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The ghost is clear

A snap from the Manila International Auto Show 2017. The auto industry is still expected to break half-a-million units in sales this year. — PHOTO BY KAP MACEDA AGUILA

Last month was an expected bump in the road for auto sales, but there were other things at play

THE HUNGRY ghosts came to roost. This year, the so-called “ghost month” fell from Aug. 23 through to Sept. 21; the Hungry Ghost Festival itself was on Sept. 6. This is a traditional Chinese occasion when ghosts and spirits — including those of deceased ancestors — are said to rise from the lower realm to visit family or seek victims among the living. To promote good luck and harmony during this period, some practices are observed, such as avoiding the start of construction, signing of contracts, undergoing major surgery, and the purchase of condos — or automobiles.

New vehicle sales reports for August seem to suggest that many car buyers may have had their “third eye” on the observance of the ghost month. In my many years in the automotive industry, this tradition has been a go-to reason by auto dealers and salespeople for low sales. In fact, it is already incorporated into the seasonality of the sales cycle.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), Truck Manufacturers Association (TMA), and the Association of Vehicle Importers and Distributors (AVID) reported total sales of 35,944 units in August. This is the second-lowest monthly sales turnover for 2025, higher only than April. This is 8.4% lower than sales in August last year, and represents a 6.6% decline compared to July 2025. This tells quite a tale. It did not help that the ghost month started on the last week of the month when car deliveries usually peak — accounting for 30% to 40% of the month’s sales. Buyers may have opted to push back deliveries to September to be on the safe side of tradition. On top of that, the two national holidays also resulted to a shorter sales month than usual.

If unofficial reports by non-member importers and distributors are considered, sales in August 2025 are at 37,444 units, which is a lesser drop of 6% versus the same month last year.

The ghost month’s effects notwithstanding, the biggest contributor to the sales slack in August 2025 versus the same month last year is the pickup segment. As will be recalled, the Capital Markets Efficiency Promotions Act (CMEPA) was signed by President Ferdinand Marcos, Jr. last June. Among the provisions in the law was the imposition of an excise tax on double-cab pickup trucks effective last July 1. This raised prices of some pickup variants by more than P200,000. The drop in sales was not immediately reflected in July due to carry-over inventories by some distributors, imported prior to the effectivity of the excise tax. The full impact was felt in August, thus the significant drop in total market sales.

As mentioned above, the total market dropped 6% versus August 2024 — if including sales of non-member auto distributors. Sales of pickup trucks, on the other hand, declined by almost 1,800 units or 34%. Only Isuzu did not experience a contraction in sales in August, presumably because it still has stocks that can be offered at pre-excise tax prices. If we add back the lost pickup sales, total August sales would have been almost at par (98%) with 2024. So there. The ghosts may have given us a scare, but the sales numbers do tell their own story.

Undoubtedly, growth percentages are starting to regularize this year versus last. In the first half of 2024, supply disruptions were still evident and new model launches were continuing to hit the market in quick succession. As we enter the second semester of 2025, growth rates will start to abate due to the higher sales base in the same period last year. This will become even more apparent in Q4 as the plug-in hybrid electric vehicle (PHEV) segment started recording volume sales last year. At the current pace, the market is on track to exceed 490,000 units. But with the usual strong sales takeup in the last quarter, breaking the 500,000 unit sales level is still very much in play.

On a year-to-date basis, total market sales of CAMPI, TMA, and AVID are reported at 306,378 units — just about even with the sum over the same period in 2024. Passenger-car sales dropped by 21.5% due to a fall in the small subcompact sedan market by 30%, primarily on the back of a decline in Vios sales. The supply of Vios was managed down by Toyota Motor Philippines (TMP) to give way to the production of the Tamaraw at its Santa Rosa factory. Making up the slack is a growth in the entry hatchback segment, which saw a growth of 13% led by the Suzuki Espresso (up 42%) and the Toyota Wigo (up 11%).

Meantime, sales of commercial vehicles were reported to have grown by 7.3%, mainly on the strength of the light commercial multi-purpose vehicle segment that includes the Toyota Tamaraw, Mitsubishi L300, Suzuki Carry, and Isuzu Travis. This segment reported a growth of 48% versus the same period last year. This growth is consistent with the sustained demand for versatile workhorse vehicles needed to drive economic activity, especially for use by micro, small, and medium enterprises (MSME) that comprise 99% of businesses in the Philippines. Though year-to-date pickup sales grew by 4%, this is due to pull forward demand and is expected to lag in the coming months.

If we include sales of non-member distributors, total auto sales are estimated at around 320,000 units, up 4% versus the same period last year. This is almost at pace with the gross domestic product (GDP) growth of 5%. Outside of the growth segments mentioned above, another driver is the electrified vehicle (xEV) segment whose sales breached 32,000 units as of August. This accounts for 10.1% of total vehicle sales compared to the whole of 2024 with annual sales of almost 25,000, accounting for 5.1% of the automotive market. Hybrid electric vehicle (HEV) sales are still preferred among the new electrified drivetrains, accounting for almost half of the xEV segment. PHEVs have grown significantly to 37% of the segment while battery electric vehicles (BEV) make up 15%.

Geo-political and geo-economic events continue to cast uncertainty on the economy. The impact of increased tariffs on exports to the USA are also expected to manifest more in the second semester of the year. Furthermore, fiscal and trade deficits continue to climb. Nonetheless, GDP is on a stable trajectory, inflation continues to abate, the Philippine peso remains reasonably strong, interest rates are lowering, and OFW remittances are holding ground. If things stay the course, auto sales should be able to sustain growth and, hopefully, shatter the 500,000 sales mark.

Further BSP easing likely as growth outlook remains ‘delicate’

A woman buys food items at a supermarket in Quezon City, March 4, 2022. — PHILIPPINE STAR/ MICHAEL VARCAS

THE BANGKO SENTRAL ng Pilipinas (BSP) may cut benchmark interest rates again in December to prop up the economy as consumer sentiment remains weak and with fiscal support expected to be limited as the government continues its consolidation plan, Deutsche Bank Research said. 

“Downside risks to the Philippine economy have not faded in our view, despite BSP suggesting that it has reached the policy rate ‘sweet spot’ of 5%. The real rate remains high, and with fiscal constraints and subdued economic sentiment, we think that BSP still has some room to further ease,” Deutsche Bank Research economist Junjie Huang said in a Sept. 19 report.

“The Philippine economy’s current ‘Goldilocks’ state is fairly delicate… We maintain our call for another 25-bp (basis point) rate cut in its December meeting.”

Last month, the BSP lowered benchmark interest rates by bps for a third straight meeting to bring the policy rate to 5%. It has now reduced borrowing costs by a cumulative 150 bps since it began its rate-cut cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said the policy rate is now at their “Goldilocks” rate or “sweet spot” for both inflation and output.

Still, he left the door open to one more reduction within this year to support the economy if needed, which would likely mark the end of its easing cycle.

The Monetary Board’s last two meetings this year are scheduled for Oct. 9 and Dec. 11.

Philippine gross domestic product (GDP) grew by 5.5% in the second quarter, supported by a rebound in agriculture production and faster household spending.

Economic expansion averaged 5.4% in the first semester, just a tad below the government’s 5.5% to 6.5% growth target.

Mr. Huang said the country’s real rate is at 3.5% and would only reach around 2% in mid-2026, which shows that there is space for a looser monetary stance.

While trade has been driven by strong demand for electronics products from Asian economies, the frontloading done by exporters before the US’ “reciprocal” tariffs kicked in last month was also a strong driver of outbound sales, he noted.

“That said, the imposition of semiconductor tariffs could weigh heavily on the Philippines. Electronics comprise ~60% of its total exports, while semis (semiconductors) alone accounts for 40%.”

The country’s trade deficit narrowed to $28.46 billion in the first seven months from the $29.93-billion gap a year ago, government data showed. Exports increased by 13.9% to $48.62 billion as of end-July.

Mr. Huang added that monetary support for the economy may be needed as public spending is only expected to increase “marginally” next year as the government continues its fiscal consolidation path, albeit at a slower pace than initially planned.

“Its target deficit for 2026 is now 5.3%, 0.6 percentage point wider than the 4.7% initially planned, but nonetheless still lower than the 5.5% projected in 2025. Moreover, projected spending in 2026 at 21.5% of GDP is only marginally higher than the 21.4% in 2025, suggesting limited fiscal impulse next year,” he said.

“This in turn may require continued support from BSP to anchor growth at a time when consumer sentiment remains subdued.”

The Development Budget Coordination Committee in June revised the medium-term fiscal program amid global uncertainties.

Based on the revised fiscal plan, government spending is programmed at P6.63 trillion next year or 21.5% of GDP from this year’s P6.082 trillion (21.4% of GDP).

Meanwhile, revenues are projected to reach P4.983 trillion in 2026 or 16.2% of economic output from P4.52 trillion this year or 15.9% of GDP. — Katherine K. Chan

Better data management seen key for PHL companies to benefit from AI

STOCK PHOTO | Image by Nguyen Dang Hoang Nhu from Unsplash

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE COMPANIES need to improve how they track and manage their data to get the most out of their artificial intelligence (AI) investments, according to Kyndryl Holdings, Inc., a US-based IT infrastructure services provider.

“You need to have the data so that you can have data lineage, which means you can follow where the data comes from so you can trust it,” Kyndryl Strategic Markets President Petra Goude said in an interview with BusinessWorld.

Data lineage refers to the ability to track how company data is created, transformed, and consumed across systems. This allows companies to integrate data properly into AI tools and troubleshoot issues or security risks.

“Some data don’t need to be used in real-time — it’s enough to use it overnight, while some data is very critical,” Ms. Goude said. “So, it’s really about having all of those mappings and understand how you can leverage it.”

Proper data lineage would also help companies avoid hallucinations in AI systems, she added.

“If you’re a healthcare provider and you want to leverage AI on a diagnosis, it comes back to the data that the models are using,” she said.

Ms. Goude also cited the importance of having a strong data infrastructure to ensure data lineage and proper integration in AI systems.

According to Kyndryl’s People Readiness Report, 29% of business leaders globally said their workforce is ready to successfully leverage AI. However, about 71% of leaders said their workforce is not prepared to use AI effectively.

“I had the same conversation with the customers that I met in the Philippines, that things are moving forward a lot, but there’s resistance in some of the workforce,” Ms. Goude said.

Kyndryl, which operates in more than 60 countries, designs, builds, and manages technology systems to help companies modernize their IT infrastructure.

Deon Del Mundo, managing director at Kyndryl Philippines, said the country remains a significant growth market as more firms seek to modernize IT systems to adopt AI at scale.

“We see strong growth potential in the Philippines, fueled by the same forces driving transformation across ASEAN (Association of Southeast Asian Nations). AI is at the center of nearly every customer conversation, with business leaders seeking guidance not only on how to adopt generative AI but also how to deploy it securely, responsibly, and at scale,” Mr. Del Mundo said in an e-mailed reply to questions.

In the Philippines, Kyndryl serves industries such as banking, financial services, healthcare, manufacturing, and telecommunications.

“Kyndryl already partners with leading organizations across these sectors in the ASEAN, and we see continued opportunities to extend this expertise to Philippine enterprises as they advance their digital transformation journeys,” Mr. Del Mundo said.

AI technologies could boost the Philippine economy by P1.8 trillion, according to a report by Google Philippines and consulting firm Public First.

Bananas? Taiwan entrepreneur wants to make clothes out of plant material

STOCK PHOTO | Image by Azerbaijan_stockers from Freepik

CHANGHUA, Taiwan — Entrepreneur Nelson Yang is reaching back into Taiwan’s history to turn the humble banana plant into an unlikely sustainable textile.

Taiwan is now the world’s dominant producer of advanced semiconductors but the yellow fruit, still widely grown on the island, was once a source of patriotic pride.

Mr. Yang’s Farm to Material, headquartered in the central Changhua rural belt, is turning banana fiber into textiles he hopes will one day supply global sneaker brands.

“Back in 2008, European (sneaker) brands told us that they were hoping to find a way for food and materials to be produced in parallel, meaning that food and materials are yielded from the same land,” he told Reuters.

“So we’ve been working based on that concept. What we’re doing now is making sure that all our material sources come from food or leftovers from agriculture or the food industry. We then transform those leftovers into usable materials.”

Under Japanese colonial rule from 1895-1945, Taiwan was renowned for its fruit, especially pineapples and bananas, and in the 1960s, the island branded itself the “banana kingdom” to boost exports, now long since overtaken by the tech industry.

Mr. Yang’s company takes the middle section of the banana plant, known as the pseudostem and normally abandoned in the field after harvest, then crushes and dries it to produce the fibers that can make clothing.

Some of the fibers are turned into yarn that can be blended with cotton for socks and can also be turned into vegan leather.

The business is still in its infancy with no orders from apparel companies.

“Banana fiber actually performs better than regular cotton in terms of water consumption, absorbency, and supply stability, making it highly promising for future applications,” said Charlotte Chiang, director of the innovation and sustainable design department at the Taiwan Textile Federation.

“Banana fiber could become a new highlight for Taiwan in the field of biomass fiber in the textiles industry.” — Reuters

How Democratic is the Philippines Compared with its Neighbors?

The 2025 Global State of Democracy Index, released by the International Institute for Democracy and Electoral Assistance, reports annual global rankings for each main category of democratic performance. Out of 173 countries, the Philippines ranked 86th, 92nd, 103rd, and 72nd, respectively, in representation, rights, rule of law, and participation categories.

How Democratic Is the Philippines Compared With Its Neighbors?

Floods upon Machiavelli’s ‘princes’

PORTRAIT of Niccolò Machiavelli by Santi di Tito. — EN.M.WIKIPEDIA.ORG
PORTRAIT of Niccolò Machiavelli by Santi di Tito. — EN.M.WIKIPEDIA.ORG

Niccolò Machiavelli was a Florentine diplomat, author, philosopher, and historian who lived during the Italian Renaissance. He is best known for his political treatise, The Prince (Il Principe), published in 1532, for which he has often been called the “father of modern political philosophy and political science” by modern-day political thinkers.

Such an honorific was earned by this self-made political philosopher who strategized his own survival and positioning in the shifting politics of his time. Historian Maurizio Viroli, in his biography of Machiavelli, relates that Machiavelli was born in a tumultuous era. As a secretary (historian) in the court, Machiavelli witnessed firsthand the state-building methods of Pope Alexander VI (head of the Catholic Church, ruler of the Papal States, and leader of the Holy League with European rulers) and his son, Cesare Borgia. Note that Rodrigo Borgia was appointed cardinal when he was barely in his twenties by his uncle, Pope Callixtus III, and he rose to the papacy after the death of Pope Innocent VIII as the most senior, most powerful cardinal, aligned with the emperors of Europe at that time. As Pope Alexander VI, he made his son, Cesare, cardinal and supreme military commander of papal forces that conquered opposing regimes. These nepotistic appointments by dynastic rulers were characteristic of the era.

Machiavelli personally witnessed the brutal retribution Cesare Borgia inflicted on his rebellious commanders and emphasized “the danger of offending a ruler and then expecting to trust him afterward.” Rodrigo and Cesare Borgia may have set the prototype for Machiavelli’s The Prince — of “political leaders by birth and destiny” who ruled by “the end justifying the means” on subjects who were cowed into submission by fear more than love and allegiance.

When Pope Alexander VI died, a proper papal conclave ultimately selected Julius II — who was a bitter rival of the Borgia family — as pope. Machiavelli still tried to ingratiate himself with the new “Princes,” the Medicis. He redirected his already-started The Prince, and dedicated it to Guiliano de Medici, the new co-ruler of the Florentine Republic with his brother, Lorenzo the Magnificent. Guiliano was “The Prince” to whom Machiavelli wrote his radical political prescriptions for tyrannical, amoral, and enduring power in position. It is said that Guiliano never read Machiavelli’s The Prince.

Changing loyalties of both ruler and the ruled is one of the political realities exposed and warned against in The Prince. “People are loyal only when it suits them,” Machiavelli cautioned. In reality, self-interest drives allegiances and alliances; beware of appearances and false declarations of love and admiration.

Is it better for a “prince” to be feared or to be loved? Machiavelli’s reply: “Since it is difficult for a ruler to be both feared and loved, it is much safer to be feared than loved, if one of the two must be lacking. For this can generally be said of men: that they are ungrateful, fickle, liars and deceivers, avoiders of danger, greedy for profit; and as long as you serve their welfare, they are entirely yours, offering you their blood, possessions, life and children… when the occasion to do so is not in sight; but when you are faced with it, they turn against you…For men are less concerned with hurting someone who makes himself loved than one who makes himself feared, because love is held by a link of obligation which, since men are wretched creatures, is broken every time their own interests are at stake; but fear is held by a dread of punishment which will never leave you.” Always remind everyone of your power.

So, “Prince,” go ahead with whatever you need to do, to keep yourself in power, Machiavelli exhorts. In chapters three, five, and eight,, he explicitly says that fraud and deceit are necessary for a prince to use. Violence is needed for the stabilization of power and the introduction of new political institutions. Force may be used to eliminate political rivals, destroy resistant populations, and purge the community of other men strong enough of a character to rule, who will inevitably attempt to replace the ruler. Politics have no relation to morals, Machiavelli infamously said.

In 1559, the Catholic Church (Pope Paul VI) banned The Prince, putting it on the Index Librorum Prohibitorum, the list of publications that Catholics were forbidden to read. In the 16th century, Catholic writers “associated Machiavelli with the Protestants, whereas Protestant authors saw him as Italian and Catholic.” In fact, he was apparently influencing both Catholic and Protestant kings, Robert Bireley analyzed in his book, The Counter Reformation Prince (1990). The Prince was spoken of highly by Thomas Cromwell in England and had influenced Henry VIII in his turn towards Protestantism and his serial divorce, beheading, or otherwise disposing of six wives.

“Why are we still reading this book called The Prince, which was written 500 years ago,” a Yale University essay asks? (Jan. 1, 2011). Machiavelli is not interested in talking about ideal republics or imaginary utopias, as many of his predecessors had done: “There is such a gap between how one lives and how one should live that he who neglects what is being done for what should be done will learn his destruction rather than his preservation.” This is Machiavelli’s political realism — his intention to speak only of the “effectual truth” of politics, “so that his treatise could be of pragmatic use in the practice of governing.”

Are we still focused on the opportunistic use of power and influence in position? That is exactly the definition of “Machiavellianism” as “the name of a personality trait construct characterized by manipulativeness, indifference to morality, lack of empathy, and a calculated focus on self-interest,” as described by psychologists Daniel and Delroy Paulhus in Machiavellianism (2009).

Machiavellianism is the antithesis of good governance in today’s rights-focused democracies. Yet it thrives, perhaps because of the realities of shifting economics, and the overriding need to “maximize scarce resources” for individual survival and improvement, as espoused by the economist Adam Smith (1776).

It is said that there are almost 250 political families, referred to as “political dynasties,” that control all 82 provinces of the Philippines at all levels. The “taipans,” the cartel of mixed political and business oligarch families which control politics and own various crony capitalist businesses, has reshaped political alliances, according to the Manila Times of Sept. 16, 2020. (Recall the nepotism and dynastic rule in Machavelli’s time.)

According to a Philippine Star editorial on July 15, 2024: “Dynasty building undermines the criminal justice system, with clans controlling the police, prosecution, judiciary and jail facilities in their turfs. This has engendered impunity, as the nation has seen in so many brazen political killings.” There are many unresolved cases of stolen wealth and plunder, extrajudicial killings, oversized confidential funds, pork barrel, and bribery scams pending or still unfiled.

During his fourth State of the Nation Address (SONA) on July 28, President Ferdinand Marcos, Jr. ordered an audit of flood control projects under his administration, as he denounced the corruption that caused people to suffer from recurring flash floods during heavy rains.

Between July 2022 and May 2025, the first three years of the Marcos Jr. presidency, the government funded 9,855 flood-control projects worth over P545 billion. Massive flooding in recent months has brought these projects under the harsh glare of public scrutiny, with allegations of substandard work and links to corrupt practices.

An initial audit flagged projects collectively worth more than P350 billion ($7.11 billion) which did not specify the exact flood control structure built or repaired, as well as several projects at different locations which disclosed identical designs and materials. Ghost projects were revealed.

The Department of Public Works and Highways (DPWH) identified a total of 2,409 contractors for both local and national flood control projects.

President Marcos Jr. disclosed that an initial review found that P100 billion worth of projects — 20% of all flood control projects in the past three years — were undertaken by only 15 contractors.

Senator Panfilo Lacson said as much as 60% of infrastructure funds could go to “commissions” and off-the-books payments to legislators, public works officials, auditors, and others. “The pie-sharing varies depending on the level of greed,” he said.

The Machiavellian level of greed was first unmasked by a rerun of a video by Korina Sanchez on Korina Interviews and another by Julius Babao for his YouTube channel which both showcased the fantabulous house and 40 luxury cars of the couple Sarah and Curlee Discaya. It seemed to be a feel-good, rags-to-riches story, until Korina asked Sarah, “Where did all this wealth come from?” “From the DPWH,” was Sarah’s forthright reply, as she explained that the reason why they have this many cars is also to show their clients their “capacity to execute a project” (Philippine Star, Aug. 8).

It is, again, the Machiavellian model of power through structured interdependencies and rewarded allegiance to the “princes,” the powers-that-be in the self-centered bureaucracy that tapers to the top. In the Senate Blue Ribbon Committee that is building up the facts of the flood control projects issue, bigger and bigger names are being implicated, as selected witnesses tell on each other and insinuate the Machiavellian ruthlessness towards self-aggrandizing wealth and continued power. Those high-ranking officials who might be connected to the DPWH anomalies have resigned or were quietly relieved of their positions.

“You can always be a generous giver when what you give is not yours,” Machiavelli says of the sharing of what is plundered by princes. But you should not “load your people with exorbitant taxes and squeeze money out of them” to fund your generosity, Machiavelli warns.

The Filipino people are angry with the greed and corruption in government. The people know that it is their tax money that has been stolen in this systemic plunder of the flood control funds. A big protest rallies were held at the Luneta and the historic EDSA monument beside Camp Aguinaldo yesterday, Sept. 21, the anniversary of Marcos Sr.’s Martial Law which was declared 53 years ago.

Floods are upon Machiavelli’s new “princes.”

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

US legislators file bill to axe tariffs on coffee

REUTERS

US REPRESENTATIVES Don Bacon and Rohit Khanna were set to introduce bipartisan legislation that would exempt coffee products from any tariffs, spokespeople for the legislators said.

Brazil used to supply a third of all the coffee used in the US, but shipments dried up since a 50% tariff was imposed on Brazilian imports at the end of July.

“Families across America are feeling the cost of higher coffee prices, which are already up 21%, and tariffing a product we can’t grow at a large, commercial scale, only makes it worse,” Republican Mr. Bacon said.

Roasted coffee prices at grocery stores in the US rose 20.9% in August from a year earlier, according to the Bureau of Labor Statistics.

“I look forward to working with Rep. Khanna to introduce this bipartisan bill and believe it can help spark the broader debate about Congress reclaiming its constitutional role in tariff policy,” Mr. Bacon, one of the few Republican voices in

Congress who has taken positions independent of President Donald J. Trump, added.

Prices for arabica coffee, the mild variety mostly used by coffee chains such as Starbucks and Dunkin Donuts, have jumped around 50% at the Intercontinental Exchange in New York since the Trump administration imposed its tariff on Brazilian imports, including green coffee.

“If you drink coffee every morning, how can you not be mad about that?” Mr. Khanna, who is a Democrat, told Reuters, referring to the price rise.

The bill seeks to exempt coffee from any tariffs imposed after Jan. 19, including roasted and decaffeinated coffee, as well as coffee husks, skins, and coffee substitutes containing coffee in any proportion. — Reuters

Upmarket contender

Formally launched last week, the BYD Tang DM-i is priced at P2.098 million. — PHOTO BY PABLO SALAPANTAN

The BYD Tang DM-i might just shake up the midsize SUV segment

By Pablo Salapantan

IS THE BYD Tang DM-i a sure putt for distributor ACMobility?

BYD’s seeming formula for success has been simple: Challenge and undercut the competition with better-equipped, ideally priced, good-quality vehicles. This approach has surely been central to the winning sales figures it now enjoys with its already established models in key segments like the Seal 5 DM-i, the Sealion 5 and 6 DM-i, Seagull EV, and more.

Its latest challenger in the country is taking its usual fight to a very competitive segment, the midsize SUV — specifically ones rising on the PPV or pickup-based platform. Enter the Tang DM-i, with which BYD is keen to make an impression — and possibly take everyone’s lunch money in the process.

ELEVATED DM-i
The first thing you need to know about the Tang DM-i is that it’s a higher-tier model compared to the aforementioned Seal and Sealion. In the BYD universe, the “ocean/water models” serve are the more mass-market, affordable options, and the “dynasty models” like the Tang take things to a level higher in terms of the overall feel of the vehicle.

I felt that difference immediately once I stepped inside the BYD Tang DM-i to set off for our drive to Anvaya Cove in Bataan. As the first driver of the day, I quickly settled into the plush interior highlighted by the usual soft-touch materials, luxurious touches, and upmarket appointments.

You get a huge panoramic sunroof, leather seats, wireless charging, and easy connectivity in Apple CarPlay and Android Auto. The Tang’s big infotainment screen interestingly does not rotate like in other BYD models. When asked, the brand says this was probably done to keep costs down — or maybe to focus on what’s important.

Looks-wise, the Tang DM-i is a tad conservative compared to its BYD stablemates; it has a more curved and sculpted look, with no outlandish (or garish) touches. It is a welcome difference from the usual “out there” looks of the recent BYD models.

Now, down to the most important aspect of the Tang DM-i, the powertrain. Propelling this vehicle is a 1.5-liter turbocharged high-efficiency gasoline-fed generator paired with the BYD Super DM-i electric motor technology. Combined, the setup outputs 200ps and 315Nm of torque. Significantly, it can muster a total range of 1,160 kilometers (with an exclusive EV range of 110 kilometers).

Essentially, the 1.5-liter mill is used as a range extender for the Tang DM-i, providing the owner and driver peace of mind, and sans range anxiety. There’s also a plug-in port, should owners want to top up at charging stations or at home.

Safety comes in the form of the usual ADAS (advanced driver assistance system) features found in most models in the BYD lineup. This collection further gives BYD a leg up on the direct competition, which lack most of the safety features found in the Tang DM-i.

SELF-DRIVEN SUV
Most midsize SUVs are geared for passengers, and rarely is any significant focus given to the driver experience. In the BYD Tang DM-i though, the script is flipped, and the driving experience for me is the highlight more than anything else.

I like how the Tang DM-i feels easy to use from the get-go. There are no complicated procedures, the button layouts are well placed, and the maneuverability is top-notch for something this big.

Power is immediate from the turbocharged engine, which gives the oomph and torque a vehicle of this size needs to hustle along. In fact, it may feel so brisk and the power so sudden that torque steer sometimes makes an appearance, so caution under heavy acceleration should be exercised.

Frugality is at the forefront of every BYD DM-i model, and the Tang is no exception. In the city during heavy traffic, we saw numbers climb to as high as 19kpl, and highway cruising yielded 22kpl. The claimed 1,160 kilometers of full range appears realistic, with no need to refuel or even ease off the throttle, and it seems the DM-i technology easily adapts to driving conditions.

My one critique of the BYD Tang DM-i concerns the ride. While most vehicles in this class ride harsher due to ride height and rugged underpinnings, I think the Tang additionally has huge rims to blame for the somewhat hard ride. While it isn’t back-breaking, I was assuming the ride would be better, given that it rides lower than other SUVs, and doesn’t appear to be geared for ruggedness.

THE BOTTOM LINE
My overall experience with the new BYD Tang DM-i leads me to believe that the brand had a specific mindset when it came out with the model. Its main purpose is to provide a less rugged, harsh, and noisy experience than what the current crop of PPVs generally offer, while taking efficiency (through DM-i technology) to another level that conventional ICE-powered SUVs can’t match.

The Tang has everything a buyer would want without a hint of compromise — a proposition that should prove too good to pass up.

Yields go down as Fed resumes its easing cycle

By Pierce Oel A. Montalvo, Researcher

YIELDS on government securities (GS) traded at the secondary market went down across all tenors last week as the market priced in the US Federal Reserve’s first rate cut for this year and expectations of further easing amid signs of weakness in the world’s largest economy.

GS yields, which move opposite to prices, declined by an average of 3.26 basis points (bps) week on week, according to data from the PHP Bloomberg Valuation System Reference Rates as of Sept. 19 published on the Philippine Dealing System’s website.

Yields dropped across the board. At the short end of the curve, yields on the 91-, 182-, and 364-day Treasury bills (T-bills) slid by 14.38 bps (to 4.9458%), 1.67 bps (5.1976%), and 4.90 bps (5.3041%), respectively.

At the belly, the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down by 4.18 bps (to 5.5559%), 2.69 bps (5.6533%), 2.28 bps (5.7301%), 2.19 bps (5.7912%), and 2.06 bps (5.8705%), respectively.

At the long end, yields on the 10-, 20-, and 25-year bonds fell by 0.62 bp (to 5.964%), 0.48 bp (6.3445%), and 0.46 bp (6.3445%), respectively.

GS volume traded declined to P43.82 billion on Friday from P46.9 billion the week prior.

Lodevico M. Ulpo, Jr., vice-president and head of fixed-income strategies at ATRAM Trust Corp., said the local market was “broadly constructive” heading into the Fed’s two-day meeting last week.

“Positioning reflected investor confidence that the anticipated rate cut would reinforce the case for extending into the belly of the curve,” Mr. Ulpo said in a Viber message.

“The Fed’s tone has shifted meaningfully. While tariff-related inflation risks remain a watchpoint, the focus has pivoted toward supporting employment amid signs of labor market weakness.

For local markets, this translates into a bias for easier US policy conditions, which in turn anchor expectations of a supportive global rates backdrop for Philippine bonds.”

At Wednesday’s meeting, the Fed lowered its policy rate by 25 bps to a range of 4%-4.25%, its first cut since December, and signaled a gradual easing cycle in response to mounting labor market concerns, Reuters reported.

At the same time, Fed Chair Jerome H. Powell highlighted “a challenging situation” for policymakers, noting that risks to inflation were tilted to the upside and risks to employment to the downside.

The comments dampened market optimism despite a much hoped-for dovish shift after recent data that showed unemployment climbing to 4.3% in August and payrolls growing far less than expected. A steep downward revision to benchmark jobs figures for the year through March also recently added weight to the view that the labor market is losing steam, bolstering the case for multiple rate cuts ahead.

The US central bank’s release on Wednesday of updated quarterly economic projections, including rate forecasts issued in a chart known as the “dot plot,” reflected expectations of more easing this year when compared to the “dots” from the June meeting, with 50 bps in cuts seen before year end.

At the same time, the Fed’s projections still put inflation ending this year at 3%, well above the central bank’s 2% target, while its projection for economic growth was slightly higher at 1.6% versus 1.4%.

Security Bank Vice-President and Head of Fixed Income Dino Angelo C. Aquino said in an e-mail that the Fed cut was seen as hawkish and was “a headwind to the local bond rally.”

“Despite weakening labor market in the US, the tariff impact on inflation remains uncertain — hence, it may add volatility in the short term,” he added.

“The effect of the much awaited 25 bps cut by US Fed has pushed rates lower. Given these developments, this gives the BSP (Bangko Sentral ng Pilipinas) room to cut rates in October to help support growth amid stable inflation,” Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message.

The BSP lowered benchmark borrowing costs by 25 bps for a third consecutive meeting last month, bringing the policy rate to 5%. It has now delivered cumulative rate cuts of 150 bps since starting its easing cycle in August 2024.

The Monetary Board’s last meetings for the year are scheduled for Oct. 9 and Dec. 11.

The inclusion of Philippine bonds in the positive watchlist for JPMorgan Chase & Co.’s emerging market government bond index also helped drive appetite for securities last week, Mr. Aquino said. “Bonds saw good two-way flows, which were skewed to better buying from both local and foreign flows.”

“Investors are extending duration in anticipation of further policy easing in the months ahead,” Mr. Ulpo added.

For this week, rate-cut expectations will continue to drive GS yields lower, Mr. Ravelas said.

“The immediate focus will be the release of the Bureau of the Treasury’s borrowing program and the upcoming auctions. Strong demand is likely to persist in the T-bill space and the three-year bond auction, which could drive a bull-steepening of the curve as front-end rates drift closer to BSP policy levels. At the long end, performance will remain sensitive to global rate developments, with duration demand reinforced by broad investor positioning and supportive technicals,” Mr. Ulpo said.

There could be some volatility as markets continue to digest the Fed’s decision and statements from its officials over the weekend, Mr. Aquino added.

“The market is expected to see sporadic selling, but expect demand to remain robust.” — with Reuters

Porsche Design showcases 911-inspired products

The Porsche Design Cupsole Sneaker (P20,000) is made in Italy from calf skin. It is a modern sport shoe with a light rubber sole made from recycled material. It comes in a Porsche Design shoe bag and includes spare laces. — PHOTO FROM PORSCHE DESIGN MANILA

PORSCHE DESIGN hosted an exclusive car meet last Sept. 11 at the AutoComplex in Quezon City — celebrating the brand’s “enduring connection to the original Porsche 911.” Said Porsche Design Manila President Hans Yao, “Just like Ferdinand Alexander Porsche who stood the test of time, giving us a brand that is beloved through generations, Porsche Design carries the same principles of innovation, precision, and timeless excellence. And representing the brand which started the first-ever Treffen Der Ikonen (“meeting of icons”), this gathering is indeed a testament to his vision.”

Around 100 Porsche 911s across generations made an entrance as an emcee narrated their stories. Mr. Yao and Porsche Design Manila Marketing Head Heinrich Quintong welcomed guests and spoke about the brand’s “engineered luxury” philosophy, which merges function with form.

A video presentation showcased Porsche Design’s lifestyle products — from sleek timepieces to modern luggage. Various showcases were set up: a “heritage gallery” for guests to learn more about FA Porsche’s design journey, starting from the birth of the Porsche 911 to his vision of expanding into lifestyle products; a “timepieces and innovation lounge” for a look at Porsche Design’s iconic chronographs inspired by motorsport engineering; a “travel and mobility showcase” with the brand’s premium luggage, backpacks, and other leather goods that are “created for optimum performance, durability, and style perfect for both urban lifestyles and global travels;” and a “lifestyle and fashion zone” displaying apparel, eyewear, footwear, and accessories.

Event sponsors included AutoComplex, Second Skin Industries, Diageo, Nustar Resort and Casino, Washington Watches, Singlife, Mt. Fuji, and Summit Golf and Country Club. Porsche Design shops are located at Rockwell Powerplant Mall, Shangri-La Plaza, Okada Manila, Newport Resorts Mall, and Nustar Resort and Casino. Follow the brand on Facebook (Porsche Design Manila) and Instagram (@porschedesign.manila).

Toyota eyes more Tamaraw conversion models

Toyota Tamaraws aboard a Ro-Ro (roll on, roll off)vessel. — PHOTO BY PABLO SALAPANTAN

TOYOTA MOTOR Philippines (TMP) Corp. is planning to roll out additional conversion models for its Next Generation Tamaraw to capture more small and medium enterprises (SMEs), citing strong demand for commercial vehicles.

“Because of the strong performance of Tamaraw, we recently introduced new conversion models,” TMP First Vice-President for Corporate Affairs Josephine Villanueva told BusinessWorld in a phone interview.

“And because of strong demand, it is going to boost our production, and we will try to introduce more conversion models to reach other types of customers,” she added.

The Tamaraw, relaunched last year, initially came with three conversion types — aluminum cargo, utility van, and dropside.

Earlier this year, TMP added new variants including a food truck, ambulance, patrol vehicle, camper van, wing van, and mobile store.

Ms. Villanueva said that beyond Tamaraw’s monthly sales, which reached 1,200 units as earlier reported, the company is monitoring the broader pure commercial market.

Citing data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), she said that the pure commercial market — covering vehicles under one ton and over one ton — grew by 47.8% in the first eight months.

Industry sales rose to 30,446 units in January to August from 20,595 a year earlier.

Trade Secretary Ma. Cristina A. Roque said that TMP President Masando Hashimoto, in a Sept. 18 meeting, noted strong demand for food trucks, camper vans, and delivery vans.

“The demand is so huge, so they came here to ask about incentives, the usual,” Ms. Roque said.

The government is finalizing a new auto revival program called the Revitalizing the Automotive Industry for Competitiveness Enhancement, which will offer incentives similar to the Comprehensive Automotive Resurgence Strategy program but with a lower volume requirement of 100,000 units.

“It will just be a matter of time… because we want more manufacturers to join,” Ms. Roque said.

In the January–August period, TMP retained its market leadership with sales of 146,357 units, up 4.1% from 140,654 a year ago. It accounted for 47.93% of total industry sales. — Justine Irish D. Tabile

Style (09/22/25)

Doc Martens’ Zebzag sole in two new boots

DR. MARTENS’ cushioned Zebzag sole staked its claim on summer with the Zebzag Mules. Now, the sole is wearable year-round with the introduction of two new pairs of boots. The Zebzag sole is designed with a cushioned core, fusing a lightweight EVA midsole with a durable PVC tread. The Zebzag Laceless boot is inspired by the brand’s 1460 boot with some relaxed adjustments. It is a slip-on style that maintains the aesthetic of a lace-up, wrapped in relaxed black Wyoming leather for a lived-in look fresh out of the box. It’s finished with the brand’s black and yellow scripted heel loop. Sitting slightly lower on the ankle is the Zebzag Rigger boot, inspired by industrial silhouettes and reformed for relaxed comfort. Another slip-on, the boot is fitted with dual pull-tabs and marked with Puritan stitch detailing. The Rigger boot is available in black Wyoming leather or water-resistant Milled Nubuck in a variety of shades. The new boots are also fitted with SoftWair insoles. The Zebzag Laceless and Rigger boots are available globally starting this month and the Zebzag sole will also appear elsewhere in the Dr. Martens Fall-Winter 2025 line-up.

Corso Como 88 opens at BGC

CORSO COMO, the luxury boutique known for its Italian leather pieces, is now in Bonifacio Global City (BGC). The newest Corso Como 88 store is located inside the Hongqi showroom, ground floor Asian Century Center, 27th Street corner 4th Avenue, BGC, Taguig. The outlet promises a unique shopping experience with fashion pieces displayed side by side with the latest sedans, SUVs, and EVs by Hongqi. The official distributor of Biagini, Buti Pelleterie, BOIS 1920, and Acqua dell’Elba in the Philippines, Corso Como 88 is home to luxe Italian leather pieces and other top European brands. “We always like to offer something different for our friends who frequent Corso Como 88,” said owner Imelda Menguito in a statement. “In One Ayala, aside from showcasing our leather pieces and accessories, we hold events and parties inside the store. And now in BGC we are inside a prestigious car showroom, a real treat for those who appreciate luxury, fashion, and style.”

Gap celebrates logo with sale

THE Gap is bringing back the Logo Weekend, spotlighting its signature logo collections. From Sept. 26 to 28, shoppers can check out the “Buy one Get one deal” on Gap’s logo apparel (hoodies, sweatshirts, tees, sweatpants, sweat shorts, accessories) for the whole family. Special promotions will be available in-store at branches at  Trinoma, SM Mall of Asia, SM Megamall, Shangri-la Plaza, Glorietta 4, Rustan’s Makati, Alabang Town Center, the Evia Lifestyle Center, Ayala Malls Manila Bay, and Abreeza, and online at gap.com.ph. For more information, visit the website or follow @gapphilippines on Facebook and Instagram.

COS shows at NYFW

COS returned to New York Fashion Week (NYFW) with its Autumn/Winter 2025 collection: a study in contrast, materiality, and craftsmanship, staged inside Brooklyn’s Greenpoint Terminal Warehouse. The show unveiled 47 refined and powerful looks. Womenswear explored sculptural draping, cocooning volumes, and versatile day-to-night dressing — highlighted by a softly sculpted silk dress. Menswear brought tailoring with oversized proportions, tactile knits, and tonal layering, grounded by timeless leather footwear. Accessories and bags echoed the same craftsmanship, completing sleek, contemporary silhouettes. Select pieces from the COS Autumn Winter 2025 collection are now available in the COS Store at SM Aura Premier and on cos.com, with limited drops arriving throughout the season.

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