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More opportunities for Filipinos seen in Web3

Yield Guild Games Co-Founder Gabby Dizon talks about the metaverse during the Philippine Web3 Festival.

New income stream for ‘MFWs,’ growth areas for startups

Web3, considered the next, decentralized form of the World Wide Web powered by blockchains, cryptocurrencies, and non-fungible tokens (NFTs), is giving way to the emergence of a new kind of profession and a new kind of business model in the Philippines, executives from Web3- and blockchain-based startups said.

Gabby Dizon, co-founder of play-to-earn (P2E) gaming guild Yield Guild Games (YGG), observed that as Web3 has given Filipinos new income opportunities by allowing them “to own a piece of the online economy” — as exemplified by owning an NFT in popular P2E game Axie Infinity — Web3 is initially driving the rise of what he calls the “metaverse Filipino worker” (MFW).

“What we’ve seen in opportunities with Web3, NFTs, and games like Axie, people can go into these virtual worlds, be a top player, a scholar manager, or even a content creator. Basically, you can find a way to earn a living there [in the metaverse] and help sustain your family without having to be physically separated from them,” Mr. Dizon explained during the Philippine Web3 Festival held earlier in November.

The Web3 space is also seen bringing a new, digitally-native business model in the form of gaming guilds.

Peter Ing, chief executive officer of BlockchainSpace, a one-stop shop for gaming guild needs, said that guilds have emerged like cooperatives, with members navigating a new industry and trying to monetize and generate revenue together.

“We realized that over 20,000 of those micro-communities suddenly came together… [Their numbers are] usually anywhere between 50 to 100 people online; but in person, they might only be five to 10 people running that. And we realized that these people were running their own businesses. They held these assets, rented them, leased them to someone else, and at the end of the month, they [get their share]. And now they’re looking for more business opportunities,” Mr. Ing said during a press conference prior to the Web3 Festival.

“We’ve already seen version 1 of the business model, and I think there’s going to be a lot more business models coming out. We’ll definitely see these skills as the new business model for the new digital economy,” he added.

Philippine startups

Mr. Dizon also observed that the Philippine startup scene has largely contributed to the growth of the Web3 space.

He said that after YGG started and was able to raise funding from international investors, other startups emerged, such as BlockchainSpace and BreederDAO, a startup specializing in breeding and crafting NFT characters and game items to be used in P2E games.

“What’s exciting, not just on the usage front, is that a lot of talented Filipino entrepreneurs who might have been employees of growth-scale startups… are now striking out, becoming founders of their own, getting VC (venture capital) funding, and basically competing with the best in the world in Web3,” Mr. Dizon added during the aforementioned press conference.

Such talents are given a great opportunity to propel their startups to further grow the Web3 space, he continued.

“They now have a much larger opportunity because the funding is open. You can get VC funding from anyone around the world, including the best VCs like Andreessen Horowitz, for example; and this is open to anyone who has a good idea and can refine it into a pitch and gain traction,” Mr. Dizon explained.

Mr. Ing said the future looks optimistic for Web3 the Philippines, and the rest of the world is watching.

“Education and regulation are important aspects of Web3 adoption in the Philippines. Education erases the stigma, enables Filipinos to understand what they are getting into, and builds on that community that they have surrounded themselves with. Regulation, on the other hand, legitimizes the players in the Web3 space. It is a good thing that government institutions here in the Philippines are very open-minded and forward-thinking when it comes to innovations like Web3,” he said.

Held last Nov. 14-18 in Bonifacio Global City, Taguig, the Philippine Web3 Festival, gathered global leaders from the world of cryptocurrency and Web3 to discuss the future of Web3 and learn from Filipino founders, investors, artists, content creators, and blockchain gamers on how they are advancing the industry in the country. — Adrian Paul B. Conoza

Tablevibe partners with Xendit to launch commission-free online ordering system in PHL

Y-Combinator-backed startup Tablevibe has partnered with Philippine payment gateway Xendit to launch its commission-free online ordering system in the country. The restaurant tech venture successfully launched in Metro Manila following a surge in demand for its solutions in Singapore and Australia.

