SM Supermalls honors Super Pinoys this June

June 9, 2023 | 1:40 pm

One of the most important events in Philippine history is the declaration of our independence as a nation. As we inch closer to Independence Day, Filipinos have already started to commemorate the heroism of every Super Pinoy who fought mightily for our freedom.

In celebration of the Philippines’ 125th Independence Day, SM Supermalls will be holding major events and activities to keep the Super Pinoy spirit alive and burning starting on May 28.

Flag-Raising Ceremonies

SM malls across the country will be simultaneously holding flag-raising ceremonies during National Flag Day on May 28 and Independence Day on June 12, respectively. Participants are encouraged to wear the colors of the Philippine flag which signify truth, patriotism, and valor. After the ceremony, a short program will follow featuring Filipino modern pop music. Check your favorite mall’s Facebook page for schedules and venues.

Score the best deals and treats

From June 1 to 12, a sumptuous Pinoy food trip will welcome shoppers in SM malls. Enjoy numerous food promos and dining deals in indoor and al fresco dining spots decked in Filipiniana.

After a hearty meal, shop ‘til you drop as the Super Pinoy Deals will give you the best offerings at SM. Whether you shop in-mall or online via the SM Malls Online and SM Deals apps, you can score amazing promos on the latest tech, gadgets, and fashion.

But wait, there’s more. From June 9 to 12, SM unleashes the best deals for all Super Pinoys, with the Super Pinoy Independence weekend sale!

Celebrate Pinoy Pride on IG

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As you cap off the Independence Day festivities, don’t forget to check out the Super Pinoy Photo Spots. Tons of creative and fun photo spots will be showcased, plus Philippine Pop (P-Pop) music will be blasted through the mall speakers. Take photos, snap reels, and other creative content in these spots and tag us @SMSupermalls so we can feature you on social media.

This June, SM Supermalls will keep freedom, future, and history alive with all these Independence Day activities. Make sure you visit an SM mall near you to celebrate being a Super Pinoy in all ways possible.

For more information, check out www.smsupermalls.com or follow @smsupermalls on all social media platforms.

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BSP cuts reserve ratio, flags rate lull

June 9, 2023 | 12:34 am

By Keisha B. Ta-asan, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) on Thursday cut banks’ reserve requirement ratio effective June 30, while signaling that it would not touch the key rate.

The central bank would cut the ratio for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 9.5%, BSP Governor Felipe M. Medalla told reporters.

It will also cut the ratio for digital banks by 200 bps to 6% and by 100 bps for thrift banks, and rural and cooperative banks to 2% and 1%, respectively.

“There will be some liquidity effects, that’s why we are planning to introduce the 56-day bills on that point so that we can mop up any excess liquidity effects of that cut in reserve requirements,” Mr. Medalla said.

The central bank will offer 56-day securities on June 30, along with the auction of the 28-day debt, to mop up excess liquidity in the financial system.

“This operational adjustment is in line with the BSP’s ongoing efforts towards a more active and flexible approach to liquidity management through market-based monetary operations,” the BSP separately said in a statement.

It is committed to bringing down the reserve requirement ratio of big banks to single digits by 2023.

The central bank last cut the ratio in 2020 — by 200 bps for big banks in April that year and by 100 bps for thrift and rural banks three months later.

The reserve ratio cut is meant to facilitate the central bank’s shift to market-based instruments for managing liquidity in the financial system, particularly the term deposit facility and BSP securities.

“The reduction in reserve ratios is intended to coincide with the expiration of alternative modes of compliance with reserve requirements by end-June 2023 and thereby ensure stable domestic liquidity and credit conditions,” the BSP said.

During the pandemic, the Philippine central bank allowed lenders to count their lending to micro, small and medium enterprises (MSME) and pandemic-hit large enterprises as part of their compliance with the reserve requirement for deposit liabilities and substitutes.

The pandemic relief will expire on June 30.

The reserve ratio cut will infuse about P325 billion into the financial system, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a note.

But this would be siphoned off with the coming 56-day BSP securities to help stabilize the peso and inflation “given the need to manage any potential inflationary impact should there be more pesos infused in the local financial system,” he said.

The central bank is also fulfilling its promise to bring down big banks’ reserve ratio to single digits to better align with other countries in the region, he added.

RATE PAUSE
“The latest move was a surprise given that the BSP has been telegraphing a 200-bp cut in the reserve requirement ratio previously,” Domini S. Velasquez, chief economist at China Banking Corp., said in a Viber message.

“But it might be because of their revised estimates on the effect of the expiration of the relief extended to MSMEs,” she said. “Given BSP’s statement, we do not expect any change in monetary policy or do not interpret this as easing of monetary policy in this period of still elevated inflation — very far still from the target of 4%.”

The lower reserve requirements do not signal a shift in the BSP’s policy settings, according to the central bank.

“The BSP continues to prioritize bringing inflation back towards a target-consistent path over the medium term and will continue to signal its monetary policy stance through the key policy interest rate,” it said.

Mr. Medalla said the Monetary Board would likely keep rates at 6.25% due to easing inflation. “The pause is very likely to continue because the recent data actually is consistent.”

Last month, the Monetary Board paused its aggressive monetary tightening and signaled it would keep the key rate on hold until the third quarter. The BSP has raised policy rates by 425 bps since May last year to tame inflation.

Inflation cooled for a fourth straight month in May to 6.1% — the lowest in a year. Still, it breached the central bank’s 2-4% goal for the 14^th straight month. To date, inflation has averaged 7.5%.

Mr. Medalla said any cuts in the key rates would depend on the actions of other central banks including the US Federal Reserve, which could weaken the peso.

“If inflation is quite low, the consideration of the exchange rate effect becomes weaker, then that could result in a cut for the year,” he said.

If inflation is just “near the edge” of the 2-4% target, “we cannot ignore the potential exchange rate effects of rate cuts.”

The US central bank has cut borrowing costs by 500 bps since March last year, bringing the Fed fund rate to 5-5.25%. The Fed is set to meet on June 13-14.

“If we think it’s still uncertain, then we will not cut,” Mr. Medalla said. “It will depend on the data, and it will depend on which risk we are more afraid of.”

The BSP will meet on June 22 to discuss policy.

April factory output rises by 8.2% on solid demand

June 9, 2023 | 12:33 am

Factory worker — A worker is seen inside a manufacturing plant in Sto. Tomas, Batangas, March 1, 2023. — PHILIPPINE STAR/KRIZ JOHN ROSALES

MANUFACTURING OUTPUT in the Philippines rose to a three-month high in April amid strong domestic demand.

Factory output, as measured by the volume of production index (VoPI), went up by 8.2% year on year, data from the local statistics agency released on Thursday showed.

This was higher than 3.4% in March. The output fell by 1.3% a year earlier.

The VoPI fell by 8.9% in April from a month earlier. Stripping out seasonality factors, production volume rose by 2.9% month on month after a 1.1% decline in March. To date, factory output has risen by 6.7%, slower than 49.2% a year earlier.

S&P Global’s Philippine Manufacturing Purchasing Managers’ Index (PMI) eased to an eight-month low of 51.4 in April. A reading above 50 signals improvement, while anything below 50 shows the opposite.

Robert Dan J. Roces, chief economist at Security Bank Corp., attributed the manufacturing output expansion to a strong domestic demand that increased production, recovering exports and public investments in infrastructure.

In an e-mail, he also said the April results would contribute to economic growth this quarter given manufacturing’s big share in economic output.

The Philippines grew by 6.4% in the first quarter, the slowest in two years though it was within the government’s 6-7% target.

The manufacturing sector contributes about a fifth to the economy.

In the report, the Philippine Statistics Authority said the top three contributors to April’s growth were the heavily weighted food products at 14.7%, transport equipment at 38% and other nonmetallic mineral products at 15.7%.

Other sectors that posted increases that month were basic metals at 29.3%; coke and refined petroleum products at 15.3%; other manufacturing and repair and installation of machinery and equipment at 27.1%; printing and reproduction of media at 50.5%; and wood, bamboo, cane, rattan articles and related products at 16.9%.

Mr. Roces said manufacturing output likely continued to improve in May. “The factors that contributed to the growth in April remain in place, and no major disruptions are expected in terms job creation and consumption patterns.”

Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said while inflation driven by rising oil prices and geopolitical issues could affect manufacturing growth, output growth would likely continue in the coming months.

“Slowly but surely, the improvement of our output will continue,” he said in Filipino. — T.C.S. Migriño

Philippine lenders’ April bad loan ratio worsens

June 9, 2023 | 12:32 am

BAD LOANS of Philippine banks rose in April, bringing their nonperforming loan ratio to the highest in seven months, the central bank said on Thursday.

The banking industry’s gross bad loan ratio increased to 3.41% from 3.33% in March, though it was lower than 3.93% a year earlier, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Bad loans in April rose by 3.05% to P427.265 billion from a month earlier but fell by 4.5% from a year earlier.

Banks’ gross loan portfolio grew by 9.9% to P12.52 trillion from a year earlier and by 0.6% from a month ago.

“Rapid-fire rate hikes are starting to manifest in these numbers as servicing debt becomes more challenging with all the rate hikes,” Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said in a Viber message.

The Monetary Board has raised policy rates by 425 basis points to 6.25% since May last year. It paused its aggressive tightening cycle last month, and has signaled it would keep rates on hold until the third quarter.

The pickup in banks’ bad loans might also have to do with higher inflation and the risk of recession in the US, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Inflation slowed for a fourth straight month in May to 6.1%, the lowest in a year.

Based on BSP data, past due loans rose by 4% to P516.02 billion from a year earlier. These accounted for 4.12% of borrowings, down from 4.19% a year earlier.

Restructured loans fell by 4.6% from a year earlier to P325.01 billion, cutting the ratio to 2.59%. The industry’s bad loan coverage ratio stood at 86.23%, up from 77.39% in April 2022.

“With rates elevated, we could see nonperforming loans increase in the next few months as the full impact of policy tightening takes effect,” Mr. Mapa said. — Keisha B. Ta-asan

GlobalSource keeps growth forecasts as inflation slacks off

June 9, 2023 | 12:31 am

Makati city-skyline — STOCK PHOTO | Image by Sean Yoro from Unsplash

GLOBALSOURCE PARTNERS, Inc. kept its Philippine growth forecast for 2023 and 2024 as it lowered its inflation outlook for this year, but said risks remain amid a looming global recession.

In a report dated June 7, the research consultant said it expects the economy to expand by 5.5% this year, which is below the government’s 6-7% goal.

“We still expect the gross domestic product (GDP) to expand by 5.5% for the full year as inflation decelerates, interest rates stabilize and the rebound in tourism strengthens, gaining from China’s reopening,” GlobalSource analysts Romeo L. Bernardo and Maria Christine Tang said.

Robust consumption supported by remittances and local job opportunities would also drive economic growth, they said.

Inflation cooled for a fourth straight month in May to 6.1%, the lowest in a year. Still, it breached the central bank’s 2-4% target for the 14^th straight month. Inflation has averaged 7.5% to date.

GlobalSource expects inflation to average 5.5% this year, lower than the 6.5% forecast it gave in March. This matches the central bank’s full-year forecast.

But high interest rates have started to work their way through the economy, it said. Policy rates are also unlikely to fall quickly in the near term due to sticky inflation.

The Bangko Sentral ng Pilipinas (BSP) has raised the key rate by 425 basis points (bps) since May last year to tame inflation. Last month, the Monetary Board kept it at 6.25%, while signaling that it would keep it on hold until the third quarter.

GlobalSource expects the Philippine economy to expand by 5.8% in 2024, still below the government’s 6.5-8% goal.

“We had previously penciled in a higher 5.8% growth forecast for 2024 as inflation returns to target, monetary policy eases and financial conditions improve,” it said. “We are keeping this for now but taking note that downside risks are building up that threaten the economy’s climb.”

These risks include a recession in the US, weaker-than-expected China recovery and a possible worsening of the war in Ukraine, which could lead to another round of high inflation.

“In a perfect storm of further slowdown in global growth, war-induced high commodity prices and financial conditions remaining tight under risk-off conditions, it will be hard to shrug off the negative impacts on the local economy, including weaker consumer and business confidence and less room for monetary policy support,” it said.

The Philippine economy expanded by 6.4% year on year in the first quarter, the slowest in eight quarters.

The BSP is unlikely to cut borrowing costs this year, but a rate cut by end-2023 may be considered if food prices stabilize and core inflation eases faster, GlobalSource said.

Prices of heavily weighted food and nonalcoholic beverages rose by 7.4% in May, easing from 7.9% in April. Food inflation alone fell to 7.5% from 8%.

Core inflation, which excludes volatile food and fuel prices, slowed to 7.7% last month from 7.9% a month earlier. It has averaged 7.8% this year.

A rate cut this year may also happen if the US Federal Reserve starts cutting its own interest rates. The Fed, which has raised borrowing costs by 500 bps since March last year to 5-5.25%, will meet on June 13-14 to discuss policy.

Meanwhile, outgoing central bank Governor Felipe M. Medalla would probably be reappointed or replaced by Monetary Board member Eli M. Remolona, Jr., GlobalSource said, citing the grapevine.

Mr. Medalla has served two terms as a member of the Monetary Board and is serving the unfinished term of his predecessor, Finance Secretary Benjamin E. Diokno that ends on July 3.

Mr. Remolona has spent 14 years at the Federal Reserve Bank of New York and US Federal Reserve Board. He also spent 19 years at the Bank for International Settlements (BIS), half of which was as BIS regional head for Asia and the Pacific.

Four Monetary Board seats will be left vacant by July. — Keisha B. Ta-asan

Lazada, a partner of sellers and nanopreneurs for business growth

June 9, 2023 | 12:10 am

Whether with big brands or as “nanopreneurs” managing their small shops, Lazada provides sellers with an online marketplace to set up and expand their business in the digital space.

With Lazada’s curated solutions and campaigns, entrepreneurs are supported in growing their business and offering their customers the best value and convenience.

Pauline Castro, head of traffic strategy at Lazada Philippines, shared that the e-commerce platform continuously listens to its sellers to understand their needs and finds the best solutions to help them make the most of their investment.

“We act as their business partners, providing uncompromised service to our sellers with our wealth of tools and programs which enable their growth and success on the platform.” Ms. Castro said.

Lazada continues to nurture its growing community of sellers by supporting them in three areas: technology, people, and marketing solutions and mechanisms.

“The balance of these three will position our sellers to break through the market,” Ms. Castro said.

Technologies empower sellers right from the start of their business journey with Lazada. With the help of data-driven marketing and operating tools, Lazada helps sellers gain insights about their buyers, which eventually could open opportunities for their growth. And when sellers eventually decide to expand their businesses, Lazada’s Business Advisor serves as their guide to the emerging opportunities to leverage.

Lazada also understands that having help from people is valuable. Hence, it builds a strong interpersonal bond with its sellers, giving them service, advice, and programs that can support them to succeed.

Lazada holds several engagement programs for sellers and it provides a training portal that provides high-quality on-demand educational content, which help sellers better manage their business.

In addition, account managers also directly reach out to sellers to provide hypercare support. Having a holistic understanding of their customers, the team gives sellers invaluable advice that could help address their pain points and allow them to grow even more.

“We take inspiration from these conversations and relationships to keep evolving and developing the technology. We make sure we are able to respond to whatever our sellers need to grow and accelerate,” Ms. Castro said.

Lazada also continues to drive innovations to enhance the shopping experience, allowing its sellers to reach more customers. These include mechanics such as fast and free shipping, cashback, and their newest personal shopper, LazzieChat.

Just recently launched, LazzieChat is an e-commerce chatbot that merges Lazada’s AI technology and platform with the language capabilities of OpenAI and ChatGPT. LazzieChat is able to have a natural conversation with shoppers and share personalized product recommendations, which in turns enhances discoverability for the products sold by sellers in the platform.

Moreover, Lazada is excited to offer bigger and better campaigns, starting with the Lazada 6.6 Wow Sulitpid Sale.

“Mega campaigns play a vital role in driving success for our sellers. It’s also our way of signaling to our sellers that we continue to invest in their growth and we want them to sustain their momentum and succeed for the rest of the year. And 6.6 is just the beginning,” Ms. Castro said.

Lazada further delivers the best prices and online shopping experience during the 6.6 Wow Sulitipid Sale, which will run from June 6 to 8, with an extended sale from June 9 to 11.

Several sellers can testify to how their businesses have continued to thrive in the online marketplace Lazada provides.

Among these entrepreneurs is Ivlyvyn Fabia of Lebzyd.ph, a clothing store that she and her husband opened in Lazada. Pursuing entrepreneurship on the online platform gave her access to a wider market while having the flexibility to balance business and family life.

Mars Kaw, the entrepreneur behind the hardware shop Buildmate, is also among the sellers who found success through Lazada. In spite of the initial challenges in selling on the platform in 2015, she tried to do online selling again with Lazada two years later, and later on became a Top Marketplace General Merchandise Seller and a Lazada Awards Hall of Famer.

Lazada regards sellers as the heart of the platform’s operations, through which customers keep coming back to the platform to experience. Backed by an efficient end-to-end fulfilment ecosystem and coupled by its innovative tools to support the growth of sellers, Lazada continues to bridge sellers and customers and provide a superior experience on both ends.

Want to start your journey as a Lazada seller? Visit https://lzd.co/LazPHSSU today! Signing up is easy–you can count on Lazada to support you in your success as an entrepreneur.

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Far East Holdings set to acquire Top Frontier shares for P10.86B

June 9, 2023 | 12:09 am

TOP FRONTIER Investment Holdings, Inc. has agreed to the subscription of shares by Far East Holdings Inc. valued at about P10.86 billion or an equivalent of around 13.5% of its current outstanding shares.

In a regulatory filing on Thursday, Top Frontier said the subscription agreement, which the two entered into on June 7, covers 45 million of its unissued common shares priced at P241.42 apiece.

The shares are to be fully paid in cash on or before June 30, 2023, or such other date as will be agreed upon by the transacting parties.

Far East Holdings is reportedly led by Ramon S. Ang, who is president and chief executive officer of Top Frontier.

In Top Frontier’s public ownership report disclosed on Thursday, Mr. Ang currently holds 75,887 common shares of the holding firm, making him the board director with the second-biggest shareholding at 0.02%, next only to the 59.96% of Iñigo U. Zobel, its chairman.

Top Frontier said it plans to secure approval from its shareholders on the issuance of the subscribed shares and the filing for their listing on the Philippine Stock Exchange.

Additionally, both companies have entered into an agreement for the amendments of the terms and conditions of the perpetual securities of Top Frontier.

This includes the change in the distribution rates and the inclusion of a convertibility feature of the perpetual securities into common shares of Top Frontier at a conversion price of P289.70 per common share.

“[These] amendments shall be effective on 20 June 2023 for the Perpetual Securities (Series “A”), 21 June 2023 for the Perpetual Securities (Series “B” and Series “C”), and 30 June 2023 for the Perpetual Securities,” Top Frontier said.

Top Frontier earlier said that the company’s board of directors approved the subscription of common shares, the appointment of authorized signatories for the transaction, and the issuance of the shares after the receipt of full payment.

Its board likewise approved the valuation of the company’s common shares based on the independent valuation conducted by FTI Consulting, Inc.

The independent report stated that at the low end, the company’s common shares are valued at P196.14 apiece, at the high end at P286.7 each, and at a midpoint at P241.42 apiece.

Top Frontier is the parent company and the owner of 61.77% or the controlling stake in San Miguel Corp. (SMC), one of the country’s largest listed conglomerates, as of April. Privado Holdings Corp. holds the second-biggest share at 15.67%.

SMC is engaged in industries such as beverage, food, packaging, property, fuel and oil, energy, infrastructure, and banking. Mr. Ang is also the president of SMC.

In the first quarter, SMC reported a net income of P17.7 billion, up 27% from P13.9 billion in the same period last year, due to broad-based growth in its business segments. Its top line for the three months hit P346.7 billion, up 9% from the same period last year.

Top Frontier shares fell by 0.16% or 20 centavos to P126.80 apiece on Thursday. — Adrian H. Halili

Bo’s Coffee plans to open up to 25 more stores in 2023

June 9, 2023 | 12:08 am

HOMEGROWN COFFEE brand Bo’s Coffee is targeting to increase the number of its stores to 150 this year, its top official said.

On the sidelines of the Franchise Asia Philippines 2023 International Conference, Bo’s Coffee Founder, Chairman and Chief Executive Officer Steve D. Benitez said that he expects the same growth in franchisees this year.

“Last year we did very well. Last year was one of our highest growth years,” he said, citing the opening of 25 stores, most of which are franchised.

“I think that is also because of the economy opening up and at the same time people are looking at putting their money where they can earn more rather than putting it in a bank where interests are very low,” he told BusinessWorld.

This year, he said the outlook for the business is the same as last year.

“We will grow as many stores this year. We have 10 in the pipeline already and there are five under construction. So, we are on track to hit that number,” he said.

“We are actually looking at 25 stores. We should hit around 150 total stores this year and we are currently at 130 stores. If everything pans out as planned, we could go beyond 150,” he said.

Mr. Benitez said that the new stores will be distributed across the country with the majority in Luzon.

“It will be all over the Philippines. Majority will be in Luzon — North Luzon, South Luzon, and a little in Metro Manila — but also a lot in Visayas and Mindanao,” he said.

Mr. Benitez said the company is on track with its growth targets as of mid-year.

“I think the momentum will continue to grow for the next two to three years. We are still very bullish about our growth this year, in fact I think as far as financial performance is concerned, we are already beyond pre-coronavirus disease,” he said.

INITIAL PUBLIC OFFERING
Mr. Benitez said that the company, WS and Landin, Inc., is not looking at entering the equity market yet.

“It will not be in the near future. We have a private equity partner called Navegar and they help us grow,” he said.

“The equity market could be a next stage, but I think it is good to grow the business first to a level where it is ready to be listed,” he added.

WS and Landin is the company behind brands such as Bo’s Coffee, Daily and Urbanica Milk Coffee. — Justine Irish D. Tabile

CTA backs denial of wind farm’s refund

June 9, 2023 | 12:07 am

THE COURT of Tax Appeals (CTA) has stood by its decision that denied the refund claim of EDC Burgos Wind Power Corp. worth P34 million allegedly representing its excess input value-added tax (VAT) traced to zero-rated sales for the period covering January to June 30, 2014.

In a 20-page decision dated June 2 and made public on June 6, the CTA full court said the firm failed to show that its sale of power generated qualified for a 0% VAT rating.

“We hold, instead, that a Certificate of Compliance (CoC) from the Energy Regulatory Commission (ERC) is required to prove that its sale of power generated or produced from renewable sources of energy qualifies as VAT zero-rated sales or effectively zero-rated sales.”

It noted that while EDC Burgos was able to secure the certificate, it was only after it started its commercial operation on Nov. 11, 2014.

Under the Electric Power Industry Reform Act of 2001 (EPIRA), renewable energy (RE) developers must secure a CoC from the ERC before their operations begin to categorize their sales as VAT zero-rated sales that do not translate to output tax.

The firm operates the 150-megawatt Burgos wind farm in Ilocos Norte, the biggest in the country.

EDC Burgos argued that obtaining a CoC from the ERC was not a requirement to qualify for a VAT zero rating on the sales it made during the period.

Citing the EPIRA, the tax tribunal said RE developers must obtain the necessary documents and certification before they can avail of the incentives provided under the law.

“Simply put, a renewable energy developer which generates power and sells the same is required to secure a CoC from the ERC,” it reiterated.

In a separate dissenting opinion, Associate Justice Roman G. Del Rosario said the firm need not secure a CoC since it anchored its refund claim on the Renewable Energy Law of 2008, not EPIRA.

“Accordingly, the requirement to submit a COC from the ERC is only a condition for availing the VAT zero-rating incentive on claims for refund based on the EPIRA,” he said, voting to grant the refund claim.

Citing Supreme Court jurisprudence, the magistrate added that since the claim was not filed under EPIRA, the RE developer only needs to show that it is a VAT-registered entity and that it has complied with the invoicing requirements under the Tax Code.

“Based on the aforequoted pronouncements, where the zero-rated VAT incentive invoked is not based on the EPIRA, the taxpayer claimant need not comply with the requirements under the EPIRA,” Mr. Del Rosario said. — John Victor D. Ordoñez

Globe expands 5G roaming to 67 countries, territories

June 9, 2023 | 12:06 am

GLOBE Telecom, Inc. has expanded its 5G roaming coverage to a total of 67 countries and territories and has partnered with international telecom providers.

“With a 5G footprint spanning 67 countries and territories, we are thrilled to offer customers fast and reliable connectivity while they travel the world,” said Coco Domingo, vice-president for postpaid and international business at Globe, in a press release.

“Now, you can skip the hassle of switching to a local SIM or bringing an extra device to stay connected. As customers regain confidence to explore once more, Globe will be there to deliver cutting-edge technology and innovative solutions to make their lives better — wherever they are in the world,” he added.

On Thursday, the company announced that its 5G roaming footprint now includes Austria, Malaysia, Macau, US Virgin Islands, Puerto Rico, Vatican City, Northern Ireland, Scotland, Wales, Russia, and Northern Marianas.

Meanwhile, travelers and foreign subscribers from Sri Lanka, Romania, Egypt, the Isle of Man, and Mexico may also enjoy Globe’s 5G roaming services when they visit the Philippines.

Its international 5G footprint is with different providers, some of which it has partnered with such as Hi3G in Denmark, SFR in France, Windtre in Italy, T-Mobile in the Netherlands, Slovak Telekom in Slovakia, Salt in Switzerland, and MEO in Portugal.

Postpaid subscribers may pre-register for their favorite data roaming promos a day before their trip through the GlobeOne application.

“They can opt for Roam Surf Longer Stay, which offers data roaming with longer validity ranging from three to 30 days and priced as low as P200 a day,” Globe said.

Globe postpaid roamers may also subscribe to Roam Surf 399, which offers the convenience of a daily flat rate that automatically renews every 24 hours.

Globe prepaid users can also register for a range of Roam Surf promos including the long validity Roam Surf Longer Stay offers via GlobeOne or GCash. — Justine Irish D. Tabile

SPNEC to break ground on solar farm expansion in Nueva Ecija

June 9, 2023 | 12:05 am

SP New Energy Corp. (SPNEC) expects to start construction for its over 3,000-hectare solar plant expansion in Nueva Ecija within the year, its top official said on Thursday.

“The company will break ground this year on the Nueva Ecija expansion, which will be wholly owned or controlled by SPNEC,” said the company’s President and Chief Executive Officer Leandro Antonio L. Leviste in a media briefing.

Mr. Leviste added that the company had invested the bulk of the proceeds from its capital-raising activities in the expansion. This includes the company’s P2.8 billion stock rights offering and Metro Pacific Investments Corp.’s initial investment of P2 billion.

“One of the directions that the company is taking is to focus our capital and investments on the projects that we have controlling stakes in,” he said.

Mr. Leviste said in a statement that the company has ongoing discussions on its shareholding arrangements in certain projects, to find solutions that will benefit all parties.

He said he could not disclose certain discussions out of “deference to the company’s partners.”

“We believe that it is in SPNEC’s interest to invest in projects where it has a controlling stake and that SPNEC is best served by allocating its capital to projects where this is the case,” he added.

The Nueva Ecija expansion is located in the same area as its 350-hectare solar farm its first project in the province.

The company said that it had been consolidating land and permits since 2016 when it applied for its first solar energy service contract with the Department of Energy in the area.

“The clustering of projects in the same area also supports the development of transmission, which would extend over 60 kilometers to connect to [National Grid Corp. of the Philippines’] substations that supply the greater Manila area,” the company said.

It added that the new expansion will bring its total land area to 3,500 hectares, which could make it “one of the world’s largest solar power plants.”

The company was recently suspended by the Philippine Stock Exchange as its public float decreased below 20%. — Adrian H. Halili

BDO eyes double-digit growth in assets under management

June 9, 2023 | 12:04 am

BDO UNIBANK, Inc.’s trust unit is targeting double-digit growth in its assets under management (AUM) this year, an official said.

The increase will be driven by “good returns generated by clients from fixed-income instruments and time deposits due to higher inflation print, growing Philippine economy, and banks competing for funds to shore up deposit levels,” BDO Trust and Investments Group Senior Vice-President and Head Rafael G. Ayuste, Jr. said in an e-mail.

“Clients are locking in longer tenor bonds for the annuity income,” Mr. Ayuste added.

Headline inflation eased for a fourth straight month to 6.1% in May from 6.6% in April. Still, this was faster than the 5.4% print in the same month a year ago.

This was the slowest rate seen in a year or since the 5.4% in May 2022. Inflation has been on a downtrend since hitting 8.7% in January.

For the first five months, headline inflation averaged 7.5%, still well above the central bank’s 2-4% target and 5.5% forecast for the year.

Meanwhile, Philippine gross domestic product (GDP) grew by 6.4% in the first quarter, slower than the 7.1% in prior three-month period, and the 8% expansion in the first quarter of 2022.

The government targets 6-7% GDP growth this year. The economy expanded by 7.6% in 2022.

Mr. Ayuste said downside risks include geopolitical issues abroad.

“These events cause heightened volatilities in both equities and fixed-income markets, both locally and globally,” he said.

He said the Sy-led bank’s consolidated AUMs stood at around P1.9 trillion as of May.

BDO’s attributable net income grew by 40.44% year on year to P16.528 billion in the first quarter as it recorded growth across its core businesses.

Its shares rose by P1.15 or 0.84% to end at P137.80 apiece on Thursday. — A.M.C. Sy