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PHL competitiveness still lags in Asia-Pacific

The Philippine flag is raised at the Rizal Monument in Manila, June 11, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Justine Irish D. Tabile, Reporter

THE PHILIPPINES saw its ranking in an annual global competitiveness report remain unchanged and continued to be one of the laggards in the Asia-Pacific region amid a drop in business efficiency.

In its 2024 World Competitiveness Ranking (WCR) by the Switzerland-based International Institute for Management Development (IMD), the Philippines ranked 52nd out of 67 economies, unchanged from last year.

It also marked the seventh year that the Philippines remained in 13th place out of the 14 Asia-Pacific economies included in the report.

Philippines remains Asia's laggard in competitiveness ranking

Singapore topped this year’s list, followed by Switzerland, Denmark, Ireland and Hong Kong.

This year, the index expanded its scope to include Ghana, Nigeria and Puerto Rico. In 2023, there were only 64 economies covered by the index.

IMD ranked the economies using 336 indicators spread across four competitiveness factors: economic performance, government efficiency, business efficiency, and infrastructure.

José Caballero, senior economist at the IMD World Competitiveness Center, said that the factors that have diminished the Philippines’ competitiveness this year are related to government and business efficiency.

Mr. Caballero said that the country saw a decline in measures of business legislation such as the protection of foreign investors (65th), the transparency of public sector contracts (56th), the impact of state-owned enterprises (46th), and new business density (62nd).

Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for Competitiveness Executive Director Jamil Paolo S. Francisco said the Philippines remained in 52nd place despite a decline in two factors — business efficiency and infrastructure.

The Philippines fell three spots to 43rd on business efficiency this year from 40th in 2023. Significant declines were seen in labor market, finance, management practices, and attitudes and values.

“The drop in business efficiency is particularly worrisome because this was a factor that the Philippines performed relatively well at 10 years ago, and we have observed a steady decline in this factor since 2019,” Mr. Francisco said in an e-mailed statement.

For the infrastructure factor, the Philippines slipped three places to 61st in 2024 from 58th last year. This as challenges persist in basic infrastructure, technological infrastructure and education.

Mr. Francisco said that the country’s drop in the infrastructure factor was a concern, as this has been the Philippines’ weakest area for a very long time.

“This is also worrisome because this means we are really lagging behind in terms of providing the physical, human, technological, and social infrastructure needed by private enterprises to generate employment and create business value,” he added.

The Philippines maintained its 40th rank on economic performance, while it climbed three spots to 49th on government efficiency.

Philippine Chamber of Commerce and Industry Chairman George T. Barcelon said the country should address basic and transport infrastructure in order to be competitive.

“When you want to be competitive, especially in the industry and service side, you need to have some of the basic infrastructure, such as availability of quality and affordable power,” Mr. Barcelon said in a phone interview.

“The other one is the availability of mobility or connectivity like roads, seaports, airports, and main corridors for the agriculture sector, which we don’t have,” he added.

The government should also address the decline in the skills of the country’s workforce.

“We are not giving them the proper tools… The technology that’s required now for higher value-added jobs requires more, such as in information technology and in the fourth industrial revolution,” Mr. Barcelon said. “There are some shortcomings in that. But that can be easily addressed if we beef up more specific or targeted skill sets for certain industries.”

According to IMD, the Philippines was less competitive in the areas of business legislation (60th), basic infrastructure (62nd), and education (63rd).

“In 2024, the Philippines faces significant challenges, including revitalizing economic dynamism and growth trajectory, managing inflation expectations, building sustainable physical, social, and technological infrastructure to improve productivity and reduce vulnerabilities, and addressing territorial disputes in the West Philippine Sea to mitigate economic disruptions,” the AIM center said.

Meanwhile, the Management Association of the Philippines (MAP) views the country’s unchanged competitiveness ranking as both good news and a challenge.

“Infrastructure is a major consideration, so we all understand our rank, knowing the need to improve our infrastructure, which the administration of President Marcos is working on,” said MAP President Rene D. Almendras in a Viber message.

“The other consideration is labor productivity, which is a function of the education and development of the Filipino workforce,” he added.

Meanwhile, the National Economic Development Authority (NEDA) and the Anti-Red Tape Authority (ARTA) are hopeful that the country will improve its ranking next year as the government ramps up its infrastructure projects.

“With the strict implementation of this Executive Order No. 59 as well as related government programs, we expect our ranking to improve next year,” ARTA Secretary Ernesto V. Perez said.

On Tuesday, ARTA launched the implementing guidelines of EO 59, which aim to streamline the permitting process for the government’s infrastructure flagship projects.

“Hopefully, with the full implementation of EO 59, we could notch a bit higher in the next round. In addition to permitting and processes, I think what is also included are right-of-way (ROW) issues,” said NEDA Undersecretary Joseph J. Capuno.

He said that these issues could be addressed by the ROW bill, which is one of the priority bills of Frederick D. Go, the special assistant to the President in charge of investment and economic affairs.

For Foundation for Economic Freedom President Calixto V. Chikiamco, the Philippines will be able to achieve a better ranking in the world competitiveness index if it removes protectionism, especially in relation to agricultural products.

“Protecting the agriculture sector signals no need to improve competitiveness and productivity,” said Mr. Chikiamco in a Viber message.

He added that the country must forge more bilateral free trade agreements, amend the Labor Code, improve education, and reduce bureaucratic regulations, especially in the grant of mining concessions.

According to IMD’s Mr. Caballero, economies that reach high levels of competitiveness have focused on strengthening their public and private institutions, entrepreneurship, and innovative capabilities.

For the Philippines, he said that the country must strengthen its education system to “facilitate the effectiveness of talent development,” as it will also ensure alignment between the country’s available talent and socioeconomic objectives.

In the report, the country ranked 55th in total public expenditure on education, 60th in the quality of primary education, and 63rd in secondary education in terms of pupil-teacher ratio.

“Furthermore, the Philippines’ performance in research and development is feeble,” he added, citing that the country ranked deficiently in all measures of expenditure and the total number of researchers and personnel.

BSP warns banks vs use of automated data-scraping tools

The central bank has warned financial institutions against the use of software robotics and other data-scraping tools in handling sensitive customer data. — IMAGO/WESTLIGHT VIA REUTERS CONNECT

THE BANGKO SENTRAL ng Pilipinas (BSP) has warned its supervised institutions against the use of robotic process automation (RPA) and other scraping methods in handling “sensitive” data.

In a memorandum, the BSP said the use of these technologies have “merits as an internal data collection automation tool” but can hurt the integrity of the financial system.

“The use of RPA and other data-scraping methods, specifically to collect personally identifiable information (PII) and use it in gaining access to financial accounts and/or facilitating financial transaction, is seen to pose significant risks that may undermine consumer trust in financial service providers and compromise the integrity of the financial system,” it said in a memorandum.

Also known as software robotics, RPA employs “intelligent automatic technologies” to perform tasks usually done by human workers such as filling in forms and extracting data.

Data scraping involves a computer program extracting data from a human-readable output.

The central bank said that BSP-supervised financial institutions (BSFIs) use customer data to drive competitive advantages and market opportunities.

“However, improper and/or unauthorized access and handling of customer data, particularly involving financial information, may expose BSFIs to customer complaints and data privacy concerns,” it added.

The BSP emphasized the need for responsible data handling in the financial system.

“The proper handling and protection of PII and other sensitive data serve as cornerstones of customer privacy and represent critical components in the prevention of fraud, identity theft, and other financial crimes,” it said.

UK cybersecurity firm NCC Group earlier said that the finance and industrial sectors in the Philippines are among the top targets for cyberattacks in the country.

The BSP said financial institutions, as personal information controllers of their customers’ data, are responsible for compliance with the Data Privacy Act of 2012 (DPA).

It also noted that BSFIs must adhere to requirements set by the National Privacy Commission.

“These requirements may pertain to the right to data portability, the procedures for obtaining and managing consent, data access methods, and data-sharing arrangements.”

The BSP called on its supervised institutions to “employ robust risk management systems and implement adequate safeguards in handling PII and other sensitive data, including those covered under outsourcing arrangements.”

“These include ensuring compliance with relevant laws and pertinent BSP regulations on financial consumer protection, data privacy and data protection, anti-money laundering and combating the financing of terrorism (AML/CFT), cybersecurity, outsourcing, and open finance, among others.”

Moody’s data showed that from 2018 to 2023, the Philippines was among the top five countries in Southeast Asia with money laundering activity events added over the five-year period.

From 2022 to 2023, the number of money laundering events in the country rose by 45%.

“BSFIs should also regularly review and update their policies and practices to reflect the evolving data governance standards and requirements,” the BSP added.

The central bank has been finding ways to improve the banking industry’s cyber resilience against digital attacks, as well as enhancing its monitoring capabilities.

Sought for comment, Economist Intelligence Unit Industry Manager and Lead Analyst for Financial Services Swarup Gupta said that the BSP memorandum is timely given the rise in the adoption of these practices by financial service companies. 

“The comments highlight the current lack of public scrutiny as to how organizations collect and preserve data, especially markers of personally identifiable information,” he said in an e-mail.

“Adherence to international standards, such as the ISO norms, regarding the collection and storage of data by corporations are the need of the hour and regulatory bodies need to hold organizations responsible to these norms,” he added.

Mr. Gupta said that the central bank should release specific rules and regulations on these kinds of practices.

“We should see the emergence of a data ombudsman, which adjudicates on data related issues, within fast digitalizing economies across the ASEAN (Association of Southeast Asian Nations) region as well as the passage of laws which define individual data rights in the near future.” — Luisa Maria Jacinta C. Jocson

Filipino students among the worst in creative thinking — new OECD study

Students attend a class at the Commonwealth High School, in Quezon City, Metro Manila, April 18, 2024. — REUTERS

FIFTEEN-YEAR-OLD students in the Philippines are among the worst in creative thinking, according to the latest study by the Organization for Economic Cooperation and Development (OECD).

The Philippines ranked 63rd out of 64 countries in a 2022 global assessment by the OECD that ranked 15-year-old students worldwide in producing and evaluating original ideas that would translate into effective solutions.

In the 2022 Programme on International Student Assessment (PISA) Volume III published late on Tuesday, the Philippines’ mean score in creative thinking score stood at 14, which was way below the global average of 33.

The Philippines’ score was only better than Albania which had a score of 13.

Singapore topped the list with a score of 41, followed by South Korea and Canada which both scored 38.

The rest of the top 10 included Australia (37),  New Zealand (36), Estonia (36), Finland (36), Denmark (35), Latvia (35) and Belgium (35).

The OECD study was conducted in 2022 with about 690,000 15-year-old students from 66 countries.

“Many countries and economies score at similar levels in creative thinking. Small differences that are not statistically significant or practically meaningful should not be considered,” the OECD said in the assessment.

The OECD said one in four students in the Philippines, Morocco and Saudi Arabia said they found learning new things boring.

Students from the Philippines also did not provide a response for over a fifth of all items in written problem-solving tasks in the assessment.

OECD said that less than three for every 100 students in the top five performing countries of Singapore, South Korea, Canada, Australia and New Zealand performed around or below the average of the weakest performing countries or the Dominican Republic, Uzbekistan, the Philippines and Albania.

In PISA’s 2022 assessment for student performance in mathematics, reading and science, Filipino students were among the world’s weakest in those subjects, ranking 77th out of 81 countries and performing worse than the global average in all categories.

“Beyond preparing students for the labor market, creative thinking in education contributes to students’ holistic development — it supports learning, problem solving and metacognitive skills through exploration and discovery, helping students to interpret information in personally meaningful ways,” the OECD said.

“Creative thinking helps prepare young people to adapt to a rapidly changing world that demands flexible and innovative workers.” — John Victor D. Ordoñez

SM Prime bolsters MSME growth and boom in the Philippines

SM Supermalls continues its commitment to empower and enrich the growth of local Micro, Small, and Medium Enterprises (MSMEs) by building a thriving ecosystem of entrepreneurship and innovation.

“MSMEs are our local partners in generating value across all the communities we operate in,” said Steven Tan, President of SM Supermalls. “With 99.59% of the local economy composed of MSMEs, the persistence and vibrancy of local trade as well as the generation of jobs on the micro, small, and medium scale hinges on their success.”

In line with this, SM Supermalls continues to implement various programs and plan opportunities for MSMEs to grow their customer base through the vast network of SM malls in the country. With 67% of its tenants being MSMEs, these programs empower entrepreneurs by providing them with accessible and affordable prime retail spaces in SM’s high-foot traffic malls, as well as helpful packages to support their growth.

Marketplace for Success

Various local products sold by SM for MSMEs’ purveyors

“Because SM has been an established brand for over three decades, perhaps people have forgotten that we started out as a small enterprise ourselves,” said Tan. “Our own experience emphasizes the value in supporting our MSMEs and has given us valuable insight we can use to further support this crucial sector in line with the government’s efforts.”

Last May, the Department of Trade and Industry (DTI) introduced the fourth iteration of the national MSME Development Plan geared to reduce operational costs and eliminate barriers for new entrepreneurs. Through the plan’s implementation, the DTI hopes to grow the number of registered MSMEs, improve their contribution to the larger local economy, and support continual job creation.

The “SM for MSMEs” program supports budding entrepreneurs in overcoming three key challenges they usually face — access to a diverse group of customers, the high cost of traditional operational requirements like rent, and competition with established brands for attention and patronage. Serving as a marketplace for entrepreneurs facing difficulties finding the right venue and market, SM aims to be the incubator of the country’s next big brands.

“SM for MSMEs offer scalable packages to businesses in the communities around SM malls — for as low as P500 per day, small-scale businesses can rent a booth in SM’s high-foot traffic venues during regular exhibits and special events. The program currently has 633 purveyors nationwide, providing an affordable and strategic platform for entrepreneurs to sell their products and reach the right market.

Other Programs of SM for MSMEs

SM initiated its “StartUp Package” in 2021 to assist MSMEs in opening their first brick-and-mortar stores. The package provides startup-friendly rental rates within SM malls along with the free usage of kiosks and carts. Marketing assistance is also provided through free exposure in SM online assets and ad spaces within the malls with valuable mentorship from its experts on operations and marketing. SM also offers financial assistance with BDO network bank. This program is currently running across five malls with 30 purveyors as of writing. Earlier this year, 44 StartUp Market purveyors successfully transitioned to SM tenants.

Supporting Farmers in our Rural Communities

The SM Sunday Market currently runs in 23 SM malls.

On top of these, SM helps support rural communities through opportunities for fair trade that also preserve its cultural heritage. The SM Sunday Market bazaar has been running since last year across 23 active and participating SM malls. Among its 135 purveyors are graduates of SM Foundation’s Kabalikat sa Kabuhayan program farmers who are local food and produce suppliers.

“Throughout SM’s decades of growth, we are familiar with the work and effort it takes to build a business from the ground up. Thus, with these programs SM aims to be a catalyst for the success of local MSMEs through support and tailored offers that further foster economic vitality and social well-being across all communities we operate in,” said Tan. “Because of the success we’ve been met with, not just on our own operations but with the programs and efforts we have initiated, we continue to pay it forward by supporting this crucial, underserved sector in the local economy.”

 

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Medical Doctors, Inc. to conduct virtual Annual Meeting of Stockholders on July 16

 

 

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How nature inspires multiple forms of art

RICO LASCANO'S Quietude series at Conrad Manila's Gallery C.

Ross Capili, Rico Lascano convey their sense of wonder

“WE always hope to bring something new to the art scene,” declared Nestor O. Jardin, curator of Conrad Manila’s “Of Art and Wine” series of art exhibits, now on its 30th iteration.

“I know the art styles of Ross Capili and Rico Lascano very well, so I put together a concept that would harmonize them. They are very different, but their communality is the subject matter: how to deal with nature.”

Mr. Capili’s complex mixed media designs depict the rhythm of rain and wind and the vibrant crescendo of colors in bloom. Meanwhile, Mr. Lascano’s minimalist paintings perceive nature as serene and tranquil, inviting viewers to reflect and ponder.

By staging “Interchange,” their ongoing exhibition at Conrad Manila, their contrasting styles converge to convey a sense of wonder inspired by nature. “This is actually my third stint here at Gallery C for the Of Art and Wine series. It’s an experience, putting up a show here, and I always feel that it’s an honor to do so,” said Mr. Capili in his opening speech.

At the launch on May 28, he detailed the amount of planning that went into presenting the two sets of work in a cohesive exhibit, from how they hung on the wall to the way their art was spaced from each other.

He added that appreciating nature is not the only thing one can get from their works, however.

“You can enjoy our paintings, sure. But I am also inviting you to look closely and be disturbed, especially with how we treat nature now,” Mr. Capili said.

His works New Earth Moon and New Earth Sun, for example, show an explosion of acrylic colors on canvas. The colorful brushstrokes of flowers, oceans, and mountains are centered by a stainless sphere — a different color for each work, some black and some gold.

Another take on the dynamism of nature is the Night Sky Tatoo series that depicts butterflies amid leaves, again centered by a silvery or golden orb.

“Nature is something you can’t ignore. You have to respect it,” said Mr. Capili.

For Mr. Lascano, it is best to conceive of nature through the lens of Zen Buddhism, a philosophy he was drawn to even in his early days as an art student.

“I gravitate towards minimalism. I aim for my works to be calming, so as much as possible I remove all unnecessary elements to arrive at a contemplative space,” he said.

His works Quietude I and Quietude II show this perfectly. Acrylic waves of white or blue are etched gently on paper, forming abstract images of the ocean or of mountains.

“It’s like three stages of emptying yourself. The world is chaotic. I want to remove all the stresses of life when I paint. That’s how I arrived at this work,” said Mr. Lascano.

“Of Art and Wine: Interchange” is on view at Gallery C of Conrad Manila until Aug. 3. — Brontë H. Lacsamana

Confounding family dynamics: VLF’s most cohesive set yet

THE VIRGIN LAB FEST (VLF) returns each year to showcase untried and untested one-act plays onstage. Now on its 19th year, the festival takes on narratives that deal with the complex layers of human experience.

This year’s theme is “Pintog,” meaning burst, signifying how VLF can now reap the bursting fruits of their labor. At the Tanghalang Ignacio Gimenez (the Cultural Center of the Philippines’ Blackbox Theater), avid festivalgoers pile in, looking forward to the new offerings this year.

“We want to thank you all for visiting this theater as always, to check out the boundless talent that VLF has to offer,” said co-festival director Marco Viaña at the technical dress rehearsals on June 9.

“Higit sa lahat, sana magiliw ang panonood niyo (Most of all, we hope you enjoy the show),” he said.

The curtain opened that night on the complex, family-centered Set B (the plays are grouped into five different sets). Titled Bingit, a word that translates to the brink, audiences were noticeably at the edge of their seats from tension and anticipation.

Sentenaryo by playwright Herlyn Alegre and director Ian Segarra sets the tone perfectly, following a family that fights over the centenarian birthday money of their dying patriarch.

Its strength is the comical take on what would happen were the old man to die before they receive the money. The shenanigans that ensue as the family pretend that he is still alive are an interesting “representation of the current milieu” that mistreats its senior citizens, according to Ms. Alegre.

Director Mr. Segarra said at the rehearsals that it is a physical comedy. “We were able to play with how the actors’ bodies interact with each other in the space of the house,” he explained.

Following the raucous laughter from the first play was the tension of Divine Family by playwright Dip Mariposque and director Roobak Valle. This one is set in a house where estranged family members must live under one roof during the pandemic.

Each of the sibling characters in the play gradually reveal their secrets, some humorous and some scandalous, truly bringing viewers to loud reactions as the family is forced to confront their realities.

“As a regular patron of VLF, I usually have a strong critical eye, but I had to give that up and simply enjoy writing this play,” Mr. Mariposque told BusinessWorld after the rehearsals. “It’s a relief to let the material breathe and be interpreted by the director, and now the audience.”

Personal relationships, dysfunctional dynamics, and siblings on the edge of their sanity made the play a toxic highlight of the set. Its theme, generational trauma, rang true and disturbed audiences well into the intermission.

Finally, Identité by playwright Jhudiel Clare Sosa and director Me-Ann Espinosa served as a powerful finish for the set. It centers on a traditional Filipino mother and her young, headstrong daughter learning to discover herself through her sexuality.

Like the other two, it generated a great number of laughs but delivered equally hard emotional punches. It’s a story of “women empowerment” and how simply having a choice can make or break a woman, according to Ms. Sosa.

“It’s a play that opens an important conversation,” she said at rehearsals.

Surely relatable for daughters who have complex relationships with their mothers, its strength lies in the extreme push-and-pull between the two leads regarding identity and perception — the comic twist best left unspoiled.

VLF 19’s Set B, “Bingit,” is perhaps the most cohesive set brought to VLF’s stage in its recent years. The energy sustained from one play to the next, each full of heart whether they tackle the treatment of senior citizens, the realities of generational trauma, or tough discussions around female empowerment.

Aside from this set of revisited plays seen by BusinessWorld, 12 other new one-act plays from both veteran and upcoming playwrights are being staged until June 30 at the CCP Blackbox Theater. Shows are at 2 p.m. and 8 p.m.

The other four sets are: Dilema (Set A), Pu-Tim (Set C), Di-Tiyak (Set D), and Sagad (Set E) — plus two sets of staged readings.

For more information, contact the CCP Box Office or visit the social media accounts of the CCP, Tanghalang Pilipino, The Writers’ Bloc, and Virgin Labfest. — Brontë H. Lacsamana

Bellwether Basel art fair gives lift to sluggish global market

COURTESY OF ART BASEL

ZURICH — Art dealers, collectors and gallery owners from around the world wrapped up several multi-million dollar deals in brisk trade at an annual art fair in the Swiss city of Basel last week, despite a slowdown in the global art market.

Deals at the fair — widely seen as a barometer of global art demand — included the $20-million purchase of a painting by 20th-century American artist Joan Mitchell on the opening day and the sale of a drawing by fellow abstract expressionist Arshile Gorky for $16 million.

The global art market shrank 4% to $65 billion last year, according to the 2024 UBS Global Art Market Report, and the value of sales in the latest New York auction season fell more than 20%.

Against that backdrop, organizers of the Basel fair said sales at the event had come as a relief to gallery owners.

“There’s an exhale collectively for many in the halls about where the market is,” said Noah Horowitz, chief executive of Art Basel, adding that buyers remained more sensitive to pricing than during boom years.

“Great art and ambitious art will … continue to sell,” he said. “But I think it’s a fool’s errand to try to crystal ball gaze with so many factors, economically, geopolitically … in the world right now.”

Many gallery owners said sales had exceeded their expectations.

Isabella Kairis Icoz, a partner at Lehmann Maupin, a gallery with branches in New York, Seoul, London, and Milan, said they had sold 15 works with collectors and museums on the first day.

“I came in slightly cautious … but Basel has been a true testament to its resilience,” Ms. Icoz said, adding that the gallery had seen particularly strong interest from European private collectors.

James Koch, partner at the Hauser & Wirth gallery which was showing works from the secondary market and pieces by contemporary artists, said he had seen a number of young and informed European collectors buying.

“Not only the ones with the larger budgets but also people starting to collect,” he said.

Two scenarios typically emerge in the art market in times of global economic and political uncertainty, said Clare McAndrew, author of the Art Market Report.

“Buyers can hold back, which they did last year, or they can start to anchor on safe works, which is what they might do this year,” she said. — Reuters

Fortune lists 38 Philippine firms in debut Southeast Asia 500

AYALALAND.COM.PH

FORTUNE magazine recognized 38 Philippine companies in its inaugural Fortune Southeast Asia 500 list for their contributions to the regional economy.

San Miguel Corp. (SMC) ranked ninth, followed by SM Investments Corp. (27th), Manila Electric Co. (34th), JG Summit Holdings, Inc. (55th), BDO Unibank, Inc. (57th), Aboitiz Equity Ventures, Inc. (59th), Ayala Corp. (70th), GT Capital Holdings, Inc. (74th), Jollibee Foods Corp. (86th), and Cosco Capital, Inc. (95th).

Fortune said the companies were ranked by total revenues for their latest available respective fiscal years ended on or before Dec. 31, 2023.

Other Philippine companies listed include PLDT Inc., Alliance Global Group, Inc., Robinsons Retail Holdings, Inc., Metropolitan Bank & Trust Co., Globe Telecom, Inc., Bank of the Philippine Islands, PAL Holdings, Inc., Lopez Holdings Corp., and International Container Terminal Services, Inc.

The list also named companies such as DMCI Holdings, Inc., LT Group, Inc., UnionBank of the Philippines, Filinvest Development Corp., Rizal Commercial Banking Corp., Monde Nissin Corp., China Banking Corp., Century Pacific Food, Inc., and Basic Energy Corp.

Fortune also cited Security Bank Corp., Synergy Grid & Development Philippines, Inc., Bloomberry Resorts Corp., Metro Retail Stores Group Inc., Converge ICT Solutions, Inc., Wilcon Depot, Inc., D&L Industries, Inc., Manila Water Co., Inc., SSI Group, Inc., and Digiplus Interactive Corp.

In the region, Indonesia led with 110 companies on the list, followed by Thailand with 107, Malaysia with 89, Singapore with 84, Vietnam with 70, the Philippines with 38, and Cambodia with two.

“The Fortune Southeast Asia 500 reflects a dynamic and fast-changing region — one whose core economies are growing notably faster than those of Europe or the US. This is partly due to Southeast Asia taking on far greater significance in the global economy, not least because a host of Global 500 multinationals have shifted more of their supply chains to Southeast Asian nations,” Fortune Executive Editor for Asia Clay Chander said.

Meanwhile, Singapore-based commodity trader Trafigura Group Pte. Ltd. topped all Southeast Asian companies on the list with $244 billion in revenue, followed by Thai oil and gas provider PTT Public Company Ltd. with $90.42 billion, Indonesian oil and natural gas company Pertamina at $75.79 billion, Singaporean agricultural company Wilmar International Ltd. at $67.16 billion, and Singaporean agribusiness company Olam Group at $35.95 billion.

Completing the top ten were Indonesian electricity distributor Perusahaan Listrik Negara with $32.01 billion, Thai convenience store operator CP All Public Co. Ltd. with $26.49 billion, Singaporean electronics manufacturer Flex Ltd. with $26.42 billion, and Singaporean financial services company DBS Group Holdings with $25.61 billion.

“The Fortune Southeast Asia 500 debuts right as global business is starting to pay closer attention to the region. Southeast Asian economies are benefiting from supply chain diversification as rapid domestic development builds the next wave of global middle class consumers,” Fortune said.

Sought for comment, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message that the top ten on the list mainly consist of oil and gas companies, as well as agricultural commodity enterprises.

“The ranking further reflects the reality that the Philippines is a consumption-driven economy rather than a production-driven one,” he said.

 Asked about the country’s ranking compared to its neighbors, Mr. Garcia said this is indicative of a “more vibrant small and medium enterprise (SME) environment.” “The business environment here is more fragmented than our neighbors. That could be a negative in the sense that a lot of companies don’t reach economies of scale. But it could also be taken positively in the sense that we might have a more vibrant SME environment here in the Philippines compared to our neighbors,” he said.

 Companies included in the inaugural Southeast Asia 500 join an elite group of firms recognized under the Fortune 500 franchise, which spans the original Fortune 500, the Fortune Global 500, the Fortune Europe 500, and the Fortune China 500. — Revin Mikhael D. Ochave

Golden MV Holdings, Inc.’s annual meeting of stockholders to be held online on July 15

 

 

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Arts & Culture (06/19/24)

Japanese fashion, art, culture in PH context lecture

“FILIPINO Lens on Japanese Fashion, Art, and Culture” is a hybrid lecture on the extensive and interconnected creative history between the Philippines and Japan. It will be held simultaneously in Manila and Tokyo on June 21 both online and at the Benilde campus. Facilitators include Karl Ian Cheng Chua, a historian specializing in Japan; Vincent Tan, board member of the Professional Regulatory Board of Interior Design; fashion designer Tracy Dizon who is a teaching artist in New York; natural dye artist Diana Katigbak who specializes in indigo dyeing; and Nicolle Luna, a professor under Benilde currently pursuing her MA at the Bunka Gakuen University. The lecture, free and open to the public, will be conducted in a hybrid setup with simultaneous physical and online platforms on June 21, 1 p.m. Philippine time. The physical lecture will be held at the 8F Commons of the Benilde Design + Arts Campus, 950 Pablo Ocampo St., Malate, Manila. Interested participants may join online via bit.ly/FilipinoLensHybridLecture.

Big Bad Wolf goes to Glorietta

THE BIG Bad Wolf book fair will be more accessible to the public when it opens at the Glorietta Activity Center and Palm Drive Activity Center in the Ayala Center, Makati, from June 19 to 26. It is part of Ayala Mall’s broader advocacy, “BookLat: Open. Imagine. Discover,” which provides avenues for recreation and experiential learning. Ayala Malls will also host a donation drive, encouraging customers to share a book for every purchase they make at the book fair in support of fostering early childhood literacy. This project aims to collect 20,000 books that will benefit kindergarten to grade 3 students in public schools within Ayala Land Estates and Ayala Malls communities. To kick things off, Glorietta is pledging 1,000 books, which Big Bad Wolf will match.

NCCA Gallery unveils ‘Musa at Musika’ exhibit

ARTIST Anastacio E. Silverio has launched his exhibit, “Musa at Musika,” at the NCCA Gallery. The exhibit features 14 of his multi-media artworks which capture the resilience and emotive power of music, portraying it as a force that elicits love and helps overcome obstacles. The exhibit is ongoing until June 30 at the National Commission for Culture and the Arts (NCCA) Gallery, the Ground Floor of the NCCA Bldg., 633 General Luna St., Intramuros, Manila.

Free monotype printmaking workshop for teens

IMPRINT, a monotype printmaking workshop, is now accepting registrants for June 22. The class is designed for aspiring artists ages 13 to 17. Organized by the Museum of Contemporary Art and Design (MCAD) in partnership with the Bachelor of Fine Arts in Culture-Based Arts of the De La Salle-College of Saint Benilde (DLS-CSB), it will be facilitated by visual artist and art and design educator Hershey B. Malinis, the chairperson of Benilde’s Fine Arts in Culture-Based Arts Program. Free and open to the public, the workshop requires registration. The materials will be provided at the venue. It will be held on June 22, at 2 p.m., at the 14F Studio of the Benilde Design + Arts Campus, 950 Pablo Ocampo St., Malate, Manila.

Nilad Community holds Dia de Manila heritage talks

THE HERITAGE network Nilad Community is holding two days of free talks about Manila heritage for Dia de Manila 2024. On June 22, architect Riel Diala will define heritage, conservation, and its significance in contemporary society at 11 a.m., and architect Ysa Peñas will discuss architectural queer heritage from the 1980s to present-day Malate at 1 p.m. The day will close with historian Xiao Chua’s talk on how today’s landmarks, monuments, and public spaces reflect history, scheduled for 5 p.m. On June 23, Stephen Pamorada of The Heritage Collective will explore the connection between cultural heritage and community identity at 1 p.m., and Diego Torres of Renacimiento Manila will give an overview of the historical development of Manila’s various neighborhoods at 4 p.m. All talks will be at The Art District at the Calvo Bldg., Escolta St., Binondo, Manila.

6 dance films at CCP’s Tara, Laro Ta(y)o

THE CULTURAL Center of the Philippines (CCP) project Tara, Laro Ta(y)o, aims to promote the diverse Philippine dance tapestry by showing six dance films. The featured dances are the Mali, a Dumagat traditional dance; Koirdas di la Bordon of Cuyo, Palawan; Sipit-sipit from Eastern Samar; Kikembe from Cuartero, Capiz; Kasipa sa Manggis from Marawi, Lanao del Sur; and Buwa-buwan of Butuan City, Agusan del Norte. The CCP also created instructional videos and books to document unpublished dances from the different regions of the country, with materials on costumes, music, instruments, and choreographies performed by partner dance groups from Luzon, Visayas, and Mindanao. The Tara, Laro Ta(y)o films will be screened on June 25, at the Convention Center of San Jose Del Monte, Bulacan.

Avellana Art Gallery show pays tribute to founder

THE group exhibition Same House, Different Time features the works of Lexygius Calip, Joey Cobcobo, Eugene Jarque, Lynyrd Paras, Ryan Rubio, and Mac Valdezco, all of whom have called the Avellana Art Gallery home at some point, or whose careers were nurtured under its care. As a tribute to the gallerist and former president of Museum Foundation of the Philippines, Inc., the late Albert Avellana, the exhibit “tells the story of how one’s generosity of spirit and voice of encouragement, of having opened his home to others, can make a difference in someone’s life.” Same House, Different Time is currently on view at the Avellana Art Gallery, F.B. Harrison St., Pasay City.

Bawat Bonggang Bagay makes a comeback

FOR a special Pride Month celebration at the Samsung Performing Arts Theater, the multifaceted artist and comedy icon Jon Santos will be back to stage with Bawat Bonggang Bagay, an interactive one-act play that was initially staged by The Sandbox Collective last year. It follows the story of a young child growing up with a parent facing mental illness. The show encourages audience participation in telling its message and story. The six performances will take place from June 22 to 30 at the Samsung Performing Arts Theater in Circuit Makati. It is recommended for audiences ages 15 and older. Tickets are now available via TicketWorld.

K-Comics World Tour brings exhibit to Manila

FANS of Korean comics can now discover the evolving world of webtoons at the K-Comics World Tour, opening on June 21 at the Groundspace Gallery of the Metropolitan Museum of Manila (The M) in BGC. Hosted by the Korean Ministry of Culture, Sports, and Tourism and the Korea Creative Content Agency, the event highlights webtoons’ impact on Korea’s entertainment industry, featuring popular K-drama adaptations like What’s Wrong with Secretary Kim and Red Sleeve. The exhibition will be open to the public from June 21 to August 10. Entry is free and no registration is required. For visit inquiries, contact visits@metmuseummanila.org.

SMC secures SEC approval for P20-billion bond offering

REUTERS

SAN MIGUEL Corp. (SMC) has received approval from the Securities and Exchange Commission (SEC) to proceed with its retail bond offering, which could raise up to P20 billion.

In a regulatory filing on Tuesday, SMC announced that the SEC issued the permit on June 14. The offering includes a base amount of P15 billion in fixed-rate retail bonds, with an option to increase by an additional P5 billion if there is sufficient demand.

The bond issuance features two series: 6.5-year Series O bonds maturing in 2031 with a fixed interest rate of 7.2584% per annum, and ten-year Series P bonds maturing in 2034 with a fixed interest rate of 7.7197% per annum.

SMC has received a “PRS Aaa” rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings) for its bond offering

Those with the “PRS Aaa” rating are “of the highest quality with minimal credit risk,” while the issuing company has an “extremely strong” capacity to meet its financial commitment on the obligations, PhilRatings said.

This bond offering is the second and final tranche of SMC’s P50-billion fixed-rate bonds program, which was rendered effective in June 2021.

The offer period began on Tuesday and will end on June 24. The bonds are scheduled to be issued and listed on the Philippine Dealing & Exchange Corp. on July 3.

According to its final offer supplement dated June 13, SMC expects to generate up to P19.75 billion in net proceeds if the oversubscription option is fully exercised.

The proceeds will be used for the redemption of the Series I bonds, investments in the company’s Bulacan airport project, and repayment of Series F bonds.

The conglomerate tapped Bank of Commerce, BDO Capital & Investment Corp., and Chinabank Capital Corp. as the joint issue managers of the offer.

Bank of Commerce, BDO Capital, and Chinabank Capital join Asia United Bank Corp., BPI Capital Corp., Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as the joint lead underwriters and bookrunners of the issuance.

For the first quarter, SMC reported a 94% decline in its attributable net income to P509 million due to foreign exchange loss while gross revenue rose by 13.3% to P392.71 billion.

SMC shares rose by 0.95% or 95 centavos to P100.90 per share on Tuesday. — Revin Mikhael D. Ochave

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