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Pancake House posted P73.66 M net income for 2010

Roy — Sun, 24 Apr 2011 10:41:35 +0000

Pancake House Inc. reported a net income of P73.66 million for 2010, a figure which more than doubled the P35.56 million it posted in 2009. The Lorenzo-owned casual dining restaurant chain attributed the growth to its outlet consolidation and realignment of resources to profit-generating activities.

The company also owns and operates various other restaurant brands, aside from its flagship store Pancake House. These are Dencio’s Kabisera, Teriyaki Boy, Singkit Sizzlin’ Pepper Steak and Le Coeur De France.

Pancake House, in its financial report submitted to the Securities Exchange Commission (SEC), said consolidated revenues slightly went up to P1.84 billion from P1.82 billion due to the increased company-owned restaurant sales. Total system-wide sale of the group amounted to P2.3 billion, which translated to a compounded annual growth rate of 3.2 percent over a three-year period.

However, the company commissary sales fell 5.8 percent to P311 million due to several closure of franchised outlets awaiting relocations. On the other hand, its franchise revenues amounted to P87 million in 2010 compared to P86 million in 2009.

Pancake House management said it was successful in the implementation of its plans and programs such as expanded synergies among the seven brands, strategic purchasing and resource optimization despite the increasing cost of raw materials and supplies, rental and utility rates.

The company’s operating expenses for 2010 rose 6.7 percent to P624 million which it said were due to the rising trend of occupancy costs such as utilities, rent and electricity, among other. The consolidated EBITDA, however, remained strong at P720 million with a sustainable margin of 16.6 percent. This is due to the company’s efforts in mitigating the continuous increase in costs and intensifying its targeted marketing and promotional campaigns.

The group said it would continue to consolidate some outlets or relocate them in more strategic, high-traffic areas such as restaurants in hospitals, international terminals and business centers. As of end-December 2010, it had a total of 171 stores across the country.

Pancake House Inc. reported a net income of P73.66 million for 2010,

a figure which more than doubled the P35.56 million it posted in

2009. The Lorenzo-owned casual dining restaurant chain attributed the

growth to its outlet consolidation and realignment of resources to

profit-generating activities.

The company also owns and operates various other restaurant brands,

aside from its flagship store Pancake House. These are Dencio’s

Kabisera, Teriyaki Boy, Singkit Sizzlin’ Pepper Steak and Le Coeur De

France.

Pancake House, in its financial report submitted to the Securities

Exchange Commission (SEC), said consolidated revenues slightly went

up to P1.84 billion from P1.82 billion due to the increased company-

owned restaurant sales. Total system-wide sale of the group amounted

to P2.3 billion, which translated to a compounded annual growth rate

of 3.2 percent over a three-year period.

However, the company commissary sales fell 5.8 percent to P311

million due to several closure of franchised outlets awaiting

relocations. On the other hand, its franchise revenues amounted to

P87 million in 2010 compared to P86 million in 2009.

Pancake House management said it was successful in the implementation

of its plans and programs such as expanded synergies among the seven

brands, strategic purchasing and resource optimization despite the

increasing cost of raw materials and supplies, rental and utility

rates.

The company’s operating expenses for 2010 rose 6.7 percent to P624

million which it said were due to the rising trend of occupancy costs

such as utilities, rent and electricity, among other. The

consolidated EBITDA, however, remained strong at P720 million with a

sustainable margin of 16.6 percent. This is due to the company’s

efforts in mitigating the continuous increase in costs and

intensifying its targeted marketing and promotional campaigns.

The group said it would continue to consolidate some outlets or

relocate them in more strategic, high-traffic areas such as

restaurants in hospitals, international terminals and business

centers. As of end-December 2010, it had a total of 171 stores across

the country.

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Ayala invests in hydro-electric power

Roy — Fri, 22 Apr 2011 05:33:57 +0000

Another venture that the Ayala group is breaking into is the hydroelectric power generation partnership. The conglomerate, through its wholly owned subsidiary Michigan Power Inc. (MPI) has entered into a joint venture agreement with Sta. Clara Power Corp., an independent power producer specializing in run-of-the-river power plants. Ayala Corp managing director John Eric Francia confirms this as stated in the company’s disclosure to the Philippine Stock Exchange.

MPI and Sta. Clara will be developing a run-of-the-river (ROR) hydroelectric power projects across the Philippines. MPI will take a 70-percent stake in the venture and has committed an initial equity infusion of about P600 million.

A run-of-the river hydroelectric power plant operation involves “borrowing” some river water to turn its kinetic energy into electricity and returning the same unpolluted water back into the river. Francia said, “It is considered as green because it does not produce harmful emissions. Like other renewable power technologies, it is economical as it depends on the free energy of nature as fuel.”

Speaking on the joint venture agreement, president and chief operating officer Fernando Zobel de Ayala said, “This venture builds on our current portfolio of renewable energy assets, which focuses on solar, wind and hydro power technologies. This is an important component of our plan to create a portfolio of power assets over the medium term that blends conventional and sustainable energy sources and contribute to the country’s energy requirements.”

The Ayala group has ventured into power generation as a key platform for future growth especially as demand for electricity is expected to rise in the years ahead. And since the company has yet to build its expertise in the industry, part of its strategy is forging partnership with other institutions.

In the next five years, the conglomerate plans to build a portfolio of power generation assets that will include both renewable and conventional with a capacity of 1,000 megawatts. Francia said that it is all “in line with Ayala’s campaign to augment the country’s power supply primarily through renewable and clean energy.”

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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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Artists to hold free concerts for militaries

Roy — Tue, 19 Apr 2011 10:24:14 +0000

To cheer up the soldiers and help them get their mind off the corruption scandal involving former top military officials, a group of celebrity singers will perform in various military camps.

Led by the current president of the Organisasyon ng Pilipinong Mang-aawit (OPM) Olgie Alcasid, the group composed of Vice-president Noel Cabangon, Cookie Chua and Mitch Valdes, will start their free concerts at the Armed Forces of the Philippines (AFP) headquarters in Camp Aguinaldo on April 27, together with the pop band Syato Banda. The concert is dubbed “Himigsikan 2011: ROCKrakan para sa Kapayapaan.”

Performing with the celebrities on the stage will be three military bands – the Philippine Marine Corps. Combo, the Philippine Navy Seabees, and the Philippine Air Force 710th SPOW Combo. Together with them on list is Navy Lt. Chat Alvaro.

The OPM president said they’d rather entertain soldiers than join noisy anti-government protests. Alcasid said he thought of the idea of entertaining soldiers in February to boost their morale after learning how troop morale had been affected by a corruption scandal involving former AFP chiefs of staff.

“It must be difficult for them. It’s just our way of saying, we performers, we artists, we’re here for you. We are behind you. We support you, we support the new leadership and let’s start anew,” Alcasid said. He added the performers also planned to visit at least two other camps.

AFP Deputy Chief of Staff for Operations (J3) Brig. Gen. Jose Mabanta Jr. welcomes the gesture by the OPM officers. “This is a big booster. You know we’ve been getting it from all sides and we certainly appreciate this. We are really happy that friends are helping us.” He admitted that the corruption scandal had affected the troops.

The Camp Aguinaldo concert will be held on April 27, 2011 at 6 p.m. at the AFP grandstand. The event will be kicked off by a multicultural gathering and a “boodle fight” among 100 delegates from Muslim youths, indigenous people, Christians and young officers.

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Ayala Corp. allots P79 billion for its capex

Roy — Tue, 19 Apr 2011 04:51:18 +0000

Giant conglomerate Ayala Corp. allots a record-high P79 billion for its capital expenditures this year. The company said it is in an excellent position to delve into various investment opportunities. It is particularly eyeing the power and infrastructure sector.

During the annual stockholders’ meeting, chairman Jaime Augusto Zobel de Ayala said that while the company is quite successful in its traditional markets which continue to grow, the favorable economic environment has “also ushered a renewed interest to invest in sectors that are critical to sustaining and raising the country’s growth trajectory, particularly with the government’s emphasis on increased private sector participation in the infrastructure and power sectors.”

He added that the group’s ultimate goal is to broaden its customer to reach and diversify its portfolio in a manner that creates developmental impact and economic value both for the corporation and the society as a whole.

The company first took a plunge in the power industry in 2010. It is now aiming to build its power portfolio using both renewable energy sources and traditional fossil fuels. “We are in the process of developing focused platforms across various technologies such as solar, wind, both large-scale and mini hydro, as well as thermal energy with the intent of balancing cost of energy delivery with sustainable practices,” Zobel said. The group aims to put up power facilities that can generate over 1,000 megawatts of electricity over the next five years.

