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Taiwanese businessmen plan to relocate to the Philippines

Roy — Fri, 06 May 2011 08:51:26 +0000

Taiwanese businessmen are seriously considering relocating their manufacturing facilities to the Philippines from mainland China. The Manila Economic Cultural Office (MECO) said the decision was made by the Taiwan diplomatic row with the Philippines following their frustrations from the stringent labor requirements in China.

The Taiwanese businesses are engaged in industrial plastics manufacturing with estimated investments of at least $120 million, according to MECO chairman Amadeo R. Perez Jr. He said they are considering relocating their factories from China to Subic and Clark Freeport zones for their export-oriented investments.

Perez said that four plastic products manufacturers have already visited Subic and Clark and another will be coming over to visit Batangas and Clark. One company engaged in bed frames and mattresses production is eyeing a warehouse in Clark which it can is suitable and can be converted for its business. “One project alone can command at least $20 million in investments,” Perez said. For the six projects that would translate to an estimated $120 million worth of prospective investments.

The bed frame and mattresses manufacturer is exporting its products to the EU, Asia and the US while the plastic products manufacturers are producing industrial products which are used for packaging applications and are exporting them all over the world.

Perez added that some of the Taiwanese have already gone to Vietnam and Indonesia because those countries are not very choosy due to their high unemployment rate. He said Taiwanese investors in mainland China have been turned off by policy changes in the labor sector.

MECO is implementing a major campaign to attract more Taiwanese investors into the Philippines, following the successful resolution of the bilateral issue early this year. However, Perez said the country’s only problem is the high cost of electricity, and Vietnam and Indonesia could beat the Philippines on that factor.

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Trans-Asia stock rights offer approved by PSE

Roy — Sat, 30 Apr 2011 06:19:03 +0000

The Trans-Asia Oil and Energy Development Corp.’s plan to raise fresh fund for power generation via stock rights offer was approved by the Philippine Stock Exchange (PSE).

The Phinma-led company got the nod from PSE when the latter posted a memorandum on Friday saying that its board has approved the listing of 1.16billion additional common shares to be issued by Trans-Asia to cover an equity offering to all shareholders. Each eligible shareholder is entitled to subscribe to seven right shares for every 10 existing shares held as of record date of May 18.

The offer price of P1 per share represents a discount of 21.9 percent on the market price of Trans-Asia as of March 21, which was the date the stock rights offer was approved by the board of Trans-Asia.

The net proceeds from the stock rights offer, based on the memorandum, would be used to partly finance Trans-Asia’s equity investment in the planned 135-megawatt clean coal plant in Calaca, Batangas and its investment in Maibarara geothermal power plant.

Trans-Asia tapped on the services of ATR KimEng Capital Partner Inc. to be the underwriter of the stock rights offering which would run from May 30 to June 3 this year.

The Phinma group, which is composed of Philippine Investments Management Inc. and Phinma Corp., the principal stockholders of Trans-Asia, pledged to subscribe to any shares not taken up by other eligible shareholders.

Trans-Asia was originally into petroleum exploration, and later diversified to other industries like cement manufacturing, coal trading and power generation. This year, the company expects to generate a net profit of P482.23 million, which is a considerable increase from the P14.74 million it posted a year ago. Revenue is projected to rise to P1.7 billion from P894 million in 2010.

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Philippine tuna company acquires US salmon company

Roy — Thu, 28 Apr 2011 13:51:25 +0000

Philippine company Alliance Select Food International Inc. sealed a deal to acquire 100 percent of US company Spence & Co. Ltd., a Massachusetts-based salmon smoking and curing company who specializes in the production of smoked salmon and seafood, prepared in the Scottish tradition of its founder Alan Spence. The company caters to the high-end market in the USA and Europe.

The Alliance, in its disclosure to the Philippine Stock Exchange (PSE), said it had signed an agreement to acquired the US fish company lock, stock and barrel through subsidiary ASFI Choice Foods Inc. for $8.5 million.

Alliance spokesperson Rajat Balain said, “An investment in Spence is another step towards Alliance’s goal of diversifying its product line to enhance shareholder value and ensure future profitability. This will be Alliance’s third smoked salmon venture, making it the largest salmon processor in the region, and will help it establish a beachhead in the lucrative seafood market in the US.”

To partly finance the acquisition of Spence, Alliance will be conducting a stock rights offering. The company already gave the approval for the said offering. The PSE suspended trading of Alliance starting 9 a.m. Tuesday pending the submission of additional disclosure pertinent details on the transaction.

Alliance started commercial operations in General Santos City in Mindanao in 2004, it was formerly known as Alliance Tuna International and engages in tuna processing, canning and export of canned tuna products. It exports to Europe, North America, Asia, Africa and South America as a “private label manufacture,” which means it processes and cans tuna using its customer’s brands.

Part of its overseas expansion in recent years is the company’s aspirations to become a regional food company with a “decidedly Filipino DNA.” Alliance is always on the lookout for opportunities in regional seafood companies with high margins and high-value products.

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Ayala’s HRMall acquires US BPO firm

Roy — Tue, 19 Apr 2011 14:21:34 +0000

HRMall Inc., a business process outsourcing (BPO) firm backed by the Ayala group, has acquired IQ BackOffice LLC. Based in Los Angeles, California, IQ BackOffice provides backroom finance and accounting services to mid-sized companies in the United State. It delivers high quality, software-enabled and real-time finance and accounting BPO services to US companies.

HRMall is one of the investing companies of the Ayala group’s BPO holding firm LiveIt Investments Ltd. it provides IT-enabled human resource services out of Manila. The firm entered into a definitive agreement to acquire IQ BackOffice. The combined value of the two companies is estimated at $15 million.

IQ BackOffice employs over 200 people in the United States and India. Its clients are US firms with annual revenues of $50 million to $1 billion. Some of its clients generate revenues up to $10 billion. The company has more than 30 public and private company clients, including restaurants, manufactures and distributors, hotels, entertainment establishments, property and financial firms.

As part of the deal between IQ BackOffice and HRMall, founder and chief executive officer David Schnitt of IQ BackOffice will get a 17.5-percent ownership interest in HRMall. Schnitt will be appointed CEO of HRMall.

The 82.5-percent interest of HRMall will be owned by LiveIt which has vowed to support a strategy to fast-track growth in existing markets in the United States and Asia. With the said, HRMall will be in a better position to help enterprises slash costs by 30 to 50 percent a year.

All stockholders of both firms, HRMall and IQ BackOffice, have already approved and signed the sale and purchase documents. The transaction though is subject to customary closing conditions and is expected to be sealed by April 30.

As part of the deal, the company will operate as HRMall in Asia and IQ BackOffice in the United States. It will employ a total of over 300 workers out of centers in Manila, Chennai, Mumbai and Los Angeles.

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New aviation firm to invest in Clark airport

Roy — Thu, 07 Apr 2011 13:56:45 +0000

Another major aviation firm is going to invest in the Clark Freeport Zone. Metrojet, a leading business aviation firm in Asia is earmarking $40 million for maintenance, repair and overhaul of facility in Clark. Executive Secretary Paquito Ochoa Jr. said Metrojet will set up the facility in a three-hectare property inside the Clark Airport Complex in Pampanga.

The entry of Metrojet, which owns a fleet of 26 aircraft of various types and capacities, sends a strong signal to the international community that the Philippines is ready to play a central role in the global aviation industry. “The president has announced that the country is open for business, and the decision of Metrojet to set up a shop in Clark is proof that foreign investors are listening,” Ochoa said.

Metrojet is a part of Kadoorie Group which owns China Lights and Power Company and the Peninsula Hotel Chain. It is scheduled to begin construction of the project in June and will start its operations in Clark by the end of 2011.

The services to be offered by the aviation firm ranges from aircraft charter, comprehensive aircraft management, maintenance, co-ownership programs, aircraft acquisition and sales. Metrojet’s proposed heavy maintenance for Clark will also include avionics upgrade and exterior paint work for aircraft.

Presidential Communications Development and Strategic Planning Office (PCDSPO) secretary Ramon Carandang credited the efforts of the government “to improve aviation, to remove many of the restrictions on foreign carriers, to address the technical and safety issues raised by the FAA and the European aviation actions to ensure that it becomes a viable place for investments.” He added, “That investment by Metrojet is another sign that people are ready and willing to invest in Philippine aviation, even if we’re still in the process of improving the situation.”

Carandang said that Executive Order 29, or the open skies policy could be on the factors that might have motivated Metrojet’s decision. “I think the business community sees that our efforts are serious. I would say that that’s the kind of a vote of confidence for the efforts that we’re undertaking,” he said.

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Geneva Cruz strips anew for PETA

Roy — Wed, 06 Apr 2011 14:30:48 +0000

Filipina singer and actress Geneva Cruz once again has gone naked for a cause. Cruz went nude in the latest ad campaign of the People for the Ethical Treatment of Animals (PETA) Asia dubbed, “Go Natural, Go Vegan.”

In the latest ad, Cruz was stripped in her birthday suit and was only clutching an armful of tomatoes to cover her bosom in her bid to catch the public’s attention to stop eating meat.

Cruz, who stopped eating meat at the age of 15, said “For me, being vegan is not about the diet. It’s really about my love for all creatures. In addition to saving countless animals every year, the health benefits of a vegan diet are countless, whereas the consumption of animal-derived foods has been linked not only to heart disease and cancer but also multiple sclerosis and osteoporosis.”

In the latest ad, shot by renowned photographer Niccolo Cosme, PETA once again hit at the meat industry. The group said the industry employs “immeasurable cruelty” to animals raised and killed for meat, dairy products and eggs, adding that meat and dairy production can take a toll on a person’s health as well as on the environment.

“Animal grazing has been responsible for loss of topsoil and eventual desertification in many parts of the world. The animals destroy the land’s protective vegetation. Then wind removes the soil and converts formerly productive rangeland into desert. Forest lands in China and South America are being destroyed to clear space for grazing or to grow food for farmed animals,” PETA said.

Cruz said she became vegetarian after shooting a shampoo commercial in Palawan years ago. She recalled, “All the animals were just roaming free. All I had to do was feed one of them and say, ‘Natural!’ We kept doing that, take after take… I couldn’t support the meat industry anymore. Not after that.”

The singer-actress was also declared as the Philippines’ Sexiest Vegetarian in 2009. Other local famous vegans are Chin-chin Gutierrez, Yasmien Kurdi, and Alicia Mayer.

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New mutual fund unit from Philam group

Roy — Mon, 28 Mar 2011 02:36:24 +0000

The Pami Asia Balanced Fund, the fund management unit of the Philam group, has been given license by the Securities and Exchange Commission to operate as an open-end investment company and to register its entire authorized capital stock consisting of eight million common shares at a par value of P0.45 each. The new mutual fund will invest in a mix of bonds and stocks across Asian emerging markets.

Gina Goco-Morales, the executive vice president of Philam Asset Management Inc. said, “It’s a new fund. Pami Asia Balanced Fund invests 50 percent in Asian equities and 50 percent in Asian fixed income.”

The seed capital for the new fund was provided by Pami. It is also the investment manager and principal distributor of the said new fund. In their documents submitted, Pami will be entering into a sub-management agreement with Amundi Singapore Ltd., which a specialist in global asset management. The new local mutual fund will seek to ensure long-terms growth of the invested funds. This it will do by tapping into the growth potential of Asia. The new investment fund is meant for investors who are looking for “moderate” risk investments. “The fund is positioned as an alternative to other mutual funds and balanced funds that are invested in Philippine securities,” according to the regulatory filing.

The fund’s aim is to provide investors with income and long-term capital appreciation through investment in equities, equity-related securities and debt securities of issuers across Asia-Pacific outside of Japan. The fund specifically aims to cover issuers across China, Hong Kong, India, Indonesia, Korea, Australia, Malaysia, New Zealand, Thailand, Taiwan, Singapore and the Philippines.

The offering price is the net asset value per share plus an entry fee or sales load together with applicable taxes. Minimum investment is $5,000 and additional purchase is possible for at least $1,000

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Trans-Asia signed supplier deal with SEM-Calaca Power plant

Roy — Thu, 24 Mar 2011 06:27:48 +0000

Trans-Asia Oil and Energy Development Corp., a publicly listed firm, recently signed a contract with SEM-Calaca Power Corp. for the purchase of Trans-Asia of power generated from the Consunji-led Calaca Power Corp. Trans-Asia, in its disclosure submitted to the Philippine Stock Exchange (PSE) said it signed on Wednesday the contract “to purchase generated energy,” which will be valid for three years.

Trans-Asia President Francisco L. Viray said the company was buying the generated output as a retail electricity supplier (RES). He did not indicate though, how much of the plant’s output The company would buy from SEM-Calaca. Earlier, Trans-Asia was awarded a RES license by the Energy Regulatory Commission (ERC)

ERC chairperson Zenaida Ducut said that a RES license holder like Trans-Asia will be able to actively participate in the electricity market once open access and retail competition are put in place. Under an open access environment, large power users will have the option to choose their own power suppliers. Under the status quo, power users, whether big or small, are limited to the suppliers with jurisdiction over their areas.

SEM-Calaca Corpopration, is company formed by DMCI Holdings and Semirara Mining Corporation to Handle the Calaca coal facility, which was previously owned by the government through National Power Corp. The investment of SEM-Calaca in the Batangas coal facility was earlier estimated at $483.6 million which includes the acquisition cost of $361.7 million. The remaining $121.89 million will go to the rehabilitation and working capital requirement of the said power plant.

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PSE to launch Maharlika Board by September 2011

Roy — Wed, 23 Mar 2011 18:54:46 +0000

“Maharlika Board” or a separate trading board for the Philippines companies that comply with high governance standards is being planned by the Philippine Stock Exchange (PSE). If plans push through, the “Maharlika Board,” which will be the first of its kind in Asia, will start on September this year. It is part of the government’s program to promote the Philippines as a prime investment destination.

PSE’s corporate governance head Argel Astudillo said, “This board will only include listed companies that achieve the highest standard of corporate governance.” Companies, however, will have to increase their public floats to as much as 30 percent to be included in the Maharlika Board, he added. In addition to that, they will also be required to have at least seven independent directors. Three of these directors must be independent, who will be voted by minority investors.

Aside from the prestige of being included in the “exclusive” trading board, companies that will be listed in the Maharlika Board will receive discounts on listing and maintenance fees paid to the PSE. Astudillo also said that tax perks and other financial incentives may also be given to them.

“We are looking at a public launch of the Maharlika Board in September this year,” Astudillo said. “By the time we launch it, we may or may not have companies listed… but we hope have received indications,” he added.

The Maharlika Board, according to Astudillo, will be loosely patterned after Brazil’s “Nove Mercado,” a board for that country’s most transparent listed firms. He noted a report based on foreign studies that showed investors value companies promoting good corporate governance higher by 20 to 25 percent compared to other firms.

“We want to rebrand our country to show the world that we are serious about focusing on good corporate governance,” Astudillo said. He said the country’s negative image as an investment destination has burdened Philippine financial markets. Controversies such as the 1999 stock manipulation case and insider trading involving listed firm BW resources were among those Astudillo cited.

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ABI sends bottled water to Japan

Roy — Wed, 23 Mar 2011 06:46:29 +0000

The Asia Brewery, Inc. (ABI) donated 70,000 bottles of distilled water which were flown in by the Philippine Airlines (PAL) to Tokyo, Japan yesterday. This signals the start of PAL’s shipment of relief goods for the earthquake and tsunami victims in that country.

ABI sent Absolute bottled water having a total weight of 27 tons. They were loaded into the cargo hold of PAL’s flight PR432 which leaves Manila every afternoon for Narita airport, Tokyo. This is the first tranche of the total 700,000 bottles donated by ABI to the Tokyo Metropolitan Government. ABI VP-Marketing Hubert Tan supervised the cargo loading with PAL Foundation Executive Director Ma. Carmen Sarmiento.

Tan said, “We are sending drinking water to Japan, in partnership with PAL, to show our solidarity and concern for the victims of the tragedy.” He said this is in compliance with the instruction of his uncle, PAL chairman Dr. Lucio Tan, who ordered the immediate shipment of potable water for Japan’s earthquake and tsunami victims.

The bottled water will be received in Tokyo by Barazel Salazar, PAL’s country manager in Japan, in behalf of the Tokyo Metropolitan Government. The Tokyo Metropolitan Government will handle the distribution of the distilled waters to the calamity-stricken areas in Northern Japan.

The local flag carrier announced earlier that it is accepting disaster relief supplies to be transported to Japan for free, subject to apace-availability, on any of its regular flights to there. Priority items to be accepted are medicines, flashlights , water purification tablets, heavy-duty pocket knives, waterproof lightweight tents, sleeping mats and folding camp stoves, sans the LPG or flammable material. They also accept compact high-nutrition-value food items, lightweight thermal blankets, windbreakers, sweaters and thick socks in good condition, and others.

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GMA network declares P0.45 per share cash dividends

Roy — Mon, 14 Mar 2011 06:47:02 +0000

Broadcast media giant GMA Network Inc. has approved the declaration of P2.187 billion cash dividends, or P0.45 per share. In its disclosure to the Philippine Stock Exchange, the network giant said the record date for the cash dividend is on April 8, and the payment date is on May 5. The declaration of cash dividend after GMA announced its net earnings last year to reach P2.82 billion, missing its target of P3.0 billion, amid a challenging environment.

The company’s revenue amounted to P14.299 billion, P500 million higher than the previous year. Its consolidated airtime revenues from all platforms rose four percent to P13.19 billion, brought about mostly by the political advertisement during last year’s election period, which amounted to P2.05 billion as against the P636 million recorded in previous year.

For its international and subsidiaries operations, revenues stood at P1.11 billion or an increase of three percent. GMA International registered subscription and advertising revenues of P925.37 million. This is eight percent higher than the network’s 2009 figure, coming from strong sales in the US, Canada, Middle East, North Africa, Asia Pacific and Europe.

Meanwhile, GMA Pinoy TV (GPTV) and GMA Life TV (GLTV), the company’s international channels, both recorded a double-digit growth in subscriptions by the end of December 2010. Channel 7, GMA’s flagship channel, still remains to be the network’s biggest earner, contributing P12.21 billion to the total company revenue, or a three percent increase from the year earlier level. Its GMA Radio revenue expanded 43 percent to P535.6 million.

GMA’s EBITDA (earnings before income taxes, depreciation, and amortization) was up four percent to P4.71 billion. For its 2011 prospects, GMA is looking forward to a more profitable 2011 with more than P7 billion worth of sales already booked as of December 2010.

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Growing Franchising Industry

PinoyBusiness — Thu, 23 Sep 2010 01:33:59 +0000

The Philippine franchising today is so strong in terms of income and investment. And even the global economic crisis didnt slow it down and now with the global economic crisis slowly going to recover the franchising industry has more and more investment to offer.

The Association of Filipino Franchisers Inc. (AFFI) even said that thier members have increase to 130 from 75 members in the first half of this year. And its members have expanded their outlets for more than a 5,000 outlets and it also created a more or less 30,000 jobs.

The main reason why the franchising in the Philippines is so strong today is because many filipino can afford to franchise even if you only have a not so big capital just to make sure that you have the right know-how because sustaining a business is not so easy at the start.

Some of the franchising corp. is targeting not only the Philipine market but also the asia and Us market as well.

The Association of Filipino Franchisers Inc. (AFFI) also said that even small business has now getting bigger and expanding thier outlets. So that is a good sign that anyone can be sucessful in this industry just make sure that the one your entering in is a legitimate one.

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Philippines expects 108 delegates for Phitex 2010

Roy — Mon, 30 Aug 2010 10:04:55 +0000

A total 108 delegates from wholesale travel agents from all over the world are coming to the Philippines for the upcoming 10th Philippine Travel Exchange (Phitex 2010) to forge deals with the different sectors of the local tourism industry.

Tourism Secretary Alberto A. Lim said that the delegates who will be coming in are large representations from outbound travel wholesales in China, Korea, Japan, Asia Pacific, North America, India, the Middle East and Europe. He said the Phitex 2010 is geared towards bringing in big volume of tourists from around the world.

“They will do business with 194 local sellers of tour packages, thus generating volumes of foreign visitors over the short and long term,” the tourism secretary said.

Phitex 2010 will be held on September 2 this year, at the Fiesta Pavilion of the Manila Hotel. The event is an industry-based and government-supported marketing initiative that aims to link foreign wholesale buyers and local sellers of tourism products and services in a full day of one-on-one business meetings, with each delegate being accorded a number of pre-scheduled appointments for table-top discussions.

Undersecretary for Tourism Planning and Promotions (TPP) Vicente R. Romano III said this will effectively make the foreign wholesalers themselves to “push the Philippine tourism brand in their respective countries through OTC (over-the-counter) or POS (point-of-sale) promotion and other agency-driven consumer marketing schemes.”

“At the same time, their participation in Phitex 2010 will guide the members of the local tourism industry in conducting product development based on market-specific demands, or the actual requirement of their target foreign clients,” he added. This will help local industry players to learn more about the present and future global market opportunities that they could take advantage of.

“All in all, Phitex 2010 will boost and guide our efforts in focusing on infrastructure and product development since this event covers both ends (supply and demand) of the market spectrum,” the undersecretary said.

The theme of this year’s Phitex is “Awesome Philippines, Awesome Sceneries, Awesome Activities, Awesome Experiences.” The event will be officially opened by Secretary Lim who will speak on the strategic direction of the country’s tourism development for the duration of his term.

To welcome the participants for this year’s Phitex, a welcome dinner will be held in celebration of “A Decade of AWESOME Phitex Experience,” which will be jointly hosted by the Department of Tourism and Hyatt Hotel and Casino Manila.

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Group pushes for government incentives for tech business incubators

Roy — Sun, 29 Aug 2010 15:03:13 +0000

The Philippine Development Foundation-USA (PDF), newly formed US-based Filipino development group is pushing for Philippine government to grant incentives for the creation of technology business incubators and business parks in order to nurture start-up investments in commercially-viable research and development fields in drug-making, food production and software.

Brain Gain Network found and PDF advocate, Dr. Paco Sandejas said that the founders of the group are ready to meet this September to come up with plans to boost industry innovation programs in the country. These founders composed of Filipino entrepreneurs and innovation specialists who are mostly based in Silicon Valley.

Sandejas said during a PDF press briefing, “We have proposed a program on technology business incubation way before when former senator Mar Roxas was DTI secretary. But we should continue to push it now.” The group is seeking government support in innovation initiatives that are seen as key to unlocking poverty reduction and economic growth.

President of Ayala Foundation Inc. (AFI) and PDF convenor, Victoria Garchitorena said it is envisioned that the PDF Forum will create a venue for partnership in technology entrepreneurship and business incubation between Filipinos based in the US and those based here. The fund raising for these partnerships to happen is in a stage that is called in the US as a “501 charity” according to Garchitorena. 501 charity means tax-exempt, non-profit corporation.

“We’re trying to do all the bridging of hope across. We’re establishing a system that will develop science and engineering as a foundation for economic development,” Garchitorena said.

Meanwhile, in a separate interview, AFI Executive Vice President Guillermo M. Luz said that the PDF may encourage formation of more licensing agreements in the country. This should prompt investors to put in money for new patents since they would have the protection to enjoy profits from revenue sharing agreements.

He said the company is collaborating with South East Asian associations where AFI’s Technology Business Incubators (TBI) are a member, in order to find models for best practices in licensing and technology business nourishment. Among these are Asian Association of Business Incubation (AABI), Asia Pacific Incubation Network, and SPICE (Science Sparks Incubating).

TBIs plays a major role in raising capital funding for business start ups focused on new technologies or software development, said Sandejas, who is also the managing partner of venture capital Narra VC.

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Philip Morris opens warehouse facility in Subic

Roy — Sun, 22 Aug 2010 01:45:33 +0000

A P600-million regional tobacco leaf warehouse was inaugurated recently by Philip Morris Philippines Manufacturing Inc. (PMI) at the Subic Techno Park inside the Subic Freeport Zone. The said facility cements the place of the Philippines as tobacco leaf warehouse hub of Philip Morris in the Asia Pacific region.

Armand C. Arreza, Subic Bay Metropolitan Authority (SBMA) Administrator, said the P600-million facility is phase two of a three-phase investment of Philip Morris. The third phase will be a $15-million facility, although it is not yet known as to when this will be started.

The new warehouse will store tobacco leaf for shipment and processing in different PMI cigarette factories in the Asia Pacific region including the Philippines. Chris Nelson, managing director of Philip Morris Philippines Manufacturing Inc. (PMPI), said, “This development establishes the Philippines, particularly the Subic Freeport zone as a major center for regional tobacco leaf trading and distribution.”

The warehouse at the Subic Techno Park has a capacity for storing 14,000 metric tons of tobacco leaf. This can be further expanded to accommodate an additional 10,000 metric tons, according to Nelson. He said, the facility has a state-of-the-art humidity control, fire suppression equipment and air conditioning system in able to handle and carefully preserve the tobacco leaf which will be imported from China, Indonesia, Thailand and other countries.

“As with the other investments of Philip Morris in the Philippines, this leaf warehouse further cements our commitment to the economic development of the country,” said Nelson in his speech during the inauguration.

“We are especially proud that PMI has chosen the Subic Freeport Zone, from among several locations in Southeast Asia. It is a very ideal location that provides advantages in cost and efficiency over other countries where PMI’s tobacco leaves were previously kept,” he added.

The tobacco leaf stored in techno park facility will be used by PMI manufacturing facilities in the region, including the cigarette factory in Tanuan, Batangas.

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Faster business registration process at Quezon City

Roy — Sat, 21 Aug 2010 00:43:43 +0000

It’s called BOSS, short for business one-stop shop, an initiative by the Quezon City Government that aims to lessen the burden of businessmen when securing business permit. Launched last Friday, officer-in-charge for the Business Permit and Licensing Office Pacifico F. Maghacot, Jr. said they are expecting to have at least 12,000 new businesses within the year with their new system. “The simplified procedures in licensing will drive individuals to invest or start a business,” he said.

Under the BOSS, Maghacot said that registrants can obtain a permit in nine minutes or a maximum of nine days if the business is requiring an ocular inspection, a process that took three weeks in the old system. “Before, the applicants had to go to all the officers like zoning official, building official, fire official, health and sanitation official, register the business and go to the city treasurer for payment which takes a long time,” he said.

In the new system, business applicants will just need to fill up a business application form, pay the corresponding fees to the city treasurer, and proceed to the Department of Trade and Industry’s Philippine Business Registry System. “All the steps are located in one office so the system is faster,” Maghacot said.

Location clearance, fire and safety inspection certificate and sanitary permit can be submitted by applicants after three months, but they can start operating their businesses even without the permit. “The aim is to encourage the formalization of business and spur investment by reducing the time cost and steps for new business registration at the city level,” Maghacot added.

He noted that there were 8,937 new businesses which have registered in the city from January to the end of July. With the new system, he said that the city expecting an increase of 8% in business registrants for 2011.

BOSS was set up with the technical support from International Finance Corp. (IFC), the financing arm for private sector of World Bank. IFC is also partnering with the cities of Marikina, Mandaluyong and Manila for the same project.

Rashad Kaldany, vice-president for Asia, Eastern, Europe, Middle East and North Africa, said during the launching that BOSS “will help invigorate the private sector and support sustainable economic growth.”

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Philippines is the third cheapest tourist destination in Southeast Asia

Roy — Sun, 18 Jul 2010 08:30:45 +0000

A recent survey conducted by one of the leading financial publications in Asia showed the Philippines as the third cheapest tourist destination in Southeast Asia. The survey was made by FinanceAsia, one of the leading business publications in the region, which utilized Mandarin Oriental’s rack rates as basis for the reader’s outlook.

Ahead of the Philippines in the list at the number one and two slots are Indonesia and Thailand respectively, while Malaysia comes in at fourth after the Philippines. “Despite our readers’ increasingly eccentric voting patterns, Indonesia seems a reasonable choice,” FinanceAsia said in its report.

It also added, “A cursory glance at Mandarin Oriental’s rack rates shows a deluxe room in August costs $345 a night in Bangkok, which would get you a club room in Manila – plus change for a taxi to the airport. In Jakarta, a deluxe room is just $173 (and about the same in Kuala Lumpur which is literally half the price of Bangkok.”

The Economist’s Big Mac Index was another method used in the survey. It uses the price of burgers around the world as a light-hearted measure of relative currency values, and used as a benchmarker for tourists to work out how expensive an unfamiliar country could be.

But the result of this data is the opposite of those in the Mandarin data, which shows Indonesia’s Big Mac costing $2.28, more expensive that either Thailand ($2.16) or Malaysia ($2.12). On the upside, readers stuck in Hong Kong for the summer can take advantage of the second cheapest Big Macs in the world – cheaper even than China.

The report continues, “But anecdotal evidence suggests that it’s lower than in either Thailand or Malaysia.” That makes the Philippines the cheapest place for both burgers and hotel rooms. Also, the report noted that the peso also has the advantage of getting cheaper

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UK to promote business opportunities in Asia, Philippines

Roy — Sat, 26 Jun 2010 23:13:13 +0000

The United Kingdom government plans to beef up its investment in Asia by promoting business opportunities in the region, particularly in the Philippines. UK Secretary of State for Business Vince Cable said it noted the importance of these business opportunities to the British businesses’ emerging markets. “If we were looking for growth, we should be looking to Asia. Asia is driving the global recovery and its growing middle classes are seeking more of what we can produce,” he said.

With this aim, the British Government, through its UK Trade and Investment (UKTI) will be hosting a series of events from 2010 to 2011 around UK to galvanize more British businesses to tap Asian markets. British Ambassador Stephen Lillie will meet with investors in London next month, together with 10 other British envoys from Asian countries to encourage more British investment.

Lilie said, “The Philippines has engaged over nine years of continual economic growth. With a large English-speaking workforce, huge natural resources and a strategic location, the country has a very promising future. We hope that the incoming Philippine Administration will take active measures to make the country an even more attractive place to do business, including by curbing corruption and investing in infrastructure. At a time when an increasing number of British companies are looking at East Asia, the UKTI team at the British Embassy in Manila is ready to help identify opportunities in this fast-growing market.”

The UKTI has tied up with the RBS Group to help promote opportunities in Asia to their clients, provide experts from Asia at events, and run practical sessions advising on trade finance. For the past decade, UK has the largest investors in the Philippines with a combined net foreign direct and net portfolio investment from 1999-2009 amounting to $9.7 billion ($8.7 billion in portfolio investment and $930 million in FDI).

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Manila Water joins consortium to buy Australian company

Roy — Thu, 13 May 2010 15:36:10 +0000

Manila Water Co. will be part of a consortium that will be formed to buy United Utilities Plc.’s wholly owned subsidiary, United Utilities Australia Pty Ltd. (UUA) and its affiliates for A$225 million. Others that will be part of the consortium are Mitsubishi Corp., Innovation Network of Japan and JGC Corp.

The Manila Water said in its disclosure to the Philippine Stock Exchange (PSE) that it has signed agreement with United Utilities, with the company’s share on the consortium set at 12.7 percent. UUA is made of companies which are incorporated and operating in Australia that own and operate 35 water treatment plants, 22 wastewater treatment plants, nine reuse schemes and four desalination plants in different areas in Australia.

Manila Water said that given its proven track record, it can contribute significantly to the expertise and experience of the existing UUA group across the provision of operation and maintenance and asset management services. “The company believes that its participation in the consortium is a strategic move to enhance its reputation and brand internationally as a premier water and wastewater services provider in the region,” it said.

In addition, Manila Water said that the transaction would help in improving the company’s competitive and visibility in the region as it focuses to expand its operations in emerging countries with significant water scarcity problems. The company also strengthened its regional presence with the incorporation of its second-foreign based affiliate in as many weeks.

The company, in its separate disclosure to the PSE, said that it has incorporated Jindal Manila Water Development Co. Ltd., the joint-venture company with Jindal Water Infrastructure Ltd. Jindal is one of India’s biggest business houses. It will be Manila Water’s partner in developing projects in the key Indian states of Rajasthan, Gujarat and Maharashtra.

Meanwhile, Manila Water’s holding company in Singapore has incorporated a wholly-owned subsidiary to extend the parent firm’s reach in Asia-Pacific.

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Air Philippines relaunched as Aiphil Express

Roy — Sun, 28 Mar 2010 08:51:48 +0000

The Lucio Tan-led Air Philippines will now be known under its new brand name – Airphil Express, as it was re-launched last Saturday.

The new Airphil Express now boasts of the addition of two A320-200 aircraft in its fleet. The two A320s sports the new Airphil Express livery and configured mono-class with 177 seats will start flying March 28 from Manila to Iloilo, Bacolod, Puerto Princesa and Cagayan de Oro.

Lucio Tan said Airphil Express will be acquiring a total of 20 new airplanes in the next four years, which will be added to its current fleet of eight Bombadier Q400 and Q300 turbo-pop aircrafts.

In addition to the two A320s, four more brand-new A320s will soon be delivered by Airbus manufacturing facility in Toulouse, France between September and November 2010. Four more aircraft will join the fleet next year, five in 2012 and another five in 2013, Tan said.

David Lim, president of Aiphil, said, “We want to position Aiphil Express as a low-cost carrier offering quality service.” “The modernization of our fleet will hopefully enable us to increase market share while the industry braces for the eventual rebound,” he added.

Added to its existing flights will be the following domestic destinations: Tugegarao, Naga, San Jose (Mindoro) Busuanga, Boracay (Caticlan) Catarman, Calbayog, Tacloban, Ormoc, Iloilo, Bacolod, Cebu, Surigao, Dipolog, Cagayan De Oro, Ozamiz, Zamboanga, Davao and Masbate. More domestic destinations will be added as the new aircrafts arrive.

Airphil’s board chairman Domingo Chua said, “This is the start of a brighter tomorrow for the company as we see more A320s to come and, in fact, Aiphil Express will be acquiring 20 new aircraft over the next four years.”

“As we bless our first A320 and launch as a new and more vibrant image to the market, we boldly show our competitors that we are still here and we intend to stay and Airphil Express shall once more rise to the challenge, true to its vision and mission, to be the premier low-cost carrier not only of the Philippines but of Asia,” Chua added.