The move empowers any restaurant to set up a free webshop and accept pickup and delivery orders directly from its customers. On-demand drivers are sourced automatically and deliver food in a 10-kilometer radius for a P60 flat fee. As a result, restaurants can save up to 70% in online food ordering costs.

Restaurants typically use their cost savings to partially cover delivery fees, resulting in lower prices for consumers. Tablevibe’s deep integration with last-mile delivery services allows restaurants to deliver orders instantly without hiring their own drivers.

One of Tablevibe’s launch partners is CloudEats, a rapidly expanding cloud kitchen group with operations in both the Philippines and Vietnam. “Tablevibe helps us engage directly with our loyal customers, creates seamless commerce experiences, and offers great delivery fulfillment rates. It’s an exciting new channel for us,” CloudEats CEO Kimberly Yao said.

Xendit Managing Director Yang Yang Zhang said that its partnership with Tablevibe marks an essential step on its mission to build the digital infrastructure for Philippine-based businesses. “It enables restaurants to accept payments via credit cards, debit cards, and e-wallets like GCash through a single integration. Together, we’re excited to support eateries and boost their online sales across the country,” he said.

“We saw our global revenue surge more than 500% year over year. Together with our strong local partners, we are incredibly excited about supporting local restaurants and making their offerings even more accessible to food lovers across the Philippines,” Tablevibe Chief Operation Officer Mathieu Sneep said.

Nov. inflation likely at 7.8% — poll

Trade Undersecretary Ruth B. Castelo checks the prices of noche buena products in a supermarket in Manila, Dec. 2. — PHILIPPINE STAR/EDD GUMBAN

By Keisha B. Ta-asan, Reporter

INFLATION likely quickened beyond the Bangko Sentral ng Pilipinas’ (BSP) target for an eighth straight month in November, mainly due to costlier food items and higher electricity rates, analysts said.

A BusinessWorld poll of 15 analysts last week yielded a median estimate of 7.8% for the consumer price index (CPI) in November, faster than the 3.7% print a year earlier and the 7.7% print in October. 

If realized, November would mark eight straight months that inflation has breached the BSP’s 2-4% annual target range, and the fastest in 14 years or since the 9.1% print in November 2008.

Analysts’ November 2022 inflation rate estimates

The headline inflation figure will also match the 7.8% midpoint of the BSP’s 7.4-8.2% forecast for the month.

The Philippine Statistics Authority will release inflation data on Dec. 6. 

“For November, our inflation view is 7.8% as we still see elevated food price levels owing to the food supply tightness stemming from the weather disturbances in October and early November,” Sun Life Investment Management and Trust Corp. economist Patrick M. Ella said in an e-mail.

The agriculture sector bore the brunt of several weather disturbances this year. Severe Tropical Storm Paeng (international name: Nalgae) caused over P6.4 billion in agricultural damage, and prompting the declaration of a six-month “state of calamity” in Calabarzon, Bicol, Western Visayas and the Bangsamoro Autonomous Region in Muslim Mindanao.

Philippine National Bank economist Alvin Joseph A. Arogo, who gave a 7.9% forecast, noted these four regions contribute a combined 27% to the country’s agriculture, forestry, and fishing industry.

“As such, we budgeted for higher food and non-alcoholic beverages price growth in November and December. Meanwhile, we continue to reflect in our forecasts our view that the second-round impact of the global commodities spike and impact of peso depreciation will likely still be felt in the near term,” Mr. Arogo said.   

Standard Chartered Bank economist Jonathan Koh said in an e-mail that utilities inflation likely went up in November after Manila Electric Co. (Meralco) raised electricity rates.

Meralco raised the overall rate for a typical household by P0.0844 to P9.8628 per kilowatt-hour (kWh) in November.

“Offsetting these upward pressures are the reduction in petroleum and pork prices, the peso appreciation, and base effects,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail. 

In November alone, pump price adjustments stood at a net decrease of P7.5 a liter for diesel and P4 a liter for kerosene. Meanwhile, gasoline prices had a net increase of P0.8 per liter for the month.     

The peso also rebounded to the P56-a-dollar mark in November, closing the month at P56.56 on Nov. 29, up by P1.41 or 2.5% from its P57.97 finish on Oct. 28.

However, China Banking Corp. Chief Economist Domini S. Velasquez said that core inflation is still on an uptrend, and may peak in the first quarter of 2023.

“Our latest estimate shows core inflation might have jumped to 6.1% in November from 5.9% in October. This means that secondary round effects continue to drive higher prices overall,” she said.   

Mr. Roces also said strong local consumption may have pushed core inflation higher in November.

Core inflation, which excludes food and fuel prices, quickened to 5.9% in October from 5% in September.

PEAK IN DECEMBER?
Meanwhile, headline inflation will likely peak in December before slowing down in 2023, analysts said.

“We think the inflation has yet to peak, and see December inflation picking up to around 8% and average 5.8% for 2022,” Oxford Economics assistant economist Makoto Tsuchiya said in an e-mail.

Ms. Velasquez said prices of holiday goods “are at risk of further peaking.” “We hope the government can monitor and prevent unnecessary price increases this December,” she added.

Ms. Velasquez said inflation may settle within her forecast range of 7.7-7.9% in December before easing in 2023.   

The Department of Trade and Industry (DTI) last month said prices of many food products considered as Christmas staples by Filipinos have increased by 1% to over 10% ahead of the holiday season. These products include ham, spaghetti noodles and sauce, quezo de bola and fruit cocktail.

“We think inflation will peak in December at 8.1% and this should start going down starting January next year. We continue to watch the factors that will likely push inflation, especially the increase in the prices of food products brought about by higher fertilizer prices and typhoon damage,” Mr. Arogo said.

Meanwhile, Mr. Roces said he expects the BSP to raise policy rates by 50 basis points (bps) at its Dec. 15 meeting, “with scope to do more in (first quarter of 2023) until inflation cools.”

BSP Governor Felipe M. Medalla said in an interview with Bloomberg TV that the Monetary Board is likely to be split whether the policy rate would be raised by 25 or 50 bps.

“Certainly, we will not do zero and I cannot speak for the rest of the board. But I think the board members will probably be split between whether doing 25 or 50,” he said. 

US Federal Reserve Chair Jerome H. Powell last week signaled it was time to slow the pace of coming rate increases. The Fed is now widely expected to increase rates by 50 bps at its Dec. 13-14 meetings, adding to the cumulative 375 bps it has delivered since March to tame inflation.

“With the holiday season, prices of seasonal products are seen to increase but overall inflation is seen to slow down towards the end of the year with the tighter monetary policy controls set by the BSP,” De La Salle University economist Mitzie Irene P. Conchada said in an e-mail.

The BSP has raised its benchmark interest rate by a total of 300 bps to 5% since May to curb inflation.

“Looking ahead, we expect inflation to decelerate amid dissipation of supply-side shocks and non-monetary measures to contain price increases,” Mr. Koh said.

He added that the effectiveness of non-monetary measures will have to be observed moving forward.

PHL not ready for sovereign wealth fund — analysts

A Philippines peso note is seen in this picture illustration on June 2, 2017. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES is not ready for a sovereign wealth fund amid the lack of fiscal space and high debt levels, as well as concerns over possible mishandling of public funds, analysts said.

“At this point in time, the country is not in a position to set up a sovereign wealth fund given the government’s tight fiscal position and large debt-to-gross-domestic product (GDP) ratio. Furthermore, the government doesn’t enjoy any fiscal bonanza from a commodity price boom, such as minerals or oil,” Calixto V. Chikiamco, Foundation for Economic Freedom (FEF) president, said in a Viber message.

Several lawmakers led by House Speaker Ferdinand Martin G. Romualdez, a cousin of President Ferdinand R. Marcos, Jr., and Deputy Majority Leader Ferdinand Alexander Marcos, the President’s son, recently filed a bill seeking to create a sovereign wealth fund.

The proposed Maharlika Wealth Fund will make investments by utilizing funds from the Government Service Insurance System (GSIS), the Social Security System (SSS), Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP).

The sovereign wealth fund will get an initial investment of P250 billion from these state pension funds and banks.

Mr. Chikiamco said it will be risky to use pension funds, which are typically managed conservatively, for a sovereign wealth fund.

“There is no value added to create another separate entity to invest the funds of SSS and GSIS. The pension funds have investment committees that invest the money prudently on behalf of its members. If the idea is to generate higher returns, it may come at higher risk, which is not within the investment guidelines for the investment of pension funds,” he said.

“It may also be politically reckless for them to touch SSS funds, which are owned by its members and not the government,” he added.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in an e-mail that pension funds are held in trust for the benefit of its members, not the government.

“Relying mainly on pension funds and government banks which already have their own investment objectives, timelines and risk tolerances subjects the pensions and deposits of ordinary families to extraordinary risk. Retirees and depositors did not sign up to subject their money to this new type of risk,” he added.

A sovereign wealth fund is typically funded by a government’s oil or other commodity export revenue or excess foreign exchange reserves.

“We have no oil, we have limited natural gas and the current revenue-sharing framework on mining does not favor the government,” Mr. Ridon said, adding that the Philippines does not have any surplus government funds.

The National Government’s (NG) budget deficit stood at P1.11 trillion in the January-to-October period, accounting for just 67% of the P1.7-trillion deficit program for the full year. The government borrows from local and external sources to help fund a budget deficit.

The NG outstanding debt hit a record P13.52 trillion as of end-September, bringing the debt-to-GDP ratio to a 17-year high of 63.7%.

OBJECTIONS
Under the proposed bill, subsequent contributions to the Maharlika Investment Fund (MIF) would come from other government institutions, including the BSP. The bill requires the BSP to provide funds equivalent to 10% of remittances from overseas Filipino workers (OFWs), 10% coming from the annual contribution of the business processing outsourcing (BPO) sector.

“If they say we will take the central bank’s dollars…we will have less ammunition the next time there is international volatility,” BSP Governor Felipe M. Medalla said in an interview with Bloomberg TV on Friday.

BSP data showed gross international reserves, which serves as a buffer for liquidity shocks, stood at $94.1 billion as of end-October — the lowest in two years.

Mr. Medalla also said transparency over the governance of the MIF will be crucial, citing the experience of 1Malaysia Development Berhad (1MDB).

Malaysia’s 1MDB raised billions of dollars from bond issuances to be spent for projects, but over $4.5 billion were allegedly misappropriated by key officials.

Analysts also noted widespread opposition to the MIF is due to a lack of trust in the government, which has been hounded by corruption issues in recent years.

“My bigger objection is that no amount of so-called ‘good governance’ principles or independent directors can insulate the MIF from being mismanaged or pillaged given the lack of a rule of law in this country. If big-time crooks aren’t sent to jail, there is a risk that those managing the fund may think they can get away with it,” Mr. Chikiamco said.

Maria Ela L. Atienza, who teaches political science at the University of the Philippines, said a sovereign fund requires “clear and democratic decision making, transparency and accountability.”

“The people who will be responsible for the funds need to be both good managers and accountable,” she said.

Under the bill, the Maharlika Wealth Fund Corp., the state corporation that will manage the fund, will be chaired by Mr. Marcos.

“It is imperative that there are sufficient guarantees through strong mechanisms of transparency and oversight in efforts to push for the use of public funds for investment purposes,” Francisco A. Magno, who teaches political science and development studies at the De La Salle University, said in a Messenger chat.

Mr. Ridon also noted the fund’s leadership structure can potentially allow “political interference” by various financial institutions to lobby for politicians and investment priorities.

“In its place, a Philippine sovereign wealth fund should institute a leadership structure composed of independent finance professionals compensated based on fund performance. This ensures that the fund is free from political interference and fund performance is the most important bottom line,” Mr. Ridon added.

Antonio A. Ligon, a law and business professor at De La Salle University, said that safeguards must be put in place to prevent mismanagement.

“Strict accounting internal control should be set in place,” he said, adding that caution should be exercised before putting resources in the MIF.

Mr. Ligon also recommended that a trial period be implemented to evaluate the viability and profitability of the fund to its beneficiaries.

Under the bill, the proposed fund shall adhere to the Santiago Principles to “ensure transparency and accountability.”

The Santiago Principles are a set of 24 best practices for sovereign wealth funds established by the International Forum of Sovereign Wealth Funds.

John Paolo R. Rivera, an economist at the Asian Institute of Management, said that the government should focus on raising funds through the private sector instead of a sovereign wealth fund.

“The role of the private sector is also critical because they’re the ones that have surplus funds. Like I mentioned earlier, most economies invest their surplus funds into their sovereign fund because they want to expand their liquidity further and faster, so the role of the private sector is very important because they are the ones who have surplus funds,” Mr. Rivera told BusinessWorld Live on Thursday. — with Kyle Aristophere T. Atienza

Gross borrowings drop 33% as of end-October

PEXELS-JOHN GUCCIONE

GROSS BORROWINGS by the National Government (NG) declined by 32.7% year on year as of end-October, preliminary data from the Bureau of the Treasury (BTr) showed.

According to the BTr, total gross borrowings in the 10-month period stood at P1.85 trillion, lower than the P2.75 trillion seen in the same period last year.

For October alone, gross borrowings increased by 25.4% to P176.56 billion year on year.

For the first 10 months of the year, gross domestic borrowings dropped by 31% to P1.58 trillion from P2.29 trillion a year ago.

In October, gross domestic borrowings plunged by 57.6% to P56.73 billion from P133.73 billion a year ago. The month saw a net redemption of Treasury bills (T-bills) amounting to P51.38 billion, which was offset by the P108.11 billion raised through fixed-rate Treasury bonds (T-bonds).

Meanwhile, external gross borrowings fell by 9.07% to P471.66 billion in the 10-month period from P518.71 billion a year earlier.

Foreign gross borrowings surged by 943.2% to P125.7 billion for the month of October from P12.049 billion posted last year.

This included global bonds, which amounted to P116.93 billion, and project loans, which totaled P8.76 billion.

In October, the Marcos administration raised $2 billion (P118 billion) from its first dollar bond issuance, reflecting “strong investor appetite globally for the republic.”

The government also repaid P5.74 billion to foreign creditors in October.

The government borrows from domestic and foreign sources in order to fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6% of gross domestic product (GDP).

The NG outstanding debt hit a record P13.52 trillion as of end-September. 

As a share of GDP, outstanding debt rose to 63.7% at the end of September, the highest in 17 years. — Luisa Maria Jacinta C. Jocson

Villar set to launch 80-hectare casino complex

AIDAN HOWE-UNSPLASH

A SUBSIDIARY of Villar-led Prime Asset Ventures, Inc. is set to launch an 80-hectare casino and entertainment complex in the Las Piñas-Parañaque area by 2023.

Villar Group Chairman Manuel B. Villar, Jr. said around $1 billion has been committed to the project.

“We will be launching it early next year since the casino has already been built,” he told reporters on Friday last week.

The project called Gold Coast Entertainment City will be under Vertex Entertainment and Resort Corp., which is a subsidiary of Manuel Paolo A. Villar’s Prime Asset Ventures.

According to the chairman, the complex will house hotels, condominiums, a mall, a casino and a theme park and will be near the Ninoy Aquino International Airport.

He said the complex will be similar to Disney’s developments.

“We will be putting up a lot of hotels, some condotels,” Mr. Villar said. “Meron na ako ngayon, ‘yong Mella Hotel (We already have one hotel, the Mella Hotel).”

The casino, which is nearly finished, will have roughly 18,000 square meters of floor area and will be in partnership with foreign partners whose names and nationality he did not disclose.

“Pumipili pa kami ng isa doon sa dalawa (We are still choosing from the two choices we have),” Mr. Villar said.

“I look at it more as a resort … This is the biggest in terms of land area,” Mr. Villar said, noting that 98% of the complex will be like a resort.

Meanwhile, Mr. Villar said that his real estate firm Vista Land & Lifescapes, Inc. will be more aggressive in launching residential projects in 2023 after slowing down operations during the pandemic.

“We will be more active in housing this year. We have been holding back for three years. While we remained active in the market, we did not pursue it as much,” he noted.

“Basta next year, mostly in the first half, makaka-41 kami na launches (Next year, in the first half, we will have 41 launches),” Mr. Villar said.

According to Mr. Villar, the company will have a 45-65 horizontal to vertical ratio by next year.

“Kasi kapag vertical mas napre-preserve mo ang land mo kasi marami kang nabi-build. Tsaka baka ‘yon na ang future kasi sobrang mahal na ng lupa, (When you build a vertical project, you preserve the land more because you can build more. And I think that will be the future, because land is getting more expensive),” Mr. Villar said.

He also said that he expects Vista Land to end the year with 50-50 mix of horizontal and vertical projects. — Justine Irish D. Tabile

DMCI Homes plans to launch a P7-B high-rise project

REAL-ESTATE developer DMCI Homes, Inc. is targeting to launch a high-rise condominium project in Caloocan by January next year, according to its president.

“Wala ng [projects] this December, January na… baka sa Caloocan (We don’t have launches left this December, closest will be in January in Caloocan),” DMCI Homes President Alfredo R. Austria told BusinessWorld recently.

According to Mr. Austria, the estimated development costs for the project will be around P6-P7 billion. The project is expected to house 1,500 units.

“Hindi pa namin pino-formalize e (It’s not yet formalized), but the target launch is January,” Mr. Austria said.

In the third quarter, DMCI Homes recorded a 25% increase in its net income to P1.15 billion from P919 million in the same period last year.

According to a disclosure of the company’s parent, DMCI Holdings, Inc., DMCI Homes’ total sales climbed to P11.7 billion in the third quarter from P6.6 billion a year ago.

The developer said it recorded a strong sales rebound in the third quarter after the launch of its two transit-oriented projects: Fortis Residences in Makati City and Sage Residences in Mandaluyong City.

The company also recorded higher sales and reservations in the three-month period to 2,610 units – 1,473 residential units and 1,137 parking slots, from the 1,641 units it sold last year.

“Average unit selling price of DMCI homes have increased with the launch of Fortis Residences in July,” DMCI Homes said.

Meanwhile, for the first nine months of the year, DMCI Homes said its net income dipped by 2% to P4 billion from P3.9 billion last year, which it attributed to lower construction accomplishments and sales cancellations.

Looking forward, the company plans to build a mixed-use project next to Fortis Residences, called One Fortis Plaza.

“We’re also building an adjacent building that will include office, retail and commercial spaces called One Fortis Plaza, so residents can have easy access to shops, restaurants or even work,” Mr. Austria said in a statement. — Justine Irish D. Tabile

ICTSI receives third repayment from Sudan on canceled port deal

PORTS operator giant International Container Terminal Services, Inc. (ICTSI) said it recently received a third partial repayment from the Sudanese government in relation to the canceled port concession.

“After further discussions with the Ministry of Finance and Economic Planning of the Republic of the Sudan, ICTSI has received a third partial repayment of the upfront fee from the Sudanese government in the amount of €967,000 (equivalent to approximately $1 million),” the company said in a disclosure to the stock exchange on Dec. 2.

The Enrique K. Razon, Jr.-led company also said that “positive engagement” with the relevant Sudanese ministries continues in relation to the refund of the remaining balance of the upfront fee.

In 2019, ICTSI, through its wholly owned subsidiary ICTSI Middle East DMCC, signed a concession agreement with Sea Ports Corporation of Sudan to operate, manage, and develop the South Port Container Terminal at the Port of Sudan for 20 years.

Under the deal, ICTSI was required to pay an upfront fee of €530 million in installments of €410.0 million ($467.2 million) and five other installments each in the amount of €24 million ($27.3 million) from the third to the seventh operation year; fixed monthly fee; and royalty fee during the concession period.

ICTSI had paid the initial installment of an upfront fee of €410 million ($470.2 million).

However, the Sudanese government failed to turn over the port to ICTSI on or before April 7, 2019, mainly due to political instability, according to ICTSI.

“The Ministry sent ICTSI a letter confirming the remittance of €195.2 million ($219.1 million) as partial repayment of the upfront fee under the terms of the refund bond and that the balance will be repaid as soon as possible,” the company said in a disclosure.

ICTSI received from the Sudanese government a second partial repayment of the upfront fee in the sum of €26.8 million (or $29.8 million) in December 2019.

ICTSI shares closed 1.68% lower at P193.50 apiece on Dec. 2. — Arjay L. Balinbin

Fendi goes beyond clothes

LANDSCAPE bed designed by Marcel Wanders Studio and the Sandia daybed by Toan Nguyen.

A BIG bed with a beautiful textured headboard worth more than P2 million. That’s not very easy to ignore.

If one sees a person wearing the bold and brash designs of Fendi, it isn’t easy to look away. The same can be said about the two Fs forming the logo, and perhaps we should say straight away that a house clothed in Fendi wouldn’t be easy to forget either. That’s the promise of the new Fendi Casa showroom, boasting Fendi furniture in a 220 sqm. space at Twenty-Four Seven McKinley in BGC, Taguig.

During a Nov. 16 tour around the showroom, we saw the aforementioned bed, several sofas that were delectable to sink into, and even Fendi references in the furniture: think sofas with tiny slits that evoked the same feelings as the Peekaboo bag. They also have on board several designers to design pieces for them: Marcel Wanders Studio has a sofa and armchairs, and Thierry Lemaire’s Parsifal sofa and armchairs that evoked midcentury styling.

The new showroom also reflects movements in Europe and FF Design CEO Alberto Da Passano was there to explain Fendi Casa’s new structure.

“It’s not a corporate restructuring. It’s actually a new adventure that just started,” he said.

Mr. Da Passano was the former president for Fendi in Europe and the Middle East. He explained that the Fendi Casa license had expired in 2021 with its former partner (WWD identifies it as Luxury Living), and they formed a joint venture (the aforementioned FF Design) with Design Holding, which includes under its portfolio luxury furniture brands like Flos, B&B Italia, and Louis Poulsen, among others.

“We selected a partner that we thought was ready and able to give us the best quality — but also, a partner which will share in the values and the long-term vision of the brand,” Mr. Da Passano told BusinessWorld.

Mr. Da Passano, for his part, explained why the Philippines was an important market for the brand. “Fendi is strong, we can be strong. It’s a dynamic society. It’s growing fast; there’s attention to fashion.”

He explained also the shared DNA between Fendi’s clothing and accessories, and the accompanying furniture. “Fendi is about color, joyfulness,” he said. “In some ways, it’s more obvious. In some others, there needs to be more storytelling.”

Fendi isn’t the first name to put an Italian stamp on style, nor would it be the last. As an Italian, Mr. Da Passano has an answer as to why the Italians can live so stylishly: “Italian people are creative. I think it’s the environment. I think there is in Italy an environment that enhances these kinds of skills,” he said. “The people who have these kinds of skills are able to express themselves at their best.”

“We are surrounded by beautiful things. People have a sense of beauty.” — JLG

Balenciaga designer, CEO apologize for ad campaign featuring children

STOREFRONT of a Balenciaga store in New York City on Dec. 2. — PHOTO BY JOHN NACION/NURPHOTO VIA REUTERS

PARIS — French fashion house Balenciaga’s creative director and chief executive officer (CEO) both apologized Friday for an advertising campaign that sparked criticism on social media over accusations that it featured inappropriate imagery involving children.

The storm over the campaign led reality television star Kim Kardashian to review her ties with the label.

“I want to personally apologize for the wrong artistic choice of concept for the gifting campaign with the kids,” said creative director Demna Gvasalia, known as Demna, in a message posted on Instagram.

Separately, the Kering-owned label issued a statement signed by CEO Cedric Charbit outlining new internal processes, including naming an “image board” to evaluate content.

The label drew fire in recent weeks over two separate campaigns that were posted online. One last month, advertising a gift collection, featured a handbag in the form of a stuffed teddy bear in bondage-style straps, held by children.

A second, separate campaign for the label’s spring 2023 collection, set in an office, included papers featuring text from a 2008 Supreme Court ruling relating to child pornography.

In a statement earlier this week, Balenciaga apologized and said that investigations into the ad campaigns were ongoing. It said the papers featuring the legal text on child pornography were props from a third party and that it had filed a complaint against the inclusion of the “unapproved documents.”

In Friday’s statement, Mr. Charbit said the label had decided not to pursue litigation.

“I want to personally reiterate my sincere apologies for the offense caused and take my responsibility,” said Mr. Charbit. — Reuters

Maynilad allots P1.5 billion for pumping station projects

MAYNILAD Water Services, Inc. (Maynilad) has set aside P1.5 billion for the rehabilitation of its 17 pumping stations, the west zone water concessionaire said on Saturday.

“Through these infrastructure investments, we hope to support the growing demand for water and improve service reliability for the long term,” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez said in a statement.

Maynilad has also allotted P2.8 billion for the construction of five pumping stations and reservoirs in Quezon City, Muntinlupa, and Cavite in the next five years.

The company said that these additional capacities will bring an additional 211 million liters to Maynilad’s water storage capacity and will increase water pressure in its pipe network.

To date, the company has 38 pumping stations and 37 reservoirs throughout its concession area.

Maynilad has initially allocated P219.8 billion for its capital spending for 2023 to 2027 which includes the construction of new water and wastewater plants, replacement and repair of old pipelines.

Maynilad, serves the cities of Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon. It serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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. — Ashley Erika O. Jose

SEC still keen on having 888 companies enter capital market

THE Securities and Exchange Commission (SEC) said it is on track to meet its goal of having 888 companies tap the capital market for core fundraising by 2024.

“To be honest, we need to reassess [the target], but it is still a goal we want to hit,” SEC Commissioner Kelvin Lester K. Lee said on the sidelines of the regulator’s 86th anniversary and recognition ceremony on Nov. 29.

The capital market entries include all publicly accessible fundraising such as crowdfunding and normal trading exchange, according to Mr. Lee.

The commissioner said the SEC is on track to achieve the target, but no figures were provided.

“Actually, if you count the crowdfunding numbers, malaki na po ‘yon (it’s already big),” Mr. Lee added.

He also said that companies can look forward to the release of environmental, social, and governance-related standards.

A SEC team is working on the draft of the Sustainable Responsible Investment fund and the ASEAN Sustainability Bond Standards, he added.

“I’m just waiting for the final draft to be given to me by my team and [we will pass it for approval] to the en banc,” Mr. Lee noted.

Meanwhile, in an issuance, the regulator ordered Beastnessallday Corp. to stop its operations, as it has been soliciting investments without securing the necessary license.

On Feb. 3, the regulator issued an advisory which warned the public not to invest in the entity, and it was followed by a show cause order issued on Feb. 21.

According to the issuance, the company has been enticing the public to invest as low as $1,200 or P50,000 with a promise of return of investment within a period of five months.

The guaranteed return or passive income offered by the entity ranged from 10% to 12% per month or a total of 50% to 60% for the entire five-month period.

“The members or investors need not do anything to receive these guaranteed returns; all they have to do is part with their initial investments and wait for the five-month period to end,” the SEC said.

“Its act of offering securities to the public thus constitutes a clear violation of Section 8 of the Securities and Regulation Code,” the regulator said.

The order will prohibit the corporation, its President Angelo Diez Parian, as well as its representatives to transact in any business involving funds in its depository bank or any non-bank financial institution.

SEC said that Beastnessallday may file a verified motion to lift the cease-and-desist order within five days from the receipt of the order. — Justine Irish D. Tabile

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