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The gift of food

WHO DOESN’T like a gift of food? Here are some places where one can score cakes, pastries, ice cream, or a holiday hamper or two to give as a present — or keep for yourself.

Dean & Deluca offers hamper choices for every type of foodie, filled with wine, jams and jellies, coffee, tea, canned and bottled savory goods, sauces, and pasta. Adding mugs, a coffee press, a tumbler, or tea pots and cup is an option to personalize the gift. Gather the goodies in wooden crates, canvas bags, or red boxes. Cakes and pastries — mango crème brûlée, dark chocolate dome cake, pistachio, salted caramel chocolate cake and various flavors of Hokkaido cheesecakes — are also an option for those with a sweet tooth. Dean & Deluca has branches at Eton Tower, Dela Rosa St., Legaspi Village, Makati City, and at the Edades Tower and Villas, Rockwell, Makati City.

Meanwhile, Dusit Thani Manila has decorated hampers available at the lobby’s holiday counter, with sweet treats and gourmet items. A purchase of five to nine hampers earns one a free bottle of wine; and a purchase of 10 would come with one free hamper with the same items ordered.

Decadent, Sumptuous, and Indulgent are the names of three unique gift baskets from Marco Polo Ortigas. The gift baskets are filled with Mackays Scottish fruit preserves, English fruit cake, hand-crafted pralines, and Mrs. Bridges banoffee curd. Personalize the hampers by choosing from chocolate characters, chocolate bars, soft and moist cakes, freshly baked cookies, nuts and biscuits, or Scottish fruit preserves. Before sealing the gift basket, a bottle of Talamonti Moda, Batasiolo Barolo Boscareto, or NV Moët & Chandon Brut Impérial completes the set.

Treat the kids to ice cream cakes from Baskin-Robbins. The different design options include a freezing snowman, an ice cream cake shaped like a hot cocoa mug, and a pretty present. Or make a customized ice cream cake that allows you to add your favorite ice cream flavor and personalized message. Baskin-Robbins ice cream cakes are available in all store branches.

Stocks down as volume thins ahead of holidays

EQUITIES fell on Wednesday following the passage of the tax reform program, as analysts said the market has already priced in its effects earlier this year.

The benchmark index dropped 3.35 points or 0.04% to finish the session at 8,362.61.

The broader all-shares index likewise gave up 0.17% or 8.52 points to 4,893.62.

“The market has already priced in the tax reform program of the Duterte administration starting as early as the 2Q (second quarter) this year,” Timson Securities, Inc. equity trader Jervin S. de Celis, noting that the main index’s rally toward the 8,600 level earlier this year was due to optimism on the tax reform program. 

“It’s also a ‘sell on news’ event and apparently foreign investors have been selling their shares due to the expensive valuations of our index. They’ll be back for sure when the effect of the TRAIN (Tax Reform for Acceleration and Inclusion) bill is felt in the economy by next year,” Mr. De Celis added. 

Regina Capital Development Corp. Managing Director Luis A. Limlingan meanwhile noted that most investors will now be taking their holiday break.

“Philippine markets were flat even though the TRAIN has been signed into law, most investors are on the sidelines already enjoying the holidays,” Mr. Limlingan said. 

Sectoral counters were split between gainers and losers. Ending in positive territory were the mining and oil sector, adding 1.14% or 128.40 points to 11,330.62; services, which climbed 0.43% or 6.87 points to 1,601.23; and industrials, which gained 0.08% or 8.87 points to 11,098.60.

On the other hand, the property sub-index logged a 0.44% or 17.29-point decline to 3,882.82. Financials shed 0.17% or 3.77 points to 2,140, and holding firms dipped 0.01% or 1.45 point to 8,481.53.

Wednesday saw 830.54 million issues change hands for a total value turnover of P5.26 billion, lower than the P6.87 billion booked on Tuesday. 

Decliners beat advancers, 110 to 84, as 50 names remained unchanged.

Net foreign outflows widened to P225.82 million yesterday from the P186.94 million recorded on Tuesday.

US stocks fell on Tuesday as excitement over the likelihood of a tax code revamp was offset by concern over its effect on years of monetary policy stimulus and the future of interest rates.

The US House of Representatives initially passed the tax legislation in an afternoon vote, but the bill included provisions that did not comply with Senate rules. The Senate was expected to vote this evening on a revised version of the bill, with the offending provisions removed. If the Senate approves the bill, as is expected, the House will vote again on Wednesday.

The Dow Jones Industrial Average fell 37.45 points or 0.15 % to 24,754.75; the S&P 500 lost 8.69 points or 0.32% to 2,681.47 and the Nasdaq Composite dropped 30.91 points or 0.44% to 6,963.85. — Arra B. Francia with Reuters

Metro Pacific secures P10-B loan facility

METRO PACIFIC Investments Corp. (MPIC) said it has signed a loan facility agreement with a couple of banks totaling P10 billion to finance the company’s projects and operations. 

In a disclosure to the stock exchange on Monday, the infrastructure conglomerate said it has entered into separate agreements with BDO Unibank, Inc. and Union Bank of the Philippines. MPIC will be taking 10-year fixed rate term loan worth P5 billion from each bank.

“Proceeds (of the loan) will be used by MPIC to finance its investment in various projects and for other general corporate purposes,” the company said in the disclosure. 

The conglomerate earlier announced it will be allocating P100 billion for capital expenditures in 2018, out of the P653-billion five-year spending plan.

This capex program will be funded through a combination of equity partners, internally-generated income, value crystallization in its portfolio, and banks. MPIC will also be offering P30 billion worth of bonds to be issued in tranches in the next three years. 

Of the total spending, MPIC has allotted P38 billion for toll roads through Metro Pacific Tollways Corp., P17 billion for rail through Light Rail Manila Corp., P21 billion for Manila Electric Co., P12 billion for Maynilad Water Services, Inc., P6 billion for Metro Pacific Hospital Holdings, Inc., and P6 billion for logistics in 2018. 

The aggressive spending comes as MPIC aims to grow its toll roads, power, water, hospital, and rail businesses. The company is also looking to take part in the government’s “Build, Build, Build” program, which involves a rollout of P8 trillion worth of infrastructure projects during President Rodrigo R. Duterte’s term. 

The listed conglomerate booked P11.13 billion in attributable profit in the first nine months of 2017, 17% higher than the P9.5 billion posted in the same period in 2016. Revenues accelerated 30% to P43 billion during the same period. 

MPIC is one of three Philippine units of Hong Kong-based First Pacific, along with PLDT, Inc. and Philex Mining. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Shares in MPIC were unchanged at P6.71 apiece at the Philippine Stock Exchange on Wednesday. — Arra B. Francia

It’s o-fish-al: Tokyo’s Tsukiji market to move on Oct. 11

TOKYO — Tokyo’s famed Tsukiji fish market will move to a new site on October 11, the capital’s governor said Wednesday, ending years of delays marked by scandals and emotional divisions among fishmongers.

Yuriko Koike’s decision should also clear the way for a key transport hub for the 2020 Olympic Games to be situated on the market’s site in eastern Tokyo.

“We believe the schedule will give us enough time to prepare for a smooth relocation,” she told reporters.

The market, a popular tourist attraction in an area packed with restaurants and shops, will move to Toyosu, a former gas plant a bit further east.

Ms. Koike’s decision is drawing close to a charged debate over what to do with the dilapidated but beloved Tsukiji market that handles 480 kinds of seafood worth $14 million daily — as well as 270 types of fruits and vegetables.

The market is best known for its pre-dawn daily auctions of tuna, caught from all corners of the ocean, for use by everyone from top Michelin-star sushi chefs to ordinary grocery stores.

The market opened in 1935 and has fed Japan’s hunger for fresh seafood ever since.

But in recent years the antiquated facility has prompted its users, such as seafood wholesalers, to voice concerns about its earthquake resistance, sanitation and fire safety, as well as the structure’s use of asbestos and its crumbling walls.

They have also discussed the need for upgraded technology, such as better refrigeration systems.

However, the move, originally slated for late 2016, also faced loud opposition from various businesses that operate at or around the market, an extremely popular attraction located conveniently within walking distance from the Ginza shopping district.

Many businesses were emotionally attached to the Tsukiji brand as well as the location, which also had its own problems with soil contamination as it used to house a dry cleaning plant before the market was built.

Ms. Koike, a former TV anchorwoman, put the relocation plan on hold shortly after being elected Tokyo’s first female governor last year.

She then found a series of problems with the new site in Toyosu, including soil and groundwater contamination as well as the discovery that contractors had inexplicably failed to fill in a basement at the new site with clean soil as a buffer against underground pollution.

The local government has paid hundreds of millions of dollars to clean up the new facility.

Tsukiji’s wholesalers have voiced frustration over the delay, arguing that postponing the move was costing them millions of dollars a month.

The decision will also officially make the upcoming new year tuna auctions the last at the beloved market.

In January, Kiyoshi Kimura, Japan’s self-styled “Tuna King,” paid more than $600,000 for a 212-kilogram (467-pound) bluefin tuna at the first auction of the new year.

In 2013, the restaurateur paid a record $1.8 million for a bluefin — a threatened species — outbidding a rival bidder from Hong Kong. — AFP

Repealing net neutrality: Much ado about nothing

By Michael R. Wade 

On December 14th, the US Federal Communications Commission (FCC) repealed the American net neutrality rules that went into effect in 2015.

Net neutrality is somewhat of a misnomer — a better descriptor is ‘content agnostic’. What net neutrality implies is that Internet Service Providers (ISPs) in the U.S. — cable companies and telcos like Comcast and Verizon – must treat all content equally, regardless of what it is or who owns it.  For example, AT&T is not currently allowed to provide its subscribers faster access to DirecTV, which it owns, and slower access to Netflix, which it does not own. The end of net neutrality would, in theory, allow ISPs to charge more/less for, or slow down/speed up, different types of content.

Removing net neutrality has generated a huge amount of media coverage in the U.S., mostly casting the debate in terms of an epic story of victims and villains.

The victims are American consumers and businesses. As certain content is priced out of reach, the story goes, the Internet will become less rich, small enterprises will suffer, public schools and universities will see their Internet connections slow to a crawl, the best minds will leave the country in frustration, and everyone will pay more for Spotify and Netflix.

The villains are the ISPs, long reviled for high prices, poor service, and aggressive retention tactics. The ISPs lobbied the government hard for this change, and stand to benefit the most at the expense of long-suffering subscribers. Networking and infrastructure companies are also likely to gain, as the rule change will require upgrades to networking hardware and software.

This is a gripping narrative, but how much of it is actually true? Will the end of net neutrality really make a big difference to the average Internet user? We think not.

First, it is worth pointing out that net neutrality rules are quite new – the law was only enacted in mid-2015—although the concept has been around since the 1990s. Prior to 2015, there was no net neutrality and, well, the Internet worked just fine for most people. Occasionally, an ISP was caught slowing down (throttling) certain sites, but public pressure or legal action tended to keep them honest. There is little reason to believe that a future with no net neutrality regulation will be very different from the past.

Second, the issue with net neutrality is multispeed Internet service, not web censorship. An ISP might be frustrated that Netflix consumes 35% of its bandwidth at peak hours, but it cannot legally block it, with or without net neutrality. Even with no net neutrality, the most that an ISP could do would be to slow down access to Netflix, and charge people for higher speeds. In reality, this is not likely to happen – the public backlash would be too severe. More likely, the ISPs would discriminate by offering their own preferred content faster and cheaper. Ironically, this is already happening under net neutrality regulation – AT&T, for example, offers DirecTV access as a ‘zero rating’ product, i.e. it does not count towards data caps.

Third, the end of net neutrality rules will lead to a closer link between cost and consumption. While net neutrality may be conceptually appealing, it is not equitable. Is it fair that a few super-users are allowed to clog up networks by downloading movies, playing data-hungry online games, and not paying more for it? Why shouldn’t ISPs be allowed to price data according to volume, type, or speed?

Fourth, ISPs could use any extra revenue generated from high-bandwidth users to subsidize the cost to regular users or improve network infrastructure. If they start to charge more for content, then there will be a lot of pressure from subscribers and regulators to improve services levels in return.

Fifth, the practical difference for most subscribers will be minimal. Most ISPs already charge higher prices for higher speeds, or bundle less attractive services (like TV channels you never watch) with more attractive ones (faster Internet access). The only difference without net neutrality would be that slow speeds could affect some sites more than other sites.

Sixth, net neutrality, however intuitively appealing, is a form of government control. History has taught us that government control and intervention often inhibits progress and innovation. If ISPs are less regulated, one might imagine companies springing up that would provide better, faster and cheaper service, thus promoting innovation!

Finally, ISPs are unlikely to make any quick moves to change the status quo. Legal challenges to the removal of net neutrality are likely, mid-term elections are coming in 2018, and public opinion of ISPs is already low. Most large ISPs have also pledged not to make any dramatic moves in the event that net neutrality is repealed.

Net neutrality is an attractive concept, and its removal might instinctively rub you the wrong way, but that doesn’t mean it should be kept in its current form. Reid Hoffman, CEO of Netflix, has stated that net neutrality is ‘not our primary battle at this point’. If he is not worried, why should the rest of us be? And it goes without saying that if this is overblown in the US where the legislation is happening then the rest of the world will be spared the impending doom that some are predicting. — with Heidi Gautschi

Michael Wade is director of the Global Center for Digital Business Transformation at IMD, and co-author of Digital Vortex: How Today’s Market Leaders Can Beat Disruptive Competitors at Their Own Game.  

Which Asian markets are adopting electronic payments?

Wrapping up the year

The year is almost over but the compliance obligations of taxpayers and businesses continue until May. In addition to the periodic reportorial requirements of government regulators throughout the year, a number of annual requirements await businesses at the end of each year. The obligations extend until the submission of the final annual reportorial requirements to the Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC), Investment Promotion Agencies (IPAs) and Local Government Unit (LGU).

In the past months, taxpayers have been monitoring the tax reform package and analyzing its possible impact on their businesses. However, old rules will apply for this taxable year so let us not forget to revisit our notes and be reminded of our annual reporting obligations.

1. Renewal of Registration
All businesses, except those exempted, are required to renew their registrations annually and pay the corresponding fees with the LGU and BIR having jurisdiction over their place of business.

The payment of local taxes and fees to secure the business permit from the LGU can be done annually (on or before Jan. 20) or quarterly (on or before April 20, July 20 and Oct. 20). Failure to renew the business permit within the deadline will trigger a 25% surcharge and 2% monthly penalty, or may result in the closure of the business.

Further, companies shall pay the BIR an annual registration fee of P500 on or before January 31 of each year. The penalty for late payment is a 25% surcharge, plus 20% interest per annum, and a compromise penalty of P1,000.

2. Books of Account
Manual books of account
A new set of manual books of account must be registered when the previously registered books have been exhausted, provided that the portions pertaining to a particular year are properly labeled or marked by the taxpayer. This means that it is not necessary for a taxpayer to register a new set every year when there are remaining pages to write on.

Loose-leaf books of account
Businesses using loose-leaf books of account as approved by the BIR must submit their bound books of account for the taxable year within 15 days from the close of each fiscal year (on or before Jan. 15 for taxpayers operating on a calendar year).

Computerized books of account
Businesses using computerized books as approved by the BIR shall submit their books for the taxable year, in CD-R, DVD-R or other optical media form within 30 days from the close of each fiscal year (on or before Jan. 30 for calendar year taxpayers).

Failure to submit the books of account within the deadline is subject to a penalty not exceeding P25,000.

3. Annual Information Returns
Every taxpayer required to deduct and withhold tax shall file with the BIR the annual information return of income tax withheld on compensation and final withholding taxes with an alphabetical list of employees (BIR Form 1604-CF) on or before Jan. 31 of the succeeding year.

On the other hand, the annual information return of creditable income taxes withheld/income payments exempt from withholding tax (BIR Form 1604-E) with an alphabetical list of payees must be submitted on or before March 31 of the succeeding year.

