Eye-opener

September 3, 2019 | 6:42 pm

Dropping to its second defeat in as many games in the FIBA Basketball World Cup in China on Monday, Gilas Pilipinas has been eliminated from the running and relegated to the classification side of the global hoops spectacle.

And while it is totally not surprising considering the kind of competition the Philippine men’s national basketball team is up against in the Worlds, still to see Gilas get bamboozled the way it has had in the tournament — with an averaging losing margin of 52.5 points — is in equal parts saddening and disconcerting.

No doubt basketball in the Philippines in large part has significant grown throughout the years but the ongoing World Cup has been an eye-opener that vis-à-vis the rest of the world we still are a long ways to go to being truly at par with the best in the sport.

In Asia we are holding our own all right. Outside of it? Our game against Italy and Serbia pretty much answers that.

That being said, may the hard lessons of the 2019 World Cup not go unnoticed to each and everybody basketball stakeholder in the land.

Be it the need to have a more ample time to prepare or developing the “right” players for the job and giving them the proper exposure or crafting a sustainable and long-term basketball program, something has to happen because obviously what we have right now is not making the cut.

Sure it will take a long time. In our case may be a very long time. But it is something that has to happen if we are to further grow and in keep step with the rest of the world in terms of hoops.

Every nation goes through that. Heck even the Americans, long considered the barometer in the sport, have had to go through such “recalibration” in different junctures to keep the kind of stature they have.

Our Asian and Oceania neighbors — China, Japan, Korea, Chinese-Taipei Iran, Australia and New Zealand — went and still going through it and it is about time we do some fine-tuning of our own.

We may be out of the running for the higher rounds but our World Cup campaign is not over and there are still games left to be played, beginning with our final Group D assignment against Angola today.

May Gilas use these remaining games to build up and learn further moving forward.

Still believe in the team and what it wants to accomplish. Laban lang Pilipinas!

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@bworldonline.com

Preparation

September 3, 2019 | 6:41 pm

Belinda Bencic isn’t one to exert pressure on herself. She has learned not to, having seen the pitfalls of great expectations both as an accomplished junior and as a well-traveled pro. She is, if nothing else, pragmatic, and especially in her assessment of self. For example, she concedes that she has “less talent and touch” than compatriot and mentor Martina Hingis, five-time major titleholder and daughter to former coach Melanie Molitor. No doubt, her nuanced view of her potential stems from her roller-coaster experience. She had ups early on, including a quarterfinal-round appearance in the 2014 United States Open and two Women’s Tennis Association Tour titles the next year. Then she had downs, among them wrist surgery in 2017 and its protracted period of convalescence.

Creditably, Bencic has managed to retain her love of the game throughout; she sees the adversities she has faced as necessary for growth. “I think all true athletes have to overcome obstacles, injuries, just tough times. I think it made me a stronger person, better player.” Indeed. Which is why she seems to thrive in the grandest stages, and against players with far stellar resumes. Just yesterday, she halted the US Open run of defending singles champion Naomi Osaka with a decisive 7-5, 6-4 fourth-round thrashing that had her dictating points from the get-go. Not coincidentally, it was her fourth straight victory, and third this year, over the World Number One.

Ask Bencic, and she’d say her biggest asset is her ability to counter her opponent’s strengths or, at the very least, render them ineffective. Yesterday, she managed to rein in Osaka’s power with well-timed and -placed shots. That she had thrice as many double faults as aces — exactly the multiplier her opponent boasted of, but in the opposite application — underscored her capacity to construct points until opportunities to strike presented themselves. She was so patient and precise — if decisive, relentless in her intent to crowd the baseline and take the ball early — that the game looked easy for her.

In truth, much of Bencic’s success on the court stems from her steadfast preparation long before the actual matches. If she’s aware of what she needs to do, it’s because she has scouted the competition herself. She certainly paid attention to Osaka’s masterful performance against Coco Gauff in the previous round, personal taking it in from the stands at Arthur Ashe Stadium. Needless to say, she figures to do the same in the run-up to her meeting with Donna Vekic, another oft-injured player also on the comeback trail. “It’s great that one of us will be in the semifinals,” she said, not needing to note that she’s already laying the groundwork to claim the privilege.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Launchgarage hosts Malaysian startups with EXPAND Philippines

September 3, 2019 | 3:30 pm

For the second year in a row, local tech accelerator Launchgarage hosted EXPAND Philippines, a structured three-week market access program for Malaysian companies seeking to test and validate their products and services in the country.

In partnership with the Malaysian Digital Economy Corporation (MDEC) and UnionBank, the program culminated in a Demo Day taking place on Aug 30, in UnionBank Plaza, where six Malaysian companies showcased their products and services.

“We are happy to host MDEC and look forward to opportunities to enable foreign companies entering the Philippines. Through collaboration we can Tech Up the Philippines,” said Arvie de Vera, UnionBank’s senior vice president and Fintech Business Group head.

This year’s cohort was a collection of seasoned entrepreneurs running late-stage companies that underwent a month-long selection process, an intensive week of mentor-led webinar sessions about the local ecosystem, online introductions to key stakeholders in their respective industries, and an on-site immersion comprising of deal flow facilitation between them and potential investors, clients and strategic partners in the Philippines.

Following last year’s successful pilot, Jojo Flores, COO of Launchgarage, announced in his welcome address a five-year partnership with MDEC which will enable seamless cross-border collaboration as the group’s exclusive partner running various market access programs. “We are proud to announce that we have inked an exclusive deal with our Malaysian counterparts to continue co-hosting these market access programs, which provides value and accelerates their validation process when entering the Philippine market,” he said.

Keasavan Hari Krishnan, market engagement lead of MDEC’s Growth Ecosystem Development group, said “the cross border collaboration between Launchgarage Philippines and Malaysia Digital Economy Corporation (MDEC) has created market access opportunities for Malaysian startups to expand their network and services to the Philippines. MDEC is extremely honored to have been part of these startups expansion into the Philippines.”

Also at last week’s event was Hon. Arth Bryan Celeste, Mayor of Alaminos City, Pangasinan who said he is eager to integrate various projects from the crop of companies into his ecosystem and avail of services that would benefit his constituents.

The 2019 cohort features a diverse set of elite-tier companies which include:

Persuasion Technologies, a business intelligence and marketing analytics servicing platform for retailers and ecommerce sites,
CK Group, an Integrated Property Marketing Agency specializing in digital design solutions using the latest media and visualization technology,
Sometime by Asian Designers, an e-commerce bag and accessories specialist company that co-designs with very select established Asian designers and icons to conceptualize and produce exclusive and iconic designer bags,
NEXPlatform, a data-driven Proptech company that provides smart marketing solutions to help property developers digitalise their processes and improve customer experience,
Accendo, a Talent Experience platform designed to help with deep people analytics and career pathing
and SonicBoom, an all-in-one open payment terminal for parking, vending machines and retail stores.

Hospitality startup ZEN Rooms now the biggest hotel chain in Metro Manila

September 3, 2019 | 3:05 pm

Indonesian hospitality startup ZEN Rooms has just recently opened over 400 new rooms with its recent partnership with Selah Hotels making it the biggest hotel chain in Metro Manila.

After operating for the past four years, ZEN Rooms now has over 4,500 rooms across the Philippines top 50 destinations and 10,000+ rooms across Southeast Asia on its platform. With its constant expansion, the company is set to be in 70 cities by the end of 2019, adding top destinations all over the country.

The company fully manages the newly opened ZEN Rooms Selah Lofts in Harrison St., Pasay City with 205 budget rooms. Just above the property is ZEN Rooms Selah Pods for mid-range accommodation of 108 cozy rooms with access to the rooftop infinity pool with a 360 view of the city’s skyline. For a more premium stay, there’s ZEN Premium Selah Garden Pasay on Park Avenue with close to 100 rooms.

Michael Raquiza, Country Manager of ZEN Rooms Philippines said, “When ZEN Rooms expanded here in 2015, our goal was just to fix the fragmented budget hotel industry,” said Michael Raquiza, countyr manager of ZEN Rooms. “Now, four years later, being the largest hotel chain in the Philippines… we are here to build relationships with hotel owners and support local businesses. We believe that our partnership with hotels like the Selah group exemplifies just that. Together, we improve value-for-money so that our guests can travel more and pay less.”

Jeff Thomas, Managing Director of Selah Hotels, added, “ZEN Rooms has been very effective in terms of tapping the online market and selling our rooms to a wider audience online.”

CFA Society Philippines to hold fourth investment summit for Gen Z workforce

September 3, 2019 | 12:21 pm

Local investor organization CFA Society Philippines organizes its 4th Philippine Junior Finance and Investment Summit, targeting a growing workforce of tech-savvy Gen Zers entering the investment landscape.

“We began this journey towards equipping of future finance professionals six years ago when we launched the first Philippine Junior Finance and Investment Summit. And through the years, especially with the development in our technology and media, we saw how the desirability for equipped finance and investment professionals only grew,” said Cristina Arceo, CFA Society Philippines’ Chairman of the Board of Trustees.

The upcoming summit, with the theme “Measure Up to Level Up” will take place on Sept. 7 at the SMX Convention Center Manila. This whole-day event is set to cater to more than 3,000 students and industry experts, with speakers including Nick Pollard, Managing Director of Asia Pacific CFA Institute; Emilio B. Aquino, Chairperson of Securities and Exchange Commission; and Emilio Neri Jr., Lead Economist and Vice President of the Bank of the Philippine Islands.

“As the world is rapidly changing, and since soon we are bound to leave it in the hands of this new generation of wiser and informed people, CFA believes it is essential that we engage and provide them the tools they need to lead and set the path straight towards success,” Arceo said. She encourages young people–students and young professionals–to attend this event so they can further hone the set of skills they have in order for them to advance in their personal career and financial wellness.

Learn more about the upcoming event here.

Spotlight: Dr. Liau Kui Hin of Mount Elizabeth Novena Hospital talks about Digestive Cancers

September 3, 2019 | 9:42 am

Manufacturing purchasing managers’ index of select ASEAN economies, August (2019)

September 3, 2019 | 12:34 am

BUSINESS CONDITIONS for factories in the Philippines improved “at a moderate rate” in August, with firms raising production “only modestly as new order growth fell from July levels,” according to results of a monthly survey IHS Markit conducts for Nikkei, Inc. that were released on Monday. Read the full story.

Manufacturing posts ‘modest’ gains

September 3, 2019 | 12:34 am

BUSINESS CONDITIONS for factories in the Philippines improved “at a moderate rate” in August, with firms raising production “only modestly as new order growth fell from July levels,” according to results of a monthly survey IHS Markit conducts for Nikkei, Inc. that were released on Monday.

The IHS Markit Philippines Manufacturing PMI (purchasing managers’ index) logged 51.9 in August — “signalling a modest improvement in the health of the Filipino manufacturing sector,” according to a news release — from July’s 52.1.

While not all Southeast Asian PMIs for August were immediately available, the Philippine result compared to Myanmar’s 52 (down from 52.9 in July), as well as Thailand’s 50 (from July’s 50.3) and Indonesia’s 49 (also down from 49.6 in July). Still awaited are results for Malaysia, Singapore and Vietnam, which has been outdoing the Philippines since March.

PMI is the weighted average of five indices, namely: new orders that has a 30% weight, output with 25%, employment with 20%, suppliers’ delivery times with 15% and stocks of purchases with 10%. PMI readings above 50 signal improvement in operating conditions from the preceding month, while those below that point denote means deterioration. The Philippine survey is based on responses to monthly questionnaires sent to purchasing managers of about 400 manufacturers.

The PMI is not comparable to the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI), which is based on year-on-year changes in volume and value of production. The latest MISSI showed factory output — as measured by the volume of production index — contracting by 10.5% year-on-year in June versus the revised 9.9% decline in May and the 9.8% growth in June 2018. Factory output decline averaged 9.6% last semester compared to the 13.5% growth average in 2018’s first half.

The press release on the IHS Markit Philippines Manufacturing PMI said that “[o]utput did increase, but only modestly and at the slowest pace for four months… widely linked by panellists to a softening in the rate of new order growth.”

The statement also noted that “[i]ncrease in new business was the least marked in 13 months” and “[w]hile sales remained strong overall, some firms were impacted by monsoons as well as a drop in demand from foreign clients.”

At the same time, last month saw greater requirement for workers, with companies hiring “at the quickest rate since November 2017”, though the increase was still “modest”.

“Latest PMI figures showed that growth in the Philippines manufacturing sector was largely similar in both July and August. While sales growth was down from the previous month, greater hiring activity meant that the headline reading dropped only slightly to 51.9 from 52.1,” the statement quoted IHS Markit economist David Owen as saying.

“Some firms noted a slowdown in customer demand due to monsoons during August. This also led to a slight deterioration in supply chain efficiency as lead times increased marginally. Nevertheless, firms were still able to increase stock levels,” he added.

“One note of caution from the data was another moderate fall in export demand. New orders from abroad have now fallen in 10 out of the last 12 months, as trading conditions in the region remain difficult due to the US-China trade war,” Mr. Owen explained, as Reuters reported that the United States began imposing 15% tariffs on various Chinese goods on Sunday — including footwear, smart watches and flat-panel televisions — as China put new duties on US crude in the latest escalation to their trade row.

“The economy is subsequently relying on strong domestic sales to stop growth from falling any further.”

Last month’s survey also showed input prices rising at a sharper pace than in July, due to higher raw material prices, and selling charges increasing “modestly” from July.

Finally, expectations of output growth “remained positive overall”, with 57% of respondents “hopeful of raising production in the coming year” and just four percent “giving negative forecasts for growth.” — with Beatrice M. Laforga

Asian factories lashed by trade wars, slowing demand in August

September 3, 2019 | 12:33 am

TOKYO — The bitter trade war between China and the United States kept Asian factory activity mostly in decline in August, business surveys showed, strengthening the case for policy makers to unleash fresh stimulus to fend off recession risks.

In a surprise development, China’s factory activity unexpectedly expanded in August as output edged up, a private sector purchasing managers’ index (PMI) showed on Monday, but orders remained weak and business confidence faltered.

Export-reliant South Korea, Japan and Taiwan also saw factory activity shrink, underscoring the growing pain from the tit-for-tat tariff war between the world’s two-largest economies.

“The broader picture for Asian exports remains very weak because of the impact of the US-China trade war, which is continuing to escalate,” said Rajiv Biswas, Asia Pacific chief economist at IHS Markit.

In a fresh escalation of trade tensions, the United States began imposing 15% tariffs on a variety of Chinese goods on Sunday. China reciprocated with new duties on US crude oil.

In China, the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for August rose to a five-month high of 50.4 from 49.9 in July, beating a median market forecast and exceeding the 50-point level that separates contraction from growth on a monthly basis. The reading followed Beijing’s official PMI that showed factory activity shrank in August for the fourth month in a row, pointing to a further slowdown in the world’s second-largest economy.

India, another Asian economic power-house, saw the slowest expansion in its manufacturing sector in 15 months as demand and output grew at their weakest pace in a year. Data on Friday showed India’s economic growth hit a 6-year low in April-June, raising chances of the central bank cutting interest rates further at its next meeting.

Elsewhere in Asia, Japanese manufacturing activity fell for a fourth straight month in August, underlining a darkening outlook for the world’s third-largest economy. While Japan’s exports slipped for an eighth month in July due to slumping China-bound sales, the economy has so far enjoyed steady growth thanks to robust domestic demand.

But there are signs the economy may start to lose the support from consumption and capital expenditure. Manufacturers surveyed in the PMI data said the end of a construction spike ahead of the 2020 Tokyo Olympic Games and a scheduled sales tax hike in October are expected to hurt output volumes the coming months.

Any further sign of weakness in domestic demand could add pressure on the Bank of Japan to ramp up stimulus at its rate review on Sept. 18-19, which follows the European Central Bank’s rate decision and that of the US Federal Reserve.

“The US-China trade war is escalating and we’re also seeing tensions heighten between Washington and Europe,” which could cause the global economy to falter, said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.

“Japan may slide into recession around the time the sales tax hike takes effect.”

South Korean’s factory activity also shrank as manufacturers felt the pinch not just from the US-China trade war but an escalating diplomatic dispute with Japan.

The country’s exports tumbled in August for a ninth straight month on sluggish demand from its biggest buyer, China, and depressed prices of computer chips globally.

The bleak data strengthened the case for additional policy easing by South Korea’s central bank, following a surprise interest rate cut in July.

“The simple message is number one, the US and China are at logger heads, and China is already proactively responding and basically started to divorce itself from the regional supply chain,” said Michael Every, senior Asia-Pacific strategist at Rabobank.

“Eventually the service sector will be dragged down by the manufacturing sector.” — Reuters

Gov’t faces higher cost for MRT-3 O&M with use of China-made trains

September 3, 2019 | 12:32 am

THE GOVERNMENT may have to pay a higher price for the operation and maintenance (O&M) of the Metro Rail Transit Line 3 (MRT-3) by Japanese contractors to accommodate the use of China-manufactured train sets.

Transportation Secretary Arthur P. Tugade told reporters last week that the P16.985-billion contract that the Philippines and Japan signed to rehabilitate the MRT-3 will have to be adjusted to deploy the additional trains from CRRC Dalian Company Ltd.

Mr. Tugade said the 48 MRT-3 trains bought during the previous administration CRRC Dalian were not included in the original coverage of the agreement signed with the Japanese contractors.

“Pag dinagdag mo ’yung mga tren na ime-maintain nila at io-operate, may karagdagang cost ’yan [If you add more trains for them to maintain and operate, that will have a corresponding additional cost],” he said.

The governments of the Philippines and Japan signed last year the 43-month contract for the operation and maintenance of the MRT-3.

The indicative cost of the project was P16.985 billion, payable in 40 years with a 12-year grace period.

OPERATIONAL BY JULY 2021
The Department of Transportation (DoTr) officially turned over the operation and maintenance of EDSA’s railway to Sumitomo Corp. and Mitsubishi Heavy Industries Ltd. (Sumitomo-MHI) in May, which now handle the MRT-3 together with TES Philippines, Inc.

The MRT-3 currently has 72 train cars, which are the only ones the Japanese contractors were supposed to operate and maintain based on the rehabilitation agreement. Adding the 48 Dalian trains would increase this fleet by 67% to 120 train cars, hence the corresponding adjustment in cost.

He would not give an estimate on the cost increase.

Discussions are ongoing between the DoTr and Sumitomo on the progressive rollout of Dalian trains. One Dalian train is scheduled to be deployed this month after the contractors agreed that it was ready for use during off-peak hours.

The China-made trains have not yet been rolled out also due to the capacity of the MRT-3’s tracks to handle more trains. The government has already ordered new MRT-3 rails, which arrived in July, to address this problem.

“Hindi naman pwedeng patakbuhin mo kaagad ura-urada yan. Una, testing-in mo kung ano ’yung na-deliver. Pangalawa, kung na-deliver lahat, testing-in mo kung kakayanin nung existing riles. So marami pang consideration ’yan [You cannot just deploy the trains. You first have to test the trains that were delivered, then test if they can be accommodated by the existing rails. So there are plenty of considerations],” Mr. Tugade said.

Sumitomo-MHI is scheduled to complete its rehabilitation of the MRT-3 by July 2021, after which the train line is expected to increase its daily ridership to 650,000 from 320,000 currently. — Denise A. Valdez

Philippines’ nickel miners to boost ore output as Jakarta sets shipment ban

September 3, 2019 | 12:31 am

PHILIPPINE nickel miners are expected to boost ore production next year when Indonesia bans exports of the raw material used in stainless steel and batteries, the head of the local nickel miners’ lobby group told Reuters on Monday.

“This supposed export ban from Indonesia will boost production from the local miners, particularly next year once it takes effect simultaneous with the start of the mining season,” Dante R. Bravo, president of the Philippine Nickel Industry Association, said.

The Philippines, which has 29 nickel mines and two nickel processing plants, usually ends its mining season in October, when heavy rains and strong winds hamper mining and shipping operations. Production resumes in March or April of the following year.

Indonesian ore was generally of a higher grade than ore from the Philippines, he noted.

“However, Chinese smelters have been able to process our lower grade ores, so supply of lower grade ores coming from the Philippines is not an issue,” said Mr. Bravo, who is also president of Global Ferronickel Holdings Inc., the Philippines’ second-biggest nickel ore producer and exporter.

Indonesia’s Energy and Mineral Resources Minister Ignasius Jonan said he has signed a new regulation on banning ore exports, according to a voice recording verified by a ministry spokesman, sending nickel prices soaring on Friday.

Nickel prices in Shanghai hit a record high on Monday, while they jumped to a five-year high in London following Indonesia’s move.

Mr. Jonan, speaking to journalists in Yogyakarta, said nickel ore exports will be allowed until end-December.

Mr. Bravo did not give any estimate on Philippine ore output and shipments next year, but he said Indonesia’s policy move will pave the way for increased sales of lower-grade 1.2%, 1.3% and 1.4% nickel ores.

The Philippines has lost some share of the huge Chinese nickel ore market to Indonesia after the latter lifted its previous ban on mineral exports in 2017, as Chinese buyers preferred higher-grade ores.

Amid increased supply from Indonesia, the local nickel industry had projected a 10-20% drop in ore production this year, from about 30 million wet metric tons in 2018.

They also expected the government’s move to limit mining areas to hurt their operations.

The Philippines’ new mining curbs that took effect from September last year limit the land that miners can develop at any one time, a move aimed at protecting the environment. — Reuters

PHL offers perks to lure start-ups from around the world

September 3, 2019 | 12:30 am

By Denise A. Valdez
Reporter

LIRON GROSS moved to the Philippines with her family in 2017 to start Payo, a start-up e-commerce payment solution.

She saw a good potential from selling jewelry back in Israel in 2012, when intermediary costs led to higher prices.

Starting a business is never easy and starting a successful one is even harder especially for one that was introducing a new product. “I remember back then, the words I did not use was ‘start-up,’” Ms. Gross said in an interview.

“If I came to people and told them to join a start-up, they might think this could disappear in three months.”

Southeast Asia is home to some of the biggest start-ups such as Malaysia’s Iflix, Indonesia’s Gojek and Singapore’s Hooq, all of which have raised money at a clip, showing heavy interest among investors.

The country’s cash-heavy society inspired Ms. Gross to form Payo, a Philippine-based business that has since grown to half-a-million dollars in monthly revenue. Payo gets revenue from e-commerce clients who avail themselves of its logistic services.

Aside from the difficulty of getting people to join Payo, a major challenge was getting funding to support the start-up’s working capital.

“It’s very hard for me to get a credit card without having at least three years of operations. Local investors were hard to start a conversation with,” Ms. Gross said.

LAW FOR START-UPS
But in two years, the Philippines has become more accepting of start-ups.

For starters, the government in April enacted a measure that offers incentives to start-ups and removes constraints to encourage this type of business to flourish.

Republic Act No. 11337, or the Innovative Startup Act gives subsidies in business registration and in the use of office space and equipment, provides research and development grants, and offers special visas to start-up owners, employees and investors.

It also aims to build a so-called startup development program led by the departments of Trade, Science and Technology, and Information and Communications Technology.

Rules that will implement the law are now being drafted, and Trade Undersecretary Rafaelita M. Aldaba has said the initiative would help the Philippines “catch up with our neighbors.”

Having a clear legislative direction is key to help start-ups thrive, said Katrina R. Chan, director at local start-up organization QBO Innovation Hub. Start-ups, she said, are different from small and medium enterprises, which enjoy a different set of incentives, regulations and industry objectives.

“We want to make the Philippines a friendly place for start-ups,” Ms. Chan said. “It’s important that we set up the Philippines in such a way that it’s easier for talent and ideas to prosper no matter where they come from.”

Kumu, a local start-up that offers a Filipino culture-based livestream platform, is one of these. Its founders said the idea for the company was born when they were overseas.

Jose L. Cuisia, Jr., a former Philippine ambassador to the US, challenged its founders to move to the Philippines to start a tech company. Kumu launched its app last year and now has a million users.

Some Philippine start-ups that have yet to hit a homerun are seeking more government support, particularly protection from predatory entities from abroad.

Raphael Layosa, founder and chief executive officer of RetailGate — a start-up that uses artificial intelligence to gather consumer behavior and help retailers optimize operations — said the government should form a regulatory body that startups can run to for protection.

He cited the need for a “Filipino-First” policy for start-ups, adding that foreign technologies entering the Philippines are a big threat. “If you bring in a giant from abroad, it’s difficult to fight.”

TARGETING UNICORNS
“More than encouraging people to have a start-up, what really matters is getting people who are already in start-ups to stay there and run the race,” Mr. Layosa said.

“If you have the government hand-holding start-ups in that marathon, I’m sure you have fewer people giving up.”

Ms. Gross, mentioned at the outset, thinks otherwise.

She thinks the new law on start-ups is a good start and could motivate foreign unicorns — start-up companies valued at more than a billion dollars, typically in the software or technology sector — to consider the Philippines as their first market.

Ms. Gross said there are international start-ups that believe in Southeast Asia but never considered the Philippines as their first market.

“Now the government is opening its doors to those initiatives,” she said.

“It’s a very good go-to market for Southeast Asia because of the language and the high penetrate rate for smartphones.”