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PEZA celebrates 29 glorious years of eco-zoning the Philippines towards inclusive and sustainable development

Photo from facebook.com/PEZAPH

Over the course of 29 robust years, the Philippine Economic Zone Authority (PEZA) has had the privilege of witnessing the remarkable growth and vibrancy of our economic zones.

PEZA Director-General Tereso O. Panga

Heeding the call of President Ferdinand Marcos, Jr., alongside the vision of Department of Trade and Industry (DTI) Secretary and PEZA Board Chairman Alfredo E. Pascual and SAPIEA Secretary Frederick D. Go, PEZA has been offering the optimal location and business ecosystem for investors through its ecozone program. This emphasizes its renowned one-stop-shop function and commitment to providing no red tape, but only red-carpet treatment since 1995.

Together with its lean and mean workforce, PEZA has consistently focused on the benefits and advantages for investors with the range of fiscal incentives, such as Income Tax Holiday, Special Corporate Income Tax (SCIT), tax- and duty-free importation, zero VAT on local purchases, as well as its green initiatives, digitalization, and Ease of Doing Business (EODB) measures, among others. These serve as a testament to the Philippines’ appeal as an attractive base for offshore activities.

Looking forward, PEZA is streamlining the array of policy differences and addressing pain points that deter investors from entering the Philippines. This includes leveraging key legislations such as CREATE MORE to further enhance the business environment for our stakeholders. Additionally, an international forum on smart, sustainable, and green ecozones is scheduled for April 2024 to promote sustainability further.

As part of PEZA’s intensified efforts for aggressive promotion, seven priority sectors — advanced manufacturing, green ores processing, agriculture and blue industries, IT services and frontier technologies, eco-industrial park development, science, technology, and innovation, integration of Small and Medium Enterprises (SMEs) — are identified, diversifying investment attraction strategies. Aligned with evolving economic and technological landscapes, it is also venturing into new frontiers in ecozone development, moving beyond conventional types to encompass various categories, including mineral processing zones, renewable energy parks, knowledge, innovation, science and technology (KIST) parks, aquamarine ecozones, biotech centers, and mega pharmaceutical ecozones.

Through these endeavors, PEZA anticipates a positive upswing in the economy, fueled by upcoming strategic and large-scale investments. Its optimism is deeply rooted in its mindset to not only meet but exceed its P250 billion target for the year 2024.

As the economy gains momentum and upward trajectory signified with the constant increase in PEZA’s performance since President Marcos Jr. assumed office, PEZA commits to continue fostering the business environment for its valued locators so that it can better contribute to lowering the country’s trade deficit and more importantly, create employment opportunities for fellow Filipinos.

This journey has been characterized by an unwavering commitment to PEZA’s reinvigorated mission and mantra of eco-zoning the Philippines towards inclusive and sustainable development.

Breaking Barriers: Globe Group’s inclusive culture fosters female leadership

As a company at the forefront of championing gender equality and driving technological progress, the Globe Group has cultivated an inclusive ecosystem where women not only thrive but also lead with excellence. 

In the spirit of Women’s Month, the company proudly spotlights three remarkable female leaders initiating change and spearheading innovation within the organization and the broader community.

Beia Latay: A Visionary in Healthcare Technology

At the helm of digital healthcare innovation is Beia Latay, CEO of KonsultaMD. Beia’s strategic leadership has helped transform KonsultaMD into a premier telehealth platform in the Philippines, making healthcare accessible to all Filipinos.

Beia’s mission extends beyond healthcare, as she also promotes female empowerment. She believes in the potential of homegrown companies to serve as powerful examples for aspiring leaders.

“I want Filipinas to build more confidence, dream bigger, and aim higher. I hope to inspire future generations of women to pursue careers in healthcare and technology, knowing that their contributions can make a significant difference in the lives of others,” she said.

Joan Peñaflorida: An Advocate for Technology and Growth

Joan Peñaflorida, President and CEO of Yondu, has driven the company to remarkable achievements in the IT and cybersecurity sectors. Her focus on building a culture of trust, empowerment, and innovation has not only led to financial success but also fostered a supportive environment for employees.

Beyond providing top-notch IT solutions, Joan and her team are working towards a future where cybersecurity is not just a priority but a shared responsibility. Her dual role as a leader and a mother amplifies her commitment to cybersecurity awareness, underscoring the critical need for digital safety, especially among the youth.

“As a mother with a kid who is increasingly immersed in the online world, cybersecurity awareness hits close to home. Ensuring the safety and security of our younger generation, who are often vulnerable to online scams and threats, is a cause I’m deeply passionate about,” she said.

Irish Salandanan-Almeida: A Guardian of Digital Privacy and Online Safety

Atty. Irish Salandanan-Almeida, Globe’s Chief Privacy Officer, has played a crucial role in ensuring customer privacy and online safety. Her leadership in expanding Globe’s team of privacy and cybersecurity professionals reflects her dedication to creating a secure digital environment for everyone.

Being a mother, Irish places strong emphasis on children’s online safety. Her efforts in educating the public about data privacy are invaluable, benefiting not just the company but the wider community.

“As a mom of three young children, it’s important to me that my children know how to navigate the internet safely and to protect themselves online. I’m glad that as part of my job, I’m able to advocate for online safety and children’s privacy and contribute to the good of society,” she remarked.

Empowering Women in a Supportive Culture

The Globe Group’s inclusive environment, where women’s voices are heard and leadership with conviction is encouraged, enables women like Beia, Joan, and Irish to make significant impact in their respective fields.

“In the Globe Group, women have a safe space where we can debate openly without fear of judgment. It helps that we’re able to be ourselves. Since there are a lot of women working and leading in the Globe Group, empathy is visible,” Beia noted.

Joan expressed deep appreciation for the company’s unwavering commitment to nurturing a supportive work environment for women, saying: “At Globe, it’s not just a goal, it’s ingrained in our DNA.”

She further highlighted the critical role of diversity at Yondu, an IT solutions provider.

“One of the core values fundamental to its success is diversity. Regardless of gender, every voice is valued and respected,” Joan said.

Building on this ethos of support and inclusivity, Irish added that Globe leaders extend mentorship to other women, utilizing both informal interactions and the structured iMentor program, to foster a culture of growth and empowerment.

Guidance for Future Women Leaders

These inspiring leaders effectively blend their experiences into essential advice for aspiring young women, offering a cohesive roadmap for growth and success.

Beia shares a powerful message of encouragement: “Stay true to your passions, embrace challenges for growth, and push boundaries. Surround yourself with supportive mentors, and never stop learning.”

Joan further reinforces this guidance by emphasizing the significance of education, continuous learning, and the courage to venture beyond one’s comfort zone. She believes that building strong relationships, seeking mentorship, and maintaining authenticity and self-belief are foundational steps to success.

Echoing this sentiment, Irish advises, “Just go for it. You only need one person to believe in you, and that is you. Know that you can achieve anything you put your heart and mind into.” Her encouragement serves as a reminder of the power of self-confidence and determination in achieving one’s goals.

The achievements and insights of its women leaders enable the Globe Group to inspire and chart a path toward excellence for upcoming generations. Their collective contributions underscore the importance of female leadership in driving innovation and progress.

To learn more about Globe, visit www.globe.com.ph.

 


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SMC starts work on toll road linking its Bulacan airport project to Pangasinan

RAMON ANG — SANMIGUEL.COM.PH

SAN MIGUEL Corp. (SMC) has commenced work on the 76.80-kilometer Pangasinan Link Expressway (PLEX) project, which will connect Pangasinan towns to the company’s mega airport project in Bulacan.

“PLEX will connect to the Tarlac-Pangasinan-La Union Expressway (TPLEX) at the Binalonan exit, providing direct access to the New Manila International Airport in Bulacan,” SMC said in a statement on Thursday.

SMC, which also leads the consortium that bagged the contract to operate and rehabilitate the Ninoy Aquino International Airport, expects to commence development works for its Bulacan airport project next year.

The San Miguel group undertakes PLEX as a joint venture project with the province of Pangasinan. The two parties signed the joint venture and toll concession agreements last year.

The 42.76-kilometer first phase of the project from Binalonan to Lingayen, costing P34 billion, is expected to reduce travel time to around 20 to 30 minutes from one hour and 40 minutes, the province said in a statement on its website.

The first phase will extend 2.76 kilometers from TPLEX, another toll road operated by the San Miguel group, to Lingayen, Pangasinan.

“Phase 2 of the project will be a demand-driven expansion all the way to Alaminos, Pangasinan,” the company said.

“[The] expressway project [is] a game-changer for Pangasinan that is seen to boost local industries, agriculture, and tourism by linking the province’s eastern and western corridors,” it added.

The company also said the construction of PLEX will “incur no costs for the provincial government.”

At the same time, SMC committed to “timely completion pending the acquisition of the necessary right of way.”

“The provincial government will also receive a substantial share of the project’s earnings,” SMC President and Chief Executive Officer Ramon S. Ang said. — A.E. O. Jose

Aboitiz group sets 2024 capex budget at P153 billion

PHILSTAR FILE PHOTO

CEBU-BASED Aboitiz group has earmarked P153 billion for its capital expenditure (capex) budget this year, as the conglomerate plans to expand its renewable energy (RE) portfolio and other businesses.

 The 2024 capex, over two times higher than the P65 billion spent capex last year, will be used for RE projects in the pipeline, as well as further investments to develop the retail banking business, support utility infrastructure projects, and expand the food group, the Aboitiz group said in a statement on Thursday.

 Of the total capex budget, 48%, or P73 billion, is allotted to Aboitiz Power Corp.’s (AboitizPower) RE projects, 29% or P44 billion will be for the Aboitiz Group’s holding firm Abotiz Equity Ventures, Inc. (AEV), and P25 billion is for the group’s infrastructure arm Aboitiz InfraCapital, Inc. (AIC).

 Almost P4 billion is allotted as capex budget for food subsidiaries Pilmico and Gold Coin Group, while P3.3 billion is earmarked for AboitizLand, Inc.

 The group did not specify the allocation for its retail banking arm Union Bank of the Philippines, Inc.

 “Our substantial increase in capital expenditures is a clear reflection of our commitment to renewable energy,” Aboitiz group President and Chief Executive Officer Sabin M. Aboitiz said.

 AboitizPower has over 1,000 megawatts (MW) of disclosed projects in construction and development. It aims to reach 4,600 MW within the next decade.

 These projects include the 159-MW peak (MWp) Laoag Solar Power Project in Aguilar, Pangasinan; the 17-MW Binary Geothermal Power Project in Tiwi, Albay; the 173-MWp Solar Power Project in Calatrava, Negros Occidental; the 45-MWp Solar Plant in Armenia, Tarlac; and the 212-MWp Solar Power Project in Olongapo, Zambales.

 AboitizPower also aims to commence work on various RE projects this year such as the 89-MWp solar project in San Manuel, Pangasinan, and a 50-MW wind plant in Camarines Sur.

 For the holding company, AEV will use P40 billion of its capex budget for the acquisition of domestic bottler of Coca-Cola products, Coca Cola Beverages Philippines, Inc. (CCBPI).

 The joint acquisition involving AEV and Coca-Cola Europacific Partners Plc. (CCEP) is valued at $1.8 billion. The deal was completed on Feb. 23.

 AEV has 40% stake in CCBPI, while the remaining 60% stake is held by CCEP.

 Meanwhile, infrastructure unit AIC targets to explore new projects and synergies within the Aboitiz group.

 Some of AIC’s projects in the pipeline include the upcoming groundbreaking of its TARI Estate development in Tarlac, and the ramping up of production for the Davao City Bulk Water Supply Project.

 Other plans include enhancing the Mactan-Cebu International Airport, improving nationwide digital connectivity, and doing major maintenance works and purchasing of critical spares under AIC’s cement business led by Republic Cement.

 For the food business, the capex budget will be used for the agribusiness expansion projects of Pilmico and Gold Coin Group. These projects include the ongoing Yunnan feedmill in China, as well as the Long-An feedmill in Vietnam, both of which are expected to be finished in the second quarter.

 Yunnan Mill will be capable of producing up to 150,000 metric tons (MT), while Long-An feedmill will have a production capacity of 200,000 MT with a potential to expand to 300,000 MT.

 The group said the capex budget will also be used to improve its meats business by repopulating breeder farms, developing channels to bring up plant utilization of its Tarlac MeatMasters meat-cutting facility, and reinforcing its meats organization.

 For the real estate business, AboitizLand will use the capex budget to support ongoing projects such as the planned launch of the second building of The Strides at LIMA. The company aims to focus on harvesting its existing land bank and maximizing the value of various real estate holdings across different Aboitiz business units including the economic estates.

 For the banking business, UnionBank’s capex budget will be used for investments in technology refresh, cybersecurity, and system integration.

 “By the end of March 2024, Union Bank is set to complete the integration of Citibank’s consumer banking business in the country that it acquired in 2022,” the group said.

 “The deal included an asset and liability transfer, the sale of shares in Citicorp Financial Services & Insurance Brokerage Philippines, Inc., and real estate shares in Citibank Square building in Quezon City,” it added.

 On Thursday, AEV shares rose by 1.08% or 50 centavos to P47 per share. AboitizPower stocks gained by 0.14% or five centavos to P36.90 apiece. UnionBank shares were unchanged at P43 each. — Revin Mikhael D. Ochave

Cultivating diverse grounds for economic growth

PEZA officials have joined Naga City Mayor Nelson Legacion and the City Council members and Enjoy Realty and Development Corp. in the inauguration of the Naga City Industrial Park (NCIP), the first industrial economic zone in Bicol. — Photo from facebook.com/PEZAPH

The Philippine Economic Zone Authority (PEZA) is a government agency in the country, attached to the Department of Trade and Industry (DTI), that is responsible in promoting investments, extending assistance, and facilitating business operations within export-oriented manufacturing and service sectors.

PEZA was subsequently created under the Special Economic Zone Act of 1995, also known as Republic Act No. 7916, to oversee and administer the Special Economic Zones (SEZs) in the country.

Over the years, PEZA has expanded its reach, overseeing 419 fully operating economic zones in various key locations like Metro Manila, Cebu, Davao, Subic, and Clark.

In 2023, PEZA Director-General Tereso O. Panga said the agency has been experiencing a surge in investment approval, with P140.89 billion.

PEZA’s approved investments as of Nov. 16 were 147% higher than the same period the previous year, reflecting a strong investment climate in the country. According to the director general, the growth is a welcome sign for the Philippine economy after being hit hard by the COVID-19 pandemic.

In addition, the agency has pre-qualified 25 big-ticket projects from July 2022 to November 2023, which are estimated to generate P2.21 billion in investments, $1.5 billion in exports, and 16,414 direct jobs.

Besides, the current administration has approved 11 economic zones last year under PEZA, with a total investment of P3.5 billion. Three ecozones are waiting for Presidential Proclamation, which will bring in a total investment of P654.43 million.

The increase in investment approval is due in part to PEZA’s efforts to streamline processes and make it easier for investors to set up shop in the country. The agency has also been working closely with local government units to identify potential investment areas and provide support for investors.

This year, PEZA aims to acquire a target range of P202 billion to P250 billion for 2024, representing a 15% increase from the previous year’s approved investments. This is in line with the agency’s commitment to a more aggressive approach in attracting investors and creating a conducive business environment that supports growth.

Last January alone, the authority has approved 12 projects, amounting to P2.21 billion in investment. These projects cover various sectors, reflecting a diversified portfolio that contributes to the country’s economic development.

According to PEZA, the diversification of investments across various sectors is also a positive development, as it spreads the benefits of economic growth and development across different industries. This approach can help to create a more resilient and sustainable economy, as it reduces the country’s reliance on a single sector or industry.

In a recent board meeting last March 15, the agency has reported an increase in investment approvals for the first quarter of 2024. According to Mr. Panga, the agency approved 50 new and expansion projects worth P14.95 billion, 19.25% higher than the investments approved during the same period last year. These projects are expected to bring in US$616.59 million in exports and create 11,558 jobs.

Diverse sectors such as export manufacturing, information technology and business process management (IT-BPM), logistics, facilities, and ecozone development are set to benefit from these investments, with an anticipated influx of US$616.59 million in exports and the creation of 11,558 employment opportunities.

The projects are mainly in Quezon, Taguig, and Makati cities, CALABARZON, Bataan, Pampanga, Cebu, Albay, and Cagayan De Oro, with top investments coming from Cayman Islands, Hong Kong, Singapore, the Philippines, and Japan.

“PEZA is more than encouraged to sustain its growth momentum this year and onwards given the very positive investment climate statement recently issued by the US International Trade Administration and Bloomberg International, saying that business environment is notably better particularly within the PEZA special economic zones and that PEZA is a unique factor for the Philippines in terms of FDI attraction,” Mr. Panga said in a statement.

Driving global businesses and partnerships

The agency’s success is attributed to several key factors, including having a good law implemented correctly, partnerships with the private sector, effective leadership, and strong national support.

According to PEZA, these elements contribute to the efficiency in the cost of doing business and the ease of doing business within the special economic zones, ultimately leading to economic growth, such as job creation, livelihood opportunities, and income generation for Filipinos nationwide.

The recently concluded high-level trade mission sent by the United States President Joseph “Joe” R. Biden to the Philippines has marked the start of a reinvigorated relationship between the US and the Philippines. Simultaneously, PEZA is positioning itself as a hub for US investments that will be a bridge between the Association of Southeast Asian Nations (ASEAN) and the Indo-Pacific.

The United States is the second-largest foreign investor in the ecozones, accounting for 355 companies in PEZA. US investments have contributed P404.368 billion of investments, US$10.352 billion exports, and 368,511 direct jobs as of date.

In addition, the agency has been partnering with financial institutions such as the Sumitomo Mitsui Banking Corp. (SMBC) and the Rizal Commercial Banking Corp. (RCBC) to attract more Japanese investments. To date, there are 807 Japanese companies located in PEZA zones, with a total investment of P797.83 billion, making them the top source of foreign investments.

The agency is also focusing on streamlining processes for ease of doing business and fostering global value chains aligned with the ASEAN and global partners.

Looking ahead, PEZA will be conducting a follow-through on the pledges obtained by the Philippines during the President’s official state visits and likewise attract the untapped strategic sectors that will be vital in the country’s economic growth and development. — Mhicole A. Moral

Philippines’ Q4 bond market growth slows

BW FILE PHOTO

THE PHILIPPINE bond market’s growth slowed in the fourth quarter of 2023 due to contractions in central bank and corporate securities amid large debt maturities, as well as a decline in issuances.

Outstanding local currency (LCY) bonds grew by 1% quarter on quarter (q-o-q) to $217 billion or approximately P12.14 trillion in the October-to-December period, slower than the 1.8% expansion seen in the third quarter, the Asian Development Bank’s (ADB) ​​Asia Bond Monitor report for March 2024 showed.

The Philippine bond market’s growth was the second slowest among eight economies in Emerging East Asia that posted quarter-on quarter expansion, beating only Hong Kong’s 0.3%. Indonesia and China’s bond markets posted the fastest growth at 2.7%, better than the 2.5% growth in outstanding LCY bonds in the entire Emerging East Asia region, while Thailand’s and Vietnam’s markets contracted by 0.5% and 0.4%, respectively.

Year on year, the Philippine bond market grew by 7.4%.

Broken down, outstanding government and Treasury bonds grew by 2.1% to $178 billion in the fourth quarter, faster than the 0.3% expansion in the previous three-month period and making up 82.1% of the total debt stock at end-2023.

“Despite a contraction in issuance, government bonds grew due to a low volume of maturities during the quarter,” the ADB noted.

Meanwhile, outstanding central bank securities declined by 6.2% quarter on quarter to $11 billion as maturities exceeded total issuances. These comprised 5.3% of the period’s total.

Corporate bonds also contracted by 2.6% to $27 billion or P1.5 trillion amid a large number of bond maturities. Still, these made up 12.6% of the Philippines’ total LCY debt stock in the period, with 31.6% coming from the property sector.

Meanwhile, LCY bond issuances in the Philippines contracted by 4.4% quarter on quarter but rose by 5.5% year on year to $41 billion at end-December, the ADB said.

“Issuance of Treasury and other government bonds contracted 26.2% q-o-q in Q4 2023, as the government reduced borrowing by 73% to P60 billion in December amid a shrinking budget deficit that eased pressure on the government’s debt financing,” it said.

Meanwhile, issuances of central bank securities grew by 0.9% to $32 billion in the fourth quarter as the regulator siphoned off excess liquidity to help bring elevated inflation down.

Corporate bond issuance likewise jumped by 85.5% in the quarter as it came from “a relatively low base” in the previous quarter.

“However, total LCY corporate bond issuance in 2023 only reached P205.5 billion, which was 58.6% lower than in 2022 amid the uncertain environment triggered by the aggressive rate hikes of the Bangko Sentral ng Pilipinas beginning in May 2022,” the ADB said.

“Consequently, only five firms tapped the bond market for funding during the quarter, with the largest issuance coming from the Bank of the Philippine Islands whose debt sales amounted to P36.6 billion,” it added.

The multilateral lender said the emerging East Asian bond market grew by 2.5% quarter on quarter to $25.182 trillion as of December, mostly driven by government bonds. 

“Outstanding government bonds rose 3.9% q-o-q in Q4 2023, despite reduced issuance, due to a low volume of maturities in most regional markets. Government bonds accounted for 61.2% of total LCY bonds outstanding at the end of December,” it said.

Year on year, the regional market expanded by 9.2%.

“The region’s financial conditions were buoyed by robust economic growth, the expected ending of monetary tightening, and continued disinflation trends. At the same time, the increased likelihood of a delay in monetary easing and a strong US economic performance supported the US dollar, leading to a gross-domestic-product-weighted average depreciation of 1% for regional currencies versus the dollar. Most regional short-term bond yields also declined during the review period, but long-term bond yields rose slightly, tracking movements in advanced economies,” the ADB said.

“Risks to regional financial conditions remain tilted to the downside, largely due to uncertainties over the timing of US monetary policy easing. Possible disruptions to disinflationary momentum and spillover effects from the economic slowdown and deflation in the PRC (People’s Republic of China) could heighten the risk outlook,” it added. — A.M.C. Sy

AC Industrials eyes more opportunities with Bosch Philippines

AYALA CORP.’S AC Industrials has partnered with the Philippine unit of Bosch, a German multinational engineering and technology company, to explore new business opportunities in various sectors such as energy, mobility, and manufacturing.

 AC Industrials recently signed a memorandum of understanding with Bosch Philippines to explore potential business activities in various industries, including mobility solutions, manufacturing, energy, and healthcare, among others, the Ayala-led company said in a statement on Thursday.

 “As we see the electric vehicle (EV) transformation happen in the country, we’re really excited to explore more ways to continue working with our partners as well as sharing expertise and innovative practices,” AC Industrials Co-Chief Executive Officer (CEO) Jaime Alfonso Zobel de Ayala said.

 Mr. Zobel, who is also the CEO of Ayala Corp.’s mobility arm ACMobility, said the partnership with Bosch Philippines helps ACMobility’s goal of building the first and largest EV platform in the country.

 In 2023, ACMobility forged a partnership with Bosch to incorporate integrated vehicle technology in its after-sales operations.

 Under the partnership, Bosch Philippines will offer mechanical repairs to intricate electronics, engine systems, safety features, comfort upgrades, transmission expertise, as well as other services and diagnostics.

 ACMobility and Bosch are aiming to open 20 new outlets in the country this year, with plans to expand to up to 60 outlets over the next five years.

 AC Industrials invests and operates Ayala’s businesses in industrial technology. It has three major business lines consisting of global manufacturing, enabling technologies, and automotive distribution and retail.

 On Thursday, Ayala Corp. shares dropped by 0.15% or P1 to P649.50 apiece. — Revin Mikhael D. Ochave

BPI to divest from GoTyme Bank

GOTYME.COM.PH

BANK of the Philippine Islands (BPI) will divest from digital lender GoTyme Bank as it plans to sell all the shares it gained from its merger with Robinsons Bank Corp. (RBC).

The bank will sell 752,056,290 common shares in GoTyme Bank Corp. at P1.20 per share or P902.47 million in total, it said in a disclosure to the local bourse on Thursday.

The sale was approved by the BPI’s board of directors in a meeting on March 20 and is subject to Bangko Sentral ng Pilipinas (BSP) approval.

“We’re divesting because we felt there was insufficient alignment in terms of collaboration,” BPI Chief Finance Officer and Chief Sustainability Officer Eric Roberto M. Luchangco said in a Viber message.

BPI took over RBC’s 20% stake in GoTyme Bank after their merger was completed on Jan. 1.

Broken down, 744,099,587 common shares in the digital lender will be sold to GoTyme Financial Pte. Ltd. and 7,956,703 common shares will go to Giga Investment Holdings Pte. Ltd., BPI said.

Giga Investment Holdings Pte. Ltd. is based in Singapore and is a minority investor in GoTyme Bank, according to GoTyme Bank President and Chief Executive Officer Nathaniel D. Clarke.

GoTyme Bank said in a separate statement that the board of directors of Gokongwei-led JG Summit Capital Services Corp. and Tyme Group has likewise approved plans to buy out BPI’s minority stake in the digital lender.

“We believe that the JG Summit Group re-establishing itself as the largest shareholder of GoTyme Bank puts us in an even stronger position on our journey to become the number one bank in the Philippines,” Mr. Clarke said.

“GoTyme Bank’s performance since its commercial launch in late 2022 has exceeded our expectations and increased our confidence that it will drive a significant improvement to how customers experience financial services in the Philippines. Along with our partner Tyme Group, the JG Summit Group will continue to provide the required support and investment to make GoTyme a game changer in the Philippine market,” JG Summit Holdings, Inc. President and CEO Lance Y. Gokongwei added.

GoTyme Bank is a partnership between the Gokongwei and Tyme groups. It is one of the six digital banks licensed by the BSP to operate in the country.

The online lender began commercial operations in October 2022 and is targeting to grow its customer base to 5 million by the end of this year from about 3 million currently. It also expects to turn a profit within the next three years.

Meanwhile, BPI’s attributable net income rose by 61.13% year on year to P54.82 billion in 2023. Its shares went up by 70 centavos or 0.57% to close at P122.50 apiece on Thursday. — AMCS

Unlocking opportunities through PEZA accreditation

Photo from Freepik/pikisuperstar

Scattered around the archipelago are more than 400 economic zones in selected areas with highly developed infrastructure and an abundant supply of resources needed for daily operations. Enterprises ready to take advantage of the country’s massive labor pool and locations are keen to establish their businesses in these areas facilitated by the Philippine Economic Zone Authority (PEZA).

PEZA ecozones are thriving regions in the country focused on varying sectors from the manufacturing, information technology, tourism, agro-industrial, and medical tourism industries. However, to establish a business in one of these special districts, businesses must navigate a multifaceted accreditation process by PEZA, encompassing application, evaluation, and compliance.

To earn PEZA accreditation, local and foreign businesses can apply through their PEZA Electronic Application Registration System (eARS) as required by the agency under Memorandum Circular (MC) No. 2021-47. According to the PEZA website, only a filled-out application form is needed for evaluation. However, foreign enterprises are mandated under Section 4, Rule 6 of the CREATE Law’s Implementing Rules and Regulations to submit basic documents such as a Department of Trade and Industry registration, Bureau of Internal Revenue’s Certificate of Registration, and general company information.

The approval for a company’s PEZA accreditation is usually discussed during the government agency’s board meetings that occur on the second and fourth weeks of each month. Generally, if a company files its application three days before a board meeting, its application will be included in the agenda for approval.

Obtaining PEZA accreditation opens the doors to several incentives and benefits tailored to strengthen the country’s economy and enhance the competitiveness of businesses within their specific economic zones.

The primary advantage of establishing a presence inside a PEZA Economic Zone is the streamlining of what usually are slow bureaucratic processes outside of these areas. Businesses operating in these designated areas enjoy an Ease-of-Doing-Business initiative which includes a One-Stop-Shop; Non-Stop-Shop; No Red-Tape, Only Red-Carpet Treatment for Investors; and No Graft and Corruption, providing investors with a seamless experience.

PEZA-accredited businesses also enjoy a conducive operating environment within meticulously planned economic zones, complete with state-of-the-art infrastructure, reliable utilities, and robust security measures. This not only augments operational efficiency but also instills investor confidence, attracting both domestic and foreign capital.

Registered businesses enjoy both fiscal and non-fiscal incentives through their PEZA accreditation as well. Depending on their location and industry, accredited enterprises can avail of benefits ranging from tax exemptions to simplified procedures.

Fiscal incentives for export-oriented enterprises include eligibility for an Income Tax Holiday granted for a duration ranging from four to seven years. They can also choose between taking advantage of a Special Corporate Income Tax (SCIT) rate of 5% and opting for Enhanced Deductions for 10 years.

Meanwhile, domestic market enterprises accredited by PEZA enjoy similar fiscal incentives. They are entitled to an Income Tax Holiday spanning four to seven years as well, granting them the opportunity to expand their operations within the local market. Furthermore, these enterprises also have the opportunity to avail of Enhanced Deductions for a still favorable, albeit shorter, five years.

These fiscal incentives provide significant tax advantages, allowing these businesses to reinvest their earnings and bolster their position in the global market.

The first of the non-fiscal incentives include duty-free and tax-exempt importation privileges for capital equipment, raw materials, spare parts, and accessories, thereby reducing operational costs. Registered enterprises also receive a domestic sale allowance of up to 30% of all sales, promoting local market engagement alongside their export-oriented activities.

Additionally, PEZA grants Value-Added Tax (VAT) exemptions on importation and zero-rating on local purchases for goods and other invoices directly relevant to their registered activity, such as telecommunications, power, and water bills, easing financial burdens. Businesses availing of the 5% SCIT incentive are also exempted from national and local government taxes and fees throughout their eligibility.

Moreover, PEZA permits the employment of foreign nationals and offers long-term land lease options to registered enterprises for up to 75 years, ensuring stability and flexibility in business operations. Additionally, foreign nationals employed by PEZA-registered companies are eligible for a two-year PEZA Visa, along with their dependents.

These non-fiscal incentives show the country’s hospitality and commitment to not only fostering a conducive environment for business growth and investment but also facilitating the integration of foreign investors into the local economy.

In the middle of the Philippines’ developing economy, PEZA accreditation emerges as one of its most potent catalysts for growth, offering businesses a competitive edge and a pathway to sustainable and streamlined success. By taking advantage of the opportunities from the PEZA accreditation, enterprises can unlock their full potential, driving innovation, creating employment opportunities, and contributing to Philippine economic development. — Jomarc Angelo M. Corpuz

Arthaland board OK’s P45-M share subscription to Bhavya Properties

ARTHALAND CORP.’S board has approved a P45-million share subscription to Bhavya Properties, Inc. to finance the latter’s capital requirement for an ongoing condominium project, the listed property developer said on Thursday.

 The board authorized the subscription to 450,000 preferred shares of Bhavya Properties at P100 apiece, the company said in a regulatory filing.

Bhavya Properties is 60% owned by Arthaland, while the remaining 40% is held by Singapore-based Narra Investment, which is managed by investment management company Arch Capital Management Co. Ltd.

The additional equity will be used to fund the construction of the 31-storey Eluria residential condo project in Legazpi Village, Makati City.

 “Bhavya Properties will leverage on the additional equity to fund Eluria’s working capital requirement until its scheduled project completion in 2025, while ensuring compliance with all its financial covenants,” Arthaland said.

 “Preferred shares are voting and have such features as the Bhavya board of directors prescribe, but in no case such shares shall be cumulative or redeemable at the option of the holder,” it added.

 Arthaland also said that Narra Investment Properties Pte. Ltd. will have a P30 million share subscription to Bhavya Properties “to the extent of 300,000 (preferred shares) at the price of P100 per share.”

 Eluria is being built by Arthaland in partnership with Arch Capital.

 Arthaland is expecting to generate P6 billion in sales value from Eluria. The property will feature 37 units designed by Sydney-based architecture and interior design firm FMB Architects.

 Eluria’s amenities include a heated saltwater leisure and lap pool, an indoor children’s playroom, a function hall, a potager garden at the roof deck, and chauffeur shuttle services to select nearby destinations.

 On Thursday, Arthaland shares were unchanged at 50 centavos per share. — Revin Mikhael D. Ochave

Basic deposit accounts grew to 23.6 million at end-Sept.

BW FILE PHOTO

THE NUMBER of basic deposit accounts (BDAs) in the country jumped to 23.6 million as of end- September 2023, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

Data from the central bank released via a social media post on Tuesday showed that the number of BDAs nearly tripled (175%) from the 8.6 million accounts recorded as of the third quarter of 2022.

The total value of BDA deposits also surged by 624% to P35.6 billion at end-September 2023 from the P4.9 billion posted a year earlier.

The BDA was introduced in 2018 and is meant to promote financial inclusion and address the needs of the unbanked and underserved Filipinos.

This type of account has a low opening amount of P100 or less, no maintaining balance requirement, no dormancy charges, a maximum balance of P50,000, and requires only simple identification documents.

These accounts can also earn interest of up to 4% per annum in select banks.

In 2022, the BSP directed lenders to limit BDAs to one per depositor.

As of end-September, there were a total of 156 banks offering BDAs.

The central bank wanted to bring at least 70% of Filipino adults into the formal financial system by end-2023. Officials earlier said they were confident the target was met amid the rising adoption of e-wallets and online payments.

At end-2022, the share of Filipinos with bank accounts reached 65% of the adult population. — L.M.J.C. Jocson

Is Dune an example of a white savior narrative – or a critique of it?

SCIENCE-FICTION film as a genre allows us to encounter hypothetical worlds in which to understand our own.

These films often present utopian and dystopian worlds, exploring themes of nationalism and heroism. They often include a strong, white, male lead who heroically rescues the poor and the good from the stranglehold of authoritarianism. Therefore, historically, science fiction has had mass appeal for political zealots from the far left to the alt-right.

In Denis Villeneuve’s Dune: Part Two (2024), however, science fiction becomes a genre to subvert colonial and patriarchal narratives of the white, masculine savior.

WHAT IS A ‘WHITE SAVIOR’?
Elements of a white savior narrative are pervasive in Villeneuve’s first Dune film (2021), which hints at — but doesn’t commit to — subverting this narrative. But before we get into the details, it helps to understand what the “white savior complex” is.

This is, to put it simply, the idea that a white person or people are needed to help or “save” people of color from their circumstances.

White saviorism, also called the white “messiah complex,” is born of a legacy of colonialism, and often performed in a paternalistic or self-serving way. For decades, we’ve seen this narrative play out in science-fiction films, from the Star Wars franchise to Avatar (2009).

THE SETUP
Signs of white saviorism in the first Dune film are recognizable in the male protagonist, Paul Atreides, played by Timothée Chalamet. Paul is destined for messianic status in both films, which have so far stayed close to the plot line of Frank Herbert’s book series of the same name.

However, Chalamet’s casting as a white savior is complicated by his physicality. In both demeanor and appearance, Paul Atreides contradicts the traditional masculinity of science-fiction heroes, with his fine features, elfin stature, and mummy’s boy status.

The first film follows the House of Atreides as it travels to the distant planet, Arrakis, to take charge of the scarce and precious spice production which their future wealth, power and survival depend on.

The Indigenous inhabitants of Arrakis, the Fremen, are portrayed as being deeply connected to the desert environment.

They find innovative ways to survive in the extreme weather conditions yet are considered savage by the aristocratic characters in the film. They’re even referred to as “rats” by the film’s villainous, luminously white, oil-bathing leader, Baron Vladimir Harkonnen.

This reflects a common criticism of the white savior complex: it perpetuates stereotypes about the Indigenous people being “helped,” while ignoring their strengths and agency.

DUNE AS A COLONIAL CRITIQUE
It’s tempting to consider Dune’s narrative, settings, and costume design as an appropriation of Islamic and Arab culture. For example, there are scenes where the Fremen are dressed in Bedouin clothing, worshipping behind an Islamic architectural screen in ways that are reminiscent of Muslim prayers at a mosque.

The cinematography and light also appear to refer to 19th-century paintings by Jean-Léon Gérôme, much of which are of Islamic subjects. Such appropriations aren’t unique to Dune; the landscape of Arrakis itself is reminiscent of Tatooine, the desert planet where some of the action takes place in the original Star Wars trilogy.

While the intention may be to create otherworldly settings, the portrayal of a desert land often relies on stereotypical tropes of “exoticness” associated with the Middle East, as well as the use of Arabic-sounding names for characters and locations.

Nonetheless, there is a surprising critique of colonialist fantasy in Dune: Part Two, which primarily takes place through changes between the script and the book. These changes enable us to see the white savior from the perspective of Chani (played by Zendaya), Paul’s Fremen love interest.

In the book, Chani is a supporting character who is merely there to encourage and promote Paul’s ascendancy. She is also a white person who is bound to Paul through having his children. In the film, Chani’s character has been adapted to provide a critical counterpoint.

This reveals Villeneuve’s directorial intention in reframing the book to account for the postcolonial and feminist perspectives of the 21st century. In many ways, Dune: Part Two can be read through the post-colonial perspective of late Palestinian-American writer Edward Said.

In his 1978 book Orientalism, a founding text of post-colonialism, Said argued against the West’s distorted image of the East or the Orient as exotic, backward, uncivilized and sometimes dangerous.

He expressed that Western scholars, artists and politicians use Orientalism as a pervasive framework to depict the East as the “Other.” This reinforces a binary opposition between the West as rational, developed, and superior and the East as irrational, undeveloped, and inferior.

While we see this play out in both Dune films’ visual tropes, a more nuanced message is delivered through the character of Chani.

PAUL THROUGH CHANI’S EYES
Chani is a woman of color who is skeptical of Paul’s mother’s intentions for him as leader. She also refuses to believe in the prophecy of a savior, as is held by some Fremen.

Ultimately, the film’s postcolonial and feminist leanings are made explicit in the final scenes. Through careful cinematography and editing, the audience is encouraged to see, from Chani’s perspective, the ways in which Paul is being manipulated.

When Paul avenges the death of his father and takes control of the empire, promising to marry the empress — despite having declared his enduring love for Chani — we encounter this betrayal from Chani’s standpoint.

The scenes tend to switch back to her disappointment as the witness. As viewers, we are not encouraged to celebrate Paul’s rise to messiah. Rather, we mourn the loss of his moral conscience with Chani. And this point is affirmed when we see Chani surfing the worm alone in the final scenes.

As a woman of color who is both independent, powerful, and resistant to the white savior narrative, Chani activates the idea of looking at cinema from a non-white vantage point. She leads us to be critical of both colonial and patriarchal narratives.

Where will this lead? We will have to find out in the next film.

 

Cherine Fahd is an associate professor for Visual Communication at the University of Technology Sydney. Sara Oscar is a senior lecturer for Visual Communication at the School of Design of the University of Technology Sydney.