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Sangley airport consortium signs JV agreement

PHILSTAR

THE consortium tasked to build the Sangley Point International Airport on Monday signed the joint venture and development agreement with the Cavite provincial government, one of its members said.

In a regulatory filing, Yuchengco-led House of Investments, Inc. said it signed the agreement along with the Philippine members of the consortium, namely: Cavitex Holdings, Inc. and MacroAsia Corp.

Samsung C&T Corp., Munich Airport International GmbH and Ove Arup & Partners Hong Kong Ltd. are also involved in the project. Samsung C&T is the construction arm of South Korean tech giant Samsung.

The signing is part of the disclosure requirements of the Securities and Exchange Commission for the consortium. 

Cavite Governor Juanito Victor C. Remulla previously said that the airport project will begin by the third or fourth quarter of this year.

The Cavite provincial government awarded the project on Sept. 14 to the consortium composed of Philippine, European, and South Korean companies.

By 2028, the consortium expects to run the first phase of the project, which includes the first of the airport’s four runways.

The second phase of the project includes the two-runway system with facilities capable of handling at least 75 million passengers a year. — Justine Irish D. Tabile

Beyoncé breaks all-time Grammy win record; Harry Styles claims best album

BEYONCÉ accepts the award for Best Dance/Electronic Music Album for Renaissance during the 65th Annual Grammy Awards in Los Angeles, California, Feb. 5. —REUTERS/MARIO ANZUONI

LOS ANGELES — Pop superstar Beyoncé broke the record for most career wins at music’s Grammy awards on Sunday but lost again in the prestigious album of the year category, this time to British singer Harry Styles.

Beyoncé added four Grammys to her collection, bringing her lifetime total to 32 and surpassing the tally of late classical conductor Georg Solti.

Despite her success through the years, the 41-year-old “Break My Soul” singer has never claimed the best album trophy. Styles took home that honor on Sunday for Harry’s House.

“I’ve been so inspired by every artist in this category,” a surprised Mr. Styles said as he accepted the award. “On nights like tonight, it’s obviously so important for us to remember that there is no such thing as best in music.”

Grammy voters spread the top awards among several artists.

Lizzo’s upbeat “About Damn Time” won record of the year.

She dedicated the award to Prince, saying the late artist had inspired her to make positive music. Lizzo also saluted Beyoncé and recalled how she skipped out of school in fifth grade to see the “Halo” singer in concert.

“You clearly are the artist of our lives,” Lizzo said.

Blues singer Bonnie Raitt’s “Just Like That,” about an organ donor, earned song of the year.

Mr. Styles triumphed over a formidable, wide-ranging field that included Beyoncé, Puerto Rican rapper Bad Bunny, Lizzo, British vocalist Adele and disco-era Swedish hitmaker ABBA.

Beyoncé took the stage as she secured the all-time Grammy record with her award for best dance/electronic album for Renaissance.

“I am trying not to be too emotional. I am trying just to receive this night,” Beyoncé said. “I want to thank God for protecting me. Thank you, God.”

She also thanked her family and “the queer community for your love and for inventing the genre.”

Earlier, Beyoncé was absent when she was named the winner of best R&B song for “Cuff It.” Host Trevor Noah said the singer was stuck in traffic. He later handed her the trophy at her seat in the audience.

Bad Bunny took home the award for best música urbana album for Un Verano Sin Ti. For best rap album, Kendrick Lamar triumphed with Mr. Morale & the Big Steppers.

Honorees were chosen by roughly 11,000 members of the Recording Academy.

American jazz singer Samara Joy was named best new artist.

“Oh my gosh. I’ve been watching you all on TV for so long,” she said. “All of you are so inspiring to me.”

NEW EGOT WINNER
Meanwhile, actress Viola Davis on Sunday won a Grammy for her audio recording of her memoir Finding Me, granting her entry into the elite ranks of EGOT winners with an Emmy, a Grammy, an Oscar and a Tony award.

Ms. Davis is the third Black woman to earn this title, and the 18th person in history, and was thrilled to celebrate the moment on stage. The 57-year-old actor proudly said, “I got EGOT!” as she won a Grammy for best audio book, narration and storytelling recording.

Davis has a 2015 Emmy for TV series How To Get Away with Murder, won an Academy Award for best supporting actress in 2017 for her role in 2016’s Fences and has two Tony awards for Fences and King Hedley II.

“Oh my God,” she said on Sunday as she accepted her Grammy. “I wrote this book to honor the six-year-old Viola, to honor her, to honor her life, her joy, her trauma, her everything.”

Ms. Davis was the only female nominee in her category this year alongside big names Lin-Manuel Miranda, Questlove, Mel Brooks and Jamie Foxx.

Other EGOT winners include Jennifer Hudson, Rita Moreno, Audrey Hepburn and Whoopi Goldberg. — Reuters

DoTr picks best bid for GenSan airport project

THE Transportation department’s bids and awards committee has recommended the award of a project to improve General Santos City’s (GenSan) international airport to a construction firm based in Eastern Samar.

In a notice of award last week, the Department of Transportation (DoTr) identified “B.M. Marketing” through its sole proprietor Edgar A. Tiu as having submitted the lowest calculated and responsive bid for the P37.84-million project.

The General Santos International Airport Development Project covers the construction of the covered drop-off and the expansion of vehicular parking areas in the international airport. The approved budget for the contract is P47.27 million.

The working or window hours for the project will run all day as the scope of work is located in an area outside the flight operations.

According to the bid bulletin, full construction operations during the window hours were allowed by the Civil Aviation Authority of the Philippines (CAAP).

General Santos International Airport, also known as Tambler Airport, is Mindanao’s largest airport and it is managed by CAAP. — Justine Irish D. Tabile

Office rents may rise by 2% this year

AN OFFICE building is seen at the heart of the business district in Makati City, March 11, 2016. — REUTERS

OFFICE rental rates are projected to go up by as much as 2% this year, thanks to anticipated demand from companies looking to outsource operations to the Philippines, Cushman & Wakefield said.

“Despite the several global economic headwinds ahead, the Philippine IT-BPM (information technology and business process management) industry is expected to significantly benefit from large-scale lay-offs in tech companies. Mass job cuts among tech and startup companies have driven the demand for outsourcing and IT-BPM related industries in order to further save up on operating costs amidst the challenging business environment,” Cushman & Wakefield said in a report.

“As demand starts to recover, average prime and grade ‘A’ rents are estimated to grow at a base scenario between 1.5%-2.0% in 2023.”

Tech giants such as Amazon.com, Inc., Google parent Alphabet, Inc., Microsoft Corp., IBM Corp. and Facebook owner Meta Platforms, Inc. have announced massive layoffs. Financial firms such as Goldman Sachs, Morgan Stanley, and Citigroup, have also started reducing staff.

“Overall vacancy rate for Metro Manila is forecasted to go down in 2023 partly due to the rekindled interest of multi-national companies looking at setting up back-office or shared services operations in the country,” Tetet Castro, director and head of tenant advisory group at Cushman & Wakefield, said.

Average vacancy rates inched up to 16.13% in the fourth quarter of 2022, from 16.12% in the third quarter, Cushman & Wakefield said.

While office market recovery continued in the fourth quarter of 2022, Ms. Castro said vacancy rates may slightly go up in the first quarter due to “the addition of new stocks from new building completions as well as non-renewal or early return of space by occupiers continuing their exercise of rightsizing or converting to a hybrid set-up.”

Average rental rates also dipped 0.16% quarter on quarter due to the volume of new stock completions. Year on year, average prime and grade ‘A’ rents fell by 0.51% in 2022, despite a 0.4% year-on-year growth in net absorption.

Claro Cordero, director and head of research, consulting & advisory services at Cushman & Wakefield, said only a handful of buildings have slightly lowered rents, “although rental flexibility is dependent on the amount of space to be taken in by the prospective tenant.”

“Positive rental growth is likely to happen in 2023 as delayed prospects are expected to get a green light this year, giving confidence to developers and landlords to test resistance levels on the pre-pandemic published rates, while overall market vacancy tapers down,” he said.

Mr. Cordero said allowing IT-BPM companies registered with the Board of Investments to continue work-from-home arrangements will also boost growth of flexible workspaces.

“A hub-and-spoke strategy will likely increase the demand for plug-and-play office spaces which are readily-available on short notice and with flexible terms,” he added.

In 2022, total completions stood at 0.34 million square meters (sq.m.), bringing the total prime and grade ‘A’ office supply in Metro Manila at approximately 9.2 million sq.m.

Cushman & Wakefield said office supply is likely to expand by 0.53 million sq.m. this year. — Cathy Rose A. Garcia

First Gen unit to power Hocheng Philippines

LOPEZ-led First Gen Corp. announced on Monday that it will power Hocheng Philippines Corp. through its renewable energy arm, Energy Development Corp. (EDC).

In a statement, EDC said that Hocheng Philippines, a bathroom solutions provider, will continue its commitment to cleaner energy by renewing its power supply deal with EDC for its 850-kilowatt power demand.

“We are confident that First Gen can help meet our goals by providing efficient electricity through their low-carbon footprint resources. Furthermore, we are exploring solar rooftop projects to complement our geothermal source of power,” said Eugene Lin, senior vice-president and officer-in-charge of Hocheng Philippines.

Hocheng Philippines targets to decarbonize its operations through renewables. The company said it also offers some innovations through its product to save water consumption.

“Aside from the use of renewable energy, we have several initiatives that contribute to the company’s green and decarbonization objectives,” Mr. Lin said.

Hocheng Philippines has a 10-hectare plant in First Cavite Industrial Estate.

EDC is sourcing renewable energy from its geothermal facility whose output is considered baseload energy. The company’s renewable energy brand is called Geo 24/7.

On its website, EDC said that it has an installed renewable energy capacity of 1,476.59 megawatts (MW). It also said geothermal energy is the company’s major power source at an installed capacity of 1,181.8 MW or 61.3% of the country’s total. — Ashley Erika O. Jose

Gov’t awards T-bills at mostly lower rates

BW FILE PHOTO

THE GOVERNMENT fully awarded the Treasury bills (T-bills) it auctioned off on Monday as rates mostly dropped after the offer was oversubscribed.

The Bureau of the Treasury (BTr) raised P15 billion as planned from the T-bills it auctioned off on Monday as bids reached P37.786 billion, more than twice the amount on offer.

Broken down, the Treasury borrowed P5 billion as programmed via the 91-day T-bills, with tenders reaching P6.756 billion. The average rate of the three-month papers inched up by 3.4 basis points (bps) to 4.186% from the 4.152% quoted for the tenor last week, with accepted rates ranging from 4.12% to 4.245%.

The government also made a full P5-billion award of the 182-day securities as bids for the tenor reached P10.15 billion. The six-month tenor was quoted at an average rate of 4.867%, declining by 0.8 bp from the 4.875% seen the previous week, with the Treasury accepting offers with rates from 4.82% to 4.923%.

Lastly, the BTr raised P5 billion as planned from the 364-day debt papers as demand for the tenor reached P20.88 billion. The average rate of the one-year T-bill stood at 5.292%, 6.2 bps lower than the 5.354% fetched for the tenor last week. Accepted yields were from 5.27% to 5.317%

At the secondary market before Monday’s auction, the 91-, 182- and 364-day T-bills were quoted at 4.2768%, 4.9007%, and 5.305%, respectively, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the Treasury.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters that the government made a full award of its offer as the auction had a “good outcome, with rates lower than BVAL.”

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said T-bill rates mostly dropped on expectations of slower January inflation and ahead of the government’s retail Treasury bond (RTB) offer.

Headline inflation likely eased in January as weaker demand, the peso’s appreciation against the dollar, and slower growth in food costs offset the rise in utility rates and pump prices, analysts said.

A BusinessWorld poll of 15 economists last week yielded a median estimate of 7.6%, closer to the lower end of the 7.5% to 8.3% forecast range given by the Bangko Sentral ng Pilipinas (BSP) for January.    

If realized, the median estimate will be slower than the 14-year high print of 8.1% in December but faster than the 3% print in January 2022.

January would also mark the 10th straight month that inflation surpassed the BSP’s 2-4% target.   

The Philippine Statistics Authority will release January consumer price index data on Feb. 7 (Tuesday).   

Meanwhile, the BTr will hold the rate-setting auction for its offer of 5.5-year retail bonds on Tuesday.

The government is looking to raise at least P30 billion from the offering, which is set to run until Feb. 17 and also includes a swap option for some bonds maturing this year.

Mr. Ricafort added that the decline in global crude oil prices on Friday also affected yield movements.

US West Texas Intermediate crude futures and Brent crude futures slid 3% on Friday.

On Monday, Brent rose 19 cents or 0.2, to $80.13 a barrel at 0502 GMT, while WTI climbed 9 cents or 0.1% to $73.48 a barrel.

The Treasury wants to raise P165 billion from the domestic market this month, or P60 billion via T-bills and P105 billion via Treasury bonds (T-bond). The T-bond borrowing program was initially at P140 billion but the government canceled a P35-billion offer scheduled on Feb. 7 to make way for the RTBs.

The government borrows from domestic and external sources to fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy

RCR’s Cyberscape Beta gets EDGE certification

CYBERSCAPE BETA is RL Commercial REIT’s second EDGE-certified building. — COMPANY HANDOUT

OFFICE TOWER Cyberscape Beta has been awarded an EDGE certification by the Philippine Green Building Initiative (PBGI), according to RL Commercial REIT (RCR).

The real estate investment trust (REIT)sponsored by Robinsons Land Corp. said it earned its second EDGE certification for Cyberscape Beta, located along Ruby and Topaz Roads in Ortigas Center, Pasig City.

“This is another milestone in our commitment to find the most efficient way to build and operate our office towers. It is also a testament to RCR’s dedication to sustainability and developing green buildings,” RCR President Jericho Go said in a statement.

“The company and its tenants are firmly resolved to contribute significantly in the conservation of precious resources while enjoying cost savings from the reduced consumption of energy and water through the use of more efficient facilities and materials,” he added.

EDGE or Excellence in Design for Greater Efficiencies described as an international green building certification system that “focuses purely on energy, water, and embodied energy in materials for a quantitative approach to sustainability.”

“Our assessment confirms the auditor’s report that Robinsons Cyberscape Beta’s resource-efficient design will result in reductions of 34% in energy, 36% in water, and 83% in materials’ embodied energy compared to a local base case,” PBGI Chairman and President Leandro A. Conti said in a statement.

A dish to die for

A SCENE from the film The Menu.

Movie Review
The Menu
Directed by Mark Mylod

A SCENE from the film The Menu.

The Menu at least for the first half is nasty fun, served up in high style by Mark Mylod, from a story idea by Will Tracy.

The story — of a handful of guests sitting down for what promises to be the meal of their life — sounds like The Most Dangerous Game retold as an episode of Chef’s Table, and one of the better jokes ropes in David Gelb to recreate his dish presentations in the aforementioned Netflix series, from the soft glamor lighting to the matte-black background to the labels that fade into one corner of the screen, with a succinct description of the dish. The guests take a ferry ride (during which they’re presented an oyster bite) to the world-famous Hawthorn, located on a private island. They’re given a tour, emphasizing the locally farmed and foraged nature of the kitchen’s ingredients, and you recognize the restaurant being parodied, Renz Redzepi’s Noma, oft considered the greatest restaurant in the world.

The guests are given a tour by maître d’ Elsa (Hong Chau), who takes them past beaches crawling with crabs and digger clams, manicured gardens swarming with bees, a smokehouse where they age retired dairy cows for 150 days. Retired dairy cows because of their age are a tastier but tougher meat (in Spain they’re prized as a delicacy, in the United States they’re cheap hamburger); Magnus Nilsson covered these hunks of meat in kidney fat and aged them till the fibers broke down and the fat truly interspersed with the flesh — hence the next-level concentration of flavor. Learned about this, of course, in the PBS episode on Nilsson in Mind of a Chef.

Easily the tastiest portion of The Menu recreates the high holy world of cutting-edge cuisine, from Redzepi’s foraged ingredients to Nilsson’s fossilized steaks to Ferran Adria’s foams and gels — you recognize the different elements being parodied and recognize exactly who Nicholas Hoult as Taylor is sending up — you, the precious know-it-all gourmand whose life’s mission is to undertake a pilgrimage to similar culinary shrines (it helps that Dominique Crenn of two-Michelin-star Atelier Crenn plays consultant).

We quickly get the joke — perhaps as early as the ferry boat ride, but definitely by the time the doors of Hawthorn pivot close, like a bank vault clanking shut for the day. Mylod and Tracy escalate the joke with sneaky little details, like the way Chef Slowik (Ralph Fiennes in Nazi commandant mode) imperiously claps his hands and his crack brigade de cuisine snaps to attention; the dishes arrive deliriously beautiful beyond belief with brief explanations from Slowik that grow more and more unsettling till he’s sharing dark details about his alcoholic parents and abused childhood.

Hoult nicely describes the appeal of this world with a brief speech: “…athletes and musicians and painters… play with inflatable balls and ukuleles and shit. Chefs they play with the raw materials of life itself, and death itself… I’ve watched him (Slowik) plate a raw scallop during its last dying contraction of muscle. It’s art on the edge of the abyss, which is where God works too.” Hearing such profound words stating a man’s entire philosophy not just on food but art and life and passion issue from the mouth of a total ninny is not a little withering; the movie is a mirror and, yes, that’s your saucer-eyed face staring straight back.

Too bad about the rest of the picture. As long as the guests are kept guessing — “is this part of the show or is this really happening?” — it’s a sly black comedy; but the moment the guests know suddenly it’s near-all horror and not a lot of funny (the shots of Hoult still eating though are hilarious). Part of what made the previous shenanigans comic was that the guests were still buying into Slowik’s schtick; they were willing to sit and be verbally and psychologically abused and still eat his food (easily the funniest gag in the picture is when they’re presented the check). With the violence out in the open suddenly the question of “why don’t they fight?” comes up, and, yes, there’s discussion of revolt, and, yes, Slowik notes that they do not try fight very hard for their freedom — but mentioning an implausibility doesn’t quite excuse it (though it goes a long way), and the whole already improbable premise pushes a step too far into cartoon, not just satire. I’d call it a question of balance and tone, which Mylod and Tracy don’t quite achieve, and ultimately a failure of imagination — up to a point the abuse served a carefully designed purpose (exposing the guests to themselves); beyond that the violence is mostly meaningless.

Anya Taylor Joy as Tyler’s date Margot does put in an excellent performance as the one guest that doesn’t belong — her chemistry with Fiennes’ Slowik suggests not so much an attraction as a recognition, and an understanding between two working stiffs who have strayed far from their ideal.

Margot does goad Slowik into adding an extra course, a cheeseburger — which I’d like to point out is actually a smashburger, a genre of burger that uses cheap ground beef (this cooking technique would be wasted on expensive meat) smashed onto the grill for a crisped crust — perfect for the humble backyard grillmaster.

The Menu starts off in smashing style, loses its footing, and impossibly sticks its landing — where Margot demands of all things a cheeseburger, Slowik ends his spectacular blood-spattered meal with of all things a s’mores dessert (the contribution of sous-chef Katherine [Christina Brucato]?).

But the real punchline came months after in real life, when Noma announced its impending closure: Redzepi had decided that this business model for eateries is ultimately unsustainable. What’s the implication for gourmands — the common term nowadays being foodies — like me? Up the creek without a paddle, apparently, and ready to accept my own chocolate hat and marshmallow stole. Thank you, chef.

Damosa Land accelerates projects in Davao Region

DAVAO CITY — Damosa Land, Inc. (DLI) is accelerating its projects in the Davao Region and the rest of Mindanao this year.

“Basically, we have ongoing projects in Samal, several in Panabo City, and Davao City. A lot of these projects are slightly delayed due to the pandemic but now we are very confident, we are moving forward, and we are launching them simultaneously while completing the other projects. Medyo busy ang new year natin,” said DLI President Ricardo F. Lagdameo said in an interview.

Mr. Lagdameo said DLI is looking to launch a new subdivision project in Catalunan Grande, Davao City by the second or third quarter of this year.

“We’ve been planning this for a year now. We are positioning this (project) to be a bit more upscale with bigger and fewer lots,” he said.

DLI is currently developing Bridgeport, which features low-density condominium buildings, premium open lots, a condotel, commercial and dining areas, and an exclusive marina.

Completion of Ameria, a premier subdivision within Agriya — an agri-tourism site in Panabo City, Davao del Norte, is also underway.

Mr. Lagdameo said DLI is also expanding its partnership with IWG, the leading flexible workspace provider with brands such as Regus and Spaces. There are two Regus business centers in Davao City, and DLI plans to begin operating one in Cagayan de Oro in June.

“We are eyeing to open Regus centers across Mindanao not just in Cagayan de Oro. We will have General Santos eventually and other cities as well,” he said.

Meanwhile, Mr. Lagdameo said that DLI is looking to achieve 100% occupancy for the 16-storey Damosa Diamond Tower by first quarter. Locators include three brand new BPO companies, Anflo Management and Investment Corp., and DLI. — Maya M. Padillo

South Korean bargain shopping show gets Philippine adaptation

SINCE everyone loves a bargain, and online platforms have made these even more popular, a Korean reality show on shopping and figuring out the best deals for a product now has a Philippine version.

The Philippine adaptation of South Korea’s web variety show Nego King premieres on Feb. 8, 8 p.m., on ANIMA Studios’ YouTube Channel and LazLive on the Lazada app.

The original Korean Nego King premiered in 2020 on YouTube. Since then, it has aired 60 episodes across four seasons.

Nego King Philippines is produced by KROMA Entertainment’s ANIMA Studios in partnership with global entertainment company A+E Networks Asia.

“As a global IP Media Group, we’re constantly creating new formats that transcend cultures and languages. We’re thrilled to have found a likeminded partner in Kroma, to bring Nego King to the Philippines,” the A+E Networks Asia Managing Director said in a statement.

“Fueled by our desire to expand our content portfolio, we now bring to our audience a fresh and original unscripted show that is excellently delivered by our talents and creatives at ANIMA. And on top of our objective to wildly entertain our viewers each and every episode, we also want to reward them royally with unprecedented deals courtesy of our episode partners,” Head of ANIMA Studios Bianca Balbuena said in a statement.

The host of the local version of Nego King is television and radio personality Sam YG (real name: Samir Gogna) who is the show’s “Nego King” or king of negotiation. He negotiates with company executives to lower product prices and come up with offers for the show’s audience.

In the show, Mr. Gogna roams the streets of Metro Manila to interact with potential customers. He asks them their thoughts on a product and what would make them purchase it. These people’s sentiments will serve as a basis to negotiate the best deals with business owners for discounts and offers that viewers can avail in each episode.

Talagang lalapitan ko iyung mga tao (I will approach people) — man on the street, mga normal citizens. Ako ang hahabol sa kanila (I will go after them)…,” Mr. Gogna explained during a media conference on Feb. 2 at Tomas Morato, Quezon City.

The product to be negotiated over will be revealed to the host just before he roams the streets.

“I don’t even know the product or service that I am going to be talking about or dealing with for the episode. Ire-reveal siya sa akin naka-camera on na (It will be revealed to me on camera),” he said about the candid aspect of the show.

ANIMA Studio’s Head of Distribution and Operations Aldo Miravalles said that the featured products are “attuned to the Filipino taste.”

“He does not know where our ANIMA production crew is going to drop him off. I think the importance of that is the localization of our shoots,” Mr. Miravalles said, adding that man on the street subjects will vary from employees, vendors, and students.

Episodes of Nego King Philippines will be uploaded weekly starting Feb. 8. — Michelle Anne P. Soliman

Lalamove launches vehicle rental program

LALAMOVE Automotive has partnered with QSJ Motors Phils Inc. for a new vehicle rental program in a bid to help the delivery business of existing and potential partner drivers and fleet operators.

In a statement on Monday, Lalamove Automotive said the partnership for the new vehicle rental program was formalized in a recent memorandum of agreement signing in Angeles City with QSJ Motors Phils.

QSJ Motors Phils is an importer and dealer of trucks, heavy equipment, and industrial machinery.

“The program offers existing and future Lalamove partner drivers and fleet operators with a host of options to rent or rent-to-own a vehicle, enabling them to start their profitable delivery business with Lalamove,” the company said. 

The requirements for interested program applicants include two government-issued identification cards, proofs of billing, and proofs of income worth at least three months for new applicants or e-wallet screenshots, or one month’s worth of transaction history for existing Lalamove partner drivers.

Lalamove Automotive’s vehicle rental program is available for existing and aspiring partner drivers and fleet operators aiming to earn as much as P170,000 with their trucks, or are eyeing to expand their delivery fleet at minimal costs.

Qualified partner drivers and fleet operators can choose from short-term and rent-to-own payment options to incrementally own their vehicles.

“This joint venture makes vehicle ownership for Lalamove much easier and more flexible than ever in a short-term period. Lalamove Automotive and QSJ Motors are indeed making the impossible possible as we help more Filipinos jumpstart a new livelihood through Lalamove,” Lalamove Automotive General Operations Manager Jeff Balanga said. — Revin Mikhael D. Ochave

Philippine banks told to target elderly, poor to boost inclusion

FINANCIAL INSTITUTIONS in the Philippines should target the elderly and marginalized groups in expanding their customer base to boost inclusion, a report from the Asia-Pacific Economic Cooperation (APEC) showed.

Together with the Bangko Sentral ng Pilipinas (BSP) Research Academy, the APEC recommended measures to help financial institutions in the country navigate through the digital finance sphere.

The report tackled the APEC’s discussions with regulators, banks, financial technology (fintech) firms, and consumer groups during a webinar hosted by the BSP last year.

“One webinar speaker noted the tendency of financial service and product providers to focus their marketing efforts on easy targets — the millennials who are tech-savvy. As such, in a few years, this market may be over-served,” the report said.

Thus, authorities and financial institutions are encouraged to capture a different customer base, such as the elderly and the low-income groups, it said.

“Consider these segments not only during the marketing phase but starting on the conception or design phase of the product so that their specific needs and requirements would be addressed and appropriately incorporated into the features of the service or product,” it said.

Industry players and regulators should also connect with marginalized groups in order to cater to their specific needs and requirements.

“Dialogues are best continued throughout the lifecycle of the products and services. The feedback from these customers would help assess the usefulness, suitability and effectiveness of the services and products,” the report read.

“Moreover, a platform for complaints and their proper resolution could be established through the coordination of the public authorities with the service and product providers,” it said. 

However, limited access to devices or smartphones could hinder digital finance penetration among marginalized groups.

“One device per family may constrain the use of digital financial services if the phone is with the husband, for example, and the wife needs to do certain transactions. This problem could be addressed with a program that would provide smartphones at low cost or with low-interest rate loans.” 

According to the report, access to affordable financial services would help empower the vulnerable and underserved sectors that include women, youth, the financially underprivileged, rural communities, informal workers, migrant workers, and micro, small, and medium enterprises.

“However, with the development and further sophistication of fintech and digital finance, there is a growing concern about uneven access to the needed physical infrastructure or insufficient human capital. These can generate new sources of financial exclusion, especially among the same groups — women, the low income and the elderly,” it said.

Aside from focusing on the financially excluded, institutions should also be vigilant against rising risks amid the increase of digital financial services.

The APEC cited a study that identified 66 consumer risks grouped into fraud, data misuse, lack of transparency, and inadequate redress mechanisms, as well as agent issues and network downtime.

“Fraud, data misuse, network downtime and agent risks are directly linked to cyber security. Agent issues and network downtime both tend to impair the delivery of digital financial services to underserved and low-income consumers,” it said.

According to the report, the harmful effect of these risks is not limited to the loss of money of one user from a transaction, but also their tendency to erode the trust and confidence of the public in the financial system.

“The digital financial ecosystem thrives on trust. Therefore, it is the collective and shared responsibility of the public authorities, financial products and services providers and fintech firms to manage the risks by putting in place appropriate security in the technology and constant vigilance in the policies,” it said.

“Essentially, further progress in digital financial inclusion would require concerted actions from the various stakeholders—regulators, financial institutions, fintech firms and consumer groups — to reinforce the fundamentals,” it added.

The BSP wants 50% of retail transactions done digitally and to bring at least 70% of Filipino adults into the financial system by this year under its Digital Payments Transformation Roadmap.

The share of digital payments in the total volume of retail transactions in the country rose to 30.3% in 2021 from 20.1% in 2020.

Meanwhile, the value of payments done online represented 44.1% of total retail transactions in 2021, higher than the 26.8% share a year prior. — Keisha B. Ta-asan

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