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TikTok Shop empowers MSMEs at GoNegosyo’s Online Selling Summit

From L-R: Content creator Bea Fabregas; Jordan Jacinto, Head of Growth, Paymongo; Rosemarie Rafael, Chairperson, Airspeed Group of Companies; Ralph Marvin Garcia, Business Lead, Carousell; Cristopher Enriquez, CEO, Raket PH; and Franco Aligaen, Marketing Lead, TikTok Shop Philippines.

TikTok Shop highlights key strategies and collaborative efforts to support Filipino MSMEs in navigating the digital economy

TikTok Shop Philippines recently participated in GoNegosyo’s Online Selling Summit, reaffirming its dedication to empowering micro, small, and medium enterprises (MSMEs) across the country. Organized by GoNegosyo, this event brought together government officials, industry leaders, and MSMEs to explore innovative ways to accelerate the growth of small businesses through digital tools and strategies.

Themed “Digital Economy: Fueling Growth, Empowering E-Commerce,” the summit emphasized the crucial role of digital platforms in enabling MSMEs to thrive in an increasingly competitive and technology-driven economy. It provided a venue for Filipino entrepreneurs to learn about the latest digital trends, tools, and strategies that help them transition from survival to success.

“Digital technology is key for our MSMEs to succeed in today’s evolving business landscape. Platforms like TikTok Shop, and the likes of it, create new opportunities for small entrepreneurs, allowing them to access markets that were previously out of reach,” said Joey Concepcion, Founder of GoNegosyo. “Together with TikTok Shop and the rest of the digital alliance community, we aim to equip MSMEs with the skills, tools, and resources they need to grow their businesses and contribute to the development of a vibrant and inclusive digital economy in the Philippines.”

Franco Aligaen, Marketing Lead for TikTok Shop Philippines, joined industry experts in the panel titled “Level Up with Online Ecosystems and Platforms”, where he discussed how MSMEs can leverage TikTok Shop’s dynamic platform to enhance their reach, optimize engagement, and achieve sustainable growth.

Franco Aligaen, Marketing Lead, TikTok Shop Philippines

“TikTok Shop’s mission is to empower Filipino MSMEs through social commerce,” said Aligaen. “Our platform integrates content with commerce, allowing small businesses to engage customers in a more compelling way. By turning content into revenue, we aim to create a meaningful impact on the growth of local enterprises.”

Empowering MSMEs through Digitalization
TikTok Shop empowers MSMEs by providing a dynamic, integrated platform for both marketing and selling, fostering business growth and community support. By utilizing features such as livestream selling and affiliate marketing, MSMEs can enhance their visibility and interact directly with a nationwide audience. These tools are crucial in helping small businesses overcome barriers, such as limited financial resources and access to markets.

Through its ACE Framework—Assortment, Content, and Empowerment—TikTok Shop helps businesses optimize their product offerings, create engaging content, and ultimately convert interactions into sales. This approach allows MSMEs to seamlessly combine marketing and sales, driving both customer engagement and revenue growth.

Strategic Partnerships for Sustainable Growth

To empower MSMEs beyond just digital tools, TikTok Shop collaborates with strategic partners such as the Department of Trade and Industry (DTI) and GoNegosyo, providing essential training and resources.  These initiatives ensure that Filipino MSMEs have access to the knowledge and skills necessary to thrive in the digital economy.

Building on its success at the National MSME Summit 2024, TikTok Shop continues to work closely with GoNegosyo to promote the growth of small businesses through digital innovation. At the MSME Summit, TikTok Shop showcased its “Shoppertainment” approach, which integrates engaging content with seamless commerce and has become an important strategy for MSMEs looking to reach a nationwide audience and drive business growth.

Addressing Barriers and Enabling Growth

TikTok Shop strives to make e-commerce accessible and effective for all, providing a comprehensive ecosystem that supports seamless interaction between businesses and customers.

“Our goal is to be a catalyst for small businesses to succeed by creating a supportive ecosystem where MSMEs can grow and prosper. By combining digital tools with strong partnerships, we believe that MSMEs can lead the way in driving economic progress in the Philippines,” added Aligaen.

TikTok Shop remains committed to providing the tools, technology, and training needed to support MSMEs in their journey toward sustainable growth. Through social commerce, mentorship, and community engagement, TikTok Shop is helping create an inclusive and dynamic digital economy for all Filipino entrepreneurs.

 


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GCash Turns 20: 20 Features in 20 Years

From Bills to Budget Goals: Top 20 GCash Features that Make Finances a Breeze

What started as a simple SMS money transfer has exploded into the financial super app that Filipinos can’t live without! For 20 years, GCash has been rolling out feature after feature, making life easier, faster, and more inclusive for everyone.

From sending money in seconds to paying bills, shopping, and even investing, GCash has completely transformed how we handle money. And guess what? These 20 game-changing features are just a taste of what GCash has to offer! There’s a whole world of services in the app waiting to be explored. Ready to dive into some of the crowd favorites? Let’s begin!

