PHL’s largest telco-neutral data center provider bullish on growth as hyperscalers arrive

October 4, 2021 | 11:10 am

Data Center_stock photo_2_BIT — BW FILE PHOTO

The country’s largest telco-neutral data center to provide telco-grade and tailored data center services, Beeinfotech PH (Bee Information Technology PH Inc.), is confident that the Philippine data center market is ready to cater to the needs of global hyperscale companies. This is due to a variety of factors, including the growth of enterprise cloud and data center adoption in the market, rising Internet use, and the recent improvements in the nation’s Information and Communications Technology (ICT) capabilities.

Recent forecasts have revealed that developments in the Asia Pacific make the region a prime destination for hyperscalers. According to Frost & Sullivan, APAC will lead all the other regions as the top data center market in the world by 2025. The firm also noted that the Philippines is expected to boom in data center growth, with an average increase of 24% in data center supply within the next three to five years. This was highlighted by the Philippines’ Department of Trade and Industry in a recent online event announcing the arrival of hyperscale companies in the country.

Reynaldo Huergas, Beeinfotech PH President and CEO

“These projections show how the country’s ICT abilities have vastly improved throughout the years. It’s a testament that the Philippines is ready to take on a pivotal role in ensuring that the online services people around the world use daily and enjoy keep running through hosting the infrastructure of hyperscale companies within shores,” said Reynaldo Huergas, Beeinfotech PH President and CEO.

Hyperscale refers to the expansion of significant resources in a data center to quickly adapt to customer demand. The companies that have this ability are mostly IT enterprises that deal with a lot of real-time data through their online services, such as Google, Microsoft, and Amazon.

Huergas notes that despite these companies having their own data centers, certain logistical considerations make it much more feasible for them to colocate or host infrastructure within data center partners that already have the facilities. Beeinfotech PH’s own multi-million peso “The HIVE” facility launched in August, for example, has a 3,000-plus rack space well-suited for scaling resources quickly.

“It will take companies years to build their data center, not just because of the construction itself, but due to several hurdles such as the paperwork and permits that need to be complied with first. By colocating resources to a local data center partner, hyperscale companies can deploy immediately to answer customer demand at once,” adds Huergas.

Philippines as the next premier data center hub for hyperscalers

Beeinfotech PH notes that several hyperscale companies have been eyeing the Philippines for a while now. The country’s positive connections with the East and West make it a gateway for both to expand to the fast-rising APAC market, while allowing companies within the region to make their mark on the rest of the world. Beeinfotech PH also cites that the surrounding data center hubs in other ASEAN countries have become too congested to support the critical compute zones needed by hyperscale companies.

The rising number of undersea cables strengthening the country’s connectivity is also attracting global companies. Currently, there are 10 international submarine cable systems providing connectivity to the Philippines, and by 2024, there will be five more trans-pacific subsea cables connecting the market to the rest of the world.

Beeinfotech PH also contends that the high-ranking Internet use of Filipinos makes expansion into the Philippines as lucrative as ever due to the possibility of tapping a digital-savvy customer base of nearly a hundred million online users.

“The high Internet usage of Filipinos translates to a profitable market for hyperscalers. But to reach them first, hyperscalers have to bring their resources closer by either expanding or colocating. The closer their presence is, the faster the delivery of their content will be, thus enabling them to attract and retain a significant audience,” said Maricar Nepomuceno, Beeinfotech PH Senior Vice President, Strategic Planning & Business Development.

The rising data center market in the Philippines is another reason for hyperscalers to show up. Beeinfotech PH is among the few data center service providers in the Philippines with the facilities to host hyperscale companies. In addition to extending truly telco-neutral and bespoke colocation services, its The HIVE facility offers an open canvas within its premises to meet all stringent requirements and allow hyperscale companies more freedom in their colocation methods.

For more information on Beeinfotech’s hyperscale-ready services, visit beeinfotech.ph.

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[B-SIDE Podcast] Offline to online: winning the battle for brand loyalty in the digital space

October 4, 2021 | 10:25 am

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Digital spending went up 60% for every person in the past year, according to the third iteration of SYNC Southeast Asia, an annual report by Facebook and management consulting firm Bain & Company.

Titled Southeast Asia, the home for digital transformation, the report takes a look at emerging digital lifestyle trends in the region.

In this B-Side episode, Facebook Philippines country director John Rubio shares the stories behind the statistics. He tells BusinessWorld reporter H. Lacsamana how retailers can take their business offline-to-online with the help of 6 Rs.

TAKEAWAYS

The consumer journey is mostly digital.

Filipinos, who spend as much as 10 to 11 hours online, are able to translate their time to e-commerce activity, whether it’s discovering brands and products, considering whether to buy them based on research, or actually making purchases, according to Mr. Rubio.

This entire consumer journey now happens online — the study shows that the discovery and consideration phases now occur 80% and 83% online respectively.

“Before, for example, you’d be walking in the mall and maybe you’d hit a makeup stand and you’d say ‘yeah, I like that’ and try it out,” he explained. “What’s happened is a massive shift where that now happens online.”

To win the battle for brand loyalty, have a robust online presence.

A major concern for brands is that consumers are now more likely to switch, with 51% more Filipinos saying they switched their most-purchased brand in the last 3 months.

“What that really means for brands is they need to understand the customer journey we talked about and say, if discovery is now happening on digital, it’s happening on my Facebook or Instagram feed. It’s happening on Facebook Live. It’s happening on YouTube. It’s happening on TikTok,” said Mr. Rubio. “How do they leverage that?”

He recommended brands think about whether their website or social media pages provide enough details for potential customers.

Another factor is sustainability, for which around 80% of Filipinos said they would pay up to 10% more: “A lot of people now are very attuned to purpose. They want to buy some brands that are, for example, sustainable [and] adhere to the same social principles as they do, especially as we go to the younger segments.”

The convenience of e-wallets helped spur e-commerce.

With Filipinos purchasing 8.2 product categories in 2021 compared to just 4.7 in 2020, the convenience of payment modes has become important as well.

“People find the utmost convenience of being able to have a digital e-wallet and being able to pay online, whether to pay for Grab, Lazada, Shopee, Zalora, and so forth,” said Mr. Rubio. “It’s much more convenient to do that. You can even shop at midnight.”

Outside of the pandemic, the massive adoption of e-wallets drove e-commerce — the report found that 1 in 3 people now prefer to pay with an e-wallet.

Six Rs can help brands go from offline to online.

Majority of respondents (65-80% across markets) said their digital purchasing behavior may stick even after the pandemic.

In order for businesses to evolve with their consumers, Mr. Rubio suggested building a good offline-to-online (O2O) strategy with the help of 6 Rs:

Rewrite a digital first agenda.
Rewire your business model.
Reimagine your consumer engagement.
Refresh your product offers.
Re-envision your view of sustainability.
Realign a post-pandemic lifestyle.

“We need to make sure we’re experimenting so that we’re not one of those that are left out in a post-COVID world,” he said.

Recorded remotely on Sept. 14. Produced by Paolo L. Lopez and Sam L. Marcelo.

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Navigating the Digital World with SAP ERP

October 4, 2021 | 9:20 am

Nearly two years into the pandemic, it is clear that digitalization is crucial to modern businesses and their ability to navigate the unpredictable business climate. Digitalization is paving the way for organizations to utilize and engage with innovations and R&D activities as they explore new market opportunities. And, business leaders agree.

“Technology, such as cloud enterprise resource planning (ERP), has become an insightful conduit of knowledge for businesses, enabling them to manage through volatility,” Mickey North Rizza, Program Vice President of Enterprise Applications and Digital Commerce at the International Data Corporation (IDC), said.

She added that with the right combination of technologies such as cloud, mobile, intelligent processes, and real-time insights, businesses can utilize data to ensure that customer needs are met, no matter the circumstances.

Shari Lava, Research Director of Small and Medium Business at IDC explained, “Cloud ERP systems are where data come together to provide a snapshot of the health of the business. Cloud ERP systems can now connect, in real time, critical customer data to operational data such as outstanding customer invoices, payroll, and other business expenses such as outstanding supplier purchases. These insights provide a holistic financial view as well as a complete picture of the business, allowing a company to take the necessary action.”

SAP Business One is an end-to-end solution designed for the digital transformation needs of every business. It can support organizations to reach their goal of becoming an intelligent enterprise, augmenting business operations from accounting and financials, purchasing, inventory, sales, and customer relationships to reporting and analytics.

SAP Business One also allows companies of all sizes to have greater control over their key processes and gain deeper insight into their businesses’ performance — allowing for informed decisions based on real-time information that can drive profitable growth.

In the Philippines, SAP Business One is available through Integrated Computer Systems, Inc. (ICS), a leading IT solutions provider in the country for over 40 years. An official partner of SAP, as well as a number of global IT organizations, ICS is committed to see its clients through from end to end. The company’s pool of professionals are adept in delivering installation, support, maintenance, and consultancy services, ensuring that clients have everything they need to make the most of their IT investments.

“Our local partners help put SAP solutions to work to improve speed and stability across an entire business. Intelligent automation creates consistent, connected, end-to-end processes, while intelligent insights help customers overcome the hurdles that slow down growth and guide the decisions that can accelerate it,” SAP said.

SAP business management software lets organizations confidently stay ahead of change as they navigate the digital landscape, enabling them to grow their business into the future.

For more information on SAP BusinessOne and ICS, interested parties may visit www.ics.com.ph or inquire here.

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Panasonic presents PGH with patented nanoe^TM and nanoe^TM X-equipped appliances for use

October 4, 2021 | 8:15 am

Approved Photo PANA PGH — (From left to right) Dr. Jonas del Rosario, PGH Spokesperson, Dr. Regina Berba, Hospital Infection Control Unit Head, Dr. Stella Manalo, PGH Deputy Director for Hospital Operations Dr. Gerardo D. Legaspi, PGH Director, Mr. Masaru Toyota, Panasonic Air-Conditioning Philippines President and CEO, Yosuke Tanaka, Life Solutions Group Country Head Manager

Technology offers solutions that provide cleaner and fresher air for quality air for life

Panasonic, as part of its global campaign to spread advocacy for cleaner and fresher air for life, recently donated to the Philippine General Hospital – nanoe^TM air purifiers, nanoe^TM X generators, and air conditioners equipped with nanoe^TM X that have been verified to have inhibitory effects on the novel coronavirus*⁰.

The turn-over was attended by Panasonic Air-Conditioning Philippines CEO Masaru Toyota, Life Solutions Group Country Head Yosuke Tanaka, PGH Director Dr. Gerardo Legaspi, PGH Spokesperson Dr. Jonas del Rosario, Deputy Director for Hospital Operations Dr. Stella Manalo, and the Hospital Infection Control Unit Head Dr. Regina Berba.

In his statement, the Panasonic Air-Conditioning Philippines CEO Masaru Toyota explained that it has always been the intention of Panasonic, with the introduction of the nanoe^TMin 1997 and nanoe^TMX in 2016, to provide cleaner and fresher air to improve the quality of life for everyone.

Mr. Toyota further explained, “In 2009, with the help of an independent testing organization, Panasonic verified the effect of hydroxyl radicals contained in water against bird flu and new strains of influenza, and in 2012, in collaboration with an independent testing organization in Germany, we conducted virus clearance testing that showed effectiveness of the technology against highly-resistant viruses and unknown viruses.” *¹

Mr. Masaru Toyota, Panasonic Air-Conditioning Philippines President and CEO

“Just last year, again using an independent testing organization, Texcell*² – France, we have further verified the inhibitory effect of Panasonic’s patented nanoe^TMX technology on the novel coronavirus that causes Covid-19,” he added.

The PGH activity is part of a bigger program of Panasonic in the Philippines to provide air purifying and anti-covid technology of nanoe^TMX in selected sites in the National Capital Region to protect medical front liners and Filipinos in vaccination areas and to make them and the public feel safer with the theme “Bring Back the Filipino Smile” in partnership with selected local governments.

The Panasonic Philippines CEO said, “It is our aim for our medical front liners to feel they are in safer environment, and for patients to also have a sense of additional protection apart from current mandated hygiene practices like the wearing of masks, the use of face shields, and the use of hand sanitizers.”

The PGH Director Dr. Legaspi expressed his appreciation for the Panasonic efforts, “It’s turning out to be a very auspicious morning for the Philippine General Hospital, being granted this support, which improves our ability to give comfort to our healthcare workers as well as improve protection from aerosolized transmission of the virus.”

He added “As a research and training hospital, we in PGH welcome technologies such as these, that we will be able to test and validate as far as their effectiveness in helping us control the transmission of this virus and other infections as well.”

Masaru Toyota of Panasonic ended by lauding the efforts of everyone who have tirelessly worked hard and have been affected in the time of the pandemic, “We in Panasonic wish to begin to bring back the smiles of our heroes of the pandemic, those in the front lines against COVID-19 — all of you here at the Philippine General Hospital have been at the forefront against the pandemic since 2019. We appreciate your gallant efforts! Again, it is not just you, our front liners who will benefit from this, but also your patients who are recovering from this disease. You all deserve to feel safer and more secure to smile again.”

For more information on Panasonic and its patented technologies, please visit https://www.panasonic.com/ph/nanoe

___________________________________________________

Notes:

*⁰: based on the Texcell, global contract research organization, verified the inhibitory effect of the nanoe™ X technology with the benefits of hydroxyl radicals on adhered novel coronavirus (SARS-CoV-2) placed in 45L box. Over 99.99% of adhered novel coronavirus (SARS-CoV-2) activity was inhibited within 2 hours.

Note: This verification was designed to generate basic research data on the effects of nanoe™ X on the novel coronavirus in laboratory conditions different from those found in living spaces. It was not designed to evaluate product performance.

*¹: Main releases on verification cases

– May 12, 2009：Positive effects of charged water particles on viruses, bacteria, and agricultural chemicals have been verified.

– October 20, 2009： The new influenza virus inhibition effect of charged water particles has been verified.

– February 20, 2012：Suppression effect of charged water particles on pet-related allergens, bacteria, fungi, and viruses have been verified.

– January 16, 2014：Nano-sized electrostatic atomized water particles effectively break down PM2.5 components and inhibits growth of fungi attached to Yellow Sand.

*²: Texcell is a global contract research organization that specializes in viral testings, viral clearance, immunoprofiling and R&D or GMP cell banking, for your R&D, GClP, GLP and GMP projects.

With more than 30 years of experience and roots within the Pasteur Institute in Paris, Texcell has a long-recognized expertise in viral testing with a broad range of protocols for the detection of adventitious agents.

Texcell is the first spin-off of the Pasteur institute of Paris created in 1997.

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PHL raises $1.6B via retail dollar bonds

October 4, 2021 | 12:33 am

THE GOVERNMENT raised $1.593 billion (P80.91 billion) from its first-ever onshore retail dollar bond (RDB) sale last week, as it sought to support the widening budget deficit, the Bureau of the Treasury (BTr) said.

Finance Secretary Carlos G. Dominguez III told reporters over the weekend that the BTr closed its two-week offering of five-year and 10-year RDBs on Friday, awarding nearly four times as much as the initial $400-million target amid strong investor participation via electronic channels.

“Strong outcome could be attributed to platform channels used to disseminate far and wide information on RDB including access with our BTr mobile app and convenient and user-friendly investing apps like Bonds.ph, OF Bank app, First Metro Securities app and BTr ordering platform,” National Treasurer Rosalia V. de Leon said in a Viber message on Sunday.

More than half or $809.2 million worth of RDBs were sold through the digital channels in 520 transactions, according to Mr. Dominguez, which meant there was $1,500 worth of placements per online transaction.

“Of this volume of digital placements, roughly 40% or $329,400 are PesoClear placements. We were also able to reach Filipinos from more than 30 countries for the RDBs, including the Cayman Islands, Papua New Guinea, and Cyprus to name some,” the Finance chief said, citing a report from the Treasury.

Ms. De Leon said the higher-than-market rates offered by RDBs also helped attract small investors, lifting the overall amount raised during its maiden sale. No other details were available.

Proceeds of the fundraising activity will be used to fund the government’s recovery and resilience programs, as well as big-ticket infrastructure projects.

During the price-setting auction on Sept. 15, the Treasury raised an initial $866.2 million, broken down into $551.8 million in five-year RDBs and $314.4 million via the 10-year dollar-denominated notes.

The five-year bonds, which will mature in October 2026, had a coupon rate of 1.375%, while the 10-year bonds due in October 2031 fetched a 2.25% coupon.

The offer ran from Sept. 15 to Oct. 1. The RDBs were sold at a minimum investment of $300 (P15,000), with increments of $100 thereafter.

The bonds will be settled on Oct. 8 and will be listed and traded on the Philippine Dealing and Exchange Corp.

The state-run Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines served as the joint lead issue managers for the issuance, along with BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., Standard Chartered Bank and UnionBank of the Philippines.

The last time the BTr offered onshore dollar-denominated bonds was in December 2012, when it offered the papers to institutional investors only, raising $500 million in 10.5-year bonds from $1.7 billion in total bids.

The government aims to raise P3 trillion this year from local and foreign sources to plug its budget deficit seen to hit 9.3% of overall economic output. — Beatrice M. Laforga

Inflation likely reached 5% in Sept. — poll

October 4, 2021 | 12:32 am

Oil companies have raised pump prices, as crude oil prices continue to surge in global markets. — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

INFLATION likely quickened beyond the central bank’s target in September, as prices of food and utilities continued to surge, according to analysts.

A BusinessWorld poll of 17 analysts yielded a median estimate of 5% for the consumer price index, near the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP).

If realized, headline inflation will breach the BSP’s 2-4% target range for the second straight month.

This will also be faster than the 4.9% print in August and the 2.3% a year earlier. It will also mark the quickest rise since the 5.1% in December 2018.

The Philippine Statistics Authority will report September inflation data on Oct. 5.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said this can be attributed to the faster rate of increase in the prices of food staples, and the “unfavorable base effect” as inflation was relatively slow in the same month a year ago.

“The heavy-weight food sub-sector will remain the key driver for the recent inflation breach with fish, meat and vegetables all likely posting double-digit inflation. Adverse weather conditions and the ongoing African Swine Fever affected supply of the important food items for the month,” Mr. Mapa said.

BSP Deputy Governor Francisco G. Dakila, Jr. said they expect quicker inflation this year partly due to slower-than-expected arrival of pork imports.

Latest data from the Department of Agriculture showed agricultural losses from last month’s typhoons reached P1.26 billion and P19.21 million, respectively.

Adding to the upside risk is the increase in prices of production inputs, including feeds for livestock, Ateneo de Manila University economist Ser Percival K. Peña-Reyes said.

Security Bank Corp. Chief Economist Robert Dan J. Roces cited the hike in electricity and pump prices as a factor that could have driven the spike in inflation last month.

He noted that Manila Electric Co. has been raising power rates for the past six months. The utility firm increased the power rates for typical households by P0.1055 to P9.1091 per kilowatt-hour in September, citing higher generation charges.

“Oil firms have been adjusting their pump prices every week to reflect the upward movements in the world oil market. These may have caused the utilities and transport baskets to accelerate by 0.8% and 0.1% month on month, respectively,” Mr. Roces added.

Data from the Energy department showed that prices of gasoline, diesel, and kerosene increased year to date by P15.10, P12.95, and P10.65 per liter, respectively, as of Sept. 28.

Another factor for the likely faster inflation in September was the continued weakness of the peso, which probably caused pricier imports, Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

“Higher inflation from a weaker peso could further boost inflationary expectations and lead to more cautious spending behavior,” he said.

The peso was trading at around P50 to P51 per dollar last month. It closed at P51 on Sept. 30, which was its weakest trading finish since it ended at P51.07 on March 26, 2020.

Mr. Dakila has earlier said the BSP expects inflation to breach 5% in September before returning the target range by November this year.

The Monetary Board in their Sept. 23 policy review has raised the inflation forecast to 4.4% from 4.1% previously.

Despite this, the BSP has kept interest rates unchanged as it keeps an accommodative policy to support economic recovery.

“We think the central bank maintains its accommodative stance for now, looking through the supply-driven spikes as non-monetary measures are more suited to deal with these spikes,” Standard Chartered Bank economist Jonathan Koh said.

“The country’s economic recovery is uncertain. We keep our baseline view that the reverse repurchase rate will stay at 2% until a 25-basis-point rate hike at the end of the third quarter of 2022,” said Alvin Joseph A. Arogo, vice-president and head of equity research division at Philippine National Bank.

The government has downwardly revised its full-year gross domestic product (GDP) growth target to 4-5% from 6-7% previously.

BSP Governor Benjamin E. Diokno has said the economy may return to its pre-pandemic level by the fourth quarter of 2022 or the first quarter of 2023.

For her part, Moody’s Analytics Senior Asia-Pacific Economist Katrina Ell said the BSP might opt for a rate hike sooner if inflation remains elevated.

“Ideally, monetary policy would remain on hold and firmly accommodative until late next year to support the recovery, but the BSP may be forced to act earlier if inflation does not cool,” Ms. Ell said, noting their baseline expectation is for the first rate hike to happen by the second half of 2022.

The BSP has two more policy reviews scheduled this year set on Nov. 18 and Dec. 16.

Gross borrowings hit P2.4T

October 4, 2021 | 12:31 am

GROSS BORROWINGS by the National Government reached P2.387 trillion in the first eight months of the year as it continued to raise funds for the pandemic response, data from the Bureau of the Treasury (BTr) showed.

Based on preliminary data from the BTr, the eight-month borrowings were 3.52% smaller compared with the P2.47 trillion logged in the January-August period last year. The government sold retail Treasury bonds (RTBs) in August 2020.

In August alone, the BTr incurred P117.74 billion in new debts, down by 81% from the P612.913 billion in the same month last year, following the P516-billion RTB issuance in the same month a year ago. This was also 65% smaller when compared with P337.15 billion recorded in July.

Local borrowings accounted for 85.75% of the total.

Domestic borrowings stood at P100.967 billion in August, slumping by 82.7% from P584.4 billion a year ago. Month on month, new local debts also declined by 44% from P180.36 billion in July.

During the month, the government raised P132 billion via the weekly offering of Treasury bonds (T-bonds). This was partly offset by the P31 billion in net issuance of Treasury bills (T-bills).

Excluding the P171-million amortization, net domestic borrowings hit P100.796 billion in August.

Meanwhile, gross external borrowings stood at P16.77 billion in August, dropping 41.2% from P28.54 billion recorded a year ago and much smaller than the P156.79 billion in July.

The government obtained P12.17 billion in new foreign project loans in August, and another P4.6 billion via program loans.

It also made P50.98 billion in amortization payments. This resulted in a net redemption worth P34.21 billion in August.

Year to date, the government’s new debt accounted for 80% of the P3-trillion borrowing plan for the entire year. This consisted of 81% in domestic debt and 19% in foreign loans as the state prefers sourcing the majority of its debt from the local market to minimize external risks and foreign-currency fluctuations.

Gross domestic borrowings dipped 1.6% to P1.929 trillion during the January to August period. This was made up of P911.86 billion in T-bonds, P463.3 billion in RTBs, P540 billion in short-term borrowings from the central bank, and P14 billion in T-bills.

Net borrowings for the period reached P1.876 trillion, after the BTr repaid P405.4 billion of its maturing obligations.

Gross external borrowings for the eight-month period fell by 10% to P458.51 billion from P509.7 billion a year ago.

The Treasury raised P146.17 billion from global bonds, P121.97 billion from euro-denominated notes, and P24.19 billion in Japanese yen-denominated securities. It also incurred P99.69 billion in program loans, and P66.5 billion in project loans.

The government repaid P212.52 billion of its outstanding foreign debt so far, resulting in P245.99 billion in net external borrowings for the period.

The government borrows from local and foreign sources to plug a budget deficit seen to hit 9.3% of gross domestic product (GDP) this year.

The state’s outstanding debt surged 21% to P11.64 trillion at the end of August.

Economic managers are planning to scale down borrowings starting next year as part of its debt consolidation plan.

The debt stock is projected to hit 59.1% of GDP by yearend and peak at 60.8% in 2022, before easing to 60.7% in 2023 and to 59.7% in 2024. — Beatrice M. Laforga

SEC flags two more entities’ unlicensed schemes

October 4, 2021 | 12:08 am

THE Securities and Exchange Commission (SEC) issued an advisory against unregistered entities called E-Comm Shares and Pogi Breeds International for their respective unlicensed investment programs.

The commission warned the public not to invest or to stop investing in the schemes offered by the entities.

E-Comm Shares is said to be offering a 3% daily income to investors buying and selling shares through their platform.

Led by a certain William Thomas, the entity allegedly aims to “produce 1,000 millionaires” through its program.

The SEC said E-Comm is luring investors through its daily income rate offering which may be earned by investors “by just logging to his/her account and clicking the sell button for a total of 60 days.”

It also offers a direct referral bonus or “affiliate rewards” for its recruitment schemes.

E-Comm Shares is one of the entities flagged by the SEC in its advisories in September, which totaled 15 advisories. The commission also flagged Pogi Breeds International, which offers a “co-partnership program” for clients playing the Axie Infinity game.

E-Comm Shares and Pogi Breeds International are not registered with the commission as a corporation or as a partnership and both entities lack the necessary registration or license to solicit investments from the public.

Pogi Breeds is said to be “a group of persons claiming to be using its client’s money in buying, breeding Axies, and playing the Axie Infinity game.” It also goes by Pogi Breeds Int’l or CoPartners Pogibreeds, said to be led by Gino Mendoza or Nigo Tekashii.

Pogi Breeds’ “co-partnership program” lets investors put in P5,000 up to P250,000, promising profits of P100 to P25,000 daily or a daily profit of 2% or 10% or weekly earnings for 45 days, among other offers such as its contract plan income.

“Pogi Breeds assures its co-partners that the capital will be returned after 59 days or at the end of the contract,” the SEC said, adding that Pogi Breeds’ clients may request for their profit and cash out on Mondays and Thursdays.

The SEC also reminded the public that the play-to-earn game Axie Infinity and its developer Sky Mavis are not registered nor are licensed to do business in the Philippines. — Keren Concepcion G. Valmonte

Maynilad customers’ bills set to go down in fourth quarter

October 4, 2021 | 12:07 am

CUSTOMERS of west zone water concessionaire Maynilad Water Services, Inc. will see a reduction in their water bills for the fourth quarter due to rate adjustments.

In a notice, the Metropolitan Waterworks and Sewerage System (MWSS) said Board Resolution No. 2021-098-RO granted Maynilad a foreign currency differential adjustment (FCDA) of -0.55% of its average basic charge of P36.24 per cubic meter (/cu.m.), equivalent to an average refund of 20 centavos/cu.m.

The said board resolution was recommended by the MWSS Regulatory Office.

“This adjustment shall be effective 15 days after publication, or on Oct. 18, 2021,” the notice said.

The change in FCDA will result in a reduction of 18 centavos, 69 centavos, and P1.40 in the monthly water bills of residential customers using 10 cu.m., 20 cu.m., and 30 cu.m., respectively.

Meanwhile, Manila Water Co., Inc. Corporate Communications Head Dittie Galang said in a mobile phone message that the east zone water concessionaire had yet to receive the board resolution detailing its own approved FCDA for the fourth quarter.

FCDA is a quarterly reviewed tariff mechanism that allows water concessionaires to regain losses or return gains as a result of the movement in foreign exchange rates. The water providers pay foreign currency-denominated concession fees to MWSS, as well as loans that are used to fund projects to expand and improve water and sewerage services.

However, the revised concession agreements signed earlier in the year by Manila Water and Maynilad with the government no longer allow the implementation of the FCDA and the recovery of corporate income taxes from customers.

Consumers will still have to wait as Manila Water said in a recent stock exchange disclosure that the effectivity of its revised concession agreement had been moved to “no later than Nov. 18, 2021” after it was originally scheduled to take effect on Sept. 30.

The water provider said the move was meant to harmonize the effectivity date of its revised agreement with that of Maynilad, which was also given a deadline of Nov. 18.

Manila Water provides water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, portions of Quezon City and Manila, and Rizal province.

Meanwhile, Maynilad supplies water to customers in Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati, and Quezon City, as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta, and Rosario.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Solar Philippines ventures into developing ‘energy zone’ areas

October 4, 2021 | 12:06 am

SOLAR Philippines has formed a new business called Solar Energy Zones, Inc. (SEZ) which seeks to develop areas conducive to hosting solar facilities for other power companies.

In an e-mailed statement over the weekend, the renewable energy (RE) firm said SEZ is in the process of finalizing agreements covering 10,000 hectares to develop solar energy zones, which will be mostly located near its existing power projects in Batangas, Tarlac, and Nueva Ecija.

SEZ will be separate from the group’s power plant business. It aims to address the scarcity of new sites for solar technologies amid increasing demand.

“Our aim is no longer to compete with the country’s power companies, but to enable them to build projects, to ensure that solar soon becomes the largest source of new energy in the Philippines,” said Solar Philippines Founder Leandro L. Leviste.

“Our solar energy zones will make it easy for any of these power companies that decide to build solar to locate in these zones and start construction that same year,” he added.

Solar Philippines said the solar energy zones are inspired by India’s solar parks where companies co-locate solar projects in sites with common facilities that benefit from economies of scale. This arrangement is said to help India lower the renewable energy technology’s barriers to entry.

In the coming months, Solar Philippines is set to announce projects from power firms which will be built in the said zones over the next five years. It claimed that the capacity of these will increase the share of solar in the country’s power generation mix.

Previously, the Energy department announced Solar Philippines Retail Electricity, Inc., a subsidiary of Solar Philippines, as the 14^th participant of the government’s green energy option program (GEOP).

GEOP allows consumers using at least 100 kilowatts of power to source RE from an accredited retail electricity supplier. — Angelica Y. Yang

Paris Fashion Week

October 4, 2021 | 12:05 am

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Balmain designer’s anniversary, Hermes in a hangar, YSL goes to Eiffel Tower, Dior chooses color

PARIS — French fashion house Balmain celebrated the 10^th anniversary of creative director Olivier Rousteing’s tenure with a catwalk show featuring a host of celebrity models including Naomi Campbell, former French First Lady Carla Bruni, Milla Jovovich and Natalia Vodianova.

Models strutted down the stage of a packed music hall on the Seine River in deconstructed garments slit to show patches of bare skin, draped with chains and layered with bold-shouldered jackets or trench coats that swept the floor.

At the end of the show, the designer took his bow before the cheering crowd, flanked by over a dozen models wearing fanciful dresses coated in sequins.

The label hosted thousands of fans at the hall for a two-day festival that included performances from Jesse Jo Stark, Doja Cat and Franz Ferdinand.

The French capital is hosting the final stretch of a month of global industry events, which have marked the return of splashy launch parties and celebrity-packed runway shows to New York, London and Milan.

Most luxury houses put their in-person shows — mainstays of the annual fashion calendar — on pause during the peak of the COVID-19 pandemic.

With infection rates slowing and restrictions easing in Europe, dozens of labels have been holding in-person fashion shows throughout the fashion week, which runs through Oct. 5.

Showgoers at the Balmain festival could buy food and drinks as well as branded merchandise including sneakers priced at 850 euros ($986) and bags of hair cosmetics.

HERMES
French luxury group Hermes International (HRMS.PA) shuttled the fashion press to an airport on the outskirts of Paris for its spring ready-to-wear catwalk show, sending fitted leather crop tops, silky dresses and relaxed trousers down a circular catwalk set up in a hangar.

Robot cameras whizzed around the runway and dropped from the ceiling, filming the models as they marched past the audience seated on a platform at the center of the space.

Hermes women’s ready-to-wear creative director Nadege Vanhee-Cybulki added modern touches to her feminine silhouettes, with paper-bag waists on long skirts and trousers.

In a nod to the house’s tradition as a saddlery maker, tops and jackets were embellished with discrete leather buckles and studs, while yellow jackets in leather brightened the muted palette of neutral colors.

For the finale, the bronze-hued panels serving as a backdrop rolled to the side, offering an open view on the runway of the Bourget airport, a hub for private jets.

The models lined up and were facing the audience when an airplane landed.

YSL
French fashion house Yves Saint Laurent returned to the runway for an in-person fashion show under the Eiffel Tower on Tuesday, sending models down a catwalk after dusk with the glittering monument as a backdrop.

For the first show of the Kering-owned label on its home turf in over a year and a half, Saint Laurent creative director Anthony Vaccarello drew up a lineup of skin tight bodysuits and sharply tailored eveningwear, bringing extra glamor to Paris Fashion Week.

Bare-backed models with chunky, gold bracelets strode on spiky-heeled shoes in front of a wall of strobe lights, which erupted into a waterfall for the finale, whipping up spray and wind that sent guests in the front row ducking for protection.

At the outset of the coronavirus pandemic last year, the brand exited the official calendar of Paris fashion shows and set off on its own schedule, taking its audience to remote settings through the screen, filming models on steep sand dunes in one instance, and in a barren Arctic setting with looming icebergs for another.

DIOR
Christian Dior showcased a burst of colorful 1960s- and 1970s-flavored mini dresses as crowds returned to its hometown show at the Paris fashion week.

Guests showing health passes on their mobile phones had their temperatures checked and were waved in by guards at the marquee sited in the Tuileries Gardens where onlookers gathered to watch the stream of arrivals, which included K-pop star Jisoo.

“During the pandemic crisis, we did a lot of film video. I think it’s not the same, I think it’s completely different because fashion is something that you do on a stage,” Maria Grazia Chiuri, womenswear designer for the LVMH-owned label, said in an interview.

The designer drew on the house’s collections under the creative leadership of Marc Bohan, who was known for modernizing styles by loosening silhouettes in the 1960s and 1970s. Ms. Chiuri swapped Dior’s signature cinched Bar jackets for short, boxy cuts, rounding the shoulders and pairing them with miniskirts and bermuda shorts. She wove in technical fabrics like scuba material, which added a sporty flair to the lineup of color-blocked looks matching tailored coats with dresses.

“I bring this reference in the silhouette, in the bold color and also it’s very graphic,” said Ms. Chiuri.

The designer retooled go-go boots and low-heeled Mary Janes from the era, offering them in hot pink and bright orange, with laces and white, rubber soles.

Patterns included neon leopard prints and pastel camouflage as well as animal images that were blown up and applied with embroidery techniques. Logos were stamped on the backs of silky boxing uniforms in emerald green and electric blue.

Models in bouncing pony-tails circled round a runway set resembling a board game, decorated with artwork from Rome-based artist Anna Paparatti that broadcast messages infused with irony, like “The game of nonsense.”

“The essence of fashion is also a game, people use clothes to perform in, to describe themselves, to be fun,” said Ms. Chiuri. — Reuters

3M Philippines expands hiring

October 4, 2021 | 12:05 am

3M Philippines plans to hire a hundred more employees by the end of the year as the global company expands its service center in the country, the local unit’s top official said.

The company has 750 employees in its shared service center and another 150 in its sales and marketing arm, 3M Philippines Country Leader Reggie C. Pulumbarit said.

“By yearend, we do expect that to breach 1,000,” he said in a virtual interview on Thursday.

Most of the additional employees will be in the global service center, which handles internal finance, human resources, and information technology requirements for the international firm.

“We’ve managed to grow 30% in headcount over the last one and a half years. We did invite 200 plus [employees] so far to join the company,” he said.

Part of it is due to the availability of talent in the Philippines and the company’s aim of scaling up certain services to improve its business strategy, he added.

Globally, 3M Company sales went up 24.7% year on year to $8.9 billion in the second quarter after it declined 12.2% in the same three-month period in 2020 amid the global economic slowdown, according to its earnings reports.

Recent growth is largely driven by the resumption of manufacturing activity since the start of the pandemic.

“We do foresee that growth will continue over the coming period,” Mr. Pulumbarit said.

The local unit will have discussions with employees on hybrid remote and on-site work measures. As a result, Mr. Pulumbarit noted that the company is assessing “transforming” its office rather than reducing or expanding office workspaces while the headcount grows. — Jenina P. Ibañez