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Startup with first plantable bamboo toothbrush wins this year’s Shell LiveWIRE grand prize

(L-R): Serge Bernal, Pilipinas Shell Petroleum Corp. vice-president for Corporate Relations; Rey Abilo, chief financial officer of Pilipinas Shell; Sebastian Quinones, executive director of Pilipinas Shell Foundation, Inc.; DICT Director Emmy Lou Delfin; Mark Sultan Gervasa, founder and CEO of 2022 Shell LiveWIRE Top Tech Startup awardee Bambuhay; Ma. Divina de Leon, Shell Regional performance manager; Juancho Jimenez, senior associate at Openspace Ventures; Carlo Delantar, co-founder and partner of Core Capital; and host RJ Ledesma

Pilipinas Shell Petroleum Corp.’s year-long Shell LiveWIRE program, which mentors tech startups and community enterprises in growing their businesses, recently awarded the 2022 grand winner to a local enterprise that invented the “first bamboo plantable toothbrush”. Shell LiveWIRE also recognized the accomplishments of the two other contenders, six community enterprises, and two more small and medium enterprises (SMEs), all anchoring their pioneering products on sustainability, environmental preservation, and livelihood development.

Bambuhay, which addresses plastic pollution, deforestation, and climate change, met the top marks in the program’s criteria: viability, feasibility, environmental sustainability, local content, and integration compatibility with Pilipinas Shell’s supply chain.

Bambuhay Founder Mark Sultan Gervasa started his company with a mere capital of P10,000 and recouped his investment on a massive scale with its current sales revenue of P26 million. The startup has also uplifted 68 families out of poverty while eliminating more than 1,100 tons of plastics, as of year to date. Merging the reduction of plastic pollution with bamboo technology began with one stark recognition.

“About 16 billion pieces of plastic toothbrushes are thrown away annually around the world,” Mr. Gervasa said.

Bamboo was a natural choice to replace plastic because “it captures more carbon dioxide than any other plant. It is renewable; you plant only once and harvest for life. It is affordable, and produced naturally and ethically in the Philippines.”

Shell LiveWIRE awarded Bambuhay P500,000 to scale its operations.

The other awardees were Pieza, an automotive digital marketplace that encourages sustainable transportation; and Suds, a cleaning product company that offers fill-and-reuse cleaning pods that help customers avoid the use of plastics.

Suds has also addressed the plastic problem by saving more than 800,000 plastic bottles and sachets from reaching the country’s landfills and oceans. Its concentrated cleaning pods replace the usual bulky cleaning materials that generate a lot of carbon emission during its manufacture and transport.

Suds’ pods have their 60%-H20 composition dissolve after use and upon mixture with water, removing the need to throw them away as garbage. Suds Co-Founder Jenan Magboo-Yuzon said that the polyvinyl alcohol in the cleaning material “is biodegradable, non-toxic, and has been used in cosmetics and medicine.”

Pieza, the web and mobile app that connects automotive retail shops and motorists, aims to keep the planet cleaner by encouraging car owners to purchase spare parts instead of buying new vehicles.

Currently, Pieza has 50,000 automotive retail owners in its digital network and three fulfillment centers in Navotas, Antipolo, and Ortigas for its logistics services.

It aligns with Pilipinas Shell’s diversity and inclusion values through “a genderless platform where we can serve not just the Baldos but also the Marias,” said Pieza Chief Executive Officer Jonecca San Pascual. “We also promote a decent work capacity for them to earn better.”

Shell LiveWIRE also awarded P100,000 each to six community enterprises: Republic Junk, a “trash-vocacy” encouraging circularity by discarding trash for cash; Moto-in-Can, creator of Pinoy miniature art from recycled tin cans; Better Pililla Women’s Handicrafts Cooperative, a women’s cooperative turning waterlilies into handicrafts; Bambusa de Oro, sustainable production purveyors who repurpose bamboo into home products; Golden Parauma Agriculture Cooperative (GPAC), a farming cooperative creating organic agricultural products; and Siembre Agrarian Reform Beneficiaries Organization (SABRO), a group of farmers who produce, distribute, and sell banana chips beyond the scope of their community.

For the first time, Shell LiveWIRE chose the Tech Startup Sponsor’s A-List and extended the acceleration program to two rising stars: Carbonamics, producers of fuel-grade ethanol from carbon dioxide; and Blitzkrieg, pioneering in the early detection of diseases in livestock with their breakthrough animal test kits.

Carbonamics won the Benita and Catalino Yap Foundation (BCYF) Innovation Award, which Shell LiveWIRE supports in its long-standing commitment to empowering Filipino small and medium enterprises. The BCYF recognizes excellence in visionary innovation in business and enables participating businesses to expand their markets, upgrade their systems, and bring about positive transformation in their communities.

Serge Bernal, Pilipinas Shell’s vice-president for Corporate Relations, praised the winners and the participants for exercising the “creativity, courage, commitment, and character” required to start and support a business. He emphasized the energy company’s continuous support for “innovation that responds to the need of the local communities and generates employment for more Filipinos. We want to get more innovations off the ground to keep the Philippines moving forward.”

Since its launch in the country three years ago, Shell LiveWIRE has helped more than 3,600 innovators and business owners, equipped more than 30 tech startups and community enterprises, and created more than 400 local jobs. About 12 Shell LiveWIRE participating companies have also entered Pilipinas Shell’s supply chain as contractors, vendors, and suppliers.

Entrepreneurs who are interested to join Shell LiveWIRE 2023 can register through www.shell.com.ph/ShellLiveWIRE.

APO La Salle celebrates 51 years of servant leadership

On its 51st founding anniversary, the APO La Salle chapter celebrates its legacy by further strengthening its present foothold in the society and forging the future.

There are few things in the world more powerful than friendship. Truly, the bond among like-minded men and women lasts a lifetime, but even more so when the brotherhood and sisterhood is forged by a collective spirit of selfless service.

Such are the ties that bind Alpha Phi Omega—one of the largest premier service-oriented organizations in the world. Founded in December 16, 1925 in the United States, and with over half a million alumni members across the globe, APO seeks “to develop leadership, promote friendship, and provide service to humanity.”

Founded in December 16, 1925 in the United States, APO seeks “to develop leadership, promote friendship, and provide service to humanity.”

In the Philippines, APO La Salle was founded on February 27, 1972. Over the years, it takes pride in nurturing well-rounded and successful members of the organization belonging not only in the business community but in other sectors and industries such as the academe, military, and the government.

In celebration of its 51st founding anniversary, the chapter celebrates its legacy not only by looking back on half a century of molding exemplary men and women out of Green Archers, but also by further strengthening its present foothold in the society and forging the future through its cardinal principles of leadership, friendship, and service.

More than its individual members, APO La Salle revels in its collective achievements. Its ubiquitous presence representing all strata of life have been dedicated to the development and uplifting of impoverished communities here and abroad. Services conducted by the organization include community development and rehabilitation, calamity drives, medical-dental missions, and tutoring, among others.

For its 50+1 Anniversary, APO La Salle spearheaded a slew of humanitarian projects this February, aimed at effecting positive changes in communities in Morong, Bataan. Over a hundred of its members graced the event coming home from different parts of the globe such as the US, Canada, Middle East, and Australia. Morong Mayor Cynthia Estanislao was also present in all of the events, marking the Morong LGU’s collaboration with APO La Salle for the latter’s Pawikan conservation project.

First on the lineup was an Artesian Wells Project, which was primed to provide a sustainable water supply system for communities in Morong, Bataan. This was done in conjunction with a feeding program and a slipper donation drive.

They also undertook the aforementioned Pawikan conservation project, which will protect and boost the dwindling population of the endangered sea turtles—majestic creatures that keep seagrass beds healthy and thriving for the entire local marine biome. As members took part in freeing bales of hatchlings, the chapter recognized the support needed in this kind of initiative to help save our ecosystem.

One of the seven artisan wells made for Barangay Ginebra by APO La Salle.

These ventures are only a handful of the ways APO La Salle has offered its kindness and generosity to the community. The organization is consistently driven towards philanthropic work in order to serve and give back to communities. To empower its members in this endeavor, APO La Salle positively influences their growth, wellness, and development.

Members of APO La Salle currently living in the United States and spreading their acts of community service.

On such a commemorative event as its founding anniversary, the organization hopes to continue sharing the APO way of life and La Sallian altruism throughout the country for decades to come.

 

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Feb. inflation likely hit 8.9% — poll

A woman buys food items at a supermarket in Quezon City, March 4, 2022. — PHILIPPINE STAR/ MICHAEL VARCAS

By Keisha B. Ta-asan, Reporter

PHILIPPINE INFLATION likely further quickened in February, with upward pressure expected from higher prices of cooking gas and food, analysts said.

A BusinessWorld poll of 17 analysts yielded a median estimate of 8.9% in February, within the 8.5% to 9.3% forecast range given by the Bangko Sentral ng Pilipinas (BSP) last week. 

If realized, it would be faster than the 14-year high of 8.7% in January and the 3% a year earlier.

Analysts’ February 2023 inflation rate estimates

February would also mark the 11th consecutive month inflation exceeded the BSP’s 2-4% target.

The Philippine Statistics Authority will release February consumer price index (CPI) data on March 7.

Inflationary pressures likely remained strong in February, which would be “enough to prevent inflation from peaking,” Hongkong and Shanghai Banking Corp. economist for the Association of Southeast Asian Nations (ASEAN) Aris Dacanay said.

“Although fuel prices have eased, this was likely offset by elevated food prices as trade restrictions on food continued to put pressure on supply,” he said, citing elevated prices of onions, eggs and galunggong (round scad).

Refined sugar prices reached as high as P110 per kilogram in February, nearly double the P65 per kilogram seen a year ago. Egg prices have also gone up to P8-9 per piece from just P6 in February 2022.     

Meanwhile, prices of red onions have fallen to P100-P180 a kilo as of end-February, from P200-P330 a kilo as of end-January.   

Inflation last month could also have been driven by higher prices of liquefied petroleum gas (LPG) and “strong economic activity,” ANZ Research economist Debalika Sarkar said in an e-mail.

Cooking gas prices increased by P10.00-11.20 per kilogram in February.   

“The reduction in retail pump prices and lower electricity tariffs set by the Manila Electric Company (Meralco), however, were sources of partial relief,” Ms. Sarkar said.   

Meralco cut the overall rate for a typical household by P0.0106 to P10.8895 per kilowatt-hour (kWh) in February.

Philippine National Bank economist Alvin Joseph A. Arogo said in an e-mail that inflation may have accelerated in February as the “lagged and second-round effects of the commodities and foreign exchange spike from last year have generally not started to wear off.”

Meanwhile, China Banking Corp. Chief Economist Domini S. Velasquez said inflation in February may have been unchanged from January’s 8.7% due to the decline in vegetable prices, the rollback in pump prices and lower power rates.

Pump price adjustments stood at a net decrease of P0.50 a liter for gasoline, P5.45 a liter for diesel and P6.85 a liter for kerosene in February alone.   

“On the other hand, core inflation likely rose to 8% given more commodities being affected by persistently high inflation. Service activities such as restaurants and accommodation and recreation will likely exhibit higher prices,” Ms. Velasquez said.

Core inflation, which excludes volatile prices of food and fuel, jumped to its fastest pace in more than two decades at 7.4% in January from 6.9% in December.

Ms. Velasquez said elevated inflation may push Filipinos to seek wage increases and more subsidies, while transport groups may push for fare hikes, which may cause a “wage-price spiral” and lead to “runaway inflation.”

“Pro-active and preemptive non-monetary measures are needed to prevent another round of inflationary pressure. Sufficient food supply, improvements in domestic logistic chain and storage could help bring down food prices,” she said.   

PEAK?
Security Bank Corp. Chief Economist Robert Dan J. Roces said more food imports and targeted assistance to transport drivers, farmers, and fisherfolk are expected to cushion the impact of inflation.   

“As such, there is a good probability that the February print could be ‘toppish’ but of course significant upside risks remain for the year,” Mr. Roces said, adding that price pressures should taper off by the second quarter.

Gareth Leather, Senior Asia economist for Capital Economics, said headline inflation likely peaked in February, and will drop steadily for the rest of the year.

“But inflation is unlikely to return to (2-4%) target before the end of the year, much later than in other parts of the region,” he said.

For Makoto Tsuchiya, assistant economist at Oxford Economics, inflation is close to peaking.   

“With weaker sequential growth amid subsiding supply-side pressures and stronger currency, CPI inflation will likely peak this quarter, before moderating and reaching the BSP’s target band in the fourth quarter,” he said.   

Mr. Tsuchiya said these near-term inflationary pressures will push the BSP to continue tightening, although at a moderate pace.

Most analysts expect the Philippine central bank to deliver a 25-bp rate increase on March 23 in a bid to keep inflation expectations in check.   

“We think the BSP will hike by 25 bps at each of its March and May meetings, before pausing throughout the year,” Mr. Tsuchiya said.

While his baseline view is a 25-bp increase on March 23, PNB’s Mr. Arogo said “a significantly higher-than-expected February print may force the central bank to be more aggressive with a 50-bp hike.”

Meanwhile, Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said the central bank may raise rates by as much as 50 bps again at the March meeting to “rein in inflation expectations” if inflation stood at 8.9% in February.

BSP Governor Felipe M. Medalla on Friday said the Monetary Board may likely do another aggressive rate hike at its policy meeting this month if inflation breaches the 9% level in February.

“Well, the worst-case scenario is above 9%,” Mr. Medalla said, “If that’s the case, clearly, we have to do something.”

The Monetary Board has hiked borrowing costs by 50 bps on Feb. 16, bringing the key policy rate to its near 16-year high of 6%.

This has brought the total rate hikes of the BSP since May last year to 400 bps.   

“If BSP opts for a 50-bp hike, the Monetary Board will disengage from the Fed and raise the risk of a terminal rate exceeding 6% especially if faster disinflation in succeeding months is nowhere to be seen,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.   

The US Federal Reserve raised the fed funds rate by 25 bps to 4.5-4.75%. It has hiked rates by a total of 450 bps since March 2022. The Fed’s next policy review will be on March 21 and 22.  

“Looking further ahead, I hope — though we’ve all been burned by this — that March will start to see a sustained slowdown in headline inflation,” Miguel Chanco, chief economist for emerging Asia at Pantheon Macroeconomics, said in an e-mail.

The BSP had revised its 2023 inflation outlook to 6.1% from 4.5% previously. It also hiked its inflation projection to 3.1% for 2024, from 2.8% previously.

DBM hopeful Congress will approve rightsizing plan within the year

Budget Secretary Amenah F. Pangandaman attends an economic briefing in Pasay City, July 26, 2022. — REUTERS

THE BUDGET department is confident that Congress will approve the government’s rightsizing program within the year.

“Hopefully this year (it will be passed). I think next week it will be passed in the House of Representatives, then we’ll try to push it in the Senate,” Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman told reporters on Thursday.

The National Government Rightsizing Act, which is one of the Marcos administration’s priority measures, is currently pending at the plenary at the House of Representatives.

It seeks to “minimize, if not eliminate, redundancies, overlaps, and duplications in its operations and simplify its rules and regulations, and systems and processes, while protecting the welfare of civil servants and other government workers.”

Analysts said that the government should ensure that its rightsizing program focuses on ramping up productivity and efficiency and not just scrapping workers.

“The conventional wisdom that the government bureaucracy is somehow too big and should be rightsized or reduced is actually inaccurate. If anything, our public sector is actually among the smallest in the world and correspondingly doesn’t provide as much of the government services that it could and should,” Sonny A. Africa, executive director of think tank Ibon Foundation said in a Viber message.

The DBM earlier said that slashing the government workforce by 5% would result in P14.8 billion in savings.

“It’s always useful to eliminate redundancy, overlaps and duplication and to promote efficiency and economy — but doing this does not necessarily make the government more effective. Trimming fat is necessary but, with the considerable development challenges facing the country, it’s actually more important to build muscle,” Mr. Africa said.

Based on latest data from the DBM, the total number of permanent positions for fiscal year 2023 is at around 1.94 million, not including ex-officio positions. Of this, about 1.77 million positions are filled and the remaining 170,668 are unfilled.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said the government should not rightsize “just for the sake of saving costs or reducing the redundancies.”

“Ultimately, the redundancies and overlaps while keeping the welfare of government workers depend on what the government is intent on doing. For instance, are we keeping the highly centralized type of management or are we going to devolve more functions to the local government? The answer to this basic question will then determine whether we have properly rightsized the government or not,” he said in an e-mail.

Meanwhile, De La Salle University law and business professor Antonio A. Ligon said that the government should perform a “comprehensive and thorough study” of what jobs will be eliminated.

“Evaluation and review of whatever consolidation or merging shall be done periodically if it will redound to faster service to our people. If not implemented properly, then it might just create confusion in government personnel and hence negatively affect the desired services to our people,” he said in a Viber message.

Mr. Africa said there may even be a need to add government jobs to boost public services and social protection.

“The rightsizing thrust is misguided in assuming that trimming the government workforce and reducing personnel services expenses will make the government more effective. On the contrary, the demands on the state to manage social and economic development are not just growing but also growing more complex,” he said.

However, he noted the government should also ensure its workforce will be better, more efficient, competent, transparent and less corrupt. — Luisa Maria C. Jocson

Subsidies extended to GOCCs up 8.5% in 2022

BW FILE PHOTO

SUBSIDIES extended to government-owned and -controlled corporations (GOCCs) reached P200.41 billion in 2022, with the Philippine Health Insurance Corp. (PhilHealth) being the top recipient.

Data from the Bureau of the Treasury (BTr) showed that budgetary support to GOCCs last year increased by 8.5% from P184.767 billion in 2021.

In December alone, subsidies surged by 419.9% to P32.07 billion from P6.169 billion in November and by 50.2% from P21.356 billion in the same month in 2021.

The government extends subsidies to GOCCs to help cover expenses that are not supported by their revenues.

In 2022, PhilHealth received P80.048 billion in subsidies, or nearly 40% of all subsidies last year. However, PhilHealth subsidies were 1.15% lower than the P80.979 billion it received in 2021.

The National Irrigation Administration (NIA) took in P40.662 billion in government subsidies, up by 6.1% from P38.311 billion in 2021.

Subsidies for the National Housing Authority (NHA) declined by 33.4% to P17.125 billion last year from P25.713 billion in 2021.

Also receiving significant subsidies were the Power Sector Assets and Liabilities Management Corp. (P8 billion), the National Food Authority (P7 billion), the National Power Corp. (P6.587 billion), and the Philippine Fisheries Development Authority (P5.603 billion).

The government also extended subsidies to the Bases Conversion and Development Authority (P4.581), the Philippine Crop Insurance Corp. (P4.366 billion), the National Electrification Administration (P3.613 billion), the Civil Aviation Authority of the Philippines (P2.439 billion), the Philippine Coconut Authority (P2.073 billion), and Small Business Corp. (P2 billion).

In December alone, PhilHealth received nearly half or 45% of the subsidies with P14.606 billion. This was followed by the NHA with P3.092 billion and the National Electrification Administration with P2.736 billion.

Other firms that received more than P1 billion in December were the NIA (P2.261 billion), Philippine Crop Insurance (P1.932 billion), Social Housing Finance Corp. (P1.783 billion), the Philippine Fisheries Development Authority (P1.665 billion), and the Philippine Coconut Authority (P1.075 billion).

The National Food Authority was the only major nonfinancial GOCC that did not receive subsidies in December.

Other GOCCs that received no subsidies in December were the Bases Conversion and Development Authority, the Cagayan Economic Zone Authority, Duty Free Phils. Corp., the National Tobacco Administration, the Power Sector Assets and Liabilities Management Corp., and the Sugar Regulatory Administration. — Luisa Maria Jacinta C. Jocson

Food imports may help tame prices in short term — analysts

Authorities seized smuggled onions and garlic in a cold storage facility in Malabon, Feb. 18, 2023. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

IMPORTS of key agricultural commodities may help tame prices in the short term, but the government should address supply-side constraints to ensure inflation eases from recent 14-year highs, analysts said.

This as the Philippine government recently approved imports of onions and sugar to address supply shortages that have pushed prices higher.

“Imports can decrease inflation in the short run, but it can never be a solution in the long run. Once import prices rise, due to global stagflation and higher oil prices, these imports will only contribute to greater inflation,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in an e-mail. 

Soaring food prices have fueled inflation in recent months. Inflation accelerated to a 14-year high of 8.7% in January, from 8.1% in December amid higher prices of vegetables, eggs and fish. Analysts in a BusinessWorld poll last week expect inflation to further quicken to 8.9% in February.

“Anything, really, that the Philippines can do now to better facilitate food imports should go a long way in addressing the country’s inflation problem. The potential certainly is there for food imports to provide a relatively quick fix, too,” Pantheon Chief Emerging Asia Economist Miguel Chanco said in an e-mail.

Makoto Tsuchiya, assistant economist at Oxford Economics, said that non-monetary measures such as importation will be able to rein in supply-push inflation.

“Given the lack of supply of food is pushing up prices, it makes sense that importation should bring down inflation by boosting supply. At the same time, it is important to make sure such a policy is implemented appropriately, as the inability to get them where they are most needed will render the policy less effective,” he said in an e-mail.

Finance Secretary Benjamin E. Diokno earlier said there is a need to implement direct, non-monetary measures to address supply issues and rising inflation. He said the Bureau of Customs (BoC) needs to ensure imports “reach the intended markets as soon as possible.”

Analysts said it is important that imports will arrive on time.

“Otherwise, it will defeat the purpose of importing food or agricultural products to supplement existing domestic supply,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.

The BoC said in a Viber message that it “recognizes its role in the fight against inflation.” It said it has instructed Customs staff at ports to ensure shipments coming into the country are released “efficiently and expeditiously to prevent any additional burden or cost against our stakeholders.”

“Moreover, the Commissioner put the BoC’s Intelligence and Enforcement Groups on task to monitor shipments closely so that any implemented trade facilitation measures are not abused to bring in illicit goods,” it added.

In an e-mail, Moody’s Analytics Senior Economist Katrina Ell said government efforts to increase imports of some items such as onions and refined sugar will help ease supply constraints.

“But it is critical that these imports are appropriately distributed to ease supply shortages. Without appropriate distribution, supply constraints will linger for longer,” she said.

Ms. Ell also noted that replenishing stockpiles is also appropriate to “smooth further supply constraints into the second half of 2023.”

For Mr. Lanzona, relying on imports places a “heavy toll on producers which can permanently disrupt the local supply chains and cause inflation in the long run.”

“The failure is this government’s insistence that they are doing well in terms of policy when obviously they have a clear inflation plan other than to adjust aggregate demand,” he added.

Mr. Terosa recommended other non-monetary measures like securing the distribution network as imports arrive for local distribution.

“Transportation and storage facilities have to be prepared for the influx of imports and their timely distribution. An efficient logistics system is therefore another non-monetary measure needed to bring down inflation,” he added.

Fitch Ratings Asia and the Pacific director Krisjanis Krustin in an e-mail recommended binding import restrictions and addressing inefficiencies in the domestic food supply chain.

“Over the long term, building the agriculture system that is more resilient to climate-related events should help stabilize prices, but such a policy usually takes a long time to bear fruit,” Oxford Economics’ Mr. Tsuchiya said.

SEC issues warning against two entities soliciting investments

TOWFIQU BARBHUIYA-UNSPLASH

THE Securities and Exchange Commission (SEC) advised the public not to put their funds in two investment-taking entities that have not secured the authority to solicit investments.

In separate advisories, the SEC identified the entities as BitPocket and Agri Marine Ventures.

BitPocket, also known as BitPocket Community Wallet, has been offering investment packages starting from $20 up to $10,000. It has been promising passive income for investors, with a daily rate of return of 1% to 300% in 30 to 300 days.

Investors may also earn 1% to 10% as incentives for referrals.

Meanwhile, Agri Marine Ventures has been enticing would-be investors online, the SEC said, adding that the entity has been using its Department of Trade and Industry registration “to put a color of legitimacy as its purported business activity.”

The entity is said to be engaged in farming, poultry, piggeries, fisheries, and wet markets. It has been offering four investment plans called Farming, Direct Referral Bonus, Unilevel, and Rising Cycle.

Investors, depending on their chosen plan, are supposed to earn either through an initial investment of P500 to P10,000 and above or through direct referrals that earn 10% to 15% of their investments.

The SEC, upon its investigation, found out that the investment-taking entities are not registered as a corporation nor as a partnership. They are also operating without a license to take investments from the public. — Adrian H. Halili

PAL inks deal with Emirates to boost connectivity

FACEBOOK.COM/PHILIPPINEAIRLINES

FLAG carrier Philippine Airlines (PAL) signed an interline agreement with Emirates to boost connectivity for both airlines through sharing of networks.

“We are happy to embark on this new interline partnership with Emirates that expands the choices available to Philippine Airlines passengers, who now gain easier access to more destinations across Europe, the Middle East, India, and Africa via our flights to Dubai,” PAL Vice-President for Sales Salvador “Bud” Britanico said in a media release.

“We are eager to expand our reach to various international markets and exciting destinations and help stimulate business and tourist travel for global citizens, as well as provide better service to our fellow Filipinos living and working in overseas nations,” he added.

In the release, PAL said the partnership, which is now in effect, will provide access to passengers of the United Arab Emirates flag carrier to 19 Philippine domestic destinations operated by the local airline.

Among these destinations are Cotabato, Davao, Iloilo, Kalibo, and two Asian regional points via Manila.

For PAL passengers, the interline agreement will allow them to access 21 cities operated by Emirates including Cairo, Frankfurt, Casablanca, and London via Dubai.

“The Philippines is one of our strongest consumer markets and we’re pleased to sign a new interline agreement with the country’s flag carrier. The partnership with Philippine Airlines will help open new links for trade and tourism that will drive more inbound traffic into the Philippines, and expand Emirates’ footprint in East Asia,” Emirates Chief Commercial Officer Adnan Kazim said.

In the coming months, Mr. Kazim said the two airlines are looking to further expand the cooperation by including additional points via Cebu. — Justine Irish D. Tabile

ICTSI adds new 15-meter-deep berth at Manila port

ICTSI.COM

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) will be opening a new berth at the Manila International Container Terminal (MICT) to increase its capacity and enable the handling of ultra-large container vessels.

“We are optimistic of the prospect of welcoming ultra large container vessels at the Port of Manila and are preparing to accommodate the added volume that these more efficient ships will bring,” ICTSI Executive Vice-President Christian R. Gonzales said in a statement.

“With these developments, our goal is to outpace demand and ensure the efficient flow of trade from the port to the local supply chain,” he added.

In a press release, the company said that the berth, which will have a design depth of 15 meters, will be able to handle 18,000 twenty-foot equivalent units (TEUs). Berth 8 will operate with a minimum of four quay cranes with half expected to be delivered in 2025.

At present, MICT is capable of handling non-Panamax ships through its berths 6 and 7 operated by five quay cranes, which is expected to be six this year.

The additional berth will increase the total capacity of MICT to 200,000 TEUs in time for the expected increase in cargo volume as the country approaches full reopening.

Berth 8 will also add 400 meters of quay and 12 hectares of yard phase that the company will construct in phases.

ICTSI operates the MICT under a 50-year concession agreement. The company engages in the business of port development, management, and operations. It has terminals and projects located in Asia Pacific, the Americas, Europe, Middle East, and Africa. — Justine Irish D. Tabile

Lazada Philippines CEO: Customer purchases rise amid economic challenges

THE frequency of Filipino customers purchasing items on e-commerce platform Lazada has increased amid economic challenges such as surging inflation, according to one of its officials.

“People spend a little less because they have more choices, they can go out again. But they come back so often because they already get used to it,” Lazada Philippines Chief Executive Officer Carlos Otermin Barrera said during a media roundtable in Taguig City last week.

Mr. Barrera said that despite a lower transaction size, visits have become more often to the e-commerce platform, which is celebrating its 11th anniversary.

“On average, it (transaction size) has gone down around 20% from pandemic-peak levels but the frequency has more than doubled,” he said.

The average transaction size is a “little smaller” as people are spending on other things and are given the opportunity to visit physical stores again, he said.

“What we have seen is that the market has evolved a lot. The average tickets are slightly lower but people come back more often. That has to do with value-seeking. People come back more often and they know that they can buy it cheaper and they can find good deals,” he added.

Due to the nature of its operations and as more people try to save, e-commerce is “fairly protected” from economic challenges, Mr. Barrera said. The country’s inflation rate hit 8.7% in January compared with 3% a year ago and 8.1% in December.

“People are now trying to save a bit more on their day-to-day purchases. We’re fully aligned with that. That’s the role of online [businesses] — to help people get better value,” he said. “There’s definitely value-seeking [behavior] happening in the market but it is not as pronounced online because people are still coming very frequently.”

“At Lazada, we have a lower cost of doing business. Online businesses are very nimble, very dynamic, and have lower costs,” he said, adding that many sellers have been able to limit price increases.

Meanwhile, Mr. Barrera said that Lazada Philippines is planning to build hundreds of delivery hubs across the country as part of efforts to improve delivery and customer experience.

He declined to disclose specific figures on the e-commerce platform’s planned investment except to say “hundreds.”

“We want to be everywhere. We want to be next to our customers wherever they are. We want to get to the next level in the entire country. We’re very strong in Metro Manila, in Luzon, and some of the other metro areas in the provinces. But the next frontier is faster deliveries across Luzon and other areas,” Mr. Barrera said.

“We are known for our deliveries. Now, we’re going to go and to claim it, so we are investing a lot in building our network, growing our faster deliveries, building more hubs, and getting closer to the customers. We are ready to make that investment because we want everybody to realize that shopping online is much cheaper, faster, and more convenient,” he added. — Revin Mikhael D. Ochave

SEC readies numbering system for all securities

THE Securities and Exchange Commission (SEC) is finalizing a national numbering system that will assign identifiers for corporate and government securities in time for a launch in the first quarter of 2023.

The move is a follow-through of the partnership between the securities regulator and the Association of National Numbering Agencies, an international association that seeks to standardize the financial industry.

In a previous statement, the SEC said the partnership would make the Philippine capital market more accessible and transparent.

Under the partnership, the commission would act as the national numbering agency and be responsible for allocating an entity’s International Securities Identification Number (ISIN), Classification of Financial Instruments  (CFI), and Financial Instrument Short Name (FISN) codes to all instruments of the market, which includes non-listed companies.

“An ISIN is a 12-digit alphanumeric code that uniquely identifies a financial instrument,” the SEC said, while the FISN “is a human-readable identifier that provides essential descriptive information about an instrument.”

It described the CFI as a “6-letter code which provides information on the classification and structure of a financial instrument.”

Through the SEC’s Markets and Securities Regulation Department (MSRD), issuers of securities may be able to request their ISIN, FISN, and CFI codes.

“New securities with Registration Statements filed with the MSRD shall be allocated with securities identifiers once the Registrations Statement is declared effective by the Commission,” the SEC said.

The proposed application for ISIN, CFI, and FISN would cost P1,500. — Adrian H. Halili

Asticom seeking to help more businesses, expand manpower

LOCAL shared services provider Asticom group of companies is planning to serve more micro, small, and medium-sized enterprises (MSMEs) including those overseas while expanding its manpower this year.

“Asticom aims to contribute to the economic recovery of the country. With that, we endeavor to improve businesses through digital transformation and value-driven solutions,” said Mharicar Castillo-Reyes, Asticom president and chief executive officer, in a recent statement.

She added that the group plans to expand its reach “to more MSMEs not just in the Philippines but also overseas.”

Asticom has more than 5,000 employees in 2022 and is planning to expand its manpower base in the next three to five years. It currently has more than 200 clients from industries such as telecommunications, financial services, logistics, real estate, and property management.

A unit under Globe Telecom, Inc.’s group of companies, Asticom is engaged in providing technological solutions to businesses. It also provides staffing solutions, general services, and information and technology (IT) services.

Some of its subsidiaries include IT and business service outsourcing via Asti Business Services, Inc., digital business solutions via HCX Technology Partners, and engineering and infrastructure services through Fiber Infrastructure and Network Services, Inc.

“With the addition of Acquiro Solutions and Tech, Inc., Asticom can now offer a wider range of solutions to help businesses of all sizes adapt to the modern workplace,” the company said.

Meanwhile, Ms. Castillo-Reyes said that Asticom is eyeing to generate new entrepreneurial ventures to expand the number of job opportunities for Filipinos and support the country’s economic recovery.

“As part of our mission and purpose to improve people’s lives, we strive to create more growth opportunities for both people and businesses. To achieve that, we continue our efforts in bridging passionate people to purposeful careers,” Ms. Castillo-Reyes said. — Revin Mikhael D. Ochave

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