Facebook Instagram Linkedin X Youtube
Home Blog Page 10326

New FB study shows how Filipinos will be shopping for Christmas

Christmas time is one of the busiest seasons of the year for Filipinos. Schedules are booked not only with reunions and trips, but also with hours of shopping dedicated to discovering the perfect gifts for loved ones.

With the e-commerce boom of the last few years, buyers can access tons of information about a product before making a purchase. But how exactly does the average Filipino’s shop during the holidays? To what extent does digital play a role in this journey? And how can businesses capitalize on this?

A very mobile Christmas

According to Facebook’s 2019 Holiday Study, a majority of Filipinos do their Christmas shopping in November and December. But there are some outliers who push the task to as late as January, citing additional sale dates and more relaxed in-store ambiences as some of their reasons.

Regardless of the month, however, the role of mobile in shopping is increasing among consumers. There was a seven percent drop in the number of shoppers who made purchases in-store compared to last year. And for those who still prefer to go to physical shops, there’s still a touch of digital in their journey.

For instance, 73 percent of surveyed Filipinos said that they use their smartphones while shopping in-store, up 10 percent from 2018. Majority used them to access more information, comparing prices and alternatives and reading product reviews. There were those who browsed for coupons or discounts; some even ended up purchasing a product online from a different retailer.

John Rubio, country director for Facebook Philippines, says this all points to how tech-savvy Filipino shoppers have become. “The big thing I take away is significant growth year-on-year, which for me is interesting because… the Philippines from an Asia-Pacific perspective was always lagging for e-commerce.”

Keeping it personal

While more and more Filipinos may be turning to online shopping, they don’t expect it to be any less personal than the in-store experience. Buyers still expect retailers to be hands-on, with nine out of 10 saying that they’re more likely to buy from a business if they can reach out to them through online messaging.

The top reason for buyers for messaging is to get more details about a product. Actual product purchase comes in second, with order tracking and specifics naturally following.

In that sense, the online shopping experience is expected to be as holistic as its offline counterpart. “What we’re seeing is almost a bifurcation of usage. One is your town hall where you shout to everybody that you’re connected to… you do that in a public square format, which is feed,” said Rubio.

But beyond product discovery, the mobile experiences takes on a more intimate role as well. Consumers take to messaging platforms to engage with retailers, much in the same way they reach out to trusted friends for advice.

“What we’re seeing as almost equal, and from a velocity perspective maybe even more, is a more personal, living room-type conversation, [like the ones that] we have with our loved ones… Because we’re so used to messaging, this halo moves over to businesses that know how to message well.”

A core part of the new retail strategy

While in-store shopping may never completely disappear, the online component has certainly become more and more important over the years. Therefore, businesses of any size need to evaluate their purchase journey for their customers. 

“Digital is not just becoming a larger portion to the question of the actual spend, but it’s becoming an intrinsic part of the journey from step one,” said Rubio. “I think businesses need to get prepared, and it needs to be a core part of their strategy, not just an exciting experiment.”

Just a number: Four ways marketers can tackle the concept of age

Age is a difficult concept for marketers to build strategies on. Several studies have shown that age can very much be an issue of perception, and that it’s often viewed differently across different generations.

As the idea of age becomes more and more complex, businesses need to look into what their consumers are thinking in order to forge a strong connection with them. Here’s what your brand can consider when tackling age in messaging, according to McCann Worldgroup’s study, “The Truth About Age”.

1. Start young.

McCann’s study found that people in their 20s and 30s thought about aging more often than those aged 40 and above. On a slightly grimmer note, they also found that this group is also very anxious about dying alone, moreso than their older counterparts.

With most of the messaging targeted towards the younger demographic not discussing this prevalent worry, marketers would do good to bridge the gap through their messaging. McCann’s study suggests opening up and normalizing these discussions, doing so in a realistic but optimistic manner.

2. Celebrate the gains.

Messaging tends to emphasize the “losses” that the older demographic are experiencing, such as reduced physical abilities and the onset of retirement. But this demographic actually attests to their lives getting richer and happier over time, even saying that they’ve become more liberal, spiritual, and idealistic. They’ve also found a way to “hack” retirement, enjoying both leisure and work instead of focusing on stagnancy.

“I don’t think of retirement [as] stopping to work completely, because we like what we do,” said a Filipino study respondent in her 50s. “We will continue to work because we want to feel we are still completely useful.”

Thus, the challenge is for marketers to develop a new lexicon and imagery that emphasizes other gains for each age group. Keywords like “retirement” and “empty nest” must be reconsidered.

3. Go beyond the number.

Since every age group was found to think about aging in some way, it’s safe to say that traditional age segmentation isn’t as reliable as it used to be. Therefore, it’s time to think outside the box when it comes to the demographics that your brand chooses to target.

