Sterling Paper Group of Companies (SPGC), a conglomerate known for its paper products, recently acquired the country’s first artificial intelligence‑powered chatbot startup ChatbotPH for an undisclosed amount.
According to Ron Baetiong, founder and CEO of ChatbotPH, the deal was SPGC’s way of “investing in the future” and protecting the conglomerate’s call center operations from the harm that artificial intelligence, or AI, might bring to its business. Tucked under SPGC’s belt is Sterling Global Call Center, an outsource contact service provider servicing local and foreign clients.
“They (Sterling) knew that AI was a threat to the call center [industry], so rather than getting hit by the wave, they took the opportunity to invest in the future and mitigate the risk brought by AI to the BPO industry,” Baetiong told SparkUp in an email.
Meanwhile, ChatbotPH, launched in January 2017, is the country’s first AI‑enabled startup. It creates, maintains, and trains chatbots for local businesses. (Read more about that here.)
Photo ChatbotPH
Artificial intelligence (AI) has long been considered as a threat to some companies and workers in the BPO industry. The anticipated rise of AI‑powered computer programs and “chatbots” are feared to dispatch more than a million Filipinos in the country’s ₱25‑billion BPO industry.
Despite the deal, Baetiong said the startup’s current management still have a hold in the company.
“We still get to operate like a startup and we have autonomy over our vision or operations,” he said. “The only thing that’s different now is that we have a lot of resources that we can use compared to how we were operation last year.”
In a statement, SPGC chairman Henry Lim Bon Liong said ChatbotPH was the third company it has acquired in six months.
“We believe that Chatbot.ph is really the future of how technology can further enhance and improve customer service of businesses and also allow easier and faster access of information to the users,” Bon Liong said.
The Bureau of Customs (BOC) on Monday, March 26, filed charges against two importing companies and two customs brokers “for gross undervaluation of imports and large-scale agricultural smuggling,” according to a statement released by the agency.
The first complaint filed by the Bureau’s Action Team Against Smugglers (BATAS) before the Department of Justice (DoJ) accused Subic-based vehicle retailer Granstar Premiere Sports Corporation (GPSC), its owner Fabian A. Go, and customs broker Norinel O. Quezana of smuggling 112 brand new Vespa scooters last Jan. 22, 2014.
According to the press statement, “the declared value of the shipments plus duties and taxes amount to only P3,647,770, but based on the value provided by the Import Assessment Service (IAS), the actual dutiable value of the shipments plus duties and taxes amount to P28,297,167.46.”
Meanwhile, the second complaint was charged against Manila-based importer Seven Myth Marketing (SMM), its owner Leoncio Victor S. Mangubat, and customs broker Mary Faith D. Miro for misdeclaring 15 containers of rice as ceramic tiles last Dec. 7, 2017.
According to the statement, the two shipments from China only had one container of the declared ceramic tiles while the rest “(contained) 7,150 sacks of 50 kilograms Sinandomeng Aguila and Sinandomeng Mayon rice with estimated duties and taxes of P10,013,503,50.”
“Since the value of the shipments is over Ten Million Pesos (P10,000,000.00), the consignee and the broker were likewise charged for the economic sabotage for large-scale agricultural smuggling under R.A. 10845 or the CMTA,” Customs sa
“We will make sure that importers and brokers blatantly violating Customs rules and regulations will face legal action and revocation of Customs accreditation,” said Mr. Lapeña. He added:
“I have given BATAS Executive Director Yasser Ismail Abbass strict instructions to go hard on smugglers and intensify the filing of cases against the, big or small.” — Dane Angelo M. Enerio
Senior high students from all over the Philippines who participated in Globe’s ProjectEd video contest submitted short films shot using their mobile phones on how technology is changing how they learn. From around 100 entries, it was hard to pick just ten, and then eventually whittle it down to just three.
Finally, on March 8, the top three winners were announced.
First prize went to the University of the East-Caloocan for their entry “Phantasm”, which (very little spoiler warning here) is about virtual reality. They won ₱50,000 cash and a ₱50,000 education package from Globe Telecom.
The Manila campus of University of the East bagged second place with their video “Resiliency”, showing that there’s no excuse for not learning when you have technology by your side. They won ₱30,000 cash and a ₱30,000 education package from Globe Telecom.
Pitogo High School won third place by making full use of practical special effects and mobile apps for “A Ride Beyond Limitations”, which was shot in Bonifacio Global City. They won ₱20,000 cash and a ₱20,000 education package from Globe Telecom.
Emerson Reyes, a filmmaker and professor from De La Salle‑College of Saint Benilde, was one of the keynote speakers during the awards night. “As educators, as learners, we need to ignite change. We need to create content that slowly change the world,” Reyes told the students. He added that the process of making a film itself can also inspire learning in young filmmakers.
Thus, teachers should embrace videos as an educational tool as well. “Video is a constantly evolving field, for us teachers, to inspire students and engage them more we create more content,” said Reyes. “The most important thing is to believe, for us teachers to believe in our students and for students to believe in us teachers.”
Moving forward, Globe Telecom is expected to have more programs advocating digital learning. In particular: video learning. “[It’s] reinforcing the message that you can learn anytime, anywhere using technology at your disposal,” said Gil Genio, chief technology and information officer of Globe.
Hopefully, this leads to more professors and students to embrace video for education in the future.-LDG
Lent is an important time for our primarily Catholic nation, and Manila residents need not go far to take part in the tradition of Visita Iglesia.
Part of the Department of Tourism’s thrust towards faith tourism is a partnership with the Intramuros Administration where the old center of Manila will take center stage: this year’s Lenten activities will take place amid baroque churches and fortified bulwarks.
Seven churches in Intramuros will serve as stops for Maundy Thursday (March 29)’s Visita Iglesia, and will be open to the public from 8 in the morning to midnight. This is the first time that these churches will all be open to the public since World War II, allowing us to follow the footsteps of our Spanish era ancestors.
The seven churches are:
The Manila Cathedral
Built in 1571 at the center of Intramuros, the episcopascal seat of the Manila Achbishop has hosted three papal visits: Pope Paul VI, Pope John Paul II and Pope Francis.
San Agustin Church
This Baroque church was designated as a World Heritage Site by UNESCO in 1993, and is one of the oldest churches in the Philippines.
San Ignacio Church
Photo Wikipedia
This Jesuit church was completed in 1899, and houses the Museo de Intramuros.
Guadalupe Shrine
This small shrine is located inside Fort Santiago, where national hero Jose Rizal spent his last days.
Knights of Columbus Fr. Willmann Church
Located inside the Knights of Columbus building, the church is named after the first district deputy of the organization in the Philippines of this Catholic fraternal service organization.
Lyceum of the Philippines University Chapel
This chapel is seated within the Lyceum of the Philippines University Manila campus, a school founded by Dr. Jose P. Laurel, who eventually became the Philippines’ third president.
Mapua University Chapel
Photo Wikipedia
This chapel is seated within the Mapua University campus, and manages to keep its old school charm in a school known for its information technology courses.
Other activities
General Luna Street will also be the site for the Via Crucis, more commonly known as the Stations of the Cross, from Maundy Thursday to Black Saturday (March 31). Follow the last days and sacrifice of Jesus Christ with images that were supplied by the San Agustin Museum through the Vatican II‑sanctioned New Way of the Cross.
Martir sa Golgota, a modern take on the classic Cenaculo plays, will also be staged along General Luna street, in front of Palacio del Gobernador, by the Tanghalang Sta. Ana, and directed by seasoned performer and Tanghalan president Lou Veloso. Catch the play at 7:30 p.m. on Maundy Thursday.
The Department of Tourism estimates that there will be at least 500,000 local and foreign tourists on Maundy Thursday and Good Friday. To facilitate traffic within Intramuros, General Luna will be closed to traffic, while there will be ten parking areas provided to the public. There will also be guards, water stations and vending sites stationed along the way. The Red Cross van is stationed in front of the Manila Cathedral, at Plaza Roma. There are portalets stationed at the Manila Cathedral and San Agustin Church.
Opening up Intramuros for Lenten activities is only a part of the DoT’s endorsement of faith tourism. With our rich history steeped in folk Catholicism, pre-colonial beliefs, Islam, and various practices taken from trade with nearby nations, our country has a lot to offer when it comes to the fascinating topic of religion and belief.-LDG
Uber Technologies Inc. has agreed to sell its Southeast Asian operations to Grab, withdrawing from yet another fast-growing region to end a war of attrition with a fierce local rival.
Under the agreement, Grab will acquire all of Uber’s operations in a region of 620 million people, including food delivery service UberEats. The U.S. ride-hailing behemoth in return gets a 27.5 percent stake in Grab and its chief executive officer will join the board of the Singapore-based company. Bloomberg News reported over the weekend that the two companies had finalized a deal.
The cease-fire marks a victory for Grab as well as SoftBank Group Corp., the biggest shareholder in both companies. Masayoshi Son’s firm is pushing to reduce competition in a Southeast Asian ride-hailing market forecast to reach $20.1 billion by 2025. Uber and Grab, together with two other SoftBank-backed ride-hailing firms — India’s Ola and China’s Didi Chuxing — provide about 45 million rides a day, according to SoftBank presentation material in February.
For San Francisco-based Uber, pulling out of running its own business in Southeast Asia cuts back on losses ahead of a planned initial public offering in 2019. But the deal marks the latest retreat by the world’s most valuable startup from a rapidly expanding arena: Uber sold its business in China to Didi in 2016 after a battle in which both burned through cash to court drivers and riders with rich subsidies. Uber negotiated a similar move in Russia last year.
Shares in ComfortDelGro Corp., Singapore’s largest taxi company, rose as much as 3 percent Monday.
“Today’s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region,” Grab CEO Anthony Tan said in a statement.
Uber CEO Dara Khosrowshahi has been pushing to bolster the financials of a company that’s burned through $10.7 billion since its founding nine years ago. Khosrowshahi signaled during a trip through Asia last month that he’s committed to other key markets such as Japan and India. But its latest exit suggests Uber is more than ever dependent on its home market of North America, not unlike Khosrowshahi’s previous U.S.-centric employer, Expedia Inc.
For Grab’s Tan, the truce brings to an end a bruising battle for leadership in Southeast Asia.
Grab, which started out as a taxi-hailing app in Kuala Lumpur in 2012, became the region’s dominant ride-hailing service in past years with $4 billion raised from investors. It was most recently valued at $6 billion, according to CB Insights. Today, with more than 86 million mobile app downloads, it offers a wide range of ride-hailing services in 191 cities across Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia.
The deal “will help us double down on our plans for growth as we invest heavily in our products and technology,” Khosrowshahi said in the statement. — Bloomberg
Parkway Corporate Center redefines a modern, corporate lifestyle
with its future-ready, green features and enviable location,
for companies and their employees to enjoy.
Traffic mitigating solutions, the increasing demand for parking spaces, pedestrianization and the ease of walking around, and the constant need for nearby dining and retail establishments — these are some of the requirements of corporate employees today. And thanks to the forward-looking vision of Filinvest City in Alabang, locators now have a self-contained, masterplanned central business district that progressively addresses these needs of city dwellers.
As a balanced, integrated urban development, Filinvest City takes pride in its multi-dimensional live-work-play environment, high accessibility, and eco-centric features, making it an excellent location for business expansion. Some of Filinvest City’s innovations are its continuous effort in having lush greenscapes, its open parks, its deployment of electric jeepneys, and the widened road networks with pedestrian-friendly sidewalks and bike-dedicated lanes. All these make for an ideal workplace in the garden city in the Metro South.
At the heart of Filinvest City stands the 32-storey Parkway Corporate Center, strategically located at the prime corner of Corporate and Parkway Avenues. A development by Filinvest Alabang, Parkway Corporate Center was conceptualized with urban working professionals in mind. Masterplanned by the renowned design firm H1 Architecture, the state-of-the-art office tower has integrated features that respond to these professionals’ ever-evolving urban lifestyle needs.
With Parkway Corporate Center, investors and end-users have the opportunity to own office spaces in a smart, green-oriented building that is currently pursuing a Leadership in Energy and Environmental Design or LEED certification. Office units range from a flexible 36-square meter all the way to a full floor.
Among the modern building facilities of the Parkway Corporate Center are six high-speed elevators, 24-hour security with CCTV cameras in strategic areas, 100% back-up power, and an advanced fiber optic backbone. Parkway Corporate Center also boasts of a glass curtain wall that is double-glazed with low e-coating that prevents heat and UV radiation, resulting in cost and energy efficiency as well as sustainability.
As a future-ready office tower that takes pride in a balance between nature and commerce, it has an elegant main lobby that provides a warm welcome; a retail plaza at the ground floor for convenience; a fully-equipped business center at the 7th level, which consists of four rooms ideal for meetings, seminars and other small business functions; a podium deck garden and pocket balconies on every five floors that give corporate employees a breath of fresh air in a highly competitive corporate setting; and eight levels of secured parking for security and accessibility.
Further advantages that make Parkway Corporate Center stand out is how it is accessible and convenient to private, as well as public transportation, as it is located near the Filinvest Exit and to shopping and leisure hubs like Festival Alabang, Westgate, and The Palms Country Club. With this location, everything is within reach and is custom-made for businesses that aim to thrive in a work setting that is sustainable and conducive to work productivity.
“Parkway Corporate Center’s location, architecture, and building facilities are all deliberately planned to ensure maximum potential for investors and locators and help them gain competitive advantage,” said Filinvest Alabang, Inc. Executive Vice-President Catherine A. Ilagan. “In addition, our corporate tower is set amidst ample open spaces lined with lush greenery, indeed welcome respites from the hustle and bustle of city life.”
Soon, investors and locators can move into this prime business address as Parkway Corporate Center is set to be completed and turned over by the fourth quarter of 2018. So, why not grow your business together with Filinvest City at Parkway Corporate Center today? For more information, please call (02) 809-6517 or visit www.parkwaycorporate.com.
From a relatively small and unpopular sector, baking in the Philippines has grown into a large industry that provides greater business and employment opportunities. The industry, which is primarily traditional in nature, has continued to thrive in today’s modern era as it welcomes and embraces technology and culinary trends, slowly but surely.
Baked goods such as breads and cakes have become a huge part of Filipino lifestyle. Almost every household opts to enjoy their breakfast with a cup of coffee and bread, and celebrates special occasions with cakes. Breads, aside from being a reliable snack, also reflect the culture and history of some provinces in the country.
Considering the large and reliable Filipino market, the local baking industry remains strong. This can be seen in the number of bake shops and stores located in commercial malls and busy streets across the country.
According to the 2013 Annual Survey of Philippine Business and Industry (ASPBI), released by Philippine Statistics Authority (PSA) in 2016, bread, cakes, pastries, pies and similar ‘perishable’ bakery products were accounted for the most number of manufacturing establishments in the formal sector of the Philippine economy at 6,618 or 26.3% of the total. In terms of employment generation, it ranked second with 74,406 workers among other sub-classes in the manufacturing industry.
For the past years, changes in the baking sector is observed along with the changes in the tastes, preferences and lifestyles of most Filipinos.
From the traditional way of making breads and pastries through a brick oven, fired with wood, or “pugon”, most bakeries in the country today use electric or gas oven that requires less labor to operate and maintain.
The use of measuring cups made from plastic or wood are also fading slowly as digital weighing scale, which provide more accurate measurements, was invented. Moreover, recipes — which are primarily written in a piece of paper or passed from baker to baker by mouth — are now curated digitally and are shared in social media, giving bakers as well as home bakers the opportunity to try other recipes.
With the help of better equipment and technology, it has become easier for bake shops to operate efficiently and ensure quality in each product they offer. It also helps bakery chains to standardize recipes, making it easier for them to expand via franchising.
For small and medium-sized bake shops who can’t adapt to technological innovations, the Department of Science and Technology (DoST), through its Small Enterprise Technology Upgrading Program (SETUP), helps small businesses address their technical problems by means of technology transfer and technology interventions.
Baker-entrepreneur Flora Martirez was named the 2016 Best SETUP (Small Enterprise Technology Upgrading Program) Adaptor in Caraga. — caraga.dost.gov.ph
SETUP is one of DoST’s flagship programs that encourages and assists small and medium-scale businesses to adopt technological innovations to improve their operations and boost their productivity and competitiveness. The SETUP interventions are focused on six priority sectors: food processing, furniture, gifts, decors and handicrafts, marine and aquatic resources, horticulture, and metals and engineering.
In particular, small and medium-sized bakeries can ask for assistance from the agency to help them acquire baking technologies such as spiral mixer, planetary mixer, roller machine, proofer, bread slicer, and gas oven.
Innovation in the baking industry does not just revolve on the baking process itself but also on the development and redevelopment of baked products. With the increasing need of consumers for variety, baked goods companies are now creating products that are healthier and taste better.
As observed, innovation today is no longer limited to pastries, cakes or bread loaves as even the popular local bread pandesal or salted bread is being reinvented, market research company Euromonitor International said in a 2015 report.
“A hotdog-flavored pandesal, for instance, is now available through Gardenia Philippines Inc. A healthier variant, meanwhile, can be bought through the bakery chain, Pan de Manila, which created a malunggay (horseradish) pandesal. The Food and Nutrition Research Institute, on the other hand, is promoting the selling of yellow pandesal, which contains squash puree, in public schools to help address the problem of malnutrition among children,” the report said.
The report added that innovation is expected to remain an important part of the local major players’ operations to sustain and improve their value share.
“Aside from creating healthier baked goods, adding flavor especially to plain bread, such as pandesal, is expected to help drive purchases. Not only do tastier baked goods address consumers’ needs for variety, but will also afford them savings in both time and money as they can forego the use of spreads or fillings,” the report said.
Competition in the industry is becoming tighter nowadays. In a separate report by Euromonitor International in 2017, it said that more companies are expanding into baked goods.
In 2016, artisanal players led baked goods with a combined retail value sales share of 44%. The share was derived from both community bakeries around neighborhoods and high-end artisanal bakeries found in shopping centers.
The report explained that, “Artisanal bakeries are able to compete mainly through their differentiated product offerings, which are freshly baked.” — Mark Louis F. Ferrolino
Filipinos have a penchant for breads. Like rice, these baked goods are a staple fare in the local dining table, and are typically consumed for breakfast or as a snack.
From the well-loved pandesal, Filipinos have grown to like different variety of breads — from the usual sweet variants that satisfy their sweet tooth cravings to savory ones. This fondness for baked treats opened opportunities for entrepreneurs to build business, innovate, and explore the endless possibilities in baking.
Those involved in the baking business have noted that it is a rewarding and a profitable venture. They further pointed out that baked products are sure sellers because everyone practically eats bread, and it is almost always the choice as a convenient, on-the-go food.
With the increase in number of businesses engaged in baking, Filipinos not only get their supply of bread from neighborhood bakeries, but also in other accessible establishments like malls, supermarkets, and train stations.
Philippine Statistics Authority stated in a 2013 Annual Survey of Philippine Business and Industry released in 2016 that bread, cakes, pastries, pies and similar ‘perishable’ bakery products accounted for 6,618 establishments or 26.3% of the total 25,149 number of manufacturing establishments in the formal sector of the economy.
The baking business in the country has also went through various transformations — from the technologies used in baking to the new flavors introduced by foreign players who have established their presence in the country. As what market research firm Euromonitor International stated, innovation remains vital for baked goods companies to address the need of consumers for variety.
According to food writer Amy A. Uy, who published a book about Philippine breads, community bakeries — or often referred to as ‘panaderia’ — around the country have embraced new equipment and technologies; and apart from the traditional breads, are now offering modern varieties of bread.
Moreover, with the adaptation of these innovations, Ms. Uy said that it has become easier to standardize recipes and which then opened opportunities for expansion including franchising.
From the community and artisanal bakeries to big companies, it seems that the industry is thriving and will continue to do so. According to the Filipino-Chinese Bakery Association, Inc., the baking industry in the Philippines is continually growing.
Euromonitor International also noted in a 2017 report that more companies are expanding into baked goods. This is seen in the opening of new brands and concepts in the city as well as the riding of several existing players with on-trend flavors such as salted egg yolk and cheese tarts, among others.
The craze on salted egg yolk was seen in the past year with different baked products featuring the flavor on croissants, buns, cakes, and ensaymada (brioche topped with cheese and sugar).
Online market research firm Statista also projected that the market is expected to grow annually by 5.4 % (compunded annual growth rate from 2018 to 2021).
To further engage industry players, various initiatives are being done not only by the government but also by private groups including the annual Bakery Fair. Attended by thousands of delegates, the fair aims to showcase technological advancements and techniques in baking, and enable players to gain competitive intelligence about market leaders and to track industry trends and its opportunities. — Romsanne R. Ortiguero
There are tons of apps out there just waiting to be discovered by bakers, both experts and newbies. To get you started, check out these four, highly rated apps.
BigOven
This app, which is iPhone and Android phone users can download for free, boasts a whopping 350,000 recipes. The developer describes it as “the most complete tool to help home cooks get inspired and organized in the kitchen and on the go.” BigOven app is popular; it has been featured in several publications, including Martha Stewart Living, InStyle, Buzzfeed and AllYou and has been downloaded more than 12 million times.
Users of the app can share and save recipes that they like and organize them into folders and sort them by categories. They can also take a picture of a family recipe and have it uploaded to the app. BigOven also allows users to create shared grocery list for the household and mark off each item as they shop.
Perfect Bake
Dubbed the “world’s first interactive baking app,” the Perfect Bake app guides users every step of the way, from adding ingredients, to mixing, to portioning and to actual baking. It has built-in timers to alert users that they’re done mixing, baking or cooling.
As a system, it includes the app and what is called a smart scale, to which a phone — whether an iPhone or an Android phone — should be connected. “Perfect Bake measures everything by weight for utmost accuracy — just like all professional pastry chefs,” a line in the description of the app reads. It purports to do all the math for the users, “whether you’re changing the size of your cake pan, the quantity of cookies you want to bake, or adjusting for the amount of chocolate chips you have on hand.”
Yummly
If BigOven has hundreds of thousands of recipes, Yummly has over one million of them. And thousands of new recipes are added to the app every week. Besides its tremendous collection of recipes, the app also features a powerful search engine. Its unique search filters — like “cuisine,” “nutrition requirements,” “cook time,” and “technique” — allow users to find the recipe that they really want to try.
In addition, once users have input their taste and nutrition preferences, the app will recommend matching recipes, every day. Downloadable from the iTunes Store and Google Play, Yummy also gives users the option to create shopping lists, which the app automatically categorizes by aisles and recipes to facilitate grocery shopping.
Side Chef
Side Chef, which anyone with an iPhone or Android phone can download, attempts to make cooking “accessible, fun and easy” by providing its users with step-by-step instructions that are illustrated. After its most recent update, at the time of writing, users have the choice to watch videos of recipes being prepared. The app’s homepage changes daily and features different recipes, cooking techniques.
On top of the following recipe instructions, users can also follow their favorite bloggers and chefs on the app. They are also given the chance to share their own recipes with the entire Side Chef community and even rate the recipes of others.
Over the past decades, the Philippine Stock Exchange (PSE) has taken various initiatives in its bid to become a premier exchange with world-class standards for trading securities and raising capital. It has marked remarkable progress from expanding its range of products up to ensuring the efficiency of its operations. At present, the local exchange is set to continue attaining its vision and to record new trading history in its brand new home in Bonifacio Global City (BGC), Taguig City.
For the first time in almost 55 years, the PSE — which formerly had two separate trading floors located at the PSE Plaza Ayala Triangle, Ayala Tower One in Makati City, and PSE Centre in Tektite Towers in Pasig City — finally opened a unified trading floor under one roof on Feb. 19.
Dubbed as the PSE Tower, the PSE’s new office building is situated in a premium block along 28th Street corner 5th Avenue in BGC. The tower stands 26-storeys high with a gross leasable area of 30,000 square meters (sq.m.) and is part of Ayala Land Premier’s mixed-use development, One Bonifacio High Street, which also includes The Suites and Ayala Malls.
The PSE Tower — with an estimated construction cost of P3.5 billion — was designed by US-based architectural firm Handel Architects who’s also behind the artistry of Shangri-La at the Fort. The building has a full-glass façade that features an external ticker board which displays real-time stock prices and market data.
“The Stock Exchange Tower presents an inflected glazed ‘frontpiece’ to the main commercial avenue with a vertical spine expressed with deep vertical ribs for solar control,” Handel Architects described the tower in its Web site.
The materials and massing of the tower are intended to be complementary to the Shangri-La. The two buildings are connected by interior courts that create the effect of a multi-level urban plaza flanking a shared pedestrian retail corridor.
Upon walking inside the new PSE’s office building, traders are greeted in a grand, high-ceiling entrance lobby with dedicated elevators leading to the stock exchange and an amenity floor for conference rooms and business lounges. The new trading floor has a predominantly white and well-lit interior, equipped with monitors that display stock prices.
Aside from the retail shops in the mezzanine and ground floors, the PSE Tower will also house a museum which will feature various mementos to showcase the rich history of PSE and its predecessor bourses. The PSE is considered as one of the oldest stock exchanges in Asia, having been in operation since 1927 when the Manila Stock Exchange, Inc. (MSE) was established.
During the bell-ringing program held to mark the PSE’s relocation to BGC, PSE Chairman Jose T. Pardo said that the unification of bourses under one roof marks a new history.
Although the PSE’s journey towards having its new home took years to materialize, it turned out to be something worth waiting for, he said.
The plan to establish the PSE’s single headquarters in BGC started when the local bourse closed a deal with Ayala Land, Inc. for the purchase of new office spaces in 2012.
To signal the official start of the trading in its new headquarters — which interestingly timed on the first day of the new Lunar Year of the Dog — two bells from the PSE’s previous trading floors were rang which symbolized the unification of the two exchanges.
“For the first time, traders from the old Manila Stock Exchange and the old Makati Stock Exchange now share one trading floor. What [a] better place to witness this unification and to pursue our aspirations to become a world-class exchange than here at the world-class Bonifacio Global City, one of the most modern and progressive places in the country,” Mr. Pardo said.
Present during the opening ceremony were PSE directors Emmanuel O. Bautista, Eddie T. Gobing, Amor C. Iliscupidez, Edgardo G. Lacson, Wilson L. Sy, Alejandro T. Yu, and Vivian Yuchengco, PSE President and Chief Executive Officer Ramon S. Monzon, PSE Chief Operating Officer Roel A. Refran, and PSE Corporate Secretary Aissa V. Encarnacion. The ceremony was graced by Taguig City Mayor Lani L. Cayetano.
Prior to the move, the PSE had separate ceremonial closing bell ringing events at its Ayala and Tektite towers to mark the last time that the trading bell was rang in both locations.
During the ceremony at the Ayala trading floor, Mr. Pardo said, “As we move to our new office at the Bonifacio Global City, we shall embark on recording new history for the stock market and for our country.”
The former PSE offices in Pasig were sold back to its developer, Philippine Realty and Holdings, Corp. Meanwhile, the PSE is still undecided on what to do with the offices it left in Makati.
“The move is symbolic of a move towards a united capital market,” PNB Securities, Inc. President Manuel Antonio G. Lisbona, was quoted as saying in a BusinessWorld article on Feb. 19. “After the unification of the trading floors, the next step would be for PSE to complete its acquisition of the PDS group which would result in a one-stop market for various financial assets.” — Mark Louis F. Ferrolino
For years, the Philippine Stock Exchange, Inc. (PSE) had two separate trading floors: one in PSE Tektite Building in Ortigas Center and another in Ayala Tower One in Makati City. But starting late last month, the bourse has one unified trading floor in a new headquarters in Bonifacio Global City (BGC), in Taguig City, a symbolic turning point.
“As we move to our new office at the Bonifacio Global City, we shall embark on recording new history for the stock market and for our country,” Jose T. Pardo, chairman of PSE, announced during the final closing bell at the trading floor in Ayala Tower One.
PSE was incorporated in 1992, the same year Manila Stock Exchange, which was established in 1927, and the Makati Stock Exchange, which arrived in 1963, issued a joint declaration on their unification under PSE, for the purpose of hastening the development of the capital market
But it wasn’t until 1994 that PSE was granted the license to operate by the Securities and Exchange Commission. Before the end of that year, a major modification was made to the PSE Composite Index, the precursor of the bellwether Philippine Stock Exchange index (PSEi). It was now calculated based on its own set of components, which was increased to 30.
In 1996, the Banking and Financial Services Index was launched to reflect the financial environment. An All Shares Index including all listed companies was also introduced. Both indices began with a base value of 1,000.
In 2001, PSE transitioned from a nonstock, member-governed entity into a shareholder-based organization. In 2003, its shares were listed by way of introduction, opening at P100 per share and reaching as high as P252.50 before settling at P200 by the end of the year. The following year, PSE invested in the Philippine Dealing System Holdings Corp., the holding company of the fixed-income exchange, which serves as an alternative market for raising funds.
Listed companies saw major changes in 2006. They were now categorized according to their major source of revenue. PSE also changed how it selected the companies to be included in the index. Companies had to have, among others, a liquidity or average daily trading value of at least P5 million and a volume turnover ratio of at least 10%. It was also this year that the PSE Composite Index was renamed PSEi.
How companies were listed by way of introduction was revised in 2010. Applicant companies must now have, among others, a fairness opinion and valuation report on the pricing of their securities issued by a third party financial institution. And in an effort to enhance the quality of PSEi, PSE, in 2011, began requiring companies to meet the following criteria: having of a free float level of at least 12%, being one of the top 25% companies in terms of median daily value in nine out of a 12-month period, and ranking high in terms of full market capitalization.
PSE EDGE, the mobile application of the bourse’s disclosure platform, was unveiled in 2014 to give investors real-time access to disclosures and notices. Both Android and iPhone users can download it for free. In 2015, the bourse made the shift to a new trading system, PSEtrade XTS, which utilizes the xStream Technology of Nasdaq, an American stock exchange and is capable of handling large trading volumes. And to formalize its transfer to its new headquarters in BGC, PSE purchased office units on One Bonifacio High Street.
For a country, sustainable economic growth and well-being is something to aspire for. Many societal issues can be addressed with a developed economy, given that the public and private sectors do their parts. The alleviation of poverty, adequate health care, public security, and even the cultural vibrancy of a nation all depend on a stable and growing economy.
The public sector’s job is obvious. It needs to enact smart policies that benefit business, enforce equitable taxes, and encourage investments. The contributions of the private sector rely on its enterprise, in the stock exchanges and capital markets.
A mobilized economy is a healthy economy and a stock exchange is very efficient at mobilizing money: Investors invest their money to companies in exchange for the chance of future profit, while the companies gain more capital to expand their businesses.
“Stock markets are, first and foremost, financial institutions established to help businesses and entrepreneurs come together to buy, sell and trade shares for the purpose of capitalizing enterprises in need of cash infusions,” investment research firm Zacks wrote on its Web site.
“Were it not for stock exchanges, entrepreneurs would be left to their own devices to find investors, and consumers could wind up at the mercy of unlicensed and unregulated financial products with no oversight.”
The growing number of exchanges worldwide could stand as proof of their effectiveness. According to the United Nations Conference on Trade and Development in a joint report with the World Federation of Exchanges, as of 2016, there were nearly 50,000 companies listed on 81 exchange groups around the world, with a combined market capitalization of approximately $70 trillion.
“The number of countries with a stock exchange has grown dramatically over the last 40 years — from just over 50 in 1975 to over 160 in 2015. This increase is partly attributable to a growing consensus about the role of stock exchanges in promoting economic development,” Nandini Sukumar, CEO of The World Federation of Exchanges (WFE), wrote.
These listed companies, according to “The Role of Stock Exchanges in Fostering Economic Growth and Sustainable Development” report, range from small and medium-sized companies with tens of millions in market cap to large corporations with the market cap of billions.
“The companies listed on stock exchanges come from all economic sectors: services, manufacturing, mining and information technology. They generate revenues that pay salaries, buy goods and services from other companies, pay taxes and return dividends to shareholders. They are also significant employers: WFE estimates suggest that the 24,000 companies across just 26 of the 55 WFE’s equity market exchanges employ over 127 million people,” the report said.
For this reason, stock markets are typically used as a barometer for the economic health of a country. Zacks Investment Research wrote that the ups, downs, trends and shifts that take place in the stock market act as the “the benchmarks of a society’s financial infrastructure”.
“The direct effect of stock market activity can impact a nation’s economy in multiple ways. Stocks fall, spending stops, consumers lose confidence, and a nation’s financial state begins to falter. Conversely, stocks rise, confidence spreads, spending and investments grow. A nation’s mood can rise or fall on stock market activity and performance, which shows how important the role played by a stock exchange can be in a society’s social and fiscal fabric,” the company added. — Bjorn Biel M. Beltran
