Home Blog Page 810

AirAsia PHL may miss 2024 goal of 8 million passengers

GUESTS IN QUEUE at the AirAsia check-in counters at NAIA Terminal 2. — NEWSROOM.AIRASIA.COM

PHILIPPINES AIRASIA, Inc. (AirAsia Philippines) is projecting to end the year with 7.2 million passengers flown, a 9.09% increase from last year’s 6.6 million, but falling short of its eight million target for 2024.

“As of November, the low-cost carrier already reached seven million passengers,” said Ricardo P. Isla, chief executive officer of AirAsia Philippines.

He said the company’s target of over seven million by yearend is conservative, as it has already reported 528,031 bookings for Christmas and New Year’s Day, with 367,455 for domestic travel and 160,576 for international destinations.

At the same time, the airline said some routes are under assessment for possible launch.

The low-cost carrier will be more aggressive in 2025, Mr. Isla said, adding that it is considering expanding its hub in Manila.

“Coming from 2024, Manila is our most important hub. And when you say the most important hub, the second thing to discuss is the optimization of Manila and our 16 aircraft. [We will] concentrate on that,” he said.

He said the company’s strategy is to focus on strong routes, including leisure destinations like Boracay, Puerto Princesa, and Bohol, as well as non-leisure domestic routes such as Negros, Bacolod, and Iloilo.

“If we are building our core competencies on these domestic routes, we will also keep our international presence,” Mr. Isla said, noting that it is most strong in North Asia, such as Japan, but is seeing slow pick-up in China routes.

AirAsia Philippines said it is planning to explore new territories or points of destinations, but it will depend on the strengthening of its Manila hub, Mr. Isla said.

For 2025, the company aims to retain its fleet of 16 aircraft, he said.

However, AirAsia Philippines Communications and Public Affairs Head Steve F. Dailisan said the airline’s fleet size would depend on the result of the integration of its parent company, Capital A Bhd., which trades as AirAsia, with the group’s aviation business to AirAsia X.

“Whatever exciting developments will come out of the integration since we are part of Capital A or AirAsia Group in the Philippines. We will also benefit from the developments,” Mr. Dailisan said.

Malaysian-based airline group Capital A Berhad, operator of budget carrier AirAsia Philippines, is transferring its aviation business to AirAsia X Berhad to improve its aviation operations and strengthen financial performance. — Ashley Erika O. Jose

Philippine banks fail to meet lending quota for small businesses

BW FILE PHOTO

PHILIPPINE BANKS continued to fall short of the mandated lending quota for small businesses at end-September, data from the central bank showed.

Loans extended by the banking industry to micro, small and medium enterprises (MSME) reached P500.809 billion as of end-September, accounting for only 4.55% of their total loan portfolio of P10.99 trillion, according to the latest Bangko Sentral ng Pilipinas (BSP) data, well below the 10% requirement under the Magna Carta for MSMEs.

Under the law, 8% of these loans must go to micro and small enterprises, while 2% must go to medium-sized businesses.

At end-June, banks’ credit to MSMEs stood at just 4.52% of their loan book.

Broken down, banks’ loans to micro and small enterprises stood at P204.886 billion at end-September, equivalent to just 1.86% of their total loan portfolio and well below the 8% quota. Still, this was up from the 1.82% share seen as of June.

Meanwhile, credit disbursed to medium enterprises reached P295.923 billion in the period, accounting for 2.69% of their loan book and exceeding the 2% quota. This inched down from the 2.7% ratio at end-June.

By type of bank, universal and commercial banks lent P127.083 billion to micro and small enterprises at end-September, or 1.385% of their total loans worth P10.06 trillion

Big banks’ loans to medium enterprises stood at P240.7 billion, or 2.39% of their total lending.

Meanwhile, thrift banks extended loans worth P36.69 billion to micro and small enterprises or 3.79% of their P681.28-billion portfolio, while credit to medium enterprises hit P35.18 billion or 5.22% of the total.

On the other hand, only rural and cooperative banks met the overall MSME lending requirement in the period as they extended loans worth P40.7 billion to micro and small enterprises at end-September, equivalent to 17.38% of their P225.79-billion loan book.

They also disbursed loans worth P20 billion to medium-sized enterprises or 8.86% of the total.

Lastly, loans granted by digital banks to the micro and small enterprise sector stood at P410 million in the first nine months, accounting for only 2.08% of their loan portfolio of P19.72 billion, while they lent P40 million to medium enterprises or just 0.22% of the total. 

For years, most banks have opted to incur penalties for noncompliance with the MSME lending quota instead of taking on the risks associated with lending to small businesses.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said most banks prefer to pay penalties as they want credit guarantees to reduce the risk of lending to the MSME sector.

There is a need for “better credit information to address asymmetric information on MSME borrowers,” Mr. Ricafort said, which could be addressed by having a central credit information bureau.

Enrico P. Villanueva, a senior lecturer at the University of the Philippines Los Baños Economics Department, added that financial technology companies and nonbank entities may serve MSMEs’ funding needs better than traditional banks.

“Some banks are making serious efforts to reach out to MSMEs through their main bank or their subsidiaries. Many banks may have willingness but no expertise to handle this market segment,” Mr. Villanueva said. — Aaron Michael C. Sy

Musical film puts a new twist on the classic Himala

THIS YEAR, Isang Himala, an entry to the Metro Manila Film Festival (MMFF), aims to breathe new life into the beloved Filipino story about miracles — in the form of a musical. While based on the 1982 film Himala directed by National Artist Ishmael Bernal and penned by National Artist Ricky Lee, but is actually a direct adaptation of the 2003 musical of the same name.

Musicals are able to convey characters’ inner emotions, which makes this version of Himala a special one since it “combines that musical aspect with the visual medium,” said director Pepe Diokno at a press conference in Quezon City.

Mr. Diokno, who won Best Director at the MMFF last year for the historical film Gomburza, added that he “tries not to pay attention” to the pressure of being expected to repeat that feat. “My goal is not to get any awards, but to give the audiences a new experience,” he said.

Isang Himala follows the young orphan Elsa, who gains the power to heal the sick in her small village of Bario Cupang. In the midst of a drought and famine, people flock to the newly minted symbol of hope to witness her miracles, revealing a society consumed by faith, greed, and deceit.

“I had seen the film as a film student and it really left an indelible mark on me,” Mr. Diokno told the press, “But when I watched the staging [of the musical] in 2018, it was the most powerful experience I’ve ever had in a theater. It made me laugh; it made me cry; it gave me goosebumps.”

The staging he saw was by 9 Works Theatrical and The Sandbox Collective, and many of its cast members are reprising their roles in the upcoming film.

“I was thinking about the play long after I had seen it. That’s the same experience that I’d like to share with the audience with this film,” he said.

UNDERDOG FILM
As the writer of the original film, Ricky Lee told BusinessWorld that it was also “an underdog” when it was released in 1982.

Masaya akong makakita ng kwento na nanganganak sa iba’t-ibang medium dahil nagiging mas rich ito (I’m happy to see a story that is reborn in different mediums because it becomes much richer),” he said. “It shows that Himala is an experience worth re-experiencing.”

He added that people can look forward to the musical film being more “expressionistic,” compared to the original film’s “minimalistic” approach.

Actress Aicelle Santos, who is stepping into the iconic role of miracle worker Elsa, said that she hopes Filipinos will come and watch. “We have something new to offer, being the only musical among the 10 [MMFF] entries,” she said.

Like the film’s director, she expressed an aversion to pressure, especially if audience members come into the movie theater with National Artist Nora Aunor’s portrayal of Elsa in the 1982 film in their minds. “I like to think of it as excitement instead of pressure,” Ms. Santos told BusinessWorld.

She also remembered how Ms. Aunor praised and embraced her after seeing the 2018 musical staging. “That was a memorable moment for me,” she said.

Other members of the cast are Bituin Escalante as Elsa’s mother Aling Saling, Kakki Teodoro as Nimia, Neomi Gonzales as Chayong, and David Ezra as Orly. The musical direction and songs are by Vincent A. De Jesus.

Ms. Escalante said at the press conference that Filipinos are “an intelligent audience” that can be receptive to the musical’s layers of family, community, and faith. “We should never underestimate the audiences. Box office is not our basis for happiness or joy; it’s a part of it, of course, but this is about having an audience to reach with this story,” she said.

“We do have an intelligent audience, so let’s keep making great art.” — Brontë H. Lacsamana

The US health insurance industry is broken. Don’t let it break us

FREEPIK

WHEN news broke that UnitedHealth Group executive Brian Thompson had been fatally shot on a street in Midtown Manhattan, the public responded with the kind of vitriol usually reserved for our most polarizing politicians.

I found myself wincing at the tone of the messages rolling in on my various group threads and social media sites — including from people whose opinions I usually deeply respect. My compass on these things is always how I’d want my daughter to hear me react in such a moment. Would I want her to think it’s okay to dance on the grave of someone whose sons are now fatherless?

I unequivocally do not. Nor would I want her to get the idea that this craven act was justified.

And yet, we can’t ignore the ferocity of the response — or the fact that no one’s gut told them to check it. It lays bare a ground truth: If there’s anything our fractured country seems to agree on, it’s that the healthcare system is tragically broken, and the companies profiting from it are morally bankrupt. And it shows that most of us have felt harmed by a system that puts profits before patients.

Thompson became a proxy for the healthcare industry writ large (It does not help that the company he led has repeatedly been shown to be one of the worst offenders when denying claims.)

Nearly everyone has a story of their insurance company denying basic care. Raise your hand if you’ve ever been brought to tears while on a call with your insurance company. Keep it up if your stomach has ever dropped on opening the mailbox to find a bill from your insurer; if you’ve walked up to the pharmacy counter wondering if you can afford your prescription; if you’ve gone into debt because of medical costs; if you’ve watched a family member suffer because they’ve been denied treatment.

I suspect a lot of hands are up.

Those indignities hit us at our most vulnerable moments: when we are grappling with a life-changing diagnosis, when our children are struggling with depression, or when we need a medication that we’ve always relied on — one that has made it possible to be a functional member of society. Those moments stick with you for life.

My compass still points me to civility because I fundamentally don’t believe in celebrating personal tragedy. And I certainly don’t believe in condoning violence. I don’t like the idea of living in a world where a killer (whose motives, by the way, still are unknown) is elevated to the level of folk hero.

Yet I desperately want this rage to be channeled into something productive.

My worry is that it will not and, by design, cannot under the US’ current healthcare infrastructure. That instead of prompting healthcare companies to introspection about their most egregious, profit-driven behaviors, they will simply go quiet and hope we move on.

We’re hearing about how companies had beefed up security even before this event. They have since removed executives’ photos from their websites and canceled in-person investor events. Those are rational changes to protect their employees. We have yet to hear whether they will make any changes to protect their customers’ access to care.

Instead of sparking an honest reckoning about the structural fixes needed to arrive at a more functional and humane system, we are being primed for an administration whose approach to healthcare will make it so much worse. President-elect Donald Trump’s administration seems keen to find cuts in ways that will directly harm Americans’ access to care, whether by making insurance less affordable or through deep cuts to Medicaid. People won’t have insurance companies to be mad at because millions more won’t have insurance at all.

I also worry that the rage is causing more people to gravitate toward ideas that ultimately are dangerous. There seems to be a growing attitude that real change can only come by burning it all down. Or that we need to be open to extreme approaches to fixing our system — even if they involve sacrificing bedrock tenets of public health. One needs only look at the positive caveats many suddenly seem to be finding in the incoming administration’s picks to lead the nation’s top public health agencies as a guide.

I hope my cynicism is off base. But I fear there are dark days ahead for so many of us. And especially for the two kids who just lost their dad.

BLOOMBERG OPINION

PSE approves SFA Semicon Philippines voluntary delisting

SFASEMICON.COM.PH

THE Philippine Stock Exchange (PSE) on Monday approved the planned voluntary delisting of SFA Semicon Philippines Corp. (SSP).

SSP’s shares will be delisted from the exchange’s official registry on Dec. 12, the PSE said in an announcement on its website.

On Nov. 25, SSP announced the completion of a tender offer by its South Korea-based parent company, SFA Semicon Co. Ltd. (SFA Korea), which took place from Oct. 14 to Nov. 12.

The tender offer saw 192.77 million common shares validly tendered, representing 9.43% of SSP’s total issued and outstanding shares.

The tendered shares were bought by SFA Korea at P2.22 apiece, equivalent to P427.96 million.

SSP disclosed its voluntary delisting plan in August. The company has business interests in the manufacturing and assembly of semiconductors and memory devices. — Revin Mikhael D. Ochave

LANDBANK charter amendments may hurdle House banks committee by next month

THE NEW CHARTER of the Land Bank of the Philippines (LANDBANK) is expected to be approved by the House of Representatives Banks and Financial Intermediaries Committee early next year, its chairman said on Monday.

Manila Rep. Irwin C. Tieng, who heads the House banks committee, said LANDBANK’s charter could be approved at the committee level as early as January.

“I don’t think we can release it by December… but we are allowed to have committee hearings during the breaks. So, even if we don’t have a session, we can request special approval from Congress to hold a hearing,” Mr. Tieng told BusinessWorld.

Bills seeking to amend LANDBANK’s charter are pending at the House and Senate banks committees. The proposals seek to increase the state-run bank’s capitalization to P1 trillion from the current P200 billion.

Mr. Tieng’s proposal states that P200 billion or 20% of LANDBANK’s capital stock shall be subscribed to by the National Government, while P163.79 billion or at least 81.89% of the total subscription will be paid by the state.

A separate bill also being considered by the House banks committee includes a provision mandating LANDBANK to allocate at least 60% of its total loan portfolio to farmers and fisherfolk.

“We will find out if there are other things that we need to change in their charter with regards to granting loans and collecting loans,” Mr. Tieng added. “Maybe we have to add some things regarding the granting of loans, such as the maximum amount and who can grant up to what amount, also the allowable period of loans. Those are the things we’re looking into.” — Kenneth Christiane L. Basilio

Arthaland projects P15-B GDV for Una Apartments

UNA APARTMENTS is the country’s first multi-certified mid-market residential development. — ARTHALAND.COM

PROPERTY developer Arthaland Corp. projects that its Una Apartments, a mid-market residential development in Biñan, Laguna, will have a gross development value  of P15 billion, according to a company official.

The five-tower project is located inside the 8.1-hectare Sevina Park in Biñan.

“The estimated GDV (gross development value) is P3 billion per tower,” Christopher G. Narciso, executive vice-president and business operations group head at Arthaland, said in a Viber message.

Tower 1, with all 396 units sold, is expected to be completed by the fourth quarter of 2026.

“Right now, we’re looking at completing the sell-out of the second tower, and launching the third tower by next year,” Mr. Narciso told a media briefing on Nov. 18.

Earlier this month, Arthaland broke ground for Tower 2, which will have 19 floors and around 400 units. It is expected for turnover by 2027. More than 60% of its units have already been sold.

A studio unit at Una measures 28 square meters (sq.m.), a one-bedroom unit-prime is 34 sq.m., and a one-bedroom unit-deluxe measures 42 sq.m. Each unit has a floor-to-ceiling height of 2.6 meters and its own balcony.

A commercial area will be built within the townhouse complex, according to Arthaland Senior Vice-President and Chief Sustainability Officer Oliver L. Chan.

“We plan to have our own commercial area for the basic necessities and the immediate needs of the residents. So, we’re starting to do that already, we’re planning for it and it should be up soon,” he told the briefing. He added that the company will also establish point-to-point transfer shuttles using electric vehicles to transport residents.

The complex also has a rainwater collection system to save water for irrigation, he noted.

Sevina Park is accessible via the Cavite-Laguna Expressway and is near key areas like the De La Salle University-Laguna Campus, hospitals, and other industrial estates.

On Nov. 14, Arthaland said it had raised P2.5 billion to fund the first two Una towers.

The project challenges the perception that sustainability is a luxury, said Arthaland Vice-Chairman and President Jaime C. González.

“At Arthaland, we are dedicated to creating a sustainable culture in how people live, how communities are built, and how we as property developers pursue our business,” he said in a video message. — Beatriz Marie D. Cruz

A true comedy club opens in BGC

OPENING NIGHT at Comedy Manila’s Brick Wall comedy club (L-R): Rex Navarrete, Roger Naldo, GB Labrador, Nonong Ballinan, Margie de Leon, Alexio Tabafunda, and James Caraan.

The official opening featured Rex Navarrete

THE stand-up comics of Comedy Manila are a fun bunch. There’s the irreverent barkada humor of KoolPals podcasters GB Labrador, Nonong Ballinan, and James Caraan. There’s the self-deprecating yet hilarious energy of Alexio Tabafunda (very well-executed fat jokes!) and Roger Naldo (very well-executed speech impediment jokes!). Meanwhile, Margie de Leon can charm a crowd with her sophisticated wit coupled with her down-to-earth demeanor.

It took 12 years for the comedy production house — now representing over 40 comedians — to have a home stage of its own, Mr. Labrador told the media at its official opening night last week (it has been open since September).

“We write our own jokes and represent our own humor onstage. That’s our goal,” said Mr. Labrador. “We have comedians representing different genders, cultures, and parts of the Philippines. With our own stage, people will be able to see a diverse range of stand-up on a weekly basis.”

BusinessWorld attended the launch, sampling the jokes by six comics that ranged from self-ridicule to more Philippine-specific topics like the distinct way of speaking of FlipTop rappers and the absurdity of seeing Catholic figures painted alongside anime characters on jeepneys. The highlight was Mr. Naldo recreating his experiences being misunderstood at a store because of his speech impediment, though his best joke was fictional — acting out what he would sound like if he were to be possessed by a demon. Mr. Tabafunda’s imitation of how a fat person’s neck appears when craned to seek out food was a close second.

While rude humor is expected (Mr. Caraan exaggerating the odd quirks of Iglesia ni Cristo prayers drew flak online from members of the religious group), shaking one’s head and grimacing at the offensiveness of some jokes is par for the course at stand-up comedy shows. Outside of the safe space of a comedy club or among a very tight-knit group of friends, no one would dare repeat many of these jokes in public.

“A lot of comics are good, or they have potential, but there’s no proper stage for everyone to shine and showcase their talents,” Mr. Labrador told BusinessWorld, on how stand-up comedy is best honed with a live audience.

“That’s the reason we have Comedy Manila, and now this proper stage at Brick Wall BGC.”

COMEDY MANILA’S GODFATHER
The headliner of the night, Filipino-American comedy legend Rex Navarrete, kept the audience laughing over his hour-long set. It’s clear that he’s in a league of his own, coming from the United States and providing humor as a Filipino in a land where he is a minority.

A stereotypical tito rambling on and on as a pilot checking in on his passengers during the flight? Check. A reenactment of young Rex bringing home an Irish immigrant friend who grows more and more bewildered by each Filipino quirk in his household (cue the horror of discovering leftover dinuguan in an ice cream container)? Check.

Mr. Navarrete’s situational comedy is unmatched — and for good reason. In the Q&A after his set, he cited a plethora of references. There’s Andy Bumatai, a Hawaiian of Filipino ancestry, who is unafraid to make fun of other cultures that make up the population of Hawaii, like Portuguese and Samoans.

“Hawaii has its own stand-up comedy scene that never made it to the mainland United States because it was very specialized and localized. They got different cultures mixing together and their way of getting along is to make fun of each other, to the point where you’re insulting your next-door neighbor who happens to be of another race,” Mr. Navarrete explained. “I learned some of the most racist jokes done about Filipinos, done by Filipinos there.”

He also cites British comedy like Monty Python sketches, which taught him “the art of the ridiculous,” and American institutions like Saturday Night Live, George Carlin, and Eddie Murphy.

For the Comedy Manila members in attendance, Mr. Navarrete was the blueprint, his comedy album and videos passed around online via Limewire in the early 2000s. When he came over to the Philippines in 2002 to perform for the first time, the stand-up comic scene was basically nonexistent.

He discovered a few of the comedians who now make up Comedy Manila while trying to find people who wanted to open that show for him — one of the seeds that kicked off the group’s homegrown movement.

“Rex is one of the guys who made it possible for this kind of stand-up to flourish here in the Philippines,” Mr. Labrador said. “Even if you don’t see him all the time, he’s messaging and congratulating us for every achievement, whether it’s a sold-out show or someone headlining his first Netflix special.”

“We don’t hear that from Jo Koy, actually,” he quipped, referring to the other well-known Fil-Am stand-up comedian, drawing laughs among the group.

A NEW HUB
Brick Wall has the quintessential comedy club atmosphere, and both patrons and newcomers can look forward to a diverse lineup, including observational humor, storytelling, and improvisation, performed by both local and international comedians. 

It is difficult to get to the venue, with BGC being notoriously nearly inaccessible to commuters and backed up with traffic for car owners and ride-hailing app users. But perhaps the “global crowd” in the area is suited to the diverse range of stand-up comedy that Brick Wall will offer.

In a statement, the venue said that it “will also host a variety of alternative entertainment options, including improv nights, comedy-themed trivia, live podcast recordings, and acoustic performances.”

Its food menu is decent (expect BGC prices, of course), filled with pub-style comfort food like chicken wings, nachos, shrimp, porkchops, and baby back ribs. It offers themed cocktails like the Impression, Heckler, and Carebear.

Mr. Labrador said that, despite the pandemic doing them favors by introducing a lot of people who were struck at home to stand-up comedy via YouTube, podcasts, and streaming platforms like Netflix, a physical venue still matters.

“There was no such thing as a venue back then, maybe just a bar or restaurant where we’d do an open mic. The challenge was to make the random people there laugh, and that’s how we got better.”

Brick Wall BGC is on the second floor of Uptown Parade, BGC, Taguig. It is open seven days a week, with The KoolPals’ open mic nights on Tuesdays and Comedy Manila’s showcases set for Wednesdays and Saturdays. — Brontë H. Lacsamana

On Philippine-Canada trade, and Argentina’s fiscal surplus

Last week a huge business delegation organized by the Canadian Embassy — the Team Canada Trade Mission (TCTM) — came to Manila. Upon the invitation of the embassy, I attended the Plenary Session, “Canada, the Philippines and the Indo-Pacific,” on Dec. 5 at the Grand Hyatt Hotel ballroom. It was full, with some 300 Canadian plus 400 Philippine business leaders, plus government officials from both countries in the room.

Keynote speakers were Minister Mary Ng of Canada’s Ministry of Export Promotion, International Trade and Economic Development, and Secretary Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs of the Philippines. I also attended the TCTM gala dinner that day at the PICC.

Trade between the Philippines and Canada is not big yet. Data from the Philippine Statistics Authority (PSA) show that total merchandise trade (exports plus imports) was only $1.49 billion in 2023 and $1.05 billion in January-September 2024. The top three trade partners of the Philippines still are China, Japan, and the US, while other Asian neighbors fill up the top 10 (see Table 1).

Special credit goes to the Ambassador of Canada to the Philippines David Hartman, and Trade Counselors Eleonore Rupprecht, Guy Boileau and their staff for their hard work promoting the Philippines to Canadian business people. Thank you, Sirs, Madam.

INFLATION
Last week the PSA released the country’s inflation and labor data. The inflation rate in November was 2.5%, lower than the November 2023 level of 4.1%. The January-November average is now 3.2%.

The government economic team was understandably bullish. Finance Secretary Ralph G. Recto said that “We are very much on track in keeping our inflation within our target band for the entire year despite some challenges, such as strong successive typhoons that affected the agriculture sector.

“Economic Planning Secretary Arsenio M. Balisacan said that they focus on “price stability supported by prudent monetary policies and strategic trade measures in the near term, as well as improved access to quality job opportunities and productivity-enhancing reforms.”

Budget Secretary Amenah F. Pangandaman said that “public spending that raise agriculture and overall productivity especially infrastructures that facilitate faster mobility of goods and people continue to be prioritized to help stabilize prices and adequate supply of commodities.”

Later this week I will go to Argentina to meet some fellow free market leaders from other countries around the world. The choice of Argentina as the venue for the event was good because in November 2023, the people of Argentina elected a very articulate and dynamic leader, President Javier Milei.

Argentina has suffered from hyperinflation for many years, up to 133% in 2023 alone. Big government bureaucracies and spending that required heavy borrowing and money printing led to high interest and inflation rates. President Milei cut many subsidies and freebies, and certain bureaucracies, and this led to a sustained budget surplus this year.

I compared the budget balance of Argentina with five other large Latin American countries — Brazil, Mexico, Colombia, Chile, and Peru. All of them, especially Mexico, continue to suffer from large budget deficits. Argentina is the new odd-man-out in a positive way (see Table 2).

From the early to middle part of this year, Argentina’s inflation rate reached up to 200%+ mainly because President Milei removed price controls and slashed subsidies of various commodities and public services. But the inflation rate has since started to mellow. The fiscal surplus should lead to less borrowing, lower interest payments, and more public resources to finance public infrastructure that can reduce inflation pressure.

The Philippines has been moving to more market-oriented reforms, including the corporate income tax cut from 25% to 20% under the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) law. Argentina is also moving towards more market reforms. There should be synergy between both countries if they enter into more bilateral trade and investment partnerships.

Those sectors should include energy, and Argentine exports of beef, poultry, and pork. Their nuclear technology — applications in power generation, medicine and healthcare, agriculture, etc. — plus satellites and biotechnology, forensic anthropology, should be something that we can learn from and tap.

Argentina can also tap the Philippines’ electronics products and exports — tropical fruits — among others. The list between two market-oriented emerging economies on both sides of the Pacific can truly expand.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Mets Logistics eyes expansion with P7B from Growtheum Capital

METSLOGISTICS.COM

SINGAPORE-BASED private equity firm Growtheum Capital Partners (GCP) will invest P7 billion in Mets Logistics, Inc. to help advance its expansion in the cold storage logistics sector in the Philippines, the local cold chain solutions provider said on Monday.

“This investment will further our expansion plans and help us enhance our cold chain logistics capabilities, providing greater value to our customers and stakeholders,” Mets Chairman and President Eduard Tio said in a statement.

Established in 2010, the Philippine-based cold chain solutions provider operates cold storage facilities nationwide with over 100,000 total pallet positions, the company said.

GCP will invest P7 billion in Mets, while another P500 million from Mets’ founder shareholders will also be invested in the company to fund its expansion plans, the company said.

The closing of the investments is pending regulatory approvals, with PwC Philippines serving as the financial, tax, and legal advisor.

“Both Mets and GCP are committed to driving sustainable growth and creating long-term value, with the vision to address the shortage of reliable and high-quality cold storage services in the country,” the company said.

Amit Kunal, managing partner at GCP, said Mets’ core business aligns with its investment strategy, which is to help fund companies operating in healthcare, financial services, education, digital services, and consumer sectors. — Ashley Erika O. Jose

SB Capital changes name to Security Bank Capital and Investment Corp.

THE WHOLLY OWNED investment banking arm of Security Bank Corp. has changed its name to Security Bank Capital and Investment Corp. from SB Capital Investment Corp.

The investment house’s corporate name change has been approved by the Securities and Exchange Commission and took effect on Nov. 12, Security Bank said in a statement on Monday.

“This change aligns the firm with the BetterBanking brand of its parent company and aims to further enhance its corporate identity in the industry,” it said.

“Security Bank Capital will continue to provide the same level of excellence and comprehensive investment banking services to our valued clients. We are excited about this development and remain dedicated to supporting our clients’ financial goals with renewed vigor and a unified brand presence,” Security Bank Capital President and Chief Executive Officer Virgilio O. Chua said.

Incorporated in 1995, Security Bank Capital offers investment banking products and services like underwriting of equity and debt securities, project finance, mergers and acquisitions, loan syndications, and advisory services to public and private sector clients.

Security Bank Capital’s subsidiaries are leasing firm SB Rental Corp. and stock brokerage SB Equities, Inc.

Its listed parent Security Bank’s net income rose by 13.58% year on year to P3.01 billion in the third quarter amid higher revenues.

This brought its nine-month net profit to P8.45 billion, up by 11.62% from a year ago.

Security Bank’s shares went down by P1.80 or 2.12% to end at P83.20 apiece on Monday. — A.M.C. Sy

mySTAY targets 80% occupancy, growth in direct bookings for 2025

MYSTAY.PH

BUDGET hotel chain mySTAY Hotels is targeting to increase direct bookings and maintain an 80% occupancy rate next year, according to its chief executive officer (CEO).

“We’re actually maintaining around 80% occupancy…, which I believe is relatively higher in the industry regardless of star rating,” Reigine Valerie S. Banaag, CEO and general manager of mySTAY Hotels, told BusinessWorld on the sidelines of a Philippine Hotel Owners Association event on Nov. 18.

“We are actually increasing more of our direct market. Right now, we have different sources. The majority is, of course, online travel agencies,” she added.

mySTAY has four branches: mySTAY Hotel BGC East, which opened in September 2022; mySTAY Hotel BGC West, which opened in November 2022; and the last two branches, mySTAY BGC North and South, which opened in January and May last year, respectively.

mySTAY is set to release its own membership program next year, which is expected to increase bookings on its website.

Currently, most of mySTAY Hotels’ bookings come from third-party websites like Agoda and Booking.com, according to Ms. Banaag.

mySTAY Hotels features a modern-minimalist style, catering to budget-conscious millennials and Gen Z travelers.

The majority, or 80%, of its visitors are from the domestic market, while 20% are foreigners. Most of its bookings are for leisure, particularly for those who wish to visit BGC in Taguig City, Ms. Banaag said.

Guests can choose from different room options. The Deluxe Queen and Deluxe Twin rooms both measure 12 square meters (sq.m.), while the Loft Bunk room has an area of 10 sq.m. The Garden Suite, measuring 22 sq.m., is only available at mySTAY Hotel BGC South.

Room rates at mySTAY Hotels start at around P1,499 per night.

The four properties also include additional facilities such as a café, a co-working space, and a gym.

While the company has no concrete plans for expansion, Ms. Banaag said this could still be possible due to its high occupancy rate.

“For now, there are no concrete plans for expansion, but for me, with how it is looking with mySTAY, I can only be optimistic about the expansion of the brand,” she said.

mySTAY Hotels is the hotel brand of the Philippines Urban Living Solutions, Inc. (PULS), a rental housing development company catering to young professionals on a budget. In 2017, Sy-led SM Investments Corp. acquired a 61.2% stake in PULS. — Beatriz Marie D. Cruz