Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 11578

Corruption perception of the Philippines worsens

THE PHILIPPINES dropped 10 rungs in the 2017 issue of the annual Corruption Perceptions Index (CPI) released early this morning by Transparency International.

The Philippines ranked 111th out of 180 countries from 101/176 in the 2016 index, with a score of 34 on a 0-100 scale where 0 denotes that a country is “highly corrupt” and 100 means it is “very clean”, from 35 in 2016.

“CPI results correlate not only with the attacks on press freedom and the reduction of space for civil society organizations,” Delia Ferreira Rubio, chair of Transparency International, said in a press release.

“High levels of corruption also correlate with weak rule of law, lack of access to information, governmental control over social media and reduced citizens’ participation. In fact, what is at stake is the very essence of democracy and freedom.”

The report of Transparency International, which marks its 25th anniversary this year, “reveals some disturbing information”, the statement added.

“Despite attempts to combat corruption around the world, the majority of countries are moving too slowly in their efforts,” the statement read.

“While stemming the tide against corruption takes time, in the last six years many countries have still made little to no progress. Even more alarming, further analysis of the index results indicates that countries with the lowest protections for press and nongovernment organisations also tend to have the worst rates of corruption.”

After the Calata issue, what’ll happen to startups eyeing an ICO?

The concept of an initial coin offering (ICO)—a crowdfunding method used to generate capital by token sales or coin sales—has been in the news lately, though not necessarily positive. A little context: recently, the Securities and Exchange Commission (SEC) called “illegal” an ICO undertaken by Krops, an online marketplace for farm produce led by businessman Joseph Calata. The SEC’s investigation found out that the company has sold 2.4 million units of its token called Krop Tokens or KropCoins, despite an earlier advisory dated January 8 where the SEC urged the public to “be vigilant” in investing in unregistered securities, particularly in an ICO. Despite the decision, Krops continued its coin distribution, insisting that the order does not prohibit the company from selling tokens to foreign investors.

“There is no final decision yet as to whether or not the Krop Token is a security,” Calata said in a message to SparkUp. “We have not yet started our formal discussion on this.”

Calata said the company and SEC will have a bilateral meeting to discuss “matters where we shall fully present facts about the Krop Token and its issuance,” while maintaining that the commission should have conducted a dialogue with Krops first before issuing the CDO. “That way, we could have avoided the public perception of wrongly thinking that what we were doing was illegal,” Calata said, calling the action “quite damaging” to current and future ICOs.

 

‘WE WILL PUSH THROUGH’

SparkUp asked other startups eyeing their own ICOs if the SEC‑Calata issue will change their plans.

Two‑year‑old fintech startup Qwikwire said nothing is stopping it in executing its planned ICO, from which the company seeks to raise $9 million. However, its CEO Ray Refundo said the company may direct the ICO solely to foreign investors—a safe way of complying with SEC’s directive.

“It is very likely that we will block Filipino buyers from participating. But it is not certain yet,” he said.

Pre‑selling of the coin is set to begin on February 26, and regular selling will run from March 26 until the end of April. The app will be launched in September 2018.

“We will push through with [our ICO],” Refundo said in an email. “Our ICO compliance strategy is two-fold: release tokens that already have an immediate utility without waiting for a platform like most ICOs, [making] our token structurally a utility token, and we will only market the platform and its utility, not the ICO or token itself.”

However, Qwikwire is not opposed to regulation. Raf Padilla, legal counsel of Qwikwire, said creating a regulation on ICO is “extremely valuable to finally settle any doubt on the legal status of this new method of raising funds or capital.”

Padilla added that it would pave the way for ICO’s that are “definitive and legal.” He said: “This is a very important development and we should encourage the SEC to carry on. The regulation will also give the SEC the opportunity to define conditions and impose special restrictions that will somehow mitigate the exposure of the public to high-risk ICO investments.”

Meanwhile, Bangkok‑based Global Crypto Hub also recently launched an ICO in the Philippines, selling its own virtual currency called Usereum for investors and remittance services starting last February 15.

The company aims to raise up to $10.5 million from the ICO, which it will use for the creation of cryptocurrency expo and other cryptocurrency awareness programs, among others.

“We are not a local startup and we are not violating any laws of SEC by accepting any fiat currency,” Jagdish Pandya, its co‑founder, said in an email.  “Any Filipino can subscribe by sending Bitcoin purchased by them through Phillippine exchanges only.”

Pandya also thinks that a government regulation on ICO and cryptocurrencies is necessary, as well as a tax structure for these trades.

“Cryptocurrency will contribute billions of dollars of turnover and capital appreciation. [Last] year Bitcoin [was valued] from $1000 to $19,000, Ripple touched 3+ dollar, and Ethereum as high as $1,500,” he said.

“We wish to create cryptocurrency standards,” he added. “Government should invite media, people, and tech experts to give their opinion on formulating policy.”

 

NOT AGAINST

Despite its strict watch on ICO, SEC previously clarified that it is not against such trade.

SEC Commissioner Emilio Aquino said the commission was simply protecting investors who do not know or understand cryptocurrency.

Aquino also announced that the commission would release within the year guidelines for companies opting to launch ICO’s.

“We want also to come out with our own set of regulations,” he said in a press briefing. “We need to act now because ICOs are sprouting globally, not necessarily in the Philippines.”

After all, with startup ecosystems continuously thriving, ICOs seem to present a way for new enterprises to address the perennial issue of lack of funding. But as in any new thing, it may have to wait longer before tech startups can reap the benefits of this new trade.

Competition body readies more rules

By Krista A. M. Montealegre
National Correspondent

THE PHILIPPINE Competition Commission (PCC) plans to raise by June the threshold for deals that require regulatory approval as part of new mergers and acquisitions (M&A) rules.

During a forum on Wednesday organized by the European Chamber of Commerce of the Philippines, PCC Chairman Arsenio M. Balisacan said the antitrust body is preparing within this semester a proposal that will jack up the P1-billion threshold for reporting M&A deals.

“That threshold has been around for some time. The economy is growing very fast, inflation has not been zero so we have to take account of the changing structure of the economy as well as the rate of growth, inflation,” Mr. Balisacan told reporters after the forum.

He declined to provide a range for the new threshold since this is still being studied by the commission.

The private sector has been batting for a higher notification threshold since the P1-billion level was deemed too low and could over-burden the competition agency, spelling delays for companies engaged in M&A transactions.

In the same forum, Solomon M. Hermosa, head of legal and compliance at Ayala Corp., said competition laws have not affected the operations of the conglomerate, but the process has added another level of regulation that has “slowed down” growth initiatives through acquisitions and joint ventures.

The PCC was organized under Republic Act No. 10667 or the Philippine Competition Act of 2015. Signed into law in 2015, the measure prohibits abuse of dominant position and anti-competitive M&A, among others.

Other M&A rules targeted for release include internal guidelines for early termination of cases by March as well as rules on joint ventures and exemption from compulsory notification in the second quarter.

So far, the PCC has been notified about 135 transactions worth P2.2 trillion, with nine deals under various stages of review.

The PCC chairman said the forthcoming rules are not meant to place additional regulatory burden on businesses.

“The PCC is all too aware that onerous rules can stifle business activity and impede the entry of competition,” Mr. Balisacan said.

“Indeed, on the contrary, the PCC is working to establish these frameworks to ensure the speedy and transparent processing of transactions that, from the onset, do not appear to pose any significant risk on healthy market competition.”

MORE RULES
With the end of the two-year transition period last year, the PCC’s technical working group is preparing the rules on leniency, forbearance and inspection orders that are considered critical components of its enforcement mandate.

The leniency rules to be ready by April will bolster the commission’s ability to combat cartels by granting immunity from suit or reduction of any fine which would be imposed on a participant in anti-competitive agreements in exchange for the voluntary disclosure of information.

The PCC is also crafting inspection guidelines that will authorize it to search business premises and other offices where it reasonably suspects that documents or records related to investigations are kept. The rules are targeted to be drafted by May to be presented to the Supreme Court for consideration and adoption.

Likewise, rules on forbearance will be completed by July. The commission may forbear from applying RA 10667 provisions for a limited time on an entity or group of entities that have met specific, stringent conditions.

The PCC has received 91 queries and informal complaints on possible anti-competitive conduct. The regulator’s Competition Enforcement Office has undertaken seven preliminary inquiries, with one ongoing and six having advanced to full administrative investigation, of which four are under way.

Melissa Healy, competition law specialist at multinational law firm Baker McKenzie’s Singapore office, lauded the PCC’s efforts to engage with industries, collaborate with government agencies and learn from regulators in other jurisdictions so that it can come out with rules that are more suitable in the local setting.

“As the economy is growing it becomes even more important to secure a level playing field where domestic companies and foreign companies all compete on an equal footing,” European Union Ambassador to the Philippines Frank Jessen said.

Restrictions on foreign investors to ease soon

By Melissa Luz T. Lopez
Senior Reporter

THE NEW Foreign Investment Negative List (FINL) that, among others, will allow foreign contractors to take on local projects may be approved by President Rodrigo R. Duterte early next month, a Cabinet official said on Wednesday.

Socioeconomic Secretary Ernesto M. Pernia, who heads the National Economic and Development Authority (NEDA) as director general, said the Cabinet has finalized changes to the existing FINL to allow increased foreign participation in several sectors.

“I just signed the one that is going to be submitted to the NEDA Board for approval,” Mr. Pernia told reporters on the sidelines of an event hosted by the Makati Business Club yesterday.

The negative list identifies sectors where foreign investments are limited or are prohibited. The latest version of the FINL issued on May 29, 2015 by then-president Benigno S.C. Aquino III was supposed to have been replaced by a new one last year.

Foreigners can hold up to a 40% stake in companies that operate public utilities; supply materials and goods to state-run firms, government agencies, and municipal corporations; or those that operate infrastructure or development facilities which need a public utility franchise.

To get around these restrictions, foreign firms pair up with Filipino-owned companies through joint venture agreements in order to take on a local project.

Mr. Pernia said the FINL is included in the agenda of the meeting tentatively set on March 6 of the NEDA Board, led by President Rodrigo R. Duterte. Once signed, it would be the first FINL amendment under the Duterte administration. Other projects approved by NEDA’s Investment Coordination Committee are also up for Mr. Duterte’s approval.

Mr. Pernia previously said that the government will allow contractors overseas to take on foreign-funded projects, but will keep the limit in place for those financed from local sources.

This comes ahead of the expected signing of loan deals with China and Japan, as the Philippine government seeks official development assistance (ODA) to fund a portion of its massive infrastructure program.

CHINA LOANS
Mr. Pernia said there is “great scope for growth” with warmer ties between China and the Philippines, with the government keen on tapping Chinese funds despite carrying higher interest rates than that offered by Japan.

The official noted that Manila can get loans from Beijing with rates of 2-3% “at best,” against a 0.25-0.75% for Japanese ODA.

“We cannot get all the loans from the ODA of Japan. They have to give to other countries as well so they have to allocate their ODA,” Mr. Pernia said.

“Ideally, my personal preference is we are friends with all countries.”

Mr. Pernia also pointed out that although higher than Japan’s offer, Beijing’s 2-3% rate is still “much better” than lending rates imposed by commercial banks.

Manila is looking to tap Chinese funding for three projects: the P2.7-billion Chico River Pump Irrigation Project, the P10.9-billion New Centennial Water Source-Kaliwa Dam Project and the P151.3-billion Philippine National Railway South Commuter Line.

These form part of 75 flagship projects which the government wants to roll out until 2022, with a total funding requirement of P8.13 trillion, the NEDA chief said.

Once the loan agreement is signed, Mr. Pernia said Chinese authorities will screen and select three private contractors and present them to the Philippines, which will then vie for the project contracts through a bidding.

The government expects about $2 billion worth of ODA-funded projects to go live this year, which forms part of $9 billion worth of funding committed by China and Japan over the next five years.

Consumer spending growth to slow but remain strong — ANZ

CONSUMER SPENDING could ease in response to rising commodity prices due to tax reform, an analyst at ANZ Research said, even as the Finance department maintains that the higher taxes should have a “minimal” impact on inflation.

“Domestic demand is strong and is likely to remain so. However, the risk of some moderation in consumption growth remains,” ANZ Research economist Eugenia Fabon Victorino said in a report published on Wednesday.

Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act (TRAIN) that took effect last month, introduced additional taxes on fuel, cars, coal, sugar-sweetened drinks and a host of other items.

Ms. Victorino said higher and new levies could dampen growth of domestic consumption, despite bigger disposable incomes from a parallel cut in personal income tax rates.

“While take-home pay is higher for taxpayers, non-tax payers are facing higher prices. In the past, for every one percent increase in headline prices there was a corresponding decrease in private consumption by 0.3%,” Ms. Victorino said.

Household consumption accounts for about 70% of national output. The government hopes to boost gross domestic product (GDP) growth to 7-8% this year from 6.7% last year, 2016’s 6.9% and a 6.2% average in 2010-2015, partly on the back of infrastructure spending that will rise to P1.84 trillion, equivalent to 7.3% of GDP, in 2022, when President Rodrigo R. Duterte ends his six-year term, from a planned P1.098 trillion this year or 6.3%.

TRAIN is widely believed to have been responsible for the auto sales growth slowdown to four percent last month from a 27% increase a year ago.

Government officials and economists have also pointed to TRAIN as a key driver of January’s price spikes that fueled annual inflation to a three-year-high of four percent that touched the ceiling of the central bank’s 2-4% target range for the entire 2018.

January’s faster-than-expected inflation, coupled with expectation of second-round effects like hikes in public transport fares and minimum wage, has prompted the Bangko Sentral ng Pilipinas to raise its 2018 inflation forecast to 4.3% from 3.4% previously.

ANZ Research expects inflation to average at 4.1% this year, before slowing to 3.4% in 2019.

‘MODERATE’
For its part, the Department of Finance (DoF) said tax reform is not expected to fuel inflation further.

In an analysis report sent to reporters, DoF Undersecretary Karl Kendrick T. Chua said TRAIN “can potentially increase inflation by up to 0.7 percentage points (ppt) in 2018,” with food prices to rise by as much as 0.3ppt and transport fares by 0.1ppt.

“This is very minimal and manageable, especially compared to the savings from lower income taxes,” Mr. Chua said.

Turning to last month’s inflation rate, the official said the higher reading was partly due to base effects as inflation clocked 2.7% in January 2017.

He added that retailers were likely still selling old stocks last month which were not covered by higher or additional taxes imposed on several products.

“Since the tax increase was not expected in the first half of the month due to sale of old stock, we can surmise that profiteering is a major reason for the higher-than-expected inflation. We expect this to ease in the coming months as the government intensifies monitoring of prices and as the markets adjust,” Mr. Chua said.

He noted that January’s faster inflation likely resulted from “better compliance” with tobacco tax rules, particularly citing higher cigarette prices charged by Mighty Corp. to reflect right taxes paid by its new owner, Japan Tobacco International (Philippines), Inc.

Tobacco inflation stood at 17.4% last month, against an eight percent increase prescribed by law.

On the whole, the DoF said these price upticks are likely to be temporary.

“At almost four percent, the January inflation rate is considered moderate,” Mr. Chua said.

“As the inflation target is set by the BSP for the whole year, one month of higher inflation is not a concern.” — Melissa Luz T. Lopez

Many Asian marts rise as focus shifts to Fed signals

HONG KONG — Hong Kong led a number of Asian markets higher on Wednesday as traders brushed off a retreat on Wall Street, with attention turning to the release later in the day of minutes from the Federal Reserve’s most recent policy meeting.

Trading floors have calmed down since volatility that greeted the start of February, which was caused by concerns about the impact of higher US interest rates and Treasury bond yields.

While New York’s three main indexes ended in negative territory on Tuesday, Asian dealers were in upbeat mood, helping the dollar recover from recent losses against the yen, euro and the pound.

Hong Kong surged 1.8%, boosted by energy firms after a recent run-up in oil prices, and further chipping away at the more than nine percent losses in a torrid week earlier in February.

Tokyo’s Nikkei ended 0.2% higher.

Sydney gained 0.1%, Singapore put on 1.1% and Seoul was up 0.6%.

Wellington climbed 1.3% and Taipei returned from a week-long Lunar New Year break to jump 2.8%.

The Fed minutes will be closely pored over for clues about the views of policy board members as US inflation edges up, wages improve and Donald Trump’s tax cuts come into play.

Stephen Innes, head of Asia-Pacific trading at OANDA, said: “US equity markets fell overnight on the back of higher US Treasury yields which are providing investors with more income than dividends on the S&P 500 Index.”

However, “while the prospect of higher interest rates will keep investors on edge, it’s not like we’re returning to double-digit levels.”

He added that even a rise in key US 10-year yields to 3.25% is “unlikely to kill the equity market rally as the benefits from fiscal stimulus should continue to feed through the markets. Investors are banking on much higher returns from equities than bonds again in 2018.”

On oil markets both main contracts edged down on Wednesday after a recent series of gains as the dollar edges higher, while analysts say the output cap led by the Organization of Petroleum Exporting Countries and Russia is helping to mop up the global glut that hammered prices in previous years.

Dealers are awaiting the release of stockpiles data from industry group American Petroleum Institute (API) later in the day.

“Should API release report on a fourth-week build-up in crude oil inventories, we can expect for a halt in the build-up of prices,” warned Avtar Sandhu of Phillip Futures.

In early European trade London dipped 0.1%, Paris shed 0.3% and Frankfurt gave up 0.2%. — AFP

Ayala Land plans to raise up to P25 billion

AYALA LAND, Inc. (ALI) plans to raise up to P25 billion from a combination of retail bonds, loans, and qualified buyer notes this year to partially finance its aggressive spending program and to refinance existing debt.

In a disclosure to the stock exchange on Wednesday, ALI said its board of directors approved the plan to raise as much as P20 billion through retail bonds and bilateral term loans, which will be used to fund the company’s P110.8-billion capital expenditure budget this year.

The retail bonds will be issued from the P50-billion shelf registration program the company has with the Securities and Exchange Commission since March 2016, which will then be listed in the Philippine Dealing and Exchange Corp. (PDEx). In an earlier interview, ALI Chief Finance Office Augusto Cesar D. Bengzon said the company has P18 billion left in this debt securities program.

Meanwhile, the listed property firm’s board has also approved the issuance of qualified buyer notes to raise up to P5 billion for the refinancing of its short-term loans.

The company previously raised P3.1 billion in short-dated notes, which were also listed at the PDEx, last November 2017 to finance its short-term debt.

ALI has committed to spend P110.8 billion in capital expenditures this year, 21% higher than its actual spending of P91.4 billion in 2017, to support the demand for more residential properties in the country. Around 43% of the capex or P47.4 billion will be allotted for residential projects, 17% or P18.7 billion for mall projects, 12% or P14 billion for land acquisitions.

The remaining portion allocated for the hospitality business and the development of existing estates.

The accelerated capex comes alongside the plan to launch P125 billion worth of projects this year, against the P88 billion worth of projects unveiled in 2017.

MALAYSIAN DEVELOPER
Meanwhile, ALI said it has also completed the unconditional mandatory take-over offer made by its wholly owned subsidiary, Regent Wide Investments Ltd. to minority shareholders of Malaysian developer MCT Bhd.

The company undertook the mandatory take-over offer after it increased its stake in MCT to 50.19% in January, adding 17.24% to its original share. With the transaction, ALI was able to further raise its stake in the company to 72.31%, after taking over some 295.28 million shares held by minority shareholders, or 22.12% of MCT’s total outstanding shares.

ALI initially purchased a 9.16% interest in MCT back in April 2015, which was the company’s first investment in Southeast Asia. The company has since been propping up its stake in MCT, which allows ALI to take advantage of the growing real estate sector in Malaysia.

MCT was founded in 1999 as a construction company, specializing in mixed-use projects that include retail, office, hotel, and mid-range to affordable to residential properties.

ALI’s attributable profit grew 21% to P25.3 billion in 2017, driven by the 14% increase in revenues to P122 billion amid strong demand for residential projects in the country.

Shares in ALI lost a peso or 2.17% to finish at P45 apiece at the stock exchange on Wednesday. — Arra B. Francia

Yields on term deposits inch up despite strong investor demand

By Melissa Luz T. Lopez,
Senior Reporter

YIELDS on term deposits offered by the Bangko Sentral ng Pilipinas (BSP) inched higher yesterday despite strong demand, which comes ahead of the release of additional money supply due to lower bank reserves.

Banks wanted to place as much as P130.488 billion under the term deposit facility (TDF) on Wednesday, higher than the central bank’s P110-billion offering although lower than the P150.757 billion tenders posted a week ago.

All three tenors offered by the central bank stood oversubscribed, with bids matching the amounts set by the monetary authority.

Players wanted to park P53.368 billion with the BSP under the seven-day term, slightly higher than the P50-billion volume. Despite the bigger amount, the average yield climbed to 2.8164% from 2.7232% during the previous auction.

The 14-day tenor likewise remained a viable option for market players, with the P40 billion volume met by P46.765 billion tenders. This is the second time when the BSP offered two-week term deposits.

Still, the average rate sought by banks climbed to 2.9798% from 2.8737% previously.

Demand for the 28-day term deposits also went beyond the P20-billion offer, with banks willing to park as much as P30.355 billion under the window. The amount, however, declined from the P39.935 billion bids a week ago.

The average yield for the month-long instrument also rose to 3.0258%, coming from the 2.965% fetched last week.

The TDF is the central bank’s main tool to shore up excess funds in the financial system. The window allows banks to park the idle cash they hold under the BSP in exchange for a small return, which in turn will prompt market rates to inch closer to the three percent benchmark set by the central bank.

Any excess cash which have not been deployed for loans, foreign exchange and debt payments can be parked under the central bank window in order to make small gains, rather than leave these idle inside bank vaults.

For next week, the BSP will offer another P110 billion to banks, with the volume for each tenor also retained.

Central bank officials said last week that they will now be focusing on “auction-based” monetary operations, as it introduced a one percentage point cut in the reserve requirement ratio (RRR) imposed on universal and commercial banks.

The BSP has dubbed the RRR cut as an operational move, which will take effect March 2.

“We now have the corridor system pretty much in place and we do have the available instruments to address any impact of that reserve requirement (cut),” BSP Managing Director Francisco G. Dakila, Jr. told reporters last week.

Mr. Dakila said the reserve cut will unleash some P90 billion into the financial system, which they expect to be mopped up through the TDF and other policy tools.

Domestic liquidity expanded by 11.9% in December to reach P10.6 trillion, according to latest available central bank data.

UnionBank of the Philippines raises P3 billion from LTNCD offering

By Karl Angelo N. Vidal

UNIONBANK of the Philippines raised P3 billion from its long-term negotiable certificates of deposit (LTNCD), which it wants to use to improve its maturity profile and help expand its business.

At the ceremonial listing of the investment instruments on Wednesday at the Philippine Dealing System (PDS) in Makati City, the Aboitiz-led UnionBank said it raised P3 billion from the peso-denominated issue.

The notes will mature in 5.5 years and carry an interest rate of 4.375% to be paid quarterly until August 21, 2023.

The issuance is the first tranche of UnionBank’s P20-billion LTNCD program approved by the central bank.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

In an interview, UnionBank President and Chief Executive Officer (CEO) Edwin R. Bautista said proceeds from the long-term note offering will be used for liability management and to support business expansion plans.

“Well, this signifies our continued expansion. We also need this to improve the tenor mix of our liabilities,” Mr. Bautista told BusinessWorld after the listing ceremony.

“The LTNCD is a long-term instrument [for us] to increase the maturity profile of our deposit liabilities… You have to develop sources of funding for the long-term,” UnionBank Chief Financial Officer Jose Emmanuel U. Hilado explained.

The LTNCD offer was only the second one for the lender after it raised P3 billion worth of long-term notes in 2013.

Standard Chartered Bank arranged the deal, and also served as a selling agent together with UnionBank and Multinational Investment Corp.

Asked when the lender will issue the next tranche of the approved P20-billion program, Mr. Bautista said: “Tama na muna (It’s enough) for now. We don’t know yet.”

PDS President and CEO Cesar B. Crisol said UnionBank is the third company of the Aboitiz group, the other two being Aboitiz Equity Ventures and AboitizPower Corp., to venture into the corporate bond market this year.

“With this listing, the Aboitiz group’s cumulative level of outstanding bonds listed will be at the level of P48 billion, representing 6% of the overall listed corporate bonds,” Mr. Crisol said.

UnionBank’s listing brings the total volume of outstanding listed securities to P759.528 billion, floated by 45 companies.

Other big banks have also raised finances via LTNCDs. In November, Bank of the Philippine Islands (BPI) listed P12.24 billion worth of long-term notes, the single largest LTNCTD offering to date.

Apart from BPI, Security Bank Corp., Philippine National Bank, East West Banking Corp. and BDO Unibank, Inc., among others have rolled out their own fund-raising plans through separate note offerings announced over the past few months.

Future of Facebook: artificial intelligence, VR

By Arra B. Francia, Reporter

FACEBOOK USERS will see more products being introduced to their feeds in the following years, as it plots the use of artificial intelligence (AI), virtual reality (VR) and augmented reality (AR) in the social network’s 10-year road map.

With a community of more than two billion people over the globe, Facebook is making sure it is at the forefront of technological developments that will connect more people in the future. Facebook Philippines Country Head John Rubio said the networking giant is currently studying how new technologies can be integrated with the social media platform.

“We’re really excited about continuing our connectivity push because we will not stop until every single person on the planet is connected and can connect to their friends and family, engage in businesses that are important to them,” Mr. Rubio said during a roundtable discussion in Taguig City on Wednesday.

For the first half of the 10-year road map, the emphasis will be on other products offered by Facebook. Mr. Rubio said while Facebook and photo-sharing app Instagram have been their main ecosystems in the past three years, the push is now towards Messenger.

One of the changes users can see in the Messenger app is the introduction of ads in between message threads. Users can also pay for their purchases online through the app, as it can be directly linked to online payment platforms such as Voyager Innovations’ PayMaya and Globe Telecom, Inc.’s G-Cash.

An added feature on the Facebook app is Marketplace, which gives small and medium enterprises (SMEs) the chance to directly connect with their buyers through posting the products they sell on the app.

“The focus is creating more meaningful interactions,” Mr. Rubio said.

He cited a Facebook study that revealed about 70% of SMEs that use the platform to advertise their business increased their customer base, while another 80% were able to sell their products better.

Facebook also looks to boost connectivity through Workplace, a platform where users communicate via groups, and allowing them to use Facebook in a more corporate and professional environment.

The company is further propping up search, groups, and video features within Facebook, while encouraging people to use them more.

Five years into the road map, Facebook will then focus on improving connectivity. The company targets to introduce AI, in a bid to be more inclusive towards people with disabilities.

“AI, very important for us from two perspectives, is another future push to enable, for example people with disabilities, sight or hearing impaired, we can help you. And also with AI, it will help facilitate things like ensuring accuracy on the network with more machine learning basis,” Mr. Rubio explained.

Next would be the introduction of VR/AR features, which the company believes to be instrumental in building more connections in the future.

“Because of how when we look at the current offline and online platform that we have, we want to make sure that when there is a virtual reality world that we have a platform to engage people and businesses in the future… It’s going to be part of the platforms for the future, and we want to make sure that we are well-placed there,” Mr. Rubio said.

Asked if the addition of these products and services would overwhelm Facebook, Mr. Rubio said the company will always focus on value so that the experience would be seamless for users.

“We really care about driving impact and customer value. So if we feel that it’s something that drives value to a customer, it’s something that a company or an SME feels that they can leverage, we feel that it becomes almost seamless in how people interact with our platform,” Mr. Rubio said.

PLDT to open data center in Cebu in April

PLDT, Inc. is scheduled to open its 10th Vitro data center the country in April.

In a statement, the telecommunications giant said ePLDT’s newest data center, located in Cebu,   will provide additional 800 racks capacity. This will add to the 8,300 racks it currently has in its first site in Cebu, along with data centers in Pasig, Parañaque, Taguig, Subic, Clark, Davao and Makati.

“Visayas and Mindanao are homes of the most vibrant industries and business communities who greatly contribute to the country’s economic growth. We’ve seen the traction of data center services being utilized in the operations and business continuity plans of the region’s local enterprises,” PLDT Group Chief Revenue Officer and ePLDT President and CEO Ernesto R. Alberto was quoted as saying in a statement.

Mr. Alberto said ePLDT’s expansion addresses the rising need for data center services in the region.

The new VITRO data center will have 11 layers of physical security and employ the use of biometric devices equipped with finger vein recognition technology. It will also have 200 Disaster Recovery Seats to address the business continuity requirements of Cebu-based enterprises.

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

Lady Eagles survive ‘Battle of Birds’ thriller

By Michael Angelo S. Murillo
Senior Reporter

THE upswing of the Ateneo Lady Eagles in Season 80 of the University Athletic Association of the Philippines (UAAP) continued yesterday as the team booked its third straight victory with a five-set win over the Adamson Lady Falcons, 25-18, 14-25, 25-18, 15-25 and 15-10, at the FilOil Flying V Centre in San Juan City.

Had it seesaw throughout the match, the Lady Eagles (3-2) got their act just in time amid a spirited challenge from the Lady Falcons to claim the victory and extend their ascent in the tournament after losing their first two matches while dealing Adamson (2-3) its second consecutive loss.

The two teams went back and forth to open the match with the Lady Falcons establishing an early 8-5 lead.

But Ateneo would start to pick up the pace of its game as the frame advanced and clawed its way back.

It first tied the count at 11-all, boosted by service aces from skipper Maddie Madayag, before completing the turnaround by the second technical timeout, 16-14.

Adamson managed to come within a point, 17-16, but that was the closest it could get as the Lady Eagles flapped their wings and race to an 8-2 run to close out things and claim the set.

The second set took a similar route in the early goings with the Lady Falcons taking the count by the first technical break, 8-3.

Towed by veterans Mylene Paat, Eli Soyud and Joy Tacuron, Adamson continued to hold sway midway into the frame, 16-9, and never looked back after to level the match at one set apiece.

In the third set the teams went toe-to-toe, fighting to a 9-all count before Ateneo went on a 3-0 mini-run to give itself a 12-9 cushion.

Adamson continued to charge back, closing the gap at 15-14 only to lose grip the rest of the way and fell down by a set.

The Lady Falcons though would come back in the fourth period with more bounce and focus following their “meltdown” prior, claiming an 8-4 advantage and then 16-10.

Adamson’s lead grew to 12 points, 22-10, before Ateneo stopped the bleeding with two straight points after.

It proved to be short-lived as the Lady Falcons held on to force a deciding fifth set.

In the decider, the teams battled it tight, locking heads at 6-all to start off things.

The Lady Eagles were first to hit double digits, 10-8, as their attacker Jhoanna Maraguinot and Jules Samonte made their presence felt.

They extended their lead to 13-10, which proved to be difficult to overhaul for the Lady Falcons as Ateneo went on to park the win.

Maraguinot top-scored for the Lady Eagles with 15 points with Samonte adding 14.

Madayag also finished with 14 points, seven from attacks, four blocks and three service aces, to earn player of the game honors.

Soyud, meanwhile, led Adamson with 19 points.

“We struggled with our defense in stretches of the game but we just talked it over and adjusted accordingly especially in the fifth set,” said Madayag after their win

Ateneo next plays on Sunday against the struggling the University of the Philippines Lady Fighting Maroons while Adamson takes on defending champions De La Salle Lady Spikers on Saturday.

1...11,57711,57811,579...12,813Page 11,578 of 12,813
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube