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Creating graphics with impact

Roy — Sun, 23 Oct 2011 05:39:26 +0000

Entrepreneurs would want to make an impression on their target in order to catch their attention, and of course for better recall. A website called ImpactXS can help entrepreneurs, aspiring, novice and seasoned, to help create a graphic that would leave a lasting impact on their market.

Graphics, whether it be on their labels, logos, website, product packaging, letterheads, and even business cards can greatly help the business, especially those who are in the start-up phase to gain recognition, as well as popularity in the market.

That is why graphic designers are a great aide to entrepreneurs. Some even hire in-house graphic artists to have them design graphic images for the company. But for those who do not have the budget, or do not really require the continuous service of an in-house graphic designer, they can always outsource them.

Companies like the above-mentioned ImpactXS can offer package design for entrepreneurs who can help them conceptualize an effective design for their labels, logos, packaging and the like.

It is always better to sit-down and talk with a graphic designer, whether in-house or outsource, as the graphics can greatly effect the business in the long run. Do not think of it as an additional expense, see it as an investment for the company’s future.

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DTI to bring SME Caravan to Antique

Roy — Sun, 15 May 2011 17:43:22 +0000

The Department of Trade and Industry (DTI) will bring business caravan to Antique. The DTI has chosen the province to be one of the sites for the Small and Medium Enterprises (SME) caravan which is slated on the 26th and 27th day of this month.

The trade department is encouraging businesses falling under the category of small and medium enterprises to take part in the said business caravan as it could be of great help for them because they would gain knowledge and skills in the field of their specialization.

The Micro, Small and Medium Enterprises (MSMEs) sector are considered by the national government as the backbone of the country’s economy. They contribute to employment and generate output for the economy. The government considers this sector as a vital link in dispensing new industries to the countryside and providing gainful employment. With this in mind, the government initiated a comprehensive and integrated strategies in sustaining the growth and development of the MSME sector, one of them is the SME Caravan.

Through the SME Caravan, the MSME’s could gain improved access to government and private sector services, particularly in areas where the provision of business services are limited. The caravan also aims to create awareness of SME’s various business development services that are available to them, both from the government and private sector.

During the business caravan, there would be resource speakers who will cover different business topics like Access to Markets, particularly Product Development and Marketing the Business, Packaging and Labeling, Product Costing and Pricing, and How to Participate in Trade Fairs.

For the finance said of business, the Access to Finance module will cover Business Plan Preparations, while the session on Productivity and Efficiency will cover topics such as Good Manufacturing Practices and Food Safety. The module on Entrepreneurship will cover Entrepreneurial Mindset and Opportunity Seeking lectures.

The seminars are free and DTI published information materials on MSMEs will be provided to each seminar participant.

Supporting the DTI in business caravan are different agencies and organizations like the Land Bank of Philippines, Development Bank of the Philippines, Provincial Government, TESDA, OPA, PPDO, DAR, the Sangguniang Panlalawigan and Non-Government Organizations.

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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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JG Summit earmarked $700 M for its 2011 expansion

Roy — Fri, 06 May 2011 01:00:57 +0000

JG Summit Holdings Inc. is earmarking $700 million for the planned expansion this year. Most of these funds are allocated for its petrochemical and airline businesses.

JG Summit president Lance Gokongwei said the petrochemical business will be the company’s priority in the next three years. JG Summit also has stake in a property developer and may expand into power generation.

With sale of its stake in Digital Telecommunications Philippines Inc. (Digitel) to Philippines Long Distance Telephone Co. (PLDT), the company will also be able to cut its debt by $600 million, giving it “more room” for fund-raising. Also the asset sale is said to be “strategically good for JG Summit because it frees up capital that the company can invest in ventures that potentially will pay a higher return.”

Gokongwei said after the sale of its Digitel stocks to PLDT, “We will be very lightly leveraged. We will have a very good balance sheet.” According to data compiled by Bloomberg, JG Summit has bonds and loans worth P69 billion.

Last December, JG Summit said it may sell 31 percent of its stake in Cebu Air Inc. to fund expansion and pay debt, however, after the Digitel-PLDT deal, the company will have “no immediate” need to sell shares. JG Summit is the majority owner of Cebu Air, the country’s biggest budget carrier.

Gokongwei said JG Summit will invest about $200 million in a naphtha cracker plant worth $700 million that may start operations by 2013, snack and iced-tea maker Universal Robina Corp. may spend $80 million to $90 million, property unit Robinsons Land Corp. will spend as much as $200 million on capital expenditure this year, while Cebu Air will spend around $200 million.

JG Summit also plans to bid for airport projects that the government will be opening to companies for investment, and is mulling to build a power plant for its petrochemical business, said Gokongwei.

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Philippine-China trade and conference fair set on June

Roy — Sun, 01 May 2011 08:56:27 +0000

The China Council for the Promotion of International Trade (CCPIT)-Guangzhou and Philippine Chamber of Commerce and Industry (PCCI) recently signed a cooperation agreement to co-organize the Manila-Guangzhou Trade and Investment Conference slated to be held on June.

The event, which is aimed to further boost the Philippine-China trade and investment relations, is expected to gather around 500 business leaders, industry captains and government officials from both countries.

Part of the activities of the conference will be a product promotion through a virtual trade fair which would feature top export products of China, and business matching activities. There will also be office and factory visits to be arranged for the estimated 200 businesses and industry leaders comprising the Chinese delegation.

PCCI President Dr. Francis Chua said, “The Philippines and Chinese’ economies are open to mutual cooperation in trade and investments. While initially, the idea behind the conference is to promote Chinese-manufactured products for export to the country, we are making it a point to ensure that local enterprises and industries get maximum exposure and gain from the visit of top-level Chinese businessmen. That is why we are arranging business meetings and site visitations on the sidelines of the conference.”

China is the country’s top trading partner with export receipts reaching US$51.39 billion in 2010. Data from the National Statistic Office (NSO) show that the combined markets of China and Hong Kong in 2010 accounted for about 19.52 percent of the Philippines’ total exports.

Guangzhou Vice President of CCPIT Madame Li San Jian said, “China is a very big market. With increasing domestic demand and infrastructure development, Philippine export products such as mineral-and-metal-based resources as well as processed and fresh food products can easily gain entry into the Chinese market.”

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DTI’s trade mission to India produces $42 M investment pledges

Roy — Fri, 22 Apr 2011 15:59:24 +0000

The Department of Trade and Industry (DTI) reported that their recent trade and investment mission in India have generated new investment pledges worth $42 million. Trade Secretary Gregory Domingo said they were from three energy projects and a pharmaceutical packaging ventures.

The Philippine delegates, led by Domingo, attended the recent ASEAN-India Business Fair and Conclave held in New Delhi in its bid to penetrate India’s trillion dollar market. Other members of the Philippine mission were the Department of Agriculture, Department of Tourism, Department of Foreign Affairs and the Philippine India Business Council of the Philippine Chamber of Commerce and Industry.

Domingo said he was able to convince Indian businessmen to invest in the Philippines during his first official trip, and the trade department’s first mission to India. “India is emerging as a source of foreign direct investments (FDIs) for the Philippines. Apart from BPO companies which are directed by their principals to open delivery centers in the Philippines, more Indian companies are continuing to realize the potential of the Philippines as a gateway to the lucrative ASEAN market,” he said.

The investment pledges acquired by DTI include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra.

According to Domingo, the trade department is working on several initiatives for Indian businessmen locating in the country which include the improved business registration procedures; and relaxed visa norms for senior executives of IT and BPO companies. Add to this, he also announced the recently inaugurated direct flights from Manila to New Delhi of the Philippine Airlines (PAL).

During their trip, Domingo also witnessed the signing of a memorandum of understanding (MOUs) between the Associated Chamber of Commerce in India (ASSOCHAM) and the Philippine Chamber of Commerce and Industry, and between the Federation of Indian Mining Industries and the Philippine Chamber of Mining Industries represented by Philip Romualdez, to promote trade, investments, and economic relations between India and the Philippines.

