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Comparative net FDI inflows to select Southeast Asian economies

Comparative net FDI inflows to select Southeast Asian economies

Why we need ‘sexy’ robots in the Philippines

How long do we have until robots gain sentience and thrust us into an Asimovian dystopia? Ely Ampao of PhilRobotics and JumpSparc said that given the great strides the world has made in robotics and artificial intelligence, we have more or less a decade until humanity creates our future robot overlords.

But kidding aside, the Philippines is lagging behind other countries when it comes to robotics. In an interview with SparkUp at the sidelines of the Startup Project expo at the University of Sto. Tomas last June 3, Mr. Ampao said that while they’re doing their part in making robotics more accessible to the public, they’re facing two major problems in trying to make it more popular in the Philippines.

First, no one has made robots “sexy” in the Philippine context yet.

And no, we’re not talking about robot companions ala‑Gigolo Joe (Jude Law) in the 2001 Spielberg movie A.I. Artificial Intelligence. “Robotics in the Philippines isn’t sexy. When I say sexy I mean it makes people go ‘wow’ when they see it,” Mr. Ampao explained. “I think someone has to make our own version of robotics. We’re too influenced by the West and the Chinese.”

Indeed, most science fiction influences stem from Western nations and Japan nowadays, a far cry from its Czech roots with Karel Capek’s 1920s play Rossum’s Universal Robots, which popularized the word “robot”. When we hear of robots, we think of Japanese mechs and American cyborgs. What does the Philippines have to offer? The 2007 Metro Manila Film Festival movie Resiklo starring Bong Revilla?

It is in the context of making “sexy robots” that the role of art and media comes in. “Maybe if someone could make a television show or a movie with Philippine robots, people would get interested in it,” Mr. Ampao said. It is here where science needs art, and art can find itself inspired by science.

The second problem robotics in the Philippines face is the perception that it is an expensive field.

“Hardware can be expensive. That’s the major deterrence that we’ve discovered,” said Mr. Ampao. “That’s why we’re also promoting Hebocon where you can use everyday stuff to make robots.”

And robot enthusiasts in the Philippines early this year set up their own informal Hebocon, with robots made of chichirya wrappers and barrel men. JumpSparc is also working with schools, which have the money to invest in robotics programs and short courses.

“We’re talking with our student ambassadors to have mini meet‑ups again and we’re trying to get another set of mini‑workshops. Venues where people can play around with robotics,” said Mr. Ampao. “I think that‑s the way to do it, get regular meet‑ups going.”

Despite these issues, Mr. Ampao remains optimistic about the future of robotics in the Philippines. “We live in exciting times,” he said, citing the proposals in the Senate for a Philippine Space program. “And for that we need more scientists and more techies. Bring them back here from abroad.”

Out of the closet, into the clothing industry

Afashion designer profiled by British Vogue sashayed in the retail industry in 2009 with absolute honesty—the complexities of her gender and sexuality as a lesbian.

“I consider the LGBT as an inspiration,” Kaye Morales told SparkUp in an interview at her atelier in San Antonio Village, Makati City. True to form—and with the memory of struggling with clothing choices as a young boyish girl—the 33‑year‑old Ms. Morales is a purveyor of designs that cater to people of “all sexual orientations and gender expressions.”

These styles range from oversized and edgy pieces, to fabrics bursting with rainbow colors—the global colors of LGBT (lesbian, gay, bisexual, transgender) pride.

Her direction sprung from her desire to be free. “I didn’t want to work while hiding something,” she recalled. “At one point, I had been put out to my friends, but not in the industry where I worked. I wanted to be real and I wanted people to know the real me, so I can work properly.”

Art Samantha Gonzales

Her sartorial passion began to express itself at the De La Salle‑College of Saint Benilde, where she took up interior design, then production design. She was aware of being always noticed for her fashion taste.

The call of the catwalk drew her to the SoFA Design Institute in Makati and eventually to London’s Central Saint Martins, whose notable alumni include Alexander McQueen and John Galliano.

“I was still studying, but a lot of fashion editors were already recognizing my works,” she said. “That’s when I decided to start my business.”

Initially managing two brands—her eponymous clothing label which featured avant‑garde pieces, and Schizo, which offered street wear—she later merged the two to avoid brand confusion among her customers.

Today, Ms. Morales continues designing and running a business. Gazing at the spotless white floor of her shop that lazy weekday afternoon, she tells a story about receiving an offer by the country’s largest retailer to set up shop in their malls, which she had to turn down. “But I still need to study mass production,” she says in hindsight. Still, among her plans is opening more outlets, including, perhaps, outside the country. So far, her mother is her main investor.

Late last year, she diversified and added to her portfolio Nectar, a Bonifacio Global City-based luxury nightclub for the LGBT. She is a co‑owner.

“It’s really a hard business,” she said about the cutthroat industry. “Every day there are new designers. But I can say that I have become braver in my seven years so far.”

“I want to prove that I have worth even if I am a lesbian,” she finally declares.

Ayala Land creates new capacities for Sicogon Island locals

Sponsored Content -SQAYALA Land (ALI), together with joint venture partner Sicogon Island Development Corp. (SIDECO), is developing the Sicogon Island Tourism Estate in support of the government’s Western Visayas tourism drive.

Where does your service charge go?

Ah, service charge: our favorite excuse not to tip. It is often an unwelcome surprise that comes at the end of a (hopefully) delicious meal at a nice, sit‑down restaurant. It serves as a mandatory tip of sorts, an additional 8% to 10% computed from your original bill. How many times have you gone over the receipt, searched for the magic words and exclaimed, “Oh, there’s service charge. No need to tip!”?

But is this service charge really going to your waiter’s pockets, just as how the tip works?

If we go by the Labor Code of the Philippines, Article 96 has this to say: “All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty‑five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages.”

If you and your friend go to a café that charges a ₱100 additional service charge for food that costs ₱1000 (sans value added tax), ₱85 of that should be split between all of the restaurant staff that made your scrumptious meal, and ₱15 goes to the restaurant owner.

But in an informal survey of restaurants ran by SparkUp in Quezon City, asking wait staff—ever so politely—if they really do get their 85%, their response is that it’s the other way around. Almost all of the service charge, around 85‑90%, according to the staff, actually go to the owners of the establishment. The leftover, 10‑15% gets split between the rest of the waiters and kitchen staff. Going by our ₱100 service charge example earlier, ₱90 of that would go to the owner. Assuming that our hypothetical café employs five more people, they get a measly ₱2 each for their hard work.

That arrangement, said attorney and former restaurateur Mark Brian Dela Cruz, could be perfectly legal, as long as the employees knew about the arrangement beforehand.

“What is under the Labor Code—85% for the staff and 15% for the management—is the minimum standard,” Mr. Dela Cruz explained in a phone call to SparkUp. “It is there unless the employers convey to the employee that 90% goes to the management and 10% goes to the employees, and they accept it in their contract.”

“By virtue of that stipulation in their contracts, the employees know that they have not been shortchanged by their cut in the service charge,” he added.

Mr. Dela Cruz said that he used to manage a small restaurant with only one outlet, so the 85%‑15% split in the Labor Code was amenable to him. But it might be unfair to larger establishments. “If you are a big restaurant or a big chain of restaurants, you can not afford the 85%‑15% split because you have to account for operational costs. It’s hard to compare the operations of big restaurants to small ones. You have to look at the bigger picture.”

So perhaps it’s time to reconsider tipping the waiters for their hard work. If you have the extra cash, what’s a few pesos to show your appreciation to all the work that goes into your dining?

Tipping isn’t mandatory in our culture, but it would certainly be greatly appreciated (Emily Post has an extensive guide to tipping here). There’s an aphorism that goes: If you can’t afford to tip, you can’t afford to go out and eat.

How to turn spending pains to saving gains

Look back at the past few weeks, and try to recall what and where you have spent most of your money on. We’ll take a wild guess and say that the top four answers would probably be food, gadgets, travel and clothes. To be honest, we can’t really blame you. We understand how all these could really be so alluring. The good news, though, is we can actually turn all these pains of spending into gains for saving.

Art Erka Capili Inciong

You and your friends enjoy eating out and scouting the must‑try restaurants in the metro. It’s quite a splurge to do this often, but at the very least, make it worth your while. Explore the dishes and cuisines, and consider recreating them later on. Bring your latest concoctions to potluck dinners with friends, or better yet, earn money from cooking all these meals. Who knows, you might actually discover a new hobby, and a potential business idea, in cooking.

Art Erka Capili Inciong

The newest model is launching in a month and pre-ordering is a must. It’s got a bigger screen and increased megapixels for photos. But, is a new phone really necessary? Skip riding on the fad and maximize the potential of your current phone instead. Use it to earn yourself some extra income by taking a crack at photography and videography. Market your skills and maybe even sell your photos or videos online. Developing your craft and working hard will build you an impressive portfolio which clients will die to get their hands on.

Art Erka Capili Inciong

Traveling could be quite costly but it’s possible to get a portion of your money back after spending thousands for airfares, tour packages and accommodations. Use your skill in writing and create reviews of your many travel experiences. Who knows, your collection of honest and helpful stories and tips might thrust you into becoming a blogger and social media influencer. This might even bag you a couple of free trips and perks for your next travels. Exciting, isn’t it?

Art Erka Capili Inciong

Shopping is not something we could easily resist, especially when three‑day sales come by more often than actual paydays. Sometimes, impulse buying really cannot be helped. It may feel like a good purchase today, but after a day or two, it wouldn’t seem like a wise decision after all. Should you find yourself in this ordeal, there’s no need to fret so much. The good thing about this is it doesn’t really have to be money lost for you. You can opt to re‑sell clothes you haven’t used or even consider doing garage sales for items that are still worth someone’s money.

Remember, these tips are not to deprive you of spending anything for yourself. By all means, reward yourself from time to time for the hard work that you do. The key here is to never get stuck in merely spending and to keep an eye for opportunities in saving. We’re telling you, the possibilities are endless and you just have to be more tactical and creative in utilizing your current assets.

Push this idea of gaining even more and give investing a try. Learn more about the magic of compound interest and enjoy seeing your ₱10,000 at 15 years old exponentially grow into ₱100,000 (at an interest rate of 12%) by the time you’re 35. Wouldn’t it be exciting to see your money work for you this way? Or, why not even try investing in mutual funds or the stock market at an early age? Don’t only practice saving, but find opportunities to grow your current fund.

What we’re saying is enjoying some luxuries can potentially be sources of income for you as well. Buy and invest on experiences, not on material things and possessions. These experiences and skills will come in handy and will give you more leverage to turning these seemingly pains into actual gains. Not only will this grow your bank account, but it will also let you grow more as a person.


Clarissa Seriña‑de la Paz and Sharon W. Que are financial literacy advocates and the bestselling authors of “I Wish They Taught Money in School” and “Money Grows on Trees” Check out their books at www.lifestyleupgrade101.com. Get 10% off, plus a free notepad and bookmark, by sharing this story with the hashtags #MoneyMonday and #SparkUp. Remember to make your post public!

Which developing markets are attractive to retailers?

Which developing markets are attractive to retailers?

A trio of millennials built an app so you won’t struggle with stocks

John Christian Bisnar, the 26‑year‑old CEO of Investagrams worked as an equity dealer in two big foreign brokerage firms in the country—Macquarie and Credit Suisse—before becoming a full‑time stock trader. His job included buying and selling shares, as well as giving insights on investment to different clients who were all part of the 1% of the Philippine population that was invested in stocks.

“I’d seen many of our institutional clients making millions from our market. And there, I realized that though the Philippine stock market was really strong, only a few Filipinos were benefiting from it,” he told SparkUp. “That’s where I knew I need to do something about it.”

So in 2015, Mr. Bisnar, together with former De La Salle University schoolmates JM Lapina and Airwyn Tin, founded Investagrams—an app and website that would provide users with “everything they need to succeed in their stock market journey.”

Art Erka Capili Inciong

“We were all young traders who wanted to create something meaningful beyond ourselves,” Mr. Bisnar said, adding that the trio “lives and breathes the stock market.”

“We realized that there was no single go‑to platform when it comes to the stock market here in our country and that’s where we decided to establish Investagrams,” he also said.

For beginners, the platform features articles, videos, and modules about stock market trading. Users who opt to start actual trading but are still afraid of the risks involved can train using its virtual trading platform.

Investagrams also features analytic tools, including charts that project relevant market indicators, automated analysis that shows important price levels, and stock screener that allows users to go through the hundreds of stocks. It also has “InvestaWatcher” that sends users price and disclosure alerts via text message, email, and in‑app and Facebook messenger notification, allowing them to monitor their stocks from time to time. Users can also reach out to other traders through Investagrams’ social network feature.

Art Erka Capili Inciong

“The whole platform makes the stock market easier for our users,” Mr. Bisnar said. “Before, you had to read newspapers for updates, but now you just have to take a look at our news aggregation feature (which also happens to include coverage on the market by www.bworldonline.com—Ed).”

He said further: “Our advanced analytics saves you a lot of time and makes you a more efficient investor. Instead of analyzing hundreds of stocks one‑by‑one, with our screeners and alerts, you can easily pinpoint which stocks are showing potential.”

At present, Investagrams has 80,000 users and an average of more than two million views per month.

It helped that they won equity-free funding worth ₱500,000 from startup incubator IdeaSpace Foundation, alongside a mentorship and formal entrepreneurship program by the Asian Institute of Management.

“The IdeaSpace program definitely helped us to get off the ground. Our mentors helped us develop a more mature and systematic approach as a start‑up company,” he said.

For Mr. Bisnar, making the bourse more accessible to the average Filipino is, by far, Investagrams’ biggest contribution to the country’s trading community. “In learning stocks,” he said, “not only do you open up a new avenue to make money, you will also gain a broader perspective and deeper understanding of business and the economy.”

Mr. Bisnar and his associates hope to bring more Filipinos to investing in the country’s growing economy. They are currently organizing a summit where institutional traders and those in the retail scene will share their expertise to young, aspiring investors.

“Our long‑term aspiration is to really guide more Filipinos in the stock market and teach them the right discipline and approach in trading or investing,” he said.

Tracking social progress around the world

Tracking social progress around the world

Government swings back to budget deficit in May

THE GOVERNMENT’S fiscal position swung back to a deficit in May as the growth in expenditures outpaced revenue expansion, it reported on Friday.

In a statement, the Bureau of the Treasury said last month’s budget deficit came in at P33.4 billion, wider than the P17.7-billion gap logged in the May 2016 and a reversal of April’s P52.7-billion surplus.

Government expenditures in May grew by 20% to P261.7 billion from P217.4 billion in the same month last year.

Budget Undersecretary Laura B. Pascua said the stronger spending was due to the mid-year bonuses shelled out in May, as well as back-to-school-related disbursements.

“That would have been due to the midyear bonus, the implementation of the 4Ps (Pantawid Pamilyang Pilipino Program), DoH (Department of Health) projects and the DepEd (Department of Education) programs given the opening of school,” she said in a mobile phone message on Friday.

“We comprehensively released mid-year bonus [of] P32.6 billion for civilian and military and uniformed personnel, equivalent to one month salary,” she added.

Broken down, interest payments for the month stood at P21 billion, growing 12% from last year “due to timing of payment for Treasury bonds scheduled in April but paid in May.”

Other spending increased 21% to P240.7 billion last month from P198.8 billion in May 2016.

Meanwhile, revenues expanded by 14% to P228.3 billion in May from P199.8 billion in the same month last year.

Tax revenues collected by the Bureau of Internal Revenue (BIR), Bureau of Customs (BoC) and other offices came in at P201 billion, up 9% from P185.1 billion the year previous.

The BIR raked in P158.7 billion during the month, rising 5% from the P151.6 billion it booked in May 2016, while the BoC’s collections grew 23% to P39.6 billion from P32.1 billion. Other offices collected the rest of the tax revenues.

On the other hand, non-tax revenues increased by 86% to P27.3 billion in May from P14.7 billion in 2016.

“Bulk of revenue growth for the month of May can be attributed to non-tax revenues, particularly the Bureau of the Treasury’s (BTr) income…as remittance of dividends on share/stock holdings of the government from GOCCs (government-owned and -controlled corporations) started to come in,” the Treasury said. BTr’s income expanded by 214% during the month to P18 billion from P5.7 billion the year prior.

May’s budget deficit widened the five-month gap to P63.6 billion, although this was still 15% lower than the P75.1-billion shortfall seen in January-May 2016.

Expenditures for the first five months totalled P1.06 trillion, 6% more than the P1 trillion spent in the same period last year.

Meanwhile, revenues grew by 8% to P996.5 billion from P925.4 billion previously. Tax revenues from January to May rose 10% to P900.8 billion, while non-tax revenues fell 7% to P95.7 billion.

CAPACITY
Still, Bank of the Philippine Islands lead economist Emilio S. Neri, Jr. said the pickup in spending seen in May signalled the government’s capacity to execute its massive infrastructure drive, which may lead to faster economic growth for the second quarter.

“I think the much stronger outlays in May can ease some of the concerns that government agencies have limited capacity to absorb funds. It also eases some of the doubts about the ability of new government to carry out its vision of a “Golden Age of Infrastructure” in the next five years,” he said via e-mail.

“A pick up in government outlays in 2Q2017 (second quarter 2017) may lead to a faster GDP (gross domestic product) growth print than the somewhat disappointing 1Q2017 (first quarter 2017) print of 6.4%,” he added.

Budget Secretary Benjamin E. Diokno said in a text message: “The disbursement rate in May is indicative of better performance, but it’s not yet our best.”

Mr. Diokno said base effects from accelerated spending rates last year — due to election-related disbursements — is still evident in the end-May expenditure tally.

“We at the DBM are constantly monitoring the disbursement rates of all agencies. The disbursement rate from January to April this year might appear to be marginally higher than the comparative period last largely because of base effects: 2016 was a presidential election year,” he said in a mobile phone reply on Friday.

“Also, it is reflective of the ‘learning-by-doing’ process. 2016 was [Benigno S.C.] Aquino’s final year in office while 2017 was [President Rodrigo R.] Duterte’s first,” he added.

The government is looking at a wider deficit ceiling at 3% of GDP annually starting 2017, as it plans to drastically raise spending, particularly on infrastructure.

For this year, the budget shortfall is programmed at P482.1 billion. In 2016, the government posted a P353.4-billion deficit, which was equivalent to 2.4% of GDP. — E.J.C. Tubayan

Earthquakes and heritage

By Nickky Faustine P. de Guzman

ALL the electric and mobile connections are down while the tension remains high. Everywhere you look is chaos: buildings are now rubble, the people are in a panic, and dead bodies pile up. These are not imagined scenarios from films like World War Z, Train to Busan, or The Day After Tomorrow.

KFC Philippines appoints its own Filipino Colonel

Ads & Ends
Nanette Franco-Diyco

THE NEW CREATIVE agency of KFC Philippines, Ogilvy & Mather, launched for the first time what they call the Filipino Colonel to incarnate the brand’s iconic colonel endorser connected to the global KFC logo.

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