Why I'm In Favor of Jeepney Modernization (and How FDI Can Help)

Updated: December 23, 2023

I'm amazed at how I'm surrounded by people overly resistant to change. I was reminded of a former house helper (who also loved the phrase "If it's bitter then just add sugar", read the related article here), who was overly resistant to change. She would always get mad whenever the iron, the light outlet, etc. were changed to better ones. I'm afraid the same can be true about jeepney modernization. There are some people (and even "thought leaders") who are still saying, "No to jeepney modernization! Think of the drivers!" The same people may also be those who are still against accepting of FDIs because of dumb reasons like "But only the FDIs will get rich!" or "FDIs will invade us and destroy our sovereignty type of talk." 

I'd admit that driving in the Philippines isn't exactly more fun. I remembered a couple of times I cursed because of a jeepney driver. I guess the vehicle gets the name "Hari Ng Karsada" (King of the Road) because of how arrogant some jeepney drivers can be. I really hate driving especially during Christmas and you know why. Even worse, some people still keep telling me one of my most hated jokes namely, "Bitter? Just add sugar!" I don't see how "adding sugar" in a figurative sense will ever help solve the public transportation crisis.

Are we having a severe lack of common sense here?

Translation: There's a force in selling out modern jeepeys to the community worth 1.6-23.3 Million, meanwhile the traditional jeepney is only PHP 200K only. 

If the jeepney modernization goes on, you can expect PHP 20-25 for a fee. It will be added suffering to the commuter.

One of the worst "thought leaders" is Silent No More PH. Okay, I'll admit that I didn't vote for Philippine President Ferdinand R. Marcos Jr. However, Silent No More PH (which now exists as a Facebook page since their paid domain isn't available), has been focused on too many scare tactics like "Charter change is bad!" or "No to jeepney phaseout." Again, we're talking about phasing out old jeepneys that tend to deliver so much pollution, I could understand that the cost of the modern jeepneys would be around PHP 1.6 to 2.3 million while the traditional jeepney costs PHP 200,000.00 only. This still makes a dumb argument for many reasons.

If we're talking about upgrading, there's going to be a cost. I'm amazed at how Silent No More PH (and I heard it's run by Angelo Dayao aka Cocoy Dayao) has its analysis. It's always been "No to charter change, yes to character change." Okay, we've had several years already of "vote wisely" but what have we gotten anyway? Then they (and their followers) can afford to berate Robin Padilla ever mind he's actually a criminology graduate. I didn't vote for Padilla because he was an actor. I already got tired of celebrities (whether actors or athletes) winning legislative positions. However, Padilla is making more sense than the experts. Then we have the Ad Hominem attack that constitutional amendments must be headed by experts instead of an ex-convict. It's already been home many years since Padilla was an ex-convict! Ex-convict means former convict. It's like your ex-spouse is no longer your spouse. 

The financial literacy of Silent No More PH's writers is very stupid. Where do I even begin with their lack of financial literacy? Of course, prices will increase because manufacturers and retailers will have to recover from the cost. Cost accounting will tell you that the cost of production for modern jeepneys will be higher than that of old jeepneys. There are also research fees, salaries, etc. which will add up to the costs. If you're going to ride a modern jeepney with a better engine and performance--there will be maintenance to talk about. A taxi will cost more because maintaining a car with an air conditioner is more expensive than maintaining a jeepney. This also makes 

I wonder what people like the people behind Silent No More PH want? Are they demanding that taxis have the same rate as jeepneys? Are they demanding companies that provide the newer, better jeepneys to sell them at the same rate as the old jeepney that needs to be phased out? Are they demanding for airconditioned jeepneys with fees as low as the non-airconditioned jeepneys? I guess the posts of Silent No More PH can prove this--the empty vessel makes the most noise! 

Why replacing older jeepneys with modern jeepneys is better for finances

There are some meaningful jokes thrown at the miser. The miser is very unwilling to depart from his /her money--even at the cost of convenience. If people are refusing to upgrade jeepneys because of the cost it'll incur--that's just plain stupid. I had cataract surgery and I was advised to get the best artificial lens and the best doctor available. Just imagine if I went to a witch doctor (which would be cheaper) compared to if I went to the Larazzabal Eye Clinic in Cebu Doctors University Hospital. I might experience severe complications if a witch doctor performed my cataract surgery instead.