  1. SMS Money Transfer
    This is where it all began! Picture this: it’s 2004, flip phones are the hottest gadgets, and texting is the way to stay connected. Then GCash swoops in and changes the game, letting people send and receive money with a simple SMS/text! GCash made moving money as easy as texting a friend, opening the door to financial freedom for millions. Who knew sending cash could be as easy as sending “LOL”?
  2. Buy Load
    By 2012, smartphones were everywhere, and GCash was right there, keeping up with the times. Enter Buy Load. Now you can reload your prepaid credits anytime, anywhere, straight from your phone! No more rushing to the sari-sari store for load. Today, more than prepaid load, you can also top up mobile data, promos, and other prepaid services like Cignal TV, Konsulta MD, and more. Life just got a whole lot more convenient!
  3. Pay Bills
    Long lines at payment centers? Not here! In 2012, GCash’s Pay Bills feature turned your phone into a personal cashier, letting you pay for everything from electric bills to tuition without leaving home. Missed deadlines? Never again! Just a few taps, and you’re all set. With over 1,900+ billers all in the app to date, how is that for leveling up your money game?
  4. Scan-to-Pay QR
    Remember when cashless payments felt like something out of the future? GCash brought it to life in 2017 with Scan-to-Pay QR, the first of its kind in the Philippines. It made its debut when Globe Telecom’s President and CEO, Ernest Cu, used it for the first-ever payment at Mini Stop (now Uncle John’s). No more scrambling for change, just scan, pay, and go. GCash was at the forefront of the cashless revolution, making shopping faster, easier, and way more fun.
  5. eKYC (Electronic Know-Your-Customer)
    Remember when verifying your identity (KYC) meant standing in line at a store? Well, not anymore! Launched in 2018, GCash’s eKYC feature made getting verified quick, safe, and fully digital. What once required a face-to-face meeting with your ID is now as easy as opening the GCash app, scanning your ID, snapping a selfie, and hitting submit. GCash handles the rest, and boom! You’re verified in no time!
  6. GCredit
    By 2018, GCash wasn’t just about sending money anymore, it was about borrowing it, too! With GCredit, in partnership with CIMB, you could get instant cash when you needed it, with no bank hoops to jump through. Whether it was for an emergency or to pay bills, GCredit had your back!
  7. GScore
    Also, in 2018, GCash launched GScore, and suddenly, your financial world was all about leveling up! The higher your GScore, the more perks you could unlock in your GCash app, like access to more lending products. It’s like your personal power up in the GCash universe, opening doors for more financial freedom! Today, there are 5.4 million unique borrowers, with 1 in 3 borrowers being small business owners and 2 in 3 borrowers being women.
  8. GSave
    In 2018, GSave made saving money a breeze. No paperwork, no bank lines, and with just a few taps, you were saving like a pro. Finally, everyday Filipinos had easy access to banking and financial security at their fingertips. Today, GSave has evolved into a savings marketplace where you can open accounts with BPI, Unobank, CIMB, and Maybank, all within the app. Oh, and did we mention? There are now 10.9 million registered GSave users earning up to 15% interest on savings!
  9. GForest
    What if you could help save the planet while using GCash? In 2019, GForest made that possible! Every transaction earned you points to plant virtual trees that were later turned into real ones. So far, GCash, through its credible local and international partners, has planted 2.8 million trees! With 17 million Green Heroes and 138,000 tons of carbon dioxide reduced, GCash is helping the planet while helping you manage your money.
  10. GInsure
    When the world turned upside down in 2020, GInsure was born to give users access to affordable health and life insurance. With just a few taps, getting insured wasn’t intimidating anymore. It was quick, easy, and right in your pocket. Today, GInsure is your one-stop shop for all insurance needs. From life and health to cars, travel, accidents, and even pets — yes, really, among others! And with premiums starting at just PHP 10 a month, it’s one of the most affordable options out there. With over 28.3 million GInsure policies sold and 7.8 million registered users, GCash is making protection accessible for all.
  11. GLife
    Since its launch in 2020, GLife has grown into more than a lifestyle mini-program, it is now a full-blown super app within GCash! What started with shopping and food delivery has expanded into a one-stop shop for everything from travel bookings and entertainment to essential services like bill payment, health, and even insurance. With GLife, you can access a world of services without leaving the GCash app. It’s bigger, better, and more convenient than ever!
  12. GGives & GLoan
    In 2021, GCash took borrowing to the next level with GGives and GLoan. Need that new gadget but don’t want to pay for it all at once? GGives lets you split your payments into easy installments, with select merchants even offering 0% interest! And if you need quick cash, GLoan has you covered with loans up to PHP 125,000. Just a few taps, and boom! Borrowing made simple, straight to your GCash ewallet!
  13. GInvest Funds
    Ever wanted to invest in the world’s biggest companies but thought it was out of your reach? Not with GInvest! Launched in 2021, GInvest, now called GFunds, allows you to participate in the growth of both local and global companies for as low as PHP 50. Whether you’re eyeing top local corporations or global giants, GInvest makes it easy to start investing with just a few taps. Now anyone can build their investment portfolio without leaving the GCash app!
  14. GJobs
    What started as a simple job search feature in 2021 has evolved into a comprehensive platform connecting users with employment opportunities. Now, GJobs, powered by PasaJob, helps job seekers by searching for jobs within the GCash app, offering tailored job listings and resources that streamline the hiring process. Now you can even refer friends and family to jobs and earn a referral fee once successfully placed. This feature facilitates employment and supports the growing gig economy, helping Filipinos find work that fits their skills and lifestyle.
  15. Global Pay
    GCash did not stop at local payments. In 2022, Global Pay took things international! With GCash and Alipay+, cross-border payments became a breeze. Whether you’re shopping online or traveling abroad, GCash turned your phone into a global wallet, accepted worldwide! Keeping things easy no matter where you are.
  16. Send Money Protect (Scam Insurance)
    With digital threats on the rise, GCash teamed up with Chubb to launch Send Money Protect in 2023. This cyber insurance adds an extra layer of security to every GCash Express Send transfer of up to PHP 15,000 for 30 days, shielding you from scams like social engineering, account takeovers, or online shopping fraud. Now, you can send money with total peace of mind!
  17. GStocks PH
    Ever thought investing was too complicated? Not with GStocks PH, it isn’t! Launched in 2023 in partnership with AB Capital, GCash brought the stock market to your smartphone. Now, anyone can invest in Philippine stocks straight from the app, no brokers required. With 692,000 users and a minimum investment as low as PHP 1,000, it’s investing, simplified, and accessible to all.
  18. GCrypto
    Also, in 2023, GCash dove into the world of cryptocurrency. Buying, selling, and trading crypto became as easy as managing your e-wallet with GCrypto, in partnership with PDAX (Philippine Digital Asset Exchange). The world of digital currencies was now open to everyone, and GCash made it happen, all from your phone.
  19. GCash Visa Card
    GCash didn’t just stop at e-wallets. In 2023, the GCash Visa Card bridged the gap between digital payments and the real world. Whether shopping online or in physical stores, you can tap into your GCash balance wherever Visa is accepted. No hidden charges, the best forex rates, and accepted in over 200 countries and territories, this card has you covered wherever you go!
  20. GCash Overseas
    For Filipinos abroad, GCash Overseas was a total game-changer in 2023. Now, Overseas Filipino Workers (OFWs) and migrants can use GCash even with a non-Philippine SIM. From sending money to paying bills in real-time, GCash keeps you connected to your financial responsibilities back home. Want more control over your money? You can send funds to your family instantly, without service fees, or pay for bills in the Philippines, all from wherever you are in the world.

For 20 years, GCash has been pushing boundaries, but one thing has stayed the same: its mission is to make financial services accessible to every Filipino. From a humble SMS transfer service? to a super app that revolutionized money management, GCash has transformed the way we handle finances — and it’s only the beginning.

These 20 features are just the tip of the iceberg. GCash has even more to offer, with tons of tools and services making life easier every day. As we celebrate two decades with GCash, we can’t wait to see how it will continue shaping the future of finance for the next 20 years and beyond!

 


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A golden partnership: City of Dreams Manila hosts Metro Manila Film Festival (MMFF), Manila International Film Festival (MIFF) and MOWELFUND’s historic collaboration

In photo are (from left) Bing Viray, Project Director (Media Puzzle Holdings Corp.); Cherry Ann Carrera, President (Media Puzzle Holdings Corp.); Raul Putong, Chief Operating Officer (MIFF); Atty. Rochelle Macapili-Ona, Executive Director (MMFF); Romando S. Artes, Chairman (MMDA); Charisse Chuidian, Vice-President For Public Relations (City Of Dreams Manila); Boots Anson Roa, Chairwoman (MOWELFUND); Gina Alajar, Board Member (MOWELFUND); Joey Roa, Welfare Director (MOWELFUND); and Jim Baltazar, Director (CMB Film Services).

In a remarkable prelude to the much-anticipated Golden Celebration of the Metro Manila Film Festival (MMFF) this year, a ceremonial contract signing took place in City of Dreams Manila, signifying an important step in the partnership between Metro Manila Film Festival (MMFF) and the Manila International Film Festival (MIFF). This event not only highlights a significant milestone for both organizations but also sets the tone for what is expected to be a groundbreaking year for the Philippine entertainment industry.

As part of the programs, projects, and activities in celebration of its 50th year, the Metro Manila Film Festival named City of Dreams Manila as its Official Event Partner for the Golden Gala on Nov. 11, 2024. This prestigious partnership with one of the country’s premier luxury destinations underscores the importance of the occasion, promising an unforgettable evening of glamour, entertainment, and philanthropy. The Golden Gala, hosted at City of Dreams Manila, will bring together a distinguished audience of celebrities, industry leaders, and influential personalities to honor the best of Philippine cinema, while also reinforcing its ties to the global film community.

A notable presence during the ceremonial signing was the Movie Workers Welfare Foundation, Inc. (MOWELFUND), a nonprofit organization that has been championing the welfare of marginalized workers in the Philippine film industry for 50 years. MOWELFUND’s dedication to social welfare, education, and the preservation of film heritage was proudly represented by Chairwoman Boots Anson Roa, along with Board Member Gina Alajar and Welfare Director Joey Roa, further cementing the importance of this event.

Key panelists from MMFF, MIFF and MOWELFUND, together with their brand partners

The event brought together distinguished figures from the Metro Manila Film Festival (MMFF), Manila International Film Festival (MIFF), and their initial group of brand and media partners. Among the notable attendees were Chairman Romando S. Artes from the Metro Manila Development Authority (MMDA); Atty. Rochelle Macapili-Ona, Executive Director of MMFF; Charisse Chuidian, Vice-President for Public Relations of City of Dreams Manila; Raul Putong, Chief Operating Officer of MIFF; Jim Baltazar, Director for CMB Film Services; along with Cherry Ann Carrera, CEO of Media Puzzle Holdings Corp.; and Bing Viray, Project Director for Media Puzzle Holdings Corp. The MMFF and MIFF also recognized their esteemed brand partners, including Shantal’s Beauty & Wellness Products, represented by CEO and Founder Rossel “Shantal” Dimayuga; Brenan Global, represented by CEO Brenda So; Wow Glow, owned by Mariz Villanueva and Vlad Villanueva; and Gluta Skin, represented by CEO Lira Lacsamana. Additionally, gratitude was extended to media partners such as PhilStar, Philippine Daily Inquirer, MBC Media Group, Manila Times, and Manila Standard.

This ceremonial signing ignites a transformative chapter for the Philippine entertainment industry. As we count down to the 50th edition of MMFF, we stand on the brink of a historic moment that will not only celebrate the rich heritage of Filipino cinema but also catapult it into the international spotlight. The MMFF 50th Golden Gala on Nov. 11 at City of Dreams Manila promises to be more than just an event — it will be a defining moment for the industry, filled with glamour, prestige, and the power of Filipino artistry. Join us as we honor the past, celebrate the present, and shape the future of Philippine cinema on the global stage.

 


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Globe wins Best Network Reliability Solution at 5G Core Awards

Globe received the Best Network Reliability Solution award at the recent 5G Core Summit Awards in Dubai, organized by Informa Tech. IN PHOTO [L-R]: Mark Oliver, Vice President for Consulting at Omdia, an Informa Tech company; Gerard Ortines, Globe Vice President, Core Network Planning and Engineering; Vangie Lampa - Alvarez, Globe Assistant Vice President, Core Network Planning; and Roberto Kompany, Principal Analyst at Omdia.

Globe, the leading telecommunications and digital solutions provider in the Philippines, has been recognized for having the Best Network Reliability Solution at the 5G Core Summit Awards, hosted by leading tech market insight firm Informa Tech.

The award recognizes the mobile operator that “has achieved exceptional stability and reliability in its network infrastructure” and “demonstrates excellence in maintaining high performance across diverse regions, understanding and meeting user expectations, and minimizing downtime,” according to the awards website.

The recognition is a nod to Globe’s pioneering efforts to build up its 5G network, with its outdoor coverage reaching 98.45% in its capital region and 94.19% in key cities across its two other major island groups, Visayas and Mindanao, as of June 2024.

Earlier this year, Globe became the first Philippine telco to deploy End-to-End (E2E) Network Slicing Function of 5G Standalone (SA), the most advanced 5G technology, paving the way for a range of applications, including high-bandwidth activities such as video streaming, virtual reality, and Internet of Things (IoT).

“This recognition affirms our efforts to invest in 5G technology and make it more accessible to our customers. 5G holds great promise as digital adoption in the Philippines continues to accelerate, and our goal is to have our network ready for when the market is ready to fully utilize the benefits of 5G,” said Joel Agustin, Globe Head of Service Planning and Engineering.

The awards were held during the 5G Core Summit (5GCS) in Dubai, where Globe announced its groundbreaking advancements in building a highly stable and resilient 5G core network, ensuring unparalleled service continuity for its customers.

As a pioneer in the Philippines’ 5G rollout, Globe has consistently invested in cutting-edge technologies and continues to expand its 5G network coverage across major cities.

Globe understands the unique challenges of the Philippines, a nation prone to natural disasters. To ensure uninterrupted service for its customers, the company has built a core network architecture designed for exceptional stability and resilience. Globe has embraced a four-layer architecture for high-stability, a journey that began in 2013 and continues to evolve with the ever-changing demands of their networks, so that each layer will contribute to the overall stability of the network.

Gerard Ortines, Globe Vice President, Core Network Planning and Engineering, speaks at the 2024 5G Core Summit in Dubai.

“We face many challenges in the Philippines, owing to our geography and weather. Our goal is to fortify the resilience of our network and ensure zero service disruption, zero user data loss and minimize human intervention,” said Gerard Ortines, Globe Vice President for Core Network Planning and Engineering.

As for the infrastructure layer, Globe’s network of distributed data centers across multiple locations provides geographically diverse redundancy, ensuring seamless service continuity even during storage failures.

This network is built upon three pillars– NF high-reliability, network high-reliability, and data high-availability– helping it withstand significant signaling load increases and seamlessly transition operations between data centers. Globe’s core network is also built for resilience in the face of extreme scenarios such as disasters, ensuring service availability even in the event of multiple failures.

Globe is now exploring new ways to improve network stability by anticipating and preventing potential issues before they happen. This includes predicting problems in real-time and automatically identifying the causes to reduce service disruptions. The first step is introducing digital twin technology, which gives real-time insights into the network’s condition. This will allow for proactive monitoring, early problem detection, and faster resolution of any faults.

By using innovative technology and building a strong, resilient network, Globe aims to ensure best-in-class customer experience. Globe will continue to work closely with industry partners and global leaders to set and implement reliability standards for the telecommunications industry.

To learn more about Globe, visit https://www.globe.com.ph/.

 


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Smart opens pre-order deals for iPhone 16 series via postpaid and prepaid subscribers

Getting hold of the much-anticipated iPhone 16 Series is sweeter with mobile services provider Smart Communications, Inc. (Smart), as it unveils its amazing deals and data perks for Smart Postpaid, Smart Infinity, and Smart Prepaid customers.

FREE 16 GB 5G data per month for 16 weeks with Smart Postpaid

New Smart Postpaid customers can avail of the iPhone 16 Series starting at Smart Postpaid Plans+ 999 with a low down payment of PHP 21,000 and a monthly amortization of only PHP 1,300 under a 24-month contract.

Meanwhile, re-contracting Smart Postpaid subscribers can get an iPhone 16 (128GB) with Smart Postpaid Plans+ 999 for only PHP2,121 per month for 24 months — without cashout. The device is also available for an even lower monthly amortization of PHP1,697 (subject to credit approval) on a 30-month contract.

Under this plan, customers can enjoy UNLI 5G for 12 months, 20GB of open access data, Netflix mobile subscription, Unlimited Texts, Calls to Mobile and Landline, and exclusive Smart Perks from select restaurants, shopping, beauty and travel partners.

Moreover, subscribers who successfully pre-order their new iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone Pro Max during the pre-order period from Oct. 10, 12:01 a.m. to Oct. 13, 11:59 p.m. shall enjoy FREE 16GB 5G data per month for 16 weeks, empowering them to make the most of their new device.

Get the iPhone 16 Pro or iPhone 16 Pro Max with Smart Infinity

On the other hand, Smart Infinity members may get the iPhone 16 Pro or iPhone 16 Pro Max with their Infinity Plans, which comes with Unlimited Data, Texts & Calls, Data Roaming Packs, and Monthly Consumable Allocation plus  a suite of exclusive privileges tailored to their premium lifestyle.

Smart Infinity Plan 5000 and Plan 8000 members enjoy access to an Infinity Relationship Manager that handles all their account-related concerns, as well as 24/7 access to an Infinity Concierge, a dedicated hotline for round-the-clock mobile assistance and access to exclusive lifestyle events.

FREE 16GB for 16 days with Smart Prepaid

Meanwhile, Smart Prepaid customers who only  wish to purchase a device  can get the iPhone 16 for as low as PHP 2,313 per month for 24 months at 0% interest installment.

Smart Prepaid subscribers who successfully sign up during the preorder period can get their new iPhone 16  with a Smart Prepaid bundle, which comes with a FREE Smart Prepaid eSIM, 1.6GB data per week for 16 weeks, plus FREE 16GB data valid for 16 days.

Easier and more affordable payment terms for  the latest iPhones

To make it easier for customers to upgrade to the latest iPhones, Smart also offers wide range of payment options through partner banks and financing institutions.

BDO and BPI credit card users can conveniently enjoy up to 12 months installment, while RCBC, Security Bank, and UnionBank credit card users can enjoy 12-month or 24-month installment options on their iPhone purchase with Smart.

On the other hand, Home Credit users may pay for up to 15, 18, and 24 months for as low as P2,345 per month to get the latest iPhone from Smart.

Most advanced iPhones ever

The iPhone 16 Pro and iPhone 16 Pro Max, powered by the A18 Pro chip with industry-leading CPU performance, feature larger display sizes, Camera Control, innovative pro camera features, and a huge leap in battery life.

The latest iPhones are powered by Smart’s superior 5G mobile network, recently recognized for delivering the Philippines’ Best 5G Coverage Experience by independent network analytics from Opensignal.

Smart’s amazing offers complement the most advanced iPhones ever,  ensuring that our customers  can enjoy the new iPhone 16 Series and maximize  its groundbreaking features  powered by our superior mobile network,” said Kristine A. Go, Senior Vice-President for Wireless Consumer Business at Smart.

Smart customers may gear up to preorder the latest iPhones to avail of Smart’s amazing deals and data perks by visiting https://smart.com.ph/Pages/iPhone16Soon.

 


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Recto sees 6% growth in 3rd quarter

RACKS of clothes were seen during a sale at a mall in Quezon City, Sept 18, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE ECONOMY likely grew by 6% in the third quarter as declining inflation may have fueled a rebound in consumer spending, Finance Secretary Ralph G. Recto said.

“I’m still hoping 6%, more so that inflation is declining,” Mr. Recto told reporters on the sidelines of an event late on Tuesday.

“The biggest [driver] would be household consumption, which is 75% of the economy,” he added.

For as long as household consumption grows by 6%, Mr. Recto said, the economy would likely grow by 6%. 

Economic managers are targeting 6-7% growth this year. 

In the second quarter, gross domestic product (GDP) expanded by 6.3% as improved government spending and investments offset weak consumption growth. Household spending in the April-June period grew by 4.6% year on year, the weakest since the first quarter of 2021. 

For the first half, GDP growth averaged 6%. The economy has to grow by at least 6% in the second half to hit the low end of the target.

The statistics agency is expected to release third-quarter GDP data on Nov. 7.

Mr. Recto said slowing inflation likely helped drive growth in the July-to-September period.

The consumer price index eased to a four-year low of 1.9% year on year in September from 3.3% in August as food and transport costs declined.

Year to date, inflation averaged 3.4%, settling within the 2-4% target range of the Bangko Sentral ng Pilipinas (BSP).

Mr. Recto said the Development Budget Coordination Committee (DBCC) could meet before yearend to review the macroeconomic assumptions and targets.

“I think the DBCC should meet but maybe in December… not really to adjust but just to review not only growth targets but take a look at the entire macro-fiscal framework,” he said.

Mr. Recto said that any adjustments to the government’s growth and fiscal targets should be for next year, as economic managers also have to consider other factors such as external headwinds.

“We have to take a look at what’s happening globally also. For example, we have to prepare just in case you have more tensions in the Middle East,” he said.

At its last meeting in June, the DBCC kept the 2024 GDP growth target at 6-7% and 6.5-7.5% GDP expansion for 2025. It targets 6.5-8% growth from 2026 to 2028.

Earlier this week, Budget Secretary and DBCC Chairperson Amenah F. Pangandaman raised the possibility of an upward revision of this year’s growth target amid slowing inflation and improved state spending.

Meanwhile, Albay Rep. Jose Ma. Clemente S. Salceda, who also heads the House Committee on Ways and Means, gave a 5.7-6.1% GDP growth forecast for the third quarter.

“Inflation, while obviously slowing down, would still have had some real impact on the consumption patterns of consumers. I expect robust consumption of basic goods to have persisted, but some weakness in discretionary spending,” he said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said he sees at least 6% economic growth in the July-to-September period, driven by better jobs data.

“Easing inflation trend would boost consumer spending… amid the net improvement in employment data in recent months to among the best in 19 years,” he said in a Viber message.

The unemployment rate eased to 4% in August from 4.7% in July and 4.4% in August last year. This translated 2.07 million unemployed Filipinos, down by 305,000 from July and by 149,000 from a year earlier.

The employment rate in August rose to 96%, equivalent to 49.15 million employed Filipinos, from 95.3% in July and 95.6% a year ago. — Beatriz Marie D. Cruz

Inflation now on a ‘target-consistent path,’ says Remolona

A man accepts payment for a takeout meal at a stall along Kalaw Extension in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

INFLATION is now on a “target-consistent path,” which provides room for further easing, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said.

“With inflation now on a target-consistent path, we have room for a calibrated shift to a less restrictive monetary policy stance,” Mr. Remolona said in an interview with Global Finance magazine.

Headline inflation sharply eased to 1.9% in September from 3.3% in August. This was also the slowest print in over four years or since the 1.6% clip in May 2020.

This year so far, inflation has remained within the central bank’s 2-4% target range, except for the 4.4% spike in July due to higher electricity costs.

In the first nine months, headline inflation averaged 3.4%, which was also the central bank’s full-year forecast.

“In fact, about two months before our latest policy rate cut, our forward guidance already indicated that we expected to shift to a less hawkish monetary stance,” Mr. Remolona said.

The central bank kicked off its easing cycle in August with a 25-basis-point (bp) rate cut, bringing the benchmark rate to 6.25% from an over 17-year high of 6.5%.

“The cut in rates in August was driven by our projections of inflation and growth based on the latest data on domestic conditions. The timing of the Federal Open Market Committee’s (FOMC) actions did not play much of a role in our decision,” Mr. Remolona said.

The BSP chief also noted that cutting ahead of the Fed did not have any significant impact on the financial system.

“The reaction of financial markets to the BSP easing its policy rate earlier than the US Fed has been relatively muted, with the Philippine peso weakening only slightly versus the US dollar right after the recent policy decision and has since continued to appreciate,” he added.

However, Mr. Remolona noted that the BSP will “continue to monitor lingering upside risks to prices, including those coming from higher electricity rates and external factors.”

He earlier said that the Monetary Board can cut by up to 25 bps at each of its last two meetings this year, slated on Oct. 16 and Dec. 19.

GROWTH OUTLOOK
At the same time, Mr. Remolona said the economy was able to withstand the effects of high interest rates.

“Previous policy rate increases had some dampening effect on demand, including credit activity. Nevertheless, the impact of tight financial conditions was something the domestic economy could absorb — as indicated by sustained GDP growth and improving employment condition,” he said.

Economic growth will likely settle within the 6-7% target this year, Mr. Remolona added.

“The outlook for domestic output growth over the medium term is largely intact. With 6.3% growth in the second quarter, it would likely settle within the government’s target in 2024 as a whole… We expect growth to be supported by robust construction spending and the timely implementation of various government programs,” he said.

The Philippine economy grew by 6.3% in the second quarter, the fastest in five quarters or since 6.4% in the first quarter of 2023.

Meanwhile, the BSP chief noted the Philippine banking industry’s strong growth prospects.

“The country’s banking sector has been a reliable source of strength for the economy. Bank lending has consistently grown to support economic activities without compromising credit quality. We attribute this in part to prudent lending standards of banks,” Mr. Remolona said.

“We expect the trend of robust loan growth and good credit quality to continue in the months ahead.”

The latest BSP data showed bank lending rose by an annual 10.7% to P12.25 trillion in August from P11.07 trillion a year ago.

Mr. Remolona said that nonperforming loans (NPLs) are “very manageable.”

The banking system’s total loan portfolio was at P14.2 trillion at end-July, with NPLs accounting for 3.58%, he added. — Luisa Maria Jacinta C. Jocson

Rate cuts may boost demand amid condo oversupply in Metro Manila

Condominium buildings are seen in Quezon City, Aug. 22, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

FURTHER RATE CUTS by the Philippine central bank could help spur new residential project launches and drive take-up of existing condominiums in Metro Manila, a property consultant said.

In its third-quarter property market report, Leechiu Property Consultants (LPC) said the inventory level of condominium units in Metro Manila has reached 67,600 units across 510 buildings — “the highest since the pandemic.”

“It’s an oversupply of the buildings in the market at 29 months’ supply. (Developers) have been slowly launching new projects,” LPC Research Director Roy Amado Golez said at a briefing on Oct. 8.

Quezon City and Ortigas (plus fringe areas) have the most number of unsold condominium units at 18,000 and 13,500, respectively.

High interest rates may have dampened demand for residential condominiums in Metro Manila. LPC said 6,885 units were sold in the July-to-September period, “close to the 7,000 level for the third straight quarter.”

The Bangko Sentral ng Pilipinas (BSP) had kept its policy rate at an over 17-year high of 6.5% from October 2023 to mid-August 2024. It reduced the benchmark rate to 6.25% at its Aug. 15 meeting.

“The interest rate levels today are still at elevated levels, at 6.25%. However, we’ll be likely seeing rate cuts in October as well as December. Hopefully, those rate cuts will  boost… the residential market,” Mr. Golez said.

BSP Governor Eli M. Remolona, Jr. earlier signaled the Monetary Board could deliver two 25-basis-point (bp) rate cuts at each of its two remaining meetings this year.

LPC said rate cuts would help ease lending conditions for both developers and homebuyers, as well as encourage developers to launch new projects.

Muted demand may have prompted developers to defer new residential projects. New project launches plunged by 39% to 2,145 units in the quarter ending September, which LPC said was the lowest since the pandemic.

“What developers are most likely doing now is reselling or re-launching or reintroducing marketing programs for their current inventory,” Mr. Golez said, adding that lower interest rates may provide a lift to sales in the next few quarters.

However, LPC noted that property developers may still remain cautious about launching new projects.

“Headwinds due to external risks such as heightened geopolitical events and current global economic uncertainty may see a continued cautious approach by developers,” it said.

Another reason for lackluster demand for condominiums could be the change in preferences of homebuyers.

“It has become evident already in the last so many quarters, especially when you look at the loans taken from the banks. The percentage of loans taken for house allotments has been steadily increasing while those for condominiums have been declining,” Mr. Golez said.

He noted many homebuyers now prefer to live in townships outside of Metro Manila. Townships located south of Metro Manila have been growing, with the population in the Calaba (Cavite-Laguna-Batangas) projected to reach 12 million by the end of 2024 from only 7 million in 2005, he added.

“If you look at the provinces or at least in the Calaba area, along the expressways, you’re getting a bigger unit and you’re in a less dense (area), there’s less traffic (and) a better environment,” Mr. Golez said.

Tam Angel, director for investment sales at LPC, said developers are preferring to do more horizontal developments “because it has a shorter turnaround time for them for a return on their capital.”

As interest rates remained high, developers wanted to preserve their value sheets and their liquidity by shifting more to horizontal development.

“They were able to do that by, instead of building a condo in three, four, five years and having the big chunks of that return come in on the fifth year because we all know these savings are stretched out, they get a balloon payment on the last year,” Mr. Angel added.

He said horizontal development has a faster turnaround time of 18 to 24 months. — Aubrey Rose A. Inosante

Banking system’s total assets jump by 11% to P26 trillion

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE banking industry’s total assets jumped by 10.8% as of end-August, Bangko Sentral ng Pilipinas (BSP) data showed.

Preliminary data from the BSP showed banks’ combined assets rose to P25.99 trillion as of end-August from P23.46 trillion in the same period a year ago.

Month on month, total assets inched up by 0.2% from P25.93 trillion as of end-July.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP), net of allowances for credit losses.

The banking sector’s total loan portfolio inclusive of IBL and RRP climbed by 10.5% to P13.82 trillion as of end-August from P12.51 trillion in the same period a year ago.

Net investments, or financial assets and equity investments in subsidiaries, increased by 6.6% to P7.41 trillion as of end-August from P6.95 trillion a year prior.

Cash and due from banks stood at P2.65 trillion as of end-August, up by 3.9% from P2.55 trillion a year earlier.

Net real and other properties acquired went up by 3.9% to P111 billion from P106.8 billion a year ago.

Banks’ other assets surged by 48.1% to P2 trillion at end-August from P1.35 trillion a year earlier.

Meanwhile, the total liabilities of the banking system rose by 10.8% to P22.73 trillion from P20.52 trillion in the year-ago period.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher asset level as of end-August was due to continued growth in bank lending.

The latest data from the BSP showed outstanding loans of universal and commercial banks rose by 10.7% year on year to P12.25 trillion in August. This was its fastest growth rate in 20 months or since the 13.7% logged in December 2022.

Mr. Ricafort noted that banks’ asset growth is nearly twice the country’s latest gross domestic product (GDP) growth.

The Philippine economy grew by 6.3% in the second quarter, faster than the 5.8% growth in the first quarter and 4.3% a year ago.

“The continued growth in banks’ earnings that also added to banks’ capitalization may have also supported the latest growth in banks’ total assets,” he added.

The Philippine banking system’s combined net income rose by 4.1% year on year to P190.26 billion in the first half.

Mr. Ricafort said that further policy rate cuts by the BSP and US Federal Reserve will also support loan activity.

The central bank could deliver 25-basis-point (bp) rate cuts at each of its two remaining meetings this year, BSP Governor Eli M. Remolona, Jr. earlier said.

The Monetary Board’s next policy review is on Oct. 16.

“The latest cut in banks’ reserve requirement ratio (RRR) and possible further reduction in RRR for the coming years would be another source of growth for banks’ loans, earnings, and total assets,” Mr. Ricafort added.

The BSP has announced its plans to cut big banks’ RRR to 7% from 9.5%, effective later this month.

Mr. Remolona has said that they are looking to reduce the RRR to zero within his term, which ends in 2029.

MPTC’s Singson named as MAP Management Person of the Year

ROGELIO L. SINGSON

ROGELIO L. SINGSON, president and chief executive officer (CEO) of the Metro Pacific Tollways Corp. (MPTC) has been named “Management Person of the Year 2024” by the Management Association of the Philippines (MAP).

“For me, this award is just a recognition that it makes sense to do your job well. I have always been doing work that is beyond standard. I always accept challenges,” Mr. Singson told reporters on the sidelines of MAP’s general membership meeting on Wednesday

The Management Person of the Year award is given to individuals in the business or government sector, member or nonmember of MAP, who have made significant contributions to the country’s progress and helped reshape national values.

The conferment of the award will be on Nov. 25.

According to MAP, Mr. Singson was chosen as this year’s MAP Person of the Year for implementing a good governance and anti-corruption program during his time as the secretary of the Department of Public Works and Highways (DPWH) from 2010 to 2016.

Mr. Singson was also recognized for his humility, ethical conduct and spiritual uprightness, as well as “for setting an example for Filipino managers through an unblemished track record of integrity, managerial competence and professional leadership.”

“This (award) is unexpected. We were just doing our job, although publicly I apologize to the companies and entities that were hurt by decisions I made in the past. I was just doing my job,” Mr. Singson said.

The MAP said the award is given to “exceptional persons who have posted a record of achievement and distinction as leaders and managers of organizations, and who are exemplary models.”

Meanwhile, Mr. Singson confirmed that he is stepping down as the president and CEO of MPTC within this month.

“I am not going to rest, but you know ever since I am in public service… MPTC is public service operating under a private entity,” he said.

Mr. Singson said Arrey A. Perez, who recently resigned as the president of Clark International Airport Corp. (CIAC), will take over his positions at MPTC.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., 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. — Ashley Erika O. Jose

SLMC Bonifacio Global City MAB Corp. to hold Annual Stockholders’ Meeting on Nov. 8 through teleconference

 

 


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MPTC-SMC tollway merger seen to finalize this month

CAVITEX.PH

By Ashley Erika O. Jose, Reporter

THE MERGER between Metro Pacific Tollways Corp. (MPTC) and San Miguel Corp. (SMC) is expected to be finalized this month, according to MPTC President Rogelio L. Singson.

“The merger is actually going to happen sooner rather than later… Expect some announcement soon, within October,” Mr. Singson told reporters on the sidelines of the Management Association of the Philippines general membership meeting on Wednesday.

MPTC initially expected to finalize the planned merger by the first quarter of 2025. However, after the tollways arm of the Pangilinan group finalized its investment deal to acquire a 35% stake in the Trans-Java toll road network in Indonesia, the merger is now likely to happen sooner than expected, Mr. Singson noted.

Earlier this month, MPTC’s subsidiaries and Singapore’s GIC Pte. Ltd. finalized their investment cooperation to acquire a 35% stake in PT Jasamarga Transjawa Tol (JTT), a major toll road operator in Indonesia.

“Indonesia [assets] have to be part of it, and now that the transaction has been completed, the [size] of the merger would be 50:50,” Mr. Singson said.

MPTC has said that while SMC’s toll road assets are larger, MPTC’s Indonesian assets will balance the difference.

The merged company is still being planned to be listed on the Philippine Stock Exchange, Mr. Singson said, adding that MPTC’s initial public offering (IPO) plans would still have to wait.

Mr. Singson said that the merged entity will be listed on the Philippine Stock Exchange, and MPTC’s IPO plans will still have to wait.

“Well, that will have to wait whether we will list separately, or we will wait for a merger and be listed together,” he said.

For Chinabank Capital Corp. Managing Director Juan Paolo E. Colet, market participants are expected to “welcome” the merger as it could translate to significant operational efficiencies and improved financial performance for both entities.

“The scale and dominant position of the unified tollways company would make its IPO attractive to foreign and domestic investors,” Mr. Colet said in a Viber message.

Mr. Colet noted that despite the expected announcement this month, regulatory approvals may cause delays.

“There’s been some uncertainty as to the exact timing of the merger. Even if they announce a deal this year, it will have to go through regulatory approvals, so completing the transaction might take more time, perhaps until early next year,” he said.

Mr. Singson, who will be stepping down as president and CEO of MPTC this month, said the merger will need approval from the Philippine Competition Commission (PCC).

Mr. Singson will be succeeded by Arrey A. Perez, who recently resigned as president of Clark International Airport Corp.

MPTC is the tollway arm of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., 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.