Facebook Instagram Linkedin X Youtube
Home Blog Page 8731

Q3 foreign pledges drop from year-ago levels

By Marissa Mae M. Ramos, Researcher

INVESTMENT PLEDGES made by foreign companies in the third quarter rebounded from a nine-quarter low in the second quarter, but remained significantly lower compared with the same period last year, data from the Philippine Statistics Authority (PSA) showed.

Approved foreign investment pledges amounted to P31.03 billion in the third quarter, double the P15.46 billion in the previous quarter, but 83% lower than the P182.44 billion in the same three months in 2019. This represents the amount of foreign-led projects given the go signal by the country’s seven investment promotion agencies (IPAs).

The year-on-year drop in the third quarter was the biggest since the 84.4% slump in the third quarter of 2009.

For the first nine months of 2020, the approved pledges reached P75.64 billion, 72.8% lower than the P278 billion during the same period a year ago.

Meanwhile, combined pledges of foreigners and Filipinos approved by IPAs totaled P176.55 billion, 65.8% less than the P515.71 billion a year ago. Domestic pledges reached P145.52 billion in the third quarter, accounting for 82.4% of the total.

Should these commitments materialize, foreign and local investments pledged in the third quarter were estimated to generate 32,100 jobs, down 36.6% from the projected additional employment of 50,628 a year ago.

Only nine of the 17 regions recorded foreign pledges in the third quarter. Of these, Soccsksargen got the highest share with 31.3% or P9.73 billion, followed by the National Capital Region’s 29.3% (P9.1 billion), Calabarzon’s 16.8% (P5.22 billion), and Central Luzon’s 11.2% (P3.48 billion).

Among the seven IPAs monitored by the PSA, the Philippine Economic Zone Authority and the Board of Investments got the bulk of foreign pledges with 65.3% and 34.3% shares of the total, respectively, or P20.28 billion and P10.63 billion.

Mainland China was the biggest source of investment commitments during the period with P9.58 billion, around eight times more than the P1.24 billion in the third quarter of 2019 and accounting for 30.9% of the total. It was followed by the United States with P7.16 billion (23.1% share) and the United Kingdom with P4.76 billion (15.3% share).

Ex-military men join telco Dito

AT LEAST NINE former military officers have joined Dito Telecommunity Corp., a company official said Thursday, amid concerns over its partnership with a Chinese state-owned telecommunications firm.

Retired Col. Roleen del Prado currently leads the telco startup’s cybersecurity operations team, Dito Chief Technology Officer Rodolfo D. Santiago, also a retired military general, said at a virtual briefing.

“We regard him as the best in terms of cybersecurity… I was able to convince him to retire early and join Dito to lead our cybersecurity operations,” he added.

Mr. Santiago added that a “minimum of nine” former military officers currently work for Dito.

“If you’re going to scan the local cybersecurity industry, this is true even in other countries, those who have been with the armed forces are the best persons to be utilized for very, very critical cybersecurity requirements,” he said.

There have been concerns over the deal between the Armed Forces of the Philippines and the telco startup to build cell sites in select military camps.

Dito vowed it would not use its devices and infrastructures to obtain classified information from the Armed Forces.

In September, the telco startup announced it would be investing P1 billion in cybersecurity solutions this year to be supplied by 12 technology firms based in the United States.

Dito has already put up close to 1,900 towers nationwide, Dito Chief Administrative Officer Adel A. Tamano said at a Senate hearing on Dec. 7.

The company has built “more than enough” cell sites to achieve its commitment to cover 37% of the population with a minimum of 27 Megabits per second, he added.

Dito is set to commercially launch its services in March after the scheduled technical audit in January.

The telco startup is 40% owned by China Telecommunications Corp. — Arjay L. Balinbin

Fruitas launches own milk brand under Babot’s Farm

FOOD AND BEVERAGE kiosk operator Fruitas Holdings, Inc. is continuing to expand, with the company introducing its own milk line under the Babot’s Farm brand.

In a statement on Thursday, the company said the new milk brand, named Babot’s Farm 100% pure and fresh milk, is all-natural and comes from free-range cows.

Fruitas said the first variant under the new milk brand is cow milk, with plans to introduce other varieties such as chocolate milk and carabao milk in the future.

The company said it is also considering yogurt as an additional product in the Babot’s Farm brand lineup.

Fruitas said the new product will be available in more than 20 Babot’s Farm and Soy & Bean community stores across Metro Manila.

It added that the new milk brand will be offered via the company’s delivery service, CocoDelivery, and in other kiosks.

Fruitas President and Chief Executive Officer Lester C. Yu said the new milk brand fits the company’s products as the product requires minimal processing before consumption.

“We believe that we can offer healthier alternatives of milk to Filipinos, so we decided to introduce our own brand of milk into our retail network,” Mr. Yu was quoted as saying. “This initiative will move us closer to achieving our vision of having every Filipino household consume a Fruitas product every day.”

Fruitas said some 800 outlets within its store network have already reopened. By the end of the year, the company plans to open 30 community stores and 100 by the end of 2021.

The company recently opened its first franchised store in Dubai under the House of Desserts brand, which offers several products such as fruit shakes, pearl shakes, milk tea, fresh fruit desserts, halo-halo, and fresh lemonades.

Fruitas cut its net loss to P19 million in the third quarter due to higher consolidated revenues and reduced operating expenses.

Compared to the previous quarter, the company said its consolidated revenues rose 90% to P167 million, while its operating expenses excluding depreciation and amortization fell 56% to P102 million.

On Thursday, shares of Fruitas at the stock exchange were steady at P1.70 per piece. — Revin Mikhael D. Ochave

Alsons to issue P3B in commercial papers

ALSONS Consolidated Resources, Inc. will issue P3 billion in short-term commercial papers, it said on Thursday.

In a regulatory filing, Alsons said its board of directors has approved the commercial paper program. The papers will be issued in one or more tranches, it said.

Alsons said it has enlisted the services of Multinational Investment Bancorporation as the issue manager and lead underwriter for the papers.

Meanwhile, it will tap the Philippine Depository & Trust Corp. as the registrar and paying agent.

Alsons last month entered into an omnibus notes facility and security agreement for the refinancing of its fixed rate corporate notes worth P6 billion. The said notes would have tranches of five or seven years.

In September, the company issued P1 billion worth of commercial papers, the proceeds of which will be used to fund its upcoming renewable power projects.

The debt papers under the second series of the company’s debt service program were listed and traded on the Philippine Dealings and Exchange. The program started in 2018.

Alsons is engaged in both power production and real estate. It has four power generators with a combined capacity of 468 MW.

The firm’s attributable net income slipped 9.3% to P28.62 million in the third quarter. Meanwhile, its net profit in the nine months ended September rose nearly seven times to P360.6 million.

Shares in Alsons decreased by 1.42% or two centavos to finish at P1.39 apiece on Thursday. — A.Y. Yang

MRC Allied signs deal with 5G Security to buy majority of Kerberus

FORMER PROPERTY development firm MRC Allied, Inc. has signed a deal with 5G Security, Inc. (5GS) to acquire 75% of Kerberus Corp. as it enters the holding industry.

MRC Allied in a disclosure on Thursday said it signed a memorandum of agreement to prepare for supermajority ownership and control of Kerberus, where cybersecurity services and building management firm 5GS owns majority share and control.

5GS, under the agreement, will immediately increase the authorized capital stock of Kerberus to P300 million.

MRC Allied will acquire up to 250 million shares in Kerberus within 120 days from the approval of the Securities and Exchange Commission of the increase in the authorized capital stock of Kerberus.

Further details on the acquisition will be tackled in a separate agreement, the company said.

“This acquisition of Kerberus Corporation will solidify the entry of MRC into the holding industry. It will also bring the Company closer to its aspirational goal of transforming from property business to a holding company,” MRC Allied said.

MRC Allied last month announced it now operates as a holding company, but would maintain usual business operations with no changes to its capital structure.

MRC Allied’s wholly-owned units include Menlo Renewable Energy Corp., MRC Tampakan Mining Corp., MRC Surigao Mines, Inc., and Makrubber Corp.

Shares in MRC Allied dropped 3.5 cents or 6.7% to P0.485 apiece on Thursday. — Jenina P. Ibañez

Axelum Resources ramps up coconut milk powder output

COCONUT EXPORTER Axelum Resources Corp. has strengthened its coconut milk powder production after projecting the segment will be vital to its future plans.

In a stock exchange disclosure on Thursday, the company said it has increased its production capability of organic coconut milk powder to 1,500 metric tons (MT) yearly.

Aside from being an ingredient for food, the company said organic coconut milk powder is also used as raw input for collagen-based products.

“Better production capacity was required not only because of the strong growth prospects of the industry, but also specific customer needs including one of the largest and fastest growing American collagen brands, which is penetrating into Asia and Europe, has sought Axelum’s support in adding capacity to be able to service their organic coconut milk powder requirements,” the company said in a statement.

Henry J. Raperoga, president and chief operating officer of Axelum Resources, said the sustained demand for its coconut milk powder bodes well for the company’s growth.

“Organic coconut milk powder remains one of our most profitable products given its unique characteristics and premium pricing,” Mr. Raperoga was quoted as saying.

Axelum said its coconut milk powder segment accounted for 15% of its revenues during the first nine months of the year.

The company said coconut milk powder is often used as a culinary ingredient for baked goods, curry dishes, packed food sauces, and confectioneries.

“Organic coconut milk powder, is a fine, creamy white meat substance squeezed from fresh coconut milk that is dairy-free and made from all-organic components,” it said.

The company’s net income fell 37.1% to P383.1 million in the first nine months, while its sales reached P3.75 billion.

Axelum shares at the stock exchange rose 1.37% or five centavos to end at P3.70 apiece on Thursday. — Revin Mikhael D. Ochave

Coca-Cola Philippines appoints new country president

COCA-COLA Philippines has appointed its new country president Antonio “Tony” V. Del Rosario, Jr. to head the local unit of the global beverage brand starting January.

Also serving as the Vice-President of Franchise Operations for Coca-Cola East Region representing the Philippines, Vietnam, and Cambodia, Mr. Del Rosario will be the first Filipino to lead Philippine operations in almost three decades.

Mr. Del Rosario has been working in the Coca-Cola system locally and internationally for 20 years, the company said in a press release on Thursday. He will be in charge of strategic business objectives in partnership with the firm’s Bottling Investment Group.

“His main focus is to further cement Coca-Cola Philippines’ strong foothold, not only in the country, but across ASEAN as well — driving further growth through consumer-centric brands,” Coca-Cola said.

Mr. Del Rosario started his career in Coca-Cola as region manager for North and South Luzon before being appointed national operations director. He then moved to Indonesia to become the sales and marketing director of Coca-Cola and Nestlé joint venture Ades Waters, then became Coca-Cola Amatil Indonesia commercial director.

He has taken on general manager positions in Coca-Cola across Southeast Asian markets since 2008.

“I am grateful to have been given the chance to learn and understand the diverse cultures of different Coca-Cola markets. But the biggest honor is to go back to my home country after 20 years and serve my fellow Filipinos, especially during this time,” Mr. Del Rosario said.

The Philippine-based company bottles and distributes Coca-Cola products such as soft drinks, water, and juices in the country.

Coca-Cola Philippines in July said it was investing P1.1 billion more in its local operations for 2020 as it adds new production lines in Luzon and Mindanao. This includes investments in Misamis Oriental, Zamboanga, and Santa Cruz, outside Davao.

This puts its total investment for the year at P4.74 billion.

The company in August said that it experienced its worst sales months in the Philippines during the stricter lockdown in March and April after it lost demand from restaurant and convenience store clients. While there has been some sales improvement, Coca-Cola Philippines expects 2021 to remain a “tough year.” — Jenina P. Ibañez

RCBC sees prolonged virus hit

RIZAL COMMERCIAL Banking Corp. (RCBC) sees continued asset quality risks as the challenging environment may persist for both consumers and businesses in 2021.

“Consumer loans will grow slowly compared to the past years. Customers whose incomes have been affected have started to become more conservative and understandably so,” RCBC President and Chief Executive Officer Eugene S. Acevedo said in a briefing on Thursday.

He said they have been hit by the impact of the lower interest rates for credit cards and said it is a “major challenge” they have already accepted.

Mr. Acevedo said they also expect that business clients will continue to bear the brunt of the pandemic.

“A number of corporate and industry clients will take longer to recover to pre-COVID levels,” he said.

Amid these challenges, Mr. Acevedo detailed the bank’s continued move towards digitalization and sustainability.

“No more coal. Moving forward, all our loans for the energy sector will be non-coal. The entire banking system is moving into that direction,” he said.

In terms of operations, Mr. Acevedo said RCBC has been boosting its digital capabilities, including robotics.

Meanwhile, the bank has also frozen hiring and has downsized its workforce, the official said.

“We closed 66 branches in our network this year because we realized that at the height of COVID-19 (coronavirus disease 2019), 50-60% of branch transactions disappeared,” he said, noting digital transactions have continued to grow.

RCBC in July launched its Diskartech app which offers digital services, including bills payment and a basic deposit account that can be registered through an all-online process.

The Yuchengo-led lender’s net profit in the third quarter plunged 51.78% year on year to P892 million amid higher loan loss provisions and waived client fees.

This brought the bank’s nine-month net income to P4 billion, down 11.31% from the P4.51 billion posted in the January to September 2019 period.

RCBC’s shares closed at P19.08 apiece on Thursday, down by 0.63% or 12 centavos from its previous finish. — Luz Wendy T. Noble

A fan’s nightmare and a battle of magic bandanas

A look at two of the 2020 MMFF entries

THIS year’s Metro Manila Film Festival (MMFF) — which will be held online because of the ongoing coronavirus disease 2019 (COVID-19) pandemic — is proving to be one of the most diverse installments of the country’s largest film festival owing to the variety of genres of the 10 movies which will be screened starting Dec. 25.

Here is a look at two of the entries — a so-called anti-rom-com and a horror movie.

FANGIRL
One of the more anticipated films in the lineup is Antoinette Jadaone’s Fangirl, a film that tackles fan culture and how it might not be wise to meet your idols.

The movie tells the story of Jane (played by Charlie Dizon), an ardent fan of Paulo Avelino (who plays himself), who manages to smuggle herself to his home by riding in the back of his pickup truck. She ends up in an unfamiliar house with an unfamiliar Paulo Avelino, an actor she thought she knew from head to toe.

“Fan culture is very interesting when we watch our idols on screen. We don’t usually have a line between reality and fiction. So for us, what we see from them — playing characters on screen — is what we consider as their real selves off-cam,” Ms. Jadaone, director of the film, said in a Dec. 7 press conference held over Zoom.

She called the film a “cautionary tale” and an “anti-rom-com,” though she did say that she didn’t want to spoil things by saying too much about the film.

Ms. Jadaone, best known for her romantic films That Thing Called Tadhana (2014) and Never Not Love You (2018), has embarked on what film critics said was her most daring feature yet, with Asian Movie Pulse calling it “an intriguing piece of cinematic work,” while the Hollywood Reporter called it “a bold look at fandom.”

Fangirl is definitely not a PG film as the Hollywood Reporter mentioned “male frontal nudity” in its review of the film, which had its world premiere at the Tokyo International Film Festival in November.

Then there are the sexual advances made by 32-year-old Avelino towards the underaged fan (Charlie Dizon is 24 but plays a 16-year-old). This, Ms. Jadaone said, is because “filmmakers and artists must be able to tackle not just topics that are being talked about but also topics that we are scared to talk about.”

“So in Fangirl, this won’t just tackle issues on celebrity culture and idolatry, it will also tackle issues we are afraid to discuss with people,” she said, before adding that she made sure that the risque scenes were shot with respect and taste and she constantly asked Ms. Dizon if she was okay shooting the scenes.

MANG KEPWENG: ANG LIHIM NG BANDANANG ITIM
A completely different MMFF entry is horror-fantasy-comedy film Mang Kepweng: Ang Lihim ng Bandanang Itim, directed by Topel Lee with the titular character being played by Vhong Navarro.

The film is a sequel to the 2017 film Mang Kepweng Returns, and follows Mang Kepweng, a local albularyo (folk healer) whose red polka dot bandana grants him powers to heal all kinds of sickness. Drunk on his success, Mang Kepweng starts to take his powers for granted and eventually starts to lose them.

Meanwhile, a supervillain named Maximus (Joross Gamboa) has gotten a hold of the black bandana, the counterpart of the red bandana, and uses it to sow terror. Mang Kepweng and his friends then try to re-power the bandana and save the world.

It should be noted that the original film was a remake of the 1979 film Mang Kepweng, top billed by comedian Chiquito (real name: Augusto Valdes Pangan Jr.), which itself was based on Al Magat’s comic strip series which ran from the 1970s through the 1980s.

Mr. Navarro said in a press conference on Dec. 8 via Zoom that Mang Kepweng: Ang Lihim ng Bandanang Itim is a family film meant to “entertain people” this Christmas season, something that is sorely missed as the pandemic is still ongoing.

This year’s MMFF will be screening completely online from Dec. 25 to Jan. 7 via Filipino streaming service Upstream.ph. Each ticket is priced at P250 and the movie must be viewed within 24 hours once a film ticket has been purchased. Advanced tickets are now available via Upstream.ph. — Zsarlene B. Chua

Ayala-KTM venture to export 80% of motorcycle output next year

THE Ayala-KTM partnership plans to export 80% of 12,000 motorcycles next year, Ayala Corp. Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said.

At the Trade department’s manufacturing summit on Thursday, Mr. Zobel said its partnership with the Austria-based KTM AG has so far produced over 23,000 units, exporting 62%. Majority of exports are sent to China.

“We entered the motorcycle manufacturing business in 2015 in partnership with KTM,” he said.

“In 2021, 80% of the factory’s production of over 12,000 motorcycles will be exported, with 21% to the ASEAN region.”

The partnership running under Ayala’s automotive unit was announced in 2016. Ayala-led Integrated Micro-Electronics Inc. launched the manufacturing facility for KTM a year later.

He added that the business saw a 160% increase in Philippine sales during the second half of 2020.

“Domestically, the pandemic has also encouraged growth in demand for personal transportation.”

Mr. Zobel said Ayala and KTM plan to double plant capacity over the next three years. — J.P. Ibañez 

VR makes for an intimate concert experience

By Zsarlene B. Chua, Senior Reporter

CONCERT REVIEW
Alden’s Reality
Featuring Alden Richards

BILLED as the country’s first virtual reality (VR) concert, Alden’s Reality promised an intimate celebration of Alden Richards’ 10th year in the entertainment industry, and it was, as the hour-long concert (excluding commercials and a 10-minute intermission) showed that while Mr. Richards is not the best singer and dancer in the industry, he does make up for it with genuine effort.

The concert opened with Mr. Richards in bed, asleep, and waiting for his “date” (the viewer). When his date arrives, Mr. Richards awakes and dresses up, all the while talking about his family and his dog whom he called his “dance partner.”

The concert had three screening schedules: at 9 and 11 p.m. on Dec. 8, and at 10 a.m. on Dec. 9.

Since this was a “virtual reality” concert, viewers were given a 360-degree view of the “house” which was apparently a CGI set. In terms of viewability, using the VR device (given to VIP ticket holders) does make the immersive experience better, though the strain of having to hold up the phone screen and the device against one’s eyes can be troublesome.

Announcements made during the concert reminded people to take “frequent breaks” while using the VR devices, and assured them (and the general admissions audience who did not have the VR devices) that the concert could be viewed satisfactorily without the device and that people could swipe or move their devices to see what was happening. As this writer experienced, the concert could be viewed comfortably without the device though the VR viewer did bring a more immersion.

After the opening spiel, Mr. Richards shifts to the concert stage where he performed “Kapag Malapit Ka,” and in all fairness, the VR device did make it look like he was singing and performing right in front of you.

A 180-degree turn led the viewer to a screen that showed how the concert would look like on a traditional TV screen.

Richards was then  joined by Rodjun and Rayver Cruz with whom he sang “Quit Playing Games with My Heart” by the Backstreet Boys and “Best Song Ever” by One Direction, and shared an enthusiastic dance break with. The lighting was not very good in this section, but that could be forgiven.

The concert’s director, Paolo Valenciano, mentioned in a press conference in late November, that they really worked hard on the concert and that it was a difficult concert to mount because of all the technical requirements.

“Taking a major risk tonight. We have no idea how people are gonna respond to this,” Mr. Valenciano posted on Instagram on Dec. 8. “One thing I can say though, the guy’s (Alden Richards) got balls.This is unknown territory for everyone involved. But the ‘reality’ is, we need to push boundaries or we fade away into oblivion,” he added.

The concert was divided into three parts, with Mr. Richards talking about his journey in the industry during the transitions, including how he started and how his family played a huge role in his career. He admitted that the career was something his mother (who passed away 12 years ago) wanted for him and that his family needed the money then, which is why he eventually became an actor.

The second and third sections had Mr. Richards singing ballads — with the exception of the performances of his new single, “Goin Crazy,” and BTS’s “Dynamite.” The ballads included Brian White’s “God Gave Me You,” the song that played a big part in his journey to superstardom as it was the theme song of the AlDub loveteam between him and Maine Mendoza that began in 2015.

In the last part of the concert — and after a gracious 10-minute intermission for VR viewers — he was joined by rock band December Avenue where they sang the band’s hits “Kung Di Rin Lang Ikaw” and “Kahit Hindi Mo Alam.”

Mr. Richards ended the concert with a few more songs including Daughtry’s “Home” and Ariel Rivera’s “Sana Ngayong Pasko.”

In all, Alden’s Reality delivered what it promised, a virtual experience, and it really showed how much effort was put into setting up the concert and makes good Mr. Richards’ promise that it would feel like the performance was for the individual viewer. It really felt intimate and it opened up a world of possibilities for a different concert-going experience.

Rediscount window left untapped in Nov. on ample liquidity

BANKS DID NOT avail of the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) for the second straight month in November on the back of ample liquidity and reduced demand for loans.

“Total availments by banks under the peso rediscount facility remains unchanged at P26.9 billion,” the central bank said in a statement on Thursday. This is 77.9% lower than the P122.167 billion worth of peso rediscount loans taken out in the same period last year.

The peso rediscount window has only been tapped by lenders in March, April, August, and September so far this year.

Lenders also left the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) untapped in November.

The central bank’s rediscount facility gives banks access to additional money supply by posting their collectibles from clients as collateral. In turn, banks can use the extra cash, denominated in peso, dollar, or yen, to disburse more credit for corporate or retail clients and service unexpected withdrawals.

“Lower demand for loans recently due to the adverse economic impact of the coronavirus disease 2019 reduced the need for banks to tap the rediscount facility,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Latest central bank data showed outstanding loans disbursed by big banks grew 1.9% year on year in October, the slowest since the same pace was logged in September 2006. The central bank attributed this to tighter credit standards imposed by lenders as well as low confidence among borrowers due to the coronavirus pandemic.

Mr. Ricafort added that banks’ decision not to borrow from the BSP’s rediscount facility also reflects the “relatively large excess liquidity” in the financial system. 

BSP Governor Benjamin E. Diokno earlier said policy measures fired off by the central bank earlier this year have infused approximately P1.9 trillion in liquidity into the financial system, equivalent to 9.6% of the country’s gross domestic product.

Meanwhile, for December, the applicable rate for peso loans regardless of maturity is at 2.5%, which is the borrowing rate following the 25-basis-point cut in benchmark rates last month.

On the other hand, credit to be availed under the EDYRF will be priced at 2.22438% and 1.88383% for dollar and yen-denominated loans, respectively. — L.W.T. Noble

1...8,7308,7318,732...14,251Page 8,731 of 14,251
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube