Facebook Instagram Linkedin X Youtube
Home Blog Page 9819

Transportation of mass destruction

In the last week alone, we’ve seen eight high school children, mostly aged 14, get mowed down on a pedestrian crossing in Makati by an unlicensed, drugged-out jeepney driver who was on the wrong side of the road. We saw a seven-month-old baby and his mother run over and killed by another runaway truck, leaving another 10 people seriously injured. There was a motorcycle rider killed instantly by a car driven against the flow of traffic — and countless other incidents that may or may not have ended up on your newsfeed.

If this was a virus we were talking about, the whole country would be on lockdown and we would run out of face masks. But it’s not; it’s worse. It’s behavioral, extremely avoidable, and yet we just keep on handing out licenses like they were flyers for pre-selling condos. And that needs to change; we cannot keep blaming the kamote drivers if our authorities are the ones planting them.

Accidents kill more Filipinos than terrorism and the coronavirus put together. And the irony here is, we will adjust our lives, sacrifice our privacy, wear masks, hold Senate hearings for network franchises, and spend billions on cosmetic security all around the country to wage a full-on war against something that statistically has less chance of happening than a Makati-to-Cubao trip in five minutes. But when it comes to something that is officially one of the leading causes of death (according to the DoH) nothing happens. Zilch. Nada. Maybe a couple of grandstanding politicians giving a sound bite but, basically, after all is said and done, a lot more is said than done.

It’s time for real action. I know I’m not the only one sick to death of seeing yet another driver weeping on TV asking for dispensa (forgiveness) and crying that he is poor, yet as soon he gets back behind the wheel, he drives like he has the Sultan of Brunei signing checks for him. It’s time to get tough — no matter what your socioeconomic profile is. And it all starts with raising the standards through better education, stricter testing, even stricter penalties, and placing a higher value on the privilege of driving.

We need to elevate the profession. Enough of this entry-level job nonsense. Let’s give it the respect and seriousness it deserves. By keeping it as a minimum-wage job with no substantial costs or barriers to get a license, our authorities are the ones assigning a value to it, which in this case is zero. We need to create more value around driving so we attract a better caliber of driver because, I guarantee you, it will claim far more lives than any of the other things we react so impulsively to.

In the wrong hands, a vehicle is our biggest weapon of mass destruction.

Move fast

Ask those who have gone far in the National Basketball Association, and they’ll tell you to a man that camaraderie counts as one of the most important factors to success. Talent is still at the top, of course, but esprit de corps counts as 1B on the list, and figures to be far more elusive. The annals of pro hoops are littered with examples of superstar-laden lineups that ended up being spectacular busts. In this regard, the job of the general manager is never-ending, fraught with obstacle after obstacle through a continual search for improvement.

Which, in a nutshell, is why the Lakers are hard-pressed to tinker with their roster. They’re compelled to tread lightly, and not just because of salary cap constraints. Not for nothing are they ruling the West two-thirds into the season: They have learned to be collectively better than the sum of their individual selves. From one to 15, they genuinely like — and pull for — each other, even off the court, as much a reflection on the leadership of LeBron James and Anthony Davis as on the willingness of the rest to subscribe to common goals.

True, the Lakers have evident weaknesses they need to address if they truly plan to meet their championship expectations. And even as they’re trying to do so, they have seemingly been thwarted by circumstances beyond their control. They were spurned by Nick Collison, who decided to stay retired. They flamed out on Reggie Jackson and Marcus Morris. Meanwhile, they have kept winning, and GM Rob Pelinka has kept looking. The buyout market is open until March 1, so he has a little more time left to convince potential cogs to don purple and gold.

If plans turn to reality, the Lakers are about to get a vital three-and-D veteran who can complement a small-ball lineup with Davis at the five spot. Markieff Morris may not be the better of the twins, but his capacity to ball isn’t the question. However, his fit with the tightly knit group is. And it isn’t simply because he will be disrupting the status quo; it’s that Pelinka will have to bid goodbye to DeMarcus Cousins — hitherto unable to suit up because of a torn anterior cruciate ligament, but nonetheless a popular presence who brings countless intangibles to the equation — in order to make room for him.

Ideally, Morris’ acquisition should be a plus. And, for all the right reasons, the Lakers should have little to no trouble adjusting on the floor. They’ll have to deal with Cousins’ departure off it, though. Never mind his nonexistent stat line. Forget about his once-familiar sight at the end of the bench. He won’t be easy to replace. They hope to move on soonest, and how fast they do may well determine how far they ultimately go.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

PSALM to run after nearly P34B bad accounts in power sector

STATE-LED Power Sector Assets and Liabilities Management Corp. (PSALM) will “vigorously” go after independent power producer administrators (IPPAs) with delinquent accounts amounting to P33.62 billion, the Finance department said on Sunday.

DoF Undersecretary for Legal Affairs Bayani H. Agabin said in a press release that Finance Secretary Carlos G. Dominguez III, who chairs PSALM, had ordered the agency to initiate collection cases versus former IPPAs that have existing unpaid dues.

In 2019, PSALM collected a total of P70.41 billion from IPPAs, or private entities that manage the output from the energy conversion the power purchase agreements that National Power Corp. (Napocor) entered into with the independent power producers.

IPPAs are appointed through public bidding conducted by PSALM, a corporation created by law to privatize the power generation assets of Napocor that were built during the crippling energy crisis in the 1990s.

The Department of Finance (DoF) identified a unit of San Miguel Corp., South Premiere Power Corp. (SPPC), as having the highest unpaid account at P23.94 billion as of Dec. 31, 2019. SPPC administers the capacity of the Ilijan gas-fired power plant in Batangas City.

In a pending case before the Regional Trial Court of Mandaluyong City, SPPC is asserting another formula for computing its payables to PSALM. The case has been pending since September 2015.

Other companies with existing delinquent accounts include Unified Leyte Strips of Energy’s IPPAs with Good Friends Hydro Resources Corp., which got its contract terminated in August 2017, and has unpaid dues of P1.21 billion, as well as the Waterfront Mactan Casino Hotel, Inc. that had its contract terminated in October last year, owing PSALM P87.74 million.

The DoF quoted PSALM President Irene Joy Besido-Garcia as saying that if the agency is not able to collect the “hefty financial obligations” from delinquent accounts, it will be forced to contract new borrowings to liquidate Napocor’s maturing debts.

She described the new borrowings as a “vicious cycle that will result in PSALM absorbing additional interests and other finance charges.”

The other IPPAs that PSALM is calling out to pay are Filinvest Development Corp. (FDC) Utilities, Inc. for the Unified Leyte Strips of Energy contract and FDC Misamis Power Corp. for the capacity of Mindanao I and II Geothermal Power Plants, by P1.17 billion and P2.63 billion, respectively.

Vivant-Sta. Clara Northern Renewables Generation Corp. (Northern Renewables), administering the IPPA agreement for the Bakun Hydroelectric Power Plant in Ilocos Sur, also has an unpaid obligation of P4.19 billion,according to the DoF.

“PSALM expects to collect additional payments from Northern Renewables this 2020 in view of a settlement agreement they had submitted to the court,” it added.

According to its report, PSALM’s average cost of borrowing for last year was 5.07%, with total revenues collected reaching P98.3 billion, leaving P422.2 billion worth of remaining debt from Napocor that PSALM needs to raise money for.

The DoF said a failure to meet the P33.62-billion collection target this year would translate into an annual borrowing cost of P1.7 billion, which could have been used to fund government programs.

The delinquent accounts are part of the P95 billion that IPPAs and other industry players such as electric cooperatives owe to PSALM, including the receivables it inherited from Napocor, according to Ms. Garcia. — Beatrice M. Laforga

The PH electric vehicle industry: fully charged and ready to go

NO DOUBT about it, the electric vehicle (EV) is the vehicle of the future. And in the Philippines, the missing pieces of the puzzle are falling into place one by one.

Edmund Araga, president of the Electric Vehicle Association of the Philippines (EVAP), reveals that the domestic EV industry is seeing the fruits of what EVAP has painstakingly labored on through the years. “We now have products from two to four wheels serving primarily the transport sector, charging stations are being put in place, government support through incentives are in the works, product standards and vehicle registration protocols are being laid out, and partnerships with major EV players in the ASEAN region are being forged.”

The optimism of EVAP is bolstered by a study conducted last year by the Edison Electric Institute revealing that global EV sales totaled about 2.1 million for 2018, an increase of 64% compared to the total sold in 2017. In 2018, EV sales increased by 79% in the US, 78% in China, and 34% in Europe compared to 2017.

In the US market alone, EV sales represented approximately 17% of global EV sales in 2018. More than 1.18 million EVs were on the road in the US as of March 31, 2019. Its market share grew to 1.8% in March 2019, up from 1.6% in March 2018.

“At the domestic front, local electric tricycle manufacturer BEMAC has produced 3,000 e-trikes under the Tricycle Replacement Program of the Department of Energy (DoE). These are now being deployed in various local government units nationwide,” says EVAP Chairman Rommel Juan. “In the four-wheel transport sector, electric jeepneys are now included in the PUV Modernization Program of the Department of Transportation. Some units are already operating in General Santos City. We are happy that EVs have gained public acceptance and have now achieved a foothold in the domestic mass transport industry.”

For private use, the EV industry is abuzz with news of the forthcoming launch of the electric version of the Mitsubishi Outlander SUV by April 2020 and the Nissan Leaf car later. The Chinese manufacturers will not be left behind with the introduction of their own EVs by BYD, Levdeo, Geely, and MG Motors.

EVAP Executive Director Dr. Manny Biona discloses that the industry players are moving fast to put the technical muscle and much-needed infrastructure to the EV industry. “A charging station program is now on the drawing boards of the DoE and MMPC has followed suit by establishing charging stations at select dealerships. Automotive battery manufacturer Motolite will soon locally produce and supply lithium ion batteries as a pioneering enterprise.”

Biona adds that product standards for EV parts and components have been approved by the Bureau of Philippine Standards of the Department of Trade and Industry (DTI) based on international standards. “As a matter of fact, BPS has created Sub-committee 21 under Technical Committee 44 for Road Transport to focus on standards for EVs. This shows the importance the government has given to the EV industry.”

Araga says that in terms of vehicle registration, the Land Transportation Office has drafted an Administrative Order on the recording, registration and operation of EVs. “Because of the rapid developments in the EV industry, it has made current prescribed specifications of light EVs and low-speed vehicles no longer applicable. LTO needs to cope with these advancements, thus the need to consolidate and update the current issuances and guidelines in recording, registration and, operation of EVs.”

There is also a bill in the Senate and other programs in the works that will give the EV industry a clear direction then give incentives to its implementation. Senator Sherwin Gatchalian has sponsored Senate Bill 174 that will provide the national energy policy and regulatory framework for the use of EVs and the establishment of EV charging stations.

Araga explains that this mandates seven government institutions plus the local government units to work together. “The bill proposes dedicated parking slots in public and private establishments and even in gasoline stations. It also grants fiscal incentives for local manufacturing, importation and utilization. Non-fiscal incentives will also be granted such as prioritization in vehicle registration and granting of franchises and exemption from the number-coding scheme.”

But the best part says Araga is that industrial and commercial companies, public transport operations, NGAs, GICCs, and LGUs must ensure that initially, at least five percent of their fleets shall be EVs with a timeline for the gradual increase of such percentage until the entire fleet is electrified.

Juan says that the United Nations Development Programme (UNDP) has commissioned and funded a program on the promotion of low-carbon urban transport system in the Philippines. “It aims to create an enabling environment for the commercialization of low-carbon urban transport systems. This will be done through effective enforcement of policies, support for promotional activities, adoption and implementation of low carbon transport plans in major cities and increasing private sector participation and investments in the deployment process. Three major cities have been approved for this while four other major cities are being evaluated.”

Juan also adds that the entire automotive industry is eagerly awaiting the much-needed Executive Order to implement the eco-PUV program of the DTI that will give incentives to both vehicle platform suppliers and body builders for the local manufacturing of PUVs under the government’s PUV Modernization Program. “This will be a much-needed shot in the arm not only for the EV industry but for the entire automotive industry,” Juan says.

To keep pace with EV growth in the ASEAN region and share best practices, EVAP recently spearheaded the formation of the ASEAN Federation of Electric Vehicle Associations (AFEVA). Charter members are the EVAs of Malaysia, Singapore, Thailand, and the Philippines. EVAP chairman emeritus Ferdi Raquelsantos says that this was the result of the almost annual hosting of EVAP of the Philippine EV Summit. This brings together under one roof all the major EV industry players not only in the Philippines but in the region as well. “We see AFEVA as our vehicle to a harmonious unification of best industry and manufacturing practices in the region, of research and development initiatives, of continuous improvements in both products and processes and of improving our network that has already resulted in some joint venture projects.”

EVAP is very optimistic about these recent developments. The domestic EV industry is fully charged and raring to go.

 

Established in 2009, the Electric Vehicle Association of the Philippines (EVAP) espouses the idea of “a nation wherein the use of electric vehicles is highly promoted, encouraged and supported by its government and the society in order to develop a transportation landscape that is one with the environment ecologically and economically.” It, today, boasts more than 500 industry partners and 54 active member organizations. EVAP annually organizes the Electric Vehicle Summit.

SEC defers new reporting rules for real estate firms to next year

By Denise A. Valdez
Reporter

THE Securities and Exchange Commission (SEC) is allowing real estate companies to defer the implementation of reporting guidelines on over time transfer of constructed goods.

Memorandum Circular No. 4, which the SEC issued on Feb. 21, provided relief for real estate firms until the end of the year in following the agenda decision of the International Financial Reporting Standards (IFRS) Interpretations Committee (IFRIC).

But starting Jan. 1, 2021, real estate firms will be required to adopt the IFRIC interpretations of the guidelines and any amendments retrospectively, or as the SEC will later prescribe.

“The above relief shall form part of PFRS (Philippine Financial Reporting Standards) for the purpose of preparing and filing general-purpose financial statements with the commission,” the circular said.

To recall, the IFRIC issued an agenda decision in March 2019 agreeing with the requirements in Philippine Accounting Standards (PAS) 23 on borrowing costs. PAS 23 says borrowing costs directly attributable to the acquisition, construction or production of an asset is considered part of its cost, not expense, as a qualifying asset must take a substantial period of time to get ready for use or sale.

“[PAS 23] does not require the capitalization of borrowing costs relating to assets measured at fair value, and inventories that are manufactured or produced in large quantities on a repetitive basis, even if they take a substantial period of time to get ready for use or sale,” it said.

However, the SEC said there were issues raised by the real estate industry about following the IFRIC interpretations. It requested to defer the implementation “to thoroughly study the possible impact to the operation and financial reporting of real estate companies.”

Even as the SEC granted this request until Dec. 31, it said other real estate companies may already start full compliance with the requirements of the IFRIC interpretations.

Those that are delaying it to next year will be asked to provide in its “Notes to the Financial Statements” the accounting policies it applied, a discussion of the decision to defer implementation of the IFRIC interpretations, and a qualitative discussion on the changes in the financial statements should it have applied the IFRIC interpretations.

If deferring the implementation results in an accounting policy change, the circular said this would have to be accounted for as well and provided with the corresponding required quantitative disclosures.

Sought to comment on the circular, Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said the guidelines may help real estate firms post a higher bottomline.

“It’s positive for real estate companies since recognizing fewer cost means the net income will be overstated,” he said in a text message.

Treasury bills expected to fetch lower rates on liquidity, growth

TREASURY BILLS (T-bills) on offer on Monday will likely fetch lower rates on the back of strong liquidity and market expectations of another policy rate cut by the central bank amid a sluggish growth outlook.

The Bureau of the Treasury (BTr) wants to raise P30 billion via the T-bills today, broken down into P6 billion each for 91- and 182-day papers and P8 billion for the 364-day securities.

Two bond traders interviewed on Friday said they expect T-bill rates to continue to decline by around five to 10 basis points (bps).

“I think average yields will decrease by at least five bps from the last T-bills auction due to strong demand for short-term securities and concerns of economic slowdown due to the coronavirus. The BSP (Bangko Sentral ng Pilipinas) might also cut rates next quarter,” the first trader said in a Viber message

Last week, the government awarded P6 billion via the 91-day papers as planned at an average rate of 3.072%, down by 4.3 bps from the 3.115% quoted in the auction on Feb. 10.

The Treasury raised another P6 billion as programmed via the 182-day papers from total tenders amounting to P20.792 billion. The three-month papers yielded an average rate of 3.42%, which was 4.1 bps lower than the previous yield of 3.461%.

For the 364-day T-bills, the government accepted P8 billion as planned at an average rate of 3.836%, also lower by 7.2 bps from the 3.908% fetched previously.

For the second bond trader, T-bill rates may decline by 10 bps versus the yields fetched in the previous auction as the growth outlook for the first quarter dims on easing economic activity amid the coronavirus disease 2019 (COVID-19) outbreak.

“Less economic activity may affect growth in general, so in turn, might give leeway for BSP to cut rates again, that’s how the market (perceives it) right now,” the trader said by phone on Friday.

Earlier this month, BSP Governor Benjamin E. Diokno said another 25-bp rate cut is possible as early as the second quarter to cushion the impact of the virus outbreak on the economy. This follows the 25-bp cut announced at the BSP Monetary Board’s Feb. 6 policy meeting.

The National Economic and Development Authority (NEDA) has said the economy could lose 0.3% if the virus lasts until June, and further rise to 0.7% of gross domestic product (GDP) if it lingers until yearend.

S&P Global Ratings last week cut its growth outlook for the country to 6.1% for 2020 from the already downgraded 6.2% projection. Moody’s Investors’ Service also lowered its own estimate to 6.1% from the 6.2% it gave previously.

Both projections were below the government’s GDP growth target range of 6.5-7.5% for this year.

S&P sees the country to be among the countries to be the “least affected” by the outbreak, while Moody’s expects the country’s growth to take a hit from slower expansion seen in its Asian peers in the wake of the outbreak.

“That’s why people will continue to buy [securities]. Again, because of COVID-19, lower CPI (consumer price index) forecast, because of low demand from transportation [and] no bloated prices [of goods]. Also, we still have so much liquidity in the system so that’s pushing (T-bill) prices lower in general,” the second trader added.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via Treasury bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — B.M. Laforga

Iloilo angling for MICE market with more halal establishments

ILOILO CITY — The Iloilo business sector will start developing halal-friendly establishments and food manufacturing to support its campaign to capture a bigger share of meetings, incentives, conferences, and exhibitions (MICE).

“We are positioning the city to become a MICE destination and venturing into the halal market is something we can dive into if we want to become a serious MICE player in Asia,” Iloilo Business Club executive director Lea E. Lara told the media last week.

Ms. Lara said there are currently no halal-certified businesses in Iloilo City and establishments hosting major events with multi-cultural participants import the required products for catering.

One step, she said, is participating in the Malaysia International Halal Showcase (MIHAS) 2020 on April 1–4 in Kuala Lumpur.

Malaysian Embassy Trade Commissioner Siti Azlina visited the city last week and met with the business sector on Feb. 17 to promote MIHAS.

“Iloilo is the very first city that we visited for this. We also wanted to go in other provinces as well and Iloilo being one of the most developed cities in Western Visayas, we want to ensure that the business community here also knows about MIHAS,” Ms. Azlina said.

She noted that the global market for halal, which means products and services prepared in adherence to Islamic dietary rules, stood at $2.2 trillion in 2018.

“It is expected to grow by at least 5.2% year-on-year. It is expected to reach $3.4 trillion in 2040 and I think everybody wants to chip into that trillion-dollar market,” she said.

The Malaysian envoy said while the Philippine’s Department of Trade and Industry and Department of Science and Technology have been rolling out programs to help develop the halal industry, there are still very few certified establishments.

“I would urge small to medium enterprises to approach halal certifiers and know what requirements they need,” she said.

MIHAS 2020, organized by Malaysia’s trade promotion agency Malaysia External Trade Development Corp., will showcase various halal sectors including food and beverages, food technology, manufacturing, cosmetics, logistics, and tourism, among others.

“We are hoping we can touch base with more companies here in Iloilo to get them to join MIHAS,” Ms. Azlina said. — Emme Rose S. Santiagudo

GM shutters Thailand Chevrolet plant

By Kap Maceda Aguila

AMERICAN CAR brand General Motors (GM) has announced it will cease local manufacturing and subsequently withdraw the Chevrolet brand from Thailand “by the end of the year.” The news, primarily distressing to some 1,900 people employed by the automaker (with some 1,200 involved in the Rayong manufacturing plant alone) also has ramifications for the Philippine market. More on that later.

Anyway, Chinese car maker Great Wall Motors is said to be receiving the factory that GM will vacate within this year under a purchase agreement. In related news, Chevrolet cars in Thailand are reportedly going for as much as 50% less than their original tags. “Buyers have to make a deposit to reserve a car and then pay the balance on the day of delivery,” according to a report from Bangkok Post.

But, again, what is the implication for the Philippines and its legion of Chevrolet owners — and those who are looking at getting one? Those who don’t know it yet should be aware that our Chevy Colorado and Trailblazer units are sourced from the soon-to-be-shuttered Rayong assembly line. There’s an uncertainty — at least for now — about where The Covenant Car Company, Inc. (TCCCI), importer and distributor of the Detroit-headquartered bowtie brand, will get its vehicles, post closure.

To assuage doubts, TCCCI quickly reacted via a press statement which reads in part thus: “Following the difficult decision by GM to cease local manufacturing and withdraw the Chevrolet brand from sale in Thailand by the end of 2020, GM wishes to reaffirm its partnership with TCCCI and continued focus on growing the Chevrolet brand and business in the Philippines.”

GM Southeast Asia President Hector Villarreal “reconfirmed GM’s partnership with TCCCI in the Philippines and the company’s ongoing commitment to ensuring (that) regional customers’ after-sales needs are met.” He maintained, “The Philippines remains a very important market for GM and Chevrolet, and we will continue working with our valued partners at TCCCI to grow Chevrolet in the Philippines.”

Aside from Thailand, GM will also terminate the Chevrolet stint in Australia and New Zealand by next year in a bid to “transform its international operations, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, drive significant cost efficiencies and take action in markets that cannot earn an adequate return for its shareholders,” according to a GM release. It will also retire its Holden brand.

Tellingly, GM President Mark Reuss had said they “explored a range of options to continue Holden operations, but none could overcome the challenges of the investments needed for the highly fragmented right-hand-drive market, the economics to support growing the brand, and delivering an appropriate return on investment.”

We say tellingly because while the territories they’re retreating from are RHD, we in the Philippines are among LHD markets. TCCCI isn’t confirming yet, but we can hazard a guess that the Trailblazer might be sourced elsewhere such as South Korea and China (both RHD territories, by the way). The Colorado can come from a little farther away — Brazil. And guess on which side of the road they drive there.

It’s business as usual, said TCCCI SVP for Marketing Lyn Buena, in an interview with Velocity. Chevrolet Philippines promises to preserve the “ownership experience,” and looks forward to “no disruption” in the supply chain of vehicles and spare parts. “In fact, new opportunities might open because of the changes,” she said, without elaborating.

In a previous meeting with the members of the motoring media earlier in the month, TCCCI revealed that it was planning to unveil three new Chevrolet models in 2020. Ms. Buena now said “it might not be three anymore,” and that they’re looking at either Q3 or Q4 for the launches.

Other Tan-led firms may join MacroAsia in Sangley airport project

MACROASIA Corp. is looking to bring in Philippine Airlines (PAL) and other companies of Lucio C. Tan to the consortium that will build the Sangley Point International Airport as a way to secure capital backing.

“MacroAsia is part of a larger group. So if our partner agrees, we may bring in [those that are] part of the group. PAL is definitely going to be of use,” MacroAsia Corp. President and Chief Operating Officer Joseph T. Chua told reporters last week.

“Maybe PAL or other parts of our group can join. It’s up to my boss…. LT Group, [Inc.] is possible,” he added.

He said MacroAsia is not inclined to issue more shares to raise capital for the project.

“The capex (capital expenditure) is quite big because we don’t want to issue shares [as] it’s dilutive. If you look at our FS (financial statement), we’re pretty much under-leveraged, so we will go through debt bonds,” he said.

MacroAsia has teamed up with China Communications Construction Co. Ltd. for the $10-billion four-runway airport project in Cavite.

Mr. Tan’s MacroAsia had received on Feb. 14 the notice of selection and award for the first phase of the project.

Cavite Governor Juanito Victor C. Remulla has said the groundbreaking for the project will happen after the consortium signs the contract documents and completes all the requirements.

Mr. Chua said MacroAsia has yet to meet with its Chinese partner.

“Our partner did not come because of the coronavirus [outbreak]. It’s not like they don’t like it, they just could not make it. I think everybody could not meet,” he said, referring to the inauguration of the P486-million Sangley Airport development project of the Transportation department on Feb. 15.

The Cavite provincial government targets the airport to start fully operating by 2023, with partial operations to start a year earlier. The fourth runway will be opened after six years.

The first phase of the project, which will cost $4 billion, includes the construction of the Sangley connector road and bridge to connect the Kawit segment of the Manila-Cavite Expressway (CAVITEx) to the international airport.

Phase one also involves the construction of the airport’s first runway, which can accommodate 25 million passengers yearly, helping to decongest Ninoy Aquino International Airport in Manila.

The same consortium will work on the other two phases of the project, but there may be contract renegotiations.

The second phase, which will cost about $6 billion, involves the construction of two more runways, giving the airport an annual capacity of 75 million passengers.

The last phase is the expansion to four runways, bringing capacity to 130 million passengers. — Arjay L. Balinbin

Kuroda blames yen’s fall on strong dollar

RIYADH — Bank of Japan (BoJ) Governor Haruhiko Kuroda said on Saturday the yen’s recent declines were largely driven by a strong dollar, shrugging off some market views that the widening coronavirus epidemic is triggering an outflow of funds from Asia.

Mr. Kuroda also said he had not changed his view that Japan’s economy would continue to recover moderately, suggesting that he saw no immediate need for the BoJ to expand stimulus.

“If needed, we will take additional monetary easing steps without hesitation,” he told reporters upon arriving at a Group of 20 finance leaders’ gathering in Riyadh.

“But the situation is still uncertain. I don’t think our scenario projecting a moderate economic recovery has been derailed.”

The fallout from the coronavirus crisis has overshadowed the meeting of the world’s top economies kicking off on Saturday. Business disruptions in China are starting to spill over into the global economy, with parts shortages rippling through supply chains as far away as the US.

The yen bounced back on Friday after suffering its worst two-day performance since 2017 on worries about the health of Japan’s economy, which has been hit by supply-chain disruptions and a plunge in Chinese tourists caused by the virus outbreak.

Mr. Kuroda dismissed views held by some market players that the yen could be losing its status as a safe-haven currency.

“When you look at recent developments, the dollar is strengthening against the yen, the euro and various currencies including those in Asia,” Mr. Kuroda said.

“It’s true there is uncertainty over the coronavirus outbreak’s impact on the Chinese, Asian and global economies. But I don’t think there has been a fundamental change in the exchange-rate market.”

UPBEAT ON OUTLOOK
Japan’s economy shrank at its fastest pace in nearly six years in the December quarter, as soft global demand for Japanese cars and machinery and last year’s sales tax hike hurt domestic consumption and business spending.

Some analysts expect the economy to contract again in the current quarter, dashing the BoJ’s hope that an expected rebound in global growth in the middle of the year will underpin Japan’s fragile recovery.

Mr. Kuroda brushed aside voices of pessimism, saying that corporate capital expenditure remained firm and rising household income was underpinning domestic consumption of an array of goods and services.

Temporary factors that led to the October-December economic contraction, such as damage from a string of typhoons and the sales tax hike, will fade later this year, he said.

While the coronavirus outbreak was a fresh risk, other uncertainties that dragged on growth like the Sino-US trade tensions and Brexit were subsiding, Mr. Kuroda added.

“I don’t expect Japan’s economy to suffer a severe downturn,” he said.

Under a policy dubbed yield curve control, the BoJ caps long-term borrowing costs around zero to spur growth and achieve its elusive 2% inflation target.

Many BoJ policy makers are wary of ramping up stimulus unless the economy is hit by a severe shock due to their dwindling ammunition and the rising cost of prolonged easing such as the hit to commercial banks’ profits from ultra-low interest rates. — Reuters

China’s chicken chain comes unstuck amid chaos of virus measures

BEIJING — China’s chicken farmers had been looking forward to a bumper year.

But an unprecedented lockdown on people and goods to curb the coronavirus outbreak has disrupted the short but intense poultry lifecycle, threatening output of meat just as the world’s most populous country faces a massive pork shortfall.

China’s poultry production expanded by 12% last year to 22.39 million tonnes, after farmers sought to plug the gap from the pork shortage caused by African swine fever that ravaged the domestic hog herd.

About half of China’s chickens are raised by individual farmers involved in only one or two steps of the chicken chain, rather than integrated operations.

But that has made them vulnerable to the restrictions on movement and labor shortage resulting from Beijing’s efforts to curb the spread of a new coronavirus that has killed more than 2,200 people and infected around 75,000.

Many roads to villages across the country are still blocked, despite government efforts to ease problems for vital industries like food, hampering feed deliveries and movement of birds.

Some feed mills and slaughterhouses are still shut, while others are only starting to reopen after extended holidays and operating below capacity.

That has upset the flow of a supply chain that starts with the sale of day-old chicks by hatcheries to breeding farms, continues with distribution of broiler chickens to growers, and ends in the slaughter of fattened birds, all in less than a year.

“Every step needs to work at the same pace, otherwise there will be an imbalance,” said Pan Chenjun, senior analyst at Rabobank.

Pan Xingle, who raises chickens in Yi county in Hebei province for a slaughterhouse under contract, is still waiting to slaughter 16,000 birds that are already more than 50 days old.

Broilers used for cheap meat by fast-food chains and public canteens reach their maximum weight of 2.6 kg (5.7 lb) in around 40 days.

But the slaughterhouse has only just reopened after an extended holiday and farmers are queuing to kill their chickens.

“I was told I’ll need to wait for at least another 10 days,” said Pan.

That means Pan won’t be restocking his farm with new chicks for a while longer, hurting business for some of the 45 million breeders that raise ‘parent stock’ around China.

BELOW COST
Prices for the day-old-chicks sold by those breeders are currently below cost, ranging from 1.4 yuan to 2.5 yuan (about 20 to 35 US cents) per chick. The average price last year was 6.8 yuan.

Zhang Yanguang, manager of breeding farm Beijing Lvyan Poultry Centre located in a village in the northwest of the capital, said even if he could sell his chicks, roads to the village are still blocked, and trucks can neither go in nor out.

Worse, most of the slaughterhouses in the northeast and northwest of China are still shut so he can’t get rid of unwanted birds either.

“The whole market is closed down,” he said, estimating slaughter capacity is currently only running at around 30%.

If pressure on farms like Zhang’s continues past this month, it could force some out of business, said Ms. Pan, the analyst, hitting the hatcheries further upstream that raise grandparent stock to produce the breeders.

“Then the hatcheries will have to destroy day-old chicks or eggs,” she said.

With schools and many factories and restaurants still closed, lower production of chicken and eggs is not yet a problem. But once business returns, supplies could tighten, Ms. Pan said.

The effect is likely to be seen in the second and third quarters, an agriculture ministry official said earlier this week.

Similar challenges are facing egg farmers who are unable to get fresh eggs to market nor replace their old hens.

“We are selling our chicks really cheap, as little as 1.5 yuan instead of 4 yuan, so we’re losing money,” said Wang Lianzeng, chairman of Huayu Agricultural Science and Technology Co. Ltd., one of the country’s largest hatcheries for laying hens.

That could help farmers like Li Shunji from northern Shandong province who is selling his eggs at a loss because he no longer has access to big markets in Beijing and Tianjin.

But he still has worries. As he waited to take delivery of a new batch of baby chicks, he worried about transport disruption.

“They are so fragile at the moment. Moving them around might lead to their death, or reduce their productivity in the future. But I can’t do anything. I will just have to wait.” — Reuters

A look back on eras of opulence at Milan Fashion Week

MILAN Fashion Week launched its designs for Fall/Winter 2020-2021 this week, and we, of course, are very much impressed. BusinessWorldsaw the shows via livestreams, and we’re telling you the next season of luxe is very wearable, and very opulent. Our favorite designers took a glance at time periods that marked the world seconds before disaster — we hope these high priests and high priestesses of fashion aren’t saying anything more serious.

VERSACE
Versace’s show opened with black power suiting, paired with harsh pulled-back ponytails, evoking a sort of chic styling seen on glamorous spies. This collection is a bit staid compared to Donatella’s past offerings, exemplified in a plain black bag emblazoned with a single V.

The pieces combine bright luxury with decidedly street styles: take note of puffer jackets, tracksuits, and bomber jackets. They’re given a touch of luxury through volume and details and materials like shearling and leather. Speaking of volume, the look also incorporates a lot of lumpy knits on top, giving audiences a peek of silhouettes next season (lots of layering). Some excitement is achieved through zebra prints, florals, and of course, the rich baroque foliage prints we’ve come to associate with Versace.

We’re absolutely in love with a return to 90s Versace glam with slip dresses appearing as if slit with a razor, followed by deconstructed full-length deconstructed leather trenches (though one can only imagine the weight). By the way, Versace’s the first designer we’ve noticed this season who makes a case for gray: who knew that a shade we associate with concrete could be so interesting? Prints and rich fabric give dimension the drab neutral. In fact, it’s glittering version, silver, closed the show, seen on a little lamé dress worn by Kendall Jenner.

MOSCHINO
“Après moi, le déluge (After me, the flood),” this was apparently said by Madame de Pompadour, the mistress of the penultimate king of France’s Ancien Régime, Louis XV. Madame de Pompadour was said to have uttered the words as a portent of the changing times that lay ahead, which would culminate in the French Revolution — which, fortunately for her, would not live to see. Moschino’s confectionary treat for Milan Fashion Week evokes the 18th century before the revolution, resulting in rich outfits out of a fairy tale.

Think panniered skirts — everywhere! Check out a yellow panniered dress with a gold-embroidered leather jacket, a denim suit and a denim playsuit, both embroidered with gold, and several more of the panniers we mentioned. It’s seen on a biker leather jacket with a pearl belt spelling out the house’s name, a full-length khaki trench, or else paired with streetwear sweatshirts (who would’ve thought?). It’s a camp girlish fantasy complete with towering poufs. Oh yes, and we saw gray too, this time in a frock coat printed with monochrome rococo pastoral scenes.

A cream brocade pantsuit with golden embroidery appeared on the runway, and I wouldn’t be surprised if this is soon adopted by some princess or first lady somewhere. Then came another suit we loved: gold, with a portrait collar, and entirely wearable. A woman, for example, could pair either the jacket or the skirt with something more staid: who knew that this candy-box aesthetic could yield something so wearable?

We’re also in love with a collection made of blue-and-white china prints, evoking silent and refined teatime. This would go very well with the runway’s other offering: dresses meant to look like cakes. The brief couldn’t be simpler: tiered cakes in several pastel shades. I guess it also points to another pre-revolutionary figure, Marie Antoinette, the last Queen of France’s Ancien Régime, who is supposed to have said “Let them eat cake!” when she was told that the people had no bread (she didn’t; she was actually quite sweet, according to recent historical sources).

The show ended with two strong looks: a coat embroidered in silk roses worn by Gigi Hadid, and a long white bridal dress that somehow reminds one of a wedding cake-topper.

GUCCI
Gucci opened its show with the behind-the scenes take: literally. The runway lights open to the dressing room, encased in a clear shell, while models are made-up and dressed while wearing white terrycloth bathrobes. The dressers leave, leaving just the makeup tables lit. Those lights dim too, and then flash back on again, showing the models posing within the clear shell, which turns out to be a revolving platform. It wasn’t all gimmick: the clothes are actually stunning (thankfully not adopting that derelict look for the men’s line last month).

We kick off with start with a lace-edged top paired with a tiered and paneled ballgown skirt made with three colors of lace, and then a red and black coat with frog closures, paired with a checked skirt and edwardian-era boots, which tells the rest of the show’s references. We also liked a black tiered ballgown in tulle, scattered about with bows. Next we saw a sweet little pleated dress in mint green with a lace collar, paired with beautiful oxblood loafers, and would you believe it, knee-high Gucci socks (trendwatchers watch out).

Next came a romantic pink silk blouse with puffed sleeves, paired with baggy tweed pants. The same material is seen in various outfits.

We also live for a ladylike blue and black coat with a rounded collar. The schoolgirl aesthetic seems to point back to the previous menswear collection of the exploration of childhood and masculinity. Perhaps this time, it’s an exploration of childhood influences of femininity and how it shapes the future woman: how else would you explain a sheer babydoll dress paired with a leather harness?

More babydoll dresses follow, and Gucci Creative Director Alessandro Michele makes a statement by pairing softly feminine outfits, such as a blush-colored ruffled skirt with another harness. We see more than a bit of the Edwardian Era here, and I we guess the reference also played into this theme of innocence, being a very visual testament to the world lost by the two great wars. This is why we’re treated to a black velvet Edwardian-era gown with a square collar. We’ve noted the prevalence of gray in the different runways, and Gucci doesn’t lag behind: gray is amplified by different textures of wool in pinafores, suits, and coats. We also noted that the dressers helping the models earlier in the show were also dressed in identical grey pantsuits, and they were just as much a part of the show. — Joseph L. Garcia

1...9,8189,8199,820...14,215Page 9,819 of 14,215
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube