Shares tied to reopening trades from casinos to airlines surged in Asia on Monday after Pfizer Inc. said that its COVID-19 pill could reduce hospitalizations and deaths in high-risk patients by 89%.
A Bloomberg gauge of Macau casino shares jumped 7.2%, the biggest move in over two months, while an index of Asia-Pacific airline stocks rallied as much as 5.5%, the most since March. Luggage manufacturer Samsonite International SA climbed 15% in Hong Kong.
The buying frenzy in Asia — which tracks gains among similar stocks in the U.S. — comes as Pfizer looked to become the second pharmaceutical company to offer an oral pill to combat the virus. While Pfizer’s drug has yet to receive emergency authorization from U.S. regulators, investors say that it shows promise to help ease the pandemic globally and accelerate a return to travel.
The pill is “bringing some hope that reopening will be able to take place more smoothly, especially if the pill is able to reduce the strain on hospital capacity,” said Jun Rong Yeap, market strategist with IG Asia Pte. in Singapore. “The fact that it is an oral treatment may also suggest that it may be more well-received, along with its high efficacy.”
Meanwhile, makers of COVID-19 vaccines and treatments in the region slumped, with CanSino Biologics Inc. sinking as much as 20% in Hong Kong. Wuxi Biologics Cayman Inc., which makes ingredients for AstraZeneca Plc’s vaccine, and Shanghai Fosun Pharmaceutical Group Co., which has a deal to distribute BioNTech and Pfizer’s vaccine in Greater China, fell by at least 9.7% in Hong Kong.
If successful, Pfizer’s pill “may create uncertainties for earnings outlook and valuations of Chinese vaccine makers,” said Daniel So, a strategist at CMB International Securities. “The impacts are expected to be of mid-to-long-term.”
In Japan, Shionogi & Co., which has been developing a rival drug to Pfizer’s, fell the most since March 2020. The firm is expecting late-stage trial data on that treatment by December. Takara Bio Inc., which has a contract to produce mRNA vaccines in Japan starting next year, fell the most since May of last year.
Last month, Merck & Co. submitted its experimental treatment to regulators, after a study showed it slashed the risk of getting seriously ill or dying by half in certain patients. Vaccine related shares also plunged after that news. — Bloomberg
Chicago’s O’Hare International Airport. -- Image via Clayton Hauck/Choose Chicago/FCB
WASHINGTON — The United States is expecting a flood of international visitors crossing its borders by air and by land on Monday after lifting travel restrictions for much of the world’s population first imposed in early 2020 to address the spread of coronavirus disease 2019 (COVID-19).
United Airlines is expecting about 50% more total international inbound passengers Monday compared to last Monday when it had about 20,000.
And Delta Air Lines Chief Executive Ed Bastian has warned travelers should be prepared for initial long lines.
“It’s going to be a bit sloppy at first. I can assure you, there will be lines unfortunately,” Mr. Bastian said, adding that “we’ll get it sorted out.”
Delta said in the six weeks since the US reopening was announced it has seen a 450% increase in international point-of-sale bookings versus the six weeks prior to the announcement.
White House spokesman Kevin Munoz said on Twitter “As we expect high demand when the US lifts its existing air and land travel restrictions Monday, we are taking critical steps to be prepared by providing additional resources.”
The Biden administration has held multiple calls with US airlines to prepare for the influx of additional travelers that will begin arriving at US airports and has warned travelers crossing from Canada and Mexico by land or ferry to be prepared for longer waits starting Monday.
For Bhavna Patel, a flight from London will take her to New York on Monday to see her first grandchild after more than a year of watching him grow via FaceTime.
The rules have barred most non-US citizens who within the prior 14 days have been in 33 countries — the 26 Schengen countries in Europe without border controls, China, India, South Africa, Iran, Brazil, Britain, and Ireland.
Trade group US Travel said the countries accounted for 53% of all overseas visitors to the United States in 2019 and border communities were hit hard by the loss of tourists crossing from Mexico and Canada. The group estimates declines in international visitation “resulted in nearly $300 billion in lost export income” since March 2020.
US airlines are boosting flights to Europe and other destinations that were impacted by the restrictions. Airlines are planning events on Monday with executives meeting some of the first flights.
Commerce Secretary Gina Raimondo and United Airlines President Brett Hart are holding an event at Chicago’s O’Hare International Airport Monday to mark the reopening.
Many international flights are expected to operate close to full or full on Monday, with high passenger volume throughout the following weeks.
Airlines will check vaccination documentation for international travelers as they currently do for COVID-19 test results. At land border crossings, US Customs and Border Protection will ask if travelers have been vaccinated and spot check some documentation.
Children under 18 are exempt from the new vaccine requirements. Non-tourist travelers from nearly 50 countries with nationwide vaccination rates of less than 10% will also be eligible for exemption.
Also Monday, new contact tracing rules will take effect requiring airlines to collect information from international air passengers if needed “to follow up with travelers who have been exposed to COVID-19 variants or other pathogens.” — David Shepardson/Reuters
Money Talks is a series on personal finance sponsored by Metropolitan Bank & Trust Co. (Metrobank).
The pandemic has brought with it a newfound interest among Filipinos to participate in the stock market. Data from the Philippine Stock Exchange (PSE) showed that the average daily number of trades in 2020 soared 33.7%, while retail participation surged by 47.8%. This follows an increase in online accounts by 19.7% to 936,000, while non-online accounts grew by 3.3% to 460,553.
In this B-Side episode, Ruben L. Zamora, Metrobank’s First Vice President and Head of the Institutional Investors Coverage Division discusses with BusinessWorld why more Filipinos are more willing to “let their money work for them,” as well as how the beginner investor can sift through their options to start their financial journey.
TAKEAWAYS
You can be doing more with your savings.
“Putting your money to work is really about making your savings earn more and do a bit more work to build and accumulate wealth through investing,” Mr. Zamora said. “The days of earning interest from a simple savings account, those days are long gone. And that goes for everyone in the world, not just here in the Philippines.”
Investing is [not] a rich man’s game.
Whether with P10,000 or P100,000, there are good options to choose from for beginner investors.
“The good news here to those who are just starting out: You don’t need a big pot of money anymore to start the investing journey,” Mr. Zamora said. “Now more than ever, there are so many investment options for you to choose from. If you want a little bit more return and you’ve done your homework, and feel like you can tolerate and accept a bit more risk with your investments, start with an index tracker fund on the whole market that you know.”
Your participation matters.
Investing is not zero-sum game. More local investors in the market can help its general health in the long run.
“This is something healthy, something that we would welcome for our local capital markets. And the reason is that with the base of retail investors broadening out, more local investors participating, it means that we are not as reliant as we used to be on foreign investors or foreign capital flows,” Mr. Zamora said. “These flows can get pretty cold very quickly and we’ve seen that in this crisis, with foreigners exiting both the stock market and the fixed income market.”
Do your homework. Especially if it’s about cryptocurrency.
“As a beginner investor, you don’t really want to invest in something you don’t understand well enough. You need to do a lot more homework, especially as you move up the risk ladder. And risk ladder-wise, I would put cryptocurrency right at the top,” Mr. Zamora said.
Recorded remotely on Oct. 13. Interview by Santiago J. Arnaiz, BusinessWorld contributor and chief operating officer of health startup Day3 Innovations. Research by BusinessWorld special features writer Bjorn Biel “JB” M. Beltran. Produced by Paolo L. Lopez and Sam L. Marcelo.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Kittelson & Carpo Consulting, Inc. (KC) will officially change its name to In.Corp Corporate Services Philippines, Inc. to unify its presence with its parent company, InCorp Global Pte. Ltd (InCorp Group).
Such transition to In.Corp Philippines will nonetheless maintain the mission of KC to serve partners by simplifying business processes — only now with a capacity to reach beyond borders.
KC has been helping companies set up and do business in the Philippines since 2007, providing services from business registration needs, end-to-end corporate solutions, and human resources (HR) assistance. It has supported over 1,500 local and foreign entities by far. In 2017, KC was acquired by the InCorp Group.
Based in Singapore and present in six other Asian countries, InCorp Group is a leading corporate solutions provider to various business entities from startups and small and medium enterprises (SMEs), sole proprietorships, partnerships, and corporations. They specialize in company incorporation, corporate secretarial and compliance, share registry, outsourcing, accounting, taxation, immigration, business advisory, risk assurance, and corporate recovery.
Atin Bhutani, Chief Executive Officer of InCorp Group, stated, “We met Kittelson and Carpo Consulting one year after InCorp was founded. During our first meeting, we realized that what they had set out to achieve and what our vision was were absolutely similar.”
Seeing a niche as well as unique opportunities and challenges in the Asian market, InCorp Group envisioned building corporate solutions affiliates across the region.
He added, “On one hand, you have Singapore as a gateway to Asia-Pacific, and on the other, you have one of the fastest-growing markets in the region. In no time we realized that we should do it together and we should do it as partners. It was, all in all, a match made in heaven.”
As its subsidiary in the Philippines, KC has great support from InCorp Group — from creating a robust Know Your Customer (KYC) and client due diligence system; pushing for automation and artificial intelligence in monitoring client accounts; to cross-selling services. The group also gave financial and marketing insight and discipline to the business consulting firm.
More support and developments in doing business with clients await KC upon its transition to In.Corp Philippines.
Currently, the company is working on transfer pricing initiatives and data protection compliance to grow its services. With corporate compliance becoming more complex and burdensome, the firm looks forward to learning from the experience of InCorp Group professionals.
KC can also further maximize the larger team and regional capacities of InCorp Group, allowing its clients to tap into a greater range of services across borders.
InCorp Philippines Country Head and President Amanda Carpo expressed, “The impact InCorp Global has had on our company enables us to take our services to the next level in terms of compliance and standards. We’re able to provide our clients access to other markets.”
Moreover, through InCorp Group’s partnership with TA Associates and PrimeGlobal, KC is at an advantage in augmenting its endeavors to offer service from a global perspective.
Understanding business processes in various jurisdictions, for KC, would create a better perspective and an opportunity for clients to reach markets.
Moreover, with a broader reach, the new recognition of KC as In.Corp Philippines can boost its goal to increase foreign investment as well as investor confidence in the Philippines, Asia-Pacific, and globally.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Live your own story at Salcedo Village, Makati City
A new chapter begins where you get to live your own story amid the center of Makati’s financial district and among a welcoming family with the much-awaited opening of Somerset Central Salcedo Makati today.
The newest addition to the expanding portfolio of The Ascott Limited Philippines brings the serviced residence experience to new heights. Offering the comforts of a home and the conveniences of a hotel, Somerset Central Salcedo Makati makes for the perfect home for all travelers. What sets the residence a cut above the rest are its prime location, modern design, and familial service.
“Somerset Serviced Residence is an Ascott brand that centers around the collective interests of integrating personal and social lifestyles, while promoting ‘inspired living’ for everyone to achieve more and to live fully. At Somerset Central Salcedo Makati, our residents and employees are all part of our big family,” says Daniel Wee, Country General Manager of The Ascott Limited Philippines.
For now, Somerset Central Salcedo Makati welcomes quarantine guests only due to the current COVID-19 alert level status in the National Capital Region. However, leisure guests can now place bookings as the residence looks to open for multi-use soon.
Central at Salcedo Village
Located at H.V. Dela Costa St. in Salcedo Village, Somerset Central Salcedo Makati comes alive in one of the country’s most exciting business and lifestyle districts. Salcedo Village has convenient access to the airport, the biggest corporate offices, and major thoroughfares. As a premier address, it also offers quiet Sunday strolls, relaxing weekend markets, and an abundant selection of dining destinations.
Somerset Central Salcedo Makati stands out as an exquisite 32-storey building featuring a lobby of classic elegance. The residence presents 285 spacious rooms spread across five luxurious apartment types: Studio Apartment (24 sq m.), Studio Premiere (41 sq m.), One-Bedroom (51-55 sq m.), Two-Bedroom (83-86 sq m.) and Three-Bedroom (151-168 sq m.) units. Rate starts at Php4,800.
Each apartment is well-appointed with modern home comforts, from ensuite bathroom to split air-conditioning and wireless internet access. The bigger units have fully-equipped kitchens and washer and dryer for complete convenience. For fun and relaxation, the residence has a swimming pool, fitness centre, a Residents’ Lounge and Cubbies playroom for kids. There’s also a host of business support facilities, including the Azalea Function Room with a seating capacity of 100 people.
Somerset Central Salcedo Makati enriches Salcedo Village’s thriving dining scene as well with the opening of Nonya Café. The place will serve the best and most authentic Singaporean and Malaysian cuisine, plus a wide range of classic Western and other Asian dishes. At night, Nonya Café will offer cocktails and a wide selection of wines and spirits for memorable nightcaps.
Heart and family at the center of Somerset’s service
“We at The Ascott Limited Philippines treat each other as family, and this special bond translates to how we welcome and serve every guest in all our properties, including here at Somerset Central Salcedo Makati,” says Susan Salcedo, General Manager of Somerset Central Salcedo Makati and the City Manager of The Ascott Limited Philippines. “When we say ‘you will feel at home’ with us, we truly mean it.”
A brand of unrivaled hospitality and service of genuine care await guests at Somerset Central Salcedo Makati. These qualities are embodied by The Ascott Host, a global program of the company designed to deliver personalized service to guests.
Another world-class Ascott program ensures the health and safety of its guests and employees. The Ascott Cares is developed in partnership with Bureau Veritas, a world leader in testing, inspection, and certification in hygiene and health standards. The program lists nine commitments that uphold enhanced hygiene and safety standards, wellness support and sustainability practices.
Newly integrated into the Ascott Cares program is the “24/7 On-Call Wellness & Security measure.” In partnership with International SOS, round-the-clock health, wellness and security support is now a phone call away to give guests greater comfort and reassurance.
The Ascott Limited Philippines is now looking forward to the opening of another Somerset property in Makati next year. Also in the pipeline are properties in Quezon City, Greenhills, Laguna, Davao and Cebu.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
The Philippine Statistics Authority is scheduled to release third-quarter economic data on Nov. 9. — PHILIPPINE STAR/ MICHAEL VARCAS
By Jenina P. Ibañez, Senior Reporter
ECONOMIC GROWTH likely slowed in the third quarter after lockdowns were reimposed in August to curb a surge in coronavirus infections, economists said.
The country’s low vaccination rate and inflationary pressures could continue to weigh on recovery for the rest of the year, they added.
A BusinessWorld poll of 18 analysts yielded a gross domestic product (GDP) growth median estimate of 4.7% for the July to September period, much slower than 11.8% in the second quarter but a turnaround from the 11.4% contraction a year earlier.
Growth in the second quarter this year signaled the country’s exit from recession after five straight quarters of decline.
If realized, the third-quarter GDP estimate would bring economic growth this year to an average of 4% in the first nine months, settling at the lower end of the government’s reduced GDP target of 4-5% for the year.
The Philippine Statistics Authority is scheduled to release third-quarter economic data on Nov. 9.
The government once again placed Metro Manila under a stricter enhanced community quarantine (ECQ) for two weeks in August as coronavirus disease 2019 (COVID-19) cases soared.
Analysts expect third-quarter growth to have slowed compared with the previous three months, although at different extents.
Rajiv Biswas, chief economist for Asia and the Pacific at IHS Markit, said third-quarter GDP growth could have slowed to 3.5%.
“The imposition of enhanced community quarantine measures in August and September in Metro Manila disrupted consumption spending and also impacted adversely on many segments of industrial production,” he said in an e-mail.
University of the Philippines economist Jefferson A. Arapoc said the country’s GDP likely grew by 4.8%, which he said came from a very low base a year ago.
“This positive growth isn’t that impressive given the worst recession we experienced last year,” he said in an e-mail.
Makoto Tsuchiya, an economist from Oxford Economics, said in an e-mail that the elevated inflation and mobility restrictions have dampened consumer spending.
“Higher inflation is also weighing on consumer’s real purchasing power leaving less to spend on nondiscretionary income,” he said.
Meanwhile, Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail he expected third-quarter GDP growth at 8% as the economy has “started to take off under the new normal.”
“The economy is operating almost under full capacity. The economy has its hands full to satisfy a normal operation as proven by the increase in the country’s inflation rate approximating the government inflation target of 2-5%,” he said.
Lockdown restrictions were gradually loosened in September, allowing more businesses to operate although at a limited capacity.
Inflation in August was 4.9%, the fastest recorded in 32 months as food and utility prices soared during the strict lockdown. The consumer price index slightly eased to 4.8% in September.
Analysts expect economic growth to improve as most businesses restart activities ahead of the holidays, but low vaccination rates may prove to be a risk.
More mobility for fully vaccinated individuals will help improve domestic consumption, Moody’s Analytics Associate Economist Sonia Zhu said in an e-mail.
“However, a huge proportion of household savings lost during the pandemic will weigh heavily on private consumption in the near term,” she said.
“Headline inflation needs a close watch. The risk of elevated price growth becoming more entrenched has increased amid a global energy crisis and supply-side disruptions. There is a possibility that (the Bangko Sentral ng Pilipinas) may be forced to tighten monetary policy settings earlier to anchor expectation if inflation does not cool.”
Oxford Economics’ Mr. Tsuchiya said momentum could pick up in the fourth quarter as COVID-19 cases continue to decline, but he said full-year GDP could still grow at 3.4%, falling short of the government target.
“Looking further ahead, the gradual loosening in restrictions bodes well for domestic recovery, but a low vaccination rate means the country remains vulnerable to COVID-related setbacks and the recovery path will be bumpy,” he said.
ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail the widening trade gap could also cap overall GDP as exports and remittances are unable to keep the current account in surplus.
The trade gap in the nine months to September widened to $29.19 billion from $17.95 billion a year earlier, data from the Philippine Statistics Authority showed.
“Unlike in previous episodes, the stark ballooning of the trade deficit in 2021 is not solely driven by a sustained surge in capital goods designed to build future capacity,” Mr. Mapa said.
“The 2021-2022 episode shows a modest pickup in capital goods but also a bloated energy and commodities bill due to higher global costs. These developments alongside a possible global slowdown due to higher inflation and hawkish central banks, the timeline just to get back to where we were before COVID may just have to be extended further.”
THE HOUSE of Representatives will tackle measures seeking to either suspend or lower the excise tax on oil when sessions resume on Monday.
“Congress would like to be informed of how fuel prices have shot up so fast in a matter of weeks, so that we can possibly come up with measures that will help mitigate this emerging obstacle towards our recuperation,” Speaker Lord Allan Jay Q. Velasco said in a statement.
The House Ways and Means Committee will begin hearings on the bills proposing to reduce or suspend excise tax on fuel products.
Albay Rep. Jose Ma. Clemente S. Salceda, who heads the committee, filed a bill that seeks to exempt diesel and kerosene from excise tax, and reduce the excise tax on gasoline to P7 per liter (/L) from P10/L from Dec. 1, 2021 to June 1, 2022.
Deputy Speaker and Cagayan de Oro Rep. Rufus B. Rodriguez also filed a bill that would roll back the excise tax on fuel products for the next five years to the rates provided under the National Internal Revenue Code before it was amended. This would lower the excise tax on regular gasoline to P4.35/L and unleaded to P5.35/L, while no excise taxes will be imposed on diesel, kerosene, and liquefied petroleum gas.
“As we prepare for the wider reopening of businesses, we must ensure that our economic recovery will not be hampered by unwelcome disruptions, such as the unimpeded sharp rise in the cost of fuel,” Mr. Velasco said.
Business groups on Friday asked politicians to reconsider their request to suspend oil and electricity taxes, and instead provide targeted relief measures for transport workers such as subsidies and cash transfers.
“For example, on the oil tax, public utility vehicles (PUV) account for only around 30% of total diesel consumption. Therefore, most of the benefits of a blanket suspension would go to people who don’t operate or use PUVs, as well as other oil consumers. These are funds that the government could and should use on public services that would most benefit lower income and vulnerable Filipinos,” according to the statement.
The statement was signed by eight groups, including the Financial Executives Institute of the Philippines, Makati Business Club and Philippine Chamber of Commerce and Industry.
Energy Secretary Alfonso G. Cusi earlier suggested the suspension of excise taxes on oil, as pump prices continued to soar. If implemented, Mr. Cusi said removing excise taxes might reduce pump prices by P8 to P10 per liter.
However, the Department of Finance warned that the suspension of excise tax would force the government to forego as much as P131.4 billion in revenue next year, possibly hindering economic recovery.
Meanwhile, Mr. Velasco said the House would prioritize the ratification of the proposed 2022 national budget as soon as the Senate passes its own version.
Senate leaders earlier said they aim to pass the budget bill by end-November.
“With such assurance from the Senate leadership, we do not see any major stumbling block in having a ratified and enacted 2022 national budget by December,” the Speaker said.
The House passed House Bill 10153 or the General Appropriations Act on third and final reading on Sept. 30. It was transmitted to the Senate on Oct. 25.
Congress adjourns for the Christmas break on Dec. 18. It will hold sessions from Jan. 17-Feb. 4, before adjourning for the national elections. Sessions will resume on May 23, with sine die adjournment on June 4. — Russell Louis C. Ku
FINANCE SECRETARY Carlos G. Dominguez III said financing from multilateral institutions is crucial to encourage private sector capital in clean energy transition projects in the Philippines.
Vetting done by multilateral agencies boost investor confidence to participate in resource-intensive clean energy transition programs done by developing countries, Mr. Dominguez said at a high-level ministerial dialogue at the 26th United Nations Climate Change Conference in Glasgow last week.
“It is very important that these multilateral agencies actually begin the projects that will allow the private sector to take part, I believe, and give them confidence that these projects have been studied very well, have been vetted by the multilateral agencies,” he said.
Mr. Dominguez told the panel that the multilateral banks could set transparency standards.
He had proposed that climate financing be done through a three-point “blended approach” in the form of grants, investment, and subsidies to improve vulnerable communities’ ability to adapt to climate risks.
The Finance chief has been pushing for more climate financing from wealthy economies that have not offered enough to help developing nations reduce their carbon footprint.
Such countries bear the most responsibility for their historic emissions, he said in the lead-up to the conference.
The dialogue tackled the progress made by countries to come up with a financial system to support climate resilience. Representatives from the UK, Uruguay, the NatWest group, and the Organisation for Economic Cooperation and Development also joined the meeting.
The Philippines has committed to reduce greenhouse gas emissions by 75% from 2020 to 2030. Of the 75% target, just 2.71% can be achieved with internal resources, while the remaining 72.29% rests on international assistance.
The Asian Development Bank (ADB) has partnered with the Philippines and Indonesia to launch an energy transition mechanism (ETM) that aims to fund the early retirement of coal-run power plants and replace them with renewable energy alternatives.
Meanwhile, nongovernment organizations (NGOs) said the state should not bail out coal power plant developers and their financiers, at the expense of taxpayers.
In an e-mailed statement on Sunday, Center for Energy, Ecology and Development (CEED) Executive Director Gerry C. Arances said the ADB’S ETM “seems eager to bail out coal developers and their financiers — using resources that include public funds, to boot — even though many of them pursued projects aware of stranding risks and social, environmental, and climate destruction they would bring.”
Asian Peoples’ Movement on Debt and Development Coordinator Lidy B. Nacpil noted the ADB’s ETM proposes the closure of half of coal-fired power plants in Asia within 15 years, starting with the Philippines, Indonesia, and Vietnam.
“Such a scheme would most likely involve the use of public funds to bail out private corporations invested in coal projects,” Ms. Nacpil said in a separate statement. She noted this would likely involve more loans, adding to the country’s debt burden.
CEED’s Mr. Arances said there is also no assurance that consumers will not shoulder the costs of the bailout through additional charges.
“Coal companies should be made to shoulder their proper part in early closure expenses…on top of any penalties that those of them who incurred complaints or violations are required to pay,” he said.
Convenor of public policy think tank Infrawatch PH Terry L. Ridon in an e-mailed statement said the ADB program should also be used to fund the rehabilitation or expand renewable energy projects.
However, that without safeguards in place to determine what technologies will be selected for filling the gap in power generation, NGO Forum Energy Policy and Campaigns strategist Tanya Lee Roberts-Davis said “there is the risk of new large-scale dams, waste-to-energy incinerators, or expanded fossil gas infrastructure being built.”
“All of which would have devastating impacts on fishing and farming dependent families across the country,” she added. — Jenina P. Ibañez and Bianca Angelica D. Añago
VOYAGER Innovations Inc., the digital arm of PLDT, Inc., will need additional funding to meet its growth requirements in 2022 and beyond, the company’s president said.
“We believe that for us to continue our growth, we need to be able to provide an end-to-end system… For us to be able to do that…, we need to invest, our shareholders including PLDT and Smart,” Voyager President Shailesh Baidwan said at a virtual briefing last week.
PLDT announced in June that Voyager had raised an additional $167 million (P8.15 billion) for the expansion of its financial technology unit PayMaya Philippines, Inc., including the establishment of a digital bank.
“[F]or our 2022 and beyond plans, we will be talking to our investors, and as part of that, we will decide on whether we want to keep it internal or get some other investors that would make sense for us to bring [in] as part of the mix. We will see our valuation at the next round when we get to it,” Mr. Baidwan, who is also the president of PayMaya, added.
Voyager’s shareholders include PLDT, global investment firm KKR, Chinese technology firm Tencent, and World Bank’s IFC Asset Management Company through its IFC Emerging Asia Fund and IFC Financial Growth Fund.
Manuel V. Pangilinan, chairman of PLDT, Voyager and PayMaya, said PayMaya “was valued at $747 million” in the last fund-raising exercise.
“[But] given the improvements…, the digital bank and with the gross transaction value increasing, I think our sense is that it’s about a billion US dollars,” he added.
“Of course, it’s subject to market test, but our sense is that we’ve probably achieved the unicorn status as we speak. It’s not quite at the level of Globe yet, but it’s about a billion US dollars.”
GCash operator Globe Fintech Innovations, Inc. (Mynt) announced on Nov. 2 that it raised over $300 million in fresh funding, bringing its valuation to more than $2 billion.
Mynt said GCash now has more than 48 million users, or nearly half of the national population. It aims to reach P3 trillion in gross transaction value this year, which would be three times more than the previous year’s record number.
For its part, PayMaya now has more than 41 million registered users across its consumer platforms, according to Mr. Baidwan.
He said PayMaya expects a 50% growth in gross transaction value by the end of 2021.
Orlando B. Vea, Voyager and PayMaya chief executive officer and founder, said in May that the digital payments company had processed P700-billion worth of transactions in 2020.
Meanwhile, the Bangko Sentral ng Pilipinas granted in September a digital banking license to PayMaya’s Maya Bank, which will be launched in the first quarter of 2022.
With the launch of Maya Bank and the expected higher gross transaction value, Mr. Pangilinan hopes that starting 2022, PayMaya’s valuation will be “higher.”
“I don’t think the market yet appreciates the impact of the increasing value of PayMaya onto the share price of PLDT,” he said.
For the first nine months, PLDT’s attributable net income declined 4.6% to P18.8 billion from P19.7 billion a year ago.
PLDT’s telco core income, which excludes the impact of asset sales and Voyager Innovations, climbed “10% year on year, or P2.1 billion, to P23.1 billion in the first nine months of 2021, helped by lower tax rates,” the company said in a statement.
PLDT shares closed 1.60% higher at P1,650 apiece on Friday.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
DITO CME Holdings Corp. is looking to put up a data center in Clark to service global technology companies, its president said.
“We have been in talks with about three foreign interested partners,” DITO CME President and Director Ernesto R. Alberto told BusinessWorld in a recent virtual interview.
“We are in continuing discussions with foreign partners that will allow us to look at a business model to tap into the hyperscalers, because this [will determine] the viability of [our] investment [to] lure these big locators to the country. These hyperscaler companies serve their customers across… Asia-Pacific and ASEAN,” he added.
He noted it is just a matter of “timing” for the company to move to the next level of its plan, considering the pandemic.
“When the opportunity arises, I think what we can bring to the table in any partnership is we have the real estate, we [also] have internally accomplished it particularly with the telco…, and we have the local expertise that will deliver that,” Mr. Alberto said.
Data center hubs in the region, particularly in Singapore and Hong Kong, are facing challenges. Hong Kong faces geopolitical risks as a result of China’s National Security Law, while Singapore has issued a moratorium to freeze data center construction due to sustainability concerns and landmass shortage.
“There is… opportunity, not only by telcos but also standalone technology companies that are moving away from Hong Kong because they have over-invested there, such as Google and Amazon — particularly US companies — for reasons we already know, and they are looking at the Philippines, amongst many other countries, for data center space. That’s under discussions today,” Mr. Alberto said.
“It’s a good opportunity. It’s just a matter of timing and capital. We do have land assets particularly in Clark, with Udenna Land, Inc. owning the new central business district,” he added.
DITO Telecommunity Corp. and Udenna Land broke ground in April this year on the new telco player’s first data center in Clark Global City, which is poised to become the central business district of North and Central Luzon.
DITO CME, which owns 54% of DITO Telecommunity, handles the Udenna group’s investments in media, communications, entertainment, and information technology. It has three digital companies: Unalytics, which provides managed analytics services; Acuity Global, which curates media properties across platforms and provides media planning and buying; and Luna Academy, an online education platform aimed at equipping users with future-ready skills, credentials, and certificates.
On Friday, DITO CME shares closed 1.19% lower at P6.62 apiece.
‘Mr. Christmas’ Jose Mari Chan is Shopee’s Christmas sale ambassador.
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‘Mr. Christmas’ Jose Mari Chan is Shopee’s Christmas sale ambassador.
ACTOR Jackie Chan stars in a new ad for Shopee.
SHOPEE can vouch for the fact that e-commerce has seen a substantial boost over the past year, and with the 11.11 sale set for Thursday, another boost can be expected.
“This year, the e-commerce industry saw a 7.6% increase in conversion versus 2020,” Martin Yu, Director at Shopee Philippines, said during a press conference on Nov. 3, citing a global special report from We Are Social and Hootsuite.
“Heavier shopper traffic has been translating into a spike of checkouts, an encouraging sign of how consumers have responded to the online shopping experience,” he said.
During the press conference, Shopee presented the bargains that shoppers can grab on 11.11 and again on 12.12. They also presented a new commercial by actor Jackie Chan, as well as introduced their Christmas sale ambassador, Mr. Filipino Christmas himself, singer Jose Mari Chan.
New Shopee users get a free welcome package, bills cashback, free shipping, 100% off vouchers, and ₱1 deals with their first purchase.Mr. Yu pointed to these gifts as proof of the increase of the impact of e-commerce with Filipino shoppers. “Five million welcome gifts for new Shopee users have been redeemed since the start of the year,” he said.
He added that during the 9.9 sales, one out of every three shoppers was new to the platform. He also reported that eight million new local shops opened on Shopee.
The number of sellers and brands on Shopee increased by 60% in 2021, “proving the importance of scaling up digitization.” On the consumer side, Mr. Yu said that 64% of Filipinos surveyed said that had bought something online during the past week. “They turn to online shopping for their daily essentials,” he said.
DEALS ONLINE AND IN-STORE Shoppers can look forward to exclusive deals from top brands such as Xiaomi, POCO, realme, Samsung, Nokia, Vivo, DJI, PerySmith, Deerma, Coocaa Home, and Bata Philippines during Shopee’s 11.11 sale.
Brands also stand to generate more in-store traffic through promotions from ShopeePay. Users can turn to Deals Near Me to check for special in-store deals from brands such as Puregold, National Bookstore, Fully Booked, Power Mac Center, The Generics Pharmacy, Family Mart, Lawson, Olympic Village, Shoe Salon, Potato Corner, Mary Grace, Bonchon, Papa John’s, Siomai House, and Fruitas Group of Companies.
Users can enjoy a quick and easy holiday shopping experience with Shopee’s Christmas in our Carts gift guides. They can get discounts up to 90% off on a wide range of branded gifts and bundles, from the latest gadgets to luxurious personal care items. They can also check out Shopee Mall for 10% off Mall vouchers, special deals on holiday gifts, and vouchers from their favorite brands. Highlights include 1-for-1 Deals, Early Platform Voucher Hunt, and Mega Midnight Sale, the Big Shopee Mall Sale on Nov. 8, the Big Electronics Sale on Nov. 9, and the Big Vouchers Sale on Nov. 10.
The 11.11 Christmas Sale TV Special, airing on GMA 7 and Shopee Live on Nov. 11, at 9:30 p.m., will showcase K-Pop stars NCT 127, as well as celebrities Jessy Mendiola, Aira Bermudez, Rocco Nacino, Klea Pineda, Andre Paras, and Gil Cuerva. Viewers stand a chance to win prizes and giveaways worth over ₱12 million, including two new house and lots and a car.
RATES of government securities could rise this week as yields at the secondary market climbed despite slower-than-expected inflation in October.
The Bureau of the Treasury (BTr) plans to raise P15 billion via the Treasury bills (T-bills) it will auction off on Monday, or P5 billion each in 91-, 182- and 364-day debt papers.
On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and eight months.
Rates on the government debt to be auctioned off this week could track the slight climb in secondary market yields following the US Federal Reserve’s announcement of the start of the reduction of its $120-billion monthly asset purchases at $15 billion per month, despite inflation turning out lower than expected, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message over the weekend.
He said the three- to 10-year tenors posted the highest weekly rise, “reversing the previous week’s downward correction as the Fed finally announced details of the $15-billion tapering as widely expected, but an important signal for the market is the patient stance of the Fed before any rate hike, which supported market sentiment.”
Fed Chairman Jerome H. Powell last week said they could stay patient and keep rates low to support the economy as the job market remains weak.
Meanwhile, inflation eased to a three-month low in October amid a slower increase in food prices, the Philippine Statistics Authority reported on Friday.
Headline inflation settled at 4.6%, slower than the 4.9% median estimate of 21 analysts in a BusinessWorld poll.
The October figure was slower than the 4.8% in September, but faster than 2.5% a year earlier. Still, this was the third straight month inflation exceeded the 2-4% target of the Bangko Sentral ng Pilipinas (BSP) for the year. Inflation has topped the BSP target this year except in July.
This brought headline inflation for the first 10 months to 4.5%, faster than the 4.4% forecast by the central bank for the year.
On the other hand, a bond trader expects higher yields as the market awaits the results of this week’s auctions.
“The Fed taper and rates announcements were already priced in as it was well-communicated beforehand,” the trader said in a Viber message.
“What market is looking for now is how aggressive BTr will borrow in the coming auction after awarding the FXTN 5-77 at higher than forecast rates,” the trader said, referring to the last week’s auction where the government made a full P35-billion award of the reissued five-year papers even as its rate climbed.
The bonds, which have a remaining life of four years and five months, fetched an average rate of 3.762% on Wednesday, up by 18.6 basis points (bps) from the 3.576% quoted for the tenor during the previous auction.
Tenders reached P46.65 billion, higher than the offer but lower than the P56.08 billion in bids fetched the last time these debt papers were auctioned off on Oct. 12, where the government made a full award.
At the secondary market on Friday, the 91- 182- and 364-day T-bills were quoted at 1.2164%, 1.4427% and 1.655%, respectively, while the 10-year bond ended at 4.9573%, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.
The government made a full award of the T-bills it auctioned off last week even as rates inched up ahead of the release of inflation data.
The BTr raised P15 billion as planned via the T-bills it auctioned off on Tuesday as the offer attracted P41.78 billion in bids, making it almost 2.8 times oversubscribed.
Broken down, the BTr borrowed P5 billion as planned via the 91-day T-bills from P13.08 billion in tenders. The three-month debt paper fetched an average rate of 1.13%, 1.1 bps higher than the 1.119% quoted in the previous auction.
It also raised the programmed P5 billion from the 182-day T-bills as the tenor attracted bids worth P14.94 billion. The average yield on the six-month debt stood at 1.395%, up 0.8 bp from 1.387%.
Lastly, the Treasury made a full P5-billion award of the 364-day securities as demand reached P13.76 billion. The one-year paper fetched an average rate of 1.613%, up by 0.7 bp from 1.606% previously.
Meanwhile, the last time the BTr auctioned off the reissued 10-year bonds on offer on Tuesday was Sept. 28, when it made a full P35-billion award from P73.59 billion in tenders.
The 10-year note fetched an average rate of 4.689% at that auction, higher than the 4.246% recorded in the previous offering and its 4% coupon rate.
The BTr plans to raise P200 billion from the domestic market in November, or P60 billion via weekly offers of T-bills and P140 billion from weekly T-bond auctions.
The government wants to borrow P3 trillion from local and external sources this year to help fund a budget deficit seen to hit 9.3% of the country’s gross domestic product. — Jenina P. Ibañez
