firms.

“We’re having a strat plan. We want to really develop the capital market… We are studying it and still working on it,” Mr. Aquino told reporters after a media event last week.

Mr. Aquino declined to give a definite timeline on when they will push through with the plan.

The country’s corporate regulator earlier said it will initially increase MPO of listed firms to 15% of their issued and outstanding shares, until it reaches the target level of 20%. This is double the current MPO of 10%, which has been in place since 2011.

However, the SEC was forced to delay the increase due to market volatility at the Philippine Stock Exchange last year. The local bourse had quickly plunged from its record high of 9,058.62 on Jan. 29, 2018 back to the 7,400 level by the end of the year.

The SEC has already implemented the stricter requirement on companies who want to conduct an initial public offering since November 2017. When the rule was released, the commission said 68 out of 264 publicly listed firms had a public float lower than 20%. Only 39 of these firms have an MPO of less than 15%.

SEC Commissioner Ephyro Luis B. Amatong earlier said they may provide a five-year compliance period once the rules on higher public float requirement are released. This will give firms enough time to meet the rule despite market volatility.

Aside from the higher public float requirement, the SEC has also been formulating rules to introduce more financial products in the country. It is currently finalizing the guidelines for initial coin offerings (ICO), which seeks to regulate startups or companies who want to raise money through the issuance of coins or tokens.

The SEC is also drafting rules for virtual currency exchanges to complement the rules for ICOs. This will give investors the platform to trade their virtual currency or digital money into fiat currency, and vice versa.

The commission is also set to release the revised guidelines for real estate investment trusts within the year, after it has ironed out the requests of the Department of Finance and Bureau of Internal Revenue to ensure that the money raised through such products will be reinvested in the country. — Arra B. Francia

The Philippines’ Power Sector

June 17, 2019 | 12:30 am

BMW rolls out all-new 3 Series, Z4 Roadster

June 17, 2019 | 12:08 am

Words and photos by Manny N. de los Reyes

THE LATEST iteration of the car that created the sports sedan segment has landed on Philippine shores. And making for an even bigger splash is its accompaniment by its sexy roadster sibling.

SMC Asia Car Distributors Corp., the country’s official BMW importer and distributor, unveiled last week the all-new 3 Series and Z4 Roadster.

First, Bavaria’s bread and butter: The sedan represents not only the core of the BMW 3 Series range (of which over 15 million units have now been sold worldwide) but also the very essence of the BMW brand.

This all-new 7^th-generation (referred to as G20, internally and to diehard BMW fans) sees BMW building on the sporting heritage of the 3 Series, whose racing exploits have earned it so much credibility and acclaim. The new model is produced at BMW’s “home” plant in Munich.

BMW’s latest design language showcases the dynamic and cutting-edge character of the new 3 Series with precisely drawn lines and strikingly contoured surfaces. It is three inches longer than its predecessor, 16mm wider, and just 1mm taller. The car’s 41mm longer wheelbase (2,851 mm) and increased track widths (front: + 43 mm, rear: 21 mm), meanwhile, have a direct and positive influence on its riding comfort and handling.

The large BMW kidney grilles and the headlights leading off it are dominant themes of the front end of the car. Their familiar two-way split is emphasized by an eye-catching notch in the front apron that rises up into the headlight contour. Full-LED headlights come standard. Both the LED front fog lights and the Air Curtains are integrated into the outer air intakes.

The dynamic side view is shaped by a pair of character lines and a dynamic side skirt contour. The trailing edge of the side window with its signature Hofmeister dogleg kink is now integrated into the C-pillar. Horizontal lines and slim, stylishly darkened LED lights give the rear a wide and muscular stance.

The brand’s new styling also brings a clear arrangement of surfaces to the interior. The new screen grouping of Control Display and instrument cluster, the tall center console and the coordinated design of the modern instrument panel and door panel trim create a feeling of space and a sporting aura. The start/stop button for the engine is now positioned in the center console.

Upon its local launch, only one variant of the 3 Series will be available, the 330i. Other 3 Series variants will follow in the coming months. The 2.0-liter four-cylinder VALVETRONIC and Double-VANOS direct-injection twin-scroll-turbo engine in the 330i generates 258hp and 400Nm of torque, enough to propel the 330i from 0 to 100 km/h in just 5.8 seconds and to a top speed of 250 km/h.

The M Sport suspension includes lift-related dampers, which is making its debut in a BMW model, and which the company claims makes a major contribution to the balance between sportiness and comfort — unmatched by any rival. Continuously variable control adjusts the dampers’ firmness progressively according to changing spring travel, which reduces body movement perceptibly when ironing out vibrations caused by bumpy road surfaces and dynamic cornering.

M Sport suspension (with a 10mm lower ride height) brings the benefits of variable sport steering, the latest version of which has even more direct and precise feel. M Sport brakes with four-piston fixed calipers at the front come as standard on the M Sport while blue-painted calipers display the M logo.

Extended shoulder and elbowroom in the front seats and additional legroom, seat comfort and ease of entry and exit all contribute to the generous feeling of space. The new 3 Series’ 480-liter trunk offers improved loading comfort. A 40:20:40 split-folding rear backrest and hands-free trunk lid operation are standard.

Standard Park Distance Control and the rear view camera assist the driver with maneuvering and entering/exiting parking spaces. Also available as standard is the Parking Assistant, which takes over steering, acceleration, braking and gear changes when driving into and out of a space. Its range of functions also includes the Reversing Assistant, which can reverse the vehicle for distances of up to 50 meters by steering it along exactly the same line it has just taken when moving forward.

The standard BMW Live Cockpit Plus includes a 5.7-inch instrument cluster and 8.8-inch Control Display. For intuitive operation, the driver can choose from the Control Display’s touch control, the iDrive Controller, the steering wheel buttons, and voice control.

The 330i M Sport variant has a retail price of P4,590,000.

And now, the classical roadster — reinterpreted and sportier than ever.

Roadsters have played an important role in BMW’s history and the all-new 2019 Z4 is set to write another chapter in the top-down story. Since the birth of the seminal BMW 328 of the 1930s, all BMW roadsters have shared common proportions — long hood, low, set-back driving position, long wheelbase, and short overhangs.

The new BMW Z4 is no different. It shares all of those traditional design principles, but takes the roadster experience to the next level with a virtually supercar-like focus on agility, dynamic performance and precise handling thanks to the high rigidity of the body structure and chassis mountings, the intelligent lightweight design, and the optimized aerodynamics.

The new Z4 is 85mm longer than its predecessor, 74mm wider, and 13mm taller. The untraditional shortening of the wheelbase by 26mm to 2,470mm serves to sharpen agility, as do the notably wider tracks (front by a huge 98mm; rear by a notable 57mm).

The new Z4 is built at the BMW Group’s Austrian manufacturing partner, Magna Steyr Fahrzeugtechnik plant in Graz.

A powerfully sculpted front apron with large air intakes, low, broad BMW kidney grilles, and headlights positioned at the outer edges ensure there is no mistaking the car from the front. The new-look mesh-design BMW kidney grille combines a track-inspired honeycomb pattern with a three-dimensional structure, whose elements have a vertical arrangement reminiscent of traditional kidney grille bars.

The new Z4 is equipped with LED headlights as standard, while the optional Adaptive LED headlights add a matrix function for the non-dazzling high beam and cornering lights.

The long hood with arrow-shaped contour lines directed at the kidney grille straddles the wheel arches in the “clamshell” style characteristic of classic sports cars. The joins at the hood’s sides merge into the flanks’ upper character line, which runs back to the taillights. A second character line emerges from the large Air Breathers behind the front wheel arches. The spoiler and the slender, horizontally arranged taillights in the brand’s customary L-shape help to give the rear of the new Z4 a wide, sporty appearance.

The power soft-top comes in Black as standard and Anthracite with silver effect as an option. It can be opened or closed in ten seconds, even while traveling at up to 50 km/h.

The Sport model features design elements in High-gloss Black on the front crossbar and the rear apron’s insert, along with 18-inch light-alloy wheels.

The highlights of the M Sport model, meanwhile, include a three-section air intake for the front apron, prominent side skirt contouring, a rear apron with highly distinctive side surrounds and 18-inch M light-alloy wheels.

The new BMW Z4 M40i has a particularly sporty character with a Cerium Grey finish for the surround and front face of the mesh-design BMW kidney grille, the exterior mirror caps and other design features, plus trapezoidal exhaust tailpipes.

Both driver and passenger settle into model-specific sports seats. The Z4 is upholstered in Vernasca leather as standard on all models and comes in a choice of four colors (Black, Magma Red, Ivory White or Cognac).

The optional wind deflector fits flush between the fixed rollover bars. The storage space behind the seats, the cup holders under the center armrest and the large door pockets add further practical features. Amazingly, the 281-liter trunk capacity is the same whether the soft-top is open or closed — an increase of more than 50% compared to the previous model.

Powering the new Z4 will be a choice of BMW’s latest turbocharged petrol engines. The new Z4 M40i features a straight-6 engine with M Performance TwinPower Turbo technology for an output of 340hp and 500Nm of torque.

Variable sport steering comes as standard on all model variants, while the electronically controlled dampers, M Sport brakes and electronically controlled M Sport rear differential fitted as standard to the Z4 M40i make the car even nimbler on the road.

The new BMW Z4 M40i can sprint from zero to 100 km/h in 4.5 seconds and has a top speed of 250 km/h.

The entry-level Z4 is the sDrive20i, which has a 2.0-liter turbo engine developing 197hp and 320Nm for a 6.6-second sprint to 100 km/h and a 240 km/h top speed.

All new Z4 models come equipped with an eight-speed Steptronic Sport transmission. The transmission also features a Launch Control function for accelerating hard from a standing start with optimized traction. The eight-speed Steptronic Sport transmission fitted in the BMW Z4 M40i has been configured with M specific shift characteristics very much in tune with the straight-six engine’s power delivery.

The aluminum-intensive suspension of the new BMW Z4 comprises a newly designed double-joint spring strut axle at the front and a five-link rear axle making its debut in a BMW roadster. This combination strikes just the right balance between sportiness and ride comfort.

The car’s impressively sporty handling characteristics are further aided by a powerful braking system and Dynamic Stability Control (DSC), whose wealth of features includes ABS, Dynamic Traction Control (DTC), Cornering Brake Control (CBC), Dynamic Brake Control (DBC) and Start-Off Assistant.

The Performance Control function also included as standard gives the new Z4 even nimbler handling by varying the distribution of drive torque to the rear wheels according to the situation at hand.

The Adaptive M Sport suspension, M Sport brakes and M Sport differential (all part of standard specification for the new BMW Z4 M40i, together with high-performance tires) elevate the car’s sporty handling abilities to even greater heights. With these chassis systems on board, the differences in the car’s responses when moving between the COMFORT, SPORT and SPORT+ modes with the Driving Experience Control switch are particularly noticeable.

As well as lowering the car by 10mm, the Adaptive M Sport suspension also adds electronically controlled dampers, whose operating characteristics can assume a more comfortable or more dynamic bias depending on the mode selected with the Driving Experience Control switch.

The Z4 is fitted with a 10-speaker Harman Kardon surround sound system complete with digital amplifier, 12 speakers and 464-watt total output.

The new Z4 comes with bespoke M Sport seats, which include electro-pneumatic backrest width adjustment to optimize lateral support through high-speed corners.

The practicality of the Z4 has been increased by features such as a storage space behind the seats with a retaining net, large cupholders under the center armrest cover and roomy door pockets.

The highly advanced nature of the new BMW Z4 is further underlined by the class-leading variety of driver assistance systems on offer. Collision Warning and the Pedestrian Warning with City Braking function come as standard, as does the Lane Departure Warning system.

The BMW Z4 sDrive20i retails for P3,990,000 while the BMW Z4 M40i tops out at P5,790,000.

MPTC may consider Cavitex extension to Sangley

June 17, 2019 | 12:07 am

By Denise A. Valdez
Reporter

METRO PACIFIC Tollways Corp. (MPTC) said it may consider building an extension from the Manila-Cavite Expressway (Cavitex) connecting to the Danilo Atienza (Sangley) Air Base once the government firms up plans to use the gateway for commercial purposes.

MPTC President Rodrigo E. Franco told BusinessWorld over the weekend the company may look into a spur road from Cavitex linking to the air base in Sangley Point, Cavite, as the government boosts discussions on expanding the use of the gateway.

“Cavitex can build a segment that will extend to Sangley. But the project will depend on the plan of the government for the airport. If there is a definite plan for the commercial use of Sangley airport, Cavitex can build the extension,” he said in a text message.

This as the Department of Transportation (DoTr), through an order from President Rodrigo R. Duterte, pushed plans to open the Sangley air base for general aviation flights by November.

In the same discussions, the DoTr raised road congestion as a problem in utilizing the Sangley air base for more flights. It said it is studying opening a ferry system from Mall of Asia in Pasay City to Sangley Point as a solution to the problem.

If MPTC pushes through with the extension, the Sangley air base may be connected to the tail of Roxas Boulevard through the 14-kilometer Cavitex.

However, the DoTr is firm on moving to Sangley the general aviation flights, or non-commercial flights that include operations such as business jets and pilot training flights

To open the Sangley air base for commercial operations — which is the premise MPTC is keen on seeing — a proposal from the city government of Cavite is currently being reviewed by the national government. This plan intends to add more runways to the Sangley facility to handle larger aircraft.

Outgoing Cavite 7^th district Rep. Jesus Crispin C. Remulla told reporters in March the local government is raising P200 billion (about $3.8 billion) through a bond float to finance its $10-billion airport proposal.

It earlier submitted the plan to the National Economic and Development Authority (NEDA) for evaluation, but Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. said the Cavite government has now decided to take on the route of a local public-private partnership (PPP) for the project.

“They said they’re going to implement it under the local PPP Code,” he said in a text message to BusinessWorld yesterday.

Mr. Remulla earlier said the Cavite government was in talks with Chinese firms that may come in as investors and contractors for the Sangley airport project, but the focus is to find local banks for its financing.

MPTC is the tollways unit of Metro Pacific Investments Corp., 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 interest in BusinessWorld through the Philippine Star Group, which it controls.

Britain’s greatest test driver, Norman Dewis OBE, passes away

June 17, 2019 | 12:07 am

COVENTRY, UK — The man responsible for developing some of the most iconic Jaguars ever, Norman Dewis OBE, has passed away at age 98. Over a 33-year career with Jaguar, Dewis’ fearlessness, extraordinary talent and friendly, humble demeanor helped establish him not only as Britain’s greatest ever test driver, but a veritable legend and a dedicated friend to the Jaguar brand.

Dewis’ history with Jaguar is remarkable: he developed the multiple Le Mans-winning C- and D-type racing cars, the classic XK 140 and 150 sports cars, the pioneering 2.4/3.4 and Mk 2 saloons, plus the Mk VII and Mk VIIM models, the legendary E-type (including the Lightweight E-type), the XJ13 mid-engined prototype, the world-class XJ saloons, as well as the XJ-S and the XJ40 models. Each and every model developed with Dewis’ help remains an icon of the automotive world to this day for its impeccable blend of comfort and handling.

Unusually, Dewis reported directly to Jaguar Chief Engineer, William Heynes; this arrangement was probably unique in the motor industry for a test engineer and it enabled the company’s chief engineer (later engineering director) instant, first-hand feedback on the proving process. Dewis also sent copies of his reports to company founder Sir William Lyons. Both placed considerable store by what Dewis said.

Born in Coventry, Dewis began working on cars at age 14, fitting fenders and hoods at the Humber factory. At only 15 he moved to another car manufacturer, Armstrong Siddeley, where he spent time in the chassis department and first learned to drive while taking cars on their shakedown runs. During wartime, Dewis was drafted into the RAF, working the gun turret of a Blenheim bomber, and finally joined Jaguar after a post-war stint at Lea-Francis.

Besides the many cars Dewis helped develop in his career, one of his first automotive projects is without doubt the one with the greatest effect on the automotive industry; the disc brake. Dewis became involved with Jaguar and Dunlop’s development of the revolutionary braking system, famously trialed in a C-type at the 1952 Mille Miglia with Sir Stirling Moss in the driving seat and Dewis navigating.

Dewis also, in 1953, set a 172.412mph production car speed record in a modified Jaguar XK120 on a closed section of the Jabbeke highway, Belgium. He also drove a 190mph works D-type in the dramatic 1955 Le Mans 24-hour race with greats like Moss, Hawthorn and Fangio.

Famed racing driver, Mike Hawthorn, had such faith in Dewis that when he was asked to attend a test session and saw that Dewis was already there, asked the team manager: “Why am I here? If Norman’s satisfied with it, I’m satisfied.” And so it was, through a mutual respect and an instant likeability, that Dewis struck up life-long friendships with the likes of Hawthorn, Moss and Sir Jackie Stewart.

Outside of racing car development, Dewis is also famous for his legendary nighttime dash from Coventry to the Geneva Motor Show in 1961 for the launch of the Jaguar E-type. Covering roughly 700 miles in another E-type sourced from the factory for the press demonstration runs, Dewis arrived roughly 15 hours later having not stopped once (aside from fuel) — hugely impressive at a time when there were no motorways.

In an era without seat belts or crash safety, Dewis was fearless. In total, it’s estimated he completed more than a million test miles at an average speed of 100mph-plus, with a number of heroic anecdotes as a result. Whether it was the D-type that flipped and landed on top of him while testing fiberglass panels or the XJ-13 that rolled end over end during a high-speed run, Dewis managed to walk away without a scratch, didn’t tell his wife and then was back to work the next day.

In the years before his retirement Dewis built up a small but highly dedicated vehicle proving department which he headed until his retirement in 1985. He also oversaw the establishment of a dedicated Jaguar test facility at Nardo, Italy and, in 1984, a major base at Phoenix, Arizona for durability and environmental testing in the all-important US market.

Even outside of retirement — and in more recent times — Dewis spearheaded Jaguar’s 60^th anniversary celebrations for the race-winning D-type. Wherever Jaguar was during the year, Dewis was present too, chatting with fans and friends, wearing his distinctive bootlace tie and cowboy boots. At the 2014 Goodwood Revival, Dewis — aged 93 — demonstrated a D-type, his speed illustrating that he hadn’t lost his touch behind the wheel. Dewis then consulted with the Jaguar Classic Works on the launch of the continuation Lightweight E-type, a car that he originally helped develop in the 1960s. To his 98^th year, Dewis continued to be a global ambassador to Jaguar cars and a great friend to the brand.

In recognition of his services to Jaguar and the British motor industry, in 2014 Dewis received the Order of the British Empire (OBE).

Prof. Dr. Ralf Speth, Jaguar Land Rover Chief Executive Officer said: “Today is an enormously sad day for the Jaguar brand, Jaguar fans worldwide, and for me personally. Putting Dewis’ hugely decorated career aside, his friendly nature, captivating storytelling and unbridled enthusiasm made him exactly the kind of man you couldn’t help but want to spend time with — he will be sorely missed.

“The Jaguar brand is synonymous with a number of big personalities; the founder, Sir William Lyons, the great designer, Malcolm Sayer, innovative engineer, Bill Heynes, and — of course — the great test driver, Norman Dewis. Norman’s name will quite rightly go down in Jaguar history; without his contribution to the brand during his 33-year career, or as a global ambassador in his later years, Jaguar just wouldn’t be the same. So, I hope the world will join me and everyone associated with Jaguar Land Rover in saying: thank you, Norman.”

Foreign business leaders boost Mindanao promotion in Davao conference

June 17, 2019 | 12:06 am

DAVAO CITY — Chinese delegations from the cities of Jinjiang and Nanning have arrived in the city more than a week ahead of the Davao Investment Conference 2019 (Davao ICON 2019) slated on June 20 to 21 to look into possible areas of collaboration.

Consul General Li Lin of the Chinese Consulate General in Davao said they are here early “to promote economic cooperation, especially on the local government level.”

Davao City has sisterhood agreements with the two Chinese cities.

“They want to make suggestions of the joint efforts with the city… If they want to make a good suggestion, they need to understand better the city’s plans for the future. They can share their expertise, especially their experiences that they have researched,” Mr. Li told BusinessWorld.

Another delegation, both from the government and business sector, will also be attending the biennial Davao ICON, he added.

Among the business ventures being considered are food processing and a cardboard box plant.

Davao Mayor Sara Duterte-Carpio, during her trip to Jinjiang late last year, highlighted potential collaboration in the food industry, which she said will benefit farmers.

Ms. Carpio, along with representatives from the Davao City Chamber of Commerce and Industry, Inc. (DCCCII), visited the Pam Pam Group, a food processing enterprise.

Mr. Li said the Pam Pam Group president will also be visiting Davao.

Meanwhile, leaders of foreign business chambers have also been actively helping to attract participants to the Davao ICON 2019.

Antonio S. Peralta, president of the European Chamber of Commerce of the Philippines (ECCP)-Southern Mindanao, said they have been undertaking a “proactive approach” in promoting the event amid advisories imposed by various embassies against travel to Mindanao.

“It is taking the first step in a more proactive approach. Through this conference, we hope to correct that mindset. We have a number of business delegations coming from the European Chamber in Manila that have shown interest in participating, and in fact a number of them are first timers,” Mr. Peralta said.

Some ECCP members from Cotabato City will also be attending the conference for the first time.

“I can see greater inclusivity of approach,” he said, noting that DCCCII, which organizes the Davao ICON, has invited speakers who will highlight experiences in doing business in Davao and Mindanao as a whole.

Mr. Peralta said European businessmen, along with Canadians and Japanese, will also share their own experiences on the ground.

Ichido Miyake, president of the Japanese Chamber of Commerce in Mindanao, said a delegation of at least 40 are expected to join the Davao ICON, with an eye on potential ventures in information technology, tourism, agriculture and real estate.

“These are really potential investors,” said Mr. Miyake.

John Carlo B. Tria, DCCCII executive vice-president and vice-chair of the event, said they are optimistic that they will surpass the 700 delegates in 2017.

“We have a high level of inquiries right after the (May 13) elections, but prior to the election many people were already e-mailing us,” he said.

Mr. Tria said one of the particular sectors they want to push is attracting young foreign entrepreneurs who are technologically adept and more open to exploring ventures outside of their country. — Maya M. Padillo and Carmelito Q. Francisco

Rules for distributing RCEF farm mechanization funds due soon

June 17, 2019 | 12:06 am

THE Philippine Center for Postharvest Development and Mechanization (PhilMech) said it will finalize after a key meeting this week the guidelines for funding the farm mechanization component of the Rice Competitiveness Enhancement Fund (RCEF).

“Magmi-meeting pa sa (There will be a meeting on) June 18. We’re just waiting for that then afterwards firmed up na ‘yung gagawin namin base doon sa (what we plan to do will be firmed up based on the) suggestions ng (of the) Program Streering Committee sa (at the) Department of Agriculture,” Rodolfo P. Estigoy, head of the applied communications division of PhilMech, told reporters.

“Ine-expect namin ‘yung pondo (We are expecting the fund) by end of June,” he said.

RCEF is funded by rice import tariffs that will be imposed on private-sector importers, who will be allowed to import the grain from selected Southeast Asian countries more freely. The importers also have the option to source grain from selected other countries but at a higher tariff.

The RCEF, worth about P10 billion a year, is authorized to allocate P5 billion for the mechanization of rice farms, P3 billion for high-yield rice seed, P1 billion to expand farm credit, and P1 billion to support agricultural extension and upgrade rice farmers’ planting knowhow.

The guidelines cover the identification of 1,200 beneficiary municipalities in 16 regions, which were further grouped into six clusters to facilitate the deployment of farm equipment over the next six years. Each of these municipalities are required to have farmer organizations with at least 100 hectares of irrigated rice land.

Major rice producing areas will be prioritized, including Cagayan Valley, Central Luzon, Central Visayas, and Soccsksargen.

He said the first phase of distribution involves land preparation equipment with harvesters to come later.

A full package for beneficiaries includes machinery for land preparation, crop establishment, harvesting and threshing, drying, and milling.

Initial distributions are expected by December.

Some P100 million has also been set aside for training on the use of the equipment and upgrading farmers’ skills.

At the end of six years, the cost of rice production is expected to drop because of the upgrades been reduced.

The cost of producing a kilo of palay, or unmilled rice is estimated at P12.72 per kilo, against the cost in Vietnam of about P6.22 and in Thailand of P8.86.

Meanwhile, Mr. Estigoy said that the Department of Budget and Management (DBM) also approved of an additional 59 staff in the PhilMech headcount, in the hope that new hires can be deployed to the regions by July. — Vincent Mariel P. Galang

1...9,3919,3929,393...12,767 Page 9,392 of 12,767