Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.
TOKYO — The yen sank against major peers on Monday after US payrolls data bolstered the case for further US Federal Reserve rate hikes, highlighting a growing disparity with Japan where the central bank continues to pin the benchmark yield near zero.
Meanwhile, the risk-sensitive New Zealand and Australian dollars weakened amid heightened US-China tensions over Taiwan, with Beijing a key trading partner for the Antipodean nations.
The yen slipped by 0.4% against the US dollar to 132.70, extending its decline from Friday, when data showed the US economy continued to add jobs at a brisk pace in March.
Ten-year Treasury yields reached 3.413% in shortened trading on Friday for the Easter holiday. The yield remained elevated at 3.3719% in Tokyo on Monday, when many markets in Asia as well as Europe will remain closed.
Against the euro, the yen slumped over 0.5% to 144.635. It fell roughly 0.3% versus sterling.
The dollar strengthened against the yen because of the continued strong growth in the US labor market despite inflation and sharp interest rate rises, Mizuho analysts Masafumi Yamamoto and Masayoshi Mihara wrote in a client note.
“Yields in places like the euro area, Britain and Australia will follow US yields higher, so there won’t be a big widening of the yield gap,” they said. “Relative to them, yield spreads will see a much bigger impact in Japan.”
However, the increase in jobs was less than the prior month and the rise in average hourly wages was less than economists forecast, which the Mizuho analysts said was not consistent with a sustained rise in US yields.
Barring an upside surprise in US consumer price data on Wednesday, the dollar has limited room to rise against the yen from current levels, they added.
New Bank of Japan Governor Kazuo Ueda takes over from Haruhiko Kuroda on Monday, and is widely expected to keep massive stimulus in place for the time being. He will give an inauguration speech at 7:30 p.m. JST (1030 GMT).
Meanwhile, the New Zealand dollar slumped about 0.7% to $0.62325, and the Aussie slipped by 0.13% to $0.6665. Stock and bond markets in both countries are closed for the Easter Monday holiday.
The dollar edged 0.05% higher to 6.8784 yuan in offshore trading.
China began three days of military drills on Saturday simulating precision strikes against Taiwan, the day after Taiwan President Tsai Ing-wen returned from a brief visit to the United States.
In other currencies, sterling slipped 0.02% to $1.2410, while the euro gained 0.02% to $1.0899. — Reuters
EDGAR “INJAP” SIA, who turned a chicken BBQ startup into one of the biggest Philippine restaurant chains, said his hotel venture is seeking to raise as much as $125 million this year to ramp up overseas expansion.
Hotel 101 Global Pte. Ltd. runs a hotel in Manila and has 10 others in various stages of development in the Philippines. Its first foreign project in Niseko, Japan opens in 2025, and the next targets are Madrid and the US, where sites have been identified, Mr. Sia said in an interview.
The funds raised this year will be via private placement, he said. The entrepreneur aims to have Hotel 101 properties in 25 countries by 2026, mainly in the Asia Pacific and Europe. It plans to sell shares via a Nasdaq listing the same year, seeking a minimum valuation of $11 billion, Mr. Sia said.
Hotel 101’s selling point is to travelers who want predictability, he said. All rooms in the chain are 21 square meters with a double bed, a single bed, a stove, kitchen and refrigerator. Room rates are typically 25% lower than direct competitors, he said.
“With only one kind of room, Hotel 101 will be like Big Mac for hamburgers, iPhone for smartphones and Coca Cola for soft drinks — consumers know what to expect,” Mr. Sia, 46, said. “We have seen standardization work. In some ways, boring is good.”
Mr. Sia first shot to fame in 2010 when restaurant giant Jollibee Foods Corp. bought a barbecue chicken chain he started in 2003. He then partnered Jollibee Chairman Tony Tan Caktiong to form DoubleDragon Corp., which has developed shopping malls, warehouses and hotels.
Hotel 101 wants to be among the world’s five biggest hotel operators by 2040 with 500,000 rooms in 101 countries. Based on existing projects, it will have 7,331 rooms by 2025, making it the biggest Philippine hotel operator, Mr. Sia said.
“It’s a cutthroat industry,” said Jonathan Ravelas, managing director at Manila-based consultancy firm eMBM. “Mr. Sia’s success hinges on providing what money-conscious tourists want: safe, clean and comfortable rooms that fit the budget.”
Hotel 101’s expansion will be funded primarily through the sale of rooms to investors, who will get 30% of the hotel’s gross revenue in returns. Rooms will be priced at $100,000 to $250,000 a unit depending on the country.
Construction for Hotel 101 Madrid will start in the fourth quarter and the 800-room development is expected to open in the first quarter of 2026, Mr. Sia said. With rooms priced at $168,000 each, he predicts the project will be sold out within 12 months of its launch.
Sales will leverage on Spain’s Golden Visa program, where one of the ways for non-European Union citizens to get residency and visa-free rights is to invest 500,000 euros ($545,250) in property.
There’s “high demand for Spain’s Golden Visa from Asians and Latin Americans,” Mr. Sia said. Hotel 101 is “the perfect vehicle for Golden Visa applicants. It’s a passive investment instead of buying an apartment or a house that they have to worry over maintenance.” — Bloomberg
MSPECTRUM, Inc. (Spectrum) has energized the newest cold storage facility of Atkins Import and Export Resources, Inc. in Naic, Cavite, the renewable energy company announced on Monday.
In a statement, Spectrum, a subsidiary of listed power distributor Manila Electric Co. (Meralco), said it has installed a 976.8 kilowatt-peak solar panel system in Atkins’ sixth storage facility in South Luzon.
Meralco said the solar project will generate about 1.36 million kilowatt-hours of clean energy per year, which translates to P9.5 million of savings in energy costs for Atkins annually.
“With Spectrum’s end-to-end solar energy offering, our partners are assured to receive top-tier quality and reliable service to achieve sustainable operations,” Patrick Henry T. Panlilio, chief operating officer of Spectrum, said in a statement. “Rest assured, we will also provide the necessary support Atkins will need from Spectrum to ensure that its solar generating system is working seamlessly as this new cold storage is a critical addition in ensuring food security across the country.”
Atkins’ move to power its sixth facility with renewable energy will also reduce its carbon footprint by 970 tons which is an equivalent of reducing 3.9 million kilometers in car travel per year.
Atkins, a subsidiary of First Atkins Holdings Corp., is primarily engaged in the importation and distribution of meat products mainly sourced from Europe.
“We trust that the energization of this breakthrough facility will trigger meaningful conversations about food security and encourage members of the Food and Beverage industry to emulate Atkins,” said Ma. Cecilia M. Domingo, vice-president and head of the corporate business group of Meralco.
Spectrum provides tailor-fit solutions for industrial, commercial, and residential customers through an in-depth understanding of energy consumption behavior. It is backed by Meralco’s energy expertise and proven safety track record.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
HARVEY WEINSTEIN departs New York Criminal Court following another day of jury deliberations in his sexual assault trial in the Manhattan borough of New York City, New York, US, Feb. 21, 2020. — REUTERS
A FORMER model has filed a lawsuit claiming a one-time executive at movie studio Miramax raped her after luring her to a hotel with the promise of a meeting with the company’s then-Chief Executive Harvey Weinstein.
The lawsuit was filed in New York state court on Thursday by Sara Ziff, who says the alleged assault by Fabrizio Lombardo, the former head of Miramax in Italy, took place in 2001 when she was 19 years old.
Ms. Ziff says she was an aspiring actress at the time and had attended a private movie screening in New York with Lombardo, who was in his early 40s. She claims the assault took place afterward in a hotel where she was told she would be meeting with Mr. Weinstein to discuss her career.
Miramax at the time was owned by Walt Disney Co DIS.N, which sold the movie studio to an investment group in 2010.
The lawsuit names Mr. Weinstein, Miramax and Disney as defendants, claiming they were aware that Mr. Lombardo was a “danger to women whom he encountered at work,” but did nothing to prevent him from victimizing her.
Disney and Miramax did not immediately respond to requests for comment on Friday. Mr. Lombardo could not immediately be reached for comment.
Allegations that Mr. Weinstein sexually assaulted models and actresses helped fuel the #MeToo movement that began in 2017. He has been convicted of sex crimes in New York and California and sentenced to a combined 39 years in prison.
According to Ms. Ziff’s lawsuit, Mr. Lombardo and Mr. Weinstein were “very close” and Mr. Weinstein was best man at Mr. Lombardo’s 2003 wedding.
Imran Ansari, a lawyer for Mr. Weinstein, said in an email on Friday that Mr. Weinstein had no knowledge of or control over Mr. Lombardo’s conduct.
“As such, Mr. Weinstein firmly denies that he has any liability for the alleged conduct of another,” Ansari said.
Ms. Ziff is accusing Mr. Lombardo of sexual battery and gender-motivated violence, and accuses Mr. Weinstein and the companies of negligent supervision. She is seeking unspecified damages for lost earnings, mental anguish and emotional distress. The lawsuit was brought under a New York law passed last year creating a one-year window for adult victims of alleged sexual abuse to file lawsuits that otherwise would have been barred because the cases were too old. — Reuters
RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to tap small- and medium-sized enterprises (SMEs) for growth and plans to use technology to expand its products and services for the sector.
“We really like the way SMEs are moving. We think SMEs are coming out of the pandemic very strongly, and therefore, we do want to throw a lot of resources and energy behind growing our business with the SME sector,” RCBC Executive Vice- President and Global Transaction Banking Group Head Emmanuel T. Narciso said in an interview with BusinessWorld.
Mr. Narciso said RCBC is investing in technology to boost its services for the SME segment.
“We’re really looking at how we can leverage digital, which was, in the past, more in the realm of the large corporate and the retail side. We’re looking at how we can leverage that on the SME side to deliver better products and to be more efficient in terms of how we deliver those products for them,” he said.
“On the SME side… that’s where we want to throw the digital energy, so to speak,” Mr. Narciso said, adding they plan to launch products and services for the sector within the year.
The official said the bank’s ongoing initiatives are seen to help continue its growth momentum.
“We have a lot of capital coming in from SMBC (Sumitomo Mitsui Banking Corp.), the Japanese bank, which is the 12th largest bank in the world. So, you put all that together, we’re very well positioned to be able to use that capital to boost the income of the bank even more,” Mr. Narciso said.
“We’re all hoping that the economy picks up… As you know the biggest income of a bank comes from net interest income. So, we have deposits, we’ve been growing deposits very well. But if we don’t lend that out, the net interest income doesn’t grow as fast. So, we’re really hoping that the economy puts us in a position where all the capital and all the deposits which we’re growing, we’re able to deploy that into earning assets,” he added.
SMBC in November hiked its stake in RCBC to 20% from 5%, infusing P27.1 billion in fresh capital into the local bank.
RCBC’s attributable net income increased by 71% to P12.1 billion in 2022 from P7.1 billion in the year prior on the back of improved performance across its core businesses.
This translated to a return on equity of 11.2% and a return on assets of 1.2%.
The bank had a consolidated network of 462 branches, 1,352 automated teller machines (ATM), and 1,559 ATM Go terminals nationwide at end-2022.
RCBC’s shares closed at P23.95 each on April 5, up by P1.08 or by 4.72% from the previous day. — A.M.C. Sy
Inflation-adjusted wages in March were 14% to 21.2% lower than the current daily minimum wages across the regions in the country. In peso terms, real wages were lower by around P57.31 to P88.13 from the current daily minimum wages set by the Regional Tripartite Wages and Productivity Board.
PHILIPPINE SHARES are expected to move sideways this week as trading resumes after an extended break ahead of key economic data.
The bellwether Philippine Stock Exchange index (PSEi) rose by 16.47 points or 0.25% to close at 6,488.51 on Wednesday, while the broader all shares index went up by 4.78 points or 0.13% to end at 3,486.74.
Week on week, however, the PSEi decreased by 11.17 points or 0.17% from its close of 6,499.68 on March 31.
Philippine financial markets were closed from April 6-10 due to nonworking days in observance of Holy Week and to commemorate the Day of Valor.
The PSEi declined last week as investors opted to pocket their gains and reset and recalibrate strategies for this quarter “amid [macroeconomic] uncertainties,” online brokerage 2TradeAsia.com said in a report.
For this week, investors may continue to stay on the sidelines ahead of key data releases and with the market’s focus shifting to the next meetings of the Bangko Sentral ng Pilipinas (BSP) and US Federal Reserve, 2TradeAsia.com said.
At home, the Philippine Statistics Authority is set to release February trade, manufacturing and labor data this week.
In the United States, the March consumer price index report will be released on April 12, while March producer price index data will come out on April 13.
“First quarter GDP (gross domestic product) data will not be available until May 11 — this will be about a week after the next Fed meeting (May 2-3) and just after the BSP’s board meeting (May 18). Earnings results for the first quarter of 2023 will be around this time as well,” it said.
“The relative monotone in April and crucial macro movements in May will likely pressure prudent funds to withhold deployments… until the broader picture becomes more conductive for bolder plays. Speculations and corporate-specific stories might take the spotlight until then,” the online brokerage added.
The Fed last month raised interest rates by 25 basis points (bps) to the 4.75%-5% range.
It has hiked rates by 475 bps since March 2022.
Meanwhile, the BSP last month increased borrowing costs by 25 bps as inflation remains elevated, bringing its key rate to 6.25%.
Since May 2022, the central bank has raised rates by 425 bps.
Trading volume could improve this week “as investors may be more comfortable entering into new positions after the long weekend,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail.
Value turnover was at P11.46 billion with 5.24 billion shares changing hands on Wednesday, lower than the previous week’s value turnover of P32.18 billion with 4.80 billion issues traded.
Mr. Mercado placed the PSEi’s support at 6,400 to 6,420 and resistance at 6,600-6,640, while 2TradeAsia.com puts immediate support at 6,400 and resistance at 6,650-6,750. — A.H. Halili
Commuters wait for public transportation along Ortigas Extension in Cainta, Rizal, Sept. 14, 2022. — PHILIPPINE STAR/ WALTER BOLLOZOS
THE HOSPITALITY industry will hold job fairs and workshops nationwide throughout the year to address labor shortages that have affected the tourism industry since the pandemic’s onset, the Tourism department said.
The Department of Tourism (DoT) said that its national tourism job fair “Trabaho, Turismo, Asenso” will continue on its third leg on May 11, in partnership with the Department of Labor and Employment (DoLE).
“For the tourism industry to become an engine of employment generation, the DoT will continue to empower our tourism workforce by giving them access to jobs that will match their skills,” said Tourism Secretary Christina G. Frasco in a statement on Wednesday.
“Its multiplier effect across various sectors can support job creation, which is exactly what we wish to achieve as we eye to exceed our targets for this year,” she said.
The job fairs held in its second phase in Central Luzon, Western Visayas, and Northern Mindanao offered over 8,185 jobs, the DoT said. They took place in Robinsons Starmalls in San Fernando, Pampanga, Robinsons Jaro in Iloilo City, and Limketkai Mall in Cagayan de Oro respectively.
The series of DoT-DoLE job fairs launched since August have offered 16,485 employment opportunities to job seekers in total.
Tourism stakeholders have previously said that the hotels, resorts, travel agencies, and tour operators sectors have struggled with such vacancies for a while now.
“Much of the workforce in our sector has gone elsewhere, to other industries, so looking for the right people with the right talent has been a problem,” said Margie F. Munsayac, Hotel Sales and Marketing Association (HSMA) chair and Bluewater Resorts’ vice president for sales and marketing, in an interview with BusinessWorld in March.
Since the pandemic, vacancies have risen after professionals realized they could get financial stability from work-from-home jobs.
Ms. Munsayac said that one way the HSMA is trying to bridge the resulting skills gap is by supporting the tourism workshops of the DoT and stepping up to train and educate young practitioners in the field.
Previously, the DoT said that over a million workers in the industry were affected by the coronavirus pandemic. It recently celebrated the Philippines reaching 2.65 million arrivals last year, which exceeded the benchmark target by one million.
“The more visitors we have, the more jobs we will create for our fellow Filipinos,” said Ms. Frasco.
She expressed hope that both the public and private sectors’ programs will meet the demands of employers following the influx of travelers brought by the ongoing “revenge travel” phenomenon. — Brontë H. Lacsamana
DECLINING water levels at Angat Dam remain sufficient to supply Metro Manila and nearby provinces as the dry season kicks in, the Metropolitan Waterworks and Sewerage System (MWSS) said.
“We are confident that the water in Angat and all other sources like Laguna Lake and Wawa will be sufficient,” Leonor C. Cleofas, administrator of MWSS, said in a Viber message to BusinessWorld on Monday.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) reported that the water level in Angat Dam declined to 199.37 meters on April 10 from 199.76 meters on April 9.
The dam has a minimum operating level of 180 meters operating level and a normal high-water level of 212 meters. The latter is considered the ideal level with adequate safety margins during the dry months.
“Angat level is way above the 180-meter level (which is the trigger for) priority allocation to domestic water” instead of irrigation, Ms. Cleofas said.
Angat Dam is the main source of water for Metro Manila, accounting for about 90% of the capital’s potable water.
PAGASA also said that El Niño is set to develop in the second half of the year and run until 2024.
“The PAGASA forecast is that if ever there is an El Niño the impact is early next year. Anyway, we have to use our water wisely,” Ms. Cleofas said.
Asked to comment, representatives of Maynilad Water Services, Inc. and Manila Water Co., Inc. said their water augmentation measures are in place.
“It is expected for the water level in Angat Dam to go down as the summer season progresses. The Angat Dam technical working group is monitoring the water elevation trend regularly to ensure that it stays at healthy levels,” Jennifer C. Rufo, head of Maynilad’s corporate communications, said in a Viber message on Monday.
Ms. Rufo said water service interruptions in areas served by Maynilad will continue.
“As long as our raw water allocation is unchanged, then the current service levels in our concession area will stay the same,” she said.
Earlier, Maynilad said customers will continue to experience service interruptions as supply remains inadequate.
Maynilad supplies water to the west zone of Metro Manila while Manila Water provides water for the east zone.
Manila Water has said it will maximize the production of its treatment plants and water sources to ensure uninterrupted water services as demand increases.
“Same contingency measures. We continue to supply 24/7 to our customers except during times of preventive and regular maintenance and emergency repair activities,” Nestor Jeric T. Sevilla, Jr., Manila Water’s corporate strategic affairs group head said in a Viber message. — Ashley Erika O. Jose
THE Light Rail Transit Authority (LRTA) said it has requested that the government expedite the issuance of a budget document known as the multi-year obligational authority (MYOA) to signify a commitment to fund the LRT-2 West Extension project.
“’Yan ang nire-request namin, the soonest sana. Kasi ’yan ang hinihintay namin para maka-start kami ng bidding, with that document pwede ka na mag-start ng bidding (It is what we are requesting, the soonest if possible. That’s the document we are waiting for to start the bidding for the project),” LRTA Administrator Hernando T. Cabrera told reporters.
Mr. Cabrera said that the MYOA should have been issued last year.
The MYOA is issued by the Department of Budget and Management to government agencies undertaking multi-year projects.
“Nakaabang na ang consulting services natin, kumpleto na ang lahat ng bidding documents, kumpleto na ang lahat ng mga design. Naka-suspend lang ’yung consultant kasi wala silang ginagawa e, so they have to scale down, naka-skeleton force lang sila (Our consulting services providers are ready, the bidding documents are complete, the design is complete. The consultant is currently not doing anything and has had to scale down to a skeleton force),” Mr. Cabrera said.
He added that the delay could be the domestic sourcing of the funds.
“Compared to other projects that are funded by JICA (Japan International Cooperation Agency) or ADB (Asian Development Bank), this one is a locally-funded project,” he said.
Mr. Cabrera said all the issues concerning alignment and right of way (RoW) for the West Extension project have been resolved.
Initially, Mr. Cabrera said that there were issues involving the Philippine Ports Authority (PPA), informal settlers and RoW sharing with other government projects.
“The last remaining hurdle namin diyan actually is ’yung doon sa area na pag-aari ng PPA. Meron kasing tatamaan na area doon na pagmamay-ari ng PPA, ’yun na lang ang last hurdle namin. Pero continuous ’yung aming coordination meeting with them para matapos na ’tong issue (Our last remaining hurdle was in the area owned by the PPA because the project will cross an area controlled by PPA. But we are holding continuous coordination meetings with them to resolve the issue),” he said.
Meanwhile, Mr. Cabrera said that due to the changes made to Department of Public Works and Highways (DPWH) projects in the same area, there is a chance that the existing RoW will be able to accommodate the West Extension project.
“Sa nabasa kong report is that itong isang DPWH na project ito iuusog nila ng konti so it will accommodate us now to go back doon sa road RoW so wala na kaming problema sa informal settlers (A report I’ve read showed that one DPWH project will be slightly moved, so the RoW can now accommodate us. We don’t have any problem with informal settlers anymore),” he said.
“But basically, the main problem is the funding. Tuloy-tuloy ang request namin to speed up the budget (We are continuously requesting to speed up the allocation of the budget),” he added.
The West Extension project will connect the current line that ends in Recto to Port Area, Manila. The 3-kilometer project will have three stations: Tutuban, Divisoria and Pier 4.
A letter of transmittal indicates that the total cost of the West Extension is P10.12 billion. — Justine D. Tabile
THE farming industry said the government needs to expedite the construction of first border inspection facilities to finally contain the African Swine Fever (ASF) outbreak.
In a statement, Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said the Philippines remains the only country without first border inspection facilities.
“It will not matter if you impose movement protocols and bio-security measures on farms and the transport of live hogs if we continue to have unlimited entry of untested imported pork at the port of first entry,” he said.
Mr. Cainglet noted that the funds for the construction were earmarked in 2019, adding, “there is obviously a resistance within the Department of Agriculture (DA) to construct such facilities.”
Former President Rodrigo R. Duterte approved the establishment of designated cold examination areas in major ports like Manila, Batangas, Subic, Cebu, and Davao to contain the spread of ASF.
“Producers are bearing the cost of increased biosecurity at the farm level, continued regular testing of pigs for ASF and related diseases, stricter ordinances on pig movement; yet there is no real quarantine inspection of imported pork,” he said.
Mr. Cainglet added that the lack of indemnification is discouraging hog raisers from reporting outbreaks in their farms.
As of March 5, the Bureau of Animal Industry reported that 325 cities and municipalities have reported ASF outbreaks. — Sheldeen Joy Talavera