Failure to file an information return or list is subject to a penalty of P1,000 for each failure but not to exceed P25,000.

4. Withholding Tax Certificate for Employees
The Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) shall be issued to employees on or before Jan. 31 of the succeeding calendar year.

For employees qualified for substituted filing, the employer shall submit the signed BIR Form 2316 to the BIR not later than Feb. 28 of the next year. Failure to file the form with the BIR within the deadline is subject to a penalty of P1,000.

5. Annual Income Tax Return (ITR) and Audited Financial Statements (AFS)
All taxpayers and businesses are required to file their annual ITR with the BIR and pay the related taxes due on or before the 15th day of the fourth month of the following year (i.e., April 15 for calendar year taxpayers).

Considering the thresholds set by the BIR and SEC, every business must assess if there is a need to have its books of account audited by an independent Certified Public Accountant (CPA) accredited by the BIR, SEC and Board of Accountancy (BOA).

A manual filing of the annual ITR, accompanied by the AFS, as applicable, and other required attachments shall be done within 15 days from the deadline for electronic filing of the annual ITR.

The penalty for the late electronic filing and payment of taxes due is equivalent to a 25% surcharge on the tax due, 20% interest per annum and compromise penalty not exceeding P50,000. Penalty for the late manual filing of annual ITR and AFS ranges from P1,000 to P25,000 depending on the amount of gross sales, earnings, or receipts.

For entities operating on a calendar year, the deadline for filing of the AFS with the SEC is based on the last digit of the entity’s registration with the SEC, which usually starts during the third week of April until the middle of May. The late filing of AFS is subject to a penalty ranging from P500 to P5,000 depending on the amount of total assets reported in the most recent AFS.

The BOA also requires all entities with gross receipts/revenues of at least P10 million to submit a Certification/Compilation Report signed by an accredited CPA. However, the BIR and SEC do not require this report. Further, there is yet no penalty imposed by the BOA for non-compliance with this requirement.

6. Annual Tax Incentives Report
Under the Tax Incentives Management and Transparency Act (TIMTA), all businesses registered with any IPA, availing of incentives administered by the IPA, shall file with their respective IPA an Annual Tax Incentives Report within 30 days from the statutory deadline for filing of the annual ITR and payment of tax due, if any. In addition to this, registered business entities (RBEs) are also required to submit a Cost-Benefit Analysis which will be used by the IPAs and the National Economic and Development Authority in determining the impact of tax incentives on the Philippine economy.

Any RBE which fails to comply with the filing and reportorial requirements and/or fails to show proof of filing of tax returns to IPAs shall be meted the following penalties: a) P100,000 for the first violation; b) P500,000 for the second violation; and c) cancellation of the RBE’s registration for the third violation.

7. Inventory List and Other Reporting Requirements
All businesses maintaining inventories shall submit to the BIR an inventory list and schedules of other tangible asset-rich balance sheets, often with at least half of their total assets in working capital assets, e.g. accounts receivable, not later than 30 days following the close of the taxable year. Failure to submit the list/schedule is subject to a penalty of P1,000 for each list/schedule, but not to exceed P25,000 for each year.

8. General Form Financial Statements (GFFS)/Special Forms for Financial Statements (SFFS)
The SEC requires the submission of GFFS or industry-specific SFFS, whichever is applicable, by all SEC-registered domestic corporations with annual gross sales or revenue of at least P5 million, as well as investment companies and publicly-held companies, financing companies and other companies covered by SEC Memorandum Circular No. 6 Series of 2006. The GFFS/SFFS shall be submitted within 30 days from the last day of filing of the annual AFS with the SEC.

The following are the penalties for non-submission, late submission, or inaccurate/incomplete reporting of figures in the GFFS and SFFS: first offense is a reprimand, and every succeeding offense is P1,000 per day plus P100 per day of delay for GFFS or P2,000 per day plus P100 per day of delay for SFFS.

9. General Information Sheet (GIS)
The GIS shall be filed within 30 days from the annual stockholders’ meeting for domestic corporations or on the anniversary of the issuance of the SEC license for foreign corporations. Penalties for the non-submission, late submission, or inaccurate/incomplete reporting of information in the GIS are: reprimand for the first offense; and for succeeding offenses, P1,000 per day plus P100 per day of delay.

The foregoing list of year-end requirements is not all-inclusive. There may be other annual requirements needed to comply with depending on the company’s industry.

Non-compliance with the annual reportorial requirements brings unnecessary additional costs (e.g. penalties), which may be significant to some taxpayers. This could also trigger an early tax audit investigation. To avoid this dilemma, some companies find it more cost-efficient and effective to outsource the function to third party service providers who prepare and file their annual requirements. But, no matter how year-end requirements are processed, taxpayers must prepare ahead to ensure 100% timely compliance and reporting. After all, an orderly and compliant reporting has always been the cornerstone of good business practice. It’s also an effective way to close the year right.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

Jane R. Alcause-Fabro is a Director at the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

(02) 845-27 28

jane.r.alcause@ph.pwc.com

Nation at a Glance — (12/21/17)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

How PSEi member stocks performed — December 20, 2017

Here’s a quick glance at how PSEi stocks fared on Wednesday, December 20, 2017.

How to jazz up your LinkedIn profile

Astrong social media presence is a must for marketers these days. But aside from boosting sales through Facebook and Instagram, here’s another use for the internet: building your company’s cred to make it more attractive to potential employees.

And right now, the best place to do that is on LinkedIn, a platform which boasts 467 million users worldwide and focuses on building a desirable reputation for both employees and employers.

Unaware of how to navigate LinkedIn? Here’s a little cheat sheet we came up with, based on the recent LinkedIn for Success seminar at the Marco Polo Hotel, as well as the e‑book entitled “Employer Branding Essentials”.

 

1. Expand your reach

Widen your company’s reach by encouraging employees to identify themselves as part of the company on their profiles on the platform. After all, employees are a company’s “unofficial recruiters and marketers.”

“In doing so,” the digital material said, “your employees will soon amplify your message further than any official channel ever will.”

Encouraging your employees to update their profiles on LinkedIn provides an opportunity to establish a desirable image among potential applicants. In fact, according to LinkedIn Talent Trends 2016, “1 in 4 candidates look at employee profiles after hearing about a new job.”

Once employees have updated their profiles, companies should urge them to engage in conversations, actively post contents, and grow their connections on the platform. You can also add the “follow” button so every time people follow your company’s page, it will spread through their networks.

 

2. Build engagement

Make sure to update your company page as it is your official presence on LinkedIn. In the same way, you should also establish your career page as it serves as an extension of your company page where employees can share stories about their experience working at your company.

Posting videos and photos about your company also helps in engaging potential employees with your page. Some ideas in creating proper career pages, according to the material, includes using existing photos and videos as part of custom modules, running a photo contest by asking employees to share snaps or images featuring a recent company event or their daily stay in your workplace, and republishing blog content produced by your leaders.

You can motivate followers to apply by sharing updates about your company on the platform.

 

3. Boost job interest

The job descriptions that you post on your LinkedIn profile are not mere blurbs that people scan through. Job descriptions, according to the e‑book, are “prime real estate” for promoting an employer’s brand.

“LinkedIn has millions of job posts and distributes them to candidates based on skill sets, but it’s your descriptions that will compel them to view and apply,” it added.

In publishing job openings, do not get too creative with job titles. instead, just stick to standard.

It is also good to share your company’s culture and values through job descriptions as they are the first thing candidates want to know before applying or joining a company, according to LinkedIn’s Global Talent Trends Report 2016.

 

4. Empower new employees

Your employees play a huge role in establishing a good employer brand as “they shape your company’s culture, live your values, and work to manifest your mission.”

Failing to engage employees, will make your campaign to establish a desirable brand “quickly fall apart.” In doing so, you should “onboard them well” and provide them with tools and skills to fulfill their roles in your company.

Engaging employees start from the time you welcome them to your company, which set them on a path to “job satisfaction, improved productivity, and ultimately, a long tenure at your company.” Ideas to consider in welcoming new employees include showing a welcome video from your CEO, giving information on how to get social, and conducting a fun activity that will tell them your culture and values.

You can nurture your employees by continuously teaching them new skills and knowledge. To make them stay in your company, create and highlight career advancement opportunities.

A port of many opportunities

Cagayan de Oro, known as the ‘melting pot of Mindanao’, has proven time and again its capabilities as one of the Philippines’ best cities for investors. Due to its accessibility as a city with multiple air and sea ports in the area, and its consistent rank among the list of the most competitive Philippine cities by the National Competitiveness Council, it has become the regional center and logistics and business hub of Northern Mindanao and one of the most progressive and competitive cities in the country.

Part of the reason for its competitiveness and why it holds the potential to become one of the country’s emerging business sectors is its well-developed infrastructure backbone. The first-class city has the major advantage of being a gateway to Northern Mindanao, with connectivity to major production areas and markets through Laguindingan International Airport and an extensive inter and intra-city road networks. The city also possesses the largest seaport in Mindanao, the multi-berth Cagayan de Oro baseport.

Cagayan de Oro serves as a city of trade links in Southern Philippines, the entry point for goods to be quickly distributed to a consumer market of millions, and the most efficient exit for the island’s agricultural and industrial products to its major foreign and domestic markets in Visayas and Luzon. Supply chain companies have located their major depots or distribution centers in the area.

Its strategic location attracted even the Pilipinas Shell Petroleum Corporation to put up its multi-billion peso fuel import facility there, dubbed as the North Mindanao Import Facility (NMIF), which provides power and energy to the population of Visayas and Mindanao.

Cagayan de Oro also has a solid infrastructure for telecommunication. The city is linked to four access nodes (fiber optic ring). Thus, when one side is cut-off, the city/province can still access connection from other nodes since all signals are being hauled to the cable landing stations in Batangas and Ilocos. It is now part of the seamless fiber optic ring of all major telecom providers and host of Cellular Mobile Telephone Services (CMTS) Main Switching Centers (MSCs).

Another reason for the city’s growing economic strength lies in its extensive pool of human resources. As the home of many universities and other educational institutions, Cagayan de Oro supports the growth of its over 600,000 residents with quality education and training. Xavier University (Ateneo de Cagayan) is Mindanao’s first university, while Capitol University and the Liceo de Cagayan University are cited by the National Association of Colleges and Universities as among the country’s top 10 higher education institutions with the highest number of accredited programs. The city has access to eight universities, 70 colleges and six computer technology institutes in the region.

Xavier University — www.xu.edu.ph

Special skills training and apprenticeship programs are readily available for Cagayan de Oro residents. For instance, Xavier University has partnered with Asian Carmakers Corporation, the official BMW distributor in the Philippines, to bring the expertise of BMW to technical education students.

A skilled and educated population in turn contributes to the formation of a valuable work force that is attractive for corporations in various industries.

In terms of economy, Cagayan de Oro is largely sustained on the strength of its industry, commerce, trade, and service sectors. The city is the growth driver of Northern Mindanao, with a gross regional domestic product of P270.0 billion in 2014, attributable to the city’s thriving industry and services sectors.

The business processing and outsourcing (BPO) has especially benefited from the city’s ample work force. At present, business process operators in the city include the Concentrix Corporation, a global knowledge process outsourcing company and wholly owned subsidiary of SYNNEX Corporation; Rider Livett Bucknall, a company which provides quantity surveying, project/construction management, and advisory services for BPOs; and Teleperformance, the world’s leading provider of outsourced omnichannel customer experience management services.

Even now, Cagayan de Oro’s potential as a BPO hotspot continues to attract investors abroad, powering the city’s overall sustainable and eco-friendly economic development. Today, Cagayan de Oro boasts of five IT parks and two IT buildings, two of which are PEZA-registered.

Meanwhile, the rich agricultural resources of the city has also made it a prime location for agribusiness. Multinational agribusiness companies, such as Del Monte and Nestle, have chosen Cagayan de Oro as their site of operations. As the gateway to Southern Philippines, Cagayan de Oro provides direct access to rich agricultural areas of Mindanao, which is the source of 40% of the country’s food and livestock. The city is also a significant producer of oleochemical and other coconut products. Presently, Northern Mindanao is the top producer of cattle and is the third largest producer of poultry in the country.

As the Philippine economy attracts more foreign business due to its rapidly growing economy, next wave cities like Cagayan de Oro can only become more attractive for investors over time. Its excellent location coupled with sound infrastructure and a valuable work force make it one of, if not the best cities to do business in the foreseeable future. — Bjorn Biel M. Beltran

Some marketing ideas to try this holiday season

With Christmas Day right around the corner, everyone, equipped with ready cash and credit card, seems to be in a feverish hunt for the perfect gifts for oneself and for others. What can business owners do to make hay while the sun shines?

The best bet would be to give gifts, like chocolates, bottles of wine and other festive fare. “Gifts are a time-honored way to show clients that you value them, in turn inspiring loyalty to you,” says Startups.co.uk, an independent online resource for starting business in the U.K.

Startups suggests sending small gifts with the company’s branding as an alternative. Just make sure that they are practical. “A branded lanyard may come across as pointless if your business doesn’t serve those who have a particular use for them,” the site says.

Giving prospective customers free samples may convince them to finally make a purchase, while providing the loyal ones with samples of a new product can help drum up interest. Send some to the influencers and journalists, too. Startups said doing so may persuade them to give one’s product a go. They may even write about or promote it on their social media accounts.

A simple greeting card is another potent instrument for expressing one’s appreciation of a customer’s loyalty. Put some effort into choosing one, though. “Personalized, [specially designed] cards (think cheesy team photos) are particularly memorable, and a great way to re-affirm any relationships you have built with clients while working with them or selling to them,” Startups says.

Try offering mouth-watering deals and/or discounting some products. “Seasonal deals and discounts can go a long way in driving awareness of your business,” the site says. “Consider buy-one-get-one-free deals or a 20% discount on spends over a certain amount throughout December. You could also offer incentives such as free gift wrapping or an extra, small service thrown in with each large purchase.”

Let the customers know about the deals and discounts by promoting them on the company’s Web site and, most especially, social media accounts. “You have to be very clear on the start and end date of your special promotion, as well as the price they are paying, the amount they’re saving, and how limited the time is to take advantage of all these things,” GearLaunch, an e-commerce software provider, says.

It continues: “There’s no time to waste at this point, so they either want it or they don’t; move along if their answer is no. Let them know it’s for them and them alone, and that it’s going away as soon as they scroll past it.”

To boost social media presence, consider running giveaway competitions. “Simply offer up one of your products or services (or a collection of them), and ask that users follow you, like the post and tag their friends to enter to win,” Startups says.

Using hashtag helps increase the giveaway promo’s visibility. But be inventive. The site cites the #MakeItThoughtful hashtag of John Lewis, a high-end department store, which encouraged users be more thoughtful in giving gifts, and #TedsElfie of Ted Baker, a luxury clothing retail company, which corresponded to a game on Instagram in which users had to search for missing elves across profiles.

Business owners will also do well to share the contents their customers generate. “The more you interact with your customers, the more they will feel like they’re of value to your business. Users may well share images and posts about your products or services across social media — try finding the best ones and sharing them on your own channels, reacting to them as you go and perhaps adding your own hashtag,” Startups says.

This may be more difficult to pull off, but it is nevertheless worthwhile to try: offer expedited shipping. “Shipping is a huge concern for buyers at this time of year. Everyone is freaking out about getting their gifts on time for Christmas and being able to finish up their shopping list as quickly as possible. Here’s your chance to ease their stress and still profit,” GearLaunch says. “If you can guarantee customers that they will receive your product in time to wrap it and throw it under the tree, you have already solved a huge problem and established dominance in your niche.”

Of course, don’t forget to stock up on the best-sellers and the products that would make for great gifts. And to keep on top of fulfilling orders, Startups suggests giving customers the option to pre-order.

The site also recommends taking temp into service. “If you know that this season is going to be a busy one for you, you might consider hiring an extra pair of hands to help you out temporarily. Get in touch with a temping agency if you’re not sure where to start — just be sure that you can comfortably pay the extra wages,” it says.

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