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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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Ayala stays firm in its investment in Globe

Roy — Mon, 18 Apr 2011 16:48:09 +0000

Despite of the looming merger of rival Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Philippines Inc., (Digitel), the Ayala Corp. said it has no plans of leaving the telecommunications business.

Ayala and partner Singapore Telecommunications Ltd. (SingTel) were excited about the prospect of its Globe Telecom Inc., despite the tougher competition brought about by the merger of its two rivals.

Jaime Augusto Zobel de Ayala, chairman of the country’s oldest conglomerate, said “I see no reason to disrupt the partnership between Ayala and SingTel,” when asked if they would be willing to accommodate a new investor for Globe. “It’s a very interesting for the industry. It would be foolish of us to get out at this time,” he added.

Analyst earlier said that the deal between PLDT and Digitel would give the telecom giant 70% of the mobile phone market to the disadvantage of Globe. However, Zobel said they remain unfazed by stiff competition in the industry. “In fact, together with our partner, we’re very interested in building Globe up,” he said.

He added that Globe would spend $500 million to upgrade its network as it looks to protect market share.

And while its Globe Company only ranked No. 2 in the telco industry, the conglomerate has a lot of high profile businesses.

It owns property Ayala Land Inc., Bank of the Philippine Islands, Manila Water Co., and it also has interest in business process outsourcing (BPO), electronics and car dealerships. This year, the conglomerate is hiking its capital expenditures by 20% to about P80 billion to accommodate plans to expand into power generation and infrastructure.

Ayala also plans to bid for the contract to operate 2 major elevated railway systems in Metro Manila, which the government will auction under its public-private partnership program. “We believe power generation is a potential source of long-term growth for Ayala. We feel there is an opportunity for new players to come in,” Zobel said.

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Sutherland is PEZA’s 2001 Employer of the Year

Roy — Sat, 16 Apr 2011 17:18:57 +0000

For the 3rd time, Sutherland Global Services Philippines is name Outstanding Employer of the Year by the Philippine Economic Zone Authority (PEZA). The 2011 Outstanding Employer honor was given to Sutherland at the recent PEZA Investors’ Recognition Night, which reflects the value that the company gives its people.

From 150 employees in 2005, Sutherland today has more than 13,000 employees, a growth of over 86,000 percent. However, the secret of success of a business enterprise is not just the quantity of employees but also more importantly, the quality of employment.

With their 3rd outstanding employer award, the company is assured the honor of being included in PEZA’s Hall of Fame in next year’s awarding. This is a distinct recognition given only for a handful of companies which have won the award three times.

The Outstanding Employer Award is sponsored by the PEZA in cooperation with Philippine Ecozones Association. It is given to organizations that generate the most number of jobs, hold high regard for the welfare of their workers, and maintain harmony between labor and management.

Sutherland Philippine’s management team, chairman and CEO Dilip Vellodi said, “To win this prestigious award year after year is a very strong testament to the dedication of our employees in the Philippines, who have all helped in making this happen.”

Vellodi added, “Since our launch in 2005, our operations in the Philippines have become a strategic component of our global service delivery model. The country’s favorable economic environment, business-friendly government policies and above all the technically skilled and committed workforce have been driving forces in our ability to rapidly scale our operations across several locations in the country.”

The business process outsourcing (BPO) company was also awarded the Philippine Quality Award (PQA) for Commitment to Quality Management during the 11th PQA awarding rites conducted annually by the Department of Trade and Industry. Sutherland holds the honor of being the first and only BPO company who has been given the award in the last 10 years.

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Immigration barred 34 OFWs from leaving

Roy — Thu, 14 Apr 2011 02:04:46 +0000

The Bureau of Immigration (BI) barred 34 prospective overseas Filipino workers from leaving the country. The passengers were prevented from boarding a Philippine Airlines (PAL) flight to Bangkok after confessing that they were OFWs disguised as business travelers after intense questioning from immigration officers at the Ninoy Aquino International Airport (NAIA).

BI airport operations chief Lina Andaman Pelia said, “They were offloaded for not having the required clearances and employment permits from the Philippine Overseas Employment Administration (POEA).”

The Bangkok-bound passengers said they were supposed to find employment in Thailand. Some of them had work in Dubai and other Middle East countries. They were allegedly travelling on a business visa that was provided by a company in Dubai that was supposed to process their work permits in Thailand.

BI Commissioner Ricardo David Jr. commended the immigration officers for their vigilance and asked them to be more careful and step up their efforts in not allowing undocumented OFWs. The immigration office, however, refused to divulge the names of passengers as the anti-human trafficking law prohibits the public disclosure of both the traffickers and their victims.

During the course of their investigation, the immigration officer found out that the travelers were going to work for the Super Giant Touring Carnival owned by Apirom Properties Company Ltd., an affiliate of the Big Fun World based in Dubai and where many of the passengers previously worked.

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Splash reported 500-percent growth in 2010 profit

Roy — Wed, 13 Apr 2011 12:36:54 +0000

Splash Corporation reported its profit up to 500 percent to P144 million in 2010 from P23.74 million in 2009. The leading personal care manufacturer reported to the Philippine Stock Exchange that its big financial figures last year can be attributed to its strong performance across all its business segments – domestic, international and direct selling.

Splash president Eric Domagas said, “We posted higher net income due to efficient use of plant assets, tighter control on expenses, (and) launch of our new products.” He added, “We are confident that the company will continue to post double digit growth this year. We believe in the continued growth of our direct selling and international business segments.” Net sales for 2010 were recorded at P2.99 billion, up by 9.8 percent from 2009’s P2.72 billion.

The company’s capital expenditures in 2010 were registered at P69 million, from a previous P21.3 million in 2009. For 2011, the company’s board approved higher capex amounting to P426 million, most of which will be spent for plant capacity expansion, improvement of facilities and enhancement of information systems for international and direct selling operations.

Splash’s skin whitening captured the growth in product sales in 2010, reaching P1.3 billion, followed by skin exfoliants at P1.04 billion and hair products at P542.3 million. International operations recorded net sales of P407.98 million last year, up by 67.5 percent from P243.58 million in 2009.

The company has also set up subsidiaries and offices in the Middle East, Indonesia and Asean region, which helped it gain a foothold in international sales. Meanwhile, direct selling business recorded a big growth in net sales reaching P40.8 million last year from P3 million in 2009.

Splash direct selling head Glenda Pingol said, “Splash direct sales will be very aggressive in its effort to build its pioneer network for the year 2011.”

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SMC prepares for its foray in the telco industry

Roy — Wed, 13 Apr 2011 01:35:54 +0000

The corporate food and beverage giant San Miguel Corp. (SMC) is seriously mulling entry into the highly competitive field of telecommunication. The company plans to create a holding company for all its telecommunications interest as the conglomerate prepares for its grand entry in this field, according to a top official of the company. SMC president and COO Ramon S. Ang confirms “That is the intention, to create a holding company for our telco business.”

The company have already invested P9 billion so far in the local telecommunications business and plans to put in even more in order to build what it describes as a “next generation” network that will provide the best service and cheapest rate in the country. Ang emphasized that their business model for telecommunications guarantees one that will be better than what the other companies are giving.

SMC, at present, owns 41.5 percent of Liberty Telecom, 100 percent of Bell Telecom and 40 percent of Easter Telecom. Ang assured that they will not be wasting money, time and effort to establish a complete network that will just copy what is being offered in the market right now. “It will be a next generation, long-term evolution, mobile broadband, which is still being planned by others in the industry,” he said.

What is important right now, Ang noted, is to have a level-playing field in the telco industry. “But what I can assure you is that our service will be the best, no dropped calls, and very affordable rates. We will not waste resources if we will not do it right,” he said.

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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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DTI intensifies awareness campaign on benefits of FTAs

Roy — Wed, 30 Mar 2011 04:24:19 +0000

The Department of Trade and Industry said that many among our exporters are not really aware of the trade opportunities under the country’s free trade agreements (FTA). That is why it is intensifying its information awareness campaign focusing on the government’s priority exports.

Gregory L. Domingo, DTI Secretary, said that the basic information awareness campaigns from March to November this year will focus on sectors such as motor vehicle parts and vehicles, food, garments and textiles, minerals, coconut products, construction and related materials, wearable, home style and IT/BPO. “More targeted information sessions will enlighten our businessmen to engage or expand their business according to what is viable in our FTA markets,” he said.

The trade secretary stressed that by understanding emerging and new markets, as well as instruments such as the FTA, will help exporters address new challenges in the global business environment. For 2010, the Philippines achieved a record of over $51 billion in export revenues.

At present, the country has FTAs with ASEA, China, Japan, Korea, Australia and New Zealand. An FTA with India is already in the work and due for implementation on the last part of the year. On March 31, a second round of information sessions targeting specific sectors will be launched at the Philippine Trade Training Center (PTTC).

Domingo said export companies have not yet fully utilized the FTAs “because businessmen are not properly informed of the business opportunities that the country has gained from our FTA.” Last year, the agency was able to conduct information campaigns in 11 cities, benefitting some 2,000 businessmen.

International Trade Undersecretary Adrian S. Cristobal Jr. said, “Exploring the FTA markets is one of our core strategies to increase our exports over the next six years and sustain its steady growth. He said that this year’s sectoral sessions will include presentations on market opportunities, including non-tariff measures, in the country’s FTA markets; tariff rates on top exports for each sector under the FTAs, rules of origin, open forum, as well as business testimonials from those who have benefitted from FTAs.

“The FTAs are strategic tools or pathways for growth and competitiveness. Not only do these open markets for our goods and services, but they also compel us, as a people to take a hard look at our economic structures and implement the much needed reforms to put our economy in step with the global environment,” he added.

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NSO to conduct survey on businesses establishments

Roy — Mon, 28 Mar 2011 07:13:56 +0000

A survey of the businesses in the Philippines will be conducted by the National Statistics Office (NSO) this year. The project called, the Annual Survey of Philippine Business Industry (ASPBI), will start as soon as the NSO personnel have finished with their training for the conduct of ASPBI, according to NSO-Cordillera Regional Director Olivia Gulla. The aim of the survey is to get the statistical data on the activities of business establishments here in Cordillera.

Gulla said they have just finished with their second level of training. Participants for the training were regional and provincial statisticians and statistical census officers. After their training, they will then, in turn, train those who will be involved with the ASPBI survey in their respective provinces.

NSO Statistician III Jean Floirendo said, the ASPBI survey aims to determine regional revenues or income of business establishment in the region. This would help in determining the productivity and value added indicators of the business industries not only here in Cordillera but to all parts of the country.

Floirendo, who was assigned by the NSO central office to conduct the said training, called on all business establishments in the region to support the said survey, and assured respondents to the survey their reply will be treated with utmost confidentiality.

The questionnaires for the said survey will be distributed on April and the collection of data will commence on May. Among the data involved in the survey are the number of establishments, number of employment generated, compensation each establishment pay their employees, the revenue and the cost of operating such business.

Based on the last completed ASPBI survey done on 21,040 business establishments nationwide, which have employed 20 or more workers, they have provided employment to about 2.74 million Filipinos nationwide, which also provided a total revenue to the government of about P6.9 Trillion.

The manufacturing sector also got the most part of the pie with 21.9 percent of the total establishments surveyed, followed by the wholesale and retail sector with 19.5 percent, followed by the hotel/restaurant and education sector, with 14 and 13.6 percent, respectively.

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PEZA said Japanese will not pull out from the country

Roy — Wed, 23 Mar 2011 12:12:02 +0000

The Philippine Economic Zone Authority (PEZA) said, in spite of the tragedy that hit their country, Japanese firms in the Philippines will continue with their business operations here and will not be laying off any workers. The PEZA added that because of the twin disasters that hit Japan, these businesses are even prompted to transfer some of their operations in their plants here.

Elmer San Pascual, PEZA group manager promotions and public relations, said that tsunami in Japan resulted in the temporary transfer of production here in the Philippines so that they will be able to make up for the deficiency in their production in Japan brought about by the calamities. “There are two to three firms that said they would like to expand their operations here,” he said.

San Pascual was quick to point out, “I don’t know where the news of retrenchment came from but that is not true.” He added, “Employers of Japanese firms operating in the Philippines need not worry that they will lose their jobs.”

However, he also said that the transfer of operations in the Philippines will not directly result in the hiring of additional workers. It will depend on how long the transfer of operations are. The firms may opt to hire new workers for the production. San Pascual said the Japanese firms operating in PEZA zones have a capacity of 85% to 95%. He said that if the capacity balloons to 95%, then the firms would have no choice but to undergo expansion. “The Japanese are worried about the power supply there because they have rotating blackouts,” he said.

San Pascual noted that there are 618 Japanese firms from the 2,700 plus companies in the PEZA zones. Most of them are in the electronics and semiconductor business. The others are in auto parts and ship building. He said those Japanese firms belonging in the auto sector have not signified any intention yet of expanding their operations in the country.

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Joint Foreign Chamber lauds open skies policy

Roy — Wed, 23 Mar 2011 02:16:04 +0000

A group of foreign businessmen is expressed their support for the implement of an open-skies regime by the Aquino administration via Executive Order (EO) 29. The Joint Foreign Chambers says this would better allow market forces to come into play and ultimately boost tourist arrivals in the country. The group said that the policy was in line with Aquino’s promise that “the Philippines is open for business under new management.”

EO 29 eases restrictions on foreign airlines in international airports outside Metro Manila. It gives the Civil Aeronautics Board (CAB) authority to grant additional frequencies or capacities to foreign carriers, but still prohibits cabotage, which refers to a foreign airline’s transport of people or good between two or more points within the country.

Local carriers, however, are opposing the implementation of the said executive order. The Philippine Airlines and Cebu Pacific Air said it would give foreign carriers undue advantage, while the foreign chambers said its benefits to the Philippines were far-reaching.

The foreign chambers said that with the increasing tourist arrivals, the result would be more and jobs and revenues for people who are directly and indirectly involved in the tourism service industry. The group also noted that for every foreign tourist who comes to the Philippines, an average of $1,000 is spent and one direct or indirect job is created, of which majority are in rural areas and less developed provinces.

“We wish to extend full support for President Aquino’s visionary leadership on civil aviation embodied in EO 29. The policy allows market forces to determine supply and demand for seats to secondary gateways throughout the country. With this new policy, the administration has taken a giant step toward its goal of doubling annual tourist arrivals to more than six million by 2016,” the Joint Foreign Chambers said.

The foreign chamber is also seeking the removal of the common carriers’ tax and the gross Philippine billings tax to unleash the creativity and dynamism of the private sector. “Continuation of these taxes risks losing some of the present international air services into the country, as well as deterring new ones, and departs from standard international practices,” the group said.

It added, “With these proactive reforms of the Aquino administration, we can look forward to continued rapid expansion of the aviation market in the Philippines, more competitive pricing and better service, and new routes to drive tourism, investment and employment.”

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Banco Filipino seeks help from the Court of Appeals

Roy — Mon, 21 Mar 2011 19:52:58 +0000

The Bangko Sentral ng Pilipinas (BSP) issued closure order last for Banco Filipino Savings and Mortgage Bank and put it under receivership by the Philippine Deposit Insurance Corp. (PDIC) due to its capital deficiency.

Banco Filipino on Monday asked the Court of Appeals to the closure order of BSP. Perfecto Yasay, BF vice chairman and former chair of the Securities and Exchange Commission said they filed a petition for certiorari with the Court of Appeals to declare the BSP order as illegal.

Yasay said Banco Filipino is questioning the legality of the order issued by BSP against them. He pointed out that there is a preliminary mandatory preventive injunction already issued by the Makati City Regional Trial Court Branch 66 which orders BSP to implement the BSP and Monetary Board approved business plan. “We are asking the Court of Appeals to issue a temporary restraining order and/or preliminary injunction against the BSP order,” he said.

The BSP said that Banco Filipino has insufficient realizable assets to meet its obligation with its net realizable value at -P8.4 billion. This was contested by Yasay who maintained that they are not insolvent and has assets worth P25 billion.

A decision made by the Makati RTC in 2009 ordered the BSP and the MB to immediately implement BF’s approved business plan by releasing without delay, the P25-billion financial assistance and a package of regulatory relief. This was affirmed by the Court of Appeals last year.

Banco Filipino was first closed by the then Central Bank of the Philippines headed by the late Jose “Jobo” Fernandez Jr. as its governor and chairman of the MB. The Supreme court declared the closure “arbitrary and with grave abuse of discretion” in 1991, which became final in 1992.

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Online gaming business plans to diversify

Roy — Mon, 21 Mar 2011 13:05:17 +0000

The Premier Entertainment Philippines Inc. (PEP) just got the nod of its shareholders to diversify from its main business of online gaming and into the mining, real estate and information technology. However, the company said it remains in search of its next venture as it assesses “feelers” from potential partners in its new businesses.

Anastacio P. Diaz of PEP said they want to move into a new venture that is not as tightly regulated as gaming business, which is overseen by the state-help Philippine Amusement and Gaming Corp. He stressed that whatever business they will go into, with any possible business partner, should have “synergy with company’s intentions.”

He said the search for a new business remains in the scouting stage. The final decision may be reached in 18 months.

PEP operates seven online casinos in Metro Manila that provide much of its cash. Each online casino carries an average of 50 terminals, said Diaz. PEP operates the online casino through its unit Digiwave Solutions Inc.

The gaming company hopes to improve its returns from its business. As of its last financial report, it stood at P47.7 million, which should have been P318,000 higher than the previous year’s had it not been for the recognition of a one-time gain from the sale of software by PEP in 2009 that dwarfed its 2010 revenues and more than covered all its cost for that year.

The company remains in the red. As of September, it financial report showed a nine-month loss of P41.25 million compared with an income of P7.65 million in the previous year. For the quarter, PEP’s loss of P6.67 million was lower than the P15.25 million loss in the previous year.

Diaz said they expect a 10 percent growth in revenue in its existing seven sites, even as the company intends to further increase the presence of online casinos. They are eyeing expansion in Manila, Quezon City, Las Piñas and Bulacan province, among others.

“We are able to dramatically reduce our operating expenses, and our e-games have been upgraded. We have a better management group. So we expect revenues to rise and operating expenses to drop,” said Diaz.

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House body approves simplifying net income tax scheme or SNITS bill

Roy — Sat, 19 Mar 2011 06:42:29 +0000

A bill that is said to “increase tax collections without the enactment of new tax measure” has been approved by the House committee on ways and means.

Authored by Representative Giorgidi Aggabao and Batangas Representative Tomas Apacible, the bill is simplifying the net income taxation scheme (SNITS) that will limit the allowable business deductions from gross revenues for self-employed individuals and professionals to reduce corruption and increase government revenues. It seeks to amend Sections 22, 24 and 34 of the National Internal Revenue Code of 1997, as amended.

“I am very glad that the committee on ways and means has approved the SNITS bill for individual engaged in business or exercise of a profession. It will simplify the tax audit even as it enlarges the taxable base for the aforementioned taxpayers,” Aggabao said.

The SNITS bill has three objectives namely:

Limit through specific statutory provisions, deductions to gross income of only eight allowable expenses;

eliminate the sui generis deduction of “ordinary and necessary trade, business or professional expenses” such as travelling expenses, entertainment, amusement, recreation expenses and other wide variety of expenses that have spawned problems of drawing an exact line of demarcation between legitimate business expenses and personal expenses;

and eliminate losses, bad debts, pension trusts and premium payments on insurance which are basically personal expenses.

Under the status quo, Aggabao said deductions from gross income are permitted for 10 expenses namely: ordinary and necessary trade, business or professional expenses; taxes; losses; bad debts; depreciation

With the new bill, the deductions from gross income shall only be only for eight expenses, which are: salaries and wages; supplies and utilities; rentals; interests; taxes; depreciations; research and development; and charitable contributions.