Startups wanted for fourth season of CNN’s The Final Pitch

June 26, 2019 | 2:23 pm

The Final Pitch is set to return for its fourth season on CNN Philippines later this year in September. Today, CNN is looking for aspiring entrepreneurs looking to connect with some of the most established businesspeople and investors in the country.

“We can’t wait for our entrepreneurs to grow their businesses with the help of our investor-judges,” said John Aguilar, show host and creator. “Every season is different and has something new to offer. Our investors are looking forward to discovering our country’s newest set of rising entrepreneurs and hear their pitches and amazing stories.”

The Final Pitch begins with a screening. Candidates make their initial pitch to the panel of investor-judges. The selected participants then proceed to a mentorship boot camp, with challenges designed to test the character of their founders. This all culminates in a “final pitch” to the investor-judges, who negotiate their final offers to the entrepreneurs.

Startups featured in the show’s previous seasons saw massive success following their stint with The Final Pitch. Among them is flexible workspace provider FlySpaces.

The season one winner received P15 million in funding (the highest investment of the season) from investor-judge and MFT Group of Companies CEO Mica Tan. Since then, FlySpaces has grown exponentially, more than doubling the initial investment in roughly a year and a half, with a wide presence throughout the region.

Mica Tan, who returns as the latest addition to this season’s investor-judges, continues to be an active member on FlySpaces’ board, providing strategic insight into their marketing and expansion operations.

Other returning judges include:

William Tiu Lim, President and CEO of Mega Global Corporation
Congressman Mikee Romero, Co-Founding Owner of Philippines AirAsia,
Mark Vernon, Blockchain Evangelist and Founder of Tagcash Ltd.,
and Michael Dargani, President and CEO of IceDream Inc.

Among this season’s mentors are Joel Santos of Thames International Business School, Junie del Mundo of EON The Stakeholder Relations Group, and Atty. Mark Gorriceta of Gorriceta Law.

“We can expect more sophisticated and mature startups coming into the fold, as they see The Final Pitch as a legitimate way to raise funding for their next stage of growth,” Aguilar said. “If they are an exciting business with potential to create exponential impact at scale, we want them on the show.”

The Final Pitch is accepting applications until July 8, 2019. Applicants can fill out and submit an online entry here, and submit their one-minute pitch video. The fourth season premieres September, 2019 on CNN Philippines.

Education reform and the Philippine economy

June 26, 2019 | 9:10 am

As “Asia’s Rising Tiger,” the Philippines has gained a reputation for rapid economic growth that has stayed on course no matter the circumstances. Despite recent tensions in the global economy, the country has managed to remain competitive, posting a respectable 5.6% gross domestic product (GDP) growth in the first quarter of the year.

Much of this is attributable to the country’s sound economic fundamentals. Due to a relatively young, educated population, the Philippines has become one of the best destinations for business process outsourcing (BPO).

In fact, when the National Economic and Development Authority of the Philippines published the Philippine Development Plan, 2017-2022, detailing the country’s aspirations for the next five years, human capital was listed as a key driver for the country’s growth. The plan, which envisions the Philippines becoming an upper-middle income country by 2022, aims to develop inclusive economic growth that will reduce inequalities and poverty, particularly in rural areas.

The development of human capital is a key element in this strategy, hence a push for more accessible and more relevant educational programs is needed. Recent education reforms, such as the K to 12 program and the Universal Access to Quality Tertiary Education, among others, have sought to boost enrollment levels, graduation rates, and mean years of schooling in elementary and secondary education, and to improve the quality of higher education.

Such reforms have the goal of revitalizing the country’s current education system. A report made by the United Nations Educational, Scientific and Cultural Organization in 2008, which assessed the education systems of Southeast Asian countries, found that participation and achievement rates in basic education in the Philippines had fallen dramatically due to chronic underfunding. After strong results of 85.1% in 1991 to 96.8% in 2000, net enrollment rates at the elementary level, for instance, had fallen to 84.4% by 2005. At the same time, elementary school dropout rates had dropped back to levels last seen in the late 1990s. The completion rate in elementary school was estimated to be below 70% in 2005.

The problems persisted even at the secondary level of education, with net enrollment rate in 2005 dropping down to 58.5% after increasing from 55.4% to around 66% between 1991 and 2000. Even the country’s youth literacy rate, while still being high by regional standards, fell from 96.6% in 1990 to 95.1% in 2003, making the Philippines the only country in Southeast Asia with declining youth literacy rates in the early 21^st century.

The World Education News & Reviews (WENR), run by the World Education Services, a not-for-profit organization specializing in the evaluation of foreign academic credentials, found that the deficiencies in Filipino education were reflected in the poor performance of students in international assessment tests, such as the Trends in International Mathematics and Science Study.

“In 2003, the last year the Philippines participated in the study, the country ranked only 34^th out of 38 countries in high school Mathematics and 43^rd out of 46 countries in high school Science,” WENR wrote.

“Education spending as a percentage of overall government expenditures, meanwhile, declined from 18.2% in 1998 to 12.4% in 2005. Between 2003 and 2005 alone, average annual spending per public elementary and secondary school student fell from P9,500 (US$182.7) to P8,700 (US$167.3) in real terms.”

Since then, the government has made massive commitments to make structural changes to the country’s education system in an effort to make the Filipinos more globally competitive. The opportunities in the then-burgeoning BPO sector were starting to become clear, and human capital had become the country’s most important asset.

Education spending was increased, and between 2005 and 2014, government spending on basic education more than doubled. According to data from the World Bank, spending per student in the basic education system reached P12,800 (US$246) in 2013, far above what was recorded in 2005.

In 2017, allocations for the Department of Education were increased by 25%, making education the largest item on the national budget. In 2018, allocations for education reached P533.31 billion (US$10.26 billion), or 24% of all government expenditures — the second largest item on the national budget. The higher education budget, likewise, was increased by almost 45% between 2016 and 2017. Meanwhile, 86,478 classrooms were constructed, and over 128,000 new teachers hired between 2010 and 2015.

WENR noted that such investments in education have led to substantial advances in standard indicators of learning conditions, such as student-teacher and student-classroom ratios, both of which improved significantly from 2010 to 2013, from 38:1 to 29:1 and from 64:1 to 47:1, respectively. Elementary school completion rates also climbed from the 2005 low of under 70% to more than 83% in 2015. Net secondary school enrollment rates, meanwhile, increased from under 60% in 2005 to 68.15% in 2015.

However, the Philippines still trails its neighbors in the ASEAN in a variety of education indicators.

“Strong disparities continue to exist between regions and socioeconomic classes — while 81% of eligible children from the wealthiest 20% of households attended high school in 2013, only 53% of children from the poorest 20% of households did the same. Progress on some indicators is sluggish, if not regressing: completion rates at the secondary level, for example, declined from 75% in 2010 to 74% in 2015, after improving in the years between,” WENR reported.

“Importantly, the Philippine government continues to spend less per student as a share of per-capita GDP than several other Southeast Asian countries, the latest budget increases notwithstanding. It also remains to be seen how the K to 12 reforms will affect indicators like teacher-to-student ratios.”

Data showed that in October 2015, it was estimated that the government still needed to hire 43,000 teachers and build 30,000 classrooms. This was worsened by the continued growth of the country’s birth rates, among the highest in Asia. The government expects the population to grow to 142 million people by 2045, and if the Philippines is to become a developed nation by then, a much more effective system of education is needed. — Bjorn Biel M. Beltran

Scholarships to help Filipinos earn a college degree

June 26, 2019 | 9:05 am

Education for many is the only way to escape from poverty. However, this is not the case for some Filipinos. Based on the 2017 Annual Poverty Indicators Survey of the Philippine Statistics Authority released in June last year, about 9% of the estimated 39.2 million Filipinos aged six to 24 years were out-of-school children and youth. The survey revealed that one of the most common reasons among these children and youth for not attending school was the high cost of education or financial concern.

Thankfully, there are many institutions and government agencies that give scholarships, student loans and other forms of financial aid to deserving Filipino students. These programs provide an opportunity for qualified students to earn a college degree and become a contributing member of the society later on.

The Department of Science and Technology (DoST), for instance, offers S&T Undergraduate Scholarships Program, with the aim of encouraging talented Filipino youths to pursue lifetime productive careers in science and technology.

There are two undergraduate scholarships under the said program: the Republic Act (R.A.) No. 7687, or the Science and Technology Scholarship Act of 1994; and the DoST-SEI Merit Scholarship Program, formerly known as the NSDB or NSTA Scholarship under R.A. No. 2067. The former is awarded to talented and deserving students whose families’ socioeconomic status does not exceed the set cut-off values of certain indicators, while the latter is given to students with high aptitude in Science and Mathematics and who are willing to pursue careers in the fields of science and technology.

To provide scholarships that will finance the education of talented and deserving students in their third year of college who are pursuing degree programs in the areas of science and technology, the DoST also introduced the Junior Level Science Scholarship (JLSS) Program.

Aside from R.A. 7687 and Merit scholarships, included under this program is R.A. 10612. It aims to strengthen the country’s science and technology education by fast-tracking graduates in the sciences, mathematics and engineering who shall teach science and mathematics in secondary schools across the country.

Both S&T Undergraduate Scholarships and JLSS Program of the DoST aim to ensure a steady, adequate supply of qualified science and technology human resources in the country who can steer national progress.

The Commission on Higher Education (CHEd) also offers Student Financial Assistance Programs (StuFAPs) to provide poor and deserving Filipinos with opportunities for quality higher education. The list of available StuFAPs includes the State Scholarship Program (SSP), where full and partial scholars can receive up to P30,000 and P15,000 in aid per academic year, respectively; and the Private Education Student Financial Assistance (PESFA), where recipients can receive up to P15,000 per academic year.

Meanwhile, aside from trainings and scholarships given to aspiring migrant workers, the Overseas Workers Welfare Administration (OWWA) also offers Education for Development Scholarship Program (EDSP). It is a scholarship grant offered to qualified beneficiaries or dependents of active OWWA members who intend to enroll in four- or five-year baccalaureate course in any college or university.

According to OWWA’s Web site, the recipient of EDSP can receive a financial assistance amounting to a maximum of P60,000 per school year.

Aside from scholarships being offered by the government institutions, Filipino students can also fund their college education with the help of various foundations and corporations in the country whose programs cover tuition fees and miscellaneous expenses, among others. — Mark Louis F. Ferrolino

Steps toward better education

June 26, 2019 | 9:00 am

In a bid to enhance the quality of and increase access to education in the Philippines, the Department of Education (DepEd) and the Commission on Higher Education (CHEd) — agencies tasked with the formulation and implementation of plans and policies relating to basic and higher education — have created a number of programs over the years.

Arguably the most significant reform DepEd has implemented this decade is the K to 12 program, which has extended the duration of basic education in the country.

“The Philippines is the last country in Asia and one of only three countries worldwide with a 10-year pre-university cycle (Angola and Djibouti are the other two),” the department says.

“A 12-year program is found to be the best period for learning under basic education. It is also the recognized standard for students and professionals globally,” it adds.

Now there’s senior high school (SHS), which consists of two grade levels, 11 and 12. It covers four tracks. One is the Academic Track, and it has four specific strands, namely accountancy, business and management (ABM); science, technology, engineering and mathematics (STEM); humanities and social science (HUMSS); and general academic (GA).

The second is the “Technical-Vocational-Livelihood” track. Like the first track, it has four strands: agri-fishery arts; home economics; information and communications technology; and industrial arts.

The third and fourth tracks are “Arts and Design” and “Sports.”

“SHS Students may pick a track based on how he or she will want to proceed after high school graduation,” DepEd says.

Among the senior high school core curriculum subjects are the following: general math; oral communication; media and information literacy; introduction to the philosophy of the human person; understanding culture, society and politics; and disaster readiness and risk reduction.

“Senior High School ‘completes’ basic education by making sure that the high school graduate is equipped for work, entrepreneurship, or higher education. This is a step up from the 10-year cycle where high school graduates still need further education (and expenses) to be ready for the world,” DepEd says.

In addition, the department says that while SHS may not guarantee that students who graduated from it will be employed, it offers several opportunities, including applying for TESDA Certificates of Competency and National Certificates.

The department has also been running an Alternative Learning System (ALS), which is “a parallel learning system in the Philippines that provides a practical option to the existing formal instruction.”

It aims to give Filipinos who, for reasons like destituteness, can neither attend nor finish school a chance to complete basic education in a way that fits their distinct needs and situations.

Basic Literacy Program and Continuing Education Program are the two initiatives under ALS that DepEd implements through the Bureau of Alternative Learning System.

“Both programs are modular and flexible. This means that learning can take place anytime and anyplace, depending on the convenience and availability of the learners,” the department says.

ALS non-formal education happens not in classrooms but in community learning centers, multipurpose halls and libraries. It is conducted by so-called ALS learning facilitators such as mobile teachers, district ALS coordinators and instructional managers instead of formal school teachers. Students and facilitators make an agreement about when and where they will meet.

CHEd, meanwhile, has a project called Faculty Development Program that seeks to improve the academic qualifications of the faculty members of higher educational institutions.

“The quality of education depends largely on the qualifications and competencies of the faculty. In view of the faculty’s vital role in influencing education outcomes, the Commission on Higher Education requires that teachers at higher education level must have at least master’s degree in the fields in which they teach. The Faculty Development Program is a critical factor towards building the strong foundation of an educational system to ensure quality education,” the agency explains.

Scholarship grants are provided to full-time faculty members with at least 12 units of teaching load in a public or private higher educational institution who will pursue degrees — a master’s degree with or without thesis, a PhD — and even continuing professional education in priority fields like natural sciences, humanities and communication, engineering, agriculture and marine sciences, and health and related programs.

CHEd has also implemented a Center of Excellence program. In Section 8 of Republic Act No. 7722, it is stated that the commission has this particular power and function: “identify, support and develop potential centers of excellence in program areas needed for the development of world-class scholarship, nation building and national development.”

“It aims to sustain/develop excellence of higher education institutions (HEIs) by enhancing their teaching, research and service programs to further nation building and national development,” CHEd says of the program.

The agency also runs a Center of Development program. It defines a center of development as “a department within a higher education institution which demonstrates the potential to become a Center of Excellence in the future.”

Firms more bullish, families bearish in Q2

June 26, 2019 | 12:32 am

BUSINESSES were on the whole more confident of prospects this quarter compared to the preceding three months as they expected improved demand — marking the second straight quarter of improvement — but households turned slightly more pessimistic in the same comparative periods in the face of rising prices, according to results of the central bank’s latest surveys on these two segments that were released to media on Tuesday.

BUSINESS BETTER
The Bangko Sentral ng Pilipinas’ (BSP) second-quarter Business Expectations Survey — conducted on April 1-May 28 among respondents representing 1,501 firms nationwide — showed that “[b]usiness outlook on the economy improved for the second consecutive quarter in Q2 2019, with the overall confidence index (CI) rising to 40.5% from 35.2% in Q1…”

Respondents were drawn from the Securities and Exchange Commission’s list of top 7,000 corporations in 2010 and BusinessWorld’s Top 1,000 Corporations in the Philippines for 2017, consisting of 590 firms in Metro Manila and 911 others in areas outside the National Capital Region, covering all regions.

A positive CI means that the number of optimists in the survey increased and continued to be greater than the number of pessimists during the quarter. The index is computed as the percentage of respondents that answered in the affirmative less the percentage of those who answered in the negative with respect to views on a given indicator.

In a press release summarizing survey results, the BSP noted that respondents cited as reasons for their improved sentiment: a seasonal uptick in demand during the dry months especially with an expected increase in local and foreign tourists, harvest period, upcoming school enrollment, election-related spending in the run-up to the May 13 legislative and local polls, sustained increase in orders and projects leading to higher volume of production, expansion of businesses and new product lines, as well as continued rollout of government infrastructure and development projects with the April 15 approval of the P3.662-trillion 2019 national budget.

“They were also optimistic that their business operations would benefit from the favorable macroeconomic conditions in the country, particularly the easing of inflation in 2019,” BSP said in its statement, noting that “[t]he sentiment of businesses in the Philippines mirrored the more positive business outlook in Canada, France, Greece, Hungary, Israel, and South Korea.”

Asked on their outlook for the “next quarter”, however, respondents became less optimistic, with the CI falling to 47.6% from 52% in the preceding survey on “expectations of interruption of business activities during the rainy season and stiffer competition.”

Among business segments, exporters turned out to be the most bullish for the current quarter due to improved availability of raw materials (e.g., coconut products); increase in demand for business process outsourcing services like information technology consulting and call centers; and easing inflation.

Importers and domestic market-oriented firms were generally more optimistic amid expectations of robust consumer demand and continued government spending.

Sentiment of service sector respondents was less upbeat — particularly in transport, real estate, as well as community and social services — amid concerns over the planned closure of provincial bus terminals along EDSA to ease traffic, limited operations of sea vessels due to scheduled drydocking, and a lean season for medical services as households prioritized enrollment expenses.

Construction was less upbeat — especially in the face of the four-month delay in national budget approval — “as they await implementation and payment of government infrastructure projects.”

Employment outlook for the “next quarter” remained positive although lower at 26% compared to the preceding survey’s 29.7%, suggesting that “more firms will continue to hire new employees, although the number of new hires may be lower compared to the previous quarter’s survey.”

The percentage of respondents who said their businesses will expand in the “next quarter” was slightly higher at 33.5% compared to 33.2% in the preceding survey.

Business respondents also expected financial conditions to remain tight but access to credit to be easy.

Survey results also showed that businesses expected the peso to appreciate, inflation to ease, but interest rates to increase for the current quarter, although they expect the peso to depreciate and inflation and interest rates to increase in the third quarter.

Business respondents also expected that the rate of increase of commodity prices will remain within but at the upper bound of the government’s 2-4% inflation target band for 2019, at 3.9% for the “current quarter” and four percent in the “next quarter” (from five percent and 4.9%, respectively, in the preceding survey).

Moreover, businesses expected that the peso to average P52.30 to the dollar this quarter and P52.40 next quarter.

HOUSEHOLDS
The picture was different for households, however, with the CI in the Consumer Expectations Survey (CES) baring a “marginal decline” to -1.3% for this quarter from -0.5% in the preceding survey.

This indicates that the pessimists continued to outnumber optimists, even as the margin — while increasing slightly — remained narrow from the preceding quarter.

The CI is computed as the percentage of households that answered in the affirmative less the percentage of households that answered in the negative with respect to their views on a given indicator.

The overall consumer CI measures the average direction of change in three indicators, namely: overall condition of the economy, household finances and household income.

The second-quarter CES was conducted on April 1-13 among 5,583 households nationwide.

Respondents attributed their slightly weakened outlook for the current quarter to their expectations of higher prices of goods and household expenses, poor health and high medical expenses, as well as Metro Manila’s water crisis.

Partly offsetting negative sentiment were expectations of improved law and order, additional income, availability of more jobs, good governance, and additional working family members.

For the “next quarter” and the year ahead, consumer confidence was less optimistic as the CI declined to 9.7% from 10.7% in the preceding survey for the “next quarter”, and to 25.2% from 28.4% for the next 12 months.

“Respondents’ less upbeat sentiment for the next quarter and the year ahead stemmed from households’ concerns about higher prices of goods, as well as expectations on the increase in household and educational expenses with the start of school opening for the school year 2019-2020,” the BSP said in its statement.

Household respondents’ spending outlook for the next quarter for basic goods and services declined to 32.7% from 39.6% in the preceding survey, suggesting “that while more respondents continue to expect higher spending on basic goods and services, the number that said so decreased compared to a quarter ago, indicating that growth in consumer spending may slow for the next three months.”

“Fewer respondents expected higher spending on electricity, food, non-alcoholic and alcoholic beverages and tobacco, water, fuel, transportation, personal care and effects, medical care, communication, clothing and footwear, restaurants and cafes, and house rent and furnishing,” the statement read, while spending outlook steadied for education, recreation and culture.

The percentage of households that considered the current quarter as a good time to buy big-ticket items — particularly real properties, consumer durables and motor vehicles — rose to 29.6% from 26.5%.

Spending outlook for the next 12 months remained positive and was “broadly steady” — especially for consumer durables and real properties — while and “more buoyant outlook” was noted for motor vehicles.

Latest survey results also showed that households expected inflation, interest and unemployment rates to increase and the peso to depreciate in the next 12 months.

NG posts third budget surplus, though smallest year to date

June 26, 2019 | 12:31 am

THE NATIONAL GOVERNMENT (NG) posted its third budget surplus for this year in May, as revenues outpaced spending, but it was the smallest surfeit so far, according to official data the Bureau of the Treasury released on Tuesday.

The fiscal balance logged a surplus for the second straight month at P2.6 billion in May — smaller than the surfeits of P86.9 billion in April and January’s P44.5 billion — but still turning around from a P32.9-billion deficit a year ago.

May saw revenues grow 22.5% to P317.2 billion from P259 billion a year ago, as collections of the Bureau of Internal Revenue (BIR) grew 19.1% to P204.8 billion from P172 billion and those of the Bureau of Customs increased by 10.3% to P58.2 billion from P52.7 billion. Non-tax revenues — consisting mainly of subsidies to cover taxes on government transactions — surged by 61.3% to P51.8 billion from P32.1 billion.

The government spent 7.8% more at P314.7 billion in May from P291.9 billion a year ago, with interest payments falling 6.8% to P19.7 billion from P21.1 billion and “others” — a category that includes infrastructure and other capital outlays — rising nine percent to P291 billion from P270.8 billion with “implementation of the last tranche of salary increase of government personnel, release of mid-year bonus and the execution of new programs” after the approval in mid-April of the P3.662-trillion national budget.

May cut the year-to-date fiscal deficit by 99.4% to P809 million from P138.7 billion in 2018’s first five months, as revenues grew 10.7% to P1.314 trillion from P1.186 trillion, while the government spent 0.8% less at P1.315 trillion from P1.325 trillion.

This year’s first five months saw the BIR collect 9.8% more at P908.5 billion from P827.7 billion a year ago and the Customs bureau rake in 9.8% more at P251.7 billion from P229.3 billion. Non-tax revenues grew 19.6% to P143.3 billion from P119.8 billion.

In terms of year-to-date expenditures, state interest payments increased by 6.7% to P151 billion from 141.4 billion “reflecting interest on new debt incurred to finance” 2018’s P558.3-billion deficit, while “others” slipped by 1.7% to P1.164 trillion from P1.184 trillion.

Sought for comment, Nicholas Antonio T. Mapa, senior economist of ING Bank Manila, said: “With government spending curtailed for the most part of the current quarter, the government is scrambling to implement ‘catch up’ spending for the second half of the year.”

“The month of May has been a deficit month for the last three years, with the economy getting a nice boost from the government to complement mainstay household consumption.”

Michael L. Ricafort, head of economics research division of Rizal Commercial Banking Corp., noted that the latest data “reflect improved fiscal performance which is a positive factor for the country’s credit fundamentals and overall credit ratings.”

“Government spending already grew at a faster pace in May 2019 by 7.8% year-on-year (would have been faster had it not been for the election ban on some government spending especially on infrastructure) to P314.7 billion after 15% decline year-on-year in the previous month due to the re-enacted budget, may already reflect the approval of the 2019 national budget on April 15, 2019,” he said.

“Thus, faster growth in government spending may already have a more positive impact on the country’s economic growth in 2Q 2019.” — R. J. N. Ignacio

Global survey finds PHL millennials less optimistic compared to previous years

June 26, 2019 | 12:30 am

FILIPINO MILLENNIAL’s confidence in the country’s economic and socio-political situation has declined, according to survey results reported on Tuesday by NavarroAmper & Co., the Philippine management consultancy that forms part of the global Deloitte network. Read the full story.

Filipino millennials’ optimism eroded

June 26, 2019 | 12:30 am

By Charmaine A. Tadalan
Reporter

The global survey covered 13,416 millennials in 42 countries — including 301 in the Philippines — born between January 1983 and December 1994.

The results, summarized in a press release, showed that 48% of Filipino respondents expect economic prospects to improve in the next 12 months, “significantly down from 78% last year.”

About 41% expect socio-political conditions to improve in the same period, also “significantly down” from 68% last year.

Still, Filipino millennials were generally more optimistic than many of their peers, as, globally, less than a third expected their economies and socio-political situations to improve.

The survey bared millennials’ wariness towards traditional institutions — e.g., political leaders, religious leaders, social media platforms, business leaders, traditional media and leaders of nongovernment organizations (NGO).

About 58% of the Filipino respondents said NGO leaders have a positive impact, although only 28% said this segment is “a reliable source of information.”

Political leaders fared the worst, the statement read, noting that only 16% of Filipino respondents regarded this segment as an accurate source of information, while 36% believe they have positive impact.

About 22% trusted traditional media and 21% regarded social media as sources of reliable information, although 48% believed social media have a positive impact, compared to 38% for traditional media.

“It’s a cause for concern when we see young people reporting that they have little trust in organizations and institutions they’re supposed to look up to as leaders,” Deloitte Philippines Managing Partner and chief executive officer Eric Landicho was quoted as saying in the statement.

About 76% of Filipino respondents said businesses have a positive impact on society, down from 93% last year. Globally, 55% said businesses benefit society.

“For our part as business leaders, we have the responsibility to understand what is fueling this distrust or wariness, and then to take appropriate steps to mitigate or address it,” Mr. Landicho said.

Sought for comment, National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon said in a mobile phone message: “Of course, it is a concern.”

“Note that these are subjective assessments, hence we need to know the factors that led to this response, apart from the cultural context,” Ms. Edillon said, noting that NEDA has just completed its own national values survey and will need to “look at the report” of Deloitte.

Sought separately for comment, Michael L. Ricafort, economist at Rizal Commercial Banking Corp., said in an e-mail that “the survey results may reflect the aftermath and some spillover of the effects of higher inflation and higher interest rates, especially in the latter part of 2018 up to early 2019, that resulted in lower purchasing power, thereby reflecting lower confidence in both economic and political outlook”, while UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said via separate e-mail that “this ‘distrust’ of economic and political institutions by Filipino millennials can be viewed as an awakening of sorts” as “some realities of life are probably beginning to bite.”

Regulator tweaks guidelines on corporate names

June 26, 2019 | 12:08 am

By Arra B. Francia, Senior Reporter

THE Securities and Exchange Commission (SEC) has revised the guidelines on corporate names to reflect changes in the Revised Corporation Code, particularly on the formation of one person corporations (OPC).

In a notice posted on its website, the SEC said Memorandum Circular No. 13 Series of 2019 covers the amended guidelines and procedures on the use of corporate and partnership names.

“To keep abreast with developments in business and information technology in the country, the commission is adopting the following guidelines and procedures in the registration of corporate, one person corporate, and partnership names,” according to the memorandum.

For the first item, the commission added a provision requiring OPCs to add the word “OPC” either below or at the end of its corporate name.

The memorandum also states that the stockholder of an OPC may use his/her name for the name of the company, provided that this will be accompanied with descriptive words aside from the suffix OPC.

“The single stockholder may also use the name of another person provided consent was given by the said person or if deceased, his estate. Provided that the name shall be accompanied by the descriptive words other than the suffix OPC.”

This is in line with Section 10 of the Revised Corporation Code or Republic Act No. 11232, which took effect on Feb. 23, stating that a corporation may consist of a single stockholder.

The commission also revised how companies may use names of corporations whose registrations have already been revoked. The new guideline allows companies to use the name of a corporation whose registration was canceled five years after its dissolution, as opposed to the previous rule that only allowed such event for “meritorious cases as determined by the Commission en banc.”

“The name of a corporation or partnership that has been dissolved or whose registration has been revoked shall not be used by another corporation or partnership within five years from the approval of dissolution or five years from the date of revocation, unless its use has been allowed at the time of the dissolution or revocation…”

It also removed the old rule that allowed only expired corporations to apply for re-registration using the same corporate name.

The commission further noted that a corporate or partnership name that has previously been used shall not be re-registered or used by another corporation or partnership for a period of three years from the date of the approval of the adoption of the new name.

Companies, however, may shorten this time frame by securing the consent of the company that previously held the corporate or partnership name. The consent should come in the form of a director’s or trustee’s certificate approved by majority of the directors or trustees of previous company.

For a partnership, majority of the partners must approve a resolution allowing the use of the name.

Cathay Dragon looks to increase HK-Davao flights

June 26, 2019 | 12:07 am

DAVAO CITY — Cathay Dragon, which currently serves the Davao-Hong Kong (HK) route four times a week, is looking at an increase to daily flights, noting the good load factor since its launch in October 2018.

Robin Bradshaw, country manager of the airline’s parent company Cathay Pacific, said the load factor can go as high as 85%.

“My big ambition is to get that (number of flights) to daily as quickly as possible,” said Mr. Bradshaw at the Davao Investment Conference (ICon) last week.

Flights, using an Airbus 320, is already being planned for an increase to five times a week as the Christmas season approaches, he added.

Mr. Bradshaw noted that Cathay Dragon’s Hong Kong-Davao performance “does not happen normally as it will take you two to three years (to achieve that load factor with a new route).”

He said there is potential for an even bigger passenger market, particularly tourists, but Davao Region has to become more competitive as a destination through better infrastructure and facilities.

He said the government and the private sector must work together not only to enhance facilities, but also to promote the region as a tourist destination.

“We have a job to do about teaching, about educating (travelers),” he said.

Aside from those traveling from and to Hong Kong, Mr. Bradshaw said the route has also been serving passengers connecting to and from North America, Australia, Japan, and even Europe.

“We encourage our Japanese businessmen and tourists to come to Davao through Hong Kong,” he added, as he made the call to about 50 Japanese investors who were attending the conference.

JAPAN FLIGHTS
Meanwhile, Japanese investors in the city have joined local business groups in pushing for airline companies to service the Davao-Tokyo route.

Japanese Chamber of Commerce-Mindanao Vice-President Takeyoshi Sumikawa said they have written to Philippine Airlines suggesting to tap the Narita airport because it is less congested than Haneda airport.

“We want to have that (as) first priority for Philippine Airlines,” said Mr. Sumikawa.

He noted that some Japanese agencies sent representatives to the Davao ICon, such as the Japan National Tourist Organization which opened an office in Makati City last week.

Ichido Miyake, the chamber’s president, said more promotional activities among Japanese tourists and investors are needed to counter such impressions as a “dangerous” Mindanao and “rural” Davao.

“Most of the Japanese delegates… thought that Mindanao and Davao (are) still dangerous,” said Mr. Miyake.

He added that among the feedback they got from the Japanese participants was that many “were surprised to see the developments in the city” as they thought it was still a largely rural area. — Carmelito Q. Francisco

SEC issues warning vs ‘Good Samaritan Riders’ group

June 26, 2019 | 12:06 am

THE Securities and Exchange Commission (SEC) has warned the public against investing in Tagbilaran-based group The Philippines Good Samaritan Riders Association, Inc, (TPGSRA) since it has no authority to do so.

In an advisory posted on its website, the commission said it found that TPGSRA was soliciting investments from the public under the guise of donations. While the group is registered as a corporation with the SEC, it does not have a secondary license for the issuance of investments or securities.

The group, which also goes by the name of The Good Samaritan Riders Club, has reportedly been enticing the public to donate P8,000 to the association. The funds are said to be used to sponsor someone in need of a motorcycle.

A person must then look for two such sponsors so he or she can receive P5,000 in financial assistance which can be used as downpayment for a new motorcycle. TPGSRA will then pay the motorcycle’s monthly dues worth P3,000 for the next two months. It will continue paying for the motorcycle for the next 36 months depending on the number of donors it attracts.

“Such activities require a Secondary License from the Commission and the securities or investment product should likewise be registered with SEC before they can be offered or sold to the public under Sections 8 and 12 of the Securities Regulation Code (SRC),” the commission said.

Those found to be soliciting investments or recruiting more members into the group may be held criminally liable and penalized with a fine of up to P5 million and imprisonment of up to 21 years, as per the SRC.

In response to the advisory, TPGSRA said in a statement on its Facebook page that it has temporarily suspended operations to comply with the SEC rules.

“The association decided to temporarily suspend its operation effective immediately. All coordinators and sub-coordinators are hereby ordered to stop any activity that would contradict with the SEC advisory. Operations will resume as soon as the appropriate license and other legal requirements are fully complied with,” the group said.

The SEC has been conducting a crackdown on investment scams recently. Earlier this month, it filed a criminal case against alleged scam Kapa-Community Ministry International, Inc. and its officers before the Department of Justice.

Like TPGSRA, Kapa was also inviting the public to invest in the form of donations. A person may invest anywhere from P10,000 to P2 million in exchange for a 30% monthly “blessing” or “love gift for life.”

The commission earlier said it has already secured P100 million in assets linked to the religious organization through a freeze order issued by the Court of Appeals. — Arra B. Francia

IDC forms unit for Mindanao

June 26, 2019 | 12:05 am

ITALPINAS Development Corp. (IDC) will establish a new subsidiary in Mindanao in an effort to boost its operations in the area.

In a disclosure to the stock exchange on Tuesday, the listed property developer said its board of directors has approved the creation of a new wholly owned unit. It has delegated the determination of the terms of the new firm to the company’s management.

“The company intends to set up a subsidiary in relation to operations in Mindanao, in order to streamline operations in that region,” the company said.

IDC is currently constructing a high-rise, eco-friendly building in Cagayan de Oro called Primavera City. The project consists of four phases, namely Citta Verde, Citta Bella, Citta Grande, and Citta Alta, according to its website.

Its other project is located in Sto. Tomas, Batangas called Miramonti, which is also a mixed-use and eco-friendly development.

Earlier this month, IDC said it looks to raise P650 million from the issuance of 43.33 million preferred shares to the public at 15 each. This forms part of the company’s plan to spend P2-3 billion this year to finance its expansion in the country.

Incorporated in 2009, IDC is listed on the small, medium, and emerging board of the stock exchange.

IDC’s net income attributable to the parent almost doubled to P9.26 million in the first quarter of 2019, versus the P4.22 million it posted in the same period a year ago. This came after a 47% uptick in gross revenues to P107.55 million.

Shares in IDC fell 1.41% or seven centavos to close at P4.90 each at the stock exchange on Tuesday. — Arra B. Francia

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