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Kaya Founders plans to invest in up to 70 early-stage startups

KAYAFOUNDERS.COM

VENTURE capital firm Kaya Founders is planning to invest in 50 to 70 early-stage startups in the Philippines and other Southeast Asian countries, its managing general director said.

The firm has raised $12 million in a recent funding round.

“We will essentially be continuing what we have been doing over the past two years, but just on a larger scale, with more dry powder to deploy,” Kaya Founders Managing General-Director Paulo Campos III said in an e-mailed reply to questions on June 16.

Kaya Founders was founded in 2021 by Mr. Campos, the former chief executive officer (CEO) of ZALORA Philippines, along with Lisa Gokongwei-Cheng, the president of Summit Media and senior vice-president of JG Summit, and Constantin Robertz, the CEO of Locad and former CEO of Entrego.

It prioritizes startups that leverage technology to address significant issues in the country, added Mr. Campos.

Recent investments have included companies digitizing the food value chain, healthcare solutions that address unmet needs, and solutions that enable the future of work.

The firm, according to Mr. Campos, is sector-agnostic.

“Instead of focusing on a particular sector, we develop strong beliefs based on trends we observe and gaps we identify,” he said.

The company has two upcoming funds aimed at advancing its mission of helping founders achieve scale and impact: the Zero to One Fund, which will focus on accelerating ventures from Day 0, and the One to Ten Fund, which will invest in more mature opportunities showing signs of product-market fit and a path to profitability.

The investment range is expected to be $150,000 to $500,000.

In addition to providing capital, the company offers support in terms of legal services, educational materials, and product development. It also provides startup founders with advice from its partners.

As a venture capital firm, Kaya tracks metrics related to company performance and portfolio value to deliver favorable returns to investors, Mr. Campos said.

However, the firm’s success is determined by evaluating the value it brings to its founders, he told BusinessWorld. “[H]ow we are able to enrich and contribute to the broader tech ecosystem, and whether we are able to advance the goals and values we ultimately stand for — including the digitalization of critical services, job creation, and the economic development of the country at large.” — Patricia B. Mirasol

Philippines: Balance of payments (BoP) position

THE COUNTRY’S balance of payment (BoP) position stood at a deficit of $439 million in May, narrower than the $1.61-billion gap a year earlier, the Bangko Sentral ng Pilipinas (BSP) said. Read the full story.

Philippines: Balance of payments (BoP) position

Yamato: Passion, high energy, and good feeling

YAMATO THE DRUMMERS OF JAPAN

THEATER REVIEW
Yamato: The Drummers of Japan LIVE! Philippine Tour 2023

EVEN AFTER over 4,000 performances in 54 countries, a world-famous taiko drum group from Japan does not resort to making less of an effort. If anything, there’s much, much more to give.

Such is the mindset of the Yamato drummers.

“Taiko is an instrument that has accompanied the Japanese people since ancient times,” Masa Ogawa, Yamato’s artistic director, said before the troupe’s gala night performance in Manila (it had three performances last weekend in Manila and Davao). “Its deep reverberations are meant to inspire.”

A SHOW TO REMEMBER
Founded in Nara prefecture in Japan in 1993, Yamato has consistently toured the world for six to 10 months every year, showcasing unique choreography that fuses upbeat and complex drumming compositions, traditional dance, comedic flair, and pure passion.

This has cemented their legacy as thrilling performers that one must watch if they’re in town. For Filipinos, the 2023 tour came just in time for the 50th Year of ASEAN-Japan relations.

“The live sound of Japanese drums will provide an authentic cultural experience that has been missed due to the pandemic,” said Ben Suzuki, president of The Japan Foundation, Manila, in a speech during the gala on June 10 at the Theater at Solaire.

“We hope it encourages people and celebrates this memorable anniversary of the relationship between Japan and the Philippines.”

With this motivation, the Yamato drummers gave Filipinos a show to remember.

The exhilarating production was driven by the iconic, gigantic taiko drums being struck repeatedly in rhythms that get the heart pumping. But it’s the drums with lighter tones like the okedo, and even smaller ones, the shime-daiko, that are used to kick up waves of excitement.

Whether the scene or piece is impressive and solemn, or easygoing and fun, the dynamic movements, facial expressions, and lighting reflect the pure energy injected into the performance by all involved.

Each member is totally in sync and in harmony. The power of every individual, male and female, adds up to the intense power of the group — even amid the hilarious comedic bits where they try to one-up each other.

FOR FILIPINO FANS
In conversations prior to the performances, Mr. Ogawa said that everyone is “energized and excited” to play for Filipinos.

“Our mission is to share the beauty of taiko with the world and make it resonate more,” he later said to audiences.

This year’s version at Solaire Theater, which was packed with Filipinos who braved the rain to be there, ended with the Yamato performers’ version of the Philippine national anthem on Japanese instruments — the three-stringed shamisen, and the shinobuen flute.

After an adrenaline-filled show, the Yamato drummers ended on a heartwarming note.

The English-speaking (and yes, some Filipino-speaking!) members reiterated their gratitude to the crowd and expressed the infectious joy of sharing their passion with others such that it was impossible to leave the theater feeling anything else.

While it’s unclear if or when the troupe will come back to spread warmth and good feeling in the Philippines again, it’s clear that many are hoping they’ll return. — Bronte H. Lacsamana

Manila falls 11 places in the costliest city list for expats

The Philippine capital city was tagged the 133rd most expensive city out of 227 localities, down 11 spots from the previous year’s ranking of 122nd out of 227. The cost of living in Metro Manila became relatively cheaper for employees working abroad, based on Mercer’s 2023 Cost of Living Survey.

Manila falls 11 places in the costliest city list for expats

How PSEi member stocks performed — June 20, 2023

Here’s a quick glance at how PSEi stocks fared on Tuesday, June 20, 2023.


Peso strengthens further versus dollar

THE PESO strengthened further against the dollar on Tuesday ahead of the Bangko Sentral ng Pilipinas’ (BSP) rate-setting meeting this week.

The local currency closed at P55.52 versus the dollar on Tuesday, climbing by 22 centavos from Monday’s P55.74 finish, data from the Bankers Association of the Philippines’ website showed.

This was the peso’s strongest close since its P55.25-per-dollar finish on May 8.

The local unit opened Tuesday’s session at P55.75 per dollar. Its weakest showing was at P55.84, while its intraday best was at P55.52 against the greenback.

Dollars traded rose to $1.21 billion on Tuesday from the $1.11 billion seen on Monday.

“The peso appreciated amid likely hawkish signals from the BSP despite expectations of maintaining local policy rates unchanged this week,” a trader said in an e-mail.

All 15 economists in a BusinessWorld poll last week expected the Monetary Board to keep the key rate at a near 16-year high of 6.25% at its meeting on Thursday.

If realized, this would be the second straight meeting the BSP will leave interest rates untouched. The central bank raised borrowing costs by 425 basis points from May last year to March this year before pausing at its May 18 meeting.

The peso was also supported by the dollar’s decline on Tuesday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The dollar index went down by 0.1% to 102.34 on Tuesday.

Mr. Ricafort added that the peso strengthened amid the seasonal increase in remittances from overseas Filipinos ahead of the start of a new school year.

For Wednesday, the trader said the peso could weaken anew against the dollar amid potentially hawkish remarks from St. Louis Federal Reserve President James B. Bullard overnight.

The trader sees the peso moving between P55.45 and P55.70 a dollar on Wednesday, while Mr. Ricafort sees it trading from P55.45 to P55.65. — AMCS

Local stocks slip as investors look for fresh leads

BW FILE PHOTO

PHILIPPINE HARES nded nearly flat on Tuesday as investors stayed on the sidelines amid a lack of fresh leads and ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting this week.

The Philippine Stock Exchange index (PSEi) slipped by 1.44 points or 0.02% to end at 6,448.90 on Tuesday, while the broader all shares index inched down by 1.70 points or 0.04% to close at 3,439.54.

“Philippine shares traded flat before the US reopened as investors are trying to gauge how last week’s strong market sentiment will hold up in a shortened trading week that is light on economic data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“On the other hand, local shares are still on the sidelines before the next central bank meeting, wherein many widely expect that the Monetary Board will keep the benchmark rate untouched,” he added.

Papa Securities Equity Strategist Manny P. Cruz said in a Viber message that stocks ended only slightly lower as last-minute buying trimmed intraday losses.

“For most of the day, the bourse has been trading in the red territory due to weakness in European equities amid renewed inflation worries in England due to sticky inflation and a tight labor market… Investors remained apprehensive ahead of the latest Monetary Board meeting,” Mr. Cruz said.

The BSP is expected to keep benchmark interest rates steady for a second straight meeting on Thursday after inflation eased further last month and the US Federal Reserve likewise paused its tightening cycle last week.

All 15 economists in a BusinessWorld poll held last week expect the Monetary Board to maintain the overnight repurchase rate at 6.25% during its June 22 meeting.

If realized, this would be the second straight meeting the BSP will leave interest rates untouched. The central bank had raised borrowing costs by 425 basis points from May 2022 to March 2023 to help bring elevated inflation down.

Headline inflation slowed to 6.1% in May from 6.6% in April. Still, this marked the 14th straight month that inflation breached the central bank’s 2-4% target.

For the first five months, inflation averaged 7.5%, well above the BSP’s 5.5% forecast for the year.

Most sectoral indices went up on Tuesday except for property, which dropped by 31.74 points or 1.2% to 2,607.61, and financials, which declined by 5.54 points or 0.3% to 1,830.04.

Meanwhile, services rose by 14.14 points or 0.92% to 1,536.71; mining and oil increased by 77.73 points or 0.78% to 9,997.45; holding firms went up by 22.91 points or 0.36% to 6,387.30; and industrials climbed by 10.52 points or 0.11% to end at 9,164.12.

Value turnover went up to P4.75 billion on Tuesday with 715.78 million shares changing hands from the P4.22 billion with 483.71 million issues traded on Monday.

Advancers outnumbered decliners, 92 versus 81, while 47 names closed unchanged.

Net foreign selling dropped to P302.71 million on Tuesday from the P496.22 million recorded on Monday. — A.H. Halili

Marcos warns of ‘modest’ agri gains being upended by El Niño

A farmer guides his carabao on dry and cracked farmland in San Juan town, Batangas, April 18, 2010. — REUTERS

PRESIDENT Ferdinand R. Marcos, Jr. said on Tuesday that the upcoming El Niño dry spell is threatening to upend “modest gains” made in agriculture in recent months.

In a speech at the 125th anniversary of the Department of Agriculture (DA), Mr. Marcos also promised to address the challenges agriculture continues to face, like “decreasing productivity, climate change (and) diminishing natural resources.”

The El Niño event, projected to emerge sometime between July and September, is expected to drag down growth in agriculture, which expanded 2.1% in the first quarter, a turnaround from the 0.3% decline posted a year earlier and a 1% contraction in the fourth quarter of 2022.

The last El Niño took place in 2019, causing as much as P8 billion worth of damage to agriculture.

Agriculture accounts for about a 10th of the Philippines’ gross domestic product.

Mr. Marcos, in his speech, said the DA must “continue to adopt and utilize the latest technologies and practices” to enhance agricultural productivity and attract foreign investment.

He said climate-mitigation practices and technology can make agriculture sector resilient to future shocks.

“Moving forward, the DA will continue to devise interventions to advance our agri-fishery practices, improve the competitiveness of our agri-fishery products, (and) further boost the income of our farmers and fisherfolk,” he said.

Mr. Marcos, who is also Secretary of Agriculture, promised to expand market reach for farmers “by enhancing our physical and our digital infrastructure (and) leveraging private sector investment.”

He said the DA should continue to engage in collaborative dialogue with experts, researchers, and rural workers to “solve the root causes of the lingering problems.”

The Philippines imports much of its food and farm inputs, making it vulnerable to imported inflation.

In a recent World Bank report, the Philippines ranked first in a group of 16 countries in terms of regressive output subsidies, followed by Mexico, Canada, Japan, and Vietnam.

“We have all heard the issues of food supply, of food prices, of supply chain problems. And these are all of the things that we have to overcome if we are going to be able to say that the DA has achieved its ultimate goal and that we are able to provide to Filipinos all of the food supply,” Mr. Marcos said, adding that the industry’s contribution to nutrition should be considered in assessing the DA’s success.

Mr. Marcos has been urged by opposition legislators to appoint his replacement as Secretary of Agriculture.

In a statement on Tuesday, ACT Teachers Party-list Rep. France L. Castro said the DA needs a full-time Secretary “who truly understands and knows the solutions to the agricultural as well as agrarian problems of the country.” 

“Unfortunately, the remedies being implemented by the DA under Marcos are mostly band-aid solutions and entail the importation of key agricultural products like rice, sugar, onions, and the like,” she said.

“Instead of helping farmers, such measures further mire them deeper into poverty but at the same time make agricultural importers richer,” Ms. Castro said. “Unless genuine agrarian reform coupled with full support of the government to farmers is implemented, (alongside the suspension of) land conversion, our agricultural sector will die even if President Marcos stays there up to 2028.”

The DA has addressed food inflation by, among other things, organizing subsidized stores allowing farmers to sell directly to consumers.

The Kadiwa stores allow sellers to offer low prices because the government pays for transport costs and other expenses.

Kadiwa stores have been accused of seizing markets from small- and medium-sized traders who had been weakened by the pandemic, with economists saying that any discussion of the program needs to consider the level of public funding it is receiving.

“It may still be fairly early to tell whether we are now realizing the benefits of prices saved vs. investment spent,” agroforestry researcher Ayn G. Torres told BusinessWorld earlier. — Kyle Aristophere T. Atienza

Trade dep’t considering development of ‘green’ aviation fuel from biomass

REUTERS

THE Department of Trade and Industry (DTI) said the Philippines could develop a sustainable aviation fuel (SAF) industry by tapping its biomass resources.

Trade Secretary Alfredo E. Pascual said he discussed the country’s SAF potential in talks with aerospace companies at the Paris Air Show on June 19.

The International Air Transport Association (IATA) defines SAF as liquid fuel that reduces carbon emissions by up to 80%.

The Paris Air Show was conducted for the first time after four years. The DTI did not reveal which companies Mr. Pascual met with, saying only that discussions with them are ongoing.

To the air show participants, he also touted reforms that have made the Philippines more investment-friendly, such as the amendments to the Public Service Act, Foreign Investment Act, and Retail Trade Liberalization Act; the passage of the Electric Vehicle Industry Development Act; and Executive Order No. 18, which created a green lane for expedited processing of strategic investments.

The DTI’s participation at the air show was part of an investment roadshow due to run until July 6. The roadshow seeks to promote the Philippines as a “viable investment destination” for companies from France, the UK, Belgium, the Netherlands, and Germany. — Revin Mikhael D. Ochave 

Catch landed at fish ports down 4.26% month on month in May

PHILIPPINE STAR/ MICHAEL VARCAS

THE catch landed at regional fish ports (RFPs) declined 4.26% month on month by volume in May due to the early onset of the rainy season, according to the Philippine Fisheries Development Authority (PFDA).

Fish landed at RFPs amounted to 42,814.19 metric tons (MT), down 4.26% from the record set in April of 44,721.05 MT.

“Following the recent passage of Typhoon Betty and widespread rain brought by the southwest monsoon (habagat), all PFDA ports delivered a sufficient supply of fishery products to their respective clients,” the PFDA said.

The Navotas Fish Port Complex unloaded 19,644.03 MT, down 15.14% from a month earlier, with the fishing season typically slowing down towards the end of May.

Fish landed at Lucena Fish Port Complex fell 4.90% month on month to 2,246.85 MT.

The catch landed at Bulan Fish Port Complex rose 17.14% month on month to 1,334 MT.

Fish volumes at the General Santos Fish Port Complex rose 6.75% month on month to 15,788.37 MT.

Zamboanga Fish Port Complex and Davao Fish Port Complex reported that volumes rose 5.24% and 4.07% month on month respectively to 965.65 MT and 441.40 MT. — Sheldeen Joy Talavera

Construction industry sentiment positive over next 12 months — survey

A worker cuts metal in a construction area in Binondo, Manila on March 24, 2022. — PHILIPPINE STAR/RUSSELL PALMA

PHILIPPINE construction executives had positive views of the industry’s outlook over the next 12 months, due to the strength of the economy, according to a survey conducted by construction management software company Procore Technologies.

The survey findings were released in a report, “How We Build Now: Technology Trends Shaping and Shifting Construction – Southeast Asia 2023,” which found that 95% of construction executives in the Philippines cited the “fast-moving economy and continuation of the current administration’s modernization efforts.” 

According to the report, 80% of Philippine respondents are expecting an increase in the number of projects over the next 12 months, while 83% see projects of higher value.

The report said the most-cited challenges by the construction industry executives were increasing raw material and equipment costs (46%); securing competitive bids and tenders at sustainable margins (35%); dealing with trade contractors, contracts, and payments (35%); staff management (32%); and increasing productivity to manage project volume (32%).

Procore commissioned independent research company YouGov to conduct the survey online between Jan. 31 and Feb. 22. The respondents were 876 construction industry executives from Singapore, Malaysia, and the Philippines.

“Industry confidence is resilient in the face of challenging market conditions, and expectations for growth are stronger in 2023,” YouGov Associate Director of Research Fumin Rianto said at a media briefing in Makati City on Tuesday.

Overall, the survey found that 88% of executives in the three countries expressed confidence in market conditions ahead, lower than the 94% posted a year earlier due to weakening confidence in Malaysia.

“Driving this optimism was expectations for the increase in both the number (73%) and value of projects (71%) over the same period,” Procore said in a statement. 

Procore found that 39% of Southeast Asian respondents are rethinking their contracting models to protect margins, while 37% are considering new payment methods, such as early payments at lower margins.

“A focus on risk management has become more important, especially in light of persistent challenges such as the increased cost of raw materials and equipment (44%) and winning competitive bids and tenders at a sustainable margin (32%),” Procore said. — Revin Mikhael D. Ochave

ERC says 48 power distributors applying for rate adjustments

MOREPOWER.COM.PH

THE Energy Regulatory Commission (ERC) is currently evaluating applications from 48 distribution utilities (DUs) for automatic cost adjustments and true-up mechanisms for the 2020-2022 period. 

ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said that the Commission is still evaluating whether more documents will be required from DUs.

“The applications will be evaluated by the ERC to validate the recovery of pass-through costs implemented by the DUs and confirm the true-up of other pass-through charges, if any,” the ERC said.

According to an advisory dated May 10, the ERC required all DUs in Luzon to file their over-under recoveries with the deadline set on May 30. 

“Failure of Luzon PDUs (private distribution utilities) and EC (electric cooperatives) to file their complete Over and/or Under Recoveries Applications, with the required supporting documents, within the said non-extendable period, shall be a ground for the imposition of administrative sanctions and penalties pursuant to pertinent ERC rules and regulations,” it said.

The ERC also noted that all PDUs and ECs which fail to submit required reports and supporting documents will not be allowed to impose any pass-through charges on consumers. 

The ERC said that about 20 Luzon DUs have not submitted any applications to date.

These are: Abra Electric Cooperative, Inc.; Albay Electric Cooperative, Inc.; First Bay Power Corp.; First Laguna Electric Cooperative, Inc.;  Ibaan Electric Corp.; Ilocos Norte Electric Cooperative, Inc.; Isabela I Electric Cooperative, Inc.; Isabela II Electric Cooperative; Kalinga-Apayao Electric Cooperative, Inc.; and Masbate Electric Cooperative, Inc.;

Nueva Ecija I Electric Cooperative, Inc.; Nueva Vizcaya Electric Cooperative, Inc.; Oriental Mindoro Electric Cooperative, Inc.; Pangasinan I Electric Cooperative, Inc.; Pampanga II Electric Cooperative, Inc.; Quirino Electric Cooperative, Inc.; San Fernando Electric Light & Power Co. Inc.; Ticao Island Electric Cooperative, Inc.; Zambales I Electric Cooperative, Inc.; and Zambales II Electric Cooperative, Inc.

Separately, the ERC said that it has started processing for approval the majority of 36 ancillary services procurement agreements (ASPAs) entered into by the National Grid Corp. of the Philippines (NGCP). 

It said that the grid operator issued notices of award for 36 ASPAs on April 18, of which 14 applications have been filed with the ERC and are awaiting hearing. Others have not yet paid filing fees, which are needed for the application to be deemed filed, and must still undergo pre-filing review, the ERC said. 

“The ERC is committed to facilitate the approval of the ASPAs to ensure that consumers continue to have access to reliable electricity,” the ERC said. 

In separate filings posted on ERC website, the NGCP is seeking the approval of ERC for the ASPA with Giga Ace 4, Inc.; MORE Power Barge, Inc.; Bac-man Geothermal, Inc.; and First Gen Hydro Power Corp.

According to Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, Ancillary Services are “services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code.” — Ashley Erika O. Jose

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