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IMMAP highlights digital entertainment with DIGIMAX 2023

The theme for 2023 focuses on the use of digital entertainment beyond leisure

The Internet & Mobile Marketing Association of the Philippines (IMMAP)’s DigiCon, the flagship event for the country’s marketing, advertising, and digital industries, presents DIGIMAX 2023.

The three-day conference will happen from Oct. 18 to 20, 2023, at The Marriott Hotel Grand Ballroom in Pasay City.

DIGIMAX 2023 will highlight trends in digital entertainment, particularly innovations and new insights in the following fields:

  • Video — Producing the next generation of digital video blockbusters;
  • Audio — Maximizing sonic engagement through digital audio and production;
  • Community — Building community through meaningful connections;
  • Commerce — Shaping the future of commerce and shoppertainment;
  • Gaming — Creating engaging and immersive gaming experiences; and
  • WEB3 — Embracing the whirlwind worlds of the Web3 revolution.

Through the event, delegates will get to explore technological breakthroughs in entertainment and understand how they can strengthen their relationship with their respective markets and maximize business opportunities.

“Entertainment is constantly evolving, and technology is providing more opportunities for people to create and access digital entertainment from everywhere. As such, organizations can now craft more personal and impactful messages to connect with their audiences,” says IMMAP President and IMMAP DigiCon 2023 Co-Chair Denise Haak, “That is why we are grateful that our partner brands are with us at DIGIMAX to help make these relevant conversations happen.”

On top of the diverse local innovators and top creatives in the entertainment industry, attendees will also hear from the conference’s international keynote speakers: former Pixar storyteller Matthew Luhn, Simpleology CEO Mark Joyner, and Agencio.io UK Co-Founder Justin James.

“Great stories can bridge the gap between heart and business to make stronger and better connections with your team, clients, and your audience,” award-winning director and top creativity keynote speaker Matthew Luhn shared.

To learn how to harness the power of digital tools and platforms to connect more meaningfully with audiences everywhere, join IMMAP DigiCon: DIGIMAX 2023 by visiting the official website at www.DigiCon.com.ph. Check out a breakdown of the various tracks, more details about the speakers, and how to secure tickets!

 


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Philippines’ most indebted company San Miguel in talks for $2 billion loan

San Miguel Corp., the Philippines’ most indebted company, is in talks with at least 10 banks for a $2 billion loan as it looks to refinance a similar-sized facility maturing in December next year, according to three people familiar with the matter.

The food-to-power conglomerate is looking for a five-year debt and aims to mandate banks and start marketing the deal before year-end, said the people who asked not to be identified as they aren’t authorized to speak publicly. San Miguel officials didn’t immediately respond to requests for comment.

The loan discussions come amid the Philippine central bank’s push for the nation’s largest business groups to disclose their foreign-debt levels, an effort to head off potential economic risks tied to such borrowing.

San Miguel had total outstanding debt of P1.4 trillion ($24.7 billion) at the end of June, according to data compiled by Bloomberg. The company faces its biggest debt redemptions in 2024, with over $3 billion of the total due next year.

The banks in discussions with San Miguel include Australia & New Zealand Banking Group Ltd., Bank of China Ltd.’s Hong Kong branch, CTBC Bank Co., DBS Bank Ltd., ING Groep, Maybank Kim Eng Securities Pte, Mitsubishi UFJ Financial Group Inc., Mizuho Bank Ltd., Rabobank Group and Sumitomo Mitsui Banking Corp., the people said.

The group earlier this year raised $1.33 billion, five-year loan at 198.5 basis points over the benchmark Secured Overnight Financing Rate. — Bloomberg

Putin visits ‘dear friend’ Xi in show of no-limits partnership

RUSSIAN President Vladimir Putin shakes hands with Chinese President Xi Jinping during a meeting at the Kremlin in Moscow, Russia, March 20, 2023. — POOL VIA REUTERS

 – Russian President Vladimir Putin arrived in Beijing on Tuesday to meet with Chinese President Xi Jinping on a widely watched trip aimed at showcasing the trust and “no-limits partnership between the countries even as the war in Ukraine raged on.

