Home Blog Page 7053

Shares decline on concerns over virus variant

Philippine Stock Exchange index

Philippine shares declined on Friday after the country’s Health department reported more cases of a more transmissible coronavirus disease 2019 (COVID-19) variant and as the country released updated quarantine classifications.

The Philippine Stock Exchange index (PSEi) declined by 34.1 points or 0.5% on Friday to close at 6,693.83, while the broader all shares index went down by 45.08 points or 1.07% to finish at 4,137.94.

“Philippine shares slumped as many watched vigilantly the number of COVID cases from the new Delta variant strain,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Friday, the Health department reported 16 new COVID-19 cases of the more transmissible Delta variant.

Eleven of the new Delta COVID-19 cases were detected in Mindanao, Metro Manila, Central Luzon, and the Visayas. Meanwhile, five are from Filipinos who returned from Qatar, the United Arab Emirates, and the United Kingdom.

“The market closed lower following the government’s announcement of the quarantine measures to be implemented in the country until the end of the month,” Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a separate Viber message.

Metro Manila was placed under the general community quarantine (GCQ) classification until the end of the month, along with Bulacan, Cavite, and Rizal. Meanwhile, Laguna remains under GCQ with heightened restrictions.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said investors are turning cautious despite the easing of some restrictions in Metro Manila.

“The easing of restrictions, which was cheered by investors not long ago, may be having the opposite effect on the market right now due to fears of a more deadly

surge in cases,” Mr. Mangun said in an e-mail.

“Investors are downsizing positions until more of the population has immunity,” he added.

All sectoral indices closed in the red on Friday except for services, which inched up by 0.4 point or 0.02% to 1,585.15.

Meanwhile, mining and oil lost 231.54 points or 2.34% to 9,650.11; holding firms shed 110.76 points or 1.63% to 6,651.3; industrials went down by 116.52 points or 1.22% to end at 9,393.85; financials declined by 1.34 points or 0.09% to 1,453.75; and property inched down by 1.97 points or 0.06% to 3,200.36.

Value turnover surged to P7.59 billion with 2.4 billion shares switching hands on Friday, from the P4.89 billion with 982.45 million issues switched hands the previous day.

Decliners outnumbered advancers, 164 versus 48, while 34 names closed unchanged.

Net foreign selling increased to P939.35 million on Friday from the P551.11 million on Thursday.

Timson Securities’ Mr. Pangan expects the market to trade between 6,600 to 7,080, while AAA Southeast Equities’ Mr. Mangun expects the index to trade towards its next support at 6,600 after failing to hold at 6,775. — Keren Concepcion G. Valmonte

Filinvest Group and Amazon partner to drive innovation across the Conglomerate

Gotianun-led Filinvest Group–one of the Philippines’ largest conglomerates–has partnered with Amazon and its global industry experts to accelerate digital transformation across the Filinvest ecosystem by seeding Amazon’s “learn and be curious” culture to various teams. As the world recovers from the pandemic and accelerates towards economic growth, Filinvest’s President and CEO Josephine Gotianun-Yap remain confident and steadfast in driving the business forward.

“Today, Filinvest envisions its varied businesses in sectors such as real estate, hospitality, and banking and finance to embrace a digital future. This vision requires everyone in the organization to innovate and find new ways of doing things to cater to the increased expectations of customers.”

The group believes that this is an essential step in ensuring that its people and businesses can empower more and more Filipinos to achieve their dreams in the future. “We are inspired by the Day 1 mentality at Amazon, their customer obsession, as well as their ability to maintain a long-term focus, and pursue bold innovation,” says Xavier Marzan, Managing Director and CEO of F(DEV), Filinvest Group’s digital innovation and venture arm. “The recent global pandemic has forced all organizations to rethink the way that they do things as well as prepare for an accelerated digital future. To us, this means creating more digital-based experiences for customers and being able to launch new digital offerings. What better way to drive all these than through an innovation-led culture, which is at the core of Amazon.”, Marzan added.

As part of the collaboration, Amazon’s AWS unit will work with Filinvest business teams to leverage Amazon’s Working Backwards methodology, with the aim of rapidly building out and deploying customer-centric digital solutions. AWS innovation experts will also connect these business teams to its digital innovation specialists and enterprise strategists to provide cutting-edge industry knowledge from different markets to support the conglomerate’s digital growth initiatives.

Moreover, AWS will support Filinvest’s efforts with its AWS Activate program including providing mentorship to Filinvest business teams, creating sandboxes to speed up experimentation, and providing go-to-market support to the tech startups within the conglomerate’s portfolio. The partnership is part of Filinvest’s broader Filinvent.io program was launched last year by F(DEV) and is geared towards accelerating the development of new digital-based capabilities, products, and businesses across the group’s subsidiaries.

Conor McNamara, Managing Director of AWS ASEAN expressed excitement towards the collaboration, stating that “AWS has been at the forefront of helping organizations of all sizes across the globe with their digital transformation journeys. We’re very excited about our collaboration with Filinvest Group and F(DEV). It presents an opportunity to combine both our deep expertise in technology and digital business models to support the growth objectives of the Filinvest conglomerate across its diverse businesses ranging from real estate, retail, financial services to power, and infrastructure.”

Government entities among the targets of an advanced persistent threat campaign, Kaspersky says

STOCK PHOTO | Image by geralt from Pixabay

An advanced persistent threat (APT) campaign called LuminousMoth, attributed to the Chinese-speaking threat group HoneyMyte, is targeting the Philippines. Kaspersky, a global cybersecurity and digital privacy company, identified 100 victims in Myanmar and 1,400 in the Philippines, some of which are government entities. 

APTs are sophisticated, long-term, and multi-staged attacks, usually carried out by nation-state groups or well-organized criminal enterprises. Like other attackers, APT groups try to steal data, disrupt operations, or destroy infrastructure, according to FireEye, a California-based cybersecurity company. Unlike most cybercriminals, APT attackers pursue their objectives over months or years, adapt to cyber defenses, and frequently retarget the same victim. 

“It is hard to tell the actual reason for going after these countries in particular but, given the nature of the campaign, we assess that the targets in both Myanmar and the Philippines have some strategic significance for the attackers which would require collecting intelligence from entities within them,” Mark Lechtik, senior security researcher from Kaspersky’s Global Research & Analysis Team (GReAT), told BusinessWorld in an e-mail interview. 

“The massive scale of the attack is quite rare. It’s also interesting that we’ve seen far more attacks in the Philippines than in Myanmar,” added Aseel Kayal, a security researcher at GReAT, in a press statement. “This could be due to the use of USB drives as a spreading mechanism, or there could be yet another infection vector that we’re not yet aware of being used in the Philippines.” 

The company declined to comment on the identities of these government targets. 

The initial infection occurs via e-mails that carry out spear-phishing (socially engineered scams that trick users to share information). These e-mails contain a Dropbox link that, once clicked, downloads a RAR archive disguised as a Word document. The downloaded malware then infects other hosts by spreading through removable USB drives (external storage devices that plug into a USB port). It also creates hidden directories within drives, where it then moves all of the victim’s files. 

STAYING SAFE 

To stay safe from APTs like LuminousMoth, Kaspersky experts recommend: 

  • Providing your staff with basic cybersecurity hygiene training, as many targeted attacks start with phishing or other social engineering techniques.
  • Carrying out a cybersecurity audit of your networks and remediate any weaknesses discovered in the perimeter or inside the network.
  • Installing anti-APT and EDR solutions, enabling threat discovery and detection, and investigating and remediating incidents capabilities. That –along with proper endpoint protection, dedicated services –can help against high-profile attacks. 

“Hidden files ought to be scanned and detected by security products, regardless of [them] not being visible to the user,” said Mr. Lechtik. “Some of the IOCs (Indicators of Compromise) we observed were detected as either suspicious or malicious even before we studied the campaign in depth.” 

Mr. Lechtik also advised against plugging in just about any USB device. 

“In some cases, the malware was likely delivered through infected USB devices, in which case users had to actually double click a malicious file to launch the attack,” he added. “In those scenarios, I would advise users, primarily those based in government organizations, to refrain from plugging in just about any USB device, and to be cautious and alert to any unknown files that they see in such a device had it been already in use by them.” 

LUMINOUSMOTH 

LuminousMoth has been conducting cyberespionage attacks against government entities since at least October 2020. While initially focusing their attention on Myanmar, the attackers have since shifted their focus to the Philippines. 

The malware the campaign uses also has two post-exploitation tools. One consists of a signed, fake version of Zoom, while the other steals cookies from the Chrome browser. 

The only reason for going after Chrome, Mr. Lechtik told BusinessWorld, is “either its popularity among users, or any prior knowledge of the attackers that their targets are using it as a browser.” 

Kaspersky attributes LuminousMoth to the HoneyMyte threat group, which it said is primarily interested in gathering geopolitical and economic intelligence in Asia and Africa. 

The Philippines is no stranger to APT campaigns. One, as mentioned by FireEye, is the APT23, which stole political and military information from US and Philippine media and government entities through spear phishing messages. Another cyberespionage group allegedly aligned with Vietnamese government interests, the APT32, targeted Philippine government agencies in 2017 to gather intelligence related to the South China Sea maritime dispute. 


The different kinds of hackers  

There are 11 types of hackers based on their objectives from CSO, a security and risk management research firm. They are: 

1. The bank robber – a hacker who targets financial services institutions for financial gain through tools such as ransomware.

2. The nation-state – a group of hackers who steal data for their sponsors, usually nations, which then use these to infiltrate government institutions and/or companies.

3. The corporate spy – a hacker paid to provide classified information such as contracts and business plans to a rival company.

4. The professional hacking group for hire – a group of hackers with different specialties who develop, buy, or steal malware for a fee; they are motivated by financial gain or intellectual property theft.

5. The rogue gamer – a hacker in the gaming industry who steals his/her competitors’ credit caches, or causes anti-competitive distributed denial-of-service attacks (or attacks which overwhelm websites or services with more traffic than the network can accommodate).

6. The cryptojacker – a hacker who hides on a computer or mobile device and uses the machine’s resources to mine cryptocurrency, a form of online money.

7. The hacktivist – a hacker who utilizes technology to announce a social, ideological, religious, or political message.

8. The botnet master – a hacker who creates bots that are used to infect as many computers as possible, which are then used for various agendas.

9. The adware spammer – a hacker who spams a computer with adware, which bombards a victim with pop-ups, but also gathers personal information and records everything the victim types.

10. The thrill hacker – a hacker who wants to demonstrate what he/she can do and is in it for the thrill.

11. The accidental hacker – a hacker with some technical ability but who never intentionally sets out to hack.

NTF welcomes increase in vaccine confidence

SWS’s Second Quarter 2021 Social Weather Report says 45% of adults say they will get vaccinated vs 32% last May 2021.

Pulse Asia’s Report shows an increase in willingness from 16% in February to 43% in June 2021.

Taskforce T3 has helped promote vaccine confidence through the landmark Ingat Angat Bakuna Lahat vaccination education campaign and provides incentives via Smart Bakuna Benefits.

The National Taskforce Against COVID-19 welcomes the increase in vaccine confidence among Filipino adults in the latest reports by the Social Weather Station and Pulse Asia.

In a national survey conducted by SWS from June 23 to 26, 45% of adults have stated that they will surely/probably get the vaccine, compared to only 32% last May. Furthermore, those who have said they will surely NOT get the vaccine have dropped from 26% to 18%, while those who have said they are uncertain about getting vaccinated have dropped from 35% to 24%.

Pulse Asia, on the other hand, reported that vaccine confidence shot up to 43% in June 2021 from a low 16% in February 2021.

“We are pleased to see that more Filipinos are willing to get vaccinated with a COVID19 vaccine as seen with an increase in willingness from 16% to 43% based on Pulse Asia and from 32% to 45% for SWS. This is very important as we have secured and will continue to get more vaccine supply in the next few months including donations through COVAX and foreign governments,” says NTF Chief Implementer Secretary Carlito Galvez.

Deputy NTF Chief Implementer, Sec. Vince Dizon, on the other hand, said increased vaccine confidence will further drive up the vaccination rates of the country. “Almost 14 million Filipinos have received at least one dose of the COVID -19 vaccine, with vaccinations reaching a high 391,000 per day, and this reflects what the survey shows, that vaccine confidence is on the rise in the Philippines.”

Galvez added that “Close collaboration with the private sector, LGUs, and the national government has been crucial to our national vaccination program and our goal of reaching a happier Christmas for all Filipinos.”The private sector’s role in COVID-19 recovery Taskforce T3 is a private-sector coalition that assists the government in fast-tracking the vaccination rollout in the country. One of its key campaigns is Ingat Angat Bakuna Lahat, a vaccination advocacy campaign to encourage the public to get jabbed.

T3 recently launched a massive vaccine education campaign under the Ingat Angat Bakuna Lahat umbrella program to raise willingness among the public to get jabbed. The program includes video and radio commercials, outdoor advertisements, social media campaigns, vaccine awareness toolkits for companies, and the Smart Bakuna Benefits promo, which provides additional incentives for Filipinos to get themselves vaccinated from over 200 participating restaurant brands.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA

Gov’t plans maiden retail dollar bonds

REUTERS

By Beatrice M. Laforga, Reporter

THE government is planning to raise more funds with its first-ever retail dollar-denominated bond (RDB) offering by mid-August, mainly targeting overseas Filipinos.

National Treasurer Rosalia V. de Leon on Thursday said the Bureau of the Treasury (BTr) will be launching the onshore RDBs to provide a safe investment opportunity for small investors and overseas Filipino workers (OFWs) as these would carry higher rates.

Ms. De Leon said the new bonds would help investors diversify their portfolio and preserve the value of their money from potential foreign exchange risks.

The RDBs will be available at a minimum investment of $300 (P15,000), making it more accessible to retail investors compared with the usual dollar-bond issuances of the government to institutional investors that require at least $200,000 worth of subscription.

The rates and tenor of the bonds will be determined in an auction in mid-August. To make the new debt papers attractive, the coupon will be computed based on prevailing market rates for the tenor, plus a premium since it is a maiden offer.

The government will also assume the withholding tax on interest earned.

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

Investors would be able to purchase these RDBs through selling agent banks using either US dollar or Philippine peso currencies. For the latter, selling agents will be the one converting the peso to dollar to access the bonds, and in converting the interest and principal payments from dollar to peso.

“Whether or not it is attractive to retail investors will depend on the yield; from an access standpoint, it is certainly attractive. Outside of fund vehicles, direct USD-denominated instruments have notoriously high capital requirements/minimum lot sizes,” a trader said via e-mail on Thursday when asked to comment.

The notes can be directly purchased from the physical branches of participating banks, as well as through digital platforms via the BTr’s website, Bonds.PH mobile application, and the Overseas Filipino Bank’s online bank.

“While the RDB is a new product offered during these extraordinary times, we are confident that with the insights and feedback of our fellow kababayans, we will be one step close in further strengthening of inclusion and financial literacy for the ordinary Filipinos,” Ms. De Leon said.

The last time the BTr offered onshore dollar-denominated bonds was in December 2012, when it raised $500 million in 10.5-year bonds from $1.7 billion in total bids, Jose Angelo Abad, senior manager at the Development Bank of the Philippines said during the briefing.

The issuance, however, was only available to institutional investors back then at a coupon of 2.75% per annum. The notes will mature on June 4, 2023.

Similar to the proposed RDB is the peso-denominated retail Treasury bonds (RTBs) that the government offers each year to attract small investors to invest in these safe-haven assets at relatively higher rates.

In March, the BTr raised P463.3 billion in three-year retail bonds to mark its second-biggest RTB sale in history, following the record P516.3 billion sold in five-year bonds last year.

The government aims to raise P3 trillion from local and foreign lenders this year to plug the budget deficit seen to widen to 9.3% of gross domestic product.

It sources 80% of its borrowings from the domestic debt market through Treasury bills, bonds and other loans to minimize foreign exchange risks.

Nat’l government borrows another P540B from BSP

PIXABAY

THE CENTRAL BANK approved another short-term loan worth P540 billion to the National Government to boost its coffers as the pandemic continues.

“We recently extended our arrangement with them — P540 billion, we just renewed our assistance to the government,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said at a briefing on Thursday.

This is the fourth time the National Government has received support from the central bank, which has extended a direct advance of P300 billion in March 2020, P540 billion in October 2020 and another P540 billion in December 2020.

“They paid the P540 billion (last month), now they’re asking for a renewal and the Monetary Board has approved it,” Mr. Diokno said.

Under Republic Act 7653 or The New Central Bank Act, the BSP is allowed to lend 20% of its average revenue to the government, which is equivalent to P540 billion. This was increased to 30% or up to P850 billion by the Republic Act 11494 or the Bayanihan to Recover as One Act which allowed direct provisional advances within two years since the law’s effectivity.

“It’s within the bounds of the BSP’s charter and it’s a convenient way to source funding. The National Government anyway has fully paid its previous obligations to the central bank,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

The fresh funds could also be used for a stimulus measure, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

“With the National Government tapping the BSP for this cash advance, perhaps lawmakers and administrators can find a way to utilize these proceeds to fund the much-needed spending measure with growth momentum in dire need of assistance,” Mr. Mapa said in an e-mail.

Economic managers have ignored calls for another stimulus package. House Bill 9411 or Bayanihan III which seeks to allocate a stimulus package worth P400 billion has been approved by the House of Representatives, but a counterpart measure remains pending at the Senate committee level.

Meanwhile, Mr. Mapa cautioned that having the central bank provide substantial cash support to the National Government may cause risk-off sentiment from investors if they see the move already going beyond what they expected to be a temporary means of support from the BSP.

“For now, its unclear as to how long investors will be forgiving on this issue but one can surmise that once investors begin to feel that such an arrangement is no longer as “transitory” as initially envisaged, we could see an adverse reaction quickly after that,” he said.

Mr. Diokno said the central bank will retain its accommodative policy, and will assess data to avoid a premature withdrawal of support that may hurt recovery.

“When the recovery becomes fully self-sustaining, the BSP will aim to implement a pre-planned strategy for the unwinding a policy stimulus, taking care to ensure the sustainability of recovery while also guarding against any emerging threats to the BSP’s price and financial stability objectives,” he said. — L.W.T.Noble

OceanaGold plans to reopen Didipio mine ‘as soon as possible’

OCEANAGOLD.COM

By Kyle Aristophere T. Atienza and Revin Mikhael D. Ochave, Reporters

OCEANAGOLD CORP. said on Wednesday it plans to restart the Didipio gold and copper mine “as soon as possible,” after the Philippine government renewed its contract for another 25 years.   

This comes nearly two years after the Didipio mine’s operations were stopped due to a dispute between the Canadian-Australian mining firm and the provincial government.

In a statement on its website, OceanaGold said the new financial or technical assistance agreement (FTAA) applies retroactively from June 19, 2019.

“We look forward to commencing restart activities and continuing to work in partnership with our regulators, communities, employees, and all stakeholders to contribute to the Philippines’ post-COVID-19 economic recovery,” Michael Holmes, president and chief executive officer of OceanaGold, was quoted as saying.

While the new FTAA mainly had similar financial terms and conditions from the previous one, the company said there were some changes such as increasing the percentage of gross revenue allocated for community development by 1.5%. 

“The additional 1.5% allocated to community development will take the form of increased contributions to communities in the region and provincial development projects. While the existing fund for Social Development and Management Program will continue to be provided for the host and neighboring communities, 1.0% of the additional 1.5% will be allocated to community development for additional communities and 0.5% to the host provinces of Nueva Vizcaya and Quirino,” OceanaGold said.

Under the new deal, mine operator OceanaGold Philippines, Inc. (OGPI) is required to list at least 10% of its common shares on the Philippine Stock Exchange (PSE) within the next three years.

OGPI is also mandated to transfer its main office to a host province within the next two years in order to generate business taxes for the local government.

Under the FTAA, OGPI is also directed to offer not less than 25% of its annual gold doré production for purchase by the Bangko Sentral ng Pilipinas (BSP).

OceanaGold said its first priority is to rehire and train its workforce in the Philippines.

“The Company plans a staged restart of operations with milling to recommence as soon as possible utilizing stockpiled ore of which the operation has approximately 19 million tons available. The Company aims to achieve full underground production capacity within twelve months,” the company said.

Once fully operational, OceanaGold said the Didipio mine will be able to produce approximately 10,000 gold ounces and 1,000 tons of copper per month.

Palace Spokesperson Herminio “Harry” L. Roque, Jr. on Wednesday announced the executive order on the renewal of OceanaGold’s FTAA has already been signed. A copy has yet to be released.

Wilfredo G. Moncano, Mines and Geosciences Bureau (MGB) director, said in a mobile phone message to BusinessWorld the resumption of Didipio’s mine operations will give direct employment to about 1,800 people and indirect employment for another 2,000 to 3,000 employees.

“An increase in the contribution of (the) mining (industry) to the country’s gross domestic product (GDP) is also expected but cannot be estimated at the moment. Other small businesses and local suppliers of food, transport, repairs, housing, and other services will also gain from the operation,” he said.

This will also boost the country’s gold and copper concentrate production for exports.

“Portion of the gold will also be sold in the Central Bank that will increase the country’s gross international reserves,” Mr. Moncano added.

Calixto V. Chikiamco, Foundation for Economic Freedom (FEF) president, said the restart of OceanaGold’s mining operations will have an immediate boost to the economy, as there is a strong demand for minerals due to the shift to electric cars and consumer demand for electronic devices.

“The renewal of OceanaGold’s FTAA will have an immediate impact. Mining is an industry of the future and can contribute to our economy in the same way that business process outsourcing services are. The Philippines has enormous potential in mining — being one of the five most mineralized countries in the world,” Mr. Chikiamco said in a mobile phone message.

Chamber of Mines of the Philippines (COMP) Chairman Gerard H. Brimo noted OceanaGold’s Didipio mine is known for its responsible mining practices.

“The resumption of OceanaGold’s operations will undoubtedly help increase the country’s exports and the industry’s contribution to our GDP and bring back the hundreds of jobs that are most needed now as our economy struggles to recover from this pandemic,” he said.

However, the resumption of operations at the Dipidio mine “will do more damage than recovery for our pandemic-affected economy because it immediately affects jobs and livelihood in local agriculture and nature-based economies,” said Kalikasan People’s Network for the Environment national coordinator Leon A. Dulce.

“We are sacrificing rural livelihoods for mining revenue that benefits foreign markets, with previous average of exported mineral value at 93.4%, rather than our domestic economy,” he told BusinessWorld in a Facebook Messenger chat, adding the government has failed to monitor the environmental impact of these mining operations.

Mr. Dulce said the mining sector’s annual average share in total employment from 2001 to 2020 was only 0.49%. The sector’s average annual share in the country’s growth output was only 1.02%, he said.

After OceanaGold’s first FTAA expired in June 2019, Nueva Vizcaya Governor Carlos M. Padilla released an order directing local authorities to stop the firm’s mining operations, which at that time continued under a temporary license. A blockade by residents and various groups eventually led to OceanaGold halting its operations.

Red tape issues cast cloud over Japanese investments in PHL

PHILIPPINE STAR/ MICHAEL VARCAS

AROUND $3-billion worth of Japanese investments and expansion projects are facing bottlenecks caused by ongoing travel restrictions and red tape in issuance of permits, the Department of Trade and Industry (DTI) said.

In a recent business dialogue with the DTI, Japan-based electronics and medical devices manufacturing firms in the Philippines said that they are exploring expansion and diversification projects but are constrained by problems such as securing visas for their executives and engineers.

They also expressed concerns about the slow processing of permits and licenses from regulatory agencies, as well as value-added and additional taxes imposed by local government units. Access to coronavirus disease 2019 (COVID-19) vaccines is also a concern.

“They inquired if foreign investors with significant investment and expansion plans could be assisted by way of green or express lanes similarly provided by host governments in ASEAN for foreign investors struggling to remain competitive under the challenges of a COVID-19 and post-COVID-19 environment,” DTI said in a press release on Thursday.

“As critical members of the global supply chain, locators are constantly reeling from the pressure of pandemic-related restrictions that have negatively impacted their bottom-line, production, and delivery schedules.”

Trade Secretary Ramon M. Lopez in response said that these issues are being discussed among various government agencies.

“Japan has been a strong and important trading partner and investment source of the Philippines. The country is an ideal host for Japanese manufacturing and R&D activities in electronics, printers, and medical devices,” he said.

Ten Japanese locators participated in the discussions, including printer firms Brother Industries, Canon, Inc., and Seiko Epson Corp. Medical device companies Terumo Corp. and JMS Co. Ltd. also participated, as well as electronics firms ROHM Co., Ltd., NIDEC Corp., MinebeaMitsumi, Inc., IBIDEN Co Ltd., and Murata Manufacturing Co., Ltd.

Collectively, these companies represent $2.5 billion in investments, $6.9 billion in annual exports, and 83,000 jobs in the Philippines.

Investors also said that they are interested in transitioning to renewable energy sources, in line with United Nations sustainable development goals.

“One locator that employs over 23,000 Filipinos across its three plants shared that a major customer is requiring its suppliers to switch to full renewable energy sources by 2023 and requested assistance to comply with this requirement,” DTI said.

Department of Energy Renewable Energy Management Bureau Director Mylene C. Capongcol said that the Philippines is working on increasing its share of renewable energy to 35% by 2030 and more than half of the country’s power mix by 2040.

Japan was the Philippines’ top export market at $10 billion in 2020 and was its second-biggest import supplier at $8.6 billion that same year.

Japan was also the Philippines’ biggest source of foreign investment commitments in the first quarter of 2021, accounting for more than half of approved foreign investments in that period. — Jenina P. Ibañez

7-Eleven set for Calabarzon expansion

CONVENIENCE store operator Philippine Seven Corp. is setting its eyes to open new stores outside Metro Manila, moving its focus in residential areas in the Calabarzon region and other places beyond the National Capital Region for its expansions this year.

“We will be expanding again in pretty different areas than we were originally targeting,” Philippine Seven President and Chief Executive Officer Jose Victor P. Paterno said in a media briefing on Thursday.

“We are underweighting CBDs (central business districts) and overweighting residential [areas],” he said, adding that they are looking at areas beyond Metro Manila.

Philippine Seven, the country’s exclusive licensor of 7-Eleven, said its stores in the business districts were the worst-performing as customers no longer report to their offices as much.

Philippine Seven opened 174 stores last year, lower than its target of 350. It has opened around 75 stores year to date, launching its 3,000th store this week in Meycauayan, Bulacan.

It aims to have around 3,200 stores by yearend. The company said it earmarked at least P1 billion in capital expenditures this year to open at least 200 new stores.

Meanwhile, it is targeting to have 1,200 recycling ATMs in 7-Eleven stores before the end of the year. It currently has over 400 ATMs in Metro Manila and Cavite, Philippine Seven said.

“At some point, we’ll jump to the Visayas and Mindanao,” Mr. Paterno said.

A hiccup the operator is experiencing with its ATM-rollout is the cash handling.

“Ideally, you would have as many deposits as withdrawals and this would allow you to go into areas that nobody else could penetrate because they would typically have to deliver by armor truck, but as we rollout, it’s conservative to expand that concentrically,” Mr. Paterno said.

Shares of Philippine Seven at the local bourse closed unchanged on Thursday at P97.50 apiece. — Keren Concepcion G. Valmonte

Keepers seeks nod on P7.5-B follow-on offering

FREEPIK

Former shell firm Da Vinci Capital aims to expand liquor distribution operations

THE Keepers Holdings, Inc. said it had filed a registration statement with the Securities and Exchange Commission for its follow-on offering to raise as much as P7.5 billion.

“This is like an IPO (initial public offering) because we are actually introducing a new business, one that is rife with huge potential. Keepers is poised to become the only pure play, imported spirits distribution listed company in the Philippines,” Keepers Holdings President Jose Paulino L. Santamarina said in a statement on Thursday.

Keepers Holdings was previously a shell company under the corporate name Da Vinci Capital Holdings, Inc.

Keepers Holdings or Da Vinci Capital will be in the liquor distribution business after acquiring Montosco, Inc., Meritus Prime Distributions, Inc., and Premier Wine and Spirits, Inc. via a share-swap transaction with Lucio L. Co’s other company, Cosco Capital, Inc.

“The Keepers Holdings, Inc. is now the largest distributor of imported spirits in the Philippines holding 74% volume market share,” Mr. Santamarina said.

Cosco Capital will get 11.25 billion of its common shares of stock.

Since both Cosco Capital and Da Vinci Capital are under the control of Mr. Co, its public ownership fell below the minimum requirement. This led to a trading suspension of Da Vinci Capital’s shares, which were last traded at the stock market on July 7 at P2.95 each.

Up to three billion common shares will be offered in Keepers Holding’s follow-on offering tentatively slated for September this year. These will be sold for around P2 to P2.50 per share and listed on the main board of the Philippine Stock Exchange.

Keepers Holdings said it aims to raise funds to expand its liquor, wine, and specialty beverage distribution operations via a “multi-path expansion through horizontal and vertical integration, alternative distribution channels and new geographic territories.”

It also aims to use proceeds for its working capital and general corporate purposes.

The company assigned China Bank Capital Corp., PNB Capital and Investment Corp., and SB Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction. — Keren Concepcion G. Valmonte

Shakey’s on track to launch 30 stores after last year’s pause

FACEBOOK.COM/SHAKEYSPH

LISTED Shakey’s Pizza Asia Ventures, Inc. (SPAVI) on Thursday said it is on track to meet its targeted expansions, after halting its plans when the health crisis blew up last year.

“We are targeting to open 30 new stores for the year — 15 Shakey’s and 15 Peri-Peri — and are on track to meet this target as we have already opened 11 net new stores as at end May 2021,” Vicente L. Gregorio, president and chief executive officer of SPAVI, said during the company’s virtual stockholders meeting on Thursday.

“We pivoted our store expansion plan to maximize existing assets, designing our new stores to be multi-branded and in smaller store formats,” he added.

SPAVI also opened “ghost” kitchens, which were said to be cost-efficient, to cater to its “31 minutes — If it’s Late, It’s Free” program. Its standalone store formats were also used for its “Park & Order” service.

It also continued to “beef up” its menu with plant-based UnMeat offerings via “chicken” nuggets and burgers. It plans to launch more of these products in the future.

“The SPAVI team will remain very vigilant and continue to ensure that we manage fiscal resources we’ve been very disciplined in that area and we will continue to be quick and agile to take advantage of the opportunities and adapt,” Mr. Gregorio said.

The company began serving Singapore brand R&B Milk Tea, which is now available in 133 pizza stores and Peri-Peri outlets.

It recently inked a P1.26-billion deal with JE Holdings, Inc., which gives the Gokongwei-led firm a nine percent stake or 152,439,025 common shares in SPAVI. It said the deal is a “strong vote of confidence” for its business, its team, and its brands.

On Thursday, SPAVI shares at the stock exchange went up by 0.25% or two centavos to close at eight pesos each. — Keren Concepcion G. Valmonte

The Metropolitan Museum of Manila moving to BGC

The Metropolitan Museum of Manila — METMUSEUM.PH

AFTER 45 years in the Bangko Sentral ng Pilipinas (BSP) compound in Malate, Manila, the Metropolitan Museum of Manila will be moving to a new location in Bonifacio Global City (BGC), Taguig, the two organizations announced in a joint statement on Thursday.

“We are ushering in a new chapter for our institution as we prepare to reopen in Bonifacio Global City (BGC),” Joselito D.Y. Campos, Chairman of the Board of Trustees of the museum, said in a separate statement from the museum.

The new Metropolitan Museum Manila (Met) is scheduled to open by the last quarter of 2021. It will be housed in a new 3,000-square meter space spread over three levels designed by the Filipino-born, Brooklyn-based architect Carlos Arnaiz, said the museum statement.

According to the joint statement, “the BSP will be undertaking redevelopment plans within the BSP complex including the renovation of the building previously occupied by the Met.”

“Decades of partnership and friendship have allowed both institutions to leverage on the expertise and vast collections of the BSP and the Met, thus giving the public access to works of some of the country’s most notable artists.”

“We are excited to be part of the vibrant and emerging cultural hub that BGC has become, and our new location will certainly widen our audience reach,” Tina Colayco, the museum’s president, was quoted as saying in the museum’s announcement. “With the new space, we are reinforcing our continuing commitment to contemporary art. In the interim, we have taken all our activities online, with a robust calendar of webinars, workshops, and events accessible in the virtual arena.”

“The Museum is immensely grateful and appreciative of the support that our sponsors, collectors, institutions, and partners have graciously given us. We also thank the Bangko Sentral ng Pilipinas, headed by Governor Benjamin Diokno, for its partnership of 45 years with the Metropolitan Museum of Manila,” Mr. Campos said.

The Met first opened its doors in 1975 with an exhibit showcasing 105 artworks in various media from the Brooklyn Museum and other American museums and galleries. The building was designed by Gabriel Formoso. —  MAPS