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IBPAP’s Jack Madrid joins Xurpas board

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LISTED TECHNOLOGY company Xurpas Inc. has appointed Information Technology and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jonathan Jack R. Madrid as an independent director.

The Xurpas board approved Mr. Madrid’s appointment on Feb. 11, the company said in a regulatory filing on Wednesday.

He will also serve as chairman of the audit and related-party transactions committee and as a member of the corporate governance committee.

Mr. Madrid has over 25 years of experience in strategy, digital innovation, and business transformation. He has held senior leadership roles at Citibank, Ayala Corp., Dell, Yahoo!, and MTV Asia, among others.

Established in 2001, Xurpas provides mobile marketing and advertising solutions integrated into consumer digital products and platforms for mobile users.

The company is also engaged in platform development and customization, system integration, mobile platform consultancy services, management of off-the-shelf applications, and social media-related services.

On Wednesday, Xurpas shares fell by 4.55% or P0.008 to P0.168 apiece. — Revin Mikhael D. Ochave

Yields on term deposits ease with BSP likely to cut key rate

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TERM DEPOSIT YIELDS went down on Wednesday ahead of a widely anticipated rate cut by the Bangko Sentral ng Pilipinas (BSP) at its first policy meeting of the year.

The BSP’s term deposit facility (TDF) attracted bids amounting to P241.191 billion on Wednesday, above the P230 billion on the auction block but lower than the P274.557 billion in bids seen a week ago for the same offer volume as the one-week tenor went undersubscribed. The total award for the week stood at P219.335 billion.

Broken down, tenders for the seven-day papers reached P111.375 billion, below the P120 billion auctioned off by the central bank and the P144.992 billion in bids seen for the same offer in the previous week. The BSP accepted tenders worth P109.335 billion.

Accepted yields ranged from 5.74% to 5.785%, a slightly lower band compared with the 5.75% to 5.789% seen a week ago. This caused the average rate of the one-week deposits to drop by 1.46 basis points (bps) to 5.7608% from 5.7754% previously.

Meanwhile, bids for the 14-day term deposits amounted to P129.816 billion, higher than the P110-billion offering and the P129.565 billion in tenders for the same amount placed on the auction block a week ago. The BSP made a full P110-billion award of the tenor.

Banks asked for yields ranging from 5.74% to 5.81%, also below the 5.79% to 5.835% margin recorded a week ago. With this, the average rate for the two-week deposits went down by 3.38 bps to 5.7805% from the 5.8143% logged in the prior week’s auction of 14-day papers.

The BSP has not auctioned off 28-day term deposits since October 2020 to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to bring market rates closer to the policy rate.

“The BSP TDF average auction yields were again slightly lower week on week a day before the widely expected local policy rate cut on the next BSP rate-setting meeting on Feb. 13,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A BusinessWorld poll conducted last week showed that 19 out of 20 analysts expect the Monetary Board to reduce the target reverse repurchase rate by 25 bps at its meeting on Thursday.

If realized, this would bring the benchmark rate to 5.5% from the current 5.75% and would mark the fourth straight meeting that the central bank slashed rates by 25 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. earlier said a rate cut is “on the table” this week.

He said they may slash benchmark interest rates by 50 bps this year as “policy insurance” against risks, with the cuts likely to be done in 25-bp increments each in the first and second half.

“Furthermore, the Trump administration signaled that it would prioritize policies that would help reduce the benchmark 10-year US Treasury yield instead of questioning Fed rate decisions, as partly supported by reductions in US government spending, increased US oil production that partly reduced global crude oil prices to one-month lows among three-year lows that could help support benign inflation,” Mr. Ricafort said.

This could support the US Federal Reserve’s policy easing, which could also be matched by the BSP moving forward, he added.

US Treasury Secretary Scott Bessent said in an interview with Fox Business last week that while President Donald J. Trump wants lower interest rates, he will not ask the Federal Reserve to cut rates, and that he and the president were intently focused on the 10-year Treasury yield, Reuters reported. He added that lower energy prices will help contain price pressures, while spending cuts will improve the fiscal outlook.

Benchmark 10-year Treasury yields have a direct impact on mortgage and credit card rates as well as consumer loans, while the Fed’s short-term interest rate impacts money markets and, only indirectly, borrowing costs.

But bond investors and analysts remained somewhat unconvinced by Mr. Bessent’s comments, as Mr. Trump’s trade and fiscal policies are expected to push long-term Treasury yields higher, despite lower energy prices and government spending cuts.

US Treasury yields firmed on Wednesday as investors assessed the latest US tariff salvo along with Federal Reserve Chair Jerome H. Powell’s signal of a patient path for rate cuts, Reuters reported.

Financial markets were largely biding time ahead of a reading on US consumer prices due later in the day which could guide the outlook for monetary policy there, particularly as policy makers weigh the potential inflationary impact of Mr. Trump’s tariffs on the economy.

Markets have been slowly scaling back expectations for Fed rate cuts this year, largely expecting the US central bank to hold rates steady at its March and May meetings.

Mr. Powell on Tuesday said “We are in a pretty good place with this economy,” noting that the Fed was in no hurry to make any further interest rate cuts, but stood ready to do so if inflation declines further or the job market weakens.

The Fed cut its benchmark interest rate by a full percentage point last year, but at its January meeting held rates steady in the 4.25% to 4.50% range. — Luisa Maria Jacinta C. Jocson with Reuters

Cemex PHL renames to Concreat Holdings Philippines

CEMEXHOLDINGSPHILIPPINES.COM

CEMEX HOLDINGS Philippines, Inc. (CHP) is changing its corporate name to Concreat Holdings Philippines, Inc. following a change in ownership.

The name change was approved during a special stockholders’ meeting on Wednesday, CHP said in a regulatory filing.

CHP said the name change was due to the change in control of the beneficial owner of its principal stockholder, Cemex Asian South East Corp. (CASEC).

The cement producer also announced an increase in the number of board directors to nine from eight to expand shareholder representation on the company’s board.

In December last year, Consunji-led companies DMCI Holdings, Inc., Semirara Mining and Power Corp. (SMPC), and Dacon Corp. finalized the purchase of CASEC, which owned 89.86% of CHP.

The $272-million deal marked the Consunji group’s entry into the cement manufacturing business.

DMCI acquired a 51% effective stake in CHP, while Dacon Corp. and SMPC took 29% and 10%, respectively, at the financial close of the transaction.

Last month, CHP President and Chief Executive Officer Herbert M. Consunji said the company is expected to turn profitable in three years.

He added that the cement manufacturer plans to implement operational efficiencies to strengthen its financial performance.

“It cannot be immediate because we are coming from a net loss,” Mr. Consunji said.

For the first nine months, CHP widened its net loss by 131% to P2.87 billion due to lower cement prices, higher financial expenses, and increased income tax expenses.

Revenue declined by 9.4% to P12.21 billion due to intense industry competition and lower cement prices.

CHP shares fell by 0.67% or one centavo to P1.48 apiece on Wednesday. — Revin Mikhael D. Ochave

PHL insurance industry books higher premiums

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THE INSURANCE INDUSTRY saw its combined premium income rise by 12.81% year on year in 2024, driven by the life sector, the Insurance Commission (IC) said on Wednesday.

The combined premium income of life and non-life insurers and mutual benefit associations (MBAs) climbed to P440.39 billion in 2024 from P390.39 billion the year prior, according to IC data based on the submissions of 128 out of 137 licensed insurers and MBAs.

The industry’s net income grew by 15.88% year on year to P56.29 billion last year from P48.58 billion.

Total assets increased by 6.43% to P2.46 trillion, while invested assets climbed by 7.23% to P2.2 trillion. Meanwhile, liabilities rose by 7.09% to P1.98 trillion.

Benefit payouts increased by 18.97% year on year to P160.33 billion from P134.76 billion.

Insurance penetration — or premium volume as a share of gross domestic product (GDP), which shows the contribution of the industry to the economy — inched up to 1.67% at end-2024 from 1.61% a year prior.

“This is explained by the faster growth of the insurance premiums vis-à-vis the 8.84%growth in the GDP (in current prices), which underscores stronger expansion within the insurance and MBA sectors as of Q4 2024,” Insurance Commissioner Reynaldo A. Regalado said in a statement.

Insurance density — or the amount of premium per capita, which shows the average spending of each individual on insurance — increased by 12.58% to P3,892.77 last year from P3,457.84 in 2023, as the increase in insurance premiums outpaced the population’s growth.

LIFE INSURANCE
The life insurance sector’s premium income grew by 13.56% to P352.02 billion in 2024 from P309.99 billion, IC data based on submissions of 31 out of 35 licensed companies showed. Variable life premiums grew by 12.21% to P229.81 billion, while traditional life premiums increased by 16.17% to P122.204 billion.

“The increase can be attributed to the good performance shown by the single premiums of variable life insurance, which reported a significant increase of 40.33%… Of the total life premiums, 65.28% came from variable life insurance, while the remaining 34.72% came from traditional life insurance,” Mr. Regalado said.

By line of business, premium income from variable life products (P229.81 billion) made up the bulk of the sector’s total, followed by ordinary policies (P72.87 billion), group and industrial plans (P30.16 billion), health products (P16.88 billion), and accident products (P2.29 billion).

Meanwhile, life insurers’ new business annual premium equivalent increased by 9.57% to P67.49 billion last year.

The sector’s combined net income rose by 19.63% year on year to P40.23 billion.

This came even as the industry saw a 22.06% increase in total life benefits paid to P123.49 billion.

Life insurance firms’ assets expanded by 7.3% to P1.92 trillion at end-2024, while liabilities grew by 8.2% to P1.64 trillion. The sector’s net worth also went up by 2.33% to P278.31 billion.

Total paid-up capital inched down by 0.93% to P32.47 billion in 2024 from P32.78 billion, which the IC said was due to the decrease in the number of companies with submissions. The 2023 data was based on submissions from 33 out of 34 licensed firms.

NONLIFE INSURANCE
On the other hand, the combined net premiums written (NPW) by nonlife insurers grew by 10.49% year on year to P71.84 billion in 2024, IC data based on submissions of 55 out of 59 licensed firms showed.

“The motor car line of business, which is the major contributor to total NPW per line of business with a 40.17% share, rose modestly by 6.28% during this reporting period to P28.86 billion,” Mr. Regalado said. This was followed by the fire insurance line, which contributed P11.95 billion or 16.64% to total net premiums written.

Premiums earned went up by 6.58% year on year to P67.79 billion, while gross premiums written climbed by 9.62% to P134.12 billion.

Meanwhile, the sector’s combined net income inched down by 2.63% to P8.89 billion from P9.13 billion as underwriting expenses grew faster than underwriting income, the IC said.

“Despite this, the commission still views that the nonlife sector exhibited strength and continued financial growth, with a solid performance in key areas like motor car insurance and high investment returns. Overall, the nonlife market remains stable and improving, indicating positive long-term prospects,” Mr. Regalado said.

The nonlife sector’s assets inched up by 0.73% to P374.49 billion at end-2024, with total invested assets increasing by 4.48% to P185 billion.

Its aggregate net worth went up by 3.35% to P134.3 billion.

Meanwhile, total liabilities dropped 0.68% to P240.2 billion. Combined losses incurred by the sector rose by 10.15% to P29.08 billion last year.

Paid-up capital inched down by 1.94% to P50 billion.

MUTUAL BENEFIT ASSOCIATIONS
Lastly, MBAs’ total premiums or contributions went up by 7.49% to P16.54 billion in 2024 from P15.39 billion, based on data from the submissions of 42 out of 43 licensed companies.

“All performance indicators for MBAs increased year on year between Q4 2023 and Q4 2024,” Mr. Regalado noted.

MBAs’ total assets grew by 10.10% year on year to P163.58 billion at end-2024, with total invested assets increasing by 12.62% to P152.54 billion.

Their combined total fund balance rose by 11.16% to P67.27 billion last year, while their guaranty fund went up by 4.61% to P1.296 billion.

The MBA sector’s net surplus increased by 23.24% to P7.16 billion in 2024 from P5.81 billion the year prior.

Meanwhile, its total liabilities grew by 9.37% to P96.3 billion.

Total benefit payments and expenses went up by 7.8% to P7.75 billion in 2024 from P7.19 billion in 2023. — A.M.C. Sy

Chef-restaurateur-inspiration Margarita Forés, 65, passes away

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MARGARITA “GAITA” ARANETA FORÉS, hailed as Asia’s Best Female Chef in 2016, has died. According to reports, Ms. Forés was found unresponsive on Feb. 11 in a hotel room in Hong Kong — a city she loved.

“I went to Hong Kong for the first time when I was eight,” said Ms. Forés in a previous story in BusinessWorld. “When I lived there and worked there in 1982, that was the first time, actually, that I started to cook in a kitchen, a few years before going to Italy. That’s because Hong Kong is so inspiring.”

The news of her passing was confirmed by her son, Amado Forés, in an Instagram post. He said, “Dear Friends and Family, It is with a heavy heart that I share the sudden passing of my Mom, Margarita A. Forés. Our family is mourning this unexpected loss, and we kindly ask for your prayers during this time, We will be able to share more in due time. With gratitude, Amado.”

Ms. Forés, daughter of socialite Maria Lourdes “Baby” Araneta Forés (died 2023) and surgeon and Makati Medical Center co-founder Raul Forés (died 2019), had several doors open for her. She could have had the high-profile life of her mother, whose parents built the Araneta Center (now “City”) in Cubao, Quezon City, or even politics, as her maternal cousins Gerardo “Dinggoy”  Roxas and Manuel “Mar” Araneta Roxas II chose. Instead, Ms. Forés combined both high living and hard work into a veritable restaurant empire, starting with 1997’s Cibo. From there, Ms. Forés opened Grace Park, Lusso, and The Loggia; as well as well-loved and missed ventures like Café Bola and Pepato. She had been slated to open Margarita at Ayala Triangle Gardens this year.

Ms. Forés led a charmed life as the granddaughter of J. Amado Araneta, builder of the Araneta Coliseum, what was once one of Asia’s largest buildings in the 1960s. There is a photograph of her, sister Veana, and cousin Ria Roxas-Ojeda with singer Pat Boone (who performed in the family’s coliseum), who signed it with their names, and “the 3 princesses — With love, Pat.”

Her aunt, Judith Araneta Roxas, and her uncle, an opposition senator, Gerardo Roxas (son of former Philippine President Manuel Roxas), were some of the casualties of the Plaza Miranda bombing, an act of terrorism that served as one of the catalysts to the declaration of Martial Law. When Martial Law was declared in 1972 by dictator Ferdinand Marcos, the Araneta family fled en masse to the United States. To be fair, they settled quite comfortably, with residences in New York’s Park Avenue and in Westchester County.

There, Ms. Forés accompanied her formidable mother to parties in the legendary Studio 54 nightclub, and lived as well as they could while in exile. She even tried her hand at fashion, through her mother’s contacts at Valentino, and in the 1980s, worked in finance in Hong Kong.

Her cooking journey began in 1986, learning how to cook Italian food in Italy, through the guidance of three women: Jo Bettoja in Rome, Masha Innocenti in Florence, and Ada Parasiliti in Milan, according to a story from BusinessWorld. Returning to the Philippines, Ms. Forés was invited by the Hyatt Regency hotel to hold a food festival. Her cooking skills became apparent, and another invitation followed later that year. In a piece that she herself wrote in The Philippine Star, she said, “That was my first experience in a hotel kitchen and, adding that to having gotten my hands dirty at my uncle Jorge Araneta’s Trattoria Uno in Ali Mall some months before, I was blessed with the opportunity to learn more in a professional setting.”

She later opened a catering business. “I was in my mid-20s, and those were still party days for me. It took a while — nearly three years — to wake up to the fact that if I really wanted to be in the food business and build a profession out of it, I needed to really get my act together,” she said in a BusinessWorld story.

She opened her first restaurant, Cibo, in 1997 in Glorietta. “The only space available at Glorietta 3 was the open space fronting the closed entranceway to the Landmark department store. In hindsight, that open space concept with a tiny kitchen that the forward-thinking Ayala Malls leasing team took a great risk on, was the best place for Cibo to start! Although they warned me that I may have had to move to a different space in a year, with the forthcoming bridgeway opening, I am glad I did it!,” she said in The Philippine Star story. In doing so, she opened the Filipino palate to Italian cuisine, standing her ground to serve Italian food as they do in Italy.

Ms. Forés, skilled as she was in Italian cuisine, really spread her wings and gained international fame with her own exploration of her roots. Grace Park, for example, had comfort food based on the culinary memories of the family’s former ancestral home in Caloocan. She served her elevated vision of Filipino food in Malacañang, and, in 2015, along with fellow chef Myrna Segismundo, she spoke at the prestigious culinary conference Madrid Fusion in Spain. Their presence that year marked the first time Filipinos had participated in the event. The following year, the two women worked together with the organizers of Madrid Fusion to bring it here, resulting in Madrid Fusion Manila 2016 and 2017.

In 2016, she was hailed as Asia’s Best Female Chef by Asia’s 50 Best Restaurants. In a video, she said when she found out about the news, she said with some well-deserved glee, “I feel like Miss Universe!”

Since the news of her death broke, various culinarians and fans have released messages of condolence, grief, and loss.

Myke “Tatung” Sarthou, winner of several Gourmand World Cookbook Awards, said in a post, “The culinary world is mourning the loss of a true icon, Gaita Forés. The passionate advocate of Filipino cuisine and an inspiration to so many leaves behind a legacy that will continue to shape the industry for generations. Gaita’s artistry, dedication, and love for food were unparalleled. Rest in peace, Gaita. You are loved and will always be remembered.” In a message to BusinessWorld, he said she was “such a kind and vibrant soul. Tumatawa lang kami [we would just laugh] every time we see each other… hindi lang siya icon [she was not just an icon]; she’s a pillar. Philippine gastronomy won’t be the same.”

Ms. Forés’ cultural dominance in a field often led by men also inspired other women: Waya Araos-Wijangco, chef and restaurateur behind Gourmet Gypsy by Chef Waya, wrote a Facebook post about her own memories of dining at Cibo, and then said, “What a thrill it was for me when Gaita Fores ate at my Baguio restaurant in our first year. And reading through the menu she said that she liked that it was simple ingredients, presented well. Thank you Gaita, for inspiring women chefs in the Philippines to do better, for paving the way to a global stage, and for exposing me to the world of cooking and allowing me to dream bigger than I could ever imagine. Rest in peace.” In the same vein, content creator Pola del Monte (@misschiefeditor) said in a post, “We just lost a strong female Filipina leader who used her privilege to do good… what a loss this is, because there are only a few female chefs, and a few female leaders, that our girls can look up to.”

Her own restaurant group, Cibo, also penned a tribute. In a Facebook post, it said, “We honor the life and legacy of our founder and guiding light, Chef Margarita Forés. Her warmth, creativity, and unwavering spirit will continue to inspire us all. Thank you for sharing your heart with us, Chef Margarita. You will always be CIBO.”

Ms. Forés, despite a life lived to the fullest, leaves a void for all the work that is yet to be done, and all that she could yet have done.

She is survived by her son Amado, himself in the restaurant business his mother dominated; and her siblings Veana (Victoria), Bledes (Mercedes), Joe (Jose), and Jorge (Oye). — Joseph L. Garcia

Powell, quizzed about trade, Musk, and bank safety, says economy is fine

US Federal Reserve Chair Jerome H. Powell — REUTERS

WASHINGTON — US Federal Reserve Chair Jerome H. Powell, in his first appearance before Congress since the inauguration, vouched for the strength of the economy President Donald J. Trump inherited even as he deferred on questions about tariffs, Elon Musk’s role in government, bank account safety, and other issues reflecting the unsettled nature of the administration’s first weeks.

Mr. Powell’s twice-a-year trips to Capitol Hill often go far beyond the ostensible purpose of discussing the state of the economy and monetary policy — issues where the Fed chair had much to say, almost all of it good given a 4% unemployment rate, inflation nearing the Fed’s 2% target, and ongoing growth.

“We are in a pretty good place with this economy,” Mr. Powell said, noting that the Fed was in no hurry to make any further interest rate cuts, but stood ready to do so if inflation declines further or the job market weakens.

But in over two hours before the Senate Banking Committee, under its new chair South Carolina Republican Tim Scott, the Fed’s core mission of maintaining stable prices and maximum employment seemed secondary.

Senators questioned him about the fate of a separate agency, the Consumer Financial Protection Bureau (CFPB), that Mr. Trump wants to limit or eliminate; they asked whether Mr. Musk’s team had tried to access the Fed’s systems and whether bank accounts were still safe given Mr. Musk’s involvement at the US Treasury; they grilled him on possible steps to ease bank regulation.

Most notably they quizzed him on whether Mr. Trump’s imposition of new import taxes on different countries and commodities might lead to higher inflation, an issue the Fed is concerned about and monitoring but which policy makers do not want to be seen as judging.

“The standard case for free trade… logically still makes sense,” Mr. Powell said at the hearing. But “it’s not the Fed’s job to make or comment on tariff policy… Ours is to try to react to it in a thoughtful, sensible way.”

“It is tariffs, immigration, fiscal and regulatory policy…Those will all go into a mix and we will try to make sense of it,” Powell said.

SHIFTING LANDSCAPE
It may take time. Since Trump took office, he has imposed and then delayed extensive import taxes against major trading partners Mexico and Canada, leaving Fed policy makers still with little tangible to analyze or model.

Higher inflation “is a possible outcome which will depend very much on specific facts” of what goods are taxed and by how much, he said. “In some cases it does not reach the consumer much, in some cases it does.”

Kathy Bostjancic, chief economist at Nationwide, said because of the shifting landscape around so much of the economy, she now expects the Fed to cut rates just once this year, and not until the second half.

“Fed officials want to assess the evolution of inflation and the labor market, especially considering large uncertainties surrounding prospective macroeconomic policy changes from the Trump administration regarding tariffs, immigration, regulations and fiscal policy,” she wrote after Mr. Powell’s appearance.

Much of the rest of the hearing captured the disruption Washington felt in the first weeks of the Trump administration.

Mr. Powell ended up explaining, for example, the otherwise mechanical plumbing of the US government’s process for paying bills because a team of people allied with Mr. Musk had gotten access to the US Treasury system for approving payments — orders that typically run from agencies, through Treasury, then go to the Fed for payment. An attempted freeze on some payments is currently being litigated in federal court.

He was asked repeatedly about the CFPB, an agency established to oversee major banks’ compliance with consumer protection laws which, while funded by proceeds from the Fed, is separate from it.

From the possible fiscal shock of a government spending freeze to the limits a strict immigration policy may put on the labor force and the fallout from a trade war, the new administration has added a fresh dose of uncertainty to the Fed’s mission of keeping employment as high as possible with inflation held to 2% annually.

That has added to the central bank’s reluctance to commit to further interest rate cuts, something that was already emerging after progress on inflation stalled last year about half a percentage point above the Fed’s target.

New data on consumer prices were set be released on Wednesday morning, ahead of a 10 a.m. EST (1500 GMT) appearance by Mr. Powell before the House Financial Services Committee.

NO NEED TO HURRY
In his prepared remarks to the committee, Mr. Powell said “the economy is strong overall and has made significant progress toward our goals over the past two years,” with a 4% jobless rate considered around the level of full employment, and inflation lower though still above target.

The Fed cut its benchmark interest rate by a full percentage point last year, but at its January meeting held rates steady in the 4.25% to 4.5% range.

“We do not need to be in a hurry to adjust our policy stance. We know that reducing policy restraint too fast or too much could hinder progress on inflation,” Mr. Powell said on Tuesday, reiterating language used after the Fed’s January meeting that further cuts would hinge on inflation declining or a clear weakening of the job market.

Investors still expect the Fed to cut rates later this year, but odds have shifted towards a single quarter point reduction.

“We are attentive to the risks to both sides of our dual mandate,” Mr. Powell said in reference to the Fed’s congressionally established goals of stable inflation and maximum employment. “Policy is well positioned to deal with the risks and uncertainties that we face.” — Reuters

DHL Express expands EV fleet in Philippines

DHL.COM

DHL EXPRESS has added 22 new electric vehicles (EVs) to its fleet, increasing the share of EVs to 35% of its total vehicles.

“The expansion of electric vehicles into the DHL Express fleet plays an important role in reducing the environmental impact of our business processes as part of our commitment to one of our Group’s four bottom lines, green logistics of choice,” DHL Express Philippines Country Manager Nigel Lockett said in a media release on Wednesday.

With the latest addition, DHL Express now operates approximately 70 EVs, representing 35% of its total fleet.

The company aims to increase the share of EVs to 60% of its global pickup and delivery fleet by 2030.

It noted that it has been integrating EVs into its Philippine network since 2021.

DHL Express has committed to achieving net-zero greenhouse gas emissions by 2050. In addition to deploying EVs, the company has launched a service that allows customers to reduce greenhouse gas emissions by opting for sustainable aviation fuel for their shipments.

Net zero refers to reducing greenhouse gas emissions to as close to zero as possible while offsetting any remaining emissions.

DHL Express has previously announced plans to further expand its operations in the Philippines.

In 2023, the company opened a 4,768-square-meter service center in Pasig City to meet increasing delivery demand. The facility includes three warehouses, a customer retail outlet, and material handling equipment. — Ashley Erika O. Jose

All expectations exceeded at World Kitchens

STICKY SWEET and Chef Jessie are two of the restaurants whose dishes are available at World Kitchens.

By Joseph L. Garcia, Senior Reporter

A WEEK before its grand opening on Feb. 12, BusinessWorld was invited to dine at World Kitchens. The signs had been up since last year, and its huge space at the Araneta City’s newest mall, Gateway Mall 2, may be a bit overwhelming, and might tempt fate. The whole of World Kitchens takes up 2,500 square meters of space, and seats about 700. Bearing these numbers in mind, we went to World Kitchens for a tasting with a little bit of trepidation. No matter: we left more than satisfied, and raring to come back (with family and friends). 

The restaurant should be in good hands: it’s a concept and partnership by the Araneta Group and Singapore’s food and beverage guru Andrew Tan Hock Lai, who has served Lee Kuan Yew, members of Britain’s royal family, former US Vice-President Al Gore, and Japan’s Emperor and Empress. At its most earnest, it’s a high-class food court with 15 restaurants from all over the world — but that description doesn’t quite capture it.

The 15 restaurants are as follows: Chef Fung  (by Fung Chi Keung, Cantonese cuisine), Chef Jessie (by Jessie Sincioco, Filipino food and then some), Sticky Sweet (Asian desserts), Unagi Yukimitsu (Masaki Watanabe, Japanese rice bowls, especially eel), Kuro Maguro (bluefin tuna sashimi), HK Ma’s Bistro (Steve Ma, modern Hong Kong cuisine), The You No Men (Takahiro Fujita, Japanese noodles), Asador de Manila (Gale Tan Sun, Spanish roasts), Dario Pizza & More (Dario Bonaccorso, Italian cuisine), Shinshima (Hoshiba Fumihiko, teppanyaki grilling), Prana (Rajan Veeranan, Indian cuisine), and Santai Singapore (Aaron Shen, cocktails and wine). Think of all those arguments about where the family wants to eat: it all ends here.

BusinessWorld felt a touch of technophobia with the digital menus and the QR Code ordering system, but after the initial fluster, the dining experience went smoothly. The servers were attentive to the wrong buttons pressed and the general confusion with the internet connection, so that went by almost unnoticed. During our visit last week, some of the stalls were not yet operational and were receiving last-minute touches, but they’re all slated to be operational by the Feb. 12 opening.

The dishes arrived quite swiftly (our ramen from You No Men arrived in five minutes). The broth was almost opaque, almost syrupy in its viscosity and the noodles had a smell that suggested their fresh make. One sip from the bowl, and we were sold.

Next came the tuna rolls from Kuro Maguro — lacy, delicate, and almost buttery in its softness. The Master Stock Chicken with rice from HK Ma’s Bistro was very moist and juicy. We ended the meal with an entire Pizza Bomba (tomato sauce, mozzarella, prosciutto, arugula, and Parmesan cheese). The pizza was smoky and crispy in the right places, while sufficiently chewy and soft where you want it.

All these arrived and were polished off in 45 minutes (we do count that on soft opening basis, there were only us and three other tables to serve; we can’t promise the same speed after the grand opening).

This feast was had for a little above P3,000 — a positive bargain, since we must have eaten enough for a family of four. We do recommend this place to end all fights on where to eat, and an excellent culinary experience for not a very princely sum.

World Kitchens is open daily at Level 4 of Gateway Mall 2. Learn more about World Kitchens at https://worldkitchens.com.ph/.

CEB launches direct Iloilo-Bangkok flights

PHILSTAR FILE PHOTO

CEBU PACIFIC is expanding its Iloilo hub with the launch of direct flights between Iloilo and Bangkok, Thailand, the budget carrier said on Wednesday.

Cebu Pacific, operated by Cebu Air, Inc., will offer direct flights between Iloilo and Bangkok-Don Mueang starting March 31. The new route will operate three times weekly — every Monday, Wednesday, and Friday, the company said in a statement.

The Iloilo-Bangkok service will be Cebu Pacific’s third international route from Iloilo, joining direct flights to Hong Kong and Singapore.

“Strengthening our Iloilo hub allows us to connect even more passengers from the Western Visayas region to exciting destinations across our international network,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said.

The airline will offer a “piso fare” seat sale for Iloilo-Bangkok flights from Feb. 12 to 16, covering travel dates from March 31 to Oct. 25.

The promotional base fare starts at P1 for a one-way ticket, exclusive of fees and surcharges.

This year, Cebu Pacific aims to increase its monthly seat capacity to 2.9 million by strengthening its hubs in Iloilo, Davao, Cebu, and Clark.

Currently, the airline operates flights to 37 domestic and 26 international destinations across Asia, Australia, and the Middle East.

At the local bourse on Wednesday, shares of Cebu Air closed unchanged at P28.50 apiece.— Ashley Erika O. Jose

Google rolls out enhanced Play Protect service in PHL

YVES GONZALEZ, head of government affairs and public policy at Google Philippines, discussed the enhanced Google Play Protect service at the launch event on Feb. 11.

GOOGLE has launched in the Philippines its enhanced Play Protect feature, which blocks the download and installation attempts of suspicious apps or malware to help protect users from fraud.

“In the Philippines, we all know that financial frauds and scams are a serious and growing problem, and one of the key culprits is downloading sideloaded apps,” Yves Gonzalez, Google Philippines public policy and government relations head, said at a media briefing on Feb.  11 (Tuesday).

Feb. 11 marked the global celebration of Safer Internet Day this year.

Many sideloaded apps, which come from unofficial sources online, are often disguised as harmless quick loan apps or instant reward games, Mr. Gonzalez said.

“Based on what we are seeing especially in markets like the Philippines, bad actors use sideloading to try to get into the phones of the users,” he added.

The Enhanced Google Play Protect feature provides real-time scanning and blocks install attempts of sideloaded apps that could steal users’ money or personal information, Google Philippines said. It was earlier rolled out in India, Thailand, Singapore, Brazil, and Vietnam.

“This enhancement is designed to address malicious apps that leverage various methods such as AI to avoid detection,” it said.

By default, Enhanced Google Play Protect is already switched on in every Android device in the Philippines.

As of Feb. 10, Enhanced Google Play Protect has blocked over 3.2 million high-risk install attempts in the Philippine market, Google Philippines said.

“If each of these blocked installs resulted in just a single peso lost due to security breach, that’s already P3.2 million saved,” Mr. Gonzalez said.

The enhanced service is expected to protect the older age bracket as well as younger users who are seeking extra income that are likely to fall prey to phishing links, Mr. Gonzalez told BusinessWorld.

“Products play an essential role in protecting people from security threats and fraud. Launching these new protections will help us stay ahead of new attacks,” he said. — Beatriz Marie D. Cruz

5 lessons from Trump’s tariff misadventure

CLEAVON LITTLE in Mel Brooks Western farce Blazing Saddles

IN THE CLASSIC Mel Brooks Western farce Blazing Saddles, Cleavon Little’s character faces a mob of townspeople angry at his appointment as sheriff of Rock Ridge. Thinking fast with a hysterical display of split personality, Little’s character — Sheriff Bart — puts a gun to his head and holds himself “hostage” until the befuddled townsfolk disarm, allowing him to slip away.

For two weeks, President Donald Trump held the economic equivalent of holding himself “hostage” by threatening 25% tariffs on Canada and Mexico and 10% tariffs on China. And then suddenly, most were gone in a blaze. The White House paused the two larger proposals on Canada and Mexico. The tariffs on China went into effect, but talks are apparently just over the horizon.

What did we learn?

What has gone into effect is small yet regressive… 

The full three-country tariff package Trump initially proposed would have cost the average American household $1,250 a year and added almost a percentage point to prices, according to analysis from the nonpartisan Budget Lab at Yale. Presumably, if negotiations with Canada and Mexico fail in a month, the full slate would be back on the table. But for now what actually went into effect was more modest. The 10% China tariffs on their own will cost $223 per household annually and will add between 0.1 to 0.2% to prices

Not every household experiences the average hit the same. In the short-run, tariffs are regressive taxes, meaning they hurt working-class and middle-income families more than higher-income families, since in general the lower your income the greater the share of your income you consume and the larger portion of your budget you devote to imports. The consumer loss from the 10% China tariffs next year for households in the second decile by income are more than twice as much as for the top decile.

…but more tariffs are coming.

Markets should not take comfort from the swiftness of the pause in the Canada and Mexico tariffs. President Trump has set ambitious goals for tariff revenue: Both to help offset the cost of extending the Tax Cuts and Jobs Act of 2017 (TCJA) that expires later this year and as a replacement for some income tax revenue.

But the 10% China tariffs only raise $400 billion over 10 years conventionally scored, and even less when accounting for the dynamic effects of the economic damage they do. All told, that’s less than a tenth of the cost of extending the TCJA and could only replace 1% of expected income tax revenues over the next 10 years. To make serious headway on either goal, the Trump administration will need to come up with more tariff proposals. What’s uncertain is whether the additional revenue will come from tariffs on countries we’ve already dealt with (Canada, Mexico, China) or others (the European Union).

Other countries will retaliate, though not necessarily in kind. 

It was uncertain whether and to what extent other countries might retaliate against US tariffs. Every affected country, including the US, would be poorer because of President Trump’s tariffs. But Canada and Mexico fare substantially worse, with the damage exacerbated when they broadly retaliate tit-for-tat against the US. The Budget Lab’s modeling shows Canada’s long-run economy is 1.3% smaller without retaliation and 5% smaller with retaliation.

Retaliation is also an important consideration from the US perspective because it mitigates the dollar’s appreciation, which would otherwise help blunt the tariff cost for American consumers but hurt exporters.

As it turned out, all three countries had lists of retaliatory tariffs. So while the US tariffs were broad-based on all imports, the planned retaliatory tariffs from Mexico and Canada and the actual response from China were far more surgical and fell short of covering all US exports. This may be because Canada, Mexico, and China wanted to only gradually escalate tariffs and give trade talks a chance to work. The choices of products also suggest a strategy of inflicting maximum pain on the US while minimizing pain to consumers back home. The fact that the retaliation was not as broad as the US action suggests that we can expect some net dollar appreciation from future tariff tussles.

So far, there’s no broader strategy around containing dollar strength. 

Some had wondered whether the appointments of people knowledgeable of currency markets — people such as Scott Bessent as US Treasury Secretary and Stephen Miran at the White House’s Council of Economic Advisors — might have signaled the administration had a careful strategy to temper gains in the dollar that might come from implementing tariffs. After all, the stronger dollar resulting from a tariff hurts American manufacturers, which runs counter to President Trump’s agenda. No such coordinated strategy was on display last week.

The Trump administration is sensitive to markets. 

The White House backed down from its Canada and Mexico tariffs while accepting a few new concessions from the two countries. Mexico President Claudia Sheinbaum primarily announced border measures the country had already undertaken in prior administrations. Sheinbaum even got the US to help stem the flow of weapons into Mexico. Canada Prime Minister Justin Trudeau avoided President Trump’s tariffs almost entirely by reiterating border funding announcements his government had made in December.

Why did the White House back down so easily? The likeliest explanation is the reaction in financial markets. The benchmark S&P 500 Index was down almost 2% intraday last Monday, with automaker stocks falling even more and expectations of even more losses. The decision to pause tariffs during the day did partially reverse the declines, keeping the day’s loss to a manageable 0.8%. The S&P 500 almost fully recovered on Tuesday.

In one sense, that the White House heeded the reaction in markets and sought a face-saving way out of a crisis of its own making is reassuring. But remember No. 2 above: The administration is likely to try again for higher tariffs despite the market warnings. That means, once again, perhaps soon, the country will have a loaded economic gun to its own head. As the citizens of Rock Ridge might say, “Won’t somebody help that poor man?”

BLOOMBERG OPINION

Atome Financial secures BlackRock, InnoVen in $80-million credit facility

SINGAPORE — Singapore-based financial technology firm Atome Financial said on Wednesday it had secured a private credit fund managed by asset manager BlackRock and venture debt provider InnoVen Capital in an $80-million private credit facility.

Atome Financial first announced the three-year senior term loan facility including from EvolutionX, a debt financier jointly set up by Singaporean bank DBS and the country’s state investor Temasek, in June last year.

The facility will help grow the company’s products, partnerships and regional portfolio in Southeast Asia markets including Singapore, Malaysia, the Philippines and Indonesia, Andy Tan, Atome Financial’s chief commercial officer, said in a statement.

Atome Financial added in the statement that it had achieved full-year profitability in 2024, including revenue growth of 45% year on year to $280 million, and expected the positive momentum to continue into 2025. — Reuters