Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10140

Philippines shines in terms of financial inclusion

THE PHILIPPINES is among the top countries in terms of financial inclusion, a global advisory group said, noting that local rules allow wider use of digital platforms to reach the unbanked.
The Philippines ranked fourth among 55 nations in terms of financial inclusion, according to the 2018 Global Microscope of the Economist Intelligence Unit (EIU), making the country the best in Asia together with India, which shared the same global rank.
Still, the Philippines saw its score slip to 72 (on a scale with 100 as best score) from 78 in 2016, when it ranked third, again together with India.
Colombia, Peru and Uruguay were the top three countries for financial inclusion.
“The Philippines’ central bank, Bangko Sentral ng Pilipinas (BSP), has been ahead of the curve in identifying opportunities and setting guidelines for financial inclusion. Its focus on creating a digital finance ecosystem has led to the introduction of a sound payments infrastructure that helps the various financial-sector players to reduce their costs and further their outreach,” the EIU said in its report.
The report cited recent reforms introduced by the BSP which allowed more non-banks to offer more financial services to Filipinos, which they said opened up more avenues for the public to use formal channels for money transfers and payments.
Among the significant changes cited in the report were the creation of “branch-lite” units, or basic branches deployed outside business districts and urban areas in order to reach more Filipinos.
Rules allowing basic deposit accounts and cash agents also helped create a more accessible formal financial system.
“The BSP has a clear regulatory framework for e-money issuers but relies on the ‘test-and-learn’ approach for other financial technology players,” the EIU added.
Under the National Retail Payment System, the BSP targets to shift cash-heavy transactions to digital avenues, which is expected to broaden access to financial services and spur economic activity.
Through this system, the central bank wants to raise the share of e-payments to 20% of all transactions in the Philippines by 2020, coming from a measly one-percent share back in 2013.
The EIU also flagged that e-money accounts, which have been steadily growing, are currently not covered by deposit insurance.
Another key barrier to inclusion is the small size of lenders which are focused on serving the retail market.
Thrift, rural and cooperative banks are dwarfed by universal and commercial banks, and thus “limits the reach,” the London-based firm added. — Melissa Luz T. Lopez

Gov’t stepping up fight against dirty money

THE GOVERNMENT is stepping up its fight against dirty money flows, as Malacañan Palace ordered the formation of a multi-agency coordinating body for this effort.
Executive Order No. 68, signed by Executive Secretary Salvador C. Medialdea on Nov. 12 and e-mailed to reporters on Wednesday, provides for the adoption of the National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Strategy (NACS) 2018-2022 and the formation of a National AML/CFT Coordinating Committee.
“All relevant government agencies and instrumentalities shall adopt the NACS 2018-2022 in the formulation and implementation of all their plans and programs which may have an impact on the AML/CFT efforts of the government,” the order read.
That strategy consists of action plans addressing the risks and problem areas identified in the Philippine National Risk Assessment. The latest report, covering 2015-2016 and released in December, said that the national money laundering threat remained “high”, while the US State Department described the Philippines as a “major” money laundering site in 2016.
The government has been plugging loopholes in the basic anti-money laundering law. Republic Act No. 10927, signed into law last year, further boosted defenses against dirty money flows by requiring casinos to report daily transactions worth at least P5 million to authorities. The Philippines’ gaming system was thrust to the spotlight when hackers in February 2016 used some $81 million stolen from the Bangladesh Bank’s account with the Federal Reserve Bank of New York laundered their loot in casinos. Out of the stolen $81 million, only about $15 million has been returned to the Bangladesh government.
EO 68 also forms the National AML/CFT Coordinating Committee (NACC) to provide overall policy and strategic direction and oversee NACS implementation.
The NACC will be led by the Executive Secretary as chairman, while the central bank governor will serve as vice-chairman. NACC members will consist of the secretaries of Finance, Foreign Affairs, Justice, National Defense, Trade and Industry and of Interior and Local Government; the chairman of the Securities and Exchange Commission; the Insurance Commissioner; chairman and chief executive officer of the Philippine Amusement and Gaming Corp., among others.

BusinessWorld forum zeroes in on cybersecurity

BUSINESSES today face increasingly sophisticated cybersecurity threats that can inflict substantial financial and reputational harm.
With this growing concern in mind, BusinessWorld is holding its first Cybersecurity Forum at 1-5 p.m. today at the Glass Pavilion of Dusit Thani Manila in Makati City.
The program consists of discussions by key government and private sector cybersecurity experts that should help forum participants make sense of the changing nature of cybersecurity risks, as well as safeguards needed for business organizations to operate in this threat environment.
The first part of the forum will revolve around building a cyber-resilient culture. Just yesterday, Kaspersky Lab reported that the Philippines remained among the top 10 targets of online attacks last quarter, with number of reported incidents jumping more than fourfold to 8.1 million from 1.8 million a year ago. A separate study released earlier this year estimated that the country’s losses to such attacks could be equivalent to at least one percent of gross domestic product.
Raymund Enriquez Liboro, chairman of the National Privacy Commission, will open the first part of the forum with a presentation on the state of cybersecurity in the Philippines.
He will be followed by Genalyn B. Macalinao, policy lead of the Cybersecurity Bureau of the Department of Information and Communications Technology, who will discuss cybersecurity threats and trends.
Dominic “Doc” Ligot, founder and chief technology officer of CirroLytix Research Services, will then discuss data governance and ethics.
The second part of the forum will focus on cybersecurity best practices at a time of growing Internet penetration in the country.
Raul R. Cortez, legal corporate affairs director of Microsoft Philippines, Inc., will tackle how to secure modern enterprises in an increasingly interconnected digital world.
Angel T. Redoble, ePLDT chief information officer, will discuss re-engineering cybersecurity to keep up with an ever-changing threat landscape.
The program will conclude with a talk on consumer perspectives on privacy and security by Bobby Soriano, a cyber forensic investigator and himself an ethical hacker.
Roby Alampay, editor-in-chief of BusinessWorld, will host the forum and moderate the panel discussions.
For more information about the BusinessWorld Cybersecurity Forum and to register, call 5359901 local 707 or visit bworldonline.com/cybersecurity.

Total Philippines aims to grow store network to 1,000 in 5 years

TOTAL PHILIPPINES is embarking on an aggressive expansion program. — FACEBOOK.COM/TOTALINTHEPHILIPPINES/

By Victor V. Saulon, Sub-editor
TOTAL Philippines Corp. targets to double the number of its service stations in the country from the current 500 as the company expands its reach outside the main Luzon island.
“This year we opened 50 new service stations,” Laurent Stouffe, president and managing director of the local unit of French group Total S.A., in a gathering in Makati City on Tuesday.
He said the company currently has 500 stations all over the Philippines, and that the strategy of the company is to double the size of the network to 1,000 in five years.
“It could be faster,” he said.
Mr. Stouffe said the target is achievable since Total Philippines had only about 200 stations two years ago, but was able to increase its could in a short span of time.
He did not disclose the capital expenditure for the planned expansion, saying that the cost would depend on the size of the service station, the business model, and the lease arrangement for the area where the station will be located.
“We know that the price of the rent in Manila or Quezon City is different from the north and the south of the country,” he said.
He said at present, Total Philippines has about five stations in Mindanao, with 20 more in the pipeline.
The company’s aggressive expansion is a departure from its low-key presence in the Philippines, where it also has exposure in exploration projects, and just recently, solar energy rooftop installation.
Last month, a unit of Total S.A. said it had secured contracts to install solar energy systems on the rooftop of four Gaisano malls in Luzon and the Visayas with a total capacity of 1.66 megawatts (MW).
The subsidiary Total Solar SEA said it had locked in contracts with Gaisano Capital, the entity behind the malls, for its first project in the Philippines.
Total Solar said the installation can generate around 2,257.3 MW-hour in a year. The malls in Binangonan, Calapan, Masbate and San Carlos will have an installed capacity of 536 kilowatts peak (kWp), 268 kWp, 375.2 kWp, and 482.4 kWp, respectively.
The project is expected to help Gaisano Capital cut its carbon dioxide emissions by 1.25 million tons and reduce its expenses.

POPI to spend P1 billion for Laguna warehouse

AYALA-LED Prime Orion Philippines, Inc. (POPI) is investing P1 billion to develop a logistics and warehousing facility in Laguna, in a bid to address the demand from small and medium businesses in the area.
In a statement issued Wednesday, POPI said Laguna Technopark, Inc. (LTI) — its joint venture firm with Mitsubishi Corp. — has unveiled a new Standard Factory Building (SFB) in Brgy. Loma, Binan City.
The facility will stand inside the 11-hectare Laguna Technopark. It will house 40 units sized 1,200 to 1,500 square meters (sq.m.) each, for a total leasable area of more than 60,000 sq.m.
“This new SFB aims to accommodate small and medium businesses from both the global and local market, as well as clients with growing warehousing and storage needs,” the company said.
POPI looks to complete the facility by October 2020, but it will be available for lease by May 2019. The company targets non-PEZA locators to lease out the spaces.
The listed firm also noted that this will be LTI’s largest investment so far.
POPI is Ayala Land, Inc. (ALI)’s player in the real estate logistics and industrial space. The company plans to launch two industrial parks by the first half of 2019, banking on the resurgence of manufacturing in the country.
One of the industrial parks in POPI’s pipeline will be located in a property in Cagayan de Oro near the Laguindingan airport. This will offer 42 parcels of land with lot cuts of 7,000 sq.m. each.
The second industrial park will be located in central Luzon, but the company has yet to specify its exact location.
Aside from investments in industrial parks, POPI is also redeveloping Tutuban Center in Manila, as it looks to take advantage of the construction of the government’s North-South Railway Project. Once realized, Tutuban will be at the center of the North Line, South Line, and LRT West rail projects.
With its current rehabilitation, POPI has expanded Tutuban commercial complex’s gross leasable area to 53,000 sq.m., alongside the introduction of new retail and wholesale concepts.
POPI grew its attributable profit by 48% to P97.43 million in the third quarter of 2018, after rental revenues jumped 52% to P216.1 million. Consolidated revenues surged 461% to P1.01 billion.
This brought the company’s nine-month net income attributable to the parent to P189.47 million, 122% higher year-on-year, on the back of a 328% increase in revenues to P1.94 billion.
Shares in POPI dropped 2.67% or nine centavos to close at P2.36 each at the stock exchange on Wednesday. — Arra B. Francia

Cemex shutters cement terminal in Davao

CEMEX Holdings Philippines, Inc. (CHP) has suspended operations of its cement terminal in Davao, after a landslide in Cebu triggered the shutdown of quarry activities of its raw materials provider.
In a disclosure to the stock exchange on Wednesday, the listed cement manufacturer said the Davao terminal operated by its Cebu-based subsidiary APO Cement Corp. has been incurring higher costs due to the outsource of raw materials from different regions of the country, as well as outside the Philippines.
According to APO Cement, its Davao terminal holds and dispatches 25,000 bags daily.
APO Land & Quarry Corp. (ALQC), APO’s principal raw material provider, has been suspended from operating for two months now after a landslide in Brgy. Tinaan, Naga City, Cebu last Sept. 20 left at least 78 people dead.
CHP, APO, ALQC, and other related government units are now facing a P4.33-billion environmental class suit in relation to the quarry operations.
“As a consequence of the above, the organization has been constrained to take measures to reduce the impact of the current situation on its results of operations, business, liquidity, and financial condition,” the company said.
CHP has also suspended operations of one out of two kilns in Cebu. Meanwhile, APO will be laying off 30% of its regular employees and 38% of its contractual employees. The company will further reduce its workweek to bring down costs and expenses.
“APO Cement Corporation decided to implement additional measures to deal with the continuing challenges of having to source raw materials from different regions of the Philippines and from outside of the Philippines in order to produce cement,” APO Cement Spokesperson Chito S. Maniago said in a statement.
Shares in CHP fell 3.55% or seven centavos to close at P1.90 each at the stock exchange on Wednesday. — Arra B. Francia

Pangilinan hopeful after PHL, China ink framework energy deal

THE chairman of PXP Energy Corp. has described the reported memorandum of understanding (MoU) between the Philippines and China for the joint exploration in the South China Sea, or the West Philippine Sea, as “a small but significant step” in advancing the development of carbon resources in the area.
PXP Chairman Manuel V. Pangilinan cited media reports about the state dinner hosted by the Philippine President Rodrigo R. Duterte for his visiting Chinese counterpart Xi Jinping that also saw the signing of the MoU.
For his company, Mr. Pangilinan said the memorandum would have an impact on both China and Philippines, “particularly us” and the energy sector.
“I do hope that this could lead to some positive steps that we can take in respect of the work program that the group has presented to the previous government in respect of the exploration and development work,” he told participants of Meralco’s Technology & Innovation Summit 2018 at the distribution utility’s head office on Ortigas Ave.
Mr. Pangilinan said the memorandum would also have a “significant” impact on the petroleum downstream activities, the development of the planned gas terminal, a possible gas-fired power plant for Manila Electric Co. (Meralco), which he also chairs.
Last month, PXP Energy announced a partnership with businessman Dennis A. Uy’s planned liquefied natural gas (LNG) terminal and gas-fired power plant, which was prompted by the possibility that its own exploration project would successfully find natural gas.
Mr. Pangilinan had said Mr. Uy’s LNG project remains subject to a feasibility study, and that PXP Energy wanted an option into part of the equity.
“If SC (Service Contract) 72 is eventually proven to have gas, we could supply the gas to the gas terminal and to his gas plant. That’s the only motivation. If we don’t have the gas then maybe we won’t invest,” he had said.
Earlier last month, PXP Energy announced that Dennison Holdings Corp. would subscribe to shares in the listed company.
In turn, Mr. Uy’s Phoenix Petroleum Philippines, Inc. is granting preferential rights to PXP Energy to participate and acquire up to a 49% equity in the former’s project to build an LNG terminal and a gas-fired power plant with Chinese partner China National Offshore Oil Corp. (CNOOC). Dennison and Phoenix Petroleum are companies led by Mr. Uy.
PXP Energy had talks with CNOOC for the joint exploration of SC 72, although discussions had been put on hold because of the dispute between the Philippines and China on the area where the service contract is located.
PXP Energy has interests in various petroleum service contracts in the Philippines, including through subsidiary Forum Energy Ltd. The company holds a 78.98% controlling interest in Forum, a UK incorporated company with focus on the Philippines. The unit has a 70% operating interest in SC 72 in Recto Bank, which covers the Sampaguita natural gas discovery in offshore west Palawan.
Phoenix Petroleum in June signed a memorandum of understanding with CNOOC to develop a receiving terminal for imported LNG in the country. — Victor V. Saulon

Cirtek profits surge in 3rd quarter

CIRTEK Holdings Philippines Corp. looks to deliver strong profit growth for 2018, after earnings doubled for the first nine months of the year.
In a regulatory filing, the listed technology firm reported a net income of $3.5 million in the third quarter of 2018, 208% higher year-on-year. This followed a 31% uptick in sales to $33.6 million on the back of robust growth across all business units.
Revenues from Quintel, the United States-based firm Cirtek acquired in 2017, contributed $16.9 million.
Its antenna manufacturing unit provided $10.4 million before consolidation. Excluding inter-company sales during consolidation, Cirtek said revenues to external customers reached $1.9 million. Meanwhile, the semiconductor business generated $14.9 million.
On a nine-month basis, Cirtek’s net income grew by 99% to $11.1 million, on the back of a 30% sales growth to $88.5 million. The company’s acquisition of Quintel proved beneficial to its topline, as it accounted for bulk of revenues at $47.5 million.
The company targets to grow Quintel into a $500-million revenue firm in the next three to five years, at the same time aiming to be listed at the Nasdaq stock market.
Gross profit margins meanwhile improved to 29%, versus 19% in the same period a year ago.
“We expect the Group’s growth momentum to continue for the rest of the year and into 2019,” Cirtek President Roberto Juanchito T. Dispo said in a statement issued Wednesday.
“Strong demand from existing customers, new customer wins, and strategic collaboration with selected wireless product companies resulting in quicker product time to market, will all come into play and enable the Company to capture new business opportunities and further drive shareholder value.”
Cirtek said it will continue to invest in high-growth spaces, while also optimizing its research and development capabilities.
Aside from Quintel, the company also acquired a 49% stake in local e-commerce firm MultiPay for P100 million last year. MultiPay provides payment platforms and solutions to companies like Bayad Center, EasyPay, and DragonPay.
Cirtek earlier said it will spend up to $8 million for capital expenditures this year, most of which will be spent to expand its capacity.
Shares in Cirtek gained 0.82% or 30 centavos to close at P36.70 each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia

The synergy of four hands


By Joseph L. Garcia, Reporter
SYNERGY means quite simply, the “creation of a whole, greater than the sum of its parts.” We witnessed synergy on Nov. 13 in The Peninsula’s Old Manila when two budding masters, Allan Briones and Jordy Navarra, joined forces for a memorable preview of a dinner called “A Fourtaste of Things to Come” set for Nov. 28.
Allan Briones is the first Filipino to be appointed as Chef de Cuisine of Old Manila, and has under his belt training and experience from the three-Michelin-starred Marco Pierre White in London and Abu Dhabi. Meanwhile, Jordy Navarra has trained in the UK’s The Fat Duck and Bo Innovation, and his restaurant, Toyo Eatery, was given the 2018 Miele One to Watch award.
The collaboration comes on the heels of a similar collaboration in July in Toyo Eatery; now with the places reversed, with Mr. Navarra invading Mr. Briones’ kitchen (in a friendly way, of course).
For the preview lunch on Nov. 13, Mr. Navarra served a Kinilaw of Oyster with Gamet Seaweed and Kabayawa. The result had a clean and fresh taste of the sea, and each bite felt as if being hit by sea air it and preserved the oyster’s briny taste. Next came a Wagyu Beef Cheek Croquette, with preserved cabbage, pickled radish, and apple; this time by Mr. Briones. The crispness of the rest of the accoutrements provided structure to the yielding beef cheek.
The soup was a take on a Maguindanao dish called Bunta, essentially a soup with crab and ginger. Mr. Navarra’s version had layers of ginger flan, crab meat, coconut milk, then more crab meat with coconut vinegar reduction, and over that, a layer of crab fat and a sprinkling of fresh dill. This was synergy at work, I believe, and each ingredient contributed to a soup far richer than expected.
A Smoked Iberian Pork Tenderloin with King Oyster Mushroom, Long Beans, Sweet Potatoes, and Pili Nut Picada by Mr. Briones came out next, and this one tasted luxurious but clean, and seeing the pork give way to my fork left me with my mouth agape: perhaps it was the meat’s sous vide bath in margarine that caused its tenderness.
Desserts were a sorbet of Gin & Tonic with Hendricks Jelly and micro-cucumber chutney, and a banana tatin with chocolate from the Peninsula, Calamansi Curd, and Langka Ice Cream, made by The Pen’s Executive Pastry Chef Xavier Castello.
The training of each chef came into play for meal, of course, but Mr. Navarra sums up the dinner’s theme quite nicely: “Trying to find a balance between the styles.” Mr. Briones said that he used more modern techniques, but from Mr. Navarra’s influences, leaned more towards the local for this dinner.
“We’re just trying to feature what we can do… it’s more of an introduction of… the team and the direction of Old Manila,” said Mr. Briones of the collaborations between the restaurant and other entities, such as Toyo Eatery for this quarter, and Holy Carabao farms earlier this year.
Meanwhile, Mariano Garchtorena, the hotel’s Director of Public Relations, said about the collaborations: “It’s the very first time that the Peninsula and Old Manila has had a Filipino chef in its 42 years of history. This is a natural evolution of the profile of the restaurant as well: Filipino chef, Filipino collaborations, more Filipino produce.”
The dinner on Nov. 28 is priced at P4,500 nett. For reservations, call 887-2888 ext. 6694.

‘Proactive’ action needed from banks versus financial crimes

LOCAL BANKS need to be proactive in protecting the data of its clients as identity theft is the top security concern of Filipinos, global information technology firm Unisys Corp. said.
According to the latest 2018 Unisys Security Index, identity theft was the top security concern in the country as 88% of the Filipinos surveyed are “extremely or very concerned” about unauthorized misuse or access of their personal information.
Aside from identity theft, natural disaster or epidemic (87%) as well as bank card fraud (86%) were also the top security concern among Filipinos.
Ian Selbie, Unisys Asia-Pacific Solutions Director on Financial Services, said domestic lenders need to be “proactive” in shielding sensitive information from potential breaches or theft as they need to maintain the trust of their customers.
“[The security index] shows that banks needed to be very careful in taking care of their customers’ data, which I think they are. They also need to make sure to educate their customers continuously on how to protect themselves,” Mr. Selbie told BusinessWorld following a briefing on the report last week.
To be extra vigilant in protecting data, Mr. Selbie said lenders must employ systems to shield themselves from breaches and enable them to scour the dark Web for sensitive information from other sources.
“I’m not saying the data came from the banks. It could have come from any source, but it’s out there. And banks can do something, find out and take action as a result of that,” Mr. Selbie said.
He also noted that lenders must look into their clients’ suspicious or unusual transaction patterns that may be an indication of a data breach or a fraud attempt.
It is equally important that financial firms educate their clients on how to protect themselves from data breaches such as phising and call center fraud, Mr. Selbie added.
The central bank recently issued guidelines requiring banks and other regulated financial institutions to report cybersecurity breaches within two hours of the attack from the previous 10 days, allowing the monetary authority to monitor the situation and take supervisory actions if warranted.
Respondents for the security index survey, which was conducted from Aug. 13 to Sept. 3, were 1,004 Filipinos aged 18-65.
Aside from the Philippines, the study was also conducted in Argentina, Australia, Belgium, Brazil, Colombia, Germany, Malaysia, Mexico, Netherlands, New Zealand, UK, and US.
Among the 13 countries surveyed, Philippine consumers reported the highest level of concern about security at 232 points on a scale of 0 to 300. However, the country’s index fell 11 points since 2017, with decreases across all areas of security issues such as national, financial, internet and personal concerns.
The study also showed that Filipinos are more comfortable using digital identification systems of government institutions than those of financial firms. — Karl Angelo N. Vidal

IPC teams up with Conversant for CDN service

IP CONVERGE Data Services, Inc. (IPC), an ePLDT company, has teamed up with Singapore-based digital media solutions provider Conversant Solutions, Inc. to offer the country’s first enterprise-level Content Delivery Network (CDN) service.
IPC Chief Operating Officer Dave de Leon said the CDN service can help companies establish a global presence, and more importantly, eliminate the issues that delay long-distance online transactions and delivery of digital content.
“There are actually a few options available to enterprises for content delivery, but those are actually not local. Those are actually residing abroad, so it takes a little bit of time to access the services that they provide to be able for a company in the Philippines to service its own customer. The difference is today, this is going to be locally hosted and available,” Mr. de Leon said during the media launch at the Dusit Thani Hotel in Makati City on Wednesday.
IPC partnered with Conversant Solutions’ local partner Pagecom to offer the subscription-based service called IPC Contentcast CDN, which is touted as up to five times “more economical” than other subscription-based CDN services.
With IPC Contentcast CDN, businesses do not have to spend on special hardware, maintenance, and other operational expenses.
CDN acts as a medium between the point of origin of data and an interconnected device. With a network of servers abroad, member companies can deliver their digital content such as videos and websites faster and more reliably to end-users.
The service also has built-in security since it can direct these attacks to the mirror servers, and points-of-presence (PoPs) that remove the traffic in the main server, thus eliminate the chance of data overload occurring.
Currently, IPC has more than 50 PoPs globally, mostly of which are in Asia.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Vincent Mariel P. Galang

Shiptek launches online logistics application XLog

SHIPTEK SOLUTIONS Corp. officially launched XLog, an online platform that will streamline and smoothen logistics processes.
“XLog is an end-to-end digital logistics platform that help you book, monitor, and manage your shipments,” Nico Gonzales, chief marketing officer of Shiptek, said at the launch on Tuesday.
XLog, accessible via www.xlog.net, is a Filipino-made cloud-based web application that lets users directly transact with service providers, reducing costs. This is supported its shared communication platform which allows shippers and logistics suppliers to contact each other.
“By going direct to certain service providers, it can make the costs a bit lower…which we allow through the platform,” Mr. Gonzales told reporters.
Mr. Gonzales said that through the direct transaction of business to shippers, costs can be reduced by at least 10% to 25%.
“By going directly, you might not have the luxury of being able to use a freight forwarder, for example because wala ka gaanong karaming pera (you do not have that much money) to spend, and we all know that…freight forwarders, ‘yung model nila (their model) is really a cost-plus model na pumapatong ng (that adds) around 10% to 25% yung mina-mark-up nila versus sa service na binibili mo (the service you are buying),” Mr. Gonzales told BusinessWorld.
“So, by being able to go…direct to a shipping line, all of a sudden bumabagsak yung cost (the cost will fall). That’s where we see probably mga (around) 10% to 25% that can help savings for SMEs and businesses that can’t afford the luxury of using a freight forwarder,” he added.
Other features of the platform include online booking from logistics provider from shipping, storage, trucking and customs brokerages. Financial transactions can also be done in the platform and access to invoices and bank transaction reconciliations are also provided to users. It also features real-time GPS monitoring of shipments and a centralized document storage system, among others.
“What sets us apart from these companies…we’re not actually competing with these logistics companies. What we created here is a platform that will help these companies expand their business further… These companies can register and come into the platform and offer their services,” Joey Ynion, chief operating officer of Shiptek, told reporters.
Shiptek had talks with the Bureau of Customs (BoC) to provide the agency with the platform for use in their operations. However, with the current leadership issues in the bureau, discussion were halted, but Mr. Gonzales is hopeful that discussions can start again to implement the platform and hopefully help address smuggling issues and fast-track transactions through transparency.
Come January, the homegrown software company targets XLog’s full launch. Five years from now, they are targeting to be a global company.
“Hopefully, by that time…this becomes a standard tool for logistics companies and shippers, importers exporters alike. This will become their standard tool for day-to-day operations…for monitoring all their shipments…. We will be constantly evolving, as well. Constantly adding features that the market may need,” Mr. Gonzales said. — V.M.P. Galang

1...10,13910,14010,141...12,701Page 10,140 of 12,701
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube