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Government to fund 78% of infrastructure program with internal funds — NEDA

THE GOVERNMENT will finance with budget appropriations about 78% or P7.096 trillion of its ambitious infrastructure program, the National Economic and Development Authority (NEDA) said, signalling confidence in the economy’s prospects and capacity to pay with tax reform shoring up the state’s fiscal position.

In   statement, NEDA said the P9.04 trillion the national government hopes to spend over six years excludes infrastructure projects to be undertaken purely by local government units (LGUs), government-owned and controlled corporations (GOCCs), the private sector and other sources.

In the statement, Socioeconomic Planning Secretary Ernesto M. Pernia said the financing plan was firmed up after the NEDA Board’s Committee on Infrastructure (INFRACOM)-Cabinet Committee met on Feb. 7. The committee was chaired by Mr. Pernia and co-chaired by the secretary of Public Works and Highways with representatives from the Office of the President and the Departments of Transportation, Budget and Management, Finance, Trade and Industry, Energy, Agriculture, Tourism, and Information and Communications Technology.

INFRACOM made headway “in improving connectivity and promoting economic clusters in regional and sub-regional growth centers. This is consistent with the country’s National Spatial Strategy,” Mr. Pernia said.

The committee also approved its provisional work plan for 2018, the proposed draft implementing rules and regulations (IRR) of the National Transport Policy, and the guidelines for the utilization of the Project Development and Other Related Studies Fund for the conduct of feasibility studies, master plan formulations, analyses and other pre-investment activities, Mr. Pernia said.

In the statement, NEDA said regions outside Metro Manila are receiving a “big share” of infrastructure programs, noting that of the 4,985 infrastructure programs in the government program between 2017 and 2022, 3,911 projects, excluding the National Capital Region (NCR), are region-specific, while 98 are intra-regional.

“If you look at the data, the Autonomous Region in Muslim Mindanao has the highest number of projects. This dispels the notion that government projects are centered in Mega Manila,” Mr. Pernia said.

From 2017 to 2022, ARMM will get a total of 1,340 projects while Metro Manila will have 320 projects, he said.

DENR to verify Boracay water treatment capacity

ENVIRONMENT Secretary Roy A. Cimatu said his department will meet with Boracay’s water concessionaire, Manila Water Co., Inc. to discuss its potential capacity for offering expanded waste water treatment services.

The discussions follow President Rodrigo R. Duterte’s threat to shut down the resort island last week, after it emerged that a number of establishments are not connected to the island’s sewage system.

“We requested (the meeting). We will check their capability to put up a treatment facility there,” Mr. Cimatu told BusinessWorld.

“We will be meeting them if they have the capability to provide so that in six months, we can completely connect everyone [to a proper waste water treatment system]. These are our intentions,” he added.

Should Manila Water be unable to provide the required additional capacity, Mr. Cimatu said that the president had given the order that all the establishments on Boracay must develop their own water treatment facility.

“The sewage system because (is) the number one problem now. The second problem is that there are several buildings that intruded into the beach and there are creeks there that they covered up which cause flooding.”

The Department of Environment and Natural Resources (DENR) will conduct an inspection on March 1 of all establishments and homes.

The Department also issued a statement on Tuesday, warning commercial establishments that release untreated waste water to connect to the sewage treatment plant run by Manila Water unit Boracay Island Water Company, Inc. (BIWC) or have their own wastewater treatment facilities within two months.

BIWC was created as a joint venture with Manila Water Philippine Ventures and the Tourism Infrastructure and Enterprise Zone Authority.

Establishments will have their operations shut down if they do not comply within two months. The DENR will issue a notice of violation to the non-compliant establishments that will be given three to five days to respond.

Mr. Cimatu said non-compliant parties will be handed down penalties by the Pollution Adjudication Board under the DENR’s Environment Management Bureau.

While around 50% to 60% of businesses on Boracay are compliant under the Philippine Clean Water Act of 2004, Mr. Cimatu said that around 300 establishments are dumping their untreated waste water directly into the sea or canals.

The DENR will also go after establishments that set up buildings in protected areas and creeks, which are considered to be no-build zones.

The department has also issued a new directive to bar the construction of new buildings on Boracay. — Anna Gabriela A. Mogato

DoF says perks for small miners may lead others to seek tax exemptions

THE Department of Finance (DoF) reiterated its concern that tax exemptions for small-scale miners may have the effect of “legislated tax evasion” and lead other segments of the economy to seek similar privileges.