In only his second known trip abroad since the Hague-based International Criminal Court (ICC) issued an arrest warrant for him in March, Mr. Putin and his entourage flew into the Beijing Capital International Airport on Tuesday morning, according to Reuters video footage.

He was greeted by the Chinese Commerce Minister Wang Wentao.

It is also the Kremlin chief’s first official trip outside of the former Soviet Union this year, after visiting Kyrgyzstan, a former Soviet republic, earlier this month.

The ICC, which accused Mr. Putin of illegally deporting children from Ukraine, obliges the court’s 123 member states to arrest Putin and transfer him to The Hague for trial if he sets foot on their territory. Neither Kyrgyzstan nor China are members of the ICC, established to prosecute war crimes.

Mr. Xi last saw his “dear friend” in Moscow just days after the warrant was issued. At the time, Mr. Xi invited Mr. Putin to attend the third Belt and Road forum in Beijing, an international cooperation forum championed by the Chinese leader.

Mr. Putin is to attend the forum’s official opening reception hosted by Mr. Xi and talk with the leaders of Vietnam, Thailand, Mongolia and Laos on Tuesday, Russian media reported.

As the forum’s chief guest, Mr. Putin will speak after Mr. Xi on Wednesday and will meet with the Chinese president for bilateral talks later that day.

Beijing has rejected Western criticism of its partnership with Moscow even as the war in Ukraine showed no sign of ceasing, insisting that their ties do not violate international norms, and China has the right to collaborate with whichever country it chooses.

Mr. Putin last visited China for the Beijing Winter Olympics in February 2022 when Russia and China declared a “no-limits partnership days before the Russian president sent tens of thousands of troops into Ukraine.

It would be Mr. Putin‘s third attendance of the Belt and Road Forum, which runs through Wednesday. He attended the two previous forums in 2017 and 2019.

 

BELT AND ROAD

The forum centers on the Belt and Road initiative, a grand plan launched by Xi a decade ago that he hopes would build global infrastructure and energy networks connecting Asia with Africa and Europe through overland and maritime routes.

Mr. Putin has praised the initiative, saying it is a platform for international cooperation, where “no one imposes anything on others.”

Since the start of the Ukrainian conflict, Russia has cemented its energy ties with China in a sign of their economic cooperation.

Russia exports around 2.0 million barrels of oil per day to China, more than a third of its total crude oil exports. Moscow also aims to build a second natural gas pipeline to China.

While the heads of Russia’s oil and gas giants Rosneft and Gazprom will be part of Putin‘s traveling delegation, no new deals in energy can be expected.

The trip is not a “full-fledged bilateral” visit, but one made on the sidelines of an international conference, according to the Kremlin. – Reuters

Malaysia pulls out of Frankfurt Book Fair citing organizers’ pro-Israel stance

STOCK PHOTO | Image by Ahmad Ardity from Pixabay

 – Malaysia‘s education ministry has withdrawn from participating in this year’s Frankfurt Book Fair, accusing the organizers of taking a proIsrael stance, amid growing global divisions over the ongoing conflict between Israeli and Palestinian forces.

The move by Malaysia to pull out of what is considered the world’s largest trade fair for books came after literary association Litprom said it would postpone an award ceremony for a novel by a Palestinian author at the event following the deadly Oct. 7 attack by militant group Hamas in Israel.

The fair‘s organizer also said on Facebook it would be making Jewish and Israeli voices “especially visible” at this year’s edition.

“The ministry will not compromise with Israel’s violence in Palestine, which clearly violates international laws and human rights,” Malaysia‘s education ministry said in a statement late on Monday.

“The decision (to withdraw) is in line with the government’s stand to be in solidarity and offer full support for Palestine.”

Muslim-majority Malaysia has long supported the Palestinian cause, with Prime Minister Anwar Ibrahim saying this week that he did not agree with Western pressure to condemn Hamas.

Anwar on Tuesday called for an immediate end to bombardment in Gaza and the establishment of a humanitarian corridor, following a phone conversation with Hamas leader Ismail Haniyeh. – Reuters

US and Israel to develop aid plan for Gaza civilians, Blinken says

US Secretary of State Antony Blinken. Official White House — CAMERON SMITH VIA FLICKR

 – US Secretary of State Antony Blinken said the United States and Israel had agreed to develop a plan to get humanitarian aid to civilians in Gaza without benefiting Hamas, and that President Joe Biden would visit Israel this week to hear how it would minimize civilian casualties in its war effort.

Mr. Blinken made the announcement after 9 hours of negotiations with Netanyahu that stretched into the early hours of Tuesday. Their meeting was disrupted by air raid sirens warning of incoming Palestinian rocket fire, forcing them to briefly shelter in a bunker.

Mr. Blinken, Washington’s top diplomat, was on the fifth consecutive day of round-the-clock diplomacy in the region, shuttling back to Israel after visiting six Arab countries in four days.

He has sought in part to address the unfolding humanitarian crisis in Gaza, where Israeli bombardment in response to a deadly Hamas attack in Israel has killed some 2,800 Palestinians while forcing hundreds of thousands to flee their homes.

“Today, and at our request, the United States and Israel have agreed to develop a plan that will enable humanitarian aid from donor nations and multilateral organizations to reach civilians in Gaza,” Mr. Blinken told reporters.

Mr. Blinken said the US shared Israel’s concern that Hamas may seize or destroy aid entering Gaza, or prevent it from reaching people in need.

“If Hamas in any way blocks humanitarian assistance from reaching civilians, including by seizing the aid itself, we’ll be the first to condemn it. And we will work to prevent it from happening again,” Mr. Blinken said.

Mr. Blinken did not provide details on what the aid plan would look like.

The top US diplomat also said that Mr. Biden would travel to Israel on Wednesday to make clear that the top US ally has the right to defend itself after Hamas gunmen rampaged through southern Israeli towns and military bases on Oct. 7, killing at least 1,300 people.

“President Biden will receive a comprehensive brief on Israel’s war aims and strategy,” Mr. Blinken said.

“(The) president will hear from Israel how it will conduct its operations in a way that minimizes civilian casualties and enables humanitarian assistance to flow to civilians in Gaza in a way that does not benefit Hamas.”

Mr. Blinken was in Egypt on Sunday, where he said the Egyptian-controlled Rafah border crossing into Gaza would soon reopen, but a deal to allow aid in, and for some foreign citizens to leave, has yet to materialize.

Speaking to reporters earlier after meeting Mr. Blinken, Defense Minister Yoav Gallant said: “This will be a long war; the price will be high. But we are going to win for Israel and the Jewish people and for the values that both countries believe in.”

Washington has moved an aircraft carrier strike group to the eastern Mediterranean and is set to move another carrier to the region in coming days, moves Mr. Blinken has said are meant as a deterrent, not a provocation.

A US official, speaking on condition of anonymity, said that the Bataan, another warship, was heading near the coast of Israel and would include a Marine expeditionary unit, with a total force of about 2,000 personnel.

They have not been given a specific mission but could play a key role in any evacuation.

Separately, the United States has told some troops, potentially 2,000, to be ready to deploy within 24 hours if notified — instead of the usual 96 hours — to the region and could include units that provide assistance such as medical aid if needed, the US official said. – Reuters

UK mulls 1% gambling levy to fund research and treatment of addiction

MICHAL PARZUCHOWSKI-UNSPLASH

 – The British government said on Tuesday it was considering a new levy on online gambling companies of up to 1% in a move it predicts would raise 100 million pounds per year to fund research, prevention and treatment of gambling addiction.

While a voluntary levy already exists, the government’s Department for Culture, Media and Sport (DCMS) said in a statement on Tuesday that some operators were paying as little as 1 pound towards research, prevention and treatment.

“The Government is minded to set the levy as a new 1% fee on gross gambling yield for online gambling operators, while traditional betting shops and casinos will pay a proposed fee of around 0.4%,” DCMS said.

The government in April set out plans to tackle problem gambling and bring regulations up to date after a rise in betting via smartphones on apps and other online platforms where wagers are just a click away.

The government, whose proposals had included new online stake limits of between 2 pounds and 15 pounds, said on Tuesday it was launching a consultation on the design of the proposed gambling operator levy.

The funding from the new levy would deliver new investment for the state-run National Health Service (NHS) in England, Scotland and Wales, the statement added.

The government said charity GambleAware received 34.7 million pounds from industry via the voluntary levy in 2021/22, with some other contributions going to other bodies.

Britain is home to some of the world’s largest betting companies including Entain, the owner of Ladbrokes and Coral brands, and Flutter, which operates FanDuel and Paddy Power, among others.

“Gambling firms should always pay their fair share and this new statutory levy will ensure that they are legally required to do just that,” the government’s gambling minister Stuart Andrew said. – Reuters

Out-of-school youths complete masonry course

With the support of Aboitiz Power Corp. subsidiary Hedcor and in partnership with Aboitiz Foundation, 20 out-of-school youths from Barangay Lingion, Manolo Fortich, Bukidnon completed their masonry course.

The beneficiaries finished their month-long TESDA-accredited National Certification I at the local Public Employment Service Office Municipal Training Center where they learned how to prepare masonry materials and perform basic masonry works.

The initiative aligns with the United Nations Sustainable Development Goals of delivering “Decent Work and Economic Growth” as it sought to open up opportunities for livelihood and support for families and the community.

The scholars’ first project was the construction of a hand-washing facility for Gaboc Elementary School in Manolo Fortich, which was meant to address the need for proper hygiene infrastructure in educational institutions.


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Remittances climb 2.7% in August

Cash remittances coursed through banks rose by 2.7% to $2.79 billion in August. — REUTERS

MONEY SENT HOME by overseas Filipino workers (OFWs) increased by 2.7% year on year in August, the fastest pace since May, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Cash remittances coursed through banks rose by 2.7% to $2.79 billion in August from $2.72 billion in the same month in 2022. This was the fastest rate in three months since the 2.8% seen in May, but slower than 4.3% in August 2022.

“The growth in cash remittances during the month was due primarily to increased receipts from both land- and sea-based workers,” the BSP said in a statement.

Overseas Filipinos’ Cash Remittances

However, cash remittances in August were the lowest since the $2.49 billion in May. Month on month, cash remittances fell by 6.5% from $2.99 billion in July.

Remittances from land-based workers jumped by 3.2% year on year to $2.2 billion in August, while cash sent by sea-based workers inched up by 1% to $600 million.

“The continued growth (in remittances) nevertheless is still a good signal/bright spot for the overall economy as a growth driver),” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For the first eight months of 2023, cash remittances jumped by 2.8% to $21.58 billion from $20.99 billion a year ago.

“This is largely in line with expectations as remittances continue to be a consistent source of foreign exchange and once converted, a viable driver of domestic purchasing power,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa likewise said in a Viber message.

The bulk of the cash remittances or $17.71 billion came from land-based workers during the eight-month period, up by 3.1% year on year. Sea-based workers sent $4.41 billion during the January-to-August period, up by 1.9% year on year.

“The growth in cash remittances from the United States (US), Saudi Arabia, and Singapore contributed mainly to the increase in remittances in the first eight months of 2023,” the BSP said.

The US is the biggest source of cash remittances at 41.6% during the period ending August. It was followed by Singapore (6.9%), Saudi Arabia (5.9%), Japan (4.9%), United Kingdom (4.9%), United Arab Emirates (4.1%), Canada (3.5%), Qatar (2.8%), Taiwan (2.7%) and South Korea (2.6%).

Mr. Ricafort noted OFWs have been sending more money to take advantage of the favorable peso-dollar exchange rate.

“The US dollar/peso exchange already went up nearly P6 or nearly 12% to P56.80 levels currently versus P51 levels since 2022 or before the start of the Russia-Ukraine war on Feb. 24, 2022,” he said.

“As OFW remittances have more peso equivalent for every US dollar sent, this is a source of consolation for OFWs and their families/dependents coping with higher prices/inflation and higher interest rate payments (on loans),” he added.

Headline inflation quickened for the first time in seven months to 5.3% in August, which marked the 17th month that inflation surpassed the BSP’s 2-4% target.

“As inflationary pressures remain such as higher rice and oil/petroleum prices that would lead to higher prices of other affected goods and services, OFW remittances could continue by a similar pace year on year, similar to GDP growth for the coming months,” Mr. Ricafort said.

The BSP sees inflation averaging 5.8% this year. Economic managers are targeting 6-7% gross domestic product (GDP) growth this year.

Remittances also typically accelerate in the fourth quarter ahead of the Christmas holidays, which could support the peso exchange rate, Mr. Ricafort added.

However, Mr. Ricafort noted that a possible global economic slowdown and a prolonged Israel-Hamas war could affect remittances.

Israel accounts for $74.4-million remittances during the eight-month period or 0.3% of the total remittances. In 2022, remittances from Israel reached $110.6 million.

Meanwhile, personal remittances, which include inflows in kind, went up by 2.8% to $3.1 billion in August from $3.02 billion in the same month a year ago. Month on month, personal remittances fell by 6.5% from $3.32 billion.

For the January-to-August period, personal remittances increased by 2.9% to $24.01 billion from $23.34 billion a year ago.

The central bank expects remittances to grow by 3% this year. — AMCS

Filipinos’ declining English proficiency alarms foreign business groups

Students listen to their teacher at an elementary school in Bayombong, Nueva Vizcaya. — PHILIPPINE STAR/VICTOR MARTIN

By Miguel Hanz L. Antivola, Reporter

THE PHILIPPINES needs to step up efforts to address the deterioration in English proficiency among Filipino workers, foreign business groups said, warning that this could hurt the country’s competitiveness.

The Philippines’ advantage in English has strengthened the country’s position as an attractive destination for international trade and investment, said Paulo Duarte, president of the European Chamber of Commerce of the Philippines (ECCP).

“As more foreign investors set up operations in the Philippines, the importance of high English proficiency cannot be overstated,” he said in a Viber message to BusinessWorld. “It greatly enhances workplace efficiency and overall business operations.”

However, the Philippines slipped four notches to 22nd place out of 111 countries in the 2022 edition of the English Proficiency Index (EPI) by global education company Education First (EF). Despite the lower ranking the Philippines still ranked second highest in English proficiency in East and Southeast Asia, behind Singapore.

The country’s EPI score of 578 is categorized as “high proficiency,” which is considered to be sufficient for tasks like making work presentations, understanding TV shows, and reading newspapers, according to EF.

The Philippines must not risk losing this crucial advantage, according to a foreign business group.

“Knowing English is one of several major advantages for Filipinos, we would encourage the government to take the necessary steps to retain and improve English language training at all levels of education, with a focus on Business English,” Bo Lundqvist, president of the Nordic Chamber of Commerce of the Philippines (NordCham), said in an e-mailed reply to questions.

In a 2020 report, the Philippine Institute for Development Studies said, citing a study on the status of the senior high school (SHS) implementation, that many public SHS students lack the basic skills needed for the program.

“Many of the teachers who responded to our study shared they have students who still lack the literacy and numeracy skills and English competencies required for SHS,” Karen Brillantes, a consultant for PIDS, was quoted as saying.

The PIDS report also said that many teachers expressed concerns about students who struggle to form simple English sentences, “making some subjects like Practical Research difficult for the latter.”

In an e-mail interview, Audrey B. Morallo, assistant professor of language education at the University of the Philippines College of Education, noted that “some companies have reported difficulties finding qualified candidates because of their poor communication skills.”

“How can the decent scores we have explain this? This can be an indication that quality language education might not be accessible to many Filipinos,” he added.

“The relatively high level of proficiency in English in the Philippines overall, not limited to the workforce only, but also the business and legal frameworks, makes establishing and operating a business here by a foreign entity easier,” NordCham’s Mr. Lundqvist said.

“[It] simplifies communication, collaboration as well as the ability to render services beyond borders,” he noted. “Therefore, the English language is still a major competitive advantage.”

English proficiency is just one of the many factors contributing to competitiveness, said Yves Aguilos, head of government affairs at the German-Philippine Chamber of Commerce and Industry (GPCCI), via e-mail on Oct. 13.

“The Filipino workforce is also recognized for their strong work ethic, adaptability, technical skills, hospitality, and a keen sense of cultural awareness,” he said.

ECCP’s Mr. Duarte said the rapid acceleration of the digital economy during the pandemic changed the skill sets required by companies.

The Department of Labor and Employment JobsFit COVID-19 Labor Market Information Report said that most jobseekers started highlighting their digital and technical skills during the pandemic.

“In the rapidly evolving landscape of the modern workforce, adaptability, technological prowess, and specialized skills have become equally critical,” Mr. Duarte noted.

ENGLISH PROFICIENCY GAPS
Peachy Pacquing, managing director at global digital business school Hyper Island Singapore, noted that her experience as a professorial lecturer and senior industry fellow at the tertiary level shows her that some students graduate with English proficiency gaps.

“I had to make peace with the fact that I was there to teach how to express and execute ideas, not to teach English grammar to college students,” she said in a Viber message.

Ms. Pacquing noted different factors contributing to the decline in English proficiency within the business process outsourcing industry, which points toward a systemic and adaptive challenge. These factors include the diversification of clients’ needs and investments, which has led to reduced demand for voice services, alongside the increasing integration of technology in the form of chatbots and artificial intelligence (AI), she said.

“Technology is evolving at an exponential rate and those who struggle with English might find much-needed support in generative AI. But we have to think, if the proficiency is not embedded and merely augmented, what sort of Filipinos will we be producing?” she added.

For GPCCI’s Mr. Aguilos, further collaboration between the business community and local educational institutions could be explored, focusing on key areas where the use of English is critical.

For his part, NordCham’s Mr. Lundqvist said: “We believe the proficiency in English is not only a competitive advantage for the Philippines but also a vehicle for the many Filipinos to attain higher education and a career either locally or abroad.”

“As foreign employers, we will be able to provide better training and more opportunities for personal growth for Filipinos with good language skills,” he added.

NEGLECTED, OVERTAKEN
Sergio R. Ortiz-Luis, Jr., president of the Employers Confederation of the Philippines, said that the country can no longer take pride in English proficiency as one of its advantages in the global market.

“We should really start taking it seriously. We have to improve our curriculum. Napababayaan na [It’s being neglected],” Mr. Ortiz-Luis said in a phone interview. “It is the language of commerce, investments, and trade. We are being overtaken.”

George T. Barcelon, president of the Philippine Chamber of Commerce and Industry, said various groups have been urging the Department of Education (DepEd) to focus on improving the English language skills of students.

“We have slipped quite far behind on the international assessment regarding education, so learning is a priority. Public and private schools should be on top of this,” Mr. Barcelon told BusinessWorld via phone call. 

In a separate phone interview, Rene E. Ofreneo, professor at the University of the Philippines Diliman School of Labor and Industrial Relations, said that the decline in English proficiency reflects a general crisis in education, which must be strengthened at the basic, secondary, and tertiary level.   

Hyper Island Singapore’s Ms. Pacquing noted that maintaining the Filipinos’ English edge means revisiting the incentives, objectives, and key results of the English education faculty.

“Beyond formal and structured education, what are the societal and cultural scaffolds we have in place to drive towards English proficiency?” she said.

For Mr. Morallo of the UP College of Education, the education sector must continuously improve how Filipino students learn the language.

“Teachers must ensure that English is taught in such a way that students will be able to use the language in meaningful communication and to achieve whatever purposes they have for learning it,” he said.

“Technological advancements today can provide students with opportunities to be exposed to the language and use it for meaningful communication.”

Teacher education institutions, he also said, must ensure qualifications for teaching the language, as well as providing opportunities for professional development.

Resources also need to be provided to the education sector. “Quality materials, equipment, technology, teacher development, etc. can be provided if the government allocates sufficient resources for education. That will also allow the hiring of more education support personnel,” Mr. Morallo said.

ADDRESSING THE GAP
Amit Jagga, senior vice-president and country leader for the Philippines at Concentrix + Webhelp, said that English proficiency is central to the industry’s competitiveness and sustainability.

“There are also several aspects to language proficiency such as comprehension, effective information processing, active listening, cultural understanding (nuances and idiomatic expressions of English-speaking customers), clear articulation, and quality communication,” Mr. Jagga said on key standards and practices which must be upheld.

Mr. Jagga said that Concentrix + Webhelp employs interventions during pre-hiring, hiring, and further training development to address the potential loss of English-proficient workers.

These include one to two weeks of “near-hire” training for basic conversational English, on-the-job training for basic customer interaction skills, and government-academe partnerships for specialized customer experience courses during the pre-hiring phase, he said.

The company, according to Mr. Jagga, will launch its Turo Guro program before the yearend, which will provide free English training to school teachers nationwide.

At the hiring phase, Mr. Jagga noted that language assessments for native- or near-native-level English communication are done, alongside a skills training enhancement program for client-required communications tests.

Further training development includes a three- to seven-day customer experience training, communication skills workshops, and tech augmentation, he said.

Advanced learning through bots and automation is also used for new hires to master conversation flow and resolution of top customer concerns, he added.

PHL trade outlook dims as global economy slows

PHILIPPINE STAR/EDD GUMBAN

A GLOBAL economic slowdown, elevated inflation and high interest rates may continue to dampen Philippine trade in the coming months, Moody’s Analytics said.

“Although exports held up well in August, a slowing global economy will keep a lid on demand from key markets,” Moody’s Analytics said in a report dated Oct. 13.

The Philippines’ trade deficit narrowed to $4.13 billion in August, its lowest level in two months as an increase in exports offset the drop in imports, data from the Philippine Statistics Authority (PSA) showed.

Exports jumped by 4.2% year on year to $6.7 billion in August, the fastest since November 2022. Imports contracted by 13.1% year on year to $10.83 billion in August.

For the first eight months of the year, the trade gap narrowed to $36.31 billion from the $41.86-billion deficit during the same period a year ago. Exports declined by 6.6% to $47.81 billion as of end-August, while imports fell by 9.6% to $84.12 billion.

Moody’s Analytics said that latest exports data from the Philippines showed that the global tech cycle has “bottomed.”

“The Philippines is a regional hub for the testing and final assembly of semiconductors, but its exports of electronic products have been vulnerable to the semiconductor downcycle over much of the last year,” it said.

Electronic products, which made up more than half of the total exports in August, rose by 6.1% to $3.88 billion.

“Strikingly, semiconductor exports jumped 14%, marking a fourth straight double-digit improvement,” it added.

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. earlier said it expects electronic export growth to be flat after a poor performance in the first half.

Moody’s Analytics said that the slowdown in China will also impact the Philippines’ trade outlook.

“The spluttering economic recovery in China again disappointed Filipinos, with exports to that market a smidgen lower than a year ago,” it said.

“Still, China remained the fourth-largest destination for exports for a second straight month (in August), ranking behind the US, Japan and Hong Kong. China ranked first in March, April and May and second in June,” it added.

The United States remained as the main destination of local goods in August, with export value reaching $1.1 billion or a 16.4% share of the total export receipts. Export value to China stood at $838 million in August.

Meanwhile, import growth will likely be constrained as household spending remains muted. 

“Imports will be kept in check as high borrowing costs and elevated inflation to the end of the year prompt households and businesses to be cautious about spending,” Moody’s Analytics said.

Inflation averaged 6.6% in the first nine months of the year, still above the Bangko Sentral ng Pilipinas’ (BSP) revised 5.8% full-year forecast.

Persistent inflation has prompted the BSP to keep its key interest rate at a near 16-year high of 6.25% for the last four meetings. The BSP governor has also signaled the possibility of a 25-basis-point hike at its Nov. 16 meeting.

For this year, the government is projecting 1% growth for exports and 2% growth for imports. — Luisa Maria Jacinta C. Jocson

Figaro’s income more than doubles to P463 million

LISTED food and beverage company Figaro Coffee Group, Inc. logged a 133% increase in net income to P462.56 million for its fiscal year ending June 30 amid higher revenues.

“This remarkable growth was attributed to increasing volume and efficient management of overhead costs, demonstrating the company’s commitment to enhancing both production and productivity,” Figaro said in a regulatory filing on Monday.

Figaro’s latest annual profit is a big improvement over its P198.19 million net income in the previous fiscal year.

Figaro’s revenues rose 75% to P4.28 billion from P2.44 billion. The company said same-store sales rose 6%, without giving comparative numbers. It currently has 186 stores across its brands, with more under construction.

The company’s gross margin declined to 45% from 49% while its operating margin rose to 14% from 10%.

“While the company experienced a slight dip in its gross margin, declining from 49% to 45% due to [an] increase in raw ingredients costs, its operating margin improved from 10% to 14% due to prudent cost management and improvement in operational efficiencies,” Figaro said.

Meanwhile, Figaro said its improved financial position was also complemented by the investment from Monde Nissin Corp., further bolstering the proceeds from the company’s initial public offering proceeds. 

In January, Monde Nissin acquired a 15% stake in Figaro Coffee for about P820.27 million as it pursued growth opportunities.

Meanwhile, Figaro Coffee said it recently launched new products to improve its menu lineup such as the creamy spinach sushi bake pizza for the Angel’s Pizza brand as well as new all-natural drinks for Figaro Coffee.

“We are very humbled by the patronage of old and new customers to our brands and we are excited to continue our prudent expansion and product innovation,” Figaro Coffee Chief Executive Officer Divine G. Cabuloy said, adding that despite the challenges, the group “will press on” to give the best product and value-for-money options for its customers.

Figaro has one subsidiary, Figaro Coffee Systems, Inc., through which it operates various brands such as Figaro Coffee, Angel’s Pizza, Tien Ma’s, and Café Portofino. 

On Monday, shares of Figaro Coffee dropped seven centavos or 9.46% to finish at 67 centavos each. — Revin Mikhael D. Ochave

Meralco seeking speedy resolution of issues over ‘very crucial’ 1,800-megawatt capacity

MANILA ELECTRIC Co. (Meralco) is seeking “a quick resolution” by regulators of any issues involving the procurement of its 1,800-megawatt (MW) capacity requirement.

Joe R. Zaldarriaga, spokesperson and vice-president for corporate communication of Meralco, said the power distributor “will immediately” ask the bids and awards committee to start the competitive selection process (CSP), the mandated transparent bidding for power supply. 

“After the CSP, the resulting PSA (power supply agreement) will be filed for approval before the regulator and we hope for a quick resolution of any petition to be filed,” he said in a Viber message.

Meralco said it had submitted for approval the new terms of reference (TOR) to the Department of Energy (DoE) on Sept. 14 for the conduct of CSP to replace the capacity covered under terminated contracts.

“[The 1,800 MW supply is] very crucial as it will ensure that our supply requirements will be able to meet the growing demand of our customers,” Mr. Zaldarriaga said.

Energy Undersecretary Rowena Cristina L. Guevara confirmed that the DoE had received the proposed new terms from Meralco.

“However, the responsibility to review the TOR rests with the ERC (Energy Regulatory Commission) in accordance with the CSP guidelines,” she said in a Viber message.

In the meantime, the DoE has advised Meralco to submit for review and evaluation its updated power supply procurement plan to include the 1,800 MW granted by the ERC for withdrawal or termination, Ms. Guevara said.

Last week, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said the regulator had approved the withdrawal of the PSA application jointly filed by Meralco and San Miguel Corp. 

The two companies under San Miguel’s power arm San Miguel Global Power Holdings Corp. — Excellent Energy Resources, Inc. and Masinloc Power Partners Co. Ltd. (MPPCL) — were supposed to start delivering Meralco’s needed capacity by 2024 and 2025 after bagging the supply contracts in 2021.

Excellent Energy had proposed to supply 1,200 MW from its natural gas power plant for P4.1462 per kilowatt-hour (kWh) by 2024, while MPPCL had offered to provide the remaining 600 MW from its coal-fired power plant for P4.2605 per kWh by 2025.

In March, Meralco said that SMC submitted the notices of termination of the PSAs.

Ms. Dimalanta said the PSA withdrawal had been approved as the long stop date — or the agreed time frame during which all conditions required for a transaction must be completed — had lapsed.

She said Meralco now needs to comply with the new CSP guidelines issued on Oct. 6, which is anchored on the policy framework issued by the DoE in June.

With the new guidelines, Ms. Dimalanta said the bidding process and rates are all subject to ERC guidelines, making it easier for distribution utilities (DUs) to comply “because they just look at the ERC rules to follow for CSP.”

“We also provided PSA templates to guide DUs and facilitate the review at ERC level (since in a way, we already pre-cleared those terms and conditions),” she said, describing the process as “streamlined” and the evaluation “transparent.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera