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Emerging markets more upbeat in trade outlook — study

By  Anna Gabriela A. Mogato
Emerging economies are more confident that the global trade system will be restored than developed economies, Bloomberg found in its New Economy global survey released on Monday.
The study, which surveyed 2,000 business professionals in 20 markets, showed that 63% of respondents coming from emerging economies expressed confidence in the future of global trade, with only 36% from developed economies sharing the same sentiment.
Overall, the survey found that 70% of respondents have a positive outlook on the future of global trade, with 55% saying they see more global trade in five years’ time.
In the Philippines, the survey found that 51% of the respondents believe the global trade system will soon be restored, while 76% expressed confidence that there will be more trade in five years’ time.
The stark difference in outlooks between emerging and developed economies may suggest that “for emerging markets, the costs of the current slide towards a trade war could be less than expected,” Bloomberg Chief Economist Tom Orlik said.
“If businesses retain that fundamental optimism about the outlook for trade, continued hiring and investment could propel growth forward, even as tariff barriers rise,” he added.
Citing the International Monetary Fund, Bloomberg noted that the global growth forecast was reduced to 3.7% from 3.9%. Among survey respondents, 49% pointed to the US-China trade tensions as the reason behind hampered global growth.
Confidence in better global trade coming from emerging economies was most widely rooted in technology as the driver of their future. Some 66% of respondents said that they are actively adopting new technologies, particularly artificially intelligence, with 56% upskilling their workforces and taking additional professional courses. Specifically in the Philippines, 84% of the respondents said they are setting themselves up to adopt new technologies.
Bloomberg also noted that the 35% of the respondents in emerging economies acknowledged the need to start new business ventures, compared to the 10% from developed economies expressing the same.
The survey also noted that 71% of respondents in the Philippines saw that being environmentally conscious is needed to prepare for the future, aside from learning new technologies.
Globally, almost half of respondents from emerging economies saw the need for social consciousness in business. This, compared to the 37% from developed economies reporting the same.
Bloomberg Media Group Chief Executive Officer Justin B. Smith in the statement said that the survey shows the public sentiment on a world economy in transition, which will be further explored in its New Economy Forum next month.
Moving forward
Given the rise of new economies, 50% of global business professionals covered in the survey said that the globalization model focusing on multi-lateral free trade and open borders would only be effective if tweaked to spread its benefits evenly to reach more constituencies.
Amid this growing confidence, 50% of respondents in the Philippines. said that globalization benefits both developed and emerging economies. To navigate the uncertainty towards globalization, 35% of these respondents said that global businesses should increase investments in new economy markets.
While most respondents pointed to the need to adapt new technologies and become more environmentally conscious, global governance was noted to be the most critical concern among all global challenges which needs action.
To address this, 75% of respondents noted the need for world leaders and their governments to take initiative. Only 51% of respondents in the Philippines agreed with this sentiment.
Some 10%, on the other hand, said that the private sector should be taking the lead to further develop global trade.
Smith agreed with the minority, saying that the private sector should step up where governments have failed.
“New economies are playing an expanded role across trade and businesses today, and with a changing new world order, there is an urgent need for real dialogue and action on the long-term implications of this transitional moment,” he said.

Labor group says to seek bigger Metro Manila wage hike

THE COUNTRY’S biggest labor group plans to raise today its daily minimum wage hike petition for Metro Manila’s private sector workers in the face of a rising inflation rate, according to a notice which the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) e-mailed to journalists on Sunday.
The National Capital Region (NCR) Regional Tripartite Wages and Productivity Board is scheduled to hold on Monday, Oct. 22, consultations with labor sector leaders. The Employers Confederation of the Philippines (ECoP) announced last Oct. 19 that the NCR wage board will meet next with leaders of employers’ groups on Oct. 24, Wednesday (9-11 a.m. at D Circle Hotel, 2063 M.H. Del Pilar Malate, Manila). A public hearing on NCR wage adjustments will take place on Oct. 26, Friday (9-11 a. m. at Room A & B, 2nd floor of the Philippine Trade Training Center, PTTC Building at Senator Gil J. Puyat Ave corner Roxas Boulevard in Pasay City).
An ALU-TUCP statement quoted its spokesman, Alan A. Tanjusay, as saying it “will submit a supplementary position paper amending [its] P320 daily wage hike petition filed in June… to P334 a day.”
Metro Manila’s current daily minimum wage for private sector workers now amounts to P475 for those in agriculture, retail/service businesses employing up to 15 workers and manufacturing establishments regularly employing less than 10 workers; and P512 for non-agriculture workers.
Mr. Tanjusay said in yesterday’s statement that with nationwide headline inflation clocking in at a fresh nine-year-high 6.7% in September, compared to 5.2% in June when his group filed the current P320 petition, ALU-TUCP “deemed it necessary to raise the amount to reflect the current conditions around workers and their families.”
September marked the ninth straight month of inflation rate increase, with monthly rates since March breaching the central bank’s 2-4% full-year target for 2018.
Year-to-date headline inflation clocked in at five percent against that full-year target, with the rate for Metro Manila logging 5.5% and the one for areas outside NCR at 4.8%.
ALU-TUCP’s statement on Sunday said that “with the continuing increases in prices of goods and services since January… the value of P512 (daily minimum wage) fell… to a meager P340 a day.”
Sought for comment, ECoP Acting President Sergio R. Ortiz-Luis Jr. said in a telephone interview that “… P334 is really way off what should be reasonable,” noting “[t]hat P334 is more than 60% of the present minimum wage.”
He echoed ECoP’s earlier warnings that increases in daily minimum wage hit micro, small- and medium-scale enterprises (MSMEs) hardest. MSMEs account for 99% of businesses and 60% of jobs in the Philippines but contribute only 36% of gross value added, according to the May 2016 Investment Policy Review of the Organization for Economic Cooperation and Development.
“We expect that by the end of the month, we will be able to know how much is the wage hike amount,” Mr. Tanjusay said in the statement on Sunday, with the increase to take effect “by mid-November.”
Labor Secretary Silvestre H. Bello III had said in September that Metro Manila’s private sector minimum wage earners can expect an increase of at least P20 some time this month.
So far, 12 of the country’s 17 regions have increased their daily minimum wage rates: Cordillera Administrative Region, Ilocos Region (Region 1), Central Luzon (Region 3), Calabarzon (Region 4A covering Cavite, Laguna, Batangas, Rizal, Quezon), Bicol Region (Region 5), Western Visayas (Region 6), Central Visayas (Region 7), Eastern Visayas (Region 8), Zamboanga Peninsula (Region 9), Davao Region (Region 11), Soccsksargen (Region 12 covering South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City) and the Autonomous Region in Muslim Mindanao. — with Gillian M. Cortez

Fitch eases Philippine GDP growth projection

By Melissa Luz T. Lopez
Senior Reporter
FITCH RATINGS has tempered its growth forecast for the Philippines to match the low end of the government’s projection, in the wake of last semester’s slower expansion and amid rising interest rates.
The credit rater scaled down its full-year estimate for Philippine gross domestic product (GDP) growth to 6.5%, lower than the 6.8% given in July.
“The downward revision to our growth forecast reflects our expectation that the cumulative rate hikes by the Bangko Sentral ng Pilipinas (BSP) of 150 basis points (bp) so far this year, would support some moderation in growth,” sovereign analyst Sagarika Chandra said in an e-mail interview.
“Further, GDP growth in the first half of 2018 of 6.3% was weaker-than-expected, which is also a reason for the downward revision to our growth forecast.”
The Philippine economy grew by a slower-than-expected six percent in the second quarter as household spending cooled at a time of surging consumer prices.
Both the second-quarter and first-half GDP growth rates compare to 6.6% a year ago.
The central bank has also stepped in to raise rates in four consecutive meetings since May, including a back-to-back 50-bp hikes in August and September in an attempt to rein in inflation expectations.
Inflation averaged five percent in the nine months to September, well above the central bank’s 2-4% target.
Fitch’s slower growth forecast matches tempered outlooks of the World Bank and the International Monetary Fund, while the Asian Development Bank pencilled in an even lower forecast of 6.4% earlier this month.
Economic managers of President Rodrigo R. Duterte followed suit and announced on Tuesday that GDP growth will likely clock in at 6.5-6.9% in 2018, slower than the original 7-8% target, amid escalating global trade tensions, tighter credit conditions and elevated world crude prices.
The Philippines holds a “BBB” rating — a notch above minimum investment grade — with a “stable” outlook from Fitch. The debt watcher said this rating balances a “favorable” growth outlook and modest debt burden against a lower per-capita income as well as “weaker governance and business environment indicators” compared to those of similarly rated economies.
Prospects look better in the next two years, Ms. Chandra said. “… [W]e expect the economy to grow at 6.7% in 2019 and 2020 driven by strong domestic demand,” she explained. “We think policy tightening by the BSP of cumulative 150 basis points so far in 2018 should help to keep inflationary pressures under control.”
The projection compares to the 7-8% annual growth goal set by the government for 2019 and 2020.

Gov’t charting return to foreign debt marts

THE GOVERNMENT is now charting the country’s return to the dollar, euro, yuan and yen debt markets, the Finance chief said on Friday last week.
“We… told the other bankers that our policy now is not to be absent from any major market for long periods,” Finance Secretary Carlos G. Dominguez said at the Finance department’s headquarters in Manila, recalling discussions on the sidelines of economic managers’ briefing in London last month.
“We are going to explore doing something in England, and now we are getting an invitation from some of the ambassadors from Europe to have a road show again,” said Mr. Dominguez when asked about a possible bond offer there.
“I don’t know if we can finish the euro [bond sale] this year, but certainly next year,” he added when asked for a time table.
The government last borrowed euros in 2010, raising €75 million in three- and five-year multi-currency retail Treasury bonds that also raised $400 million. It also raised €500 million in 10-year debt in 2006 in a multi-currency global bond offer along with $1.5 billion.
“The euro debt market, in fact I also told [National Treasurer Rosalia] Lea [V. de Leon] maybe we should make a private presentation to the wealth fund of Norway. That’s the biggest in the world,” said Mr. Dominguez.
He noted that the timing and the size of the offer would depend on prevailing market conditions, saying: “At this point in time, we will feel the market first.”
Moreover, he said that the government’s dollar-denominated bonds usually offered late in January will likely be sold ahead of schedule due to external uncertainties caused by the Federal Reserve’s continued monetary policy tightening and the US’ trade war with China.
“I asked Lea [Ms. De Leon] to please bring the schedule forward rather than wait for next year because of all the announcements and the uncertainties that are, I think, going to start hitting more, impacting the market more, better make the issuance program earlier rather than keep it at the end of January,” he explained.
He said that the size will be “about a billion or two billion (US dollars) more or less.”
Mr. Dominguez also said that they will return to the renminbi and yen debt marts.
‘Yung samurai we are going to come back within 12-18 months from August. In China, we will come back to the market again within 12-18 months from last March,” he said.
This year, the government raised $2 billion in 10-year securities with $750 million in new money and swapping the balance in a liability management exercise — the second dollar bond offer of the Duterte administration.
It also raised $230 million in its maiden renminbi-denominated “panda” bond float in March consisting of three-year notes; and $1.39 billion worth of three-, five-, and 10-year papers in August in its return to the “Samurai” bond market after eight years.
The government has programmed a 75-25 ratio in its borrowing plan for 2019-2022, favoring local lenders. — Elijah Joseph C. Tubayan

PSE on track to breach P200-B fund-raising target

THE PHILIPPINE STOCK Exchange, Inc. (PSE) is optimistic it can breach its P200-billion full-year target for fund-raising activities at the local bourse, as the share sale of San Miguel Corp.’s food and beverage unit pushes through in the fourth quarter.
PSE Chief Operating Officer Roel A. Refran said in a panel discussion at the Philippine Investments Forum in Makati last Friday that capital raised at the stock exchange has so far reached P181.68 billion. The figure already exceeds the P160 billion worth of funds raised at the PSE in 2017.
“We’ve been hoping to hit that P200 billion (target) since Hans (former PSE President Hans B. Sicat). We’ve never reached that,” Mr. Refran told reporters in Filipino on the sidelines of the forum.
The remaining three months of 2018 will see the conduct of a follow on offering by San Miguel Food and Beverage, Inc. (SMFB). The food and beverage giant targets to sell up to 522.96 million common shares at P85 to P95 each. This excludes an over-allotment option of up to 15% of the offer shares.
Without the over-allotment option, this could bring in P49.68 billion worth of fresh funds for SMFB, allowing the PSE to hit its fund-raising target for the year.
SMFB will announce the final price of the share sale on Oct. 25, with the settlement and delivery of shares scheduled for Nov. 12.
The expected record-breaking fund-raising activity comes amid the persistent volatility at the PSE for most of the year, which has prompted two firms — Del Monte Philippines, Inc. and Cal-Comp Technology (Philippines), Inc. — to push back their initial public offerings (IPO) until market conditions improve.
Funds raised as of September came mostly from stock rights offerings, including P758.3 million from PetroEnergy Resources Corp., P20 billion from Robinsons Land Corp., P5 billion from Integrated Micro-electronics, Inc., P2.898 billion from The Philippine Stock Exchange, Inc., P60 billion from Metropolitan Bank and Trust Co., P50 billion from the Bank of the Philippine Islands, and P15 billion from Rizal Commercial Banking Corp.
Only one company braved to enter the stock exchange this year, as property developer and construction firm D.M. Wenceslao, Inc. raised P8.15 billion from its IPO for its expansion plans.
Global Ferronickel Holdings, Inc. and DoubleDragon Properties Corp. also conducted follow-on offerings, raising P517.5 million and P4.5 billion, respectively.
Funds raised also includes those from private placements of IRC Properties, Inc., China Banking Corp., Basic Energy Corp., and Golden Bria Holdings, Inc.
Meanwhile, Mr. Refran said the PSE also targets to launch the program for securities borrowing and lending and short-selling before the year ends.
Short selling pertains to the sale of a security which “the seller does not own or any sale which is consummated by the delivery of a security borrowed by, or for the account of the seller.”
The approved guidelines indicate that only PSE member stocks and exchange traded funds are eligible for short selling, in addition to a limit of 10% of the outstanding shares of an eligible security to be sold.
The PSE executive explained that they are now finalizing the systems for short selling and SBL, which will be transacted through the Central Securities Depository of the Philippine Depository & Trust Corp.
Short-selling and SBL will also be made available to both local and foreign investors. — Arra B. Francia

MPTC to invest $20M in Indonesian toll road

THE Metro Pacific Tollways Corp. (MPTC) said it is investing around $20 million for a new project under its Indonesian subsidiary PT Nusantara Infrastructure Tbk.
MPTC President Rodrigo E. Franco told reporters on Friday the company is working on the Pettarani project, which is an extension of a toll road going to the airport in Makassar, the capital of South Sulawesi province.
“They are doing a project… may tinatawag silang Pettarani project [they have something called Pettarani project]. In fact that would require funding eventually. For that, we’re looking at additional $20 million,” he said.
In a text message on Sunday, Mr. Franco noted the funds will be internally generated.
“We can just source the funding need from internal cash. Pettarani project is an elevated toll road in the port city of Makassar in South Sulawesi,” he said.
The 4.4-kilometer A.P. Pettarani elevated toll road will connect Soekarno-Hatta Port (Makassar) and Sultan Hasanuddin Airport to Makassar’s business district and city center. Construction of the toll road started in April.
Last month, the Indonesian unit of MPTC, PT Metro Pacific Tollways Indonesia (PT MPTI), raised its stake in PT Nusantara to 77.94% for P2.86 billion.
Aside from Indonesia, MPTC also has stakes in infrastructure companies in two other Southeast Asian countries, namely: Don Muang Tollway Public Company Limited in Thailand up to 29.45%, and CII Bridges and Roads in Vietnam up to 44.9%.
In the Philippines, MPTC operates three toll roads: the North Luzon Expressway (NLEx), Subic Clark Tarlac Expressway and Manila-Cavite Expressway.
MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

ABS-CBN forges deal with JKN Global

ABS-CBN Corp. said it signed a deal with Thai content provider JKN Global Media Public Co. Ltd., which will broadcast more Filipino shows in Thailand and Laos.
“More Filipino dramas are set to air in Thai and Laos television after JKN Global, the top content provider and channel operator in Thailand, bought over 290 hours of content from ABS-CBN,” the company said in a statement on Friday.
ABS-CBN said among the shows purchased by JKN Global are “Brothers” (“FPJ’s Ang Probinsyano”), “La Luna Sangre” and “Till I Met You.”
The two companies first signed a deal in 2016, with ABS-CBN saying its shows such as “Got To Believe,” “The Legal Wife,” and “Bridges of Love” became hits in Thailand.
ABS-CBN also said they are currently discussing with JKN Global new opportunities for co-production in the future.
The listed company reported its net attributable income dropped 41% in the first half to P849.88 million, pulled by higher production costs in the second quarter. — Denise A. Valdez

Exquisite finds at Manila FAME 2018


MODES OF transportation made of bamboo; patterns representing daily life handwoven in blankets; recycled materials transformed into jewelry; and interesting pieces of furniture which serve as conversation starters are some of the products one could find among the 366 micro-, small- and medium-enterprises (MSMEs) showcased at the 68th Manila FAME fair last weekend.
The biannual event, organized by the Department of Trade and Industry through the Center for International Trade Expositions and Mission (DTI-CITEM), aims to showcase various products — from fashion to home décor and furniture — for global trade markets such as the US, Japan, Korea, and Europe.
During walk around the World Trade Center last weekend, BusinessWorld noticed how Filipino craftsmanship transforms various resources into exquisite and sustainable products.
BANATTI’S THE GREEN FALCON SERIES
Meep, Inc.’s subsidiary Banatti (derived from the Filipino word “banat” or “pull tight”) showcased The Green Falcon series of bamboo electric motorcycles. Meep, Inc. president and COO Christopher Paris Lacson designed it as a “metro bike” for the city. It runs on batteries and may also be pedalled.
Website: www.meepney.com
DESIGN EJ PASIA
Architect and furniture designer EJ Pasia presented hedonism in furniture with a Cast Away daybed. Hailing from Mindanao, Mr. Pasia expressed the simple provincial life through the piece of furniture — made of pine wood with mahogany — ideal for a poolside cabana.
Website: ejpasia.com
FINALI FURNITURE
AND HOME ACCESSORIES CO.
Established in Cebu city in 1999, Finali designs wall décor, furnishing, sculptures, and figurines. For the trade show, the brand showcased a bird-shaped seat made of rattan and Italian leather; framed wall décor of birds made of wood, steel, and banana bark; and a dog-shaped stool made of looped wire.
Website: www.facebook.com/finali.furniture
ABEL ILOCO PRODUCTS
The handwoven blankets from Ilocos Sur are designed with patterns and details — fishermen, river frogs, comets, and shields — that tell the stories of the Ilocano environment.
“We are doing efforts to educate the younger ones (weavers). When we started there were about less than 50 weavers — all in their 80s and 90s. We took on the advocacy of helping revive the dying industry of weaving,” Dina Bonnevie-Savellano, general manager of the La Bon Vie enterprise, told BusinessWorld. “Now we have younger weavers (in their 30s to 40s),” Ms. Bonnevie-Savellano said, adding that making the products available commercially helped weavers realized that weaving is a lucrative business.
Abel Iloco products are sold at SM Kultura store branches.
Prices: P350 to P7,500
Website: www.manilafame.com/webtemplate/ylocosheritageartsandcrafts/about
CRYSTAL SEAS
Promoting Mindanao’s handloom weaving and beadwork, Crystal Seas uses traditional textiles such as tinalak, yakan, and balud, as well as, pandan (screwpine) fiber for its products.
“Most of the souvenir products in Davao are not made there,” designer Carmela Alcantara told BusinessWorld. “So, it is a challenge to make beautiful things out of our traditional crafts and materials.
“We work with different communities. We don’t just buy from them but [we also] partner with them in terms of product development, improving the efficiency of processes, and inputting technology to make the materials more durable,” she said, adding that they are currently working on new products to be crafted by the disabled and out of school youth.
Prices: P1,800 to P6,000
Website: www.facebook.com/CrystalSeas/
VIRTUCIO
Virtucio designs jewelry for women made from recycled plastic bags, made by women of the Kalipi Foundation in Bohol. The plastic is cut to pieces, pressed, and melted to achieve a mosaic-like detail.
Prices: P799 to P3,099
Website: www.facebook.com/virtuciodesigns/
MELE + MARIE
The quirky handbags — mostly manufactured in Cebu City — are made of natural and industrial materials. Its signature design is the Hannah Minaudiere — a handbag which comes 24 colors made of different kinds of shells. Its current popular design is the “Love” bag which was recently used by Kris Aquino at the Crazy Rich Asians premiere in Hollywood, California.
Prices: P25,000 to P250,000
Website: www.meleandmarie.com
Michelle Anne P. Soliman

Rates of T-bills, bonds to climb

RATES of government securities on offer this week will likely climb anew amid weak demand as investors await possible policy tightening moves from the local and US central banks.
The Bureau of the Treasury (BTr) is offering P15 billion worth of Treasury bills (T-bills) today. Broken down, the Treasury plans to raise P4 billion through the three-month debt, P5 billion through the six-month papers, and another P6 billion in one-year T-bills.
The government will also auction off P15 billion in reissued seven-year Treasury bonds (T-bond) with a remaining life of six years and five months tomorrow .
Bond traders interviewed before the weekend said the T-bills on offer today will likely fetch higher yields from last week’s auction.
“For the [T-]bills, the rates will climb by around 10-20 basis points (bps) still on weak demand across-the-board,” the trader said in a phone interview.
The Treasury opted for a partial award of the T-bills last week, borrowing P7 billion out of the P15-billion program as it rejected all bids for the 91-day tenor due to higher returns wanted by investors.
Yields on the 182- and 364-day papers stood at 5.6072% and 6.256%, respectively.
For the seven-year bonds, the trader said it may fetch an average rate of 8-8.25%.
The government made a partial award of the reissued seven-year debt on Sept. 25, borrowing just P5.73 billion versus the P15-billion program.
The bonds, which carry a 5.75% coupon, fetched an average rate of 7.085%, up 110.9 bps from the 5.976% recorded on June 13.
At the secondary market on Friday, the three-month and six-month papers were quoted at 4.8339% and 5.6072%, respectively.
Meanwhile, the one-year and seven-year papers fetched 6.2589% and 7.9342%, respectively.
“Still, investors are awaiting the possible rate hike of the BSP (Bangko Sentral ng Pilipinas) as well as in the US,” the trader added.
Monetary Board (MB) Member Felipe M. Medalla said on Tuesday that the central bank “may take a pause” from further rate hikes should inflation momentum show signs of easing. However, he did not discount the possibility that commodity prices could still pick up faster.
The BSP also said on Friday that the pace of price increases could “revert more quickly” below 4% given the monetary policy tightening of the central bank as well as the measures implemented by the Executive.
The central bank has raised rates by a total of 150 bps since May as inflation maintained its ascent since the start of the year brought by surging oil prices and food supply issues exacerbated by the new taxes.
Meanwhile, the US Federal Reserve indicated in its September meeting minutes that it would stay on the course of gradual rate hikes amid “sustained economic expansion, strong labor market conditions and inflation near two percent over the medium term.”
Another trader said the expected rate hikes from the Fed may temper the improvement in bids, although it will be “negated by the recent statements from MB members.”
“I think bids will somewhat improve given the better [consumer price index] expectations for last quarter,” the second trader said in a text message on Friday, noting that he cannot provide any range for the average rate of the T-bonds on offer “given the unpredictability of the BTr.”
“One day, they say their cash position is good, then suddenly awards bonds 20-40 bps higher than the previous auction,” the trader added.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in T-bonds. — Karl Angelo N. Vidal

Japan’s Aeon to sell TADECO bananas under agri best-practices label

DAVAO CITY — Japanese retail group Aeon Co. Ltd. is including Philippine bananas sourced from Tagum Agricultural Development Company, Inc. (TADECO) for a special product line recognizing companies with Global Good Agricultural Practice (GAP) Certification.
TADECO President and Chief Executive Officer Alexander N. Valoria said the company obtained its GAP certification in November 2013, and has since been able to retain the certification.
“The benefit to TADECO will be over time as more of the market and consumers become aware of the Global GAP Certification and its advantages. Over time, we will see the marker and consumers will be demanding it,” Mr. Valoria told BusinessWorld.
He noted that TADECO, the flagship firm of the Floirendo-owned Anflo Management and Investment Corp, is the only company-wide Global GAP-certified banana company in the Philippines.
Mr. Valoria said the certification allows them to charge a premium for its products.
By next month, he added, a Web site will be launched listing products with Global GAP Number (GGN) labels to allow consumers to check where the product was made and by whom.
A Global GAP seal indicates that a company has complied with worldwide standards on food safety and sustainability, environmental protection, and worker occupational safety and health.
Aeon has a network of shopping malls, supermarkets, convenience stores, and specialty shops across Japan, China and Southeast Asia.
TADECO, the country’s biggest Cavendish banana producer and exporter, has a projected production volume this year of 32.6 million 13-kilogram boxes, which is about 10% lower than in 2017 due to unfavorable weather.
“It is still a very high production yield,” Mr. Valoria said. — Maya M. Padillo

Tech giant Google set to open 1st operations center in Philippines

By Zsarlene B. Chua, Reporter
TECH giant Google LLC is opening its first operations center in the Philippines, which will provide support for its users and customers in the United States, Australia, New Zealand, United Kingdom, as well as the Philippines.
A Google spokesperson said the company has traditionally relied on operations teams to provide customer support, and used third party suppliers.
“This worked well when we were smaller [but] like other companies, we now see the need to build out our customer support center,” the Google spokesperson told BusinessWorld.
Google follows the example of investment bank JPMorgan Chase & Co. which operates a Global Service Center in the Philippines.
The tech giant’s operations center, which is scheduled to open by the first half of 2019, seeks to employ a core team of “about 40 people.”
The Google spokesperson said the company expects to “hire increasingly by hundreds and then thousands as we build it out.”
The operations team, which Google calls operations specialists, will provide support ranging from troubleshooting issues to advertiser assistance for its products including YouTube ads, Google Pay, Google Wallet, Google Hardware and Google Maps, among others. Google Pay and Wallet are services available outside Philippines.
The Google spokesperson said the Philippines was chosen as the location of its first operations center because the company believes they “can find the best talent for the work that need to be done” here.

Back to the ’90s


NEW FACES behind the runway and more meditative fashions took control during the Panasonic Manila Fashion Fest’s ninth season. These are some of the designers who caught BusinessWorld’s eye as we sat front row during the fashion event.
Jaz Cerezo placed red piping on what appeared to be black men’s suiting on women which harkened back to the early days of Yves Saint-Laurent, when he released his Le Smoking. Catsuits echoing elements of masculine dressing, such as lapels, appeared on the runway. The collection mixes elements of power dressing, but then near the end of the show, the designer placed in a black, red, and purple spangled jumpsuit, reminiscent of the sleepwear trend from a few years back. This was accompanied by pieces like what appeared to be midnight blue shirtdresses, wraparounds, and kimonos, ending with a collection of gowns with orchids printed on them.
Rob Ortega’s collection felt like some of the newer creations of Calvin Klein, one of the kings of 1990s fashion. For this collection, we saw a resurrection of ’90s trends, as is the wont today. We saw dresses printed with snakeskin patterns, a lime green dress that was last seen on a dance floor in the ’90s, and a Juliet-sleeved lasercut dress that might have been worn by a teenage witch. Steph Tan showed off a feminine collection with marabou feathers, of all things, on an ice blue dress, accompanied by pieces such as blue lace dresses with an overlay in the shape of thick green vines. More feathers appeared in places like hemlines, such as in a pink and fuchsia dress, and the rest of the collection featured strong pinks accompanied with red outfits. A more memorable piece was a pink sequined dress with a red train with a flounce that appeared like rose petals. Finally, the collection had pieces that featured old Hollywood glamor, such as in a midnight blue dress speckled with pink.
Mark Tamayo’s collection was a respite from the glamorous lines that came before, opening with a rusty russet tartan jacket over a textured skirt. The prints used were reminiscent of the checks used up north (as in Ilocos and Baguio), and the effect was almost comforting. The palette was reminiscent of the earth and the harvest, in soft browns and earthy blues.
Dak Bonite’s collection was greeted with loud dance music and cheers, thanks to two hot pink outfits. One of them was a pantsuit that from a distance appeared like macrame, worn by a model holding hands with a girl in a dress of the same material. This designer uses a lot of brights, in orange, a red that looked like a popular lipstick, and went luxe in materials like satin. The final dress for this collection was a big metallic pink wedding dress that looked like Drew Barrymore’s first prom dress in Never Been Kissed.
Bessie Besana’s more ladylike designs followed Dak Bonite’s fun, bouncy show, featuring whites and pinks; sheer and lace on pleated outfits that would be perfect for meeting a prospective mother-in-law. Lucia Josephine’s collection, in the same palette, was spotted with details such as lasercut windows on hemlines and flounces. She told BusinessWorld that her collection was inspired by women who were not given as much credit: think Zelda Fitzgerald (F. Scott Fitzgerald’s equally talented and long-suffering wife), and Ada Lovelace (a mathematician and aristocrat who helped invent precursors to the computer). A memorable dress was a big pink creation with 500 inches of tulle, inspired by astrophysicist Jocelyn Bell (with a skirt shaped like, well, a bell, reminiscent of a creation by Balaneciaga back in the 1950s).
Chrisnick’s collection, meanwhile, was unapologetically glamorous, sporting velour and velvet in dresses that were sprinkled with crystal chains, reminiscent of runway fashions in the mid 1990s.
Miyama Uno, a brand from Japan, showed off printed chiffon scraps sewn together to create coats or skirts, resulting in a look that’s definitely avant-garde: it’s reminiscent of the Derelicte collection from Zoolander. That collection wanted to parody the excesses of the fashion world, but this seemed to actually work, looking beautiful instead of condescending.
John Magsaysay presented his brand called Magi, named after the wise men of old. He took wise to a new level with a line of male athletic and streetwear inspired by Pythagoras and the Greeks (through patterns that echo the Pythagorean theorem and constellations). The color palette, meanwhile, was dark and serious, the designer saying that it was inspired by colors used in heraldry.
Ministry of Silk, a brand from Laos, opened with an opera aria and showed off gowns cut in the silhouette of traditional costumes from Laos. As we can glean from the brand’s name, all of the outfits were in silk, and treated in such a way that championed traditional techniques, resulting in a texture and finish that is rough but refined. — Joseph L. Garcia