Stingy people might end up destroying themselves sooner or later (read here). This principle can apply to the jeepney. Sure, it may cost more to buy new jeepneys but if these new models are more efficient and effective, why not? If doing research to create a brand new jeepney that keeps the traditional look with modern features--it'd be worth it to create new jeepneys to replace the old ones. The old jeepneys are already hit by wear and tear. They may give out a lot of smoke (which can harm passengers), the brakes may be broken (which can lead to more accidents caused by the vehicle instead of the bad driver), and they can lead to a lot of accidents. Which is more costly a momentary increase in expenses or expenses that accumulated because of a refusal to accept the momentary increase? A stingy person refuses to be practical because they only think about how not to spend money in the short run instead of how to save more money in the long run. 

Just think about the benefits of upgrading the jeepneys to better models. Sure, it's going to cost more (because of recovery costs) but it's going to be better. A better, more spacious layout (for the face-to-face arrangements) would be good. Having a bus-like arrangement from the inside might also be good for people who prefer the bus seating arrangement. It would also mean a better break system, which in turn, may prevent more accidents and help it become easier to catch bad drivers. It might also mean getting newer jeepneys that will meet international standards.

Many stuff used to be rather slow and inefficient. Older lightbulbs would consume more electricity. Now, we have better lightbulbs. Before, we used to endure dial-up modem Internet all before the rise of the digital subscriber line (DSL). Before, we used to make reports on the typewriter (which is a very paper-eating monster) before PCs allowed editing before printing. Seeking progress means not only working hard but also working smart (read here). Working smart means doing hard work that will guarantee better results.

With modernized jeepneys, we can definitely improve Philippine public transportation. Vietnam has been upgrading its transportation. We might look at how the tricycle known as the tuk-tuk evolved overtime in countries that use them. The jeepney can be upgraded both inside and out. If developed countries with a tuk-tuk, seek to make better tuktuks, why shouldn't the Philippines make better jeepneys? 

How I believe FDI can help in the jeepney modernization program

We need to do a supply chain analysis as well as a supply vs. demand analysis. These don't require an MBA or a Ph. D. to understand! I would like to share this with the intent of talking about common sense. That's why I decided to buy the book From Third World to First by the late great former Singapore prime minister, Lee Kuan Yew. I'm amazed at how some people have been using the book to quote what Lee said about the Marcoses. However, they may have never read the whole book in its entirety or are just cherry-picking.

It's often said (by naysayers) that Singapore only opened up to FDIs because of its lack of natural resources. However, that's not exactly the case when I read through it. Vietnam is a country rich in natural resources. Vietnam could've chosen to go protectionist. Instead, the late Nguyen Duy Cong aka Do Muoi initiated the reform program for a Communist country. Vietnam opened up and it's already more than a rising tiger in the ASEAN (read here). Vietnam has become better at attracting investments than the Philippines which is more democratic. However, the equity laws in Article XII of the 1987 Constitution of the Philippines just don't match with democracy. That's why I wrote about why celebrating EDSA 1986 while supporting the Filipino First Policy is contradictory (read here).

Having a better economy means any price increase will not be a heavy thing. It's because FDIs, in contrast, to what naysayers say, are better. That's why I'd say that I support Kishore Mahbubani over Hilario G. Davide Jr. (read here). With FDIs, we can also help local businesses progress through expanded networks of customers and suppliers (read here). FDIs can also help provide higher-paying jobs because the economy will be better. If the economy is better then the minimum wage can be higher. 

How can that be applied to the modernization of jeepneys? If there will be more FDIs involved in public transportation--we may get economies of scale. Right now, it's expensive because the demand is high, the supply is low, and the technology is rather new. However, when the process is repeated and improved, we may get more affordable modern jeepneys. As for the fees, if the economy is better, then spending PHP 25.00 for transportation for the minimum-wage worker will not be a problem. Public transportation via bus in Singapore can be more expensive than in the Philippines. However, people will spend that higher fee like it's nothing because Singapore has a better economy.

The modern jeepney would mean to upgrade the obsolete model. Sure, we can still keep the jeepney look but it will have a more modern engine and interior. Just imagine having a jeepney that runs with a better engine and fuel efficiency. That means having jeepneys without the smog that the old ones will produce. The old jeepneys need to be phased out in favor of making modern ones. Having FDIs would mean jeepney companies can get access to better technology to make better jeepneys. 

What we need is to upgrade when needed. Embracing new skills is necessary for a country's development. If we really want character change--why not change the charter first? Changing the charter will eventually lead to a change in character.