The department outlined it position before the House ways and means committee chaired by Quirino Rep. Dakila Carlo E. Cua. The committee was tackling House bills (HBs) 1664, 3297, 3304, 3470, 4057, and 7133, which all seek to amend Republic Act (RA) 8424 or the National Internal Revenue Code (NIRC) to exempt small-scale miners from paying taxes when selling gold to the Bangko Sentral ng Pilipinas (BSP).

The DoF held fast to its position first stated in hearings during the 16th Congress.

“We would like the committee to actually please consider identifying each and every issue and address them properly rather than just looking at the tax treatment which may not be the answer to these issues,” DoF research and information office Director Juvy C. Danofrata said.

She also noted that passing the proposals “may be tantamount to putting or legislating tax evasion” and may lead other industries to request tax exemptions as well.

Ms. Danofrata said the decline in the sale of gold to the BSP is “an enforcement issue.”

“We (DoF) recognize that there are certain administrative issues… we [should first] identify each and every issue such that we do not just zero in on the tax treatment,” Ms. Danofrata said.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) noted a drop in tax revenue from gold purchases to P55.7 million from P205 million in 2011 amid lower taxes.

In November, the BSP reduced the creditable withholding tax (CWT) imposed on small-scale miners to 1%. The excise tax imposed, on the other hand, has remained constant at 2% since 2008. This makes for a total of 3% tax.

However, the excise tax increased to 4% since the Tax Reform for Acceleration and Inclusion (TRAIN) Law took effect last month, bringing the total taxes imposed on miners to 5%.

Sought for comment, Mr. Cua said: “We’ll consider the input of the DoF and Bureau of Internal Revenue. However, we also see the point of the BSP that our international reserves are falling.”

The authors of the bills are Benguet Rep. Ronald M. Cosalan, Sorsogon Rep. Evelina G. Escudero, Abang Lingkod party-list Rep. Joseph Stephen S. Paduano, Masbate Rep. Elisa T. Kho, Pampanga Rep. Gloria Macapagal-Arroyo, Speaker Pantaleon D. Alvarez, Majority Leader Rodolfo C. Fariñas, and Mr. Cua. They cited the need to discourage small-scale miners from selling their gold on the black market and smuggling gold out of the country.

The bills note that underground sales and smuggling led to the drop in the value of gold purchased by the BSP to P984 million (20,354 troy ounces) in 2014 from P49.5 billion (918,110 troy ounces) in 2010. — Minde Nyl R. dela Cruz

Peso nears P52-per-dollar level

THE PESO dropped further against the dollar on Tuesday, breaching the P52 level intraday, ahead of the release of US January inflation data.

The local currency closed Monday’s trading session at P51.98 versus the dollar, 21 centavos weaker than the P51.77 finish on Friday.

This is the peso’s worst finish in more than 11 years or since it ended at P52.165 against the greenback on July 21, 2006.

The peso traded weaker the whole day, opening the session at P51.93 against the greenback. Its best showing was at P51.84, while it posted a low of P52 versus the dollar intraday.

Dollars traded climbed to $1.023 billion from the $930.6 million that changed hands in the previous session.

UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion said the weakening of the peso was due to the outlook on US inflation.

The trader shared the same sentiment, saying investors are looking forward to official inflation data from the US, as this can spur more expectations for the US Federal Reserve to hike its rates this year.

In a report from Reuters, expectations on US inflation edged lower in January, according to a New York Fed survey published on Monday.

The survey of consumer expectations dipped to 2.71% in January year on year, slightly lower than the 2.82% the previous month.

The consumer expectations survey is among the data the Fed considers when it reviews policy. Market players expect three interest rate hikes from the Fed this year.

For Wednesday, Feb. 14, the trader expects the local unit to move between P51.70 and P52.10 against the dollar, while Mr. Asuncion gave a slightly slimmer range of P51.70 to P52.

“Exchange rates are expected to be slightly subdued [today] amid possible profit taking from the dollar’s recent gains,” the trader noted.

Meanwhile, most other Asian currencies gained ground against the US dollar on Tuesday as global risk sentiment rose after world equities showed a semblance of calm, while the greenback was on the defensive on worries about its receding yield advantage.

Asian stocks rallied on Tuesday, tracking Wall Street’s extended rebound from last week’s steep fall, with MSCI’s broadest index of Asia-Pacific shares outside Japan climbing 1.4%.

“Equity markets have begun the week on a somewhat positive note, picking up from a Friday rebound as bargain hunters have returned on the first sign of stability,” Stephen Innes, head of trading for Asia Pacific at Oanda said in a note.

Meanwhile, the dollar index dipped 0.2%, having fallen 0.26% on Monday.

“The US dollar traded lower as currency traders are analyzing the rebounding global equity markets,” added Mr. Innes. — K.A.N. Vidal with Reuters

PSEi snaps losing streak as global markets recover

STOCKS firmed on Tuesday, tracking the recovery of global markets that began to show signs of stability after consecutive losses in previous weeks.

The bellwether Philippine Stock Exchange index (PSEi) gained 0.96% or 82.23 points to 8,570.14, ending three days of losses amid thinner trading.

The all-shares index also edged higher by 0.54% or 27.31 points to 5,053.21.

“Philippine markets saw a bit of reprieve today from the selling pressure experienced this month, but this was on the back of weaker trading volumes as the CNY (Chinese New Year) holiday gets under way,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Tuesday.

The local barometer moved in pace with global markets. On Monday, the Dow Jones Industrial Average picked up 1.7% or 410.37 points to 24,601.27. The Nasdaq Composite Index inched up 1.56% or 107.46 points to 6,981.96, while the S&P 500 was up 1.39% or 36.45 points to 2,656.

“Regional equity rally boosted sentiment in the local front. Also, bargain hunting on index heavyweights SM Prime Holdings, Inc. (SMPH) and JG Summit Holdings, Inc. (JGS) which were battered in the past few sessions lifted the market,” RCBC Securities, Inc. equity analyst Jeffrey Lucero said in a text message.

SMPH recorded a 3.29% increase to P36.15 apiece yesterday, and was also the second most actively traded stock. JGS, meanwhile, added 2.6% or P1.90 to end the day at P74.90 each.

Regina Capital’s Mr. Limlingan added that investors have started re-entering markets on a bargain-hunting mode after seeing signs of stability in markets in the United States.

Southeast Asian stock markets edged higher on Tuesday tracking Wall Street which extended gains after its worst week in two years and as bargain hunters stepped in to buy battered down stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up more than 1%.

Back home, most sectoral counters went up on Tuesday, led by property, which posted a 1.46% or 55.75-point increase to 3,868.60. Holding firms climbed 1.17% or 101.17 points to 8,708.78; mining and oil was up 0.99% or 112.32 points to 11,396.77; services rose 0.86% or 14.70 points to 1,706.91; while financials added 0.32% or 7.12 points to 2,206.01.

Industrials was the lone losing counter as it closed 0.63% or 72.99 points lower to 11,397.63.

Around 1.82 billion issues valued at P7.66 billion switched hands, higher than the P5.86 billion worth traded last Monday.

While the main index was up, declining stocks still outpaced those that advanced, 110 to 96, while 48 names were flat.

Foreigners maintained a selling position on Tuesday as net outflows stood at P841.65 million, although lower than Monday’s P1.27 billion. — Arra B. Francia with Reuters

Customs presents 22 luxury cars in custody

The Bureau of Customs (BoC) on Tuesday, Feb. 13, presented to the media 22 luxury cars in its custody at the CFS3 Warehouse in Manila International Container Port.

The vehicles were intercepted on separate occasions at the Manila International Container Port (MICP) and are subjects of ongoing litigation.

Customs chief Isidro S. Lapeña led the presentation of the vehicles, which included a McLaren, a Lamborghini Murcielago, a Lamborghini Gallardo, a Rolls Royce, a 2005 Ferrari F430 2006, a 2017 Land Rover Evoque, two 2017 Chevrolet Camaro, two 2017 Range Rover, 12 units Toyota Land Cruisers.

YOU MIGHT ALSO WANT TO READ: Customs destroys P61.63M worth of smuggled luxury cars

Philippine Airlines outlines new routes with delivery of 15 aircraft this year

Philippine Airlines President Jaime J. Bautista said in a press conference that the airline is expecting the delivery of four Airbus A350s, six A321neos, and five Bombardier Q400s this year.

The A321neos will be used for Manila-Brisbane flights, as well as routes to New Delhi and Mumbai in India, and Sapporo in Japan.

The A321neos are for Asia-Pacific destinations, which have increased in demand.

The A350-900/ will be used for the polar route of the Manila-New York flights, and Q400s for domestic destinations.

“Coming next month, a new Davao-Siargao route, the Airbus 321neo will allow us to fly Manila-Australia nonstop and will open routes to New Delhi, Bombai and Saporro. The Airbus 350 will give us the range and power to fly the longest and commercial route ever operated by a Philippine carrier from Manila to New York City over the Arctic Ocean,” Mr. Bautista said in a press conference.

“We will have 259 seats from Manila to New York. We are taking delivery of airplane in June. We are expected to take the delivery of the Airbus 350 in August, the third one in September, the fourth one in December.” — Patrizia Paola C. Marcelo

A gastronomic journey through Binondo, curated by a startup

There’s something romantic and utterly peculiar about roaming the streets of Binondo, the oldest Chinatown in Asia. Rows of dimly lit stores are crammed with its own little secrets: the confluence of old and new in the form of bottled herbal remedies, charms, beaded jewelry, golden Buddhas, and, the best part of all: traditional Chinese food.

After all, who could resist the charm of, say, dumplings: thin dough crescents filled with minced meat and chopped vegetables, then boiled until soft and chewy? Or spring rolls: fresh vegetables and meat rolled into cylinders and dipped in sweet nutty sauce?

That’s why when digital booking platform Tralulu began offering pre‑curated trips—a shift from its original business model that connected users to local guides—it was only logical that a “food crawl” in Binondo was the first on the list. The 400‑year‑old town, sandwiched between the historic districts of Sta. Cruz and Intramuros in Manila, after all is close to the heart of the tech startup’s Filipino‑Chinese Founder and CEO Andrew Cua who grew up and still lives in the area.

“This is very personal,” 23‑year‑old Cua told SparkUp in an interview. “I’ve been bringing people around Binondo for food trips for around five to six years now. Since college, I’ve been doing that.”

Binondo is the Mecca for Filipinos looking for authentic oriental cuisines, with different Chinese restaurants located in every corner. Despite the mushrooming of new and quaint food establishments around the area, these restaurants have withstood the test of time and remain serving savory Chinese dishes to different generations of Filipinos.

“ The great taste of the food is uncontested and the landscape of restaurant business here is very competitive,” he said. “Before there were fast‑food chains set up here, but most of them didn’t survive, they lost to traditional businesses.”

Binondo’s food establishments, he added, are part of long tradition and cultural fusion, which Tralulu seeks to highlight on the trip.

“It’s a gastronomic journey where people can try the hidden gems and the best food stops in Binondo, especially during the month of February,” he said, adding that the trip, called “Binondo Food Crawl,” is perfect for people visiting the town during the Chinese new year season. In February last year, Cua said, around 80 local and foreign travellers booked the trip on the platform.

The four‑to‑five trip can be availed for ₱1,200, which already includes fees for the food and a guide.

“We partner closely with restaurant owners to provide sometimes even hidden recipes that people don’t have access to, and also the stories behind a recipe, a shop, and the town—what makes it what it is.”

Here’s a glimpse of what you can experience:

The food crawl includes five “stations” where users can get a complete Chinese meal—from appetizers to desserts.

It begins with a visit to New Po‑Heng Lumpia House, a shop located in a latent residential building at Quintin Paredes Street, where travellers will get to eat Chinese‑style fresh lumpia, a popular snack made of mixed of vegetable and spices rolled in a thin crepe pastry skin.

“This one is usually the favorite of everyone which cuts across kids to the elders because of the traditional Hokkien recipe,” he said. “Poheng Lumpia House is a hidden gem run by a Hokkien migrant who came to the Philippines few decades ago to start a Hokkien shop in a secret residencial place.”

Travellers are given the option to make their own fresh lumpia.

What’s a Binondo trip without devouring what is probably the most popular Chinese food—dimsum?

At the next station of the trip, Tralulu takes travellers to Ying Ying Tea House at Dasmarinas Street where “the tastiest dimsum in town” are served.

“There’s always a debate about which shop has the best dimsum in Binondo, and some locals would conclude the debate and say that Ying Ying has the best dimsum with its years of experience,” he said.

No one can go wrong with Ying Ying’s dimsum, he said. After all the family that runs the business are also the one behind some of the most popular food establishments in Binondo like The President Grand Palace and Wai Ying Fast Food.

For the main course, travellers are taken to New Toho Food Center, the oldest restaurant in the country. The restaurant is now run by the fourth generation of the family that built it in 1888. Among its first customers is Philippine national hero Dr. Jose Rizal.

“It’s home of some of the oldest recipes in the country that are still being served commercially today and here you will see a perfect fusion of all cuisines—Spanish, Filipino, and Chinese,” he said.

Cua added that the restaurant is perfect for people looking for savory and authentic Chinese cuisines sold at reasonable prices.

This station brings travellers to Shanghai Fried Siopao, one of the most popular snack shops Binondo’s cultural street Ongpin.

Here, popular fried sipoao (steamed bun) “prepared in the classic way” will be served.

“This Shanghai fried siopao is good on its own. It’s not overrated because of its name. It’s not expensive and it’s what locals here eat on a normal afternoon,” he said.

After finishing plates of salty oriental food, it’s time for some Chinese desserts.

At the last station, travellers will be served with famous Chinese sweets such as butchi (a rice cake made from sweet rice flour molded into a circle with a sweet bean paste filling and sesame seed coating) and siao lung pao from Cafe Mezzanine, better known as The Fireman’s Cafe.

“The pinnacle of culinary creations in Binondo when it comes to pastries and desserts can be found in Eng Bee Tin brand and one of their finest creations is Fireman’s cafe a social enterprise all proceeds go to firefighters,” he said.

To conclude the trip, Tralulu takes travellers to a “secret place” where they will see the city of Manila and its neighbouring business districts from above. Want to find out what it is? Click here to get a chance to win a Binondo Food crawl from Tralulu.

Jollibee boosts stake in Smashburger to 85%

Homegrown food giant Jollibee Foods Corp. (JFC) has further ramped up its stake in United States-brand Smashburger with an additional investment of $100 million.

In a disclosure to the stock exchange on Tuesday, JFC said its wholly-owned unit Bee Good! Inc. (BGI) has purchased 45% shares in Smashburger Master LLC (Master), bringing its ownership in the firm to 85%.

“With this acquisition of more shares, JFC will have a more significant business in the United States. The US will increase its contribution to our worldwide system wide sales from 5% to 15%. We will be able to participate in the very large mainstream American consumer market in addition to serving Filipino-American there,” JFC Founder and Chairman Tony Tan Caktiong said in a statement. — Arra B. Francia

Group of PHL conglomerates submits proposal for NAIA rehab

A group of the country’s seven biggest conglomerates submitted on Monday, Feb. 12, their unsolicited proposal to the Department of Transportation (DOTr) to rehabilitate the Ninoy Aquino International Airport (NAIA) and transform it into a regional airport hub.

The NAIA Consortium is composed of Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corporation, Alliance Global Group Inc., AEDC, Filinvest Development Corporation, JG Summit Holdings, Inc. and Metro Pacific Investments Corporation, and has a combined capitalization of over PHP2.2 trillion.

The consoritum’s proposed project, estimated to cost up to P350 billion over the life of its concession,is divided into two phases: Phase 1 includes improvements and expansion of terminals in the current NAIA land area, while Phase 2 involves the development of an additional runway, taxiways, passenger terminals and associated support infrastructure.

In a press release, the consortium cited Changi Airports International Pte. Ltd. as the provider of technical support in master planning, operations optimization and commercial development.

“Through this proposal, we envision a new NAIA: a fully-integrated premier gateway that we Filipinos can truly be proud of, backed by the know-how of an experienced technical partner and the strong synergy of seven homegrown teams. The message is clear: we need this, and we can get this done,” the consortium’s spokesperson, Jose Emmanuel Reverente, said. He added that the proposal includes a people mover that would link all three terminals and connect NAIA to the existing mass transport system in Metro Manila, as well as an option for a third runway.

“The proposal involves expanding and interconnecting the existing terminals of NAIA, upgrading airside facilities, and developing commercial facilities to increase airline and airport efficiencies, enhance passenger comfort and experience, and improve public perception of NAIA as the country’s premier international gateway,” Reverente said.

The boundless opportunity of e-commerce

By Bjorn Biel M. Beltran, Special Features Writer

The invention of the Internet is now long past, and the world with regards to connectivity is now smaller than it has ever been. For most people, instant access to anyone on Earth with an Internet connection has been a wondrous convenience. For those with a mind for business, it’s the opportunity of the century.

According to cumulative data from the online market research firm Statista, worldwide retail e-commerce sales is projected to grow more than threefold from $1.3 trillion in 2014 to $4.5 trillion in 2021. Three years from now, retail e-commerce sales are estimated to account for 15.5% of all retail sales worldwide.

“With recent digital development exploding in the Asia-Pacific region, it is no surprise that the fastest-growing online retail markets are Indonesia and India, followed by Mexico and China,” Statista wrote on its Web site.

“Digital retail development in these countries is strongly connected to the constantly improving online access, especially in mobile-first online communities that have long struggled with the traditional fixed broadband connections due to financial or infrastructure restrictions but enjoy the advantages of cheap mobile broadband connections,” it added.

The Philippines is not far behind. The Department of Trade and Industry (DTI) launched the Philippine E-Commerce Roadmap 2016-2020, as well as a dedicated e-commerce Web site, which expects “renewed and reinvigorated collaboration between the government and the private sector to fully accelerate the growth of Philippine e-commerce — one that is globally competitive and integrated.”

The roadmap aims to contribute 25% to the Philippines’ gross domestic product by 2020 through supporting the country’s micro, small, and medium enterprises (MSMEs), which make up 99.6% of all Philippine enterprises. This number is up from a 10% estimate made in 2015 by iMetrics Asia Pacific Corporation. By participating and engaging in e-commerce programs and projects, the government declared, Philippine MSMEs can become globally competitive.

Even more recently, Facebook included the Philippines in the list of 47 countries with access to its Marketplace service, a platform within the Web site wherein users can buy and sell goods online. Marketplace’s objective was to streamline the user experience of people who use Facebook as a place of business.

“Already 550 million people buy and sell in groups on Facebook each month, we are excited to bring Marketplace to the Philippines and make it easier to discover, buy and sell goods locally,” Facebook’s director of product management Karandeep Anand said in recent reports.

With the buyers and sellers identified through their Facebook profile, Mr. Anand pointed out that both parties making transactions can verify each other and vet their trustworthiness, making a safer experience for both.

The social media Web site has long been home to a number of enterprising individuals who have been using its wide reach to tap an online market. Joyce Chua, the owner of the online clothing store Happy Stripes, has been doing business on Facebook for six years.

“It is where my target market is,” Ms. Chua told BusinessWorld. “Although Instagram is also gaining foothold in terms of social media as a business platform, I’m still more comfortable using Facebook mainly because I have started my business here and have already gained a huge following.”

Ms. Chua started Happy Stripes in 2012, when she was still studying as a 2nd year business student in UP Diliman, and since then has garnered some 50,000 followers on Facebook.

“Back then, online shops were not really a thing yet. I just figured it would be a fun thing to do outside school since I love fashion and it was a great opportunity to apply what I have been learning in business school,” she said.

“I went to Bangkok because I heard the clothes there are really affordable, especially in bulk. They have a lot of wholesale malls and markets for people who want to resell the clothes. Since their trends are a little ahead compared to the Philippines, I thought it would give my business a huge advantage to resell the clothes here in the country,” she added.

Christine Keh, owner of Tiny Basket PH, an arts and crafts store with a following of almost 34,000 people, had a similar story.

“My online business started out when I was waiting for my official graduation — right after when my last semester at school ended. We had a marketing class where we needed to sell several types of products — and reach a quota of 60 [followers] for the whole semester,” Ms. Keh told BusinessWorld.

When the class ended, Ms. Keh had already reached over a hundred followers. She decided to keep going.

“Since then, I have built my reach through Instagram and Facebook, from the hundred plus followers to almost 34,000 followers combined for both Instagram and Facebook,” she said.

Through social media Web sites, a great many business-minded people have grown their livelihoods, providing goods and services to people who might otherwise have been out of reach. Facebook, and in extension, Instagram, have become powerful havens for e-commerce and considerable players in the growth of the national economy.

“I think small entrepreneurs like me find Facebook and Instagram as a very convenient, cost-efficient way to introduce our products,” Ms. Keh said.

“Facebook, for small entrepreneurs like me, is a very cost-efficient and an almost free channel to market our products and services to a very diverse market. It almost does everything for me and my business — from segregating my market, to keeping inventories and price lists, as well as building personal connections with my customers at a minimal cost,” she added.

Ms. Chua also added that entrepreneurs can also tailor that market to suit their target demographics. “Facebook also has this option for businesses where you can create a page and boost the posts on this page, like a sponsored post. But the good thing is you can tailor your audience to fit your target one. You can choose which demographic of people would be viewing your ad. It really helped my business since I could maximize my reach,” she said.

Ultimately, almost anyone can become an online entrepreneur nowadays. Ms. Keh pointed out that entrepreneurs from all walks of life have the same opportunities for advertising and promotion as many big businesses.

“Competition is tough since there are a lot of online shops now as compared to before,” Ms. Chua said. “There are also more platforms for e-commerce now like Instagram, Shopee, and the like. But it is still a lucrative business, as long as you take time to know your market well and constantly rebrand and innovate what you can offer,” she added.

A chef’s secrets to learning from and growing your business

By Romsanne R. Ortiguero

Apart from quintessential factors such as location and market knowledge, among others, there are more important elements to consider in jump-starting a business, making it grow, and eventually sustaining it.

If there is any lesson neophytes could learn from restaurateur and TV personality Chef Jonas Ng — who’s behind restaurant concepts such as Huat Pot, Le Jardin, and James and Daughters, as well as the cooking show Chef Next Door — it would be the values he operates into as head of his restaurant business.

“Apart from innovation, learning from others, and all these things, the core of it is just two things: passion and commitment,” Mr. Ng told BusinessWorld in an interview.

According to Mr. Ng, all restaurant projects start with passion, however, when real work and problems start coming in, this fervor and enthusiasm might die out.

“When they realize how difficult this business is, the passion will wane. What will help you is commitment. How committed are you? If you’re not really committed to make things work, it’s a waste of your time,” he explained.

These values are like a compass that enabled Mr. Ng to sustain his career in the food and beverage industry despite challenges and failures. After working as a head chef at Mango Tree which opened in 2009, Mr. Ng opened his own restaurants in 2013 and 2014: Huat Pot and Le Jardin, respectively. Realizing that he can’t split his body operating two restaurants at the same time while writing and producing his own television show, he decided to pause and close down the two restaurants in 2017.

“The numbers will tell you. Basically we’re in the red for a few months,” Mr. Ng shared when asked on what made him decide to close Huat Pot and Le Jardin.

“I’ve been very unlucky but the way I’ve learned is by making mistakes. That’s the best way to learn; I actually call it tuition fee. I had a lot of failures, and I applied all the lessons from those failures to be able to come up with new solutions. Honestly, experience and failures are the best teachers,” he added.

Apart from his own experiences, Mr. Ng said he also tries to learn from other people’s mistakes by doing a lot of industry studies — knowing what worked and did not work from others, as well as communicating with other peers in the industry to exchange tips and expertise.

After some break, Mr. Ng opened a new restaurant concept last November 2017 in Bonifacio Global City in Taguig: James and Daughters. The new restaurant offers comfort food from around the world but uses locally sourced ingredients. Drawing inspiration from his family’s globe-trotting adventures and his own working experiences under different chef mentors abroad, the restaurant’s menu is a story, a place, a person, or an experience connected to him or his family.

“Timing is a big thing. A few years ago, Manila would not have been ready for this concept. Now, we’re at a point where people are willing to try anything, and people are looking for something honest. This is the most honest restaurant you’ll ever see,” Mr. Ng pointed out.

Apart from timing and some luck, Mr. Ng also noted that before opening up a new restaurant, it is vital to know who and what you are about. “Be firm with your concept. Be 100% sure of your concept, and be sure that you’re good in the first place.”

Knowing your market on a deeper level helps, too. Mr. Ng shared that he always make an effort to be at the dining area during lunch and dinner to personally talk to their guests to understand what they want and what else could work better.

Lastly, it is important to be consistent. He explained, “Make sure that their experience now is the same as their experience next year. Install systems to encourage predictability. Without consistency and predictability, you’re never going to make it.”

And while it is tempting to immediately open up a restaurant, learning the tricks of the trade from the masters first is one sure way of having an advantage on this very competitive industry.

“I will give you the same advice that Anthony Bourdain gave me. I met him once when I was a young cook, and asked him, ‘what do I do?’ He said, ‘Work for the best chef you could possibly work for, and learn as much as you can even if you do it for free,” he noted.

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