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Pru Life UK aims to launch takaful insurance products early next year

PRU Life Insurance Corp. of UK Philippines (Pru Life UK) targets to launch its first takaful insurance product in the first quarter of 2025 as it has secured a license from the Insurance Commission (IC).

“So today, what we launched was the takaful window, which is essentially an endorsement of the platform we had put together, how our Shari’ah committee should look like, what are the tenets of takaful, and how the investment of the premiums we collect should look like. Essentially, the infrastructure, the foundation that allows for the product to be launched,” Pru Life UK Philippines President and Chief Executive Officer Sanjay Chakrabarty told reporters late on Monday.

“And we expect to launch the product in quarter one of 2025. Of course, it’s subject to regulatory approval,” he added.

Takaful is a type of Islamic insurance where members contribute a certain sum of money to a common pool. Takaful insurance needs to be compliant with Shari’ah law, which prohibits riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles.

Mr. Chakrabarty said that the products they plan to release will focus on savings and protection.

“The market is ready for the takaful product. The number of people whom this would directly impact is not small — seven million is not small — but the way we are structuring this business line is not just restricted to the seven million,” he said, referring to the Muslim community in the Philippines.

“It’s got a much wider set of potential customers that we’re looking at… If the product is strong with a good value proposition for the customer, it will appeal to everybody. It will not be restricted to the Muslims alone,” Mr. Chakrabarty added.

Pru Life UK said it has formed a Shari’ah Committee to oversee the creation of takaful products.

Mr. Chakrabarty added that their agents will need to be trained to understand and sell takaful products, with their target market also needing to be educated about the need for insurance.

“We try and make sure that all the segments, all the communities that are unserved or underserved, do get addressed by us. We will have a significant increase in customer base, I hope,” he said.

He added that they expect that tapping the Muslim community will contribute to the company’s profitability in the long term.

“There are businesses that have a really long cycle. Insurance is one of them. So, if we do our jobs correctly, if we set up the products right, then at some point, we do expect this to start contributing to the profitability of Pru Life UK,” he said.

“If you understand the insurance business and you understand the long cycle that this business operates with, then you will not expect to see a huge profit coming through in 2025 or 2026. This is a long-term commitment to this community and to this line of business. So, over time, yes, it will contribute because that’s how a business becomes sustainable.”

Pru Life UK will conduct sessions on financial literacy and economic empowerment in areas with large Muslim Filipino populations like the Bangsamoro Autonomous Region in Muslim Mindanao and the Zamboanga Peninsula, he said.

Mr. Chakrabarty added that takaful products will need to be affordable to help boost the insurance penetration rate.

Pru Life UK has over 170 branches and general agency offices in the Philippines, with a life insurance agency force of more than 38,000 licensed agents.

It booked a premium income of P46.19 billion and a net income of P4.36 billion in 2023, IC data showed. — Aaron Michael C. Sy

The Bistro Group says TGI Fridays PHL unaffected by US bankruptcy filing

TGIFRIDAY'S PHILIPPINES FACEBOOK ACCOUNT

THE BISTRO Group, which operates TGI Fridays in the Philippines, said its operations are not impacted by the bankruptcy filing of TGI Fridays, Inc. in the United States.

TGI Fridays, Inc.’s filing only covers its 39 restaurants in the US and does not include TGI Fridays Franchisor, LLC, which owns the brand and intellectual property, The Bistro Group said in a statement on Monday.

The Bistro Group President Jean Paul Manuud said that TGI Fridays Philippines is “not only stable but thriving.”

TGI Fridays Philippines recently expanded to 30 stores with five new locations and plans to open five more in 2025, he added.

TGI Fridays Philippines is celebrating its 30th anniversary this year.

Under the US Bankruptcy Code, a Chapter 11 bankruptcy allows a company to restructure its finances and operations.

In its filing with the US bankruptcy court for the Northern District of Texas, TGI Fridays, Inc. listed both assets and liabilities in the range of $100 million to $500 million. The US-based company said it had secured financing commitment to support its ongoing operations.

TGI Fridays, Inc. Executive Chairman Rohit Manocha said the company suffered financial challenges due to the coronavirus pandemic as well as its capital structure. — B.M.D. Cruz

Twenty years of Stratbase

FREEPIK

Let me wax nostalgic today as I commemorate the establishment of the Stratbase Group 20 years ago. It is as if a long time had passed, and yet at the same time, the events beginning 2004 seem to have happened only yesterday. I believe that looking back at our organization’s history and accomplishments will ground us on what is truly important and inspire us to strive even harder to reach more people and have a positive impact on society.

It was just after the controversial 2004 elections that we wanted a more institutionalized platform for our governance advocacy. Like any other Filipino, we were full of good intentions and thought we had a measure of competence to help enhance the country’s situation to improve the lives of the Filipino people. We did not harbor the illusion that we had all the answers, but we felt at least we could help in our unique way.

Thus, we brought together a team of political experts to the world of research and consulting, drawing inspiration from the United States model where the private sector provides insights on policies and their direction.

Two years later, in 2006, we partnered with Bower Group Asia, a Washington DC-based consulting firm. This opened doors for us among Fortune 500 companies, such that we eventually started policy research and business advisory consulting services for the top private players in the country, including monitoring of regulatory and legislative issues which may affect them.

And then, in 2014, we relaunched our research arm and named it after our chairman, Secretary Albert Del Rosario — the Stratbase ADR Institute for Strategic and International Studies, which in turn eventually launched its National Security and Indo-Pacific Affairs Program. We strongly advocated the use of the term “West Philippine Sea” instead of the “South China Sea,” in support of the country’s territorial sovereignty.

Through Stratbase ADRi’s private sector partners, the Institute was able to raise funds to have its defense and security advocacies reach Washington DC, such as through the Center for Strategic and International Studies (CSIS), as well as in countries like Japan, Australia, India, Europe, Taiwan, and other Southeast Asian nations.

Today, the Stratbase Group is a policy research and business advisory firm, building a trusted clientele over the years through a foundation of trust, commitment, and impactful service delivery across various sectors. Its work in the last two decades has highlighted the importance of partnerships across sectors to drive the effective implementation of reform agendas. “Stratbase makes business and politics work” by bridging gaps between the private and public sectors for mutual benefit and progress.

Stratbase has expanded and now partners with around 60 corporation clients, with the focus of bridging the divide between corporate and government objectives. Its think tank arm, the Stratbase Institute, successfully advocated for significant reforms aimed at ensuring transparency and accountability in public service, creating avenues for more investments, etc.

We continue to grow and expand our range of expertise, continuously monitoring and advocating for various priority sectors: agriculture and food, banking and financial technology, consumer and retail, defense and security, environment and mining, health, information and communications technology, infrastructure and public utilities, power and energy, trade and investment, education, and tourism and gaming.

Coinciding with our commemoration of our 20th year is the holding of the Pilipinas Conference 2024, which will mark its ninth year. The two-day conference starts today, Nov. 6.

The event aims to advance multi-sectoral collaboration to shape policies that address the complex social, political, and economic challenges impacting the Philippines and the broader Indo-Pacific region. This year’s theme is “Navigating a Complex Geostrategic Landscape: Building Resilience Through Cohesive.” On Day 1, we will talk about defense and security while on Day 2, we will cover the partnership between the government and the private sector.

With each passing year, each Pilipinas Conference solidifies Stratbase’ position in the Philippines not only as a partner to Philippine and foreign owned corporations, but also as an established top partner for the country’s like-minded allies in advocating for strengthening their bilateral relations with the country.

Indeed, in the past two decades, Stratbase has provided a platform for conversations, discussions, and interaction among representatives of the government, the private sector, civil society, and the diplomatic community. As the Stratbase Group celebrates its 20th year of advancing the Philippines’ position in the global scale, the Group will continue to build partnerships and bridge the gap between business and politics through its common goal of improving the quality of life for every Filipino.

We have been facilitating essential dialogues on defense, foreign policy, trade, and governance. Stratbase has been an active participant in shaping national policy, but we will not stop there. We know that the challenges are evolving — there are issues now that we never contemplated when we were just starting out — but we are emboldened by aspirations of a prosperous, just, and competitive Philippines.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

The duct-taped banana is coming to auction asking $1 million

SOTHEBYS.COM

IT WAS the banana seen around the world.

When the artist Maurizio Cattelan ducttaped a fresh banana to a wall at Art Basel Miami Beach in 2019 it caused an immediate uproar. Mr. Cattelan’s gallery was soon forced to take the piece down because crowds in the booth became unmanageable; within days it was the subject of memes and knockoffs. Celebrities posted about it; Serious Art Critics weighed in; one person ate it. And perhaps most important, collectors snapped it up.

The work, which is titled Comedian, was produced in an edition of three, with reported prices of $120,000 to $150,000 apiece; one piece was donated to the Guggenheim Museum; the other two are owned privately.

Five years later, one of the works in private hands will be offered to the public with a notably higher price tag: Its presale estimate is $1 million to $1.5 million. “We’re handling not only one of the most important and significant works of art [Cattelan] has ever made,” says David Galperin, head of contemporary art for the Americas at Sotheby’s, “it’s really one of the most talked about works of the century. So is the value of $1 million to $1.5 million scientific? No. But could it go far beyond that? I believe so.”

UNDERSTANDING VALUE
In art, value has never been derived from materials alone. A painting by Picasso is just pigment on canvas; for that matter, Michelangelo’s David is just a chunk of stone. And over a century ago Marcel Duchamp’s Fountain, a urinal he turned on its side, effectively did away with (among other things), the question of whether or not an artist’s “hand” was necessary for an object to become an artwork. Today, the art world is saturated with artworks, conceptual or otherwise, made from readymade materials. In that respect, Comedian is nothing new.

What is arguably more novel about the work, however, is that it’s been interpreted as commentary on the absurdity of the art market itself. Allowing the public to bid on it, Mr. Galperin says, will be a fitting next chapter for its time in the public eye.

“This is a work of art that has provoked so much debate and dialogue around this notion of value specifically with respect to art,” he explains. “There’s no better platform to engage in that discussion than public auction.”

WHAT YOU’LL GET
Whoever buys the work will receive a certificate of authenticity. That certificate confers the right to manifest the artwork, and also includes detailed display instructions. As an added bonus, the winning bidder will receive a roll of duct-tape and a banana, which at the very least will save them an initial trip to their local supermarket.

“The banana and duct-tape can be replaced as needed,” Mr. Galperin notes. “It’s not an original duct-tape and banana.” (This edition has already sold privately once before.)

The inclusion of the work in Sotheby’s all-important contemporary Nov. 20 evening sale has been a closely kept secret, Mr. Galperin said last week. “Not a single soul knows about it aside from one or two members of my team, and the journalists we reached out to in the last 24 hours.”

As such, they’ve done absolutely no advance marketing or outreach, but Mr. Galperin says he’s confident there will be an outpouring of interest as the piece embarks on a world tour to New York, London, Paris, Milan, Hong Kong, Dubai, Taipei, Tokyo, and Los Angeles in advance of the sale.

There will be traditional art collectors vying for the work for whom Mr. Galperin says the duct-taped banana would be “a significant trophy,” but its global fame, he continues, means that the audience could be much larger.

“Given the way in which this work of art was able to puncture through the confines of the art world and enter the public, pop cultural consciousness,” he concludes, “this has the potential to generate interest from truly everybody.” — Bloomberg

IC open to transferring oversight of HMO sector

BW FILE PHOTO

THE INSURANCE Commission (IC) is open to handing over the supervision and regulation of health maintenance organizations (HMO) to another government agency, its top official said.

“Until we can find the right place to put them, we’ll do everything we can for them. I don’t see other options at the present… If there would be better people or a better organization to handle it, I’ll be more than happy to transition,” Insurance Commissioner Reynaldo A. Regalado told reporters late on Monday.

This, as Mr. Regalado said he is in talks with Congressman Anthony T. Golez, Jr. regarding a proposal to transfer the oversight of HMOs to another agency under the Department of Finance. This would also need to be coordinated with other concerned agencies, he added.

“I think we have to get the wisdom of the legislators. It has to be covered by law, so the mandate is clear,” Mr. Regalado said.

With HMOs being covered by anti-money laundering rules, the sector needs to be regulated by a financial regulator, he added.

Meanwhile, the IC will likely delay its proposal to hike HMOs’ minimum capital requirements, Mr. Regalado said.

The IC in July issued a draft circular that proposed to raise the minimum paid-up capital of HMOs to P50 million by end-2024 from the current P10 million. Meanwhile, new HMOs must put up at least P100 million in capital.

By end-2025, all HMOs should have at least P100 million in paid-up capital under the proposal. This would be increased to P200 million by end-2028, to P350 million by end-2031 and to P500 million by end-2034.

“We have not spoken with the hospitals and the doctors. We may have to be doing that because it’s something that we have not been having much of a dialogue. So, we’ll have to coordinate with the Department of Health on how we’re supposed to go about it because now we will have to check on the proper rates that we’re supposed to be putting up,” Mr. Regalado said.

“It’s a moving target. We are reviewing. To be honest about it, we are reviewing because this has been given to us through an executive order… We’re in continuing discussion with Congress on how we’re supposed to go about it because once we have a clearer mandate, I think that would be good,” he added.

The HMO industry booked a combined net income of P636.6 million at end-June versus the P1.19-billion net loss booked in the same period last year, according to IC data based on the unaudited financial statements of 25 companies.

Only six out of the 25 licensed HMO companies recorded net losses in the period, according to the report, with all firms meeting the current P10-million capital requirement. — AMCS

DigiPlus Q3 profit jumps to P3.52B on user traffic, new games

DIGIPLUS.COM.PH

LISTED DigiPlus Interactive Corp. saw a 247% increase in its third-quarter net income to P3.52 billion from P1.02 billion a year ago, led by higher user traffic and new game offerings.

Third quarter revenue improved by 171% to P19 billion from P7.01 billion last year, DigiPlus said in a statement to the stock exchange on Tuesday.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 206% to P3.83 billion.

For the first nine months, DigiPlus saw a 314% growth in net income to P8.75 billion from P2.1 billion in 2023, led by its retail games, new product offerings, and cost efficiencies.

Revenue jumped by 223% to P51.56 billion from P15.98 billion in 2023.

EBITDA also grew by 271% to P9.34 billion.

DigiPlus operates platforms such as BingoPlus, ArenaPlus, PeryaGame, Tongits+, and GameZone.

In September, the company’s BingoPlus platform launched the Pinoy Drop Ball digital game, the first live-streamed drop ball experience in the Philippines. The company also introduced the Super Ace Jackpot that offers P200 million in jackpots and individual wins reaching up to P30 million.

“Pinoy Drop Ball and Super Ace Jackpot are quickly rising as fan favorite and expected to drive significant revenue growth for DigiPlus in the coming months, as they capture the thrill and loyalty of Filipino players,” DigiPlus said.

On Tuesday, DigiPlus shares rose by 2.16% or 45 centavos to P21.25 per share. — Revin Mikhael D. Ochave

Wodd PH uses bamboo to make sunglasses, cut waste

STARTUP WODD PH uses bamboo to make sunglasses in line with Quezon City’s push to cut plastic waste.

It also helps Filipino farmers in Cebu and Davao, where it gets the raw materials to make wood and bamboo-oriented consumer and fashion products.

“The more you use local farmers, the more you’re giving them opportunities,” Stephene Roy C. Condino, group executive vice-president at MASA Group of Companies, the parent of Wodd PH, told BusinessWorld in an interview.

The “poor man’s timber” is a versatile material used in products like furniture, paper, musical instruments, accessories, and food.

In the Philippines, there are about 50,000 hectares of bamboo forests, according to the Department of Environment and Natural Resources.

Despite the demand for bamboo in the Philippines, it is still considered an untapped potential, according to the Department of Trade and Industry.

To maximize the produce from five to 10 local farmers, a strand of bamboo creates about two to three pieces of eyewear that costs P4,000 each and takes two days to make.

“If there is a demand to produce more, you will need to have more farmers,” Mr. Condino said.

He said it is difficult to market sustainable products in the Philippines because people think they are expensive.

“Eventually, no one believes in what you do as a sustainable company because they are not used to it,” he said. “We have to inform everyone that it’s not always cost-driven.”

Committed to promoting sustainability, the environmental startup has pledged to plant a tree for every eyewear it sells.

As many as 3,000 tree seedlings had been planted in Samar, Davao del Sur, Bicol and Rizal as of October as part of this environmental commitment.

“We have to ensure that we take good care of these seedlings,” Mr. Condino said. “When we plant them, they will grow for three years and not just for a short time.”

He added that customers should be aware of the sustainability work done by businesses that sell eco-friendly products and services.   

“We need to see action. We need to see results coming from what we’re trying to portray to customers,” he added. — Almira Louise S. Martinez

Governance myopia or mysteries

FREEPIK

Shortsightedness is only too obvious when one sees the remains of the fake beach along Roxas Boulevard. This senseless project that has harmed the environment executed by of all things, the Department in charge of protecting it, is a disgraceful piece of evidence of government myopia. The proponents and its approvers did not anticipate the heavy rains and typhoons that recur in our country year after year. And did not provide for maintenance and security arrangements that became the cause for the abandonment of the project.

Here in Cebu, day after day, there is a traffic bottleneck at the corner of Salinas Drive and Gorordo Ave., two of the main roads along residential, and increasingly commercial, areas. Gasoline is wasted as motor vehicles stall for 10 to 20 minutes in the unnecessary traffic jam.

Some years ago, money from the Priority Development Assistance Fund (PDAF or pork barrel) was allocated for a huge overpass that would traverse and uglify the gracious Gorordo Ave. for several blocks. Fortunately, a group of citizens organized themselves into a “movement for a livable Cebu” and lobbied noisily in the media and with the National Government to stop the ugly overpass from being built.

Even a non-engineer like me can see that there are obvious, and simpler solutions to the traffic snarl at the intersection: Reduce the parking area of a mini mall at the intersection. In order to let traffic from Gorordo Ave. flare into the Salinas Drive, redesign the wasteful traffic “island.” Cut into the space occupied by an economically unproductive Church compound that does not even pay taxes.

But until today, because of myopia or “mysteries,” the traffic bottleneck continues at that busy intersection because government has not done anything new since the overpass project was discarded years ago. Meanwhile, gasoline prices continue to increase, and thousands of peoples’ precious time continues to be wasted day after day, hour after hour.

On another busy road, A.S. Fortuna, which has become more and more commercialized, floods occur whenever heavy rains come to Cebu City. This road becomes unpassable. The public works crews have come and gone; yet the floods still occur. It seems to a few simple folk like me that the government cannot seem to see that the waters do not drain because certain parts of A.S. Fortuna, such as the section surrounding a memorial chapel, have been cemented all the way to its parking area. Why doesn’t the government ask the owners of the memorial chapel to convert some of the cemented land into drainable space? Is it another case of myopia, or mystery?

The Secretary of Finance has directed that the almost P90 billion in excess or unused Philippine Health Insurance Corp. (PhilHealth) funds be turned over to the national treasury. This is against the law that provides that excess or unused PhilHealth funds can only be used to expand services or reduce premiums. It is obvious that PhilHealth management has failed to plan intelligently for the effective use of the funds to benefit its members, who contribute 4% of their monthly salaries as members. And now, the premiums, it seems, have been increased to 5%, yet they cannot even make effective use out of the 4% contributions. Myopia, or mystery?

My housekeeper’s brother, who had a motorcycle accident over the weekend, is in a government hospital awaiting surgery on his head. In order to avail of assistance from the Department of Social Welfare and Development (DSWD), she went to the Philippine Statistics Authority (PSA) to get a copy of his birth certificate. She suddenly came back with a small piece of paper on which the PSA listed eight instructions in bureaucratic English with PSA’s “appointment” website indicated on top. My probinsiyana (provincial) maid, who never entered high school, doesn’t know how to use a computer. Even I, with my master’s degree, have difficulty making sense of the “Steps on how to use the Appointment System.” Even the list of eight steps to take does not make clear at what point the copy of a birth certificate is obtained. Another indication of governance absurdity. 

The Supreme Court has recently affirmed the Sandiganbayan’s decision to dismiss the P276-million case against the Marcoses because, it says, to undue delays in the prosecution of the case.  The Sandiganbayan has explained that the delay is not the fault of the respondents. Thus, the dismissal. And our highest court of justice has affirmed its decision, now that the President is another Marcos! P276 million can fund so many running water systems in the rural areas which will enable housewives to conserve their energies for other family needs than fetching water from distant sources day after day. It could also upgrade government hospitals that care for our poor. This is truly an appalling injustice!

Three months have passed since the government created the much-vaunted multi-billion Maharlika Investment Fund (MIF).  It would be interesting to get a Profit and Loss statement; and in the spirit of transparency, obtain its detailed budget for staffing and salaries. Its CEO, Rafael Jose Consing, should make a report on what the MIF has done, if anything. Or are these more of government’s mysteries?

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

Arts & Culture (11/05/24)

Silverlens makes its debut at Art Week Tokyo

SILVERLENS Gallery will be exhibiting at Art Week Tokyo (AWT) for the very first time as part of the AWT Focus section, with an exhibit titled Earth, Wind, and Fire: Visions of the Future from Asia, curated by Mami Kataoka. It will feature the works of Poklong Anading, Taloi Havini, and Yee I-Lann, on display at the Okura Museum of Art from Nov. 5 to 10. The show will consist of Mr. Anading’s conceptual photographs, Ms. Havini’s wall-bound sculptures, and Ms. Yee’s woven mats.

SM to present Swan Lake ballet filmed for IMAX

THE iconic ballet Swan Lake will be taking flight in an IMAX film from Nov. 8 to 10 at various SM IMAX theaters, including SM Aura and SM Megamall. It will mark the first ever filmed-for-IMAX ballet, moving from the stage to the big screen with the goal of creating an immersive visual and audio experience for moviegoers. Tickets are available via https://bit.ly/SwanLakeAtSMCinema.

CCP Children’s Biennale promotes art appreciation

THE Cultural Center of the Philippines’ (CCP) Children’s Biennale 2024 will bring colorful exhibits, interactive workshops, animated film screenings, and live performances to the Samsung Performing Arts Theater in Circuit Makati on Nov. 9 and 10. Children’s Biennale: Let’s Play! welcomes kids of all ages. On Nov. 9, 10 a.m. and 4 p.m., there will be screenings of the animated film Before Brabant, directed by Alberto “Chino” Rodriguez with a live soundtrack by the Philippine Philharmonic Orchestra. On Nov. 10, 10 a.m. and 4 p.m., there will be a special performance of “Mga Kuwento ni Juan Tamad” by Alice Reyes Dance Philippines. Pre-show activities from 8 to 11 a.m. and 2 to 5 p.m. on both days are scheduled: Young at ART, a web series that features conversations between young children and veteran artists; Tara, Laro Ta(y)o, where children can learn about traditional games and indigenous dances; and Himig Himbing: Mga Heleng Atin, about Philippine lullabies. The event will have a Pay-What-You-Can scheme. Register via this link: https://bit.ly/4f8YDJJ.

Daniel dela Cruz exhibit at Galerie Joaquin

SCULPTOR Daniel dela Cruz has reinterpreted the story of Alice in Wonderland in his works, focusing on the innocence of Alice and the quirkiness of the characters she meets during her adventures. With a delicate, introspective touch emphasizing Alice’s vulnerability, he used brass, copper, and other metals to create intricate sculptures which will be on display at Galerie Joaquin, Rockwell, Makati City, from Nov. 7 to 17.

Digital art workshop at Yuchengco

ASPIRING digital artists can learn skills and new techniques at “Embracing Digital Art,” a three-day workshop with visual artist and multimedia arts professor Benedicto Modesto. He will present the most efficient tools for drawing, painting, and art studies using Krita. The workshop is slated for Nov. 9, 16, and 23, 1 to 5 p.m., at the Y Space at the Yuchengco Museum, RCBC Plaza, Makati City. Tickets cost P2,500 for the general public, P2,000 for seniors and PWDs, and P1,800 for students and academic faculty. Meanwhile, the Yuchengco Museum is currently closed until Nov. 19 for the setup of an exhibition.

Manila Pianos Artist Series presents Al Gatmaitan

THE Manila Pianos Artist Series, in collaboration with Artes Organization, present Al Gatmaitan in the concert Tra Musica E Sogno, an evening that highlights classical crossover pieces. A tenor, theater artist, and actor, Mr. Gatmaitan received extensive vocal education at the University of the Philippines followed by studies at the Conservatory of Music, University of Santo Tomas. He finally finished his Music Degree at St. Paul College, Manila. For this special show, Mr. Gatmaitan’s repertoire includes a mix of Italian, Spanish, and English classical crossover songs influenced by Andrea Bocelli. Concert pianist Dingdong Fiel will share the stage with Mr. Gatmaitan. The concert is slated for Nov. 14, 7 p.m., at the Manila Pianos Showroom, 4/F Ronac Lifestyle Center, Paseo de Magallanes, Makati City. Regular tickets cost P1,000, while they cost P800 for seniors, and P500 for students.

Demand for low-cost transactions to drive Wise’s growth in PHL

ANASTASIA NELEN–UNSPLASH

WISE PHILIPPINES expects transactions coursed through its platform to continue growing as it looks to provide low-cost remittance services and instant international transfers, its top official said.

The global cross-border payments platform entered the Philippine market in May amid the increasing number of freelancers and gig economy workers in the country and the steady growth in remittances and digital payments.

Wise Philippines Country Manager Areson I. Cuevas told BusinessWorld that their main goal is to provide low-cost international fund transfers.

“It’s really about receiving instantly and getting the most money out of what is being sent to them. Of course, we want to support the employers of the freelancers so that their employees in the Philippines could really get the most out of their salaries,” he said.

“And also, the OFWs (overseas Filipino workers). It’s both ways. OFWs will send and the dependents will receive. We want that to be instant, and we want that whatever the OFWs send, there will be as little cost as possible.”

The remittance market is a potential growth area for the company, Mr. Cuevas said.

“If you look at the data by the central bank on inward remittances, that’s $37 billion per year… The aim is to really support a lot of these inward remittances because the more that we support, then the more Filipinos are able to enjoy mid-market rates and lower transaction fees,” he said.

“As we all know, the Philippines is very big on inward remittances, and that’s where Wise could come in with our services,” he added.

Latest data from the Bangko Sentral ng Pilipinas showed that cash remittances grew by 2.9% to $22.22 billion in the January-August period from $21.58 billion a year earlier.

The United States accounted for nearly half or 41.3% of overall remittances in the first eight months. This was followed by Singapore (7%), Saudi Arabia (6.1%), the United Kingdom (4.9%) and Japan (4.8%).

The lack of consumer awareness regarding the fees charged on transactions is both a challenge and opportunity for Wise in terms of customer acquisition, Mr. Cuevas said.

“We really need to educate customers, and that has always been the mission of Wise: to share the cost of hidden markup fees. I think that’s a big friction in how to acquire more customers,” he said. “Wise has been putting out … customer information campaigns on the hidden costs of markups and transparency. Hopefully, more and more Filipinos will realize that okay, there’s this company called Wise, and I should be able to get transfers globally at very low cost and at mid-market exchange rates.”

“There’s a large number of Filipinos who are not aware that their foreign transactions incur a hidden markup, and with Wise you always get mid-market rates, which is what you see on Google. Sometimes Filipinos don’t check what the prevailing mid-market rate is compared to what the provider is giving them, and Wise always offers the mid-market rate,” he added.

Wise Philippines recently gained direct access to real-time electronic fund transfer service InstaPay and the BSP’s gross payment system PhilPaSS Plus, which it expects to result in faster transactions.

Mr. Cuevas said the company is also looking to partner with PESONet, which caters to high-value transactions.

“We cannot say much about that, but it is something that we are looking at. So, hopefully in the future,” he said. “Right now, we want to focus on improving customer experience through InstaPay.”

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks, while InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

The value of transactions done via InstaPay and PESONet jumped by 33.9% year on year to P12.37 trillion as of end-September, latest BSP data showed.

Meanwhile, the combined volume of transactions done via the two payment gateways also surged by 64% year on year to 1.05 billion in the first nine months of the year. — A.M.C. Sy

SteelAsia targets to export P1.2B worth of steel bars early next year

STEELASIA.COM

STEEL MANUFACTURER SteelAsia Manufacturing Corp. expects to ship P1.2 billion worth of steel bars to Canada in early 2025, following the completion of its seventh export of rebar a few days ago, the company said on Tuesday.

The company’s latest shipment, which was sourced from its Davao mill, comprises 30,000 metric tons of steel bars worth P511.24 million, the company said in a statement.

According to the company, its next shipment set for early next year will also be sourced from its plant in Davao.

The manufacturer’s previous six shipments, totaling 41,400 metric tons worth P1.58 billion, came from its Batangas mill and are used for Canadian infrastructure projects.

SteelAsia currently operates five facilities in Batangas, Bulacan, Davao, and Cebu, which supply over 70% of all rebar used in infrastructure, housing, power, industrial, and other business developments in the Philippines. — Justine Irish D. Tabile

Women entrepreneurs need tailored microfinance

FREEPIK

By Darshni Nagaria, Sara Niner and Elena Mayer-Besting

THE FINANCING NEEDS of entrepreneurs vary depending on business size, reason for starting a business and opportunities for enterprise growth. Typically, necessity-driven entrepreneurs start a business venture to support themselves and their families’ livelihoods when there is a lack of decent employment opportunities. As outlined in our recent blog “From necessity to opportunity: Supporting women entrepreneurs at all levels to thrive” in Asia, most women-owned businesses were started out of necessity. Necessity entrepreneurs are more likely to remain at the micro level and their businesses are typically concentrated in low value-added retail and service sectors within the informal economy.

Microfinance programs provide financial services to those who are traditionally unbanked and lack access to conventional banking and related services. The most common form is microcredit or small loans. Other forms include microsavings, microinsurance and micropensions.

Often, necessity driven microentrepreneurs fall into the unbanked category and it is hoped that access to these financial services can drive women’s economic empowerment, which in turn can result in poverty alleviation. However, for this to happen, microfinance programs should consider the different situations and vulnerabilities of clients and mitigate risks. Gaining an understanding of how finances are organized in households, the decision-making power of different household members including who will predominantly control loans, as well as the freedom that clients have in a specific household, community and local context.

Women and girls are often constrained by social customs and beliefs, which can prevent them from having an equal voice in household decision-making, limit their freedom of movement and their ability to make their own economic choices. At the same time, women and girls are usually responsible for the majority of unpaid domestic and care work, leaving them with little time for income-generating activities, such as paid work or entrepreneurship or, if they do juggle both, a highly stressful and sometimes unsustainable double burden. This is important when considering microfinance, as in some cases, women may take out loans, but do not actually control what the funds are used for or how the businesses they fund are managed, while being responsible for the loan’s repayment. These situations are then likely to give rise to indebtedness, high levels of stress and tensions within households, and can lead to domestic violence.

Microsavings models are one more promising alternative to the more well-known forms of micro credit. Microsavings groups allow members to control and grow a common pool of savings funds, borrow from the pool, and benefit from interest repayments by other group members. Savings groups formed within communities allow members to develop schemes based on local needs. Women can set their own interest rates and internal loan processes to suit themselves. They can also plan ahead for when they know loans may be needed most and periods when they cannot be repaid such as before harvest.

However, evidence shows that savings groups (and all forms of microfinance) can also fall short of holistic empowerment unless social norms related to women’s agency are shifted. For microfinance to deliver on its promises, several actions are needed.

There’s a need to consider gender relations and dynamics within communities and households in the design and delivery of financial products and services and relevant regulations, including by engaging local gender experts and women borrowers.

Following a bottom-up participatory approach in the design and delivery of financial products and services by including borrowers and entrepreneurs throughout.

The focus should be on building savings alongside offering credit and debt for women entrepreneurs and borrowers. In cases of low financial resilience, building savings should be prioritized.

There’s also a need to monitor women’s loan use, including their control of the funds within the household. Capping interest rates at low levels will also give women the time to boost their capacity and businesses.

Meanwhile, there’s a need to organize and provide culturally appropriate training about gender roles and relations using feminist methodologies, with men’s engagement to facilitate more balanced, supportive and safe dynamics at the household level.

Support systems such as subsidized childcare, will lead to manageable workloads in the paid labor market.

The United Nations Economic and Social Commission for Asia and the Pacific’s (ESCAP) work on entrepreneurship, in partnership with Global Affairs Canada, has supported necessity-driven women entrepreneurs by providing debt relief support, grants and seed funding and financial literacy training. Among others, the program has underscored the importance of designing gender sensitive financial products and services.

 

Darshni Nagaria is a consultant at ESCAP, while Elena Mayer-Besting is an Economic Affairs officer at the UN agency. Sara Niner is a senior lecturer at Monash University in Melbourne.

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