For instance, McCann devised a new segmentation that clusters according to attitude rather than numerical age:

  • Ageless adventurers: “Aging is a journey of limitless opportunities and personal growth.”
  • Communal caretakers: “Aging is a time of engaging with community and enriching personal relationships.”
  • Actualizing adults: “Aging is a process of maturity and acquisition of adult responsibilities.”
  • Future fearers: “Aging is a time of anxiety and uncertainty due to risks associated with old age.”
  • Youth chasers: “Aging is a decline and loss of their youth and vitality.”

4. Promote intergenerational connections.

The idea of “healthy aging” is defined differently in various cultures. Chileans see it as staying happy and positive, while the Japanese put a premium on getting enough sleep.

But the study found that the importance of connecting with different generations is consistent across the surveyed market. When asked to envision how they see a world where people age positively, the theme of intergenerational connection was prevalent as well.

Marketers can utilize this by launching efforts that will encourage generations to interact and connect with each other, helping foster a positive culture whose effects will permeate through the years.

4th Belt and Road Summit explores promising opportunities

More than 5,000 political and business elites from over 60 countries and regions attended the fourth Belt and Road Summit, with the theme “Creating and Realising Opportunities,” to examine the new opportunities arising from the Belt and Road Initiative (BRI).

The BRI, dubbed as the “project of the century,” is a significant development strategy launched by the Chinese government in 2013 to promote economic cooperation among countries along the proposed Belt and Road routes. It has been designed to enhance the orderly free flow of economic factors and the efficient allocation of resources, and is intended to further market integration and create a regional economic cooperation.

The two-day summit, jointly organized by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), brought together more than 80 government officials and business leaders across the globe who shared the latest opportunities and developments related to BRI, as well as the significant role of Hong Kong as a window of opportunity to the said initiative.

The BRI, according to HKTDC Chairman Peter Lam, has made significant progress since it was launched six years ago. He said that more than 130 countries have signed over 180 relevant cooperation agreements under the platform, with new projects, such as railways and roads, ports and power plants beginning in numerous countries around the world.

New opportunities are also opening up as the initiative goes beyond infrastructure to cover finance, technology, manufacturing, logistics, trading and many other sectors, Mr. Lam added.

The HKTDC chairman also underscored the importance of global cooperation to the success of large-scale projects and investments in the Belt and Road, especially in the face of economic uncertainty and global instability.

“Governments, investors and businesses need to work together to assess risks and set goals. They need to find projects and make connections. And they also need to make the right decisions and look for the right partners. Hong Kong – and today’s summit – are the ideal platforms for you to do so,” Mr. Lam said.

Hong Kong as a gateway to BRI

HKSAR Chief Executive Carrie Lam, in her opening remarks, also highlighted the unique advantages of Hong Kong as the gateway to the Belt and Road and its manifold prospects and possibilities.

“The connectivity and cooperation promoted by the Belt and Road has become increasingly prominent in today’s complex social and business environment. Hong Kong, China’s most competitive and international city, will play a significant role in complementing this strategic direction. I am confident as well that Hong Kong can create opportunities in capacity building, green finance, professional services, and business matching,” Ms. Lam said.

Despite the challenges Hong Kong currently faces from the trade war between the United States and China to the ongoing social unrest, Ms. Lam remains optimistic that the city will be able to rise again.

“Hong Kong, after all, has been built, and rebuilt, time and again, on our indomitable resilience. Call it the spirit of Hong Kong, and know that it will see us through. It will ensure that we also find our place – and help you find yours – along the Belt and Road,” Ms. Lam said.

Meanwhile, Gao Yunlong, vice-chairman of the 13th National Committee of the Chinese People’s Political Consultative Conference and chairman of the all-China Federation of Industry and Commerce, said in a special address that the BRI suits the need of future development, especially now that the world is moving forward quickly.

“We have common vision, let’s continue to develop Belt and Road so we will have a better future for the humankind,” Mr. Yunlong said.

Hao Peng, chairman of the State-owned Assets Supervision and Administration Commission of the State Council; Ning Jizhe, vice-chairman of the National Development and Reform Commission; Wang Bingnan, vice-minister of the Ministry of Commerce; and Xie Feng, commissioner of the Ministry of Foreign Affairs, also delivered their keynote speeches during the summit’s opening ceremony, focusing on the significance of the BRI in driving the steady growth of China’s national economy and examined Hong Kong’s vital role in the process.

Areas of connectivity under BRI, global policy

On the first day of the summit, a plenary session titled “Policy Dialogue Session: Facilitating Regional Co-operation through Five Areas of Connectivity under the Belt and Road Initiative” was held, with Edward Yau, secretary for Commerce and Economic Development of the HKSAR, as the panel chair.

Mr. Yau was joined by Abdulla Al Saleh, undersecretary of the Foreign Trade and Industry at the United Arab Emirates’ Ministry of Economy; Sok Sopheak, secretary of state at the Cambodian Ministry of Commerce; and Gabor Gion, minister of state for Financial Policy Affairs at the Hungarian Ministry of Finance, as the speakers, who talked about policy landscapes and investment opportunities in their respective economies.

The five areas of connectivity under the BRI comprise policy coordination, facilities connectivity, trade and investment, financial integration, and people-to-people ties.

Mr. Al Saleh noted that all these key areas are important. “We all need to engage these areas together, but we need to prioritize these areas according to the development of that country,” he added.

Meanwhile, in the “Second Policy Dialogue Session and Luncheon,” Dana Meager, deputy minister of Finance and Plenipotentiary of the Slovak Government for Negotiations on Belt and Road Initiative; Thaung Tun, union minister for Investment and Foreign Economic Relations and chairman of Myanmar Investment Commission; and Angelo Taningco, assistant secretary at the Department of Trade and Industry of the Philippines, discussed the relationship between the BRI and global policy.

Mr. Tun shared that Myanmar, which used to be isolated and closed for several decades, is now opening its doors for foreign investments. In fact, the establishment of the Ministry of Investment and Foreign Economic Relations last November was one of the indications that the country would like to engage with its neighbor countries and with other countries across the globe, he said. Mr. Tun believes that the BRI has a significant role to play in facilitating free trade.

“We would like to work together with our neighbors and have the opportunity to level up the playing field, so that we can all prosper,” he said.

Similarly, Ms. Meager has high hopes that the initiative could help boost trade. She said that further economic integration via the BRI is the way to get rid of the impact of US-China trade war.

Mr. Taningco, on the other hand, highlighted the opportunities of BRI for the Philippines, especially with diversifying into non-traditional export markets. The national government, according to him, is now establishing a closer relationship with China. Late last year, the two countries signed a memorandum understanding on Belt and Road cooperation, signaling its serious commitment when it comes to participating in the BRI.

“All of these efforts when it comes to participating in BRI from our side have resulted in huge economic benefits, especially on trade and also on investment,” Mr. Taningco said.

Making belt and road projects viable

In a plenary session titled “Investing for Value – Making Belt and Road Projects Viable,” six panelists, including Cheah Cheng Hye, co-chairman and co-chief investment officer of Value Partners Group; Dhanin Chearavanont, senior chairman of Charoen Pokphand Group; Victor Chu, chairman and chief executive officer (CEO) of First Eastern Investment Group; Li Xiaopeng, chairman of China Everbright Group Limited; Mochtar Riady, founder and chairman of Lippo Group; and Song Zhiping, chairman of China National Building Material Group Co., Ltd., shared their investment philosophies and experiences. Some of the speakers also highlighted how Hong Kong had played a critical role on their way to success.

“When we make an investment in the local economy, we have to make sure that we are making value to the economy,” Mr. Chu said. Moreover, investors, he said, have to be very meticulous when it comes to research and finding a good local partner. Aligning mutual interest is also the key, he added.

For his part, Mr. Chearavanont shared that the BRI is about sharing common benefits. It opens a lot of opportunities and hardworking investors can reap the rewards, he said.

Insightful discussions continued on the second day of the summit with a plenary session titled “Collaboration in Greater Bay Area for Belt and Road Success.” Speakers, including Chen Shuang, director and deputy general manager of China Everbright Holdings Co., Ltd.; Victor Fung, group chairman of Fung Group; Gao Yingxin, vice-chairman and chief executive of Bank of China (Hong Kong) Limited; Hu Zhanghong, CEO of Greater Bay Area Homeland Investments Limited; Thomas So, past president and chairman of Belt and Road Committee of The Law Society of Hong Kong; and Zheng Jianrong, director general of Department of Commerce of Guangdong, conversed on the opportunities and challenges related to Guangdong-Hong Kong-Macao Greater Bay Area development, and the role the Hong Kong will play to the success of the said development, together with the BRI.

Several thematic breakout sessions also took place simultaneously during the two-day event, focusing on the areas of sustainable finance, legal arbitration, risk management, investment cooperation opportunities, fintech, geopolitical risks, small and medium enterprises (SMEs), and the young generation.

Opportunities for SMEs and the youth

Yang Tao, founder and CEO of Kilimall International Ltd, told BusinessWorld in an interview that the BRI also involves opportunities for SMEs. To capture these opportunities, SMEs, he said, must harness digitization and focus on localization.

In terms of positioning their business locally, Mr. Tao said that SMEs should understand the culture of a certain country and learn how they will benefit from the local community. He also underscored the need to take advantage of the e-commerce because of the efficiency it offers.

Meanwhile, the BRI also brings a great deal to the young generation. This was consistently mentioned in different sessions during the summit. Joseph Chan, founder and CEO of AsiaPay, believes that the BRI will allow young people to gain a much broader skill sets and experiences.

“Because of these infrastructures, these policies in place, young generations have a lot more opportunities to exchange, to learn [and] to play a part to further the growth of economical exchange, economical developments, business development and also cultural exchange,” Mr. Chan told BusinessWorld in an interview after the thematic breakout forum titled “Belt and Road Opportunities for the Young Generation.”

Mr. Chan noted that the young people are the ones who will shape the future of the countries.

In addition to plenary sessions and thematic breakout sessions, the 2019 Belt and Road Summit also featured One-to-one Business Matching Meetings and Project Pitching Sessions. This year’s summit received more than 240 investment projects, focusing on urban development; energy, natural resources and public utilities; and transport and logistics infrastructures.

Unlocking the potential of the Filipino brand

By Bjorn Biel M. Beltran, Special Features Assistant Editor

The Philippine business world is no stranger to big brands. The malls and landmarks that stamp Metro Manila’s map house some of the biggest names in the world, from Samsung and Apple to Uniqlo and the homegrown Jollibee.

The same bee-fronted food and beverage giant, in particular, has become a de facto mascot of Philippine business, with an empire of restaurants all over the globe. But with globalization and the massive opportunities presented by digital technologies, many more could follow in the company’s footsteps.

At least, that’s what Martin Roll, an experienced global business strategist, senior advisor and facilitator to Fortune 500 companies, Asian firms and family-owned businesses, believes.

“You can point at almost any strategic business sector, and you have some entrenched players here whom have been here and doing very well for many years,” he said in an exclusive interview with BusinessWorld, noting the various family-owned conglomerates like Ayala Corp., San Miguel Corp., and Sy-owned SM Corp.

“That’s kind of from a domestic point of view. But when you look at it regionally or globally, I think there is still a lot of opportunities for the Philippines.”

Mr. Roll, who is a Distinguished Fellow and Entrepreneur in Residence at INSEAD business school and is the author of Asian Brand Strategy and co-author of The Future of Branding (2016), said that the country has all the elements to take its brands on the global stage.

“You are English speaking; you’ve got a long history; you were part of the colonized, you’ve got a bit of Spanish heritage and an influential culture, you have been influenced by traders by a lot of cultures over the years. You’re very nice people, you read a lot of popular culture, gaming, music, all those content pieces that you need to have to weave that into your brands,” he said.

As more than 99% of the business establishments in the Philippines are micro, small and medium enterprises (MSMEs), most of which are family-owned, empowering Filipinos with the knowledge of how to build their brands can raise countless communities out of poverty.

Government support, however, is crucial to such an effort, as many MSMEs are struggling to get by and cannot afford to be bolder with their businesses. Mr. Roll pointed out that the Philippines can learn a lot from the efforts of countries like China and Singapore, which have successfully brought many of their citizens into the middle class through government support and entrepreneurship programs which taught them operational and technical skills, as well as the know-how to take advantage of digital technology.

“If you’re a small business owner, I mean, you cannot take two years to do this. Because you are fighting every day for your market to keep those five, 10, 15 people that you employ, it’s a survival game,” he said.

Digital training, in particular, is crucial in a world of rapid change. Though many Filipinos are digitally savvy, there still exists significant hurdles before digital transformation could become the norm.

“You’re definitely digitally savvy, and you’ve got very good digital marketing as you’re on social media. But that’s only one level of digital transformation. And often people confuse the two. Digital marketing and all that comes with that, it’s a very important part of it. And it’s normally where you start. But digital transformation ultimately, is about completely transforming everything that also needs to relate to all the functions supply chain to finance, procurement to legal culture and talent,” he said.

Ultimately, the country has its work cut out for it. In light of the vast opportunities brought about by globalization and digital technologies, the Philippines and its brands could be that much more prominent on the world stage.

“I think there’s an untapped opportunity for the Filipino brands to be a little bolder on a regional level. Because once you bring a brand out in the world, the way I see it, yes, it’s good for the company, and it’s going to create jobs, and it’s gonna create GDP, it’s going to create currency, all that kind of all the business KPIs. But there’s something which is much more unique. It’s also going to bring the face of a country to other people,” Mr. Roll said.

Mr. Roll, in partnership with the Philippine Association of National Advertisers (PANA), held this year’s Brand Masters Sessions on Oct. 2, focusing on Asian Brand Strategy. In line with its thrust of helping its members and the advertising industry to champion courageous and responsible brand building, the organization created the PANA Brand Master Sessions — a mentoring event that brings the mastery of global caliber experts to Manila.

Solar could rival coal as energy source

SOLAR ENERGY could become the dominant resource of prospective power plant projects in the coming years with a 17.9% share, outpacing coal-fired facilities’ 17.15%, according to the latest data from the Department of Energy (DoE).

This is the picture of the country’s future new power plants if the project proposals — or what the department calls “indicative” projects — reach financial closing or if they have forged bank financing to proceed to construction.

Based on submissions to the DoE as of August, renewable energy taken as a whole will account for the bulk at 20,876.4 megawatts (MW), or 32% of the total indicative projects at 63,383.6 MW.

Renewables consist of geothermal, hydropower, biomass, solar and wind energy.

However, the DoE has been saying that indicative projects may not turn into “committed” projects, or those that are able to reach a financial close.

Still, the figures are a departure from the country’s capacity mix, which as of June 2019 was dominated by coal with a 39.2% share in terms of installed capacity and 41.2% in dependable capacity. The combined share of renewables as of midyear was at 30.4% in terms of installed capacity and 31% in dependable capacity.

DoE officials did not immediately respond when asked about factors behind the bigger share of solar among indicative projects, but they had pointed to new regulations boosting the development of renewable energy.

Earlier this month, DoE Undersecretary Felix William B. Fuentebella said the department removed the pre-development phase for solar farms, cutting the completion time for such projects. “For as long as you get a possessory right on top of a rooftop or in a water area or in a hydro facility… build it,” Mr. Fuentebella explained. “You don’t have to own it.”

“They have to submit a possessory rights on the contract area that they are going to develop so they will start with construction immediately,” said Marissa P. Cerezo, a director at the DoE’s Renewable Energy Management Bureau.

The DoE data also show natural gas accounting for the third-biggest share at 13.82%, outpacing hydropower’s 8.02%.

Luzon, the Visayas and Mindanao present indicative power plant projects that are dissimilar to each other. In Mindanao, for instance, the proposed projects in the coming years will be dominated by coal-fired facilities at 42.3% of the total, with hydroelectric power and solar farms trailing with a share of 27.1% and 25.7%, respectively. — Victor V. Saulon

RE growing capacity but needs policy, fund support

By Cathy Rose A. Garcia
Associate Editor

ROME, ITALY — Renewable energy (RE) capacity is increasing around the world, but more needs to be done to address challenges in policy, financing and grid integration, experts said in a forum here last week.

At the Global Experts Meetings on Frontiers in Biofuels & Bioenergy and Green Energy, Hallam Energy Director Abhishek Asthana said renewable energy capacity growth could be higher by as much as 25% “if regulatory, policy and financial challenges are addressed,” with China and European Union accounting for half of the upside potential.

Citing data from the latest International Energy Agency (IEA) renewables report, he said the RE capacity installation last year was led by solar photo voltaic (PV), followed by wind, hydro and bioenergy.

“In 2018, the new RE installations added 177 GW of capacity. Is that enough? It’s impressive, but capacity has to grow by 300 GW every year on an average by 2030 so we can reach the (environmental) goals of the 2050,” Mr. Asthana said, referring to the European Union’s plan for net-zero carbon emissions by 2050.

He said the overall the global RE capacity would grow to one terawatt (equivalent to one trillion watts) by 2023, led by China and the European Union. In an accelerated scenario, the figure will jump to 1.3 terawatts.

For the Association of Southeast Asian Nations (ASEAN), Mr. Asthana said the RE capacity would grow by 40% of the current value or 22 GW to reach a total of 80 GW by 2023.

“The technologies will shift from currently hydropower to bioenergy, wind and solar PVs… Overall, RE covers less than a fourth of electricity growth. It’s still small and ASEAN countries are lagging behind,” he said.

Asked why ASEAN countries are falling behind in RE capacity growth, Mr. Asthana said: “If there are no government policies to drive the growth and are not adequate, it will not happen.”

Mr. Asthana, who helms the energy research group of UK’s Sheffield Hallam University, said government policy is “key to attracting investments in renewables, and ensure appropriate market design for reliable and cost effective grid integration.”

“Greater use of solar, wind and bioenergy, together with energy efficiency and technologies is needed, which will cause emissions to peak immediately but decline in the long term. Solar PV will lead the renewables growth in the next five years, and its untapped potential is still huge,” Mr. Asthana said.

For bioenergy to gain ground, he said government policies, incentives and strict sustainability regulations are needed.

NEW TECHNOLOGIES
At the same time, new renewable energy technologies are expected to help countries reduce global emissions within the next three decades.

Koji Hashimoto, a professor emeritus of Tohoku University Institute for Materials Research, has developed a technology that he said would “supply renewable energy to the world in the form of synthesized natural gas methane by electrolytic hydrogen generation and subsequent methane formation from hydrogen and captured carbon dioxide.”

In his presentation at the conference, Mr. Hashimoto said that if a natural gas plant were to use the technology, it will generate more power at 2.6 kWh and 940 grams (gm) of carbon dioxide. To compare, a coal power plant will produce 1 kWh and generate the same amount or 940 gm of carbon dioxide.

“Natural gas is better than coal. We collaborated with natural gas company because they need to purify the natural gas. They need to release carbon dioxide. But they feel guilty to emit carbon dioxide… They wanted to collaborate with us to convert all carbon dioxide to methane using our technology,” Mr. Hashimoto said in an interview on the sidelines of the forum.

Some of his former students are part of a company Hitachi Zosen Inova, a clean tech company that is working to deliver the technology for a power-to-gas plant in Japan. The goal of the power-to-gas technology is to “balance the supply and demand for power in electricity networks with renewable energy.”

However, Mr. Hashimoto said the ultimate goal is to use renewable energy in the future. He noted European cities, particularly in Germany, are already thinking of using 100% RE sources.

“For the use of only renewable energy, we need to store the surplus electricity (to address the issue of intermittent power). The most convenient and easily applicable technology to store the surplus electricity is the formation of methane. If we regenerate steady electricity from methane the whole world can keep the sustainable development only by renewable energy,” he said.

Alex Van den Bossche, a professor at Ghent University in Belgium, said that the use of the best available technologies today can help countries achieve net-zero carbon emissions by 2050.

“At a first sight, 20% CO2 or even net-zero in 2050 seems an almost impossible task. However, if the best available technologies of today are combined, it seems more feasible than ever. Not forgetting that it will take time and effort to develop and implement these techniques,” he said.

Among these include the use of full PV roofs to provide heating for homes, and the development of electric ultralight vehicles.

“One should not be happy with small improvements, but rather think in a technology in large steps that gradually penetrates the society. It is even possible at an affordable cost, but it might be a slightly different living style, but where the major part of activities is still possible. The problem will be to convince the society that ‘business as usual’ and some small changes are not enough,” Mr. Van den Bossche said.

90% of LRT-1 Cavite extension right of way acquired — LRMC

LIGHT RAIL Manila Corp. (LRMC), operator of Light Rail Transit Line 1 (LRT-1), said 90% of the right of way for the Phase 1 of the LRT-1 Cavite Extension Project has been acquired.

“We have over about 90-plus percent of the right of way resolved, and we are confident that as we build the system, the right of way will be delivered on time,” LRMC President and Chief Executive Officer Juan F. Alfonso told reporters, referring to Phase 1 of the LRT-1 Cavite Extension Project, on the sidelines of the ribbon-cutting ceremony for the LRT-1 EDSA Station Expansion Project in Pasay City on Monday.

The P64.9-billion LRT-1 Cavite Extension Project, a public-private partnership (PPP) venture which the National Economic and Development Authority Board first approved in November 2013, aims to add an 11.7-kilometer Baclaran-Bacoor, Cavite segment to the existing 18.1-kilometer train line. The new stretch will have eight stations.

The first phase of the extension consists of a 7 km stretch with five stations between the Redemptorist Church area in Baclaran and Dr. Santos Ave. in Parañaque. Mr. Alfonso said piling works for the first phase are “continuing,” confirming partial operability by the “end of 2021.”

The remaining stations between Las Piñas and Niog in Bacoor, Cavite are scheduled for completion in 2022.

Once LRT-1’s Cavite extension opens to the public, the Department of Transportation expects daily ridership along the entire line to increase to 800,000 passengers from 500,000 currently, and travel time Baclaran-Bacoor travel time to be cut to 25 minutes from up to two hours currently.

In a news statement on Monday, the LRMC said the expanded EDSA Station of the LRT-1 now includes new ticket booths, comfort rooms, LED lights, interior paint jobs, floor finishes and a ramp for the disabled.

“The connecting bridge also comes with a new roofing system and architectural finishes, while the southeast leg of the station gets a new fire exit and a wider space, with the demolition of old ticket booths,” it added.

It said the EDSA Station expansion is being undertaken in conjunction with the LRT-1 Cavite Extension Project as well as ongoing modernization “to increase efficiency, safety, environmental friendliness, commuter friendliness, train capacity and quality.”

The EDSA Station, which serves more than 52,000 passengers daily on weekdays, is the LRT-1’s second busiest stop.

LRMC is the joint venture of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. It holds the P65-billion, 32-year PPP contract to operate LRT-1 and build its extension to Cavite.

Metro Pacific Investments Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains interest in BusinessWorld through the Philippine Star Group which it controls. — Arjay L. Balinbin

J.P. Morgan sees PHL growth below target

J.P. MORGAN has joined a slew of multilateral agencies, debt raters and other organizations in projecting Philippine gross domestic product (GDP) growth this year and in 2020 below government targets.

Investment bank J.P. Morgan’s “Global Watch: Asia” Economic Research note that was e-mailed to journalists on Monday showed Philippine GDP growth projections of 5.5% this year and 5.7% next year which are both below the official target bands of 6-7% and 6.5-7.5% for 2019 and 2020, respectively.

GDP growth, which clocked in at 6.2% last year, came in at 5.6% and 5.5% in the first and second quarters of 2019, yielding a 5.5% average last semester.

Among the 10 Emerging Asia economies, the Philippines 5.5% GDP growth outlook for this year is just above the 5.3% forecast average for the region and will be the third-fastest next to China’s 6.1% and India’s 6.2% and followed by Indonesia’s 4.9% and Malaysia, 4.3%.

And in the face of slowing inflation — projected at the central bank’s latest 2.5% forecast this year — J.P. Morgan said it expects the benchmark overnight reverse repurchase (RRP) rate to be cut by another 25 basis points (bps) to 3.75% in the Dec. 12 policy review after a cumulative 75 bps reduction this year left it at four percent as of September. The bank expects that rate to steady within 2020’s first half.

For this semester, J.P. Morgan cited an expected “capex and infrastructure recovery following the sharp decline earlier this year” due to the three-and-a-half month delay in national budget enactment and the 45-day ban on public works ahead of the May 13 midterm elections that resulted in muted infrastructure work in the first six months.

At the same time, the bank said data indicate that there is “no evidence yet of a material recovery” despite signs that consumption in the private sector has started to normalize in terms of motor vehicles sales and growth of household credit.

The Budget department reported yesterday that the government’s Notice of Cash Allocation (NCA) utilization rate stood at 97% as of September, now the same as a year ago, translating to P2.202 trillion used out of the P2.261 trillion released during the period. A higher NCA utilization rate reflects agencies’ timely disbursement of allocated funds to implement projects. — Beatrice M. Laforga

Meralco group’s market share shrinks after RCOA

MANILA ELECTRIC Co. has seen a decline in market share. — BW FILE PHOTO

THE RETAIL electricity supply business of Manila Electric Co. (Meralco) has significantly lost market share since rules on retail competition and open access (RCOA) were implemented, although the distribution utility has gained some ground in recent months, the latest report from the Philippine Electricity Market Corp. (PEMC) showed.

“Over the years, a significant drop in the Meralco group’s share was observed. From about 63% at the start of RCOA implementation in July 2013 billing month, its share was halved to 32% by the end of September 2018,” the company said in its report for the second quarter.

“Its share started to slightly increase thereafter that by the end of June 2019 billing month, the Meralco group’s share in terms of the number of registered Contestable Customers served, was recorded at about 35%,” said PEMC.

It said the increase in the share of the Meralco group was attributed to the registration of 16 new contestable customers — or those whose average monthly consumption in the past year reached one megawatt — during the first quarter of the year.

Also, 13 new contestable customers during the second quarter were added to Meralco’s client list.

PEMC also said during the first quarter, 18 contestable customers switched from Phinma Energy Corp. to suppliers under the Meralco group, and four contestable customers switched from suppliers under the Ayala group.

By the end of the June billing month, about 36% of all registrants were supplied by the Meralco group. This was followed by the Aboitiz group at a 21% share, the San Miguel group at 20% share, the Ayala group at 10% share and Phinma Energy at 2%.

Majority of the registered contestable customers were located within the Meralco franchise area.

PEMC’s report said changes were observed in the shares of participants, which were driven by several factors such as the participation of new suppliers, the registration of new contestable customers and their choice of supplier, and the switching of already registered contestable customers from one supplier to another.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Italpinas expects sales to reach P3B next year on new launches

By Denise A. Valdez, Reporter

ITALPINAS DEVELOPMENT Corp. (IDC) is expecting to reach P3 billion in sales next year with the scheduled launch of the next phases of its mixed-use condominium projects in Batangas and Cagayan De Oro.

In a press briefing after the company’s stockholders’ meeting in Makati City yesterday, the listed property developer said it will introduce in 2020 the second phase of Miramonti Green Residences in Sto. Tomas, Batangas and the third phase of Primavera City in Cagayan De Oro City.

The first tower of the Miramonti Phase 2 is projected to generate P1.8 billion in total sales, while Phase 3 of Primavera City will add more or less P1.2 billion.

The Miramonti expansion, which will lie near the tail of South Luzon Expressway, will cover more than 5,000 square meters and have 21 stories. Primavera Phase 3, on the other hand, will have around 11 stories.

These two projects to be launched next year are seen to be the main revenue drivers of IDC.

However, the company said it is always on the lookout for opportunities to further expand its business.

“Of course we want to take full advantage of these areas where we are developing, but we are continuously scouting for new land… (Nothing is final yet), but we’re actively talking with potential partners or landowners,” IDC Chairman and Chief Executive Officer Romolo V. Nati told reporters yesterday.

The company is working to sustain the year-on-year growth of its net income, which has been doubling since 2016. Its net income was able to breach the P100-million mark last year with a 101% growth to P120.56 million.

“In terms of earnings, we would like to continue the same trend (in 2020). As you noticed, we practically have been able to double our net income every year,” Mr. Nati said.

In a statement yesterday, the company said it has already recorded a combined revenue of more than P1.44 billion from Miramonti and Primavera during the first nine months of the year.

IDC currently has an application with the Securities and Exchange Commission (SEC) to issue 33.34 million preferred shares priced at P15 apiece, with an over-allotment option of 10 million shares. This will raise up to P650 million for the company, which it said will be used to fund its capital expenditures (capex) and land acquisition.

“The main use of proceeds will be land banking and capex. it’s not for operations… But we’re also exploring JV (joint venture) partnerships or maybe portion JV and cash,” Mr. Nati said.

IDC is targeting to make the issuance of preferred shares before the year ends.

MerryMart signs first franchise agreement

MERRYMART Grocery Centers, Inc. has signed its first franchise agreement.

MerryMart Grocery Centers, Inc. of businessman Edgar J. Sia II has inked its first franchise agreement for a MerryMart Store after opening its first supermarket in April.

Under parent company Injap Investments, Inc., the MerryMart Group — through its various formats MerryMart Grocery, MerryMart Market, and MerryMart Store — aims to expand to 1,200 branches nationwide.

“We would like to take advantage of our group’s know-how in franchising, and our familiarity of the Philippine market terrain, just like in the rollout of Mang Inasal, CityMall, Hotel101 and CentralHub network. We believe this step will further strengthen the market grip of all the industries that our group is involved in,” Mr. Sia said in a statement on Monday.

The MerryMart Store is the group’s household essential store, which includes mini-grocery, pharmacy, and personal care sections.

The new franchise in Capiz province will be run by Mr. Arturo Oñas, who was also the first franchisee of the Mang Inasal restaurants founded by Mr. Sia.

“I immediately reached out to MerryMart to apply for a franchise because I know this will again become a highly successful venture,” Mr. Oñas said in the statement.

“I can still remember when I applied for a Mang Inasal franchise early on about 12 years ago and became the first franchisee of Mang Inasal, now I operate a chain of 23 Mang Inasal franchise stores, and I hope to also grow my MerryMart franchise in the years to come.”

The company said that the on-average 250-square-meter MerryMart Stores will bring growth opportunities.

“The 3-in-1 innovation and expansion through franchising is expected to bring in operational efficiencies and enable MerryMart to rapidly scale up and build up durable competitive advantage. Franchising also creates business opportunities for many budding entrepreneurs,” the company’s statement said.

MerryMart Group currently has seven branches under simultaneous construction. The company aims to generate P120 billion in revenue by 2030.

The next MerryMart is set to open at the ground floor of the new Ayala Malls Manila Bay in Parañaque.

Jollibee Foods Corp. attained full-acquisition of Mang Inasal Philippines in 2016.

Injap Investments Inc. is the holding company for MerryMart, along with Hotel of Asia, Inc., and Deco’s Lapaz Batchoy, and People’s Hotel. It also has joint ownership of DoubleDragon Properties Corp. with Tony Tan Caktiong’s Honeystar Holdings Corp.

Shares in DoubleDragon Properties Corp. closed at P20.60 each from P20.45 at the stock exchange on Monday. — Jenina P. Ibañez

Stop-motion film wins QCinema

GLENN BARIT’S debut feature Cleaners, a stop-motion film made from photocopied stills, won QCinema International Film Festival’s top award along with the Best Screenplay and the Audience Choice Awards during the awarding ceremony held on Oct. 18 at the Novotel Manila Araneta Center in Quezon City.

The film, set in Tuguegarao in 2008, is a coming-of-age anthology about high school classroom cleaners. It competed against two of the film festival’s Filipino film grantees and five Asian films in the Asian Next Wave category of the festival. (See review on this page. — Ed.)

Rae Red’s Babae at Baril, about a department store saleslady whose life changes when she finds a gun at her doorstep, won Best Director, Best Actress for Janine Gutierrez, and Gender Sensitivity Award at the festival.

The Best Actor trophy went to Por Silatsa of the Laotian film The Long Walk by Mattie Do.

The festival features 70 films from the Philippines and around the region in a bet to become the “premier film festival in Southeast Asia” according to festival organizers.

The QCinema film festival runs until Oct. 22 at Gateway Mall cinemas, Ayala Trinoma cinemas, Robinsons Galleria cinemas, the UPFI Cine Adarna, Cinema 76 Anonas, and Cinema Centenario.

Below is the complete list of winners:

• Best film: Cleaners by Glenn Barit

• Best Director: Rae Red (Babae at Baril)

• Best Actor: Por Silatsa (The Long Walk)

• Best Actress: Janine Gutierrez (Babae at Baril)

• NETPAC Jury Prize: Suburban Birds by Sheng Qui

• Special Jury Prize: Tokwifi by Carla Pulido Ocampo

• Best Editing: Lee Chatametikool for Nakorn-Sawan

• Best Screenplay: Cleaners by Glenn Barit

• Best Short Film: Judy Free by Che Tagayamon

• Audience Choice Award (short film): Excuse Me Miss Miss Miss by Sonny Calvento

• Audience Choice Award (full-length): Cleaners by Glen Barit

• Gender Sensitivity Award: Babae at Baril by Rae Red

• Lifetime Achievement Award: Vic del Rosario (Viva Films) — Zsarlene B. Chua

1...10,32510,32610,327...14,238Page 10,326 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube