Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 6713

Beyond number crunching: Making accounting matter in the new normal

By Marivic C. Españo
P&A Grant Thornton Chairperson and CEO

For many years now, innovation has been revolutionizing the accounting profession and expanded the role of accountants. Modern technology has led to significant improvements in accounting software, platforms for mobile accounting, and cloud-based systems. This not only make accountants more accurate and thorough in their craft, it also enables them to go beyond number crunching and add more value to their clients’ business.

While these innovations have been available to accountants for quite some time now, not all made the digital pivot. Some local businesses were still using programs and systems that required their accountant to be in-person and on-site to do manual tasks. This proved to be a challenge when the COVID-19 global pandemic led to the enforcement of strict lockdowns and social distancing protocols. All the data and paper-based files suddenly became completely inaccessible, and business owners and accountants had to work from home for health and safety reasons.

The pandemic demanded swift action and for businesses to keep their lights on. To meet the challenge of a constantly evolving business landscape, companies were forced to embrace digital transformation. Some of these digital initiatives include enabling remote work, providing high-capacity laptops and tools for the workforce, shifting to cloud-based technology, and giving staff training in cybersecurity. A number of firms also provided clients easy access to information through digital portals, making communication between auditors and clients more convenient.

Addressing challenges
As the pandemic is ongoing and health and safety protocols are still in place, these digital transformation initiatives are rapidly gaining wider acceptance and forming part of the “new normal” in Philippine accounting. Artificial intelligence, automation, and data analytics are also playing a huge role in enabling accountants to become more efficient by eliminating the need for leg work.

Digitalization has also changed client relations and onboarding. With firms doing away with face-to-face meetings, communication channels such as video call platforms, livestreaming, and email marketing tools have become a must-have in client relations. These tools are used to introduce advisory content, from awareness building and tax and accounting alerts, to new regulatory issuances and financial training.

P&A Grant Thornton Vertis North office

If there is one certainty in the pandemic and beyond, it is that digitalization is here to stay, as it becomes part of standard accounting processes — from online client onboarding to cloud-based project management and electronic submission of regulatory requirements. As such, the accountant has to adapt to meet the challenges post-pandemic.

The Philippine accounting industry is also addressing issues brought about by new laws and regulations. The recent passage into law of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act paved the way for adjustments in tax practice, as it contains provisions which will affect the 2020 income tax payable of most corporations. The new law affects the corporate income tax (CIT) rates of domestic corporations and resident foreign corporations and those of proprietary educational institutions, hospitals, and nonresident foreign corporations. The new law will also have an impact on minimum corporate income tax (MCIT) and percentage tax.

With the introduction of changes in rates effective July 1, 2020, tax professionals will have to compute their clients’ corporate income tax payable differently. The current Tax Code already prescribes the rules on how to compute income tax if there has been a change in rates — taxable income will be computed regardless of the date when specific sales, purchases, and other transactions occur. The income and expenses for the fiscal year shall be deemed to have been earned and spent equally for each month of the period.

These regulatory changes will bring about more detailed exchanges between firms and their clients and routine tasks will be disrupted to make way for the new CIT adjustments.

Accounting beyond the new normal
At P&A Grant Thornton, we view our clients’ needs beyond the context of the pandemic. Since the Firm started in 1988 as Punongbayan & Araullo, we have always gone beyond and above our traditional role and standards to deliver quality service that is personal, agile, and proactive. We have deep insights into global industries and markets, thanks to our alliance with Grant Thornton, which has a global network of member firms across 130 countries. With these connections, we combine global scale and capability tailored to the Philippine landscape.

Even amidst the pandemic, most of our staff were working from home, we continued to enable our clients’ business continuity and meet the demands of their dynamic operating environment through our digital innovations.

Through our Client Portal, clients can receive direct, real-time notifications on the status of their engagement and billings. This also allows them to track new business insights, as well as accounting and tax alerts released by government regulators.

P&A Grant Thornton is also offering its Vigil@nt training platform to help clients educate their staff on best practices to protect sensitive client information, with cybersecurity threats becoming more rampant during the pandemic.

The Firm has also been holding webinars and has ventured into the education technology (edutech) space through GT Academy X. Clients interested in offering digital learning and development programs partner with us for GT Academy X, which we are also bringing to other GT partners in the region.

Going beyond clients’ expectations forces us to take on a new mindset and embark on innovations. We meticulously train our teams in client management, prioritize work-life balance, and schedule educational webinars to constantly keep our staff abreast of developments and raise the bar in the accounting industry. Going beyond also means humanizing the accounting process and thinking outside the box to offer even more relevant and targeted solutions.

With this go-beyond mindset in place, our clients can expect to receive quality service, fresh perspectives and practical solutions, enabled by technology, through a more agile and proactive approach.

Monitoring of property deals tightened

REUTERS

By Luz Wendy T. Noble, Reporter

THE government further tightened its anti-money laundering rules, particularly in monitoring real estate transactions. This comes after the Financial Action Task Force (FATF) on June 25 placed the Philippines on its so-called “gray list,” reflecting the deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) framework.   

Under the new registration and reporting guidelines issued by the Anti-Money Laundering Council (AMLC), covered real estate brokers and developers are told to watch out for transactions where there is certainty or a sign that parties seem to be hiding the identity of the real customer buying the property. One of the telling signs is if there is a change in ownership when the property has not yet even been handed to an owner.

The AMLC also flagged those transactions done in behalf of third parties of intermediaries should be scrutinized, particularly when these are done in behalf of family or business ties, shared nationality or someone living in the same residence.

The “dirty money” watchdog also warned that transactions done through foreign intermediaries for tax purposes could be considered suspicious.

Red flags should also be raised if the payment for real estate transactions comes from high-risk jurisdictions that are considered tax havens, regardless of whether the customer is a resident of the specific country or territory.

Covered entities should also be suspicious if buyers appear to be interested in forming a private contract and seemingly not interested to notarize a contract or when they fail to have it notarized.

The AMLC warned that rapid succession or immediate sale of a property after purchasing, with prices that have a significant increase or decrease from the initial value of a property is another red flag.

Signed into law on Jan. 29, Republic Act 11521 further strengthens the Anti-Money Laundering Act (AMLA) of 2001. It expanded covered transactions to include cash deals involving real estate developers and brokers exceeding P7.5 million.

The move was done to increase monitoring of the real estate industry due to earlier findings that criminals are using property deals to launder dirty money.

Chamber of Real Estate and Builders’ Association National Chairman Charlie V. Gorayeb questioned the implementation of tighter rules following the amendments to the AMLA, saying it should have been done alongside the relaxation of the Bank Secrecy Law.

“We have so many laws and implementation has become a big challenge specifically given the corruption issues in our country,” Mr. Gorayeb said in a text message.

House Bill 8991 seeks to ease the Bank Secrecy Law by allowing the central bank to look into the accounts of bank officials and employees when there are sufficient grounds for fraud, subject to approval from the Monetary Board. It is still pending at the House committee level.

Authorities have said easing the Bank Secrecy Law will be a “welcome development” but is not among the key indicators being monitored by the FATF.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said the country has already addressed its technical deficiencies through the passage of Republic Act 11479 or the Anti-Terrorism Act and the AMLA amendments.

The AMLC’s new rules also expanded the types of designated nonfinancial businesses and professions. It has also authorized AMLC Executive Director Mel Georgie B. Racela to require submission of all, including low-risk covered transactions subject to AMLC investigation, among others. The rules likewise include provisions on compliance checking and new administrative sanctions.

Guidelines on suspicious transaction reporting on per account basis as well as requiring covered institutions to cite trigger events that led to the report are also included in the implementing rules and regulations. It likewise clarified rules regarding timing of submission for suspicious transaction reports.

The country will submit its first progress report to the FATF in September. Mr. Diokno expressed hope the Philippines will be able to effectively address the action plans monitored by the FATF to be able to exit the gray list by January 2023.

Weaker peso may provide reprieve for struggling exporters

BW FILE PHOTO

By Beatrice M. Laforga, Reporter

THE PESO’S recent depreciation to P50-per-dollar rate could provide a mild boost to the pandemic-stricken exports sector still struggling with high shipping costs and additional taxes, according to an industry group.

A weaker local currency versus the US dollar should be good for exporters as it can lift their sales revenues, George T. Barcelon, chairman of the Philippine Exporters Confederation, Inc. (Philexport), said in a phone interview on Sunday.

However, this will be partially offset by the higher input costs as imported raw materials become slightly more expensive.

“Overall, I think this (weaker peso) will help the economy both for the exporters and remittances. On the cost of goods (imports), that has to be really monitored,” he said.

The peso depreciated to P50.08 against the greenback on Friday from its P49.875 close on Thursday, its weakest in more than a year or since its P50.19-per-dollar close on June 23, 2020.

Week on week, the local unit weakened by 88 centavos from P49.20 per dollar on July 2.

Mr. Barcelon said the P49-P50 per dollar rate is a comfortable level for exporters still struggling to recover while facing high shipping costs, rising global oil prices and increased local taxes.

“I think it would hold around P50 per dollar for some time, but uncertainty remains high. Exporters generally want weaker peso, but not to a point where it affects their capacity to buy,” he said in a mix of English and Filipino.

Tight supply of shipping containers globally has pushed shipping rates even higher. Mr. Barcelon said local exporters saw their shipping expenses jump by three to four times recently.

Global oil prices continued to increase as demand picks up while inventories remain constrained. A report by Reuters showed the benchmark Brent crude oil increased by 2% to $75.55 per barrel on Saturday.

Back home, Filipino exporters are also trying to cope with the change in tax rules by the Bureau of Internal Revenue (BIR), which began imposing the 12% value-added tax (VAT) on inputs sourced locally that were previously taxed at zero percent.

The BIR instead gave the option for companies to apply for a refund to avail the incentives, which exporters said may force some firms to shift to importation.

Latest data showed goods export continued its uptrend in May after growing by 30% year on year to $5.89 billion.

Moving forward, the peso will likely continue to weaken against the greenback in the second half of the year, Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail on Sunday.

“Economic activity has seen its previous bullish activity to have returned lately in the western region as well as European market. Locally, the gradual opening of the local economy pushed demand to its pre-COVID form [and] is expected to be sustained until the end of the year. Such event is accompanied by massive election spending which will further erode the value of the Philippine peso against the US dollar,” Mr. Lopez said.

Aside from the exports sector, he said the weaker peso will also give a boost to remittances sent home by overseas Filipino workers (OFWs).

Finance Undersecretary Gil S. Beltran said the weaker peso could also boost the taxes and duties collected by Customs.

“The depreciation follows the trend in all ASEAN/global currencies,” he said in a text message on Sunday.

Overall, Philexport’s Mr. Barcelon said the economy should be comfortable with the exchange rate of P50 per dollar over the long term.

Economic managers estimated the peso will range from P48 to P53 per dollar until 2024.

The Department of Finance (DoF), in an economic bulletin on Sunday, stressed the need to effectively contain the spread of the coronavirus to sustain the economy’s recovery, especially as new variants are becoming more contagious and deadly.

“Otherwise, government will be forced to transition from risk management stance to risk avoidance posture and make the difficult and painful decision of imposing much stricter quarantine measures,” the DoF said.

IMF says Philippine government needs to boost spending capacity during crisis

PHILIPPINE STAR/ MICHAEL VARCAS

THE Philippines should improve its institutional capacity to be able to ramp up spending during a crisis, the International Monetary Fund (IMF) said.

IMF Representative to the Philippines Yongzheng Yang said it is challenging to undertake expenditures in a crisis such as the coronavirus pandemic, citing the unspent funds from the second stimulus package under Republic Act 11494 or the Bayanihan to Heal As One Act (Bayanihan II).

“The fact that not all funds allocated under Bayanihan II have been spent highlights the importance of building institutional capacity during normal times so that spending can be ramped up as needed during a crisis, both in National Government departments and local government units,” Mr. Yang said in an e-mail to BusinessWorld.

Data from the Department of Budget and Management showed agencies were only able to spend P141.45 billion from Bayanihan II as of June 25 or five days before the law’s expiration, leaving P63.55 billion unspent.

The unspent amount will be returned to the Bureau of the Treasury (BTr) since the disbursement period under the law was only until June 30.

Based on the IMF policy tracker as of July 1, fiscal support in the Philippines coming from the two stimulus packages, Bayanihan I and II, was equivalent to 4.4% of the country’s gross domestic product (GDP) in 2020.

Government support through other measures including credit guarantees made up 0.6% of 2020 GDP.

With the expiry of the second stimulus package, IMF’s Mr. Yang said the Philippines still has fiscal space that can be utilized to support the economy despite the increase in public debt during the crisis.

He also stressed that efficient spending of the P4.5-trillion national budget is critical given the needs of those hardest hit by the pandemic.

“The 2021 budget strikes an appropriate balance between recovery needs and fiscal prudence under the current circumstances,” he said.

“Steadfast execution of the 2021 budget with continued flexibility to respond to evolving priorities would be critical to support vulnerable households and businesses as well as to provide a boost to economic activity.”

Overall spending increased 29.2% to P456.7 billion in May from a year earlier, based on latest data from the BTr. It also grew 8.8% to P1.811 trillion in the January to May period compared with the first five months of 2020.

Asked whether another stimulus package will be critical with the expiry of Bayanihan II, Mr. Yang said it is more important that government policies are flexible enough to respond to evolving priorities.

“The critical task is to speed up spending where it is needed,” he said.

House Bill 9411 or the Bayanihan III, which proposes a P401-billion stimulus package, has been approved by the House of Representatives. Its counterpart Senate Bill 1953 is still pending at the committee level.

Mr. Yang is hopeful that the Philippines’ “reform momentum” will continue.

“These reforms have helped the country build economic buffers (e.g., relatively low levels of public debt and ample foreign reserves) against shocks such as the pandemic and natural disasters, and enabled the country to achieve rapid economic growth prior to the pandemic. I hope the reform momentum will be maintained, including during the upcoming election period, as it has been through the pandemic,” he said.

Before the pandemic, debt-to-GDP ratio stood at a record low of 39.6% as of end-2019, based on BTr data. This ratio has climbed up to 60.4% as of end-March 2021, above the 60% threshold considered to be manageable by multilateral lenders.

The IMF in June lowered its 2021 growth outlook for the Philippines to 5.4% from 6.9% previously, citing the impact of the reimposed lockdown in March. The latest projection is below the 6-7% growth target set by the government in 2021. — Luz Wendy T. Noble

Investors seen to gain as more sectors eye REIT 

By Keren Concepcion G. Valmonte

THE country’s real estate investment trust pipeline (REIT) is expanding to include other industries as two more companies are eyeing to enter the REIT market.

“More REIT offerings make REIT investors and the investing public better off by giving them more choices or options that are more suited to their investment needs or requirements,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in an e-mail on Friday.

Renewable energy company Citicore Power, Inc. has expressed its plans to list an energy-focused REIT, which will include eight solar farms as initial assets of the portfolio.

“In the case of the renewable power industry, the REIT could be intertwined with this business model, in view of the [increasing] global trend for ESG-compliant (environmental, social, and governance) investments, thereby could help increase the appeal of a REIT for local and global investors that are particular to ESG standards or compliance,” Mr. Ricafort said.

Meanwhile, DoubleDragon Properties Corp. and Jollibee Foods Corp. are teaming up to create the country’s “first and largest” industrial REIT in 2022 via DoubleDragon’s industrial leasing unit, CentralHub Industrial Centers, Inc.

CentralHub has industrial warehouse complexes for warehousing, commissaries, cold storage facilities, and logistics distribution hubs. Jollibee will be infusing its commissary assets to the company to bump up CentralHub’s total industrial land portfolio to 39.8 hectares.

So far, the listed REIT firms — AREIT, Inc. and DoubleDragon’s DDMPR, Inc. — have commercial, office, and mixed-use developments on their portfolios.

Meanwhile, the three upcoming REIT offers sponsored separately by Filinvest Land, Inc. (FLI), Megaworld Corp., and Robinsons Land Corp. also highlight office spaces, along with retail and mixed-use developments.

FLI’s REIT recently received the go signal from the Securities and Exchange Commission, inching closer to an initial public offering. Megaworld and Robinsons Land are also awaiting regulatory approval for their respective REIT offers.

Darren Blaine T. Pangan, trader at Timson Securities, Inc., said Citicore Power’s REIT and the DoubleDragon-Jollibee REIT tie-up will give market participants “more ways to diversify their portfolio.”

“It seems great for the markets, an expanded menu of listed corporations may entice more investors to participate,” he said in a Viber message on Saturday, adding that it is an added method of raising capital for the firms.

RCBC’s Mr. Ricafort also said more REIT offers will boost competition among issuers.

“It would raise the bar in terms of the quality of the portfolio of real estate properties offered and the returns or dividend yields that they offer to the investing public,” Mr. Ricafort said.

Eve’s chief keen on bringing air taxi flights to Manila via eVTOL

By Arjay L. Balinbin, Senior Reporter

EVE Urban Air Mobility Solutions, Inc. is keen on bringing its electric vertical takeoff and landing vehicle (eVTOL) project to the Philippines as an alternative for commuters who want to avoid traffic jams in the capital.

“Eve’s eVTOLs are targeted to perform in markets where commuters spend a lot of time on the road stuck in traffic. This is common in Manila and cities around Asia,” Eve’s President and Chief Executive Officer Andre Stein told BusinessWorld in an e-mail interview on July 7.

“We want to remove these pain points from the daily lives of people,” he added.

Eve is dedicated to accelerating the urban air mobility ecosystem. It is supported by global aerospace manufacturer Embraer S.A., which is based in Brazil.

“The average range of our eVTOLs [is] designed to be about 100 [kilometers], meaning you could travel from Manila to Clark by an eVTOL, avoiding much of the traffic congestion on the road,” Mr. Stein said.

Eve recently announced its partnership with Ascent, a Singapore-based startup powering air mobility in Asia.

Eve said the partnership will advance the entry of its eVTOL aircraft into Ascent’s technology platform that allows users to book charter flights.

“Working with Ascent, we will be studying example routes and networks which would be ideal for eVTOLs to operate in cities and countries and to share these with the authorities,” Mr. Stein said.

“eVTOLs operating in countries could be a reality as early as 2026,” he added.

He said Eve’s target customers are existing air operators or prospective clients who are keen on offering eVTOLs as an alternative mode of transport.

Mr. Stein described eVTOLs as “cost-effective and low on noise and carbon emissions.”

“Eve wants to make eVTOLs accessible to the middle-class population. The design of our eVTOLs is centered around safety, ease of operations and low cost of ownership. In addition to that, [it is] low on noise and carbon emissions. A lot of thought has gone into our design. The ‘cabin’ of the eVTOL accommodates mobility-impaired people too,” he said.

Fashion in a time of pandemic

BALENCIAGA

The Paris Fall Winter Haute Couture Week 2021

Last year, international designers had to show their collections in unconventional ways: there were videos, then puppets, and even boat rides. While fashion shows went live again for Paris Fall Winter Haute Couture Week 2021, there are still traces of the trauma we’ve collectively endured: masks were everywhere, of course; there were limited audiences, open air shows, and some designers still opted to showcase their offerings via social media instead. Still, fashion endures, and has the ability to dream of a better world for all of us.

BALENCIAGA
In her autobiography, D.V., Diana Vreeland presented an anecdote about Balenciaga founder and namesake Cristobal Balenciaga. During a Balenciaga show, she says, “Audrey Hepburn turned to me and asked why I wasn’t frothing at the mouth at what I was seeing… across the floor, Gloria Guiness was sliding out of her chair onto the floor.” Balenciaga exciting couture career ended when he shuttered his house in 1968, and when he died in 1972. After more than 50 years, couture returns to Balenciaga in the guise of Creative Director Demna Gvasalia.

The collection was stunning, shown in complete silence, with the sounds of photographers and fashion journalists completely audible amidst the bevy of models walking through a series of rooms. The clothes are from, and for, another place and time. Think a tall pillar of fabric, actually an opera cloak showing a just a model’s face, with the actual cloak extending past her head. There were padded stoles draped across arms and shoulders, and wide-brimmed hats paired with capes.

The show ended with a Balenciaga bride, in a dress cut and draped in a way that made it appear as if a sculpture had melted. It would be a dream come true if one saw them moving in real life.

CHANEL
Designer Virginie Viard shows classic femininity in her haute couture offering for this season, opening the Chanel show at the Palais Galliera with a swelling of strings, showing a model in fully beaded lilac and pink. This then transitions to various pop hits, showing these early 20th century girls moving at pace in the modern world.

There are candy-colored tweeds, flowers the color of ashes embroidered onto black bodices, and rich beading and embroidery appearing so flawless as if painted into life. The fabrics’ weights, echoed in a white dress with a swing fit for a French resort town, show a lightness of being that only the privilege of couture can bring. The show ended with a Chanel bride, in leg-of-mutton sleeves and a spangled veil.

SCHIAPARELLI
Truly, how many more ways can weirdness be so interesting?

Schiaparelli Creative Director Daniel Roseberry may have dug into Schiaparelli’s surreal archives for his collections, but has managed to make the clothes his own, pulling this 1930s relic maison into modern times (where they may be more appreciated).

His collection for this season is centered around bullfighting and matadors, and — my, my, what an arena. A particularly arresting dress is one that reminds one of a bull, with horns pointed forward forming the bodice. A deliciously villainous dress had the same horns pointing upwards, embroidered all over with gold. A demin matador jacket was studded all over with Schiaparelli locks, keys, and eyes, with gold upper and lower backs peeking from keyholes made in the denim.

A black fringed dress (appearing like the same material from which casette tapes are made off) is opened by a model, revealing underneath armor molded to look like breasts: sexy and subversive. Several details also suggest, and not show sexiness (which made it all the more exciting): think sculpted hands on waists, or a sculpture of flowers rising from a skirt and covering a body.

The show ends with a model in a giant white dress, with silver lips open in a slight pout serving as the bodice. — Joseph L. Garcia

SMC unit halts 1,500-MW ‘clean’ coal power plants

SMC Global Power’s Sual, Pangasinan power plant

SMC Global Power Holdings Corp. has dropped a plan to develop “clean” coal power plants with a combined capacity of 1,500 megawatts (MW) as it shifts its focus towards adding more renewable energy (RE) in its portfolio, its parent firm said over the weekend.

The move comes a week after think tank Center for Energy, Ecology and Development sent to reporters a letter signed by an official of the Department of Energy that tagged as “discontinued” some of the projects of the San Miguel Corp. (SMC) unit.

“We’re executing on our plans to move away from building new coal facilities, despite new technologies that make them cleaner. It’s a company direction that is in line with all the major sustainability initiatives we have undertaken these past couple of years,” SMC President Ramon S. Ang said in an e-mailed statement on Saturday.

These projects are SMC Global Power’s proposed circulating fluidized bed coal-fired plants in Pagbilao and Sariaya, Quezon with capacity of 600 MW each, and the 300-MW Looc Malabuyoc coal-fired power plant in Cebu.

The Energy department letter was signed by Mario C. Marasigan, director at the Electric Power Industry Management Bureau.

In the statement, Mr. Ang said that SMC maintains a diverse power portfolio of RE and “traditional but proven” energy sources to ensure that it can shift to cleaner sources while meeting the demand for affordable and dependable power.

The parent firm said that SMC Global Power is spending more than $1 billion to build 31 new battery energy storage systems (BESS) with a rated capacity of 1,000 MW. They are scheduled to be completed by this year and next.

“The project will allow for the integration of over 3,000 MW of intermittent renewable power sources to the grid,” SMC said.

Mr. Ang added that SMC Global Power is also looking to build new solar plants “in combination with BESS facilities” in 10 areas across the country. They are targeted for commercial operations by 2023.

According to its website, SMC Global Power’s portfolio consists of a mix of coal, natural gas and hydroelectric plants with a total capacity of over 2,900 MW, accounting for 22% of supply in the Luzon grid. — Angelica Y. Yang

Digital transformation continues for Nike with app launch in Southeast Asia

NIKE last week launched its Nike App — a platform which gives members personalized access to what the brand is offering — in Southeast Asia and India.

The free app, available on Android and iOS platforms, is part of Nike’s push to “digital transformation” in the region, which has the brand expanding its business strategy by tapping new technologies and innovations.

“The launch of the Nike App marks a critical expansion of Nike’s digital ecosystem in SEA&I (Southeast Asia and India),” said Sanjay Gangopadhyay, VP of Nike SEA&I, in a release. “Through this launch, we are creating meaningful relationships with our local members, and inspiring and equipping them to move.”

Among the benefits that members can get from the Nike App is exclusive access to the latest product drops.

To kick off the app’s launch, Nike is providing access to Space Jam products, in time for the release of the movie starring National Basketball Association superstar LeBron James.

Members can also unlock rewards through their personalized “Member Wallet” where different offerings, including exclusive promotions and access to events are found.

Another feature of the app is the inspirational content, which provides sport and style tips to help achieve one’s goals. Content includes access to guidance and community and Nike stories. The app also connects to the Nike Run Club and Nike Training Club apps, delivering one integrated and intelligent experience to members.

“A key focus with developing the Nike App for SEA&I was ensuring that the content, experiences, services and product offers are customized based on what we know Nike members in SEA&I want most from us,” said Xia Ding, VP of APLA Nike Direct Digital Commerce.

Nike said that it is also important that members feel secure with the information they share in the app, which is why it is making sure that how the data it collects are used is clearly explained through the app’s Privacy Policy section.

Consumers downloading the Nike App until July 22 will receive a 10% discount off their next purchase within the app. — Michael Angelo S. Murillo

SEC warns versus entity’s promise of huge returns

THE Securities and Exchange Commission (SEC) is warning the investing public against an unauthorized entity promising lucrative returns.

“The commission was made aware of the illegal investment-taking activities of 3X1 Marketing Services/Leovic 3X1 Wellness and Beauty Center owner and operated by Leovic Nachor Montemayor,” the SEC said in an advisory dated July 8.

The Montemayor-led entity attracts investors by offering a passive income program, which promises a 210% return within 35 days or six percent daily.

It also has other programs to entice would-be investors.

One can put in as low as P1,500 for “binary products” and earn 10% in a direct referral bonus. For another program called “Task, Captcha,” 3X1 Marketing Services said an account worth P1,500 may earn P1,500 to P1,950 in 15 days by captcha encoding and by performing an “undisclosed task.”

Leovic 3X1 Wellness and Beauty Center holds a Certificate of Business Name Registration from the Department of Trade and Industry with BN 2911692, which was issued to Mr. Montemayor on May 15. However, the entity is still not authorized to collect investments as a registration or a license from the commission is still needed. 

3X1 Marketing Services/Leovic 3X1 Wellness and Beauty Center is not registered with the commission as a corporation or as a partnership. The SEC said none of the two have a license to collect investments and these are also not registered as a crowdfunding intermediary or a funding portal.

BusinessWorld sought comment from the entity through 3X1 Marketing on Facebook, but it has yet to respond as of press time.

“The commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code (SRC), the Revised Corporation Code, and such other rules and regulation enforced by the commission,” the corporate watchdog said.

Those who act for 3X1 Marketing Services/Leovic 3X1 Wellness and Beauty Center in collecting investments from the public may be prosecuted or held criminally liable, the SEC said. Persons may be fined a penalty fee worth P5 million at most and/or face 21 years behind bars.

“In addition, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed,” the SEC said.

The commission also calls on the public to not invest in or stop investing in 3X1 Marketing Services/Leovic 3X1 Wellness and Beauty Center. Those with information about the entity’s operations are also called on to report these to the SEC. — Keren Concepcion G. Valmonte

Weak demand to push up rates of T-bills, bonds

BW FILE PHOTO

RATES OF government securities on offer this week may inch higher after the peso hit the P50-per-dollar level and as demand for safe-haven assets wanes as economic recovery picks up.

The Bureau of the Treasury (BTr) will auction off P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.

On Tuesday, the BTr will offer P35 billion in fresh 20-year Treasury bonds (T-bonds).

Two bond traders interviewed on Friday said they expect T-bill rates to move sideways with a slight upward bias from the yields fetched at last week’s auction.

For the 20-year bonds, the first trader sees its coupon rate ranging from 4.875% to 5.125%, while the second trader gave a higher forecast range of 5% to 5.25%.

“The market has put on a defensive stance this past week due to relatively elevated USD/PHP levels and breaching the P50 psychological handle,” the first trader said.

The peso depreciated to P50.08 against the greenback on Friday from its P49.875 close on Thursday. This was its weakest finish in more than a year or since its P50.19-per-dollar close on June 23, 2020.

Meanwhile, the second trader said demand for government securities has been tapering off recently as investors are starting to shift to other high-yielding assets on signs of economic recovery here and abroad.

The Philippines’ exports and imports of goods continued to grow in May, albeit at a slower pace than April, latest Philippine Statistics Authority data showed.

Exports rose 29.8% year on year to $5.89 billion in May to bounce back from the 27% contraction a year ago, while imports increased by 47.7% to $8.65 billion from the 41% decline in the same month last year. However, analysts noted that the rebound was lower than  expected and the surge may have been largely due to base effects.

Local manufacturers also reported improving conditions in June after IHS Markit’s Philippine Manufacturing Purchasing Managers’ Index (PMI) grew to 50.8 last month from 49.9 in May, the first time since March that the index breached the 50 neutral mark that separates contraction from expansion.

The BTr last week made a full award of its offer of P15 billion in T-bills, with total tenders reaching P49.323 billion.

Broken down, the Treasury raised P5 billion as programmed via the 91-day debt papers. The three-month papers fetched an average rate of 1.044%, up from the 1.031% quoted at the June 28 auction.

It also borrowed the planned P5 billion from the 182-day T-bills at an average rate of 1.351%, up from 1.332% previously.

Lastly, the BTr made a full P5-billion award of the 364-day securities it offered, as the average yield inched up to 1.568% from 1.562% seen the week prior.

Meanwhile, the last time the Treasury offered the 20-year tenor was on June 29, when it raised P35 billion as planned via reissued papers which have a remaining life of 11 years and eight months. The offer attracted P65.265 billion in bids.

The reissued bonds fetched an average rate of 4.187%, higher than the 3.635% coupon quoted for the series.

At the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.178%, 1.412% and 1.602%, respectively based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. Meanwhile, the 20-year note fetched a rate of 4.967%.

The Treasury is looking to raise P235 billion from the local market this month: P60 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Beatrice M. Laforga

Mitsubishi PHL welcomes new president and CEO

Outgoing Mitsubishi Motors Philippines Corp. (MMPC) President and CEO Mutsuhiro Oshikiri (second from right) turns over a symbolic key to his successor, Takeshi Hara. With them are MMPC FVP for Sales Cecil Capacete (left) and MMPC SVP for Finance Arnold Armario (right). — PHOTO FROM MITSUBISHI MOTORS PHILIPPINES CORP.

Takeshi Hara vows to work on ‘customer experience’

By Kap Maceda Aguila

AT THE START of the month, Mitsubishi Motors Philippines Corp. (MMPC) officially welcomed Takeshi Hara as its new president and CEO. He succeeds Mutsuhiro Oshikiri, who had helmed the company since Aug 1, 2017.

In a release, MMPC said that it “remained to be the strong number two automotive brand in the country” throughout the outgoing executive’s stint. “During the most challenging time of the COVID-19 pandemic, Mr. Oshikiri steered the company and implemented structural reforms to strengthen MMPC,” the company continued.

Under his watch, Mitsubishi in the country reached several milestones: one million units in sales, its 700,000th vehicle produced, and the 200,000th L300 made. Additionally, MMPC sold its most number of units in a month (6,822 in March 2017), launched its best-selling Xpander MPV, and also unveiled a Euro 4-compliant Mitsubishi L300.

“Though there are a lot of challenges that we encountered in the past, I consider myself lucky to have been part of a strong organization that demonstrated admirable resiliency during the most trying times. I am confident that I am leaving MMPC to good people that will uphold its values and will serve the brand well,” said Mr. Oshikiri in a speech delivered last week during the online turnover ceremony, attended by MMPC officials and members of the media.

As he paid tribute to his predecessor (who will be retiring), Mr. Hara said that he aims to “develop and execute programs that revolve around customer experience,” with a view to bringing the Mitsubishi brand “closer to the heart of the Filipinos.”

The new MMPC chief has spent a huge chunk of his career with the brand, having joined Mitsubishi Motors Corp. (MMC) back in 1993. Mr. Hara assumed various roles and assignments ranging from plant operation, corporate planning, sales and after-sales for MMC in Japan, and several other countries including Thailand. Prior to his posting here, he was in Puerto Rico from 2019 to 2021 as president and CEO of Mitsubishi Motors Sales Caribbean, Inc., MMC’s subsidiary and distributor there. Mr. Hara started to transition into his new role MMPC last April as executive vice-president and assistant to the president and CEO.

“Similar to our products that are designed to cater to various lifestyles and life stages, we will use each moment as an inspiration to provide more value to our offerings and further improve our service. We will forge brand partnerships that will align us better with Filipino interest and considerations. We will strengthen brand love by supporting all things that matter to our valued customers,” continued Mr. Hara. “I’d like to create more ways to appeal to our various customers.”

Along with the improvement of customer experience, the executive said MMPC will continue to leverage the brand’s technology and embark on a digital transformation — areas that are expected to appeal to a tech-savvy market. “The Philippines is a very young country,” Mr. Hara noted.

Meanwhile, MMPC FVP for Sales Cecil Capacete expressed hope that the business climate will be much better this year, adding that the company seeks to improve on its 15% market share, as well as fortify its strong number two position. For his part, MMPC SVP for Finance Arnold Armario said that while he is “confident about (the business) rebounding this year,” it hinges upon the rollout of vaccines.

Replying to a question from “Velocity,” Mr. Hara said he sees the opportunities and strengths in the Philippine market predicated on “relationships, family, (a) great atmosphere.” He noted the brand’s “very strong” SUV and pickup products, and its manufacturing activities as well.

“We can increase market share,” he declared, and shared that the company will be launching two new vehicles in the near future.

1...6,7126,7136,714...13,140Page 6,713 of 13,140
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube