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Travel industry sees job growth outperformance

THE TOURISM and hospitality sector expects to outperform in terms of job growth in the next few years, outstripping the global average, industry officials said.

Rajah Travel Corp. (RTC) and its online tourism data platform Tourism Knowledge Center (TKC) issued the projection during the second edition of its Travel Talk Series, which discussed the state of tourism jobs amid the disruptions of new technology.

Chairman and President Aileen C. Clemente said that the Philippines will not be left behind in terms of jobs and expects work opportunities to enter a boom period.

“Global tourism is growing at 5.6% and the Philippines is growing at 7.65% in terms of tourist arrivals so we’re still ahead. In terms of jobs we’re still ahead on the average of the global tourism industry. We (also) have a higher share in the Philippines,” she said.

“Nothing can replicate tour guides,” she said. “We have to have different promotions for every destination so there is a constant process of thinking about how to make it attractive and how to give an experience to somebody.”

According to the World Travel and Tourism Council (WTTC), the global travel industry accounted for $8.8 trillion or 10.4% of total GDP. It is considered one of the fastest-growing sectors behind the manufacturing industry. The WTC projects that 100 million jobs in the industry will be added globally in the next decade or 429 million jobs in total by 2029.

In the Philippines, Ms. Clemente said the tourism sector was responsible for 12.7% of GDP and 13.8% of the labor force in 2018.

TKC Executive Director Rolando T. Cañizal said that the industry is already seeing signs of encoraching technologies particularly with visitors demanding ever-newer services.

“In our travel and tourism industry, we are now seeing the great impact of technology… to develop new markets and at the same time, the rise of new travelers and tourists who are more technology-savvy and digitally oriented. In this regard, many businesses have started to adapt certain technological systems to better serve our guests and promote their products in the market,” he said.

TKC Review Committee and Asian Institute of Management (AIM) Dr. Andrew Tan Tourism Center Board of Advisor Member Maria Cherry Lyn S. Rodolfo said that like in other industries in which jobs in the tourism sector will also witness some loss, jobs in the industry will also evolve with the times.

“Jobs will not dissipate at one time. Yes, there will be some reduction of traditional jobs but these jobs will evolve,” she said.

While careers in sectors of the tourism industry such as travel agencies, hotels, and MICE (meetings, incentives, conferences and exhibitions) will still stay for the meantime, newer job expertise will need to be added to their roles because of more travel innovation.

Andy Michaels Lim, Managing Director of Amadeus IT Group, said that humans will still play a crucial role to the tourism industry even with the technological innovation.

“Technology doesn’t work without people,” he said, adding new roles that will be required in the travel industry will be digital marketer/strategist; partnerships manager; UX/UI Programmer; Web/graphic designer; and content strategist.

Even with new roles, some skills will remain irreplaceable especially if they are soft skills. Ms. Clemente said, “Technical skills we have mastered a lot of that but we need to concentrate on soft skills like analytical thinking, critical thinking, empathy, integrity, stewardship. These are things that are needed especially in the services industry.” — Gillian M. Cortez

Ortigas not keen on IPO for now

The Galleon will rise along ADB Avenue in Ortigas Center.

ORTIGAS & Co. is holding off plans for an initial public offering (IPO) at least until 2024.

“It’s premature to talk about that right now because if you look at our five-year plan, a lot of it is really internally financed,” Jaime E. Ysmael, president and chief executive officer of Ortigas & Co., told reporters after a recent briefing.

The developer of Greenhills Center earlier said it was allocating around P12 billion for capital expenditures this year. The bulk or P11 billion will be used to develop a mixed-use project called The Galleon, located along ADB Avenue in Ortigas Center.

“We’re just looking at using our balance sheet as well as pre-selling and existing rentals or development proceeds to fund our expansion program and we can actually do it without having to do any capital market issue,” Mr. Ysmael said.

The property firm, which is controlled by the Ayala, Sy and Ortigas families, had previously floated the idea of going public to raise funds for its projects.

Mr. Ysmael said Ortigas & Co. is looking to spend around P12 to P15 billion in capex for the next five years, as it ramps up expansion.

“I think in the next couple of years, we’ll see P12 to P15 billion in capex, for the next five years as we pursue expansion plans,” he said.

“We can finance our requirements so there is really no reason why we should look at the market exercise,” he added.

Mr. Ysmael said the company, like other developers, is studying the possibility of conducting an IPO but “no plans.”

Last week, Ortigas & Co. launched The Galleon, which will be developed in two phases. The first phase, an office building, is expected to be completed by the fourth quarter of 2025.

The residential condominium is scheduled to be launched early next year. — Vincent Mariel P. Galang

Congress to probe price, supply bottlenecks for biofuels

THE Joint Congressional Oversight Committee on Biofuels is set to investigate the biofuel industry over price increases in molasses when the 18th Congress opens its first regular session.

Senator Sherwin T. Gatchalian, chair of the energy committee, said the inquiry will also look into the sugarcane industry’s production of molasses, to help reduce bioethanol prices.

“We plan to convene the Joint Congressional Oversight Committee on Biofuels to look into the feedstock and pricing problem, and, in the end, come up with long-term solutions to this perennial problem,” Mr. Gatchalian said in a statement Sunday.

The Senate probe will be conducted with Department of Agriculture as well as other government agencies that are members of the National Biofuels Board. The 18th Congress will be opening its first regular session on July 22.

The Senator reported that the current price of molasses is P11,500 per metric ton, which in turn helps bring the price of bioethanol to around P59 per liter or higher.

“They say that they might soon be left without a choice but to stop the production of bioethanol since oil companies no longer buy from local ethanol plants if the price of bioethanol is too high,” he said.

“In fact, they are saying that there’s already a plant that is no longer producing bioethanol because of the high price of molasses.”

The joint committee will also tackle solutions to increase feedstock provided to ethanol plants as well as to intensify research and development for long-term solutions.

Citing data from the Department of Energy (DoE), Mr. Gatchalian said existing bioethanol plants produce 270 million liters of bioethanol, well under their capacity of 365 million liters. The DoE also noted a shortfall in molasses production, prompting the government to import 50.91% of the bioethanol requirement. — Charmaine A. Tadalan

Reissued seven-year T-bonds to fetch lower rates

THE GOVERNMENT will likely see lower yields for its reissued seven-year bonds to be auctioned off tomorrow, as market participants price in possible interest rate cuts from the local and US central banks.

The Bureau of the Treasury (BTr) is offering on Tuesday P20 billion worth of reissued seven-year bonds with a remaining life of six years and seven months.

Kevin S. Palma, Robinsons Bank Corp. peso debt trader, expects the debt papers to fetch lower rates from the previous offer.

The Treasury made a full award of the of the seven-year bonds when they were last auctioned off on May 15. The IOUs fetched an average rate of 5.743%, 19.1 basis points (bp) lower than the 5.934% fetched in the previous offer.

Mr. Palma expects the rate of the seven-year bonds to land between 4.825% and 4.925%, while another trader said the debt notes will likely fetch an average rate from 4.95% to 5%.

“This auction could potentially have a very strong reception as market expects the Fed (US Federal Reserve) to cut its policy rates by at least 25 bps this coming Federal Open Market Committee (FOMC) meeting by the end of July,” Mr. Palma said in a phone message on Sunday.

Fed chair Jerome Powell, in a testimony before the US Congress last week, hinted on a possible cut in benchmark rates, saying the central bank will “act as appropriate” to sustain expansion as “crosscurrents” such as trade tensions and concern on global growth are weighing on the world’s largest economy.

The US was embroiled in a trade war against China as both countries hurled tariffs against each other’s imports. However, tensions cooled late last month after Washington and Beijing agreed to resume negotiations.

Mr. Powell’s dovish cues were reinforced by the minutes of FOMC’s June 18-19 meeting, wherein several Fed officials said a near-term interest rate cut is warranted to quell the effects of possible economic headwinds.

Apart from a possible Fed rate cut, Mr. Palma added that the auction on Tuesday will likely receive robust demand due to possible policy easing by the Bangko Sentral ng Pilipinas (BSP) as early as the Monetary Board (MB) meeting on Aug. 8.

BSP Governor Benjamin E. Diokno said the local central bank will likely cut policy rates in the second semester before moving to reduce banks’ reserve requirement ratio (RRR).

On May 9, the MB reduced interest rates by 25 bps amid a tamer price outlook after it implemented 175-bp worth of increases last year in five consecutive meetings due to a spike in inflation.

However, it took a “prudent pause” at its June 20 meeting to assess the impact of its prior monetary adjustments.

The government is set to borrow P230 billion from the domestic market this quarter through a mix of Treasury bills and T-bonds, lower than the P315 billion planned in April-June and the P300 billion placed on the auction block in the same period last year.

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

Greater use of GSP program driving exports growth to US, DTI says

PHILIPPINE exporters are learning to maximize their use of a Generalized System of Preferences (GSP) arrangement with the US, resulting in increased exports overall to that country, the Department of Trade and Industry (DTI) said.

Exports to the US rose 15.83% in 2018 to $1.73 billion, with exporters filling about 72% of the available $2.41 billion that could have been taken in by the US. In 2017, the corresponding usage rate was 67%.

In an e-mail, Assistant Secretary of the DTI’s Industry Development and Trade Policy Group Allan B. Gepty said that the increase in exports was due to the inclusion of a number of travel goods categories for export to the US starting July 2017.

“Philippine exports to the United States under the US GSP scheme continued to increase. One of the major reasons for this is the increase in exports of travel goods (e.g. handbags, travel, sports and similar bags, cases, bags and containers) which were included in the coverage beginning July 1, 2017.”

Some travel goods were among the top exports to the US in 2018, with handbags with plastic sheeting placing fourth ($64.24 million), handbags with leather composition placing fifth ($62.95 million), travel and sports bag eighth ($47.98 million) and cases, bags and containers placing ninth ($44.97 million).

The top export to the US under the GSP arrangement in 2018 was pneumatic radial tires for motor cars, amounting to $119 million, up from $113.7 million a year earlier.

“It was also noted that exports of electric motors, insulated electric conductors, and telescopic sights significantly increased in 2018,” Mr. Gepty said in the e-mail.

Telescopic sights were the number two export to the US in 2018 at $96.17 million, up 9% from a year earlier. Insulated electric conductors amounted to $64.33 million, up 10%.

“Other” cane sugar products, however, declined 42.24% amounted to $60.82 million.

“One of the reasons for the decrease was due to the reduction of allocation for the US market as a result of an increase in the domestic demand for sugar,” said Mr. Gepty.

The DTI is optimistic on the outlook for US trade relations. In 2018, trade with the US was worth $18.7 billion, accounting for 10.3% of total trade. He expects the growth to be “sustained.” — Katrina T. Mina

Supra natural sports car

Text and photos by Kap Maceda Aguila

THE FIRST-EVER SUPRA to be retailed in the Philippines is here — taking its place as the flagship sports car of Toyota.

The all-new, fifth-generation Toyota GR Supra — also known as the A90 or Mk. V — also marks Toyota’s entry into the so-called specialty passenger car segment, which is currently able to move 60 to 85 units a month, per TMP.

Significantly, the new Supra earns a “GR” prefix, which stands for Gazoo Racing. This “embodies Toyota’s commitment to overcoming every limit to make even better cars by forging new technologies and solutions under the extreme conditions of motorsports,” according to a company release.

In a speech, TMP President Satoru Suzuki said that “only a limited number of units will be available through 16 certified GR Performance dealerships nationwide,” and expressed confidence that “the Philippine market will be receptive, considering how (TMP has) steadily recovered for the first half of 2019.” The executive shared that TMP has already sold a total of 73,454 vehicles across its portfolio, and considers the GR Supra “the perfect bookend to our three decades of meaningful partnership that has set the standards for the entire automotive industry,” as the company nears its 31st anniversary this August.

Meanwhile, TMP Supervisor for Product Planning Jovie Roqueza posited to BusinessWorld that the niche the GR Supra enters is one fraught with uncertainty, while bearing potential for high rewards. “This segment is made up of non-cyclical buyers. Other segments are pretty easy to forecast because every five years, these people tend to replace their classic cars.”

Toyota is hoping to recreate its past success in the 86 when it debuted in 2013. “The segment grew 500% higher than the actual monthly demand. We can also foresee the Supra creating this type of segment-shaking impact, but the exact number we cannot disclose since we’re still doing pre-selling,” Mr. Roqueza said.

In a release, TMP First Vice-President Cristina Arevalo averred, “Bringing the legendary Supra here is something we have always wanted to do, and we are positive that there are countless Toyota fans out there who share the same enthusiasm.”

The new-generation Supra arrives after a lengthy 17-year hiatus, and first debuted globally in Detroit, USA in January. All units come direct from the Magna Steyr plant in Graz, Austria. Toyota reported that the GR Supra is “true to its Japanese DNA, which hailed from early grand tourers like the A40 to the futuristic concept car FT-1.”

To be sure, there is much talk about the fact that the Supra shares its engine and platform with the BMW Z4. And a Car and Driver article said that “Supra loyalists weren’t shy in expressing their indignation about the union… that a co-developed car was destined to be viewed by history as nothing more than a Toyota badge slapped onto a BMW.”

But while an in-line 3.0-liter six-cylinder B58 heart from BMW resides in the Supra’s engine bay, and both have the same transmission, dampers, and steering rack, to say that they’re siblings or even twins is erroneous.

“In the Supra, we partnered with another brand because the straight in-line six is an engine not existing in the Toyota lineup,” reported Mr. Roqueza. “For Toyota to develop its own in-line six would cost a lot of money, and that will defeat the whole purpose of the Supra as being a possible or attainable pure sports car.” He shared that the Toyota and BMW co-development stopped “four to five years ago because BMW saw the Z4 moving one way, and our Supra another.”

Mr. Roqueza maintained, “The key message is that they’re totally different — shifting patterns, gear ratios, tuning, how the engine performs.”

That’s indeed a main raison d’être for the Supra — to make a pure sports car just a little more affordable for the market, while channeling the legend of the storied Toyota nameplate. When compared to the 86, the Supra, according to Mr. Roqueza, “is a different concept.”

He maintained, “Of course, the 86 is looking at the AE86. That being its heritage, it’s geared towards mid-speed cornering and drifting. The Supra itself (is about having) driving resonance… it’s basically unifying the driver intention with the vehicle feedback. Designers wanted to make the driver feel that he’s in full control of the vehicle, and not have the vehicle control him.”

There was much at stake in the development of the Supra, with no less than Toyota Motor Corporation President Akio Toyoda himself scrutinizing the goings on. “The Supra is actually the car that he grew up driving, so this fifth-generation Supra is his brainchild, his baby,” explained Mr. Roqueza. “So, it was all hands-on deck in Toyota, especially the GR team. They had a lot of expectations and big name to live up to.”

The new GR Supra’s athleticism is clear from the get-go as it is stands low and wide, a look that Toyota engineers call “condensed extreme.” A large grille is flanked by large air intakes, and character lines extend to the flared spoilers and trapezoidal bumper with dual exhaust pipes and diffuser. It runs on large 19-inch forged aluminum wheels with custom-made Michelin tires. The headlamp assembly features six-lens LEDs integrating daytime running lights and turn signals, while the rear lamps combine turn, tail, and stop into one main ring. Dot-type LED backup lamps are located in the center of the lower bumper. A Follow-Me-Home lighting feature is also available.

The cabin is rendered in black with muted carbon accents. Alcantara sports seats are equipped with lumbar support and eight-way power memory adjust. The three-spoke leather steering wheel has both manual tilt and telescopic adjustment. A narrow, sectioned dashboard helps to facilitate forward visibility. Advanced heads up display (HUD), paddle shifters, 8.8-inch TFT-LCD touchscreen multi-information display, Bluetooth and USB connectivity, dual-zone push-type air-conditioning, and a 12-speaker high-fidelity surround sound system powered by JBL complete the accoutrements within.

The all-new Toyota GR Supra is priced as follows: P4.99 million (Prominence Red), P5.05 million (Lightning Yellow, Deep Blue Metallic, White Metallic, Silver Metallic, Ice Gray Metallic, and Black Metallic), and P5.09 million (Matte Storm Gray Metallic) and is available at Toyota Alabang, Toyota Commonwealth, Toyota Makati, Toyota Manila Bay, Toyota Otis, Toyota Pasong Tamo, Toyota Quezon Avenue, Toyota Bacoor, Toyota Batangas, Toyota Calamba, Toyota La Union, Toyota San Fernando, Toyota San Pablo, Toyota Cebu, Toyota Mabolo, and Toyota Davao City.

Energy efficiency group identifies priority tasks

By Victor V. Saulon
Sub-Editor

THE Philippine Energy Efficiency Alliance (PE2) will have to bolster its partnership with the government for at least four priority tasks, including making the organization the sector voice of market stakeholders as the Energy department crafts the implementing rules and regulations (IRR) of Republic Act No. 11285.

These tasks are among the immediate action plans of PE2, which claims to be the biggest group involved in energy efficiency in the country, after the passage of RA No. 11285 “An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects.”

In an e-mail interview, PE2 President Alexander Ablaza said his group seeks to be the sectoral voice of energy efficiency market stakeholders — whether energy efficiency end-users, investors or providers of energy efficiency technology, solutions or services.

RA No. 11285 was signed on April 12, 2019, with the Department of Energy (DoE) tasked to issue an IRR in the next four months.

Congress, for its part, has expanded the scope of the Joint Congressional Power Commission (JCPC) to reflect the expansion of its oversight powers to the entire energy sector. JCPC will be renamed the Joint Congressional Energy Commission (JCEC) in line with the passage of RA No. 11285.

“Next, PE2 would have to complement government’s efforts in increasing awareness of the law among market players, especially those which now have new obligations under the law,” Mr. Ablaza said.

“Third, it would have to assess the baseline market competencies and mobilize resources toward building capacities in the energy service company (ESCO) sector, and toward the training and certification of professionals tasked to perform energy management, measurement and verification and other ESCO specialists,” he added.

Lastly, Mr. Ablaza said PE2 would need to ensure that the new law will be implemented and enforced without delay and that the intent of legislation would have to be preserved through the next decade and beyond.

He said the market would be catching up with the new law and its IRR through the first two years.

“After switching back to mandatory implementation from a 29-year voluntary market regime, stakeholders will be adjusting to the obligations under the new law, staffing up with energy efficiency expertise, identifying energy efficiency project opportunities and seeking sources of capital to finance these new projects,” he said.

He expects the first “real market momentum” to be experienced only from years three to five after the passage of the law, even though several, smaller, and “lower-hanging” project opportunities could be accelerated for implementation in the first two years.

Mr. Ablaza said PE2 believes that two-thirds of the P12-trillion capital requirement for energy efficiency investments for the country to meet the DoE’s energy efficiency and conservation roadmap targets by 2040, would have to be mobilized from non-traditional self-financed or debt-financed means.

He said about P8 trillion would have to flow through off-balance sheet channels such as ESCO performance contracts, public-private partnership transactions and other large-scale bulk procurement and distribution programs for the government and residential sectors.

“PE2 hopes that the [IRR] will effectively make such non-traditional capital flows commercially viable, as Government is not expected to afford to bridge the capital gap through its annual budget appropriations,” he said.

He said PE2 hopes that fiscal incentive guidelines would fully respond to the needs of third-party investors, and allow an unrestricted range of technologies and solutions backed by detailed energy audits to be performed by DoE-accredited ESCOs.

“PE2 is likewise hopeful that the IRR would open the doors for more innovative procurement guidelines for the public sector to allow private capital and energy savings to finance energy efficiency retrofits in government facilities through multi-year performance contracts,” he said.

Less than half of 131 PEZA-approved IT projects to seek palace OK

LESS than half of the 131 information technology (IT) projects in Metro Manila approved by the Philippine Economic Zone Authority (PEZA) are expected to move forward with their applications for economic zone status, following the freeze on economic zone applications for locations in the capital.

Administrative Order (AO) No. 18 or “Accelerating rural progress through robust development of special economic zones in the countryside,” which took effect in June, intends to strengthen economic growth in the countryside and suspended the processing of applications for economic zones in Metro Manila.

Exceptions to the moratorium include applications without requirement deficiencies already lodged with the Office of the President (OP), and applications that address requirement deficiencies within thirty days.

In a letter dated July 1, PEZA Director-General Charito B. Plaza told the Office of the President that 131 IT projects as of June 2019 were PEZA board-approved but have not yet been endorsed to the OP, which must issue the final economic zone proclamation.

According to PEZA, 121 of these projects are IT Centers while 10 are IT Parks, generating investment of about P159.44 billion in total.

Half of these, according to PEZA, might not be able to complete the requirements for the application even with a three to six-month transition period. PEZA asked for six months to comply, while the Trade Department said it will request three months.

PEZA also said that the IT locations in Metro Manila are most likely already occupied and profitable even without PEZA status. PEZA does not grant incentives to IT economic zone developers in Metro Manila and Cebu City.

The Philippines currently has 278 IT parks and centers in operation, 167 of which are located in Metro Manila. Makati hosts 45 followed by Quezon City with 35 and Pasig with 24.

PEZA requested in the same letter to exclude the cities of Manila, San Juan, Marikina, Las Piñas, Malabon, Caloocan, Pateros and Valenzuela, which have little to no presence of IT parks and centers. — Katrina T. Mina

Mindanao farmers issue wish list for crop dev’t

By Carmelito Q. Francisco
Correspondent

DAVAO CITY — Mindanao farmers, including agrarian reform beneficiaries (ARB), have put together a list of expected government interventions needed to boost the agricultural sector, highlighting high-value crops.

At the first Mindanao Farmers Conference held in Davao City on July 13, members of the Ugnayan ng mga Nagsasariling Lokal na Organisasyon sa Kanayunan–Mindanao (UNORKA-Mindanao) identified the crops for which development assistance is needed as cacao, Cavendish banana, fruits, coconut, oil palm, and rice.

UNORKA-Mindanao, composed of some 3,000 ARBs and farmer cooperatives from all the regions of Mindanao, is among the first beneficiaries of the Technical Assistance for Fairtrade Compliance provided by the Mindanao Development Authority (MinDA) through its Mindanao Collective Trademark (MCT) program.

“Product certification is just one of the many types of assistance that the ARBs need, if there is one thing evident from what we have gathered on the ground, it is the need for inter-agency support to really uplift the quality of lives of these farmers,” said MinDA Officer-in-charge Chairman Nathaniel D. Dalumpines in a statement.

At the end of the conference, organized by UNORKA-Mindanao with support from the European Union, the farmers turned over a list of resolutions to Davao del Norte 2nd District Rep. Alan R. Dujali, Sen. Christopher Lawrence T. Go, and representatives of various agencies.

The resolutions for specific agencies include the following:

• Department of Trade and Industry (DTI), Department of Agriculture-High Value Crops Development Program (DA-HVCDP), and other agencies; to provide support in order to sustain the cacao industry’s position in the international market for high-quality beans;

• DA and other agencies — to help improve the farm productivity of ARB Cavendish growers;

• Department of Science and Technology, the DA-HVCDP, and other agencies — to mentor fruit farmers in order to advance production in the value chain;

• DTI — to lead and coordinate other programs that will help promote entrepreneurship among ARB coconut growers, including oil palm farmers;

• DA — to consult Unorka–Mindanao in the drafting and implementation of the rice industry roadmap.

Romeo V. Ticon, UNORKA-Mindanao project officer, said the resolutions, which come from the workshop outputs of farmer groups, reflect the “needs of the farmers, their status in life and their hopes.”

Mr. Ticon said they are also aiming to access support windows not just from government but other groups and institutions.

“We know that farmers have problems in production, problems in post-harvest facilities and that these need to be addressed,” he said.

He said during a workshop in Cotabato City, rice farmers claimed that while they can already maximize production, the absence of post-harvest facilities like mechanical driers and warehouses have become the main challenges.

Mr. Ticon also said that issues relating to certificate of landownership awards (CLOA) persist.

“We want DAR (Department of Agrarian Reform) to ensure that ARBs with CLOA are installed in the lands given them,” he said.

UNORKA Secretary-General Leoderic P. Luzenada, meanwhile, said about 30% of the organization’s small farmer members — located in Davao del Norte and the Agusan provinces with a one-hectare allocation each — have yet to receive their CLOA. — with a report from Maya M. Padillo

Swan Style: Cinco designs for Ballet Philippines gala

FASHION and dance both serve the same purpose: to glorify the human body and display it at its zenith. Keeping in mind this goal, Ballet Philippines, for its 50th anniversary gala on Sept. 29, will feature a 50-piece couture collection in a fashion show from renowned Filipino designer Michael Cinco alongside a new dance by Alden Lugnasin, inspired by the Swan Lake ballet. The show will be held at the Marriott Hotel Grand Ballroom.

The idea came when Michael Cinco met Cultural Center of the Philippines chair and former Ballet Philippines president (and former Miss Universe) Margie Moran Floirendo in Paris. Ms. Floirendo then asked Mr. Cinco to do a collection for the upcoming gala, and Mr. Cinco obliged.

Mr. Cinco is known to have dressed various international celebrities, among them Beyoncé. The collection will be inspired by Swan Lake, with Mr. Cinco saying, “I think it’s one of the most beautiful ballets I have ever seen.” Mr. Cinco will also design the costumes for the production.

Another one of the dresses.

The collection was shown in a preview at the Marriott last week, and BusinessWorld saw intricate beading taking the forms of swan feathers on intricate gowns with full trains. Another favorite was a pastel-hued number with a resemblance to a ballerina’s costume, with sleeves arching outward as if a swan preparing to take flight. The collection will be brought from Dubai (where Mr. Cinco is based), and Mr. Cinco was proud to say that the collection was executed by Filipinos living in Dubai.

Ms. Floirendo and Alice Reyes, National Artist for Dance and Artistic Director of Ballet Philippines both shared their thoughts of the same goal of dance and fashion.

“Of all the designers I’ve met, the detail that he does is the same as the detail in dance,” said Ms. Floirendo. “Fashion is an art.”

Ms. Reyes, meanwhile, said, “There is a perfect harmony in partnership between fashion and dance.”

“It’s the magic of theater. And then there’s the reach for perfection. Michael’s works reach for perfection; Ballet Philippines reaches for perfection.” — Joseph L. Garcia

DoLE taps UP to study regional wage-setting system

THE Department of Labor and Employment (DoLE) will partner with the University of the Philippines to study the current wage-setting system after receiving calls to abolish the wage boards.

Labor Assistant Secretary Joji V. Aragon told reporters that the study will be conducted by the National Wages and Productivity Commission (NWPC) in collaboration with the UP School of Economics.

The study will focus on analyzing the current system of salary determination, under which the Regional Tripartite Wages and Productivity Boards (RTWPB) are responsible for issuing wage orders.

“(T)he NWPC has engaged the University of the Philippines School of Economics to undergo a six-month study on these issues,” she said.

In December, NWPC Director Maria Criselda R. Sy said that the NWPC will carry out the study to evaluate the current wage-setting system, as per instruction by Labor Secretary Silvestre H. Bello III.

The study is expected to be completed by the end of the year.

“We have been hearing a clamor (to) increase the minimum wage (and then) abolish the regional wage-fixing system and the abolition of the RTWPBs and abolition of the NWPC,” Ms. Aragon said, adding that this is what pushed the labor department to study the wage system.

The RTWPBs are authorized under Republic Act 6727 or the Wage Rationalization Act. Legislation may be required to abolish the system and alter the wage determination process.

Later this month, Ms. Aragon said that there will be separate consultations with the labor and management sectors on this matter. — Gillian M. Cortez

China Bank looking to offer peso green bonds

CHINA BANKING Corp. (China Bank) is looking to offer peso-denominated green bonds to support demand for environmental and sustainability projects.

China Bank Chief Financial Officer Patrick D. Cheng said on Wednesday that the Sy-led lender is “looking into” offering green debt papers.

“We’re looking into it, but we actually had a $150-million IFC (International Finance Corp.) green bond. That’s being used for…some of the green projects we have,” Mr. Cheng told reporters on the sidelines of China Bank’s bond listing ceremony.

In October 2018, the lender raised $150 million from its maiden green bond offer, with World Bank Group-member IFC as its sole investor.

China Bank said the amount raised will be used to fund “climate-smart projects, increasing the company’s climate portfolio to more than $200 million,” or roughly P11 billion. These include investments in renewable energy, green buildings and water conservation projects.

“There is demand for (green) projects like these. As these come in scale, another green bond would be appropriate depending of course on the size and the scale that comes before us,” Mr. Cheng said.

The bank executive added that China Bank is looking for green projects, as some of its big borrowers are involved in environmental and sustainability projects.

“Some of our big borrowers, a lot of them, especially on the energy side and maybe some on the housing side, have projects that are green in nature because these are really important for us to sustain development.”

Local banks have been moving to ramp up funding for green projects. In December 2017, IFC also subscribed to BDO Unibank, Inc.’s green bond offer to raise $150 million.

Yuchengco-led Rizal Commercial Banking Corp. likewise raised P15 billion from 1.5-year peso green bonds in January, upsized from the P5 billion planned initially.

Meanwhile, Ayala-led Bank of the Philippine Islands established a green finance network last month to serve as a basis for future fund-raising activities for environmental projects.

China Bank booked a P1.9-billion net income in the first quarter, up 24% year-on-year, driven by robust expansion of its core businesses.

Shares in China Bank closed at P27.45 each on Friday, up 30 centavos or 1.1%. — K.A.N. Vidal