The conglomerate remains on the lookout for opportunities apart from the power industry, like in the transportation infrastructure space, particularly whose which may have strategic value with other business units.

The company is bidding for a contract to operate and maintain the 17-kilometer Line 3 of the Metro Rail Transit (MRT3), which has an estimated cost of P6.3 billion. The MRT3 is one of the infrastructure projects being offered by the government under the public-private partnership (PPP) program.

Meanwhile, president Fernando Zobel de Ayala, for his part, said the highly diversified conglomerate has a healthy cash level, which stood at P29 billion as of end-December last year. “We maintain a highly flexible funding position that allows us to make sizable investments in new sectors moving forward without impairing value-enhancing initiatives such as our ongoing buy-back program, dividend payouts and meeting our funding requirements.”

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PLDT assured market would still be competitive after acquisition of Digitel

Roy — Fri, 15 Apr 2011 04:12:21 +0000

The Philippine Long Distance Telephone Co. (PLDT downplayed fears that its takeover of rival Digitel Telecommunications Philippines Inc. would hinder competition in the local telecommunications industry. The telecom giant in fact said that the PLDT-Digitel merger would even be beneficial to the industry and would bring in better services and more competitive prices for consumers.

PLDT’s Manny Pangilinan said, “We will keep Digitel as a separate company. This is not a merger… more importantly, we will maintain the unlimited and bucket-priced services of Sun Cellular.” He assured that the PLDT group will officially set itself to developing widely accessible, high-speed internet. “We will make a formal commitment to the government for the benefit of consumers,” he added.

Pangilinan said that the acquisition of Digitel will help PLDT roll out broadband services to 95 percent of the country “in three years.” At present, only two-thirds of the Philippines has high-speed internet access.

The PLDT statement came out in response to the concerns raised by some consumer groups and lawmakers that the merger would allow the telecom giant to market prices, ending the “price wars” that have helped keep telecommunication services at affordable rates.

Rival Globe Telecom of the Ayala group even asked the government “to look into the deal” between PLDT and Digitel. Globe said that regulators should consider ordering PLDT to relinquish some of its redundant frequencies following its takeover of Digitel’s operations.

Pangilinan replied that this should only be done in the event of a scarcity of frequencies for new players in the market, which is not the case. He said, “Our frequencies are enough for the subscribers we have.”

After acquiring Digitel, PLDT will acquire 67 percent of industry revenues. Seven out of 10 mobile users in the Philippines will also be on its network.

Pangilinan, however, admitted that due to the size of the agreement, which is valued at P74.1 billion, a state review may be “warranted.” He assured the government though that the market would remain competitive.

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IT company might shut down its services to LTO

Roy — Tue, 12 Apr 2011 12:11:55 +0000

Stradcom Corp., the exclusive IT service provider for the Land Transportation Office (LTO) warns of a possible shutdown of the database and computer system it operates for the agency if the LTO continues to refuse remitting payments to the private firm. Stradcom provide and maintains LTO’s information technology facilities, including its database and licensing functions.

The IT company has demanded P1.171 billion from LTO for unpaid services rendered since September last year. Company spokesperson Margaux M. Salcedo said, “Since September, payment has been withheld. As of today, it has amounted to P1.171 billion in payables.” Salcedo said the amount represents services that have been delivered.

Stradcom says if the LOT continues the withholding of payments, it could be used as a “force majeure” or a situation beyond its control that Stradcom could invoke to shut down its operations. When that happens, Salcedo said, “LTO employees will be unable to process manually the combined average of 300,000 daily transactions that computerization allows.”

“The process of registering vehicles and drivers licenses will once again take weeks to months instead of being achieved in one hour, as has been made possible by computerization. Criminals will be emboldened. Expect the proliferation of ‘fixers’ as well as ‘carnappers,’” she added.

Earlier, the Department of Transportation and Communication (DOTC) said payments to Stradcom have been withheld due to an ongoing intra-corporate dispute between the company’s current chairman Cezar Quiambao and a group led by Bonifacio Sumbilla and Alderito Yujuico. The LTO has filed an interpleader case with the Quezon City Regional Trial Court Branch 95 to determine the authorized group in Stradcom.

Meanwhile, Salcedo presented three memoranda from the DOTC that directed LTO to pay Stradcom. The first one dated February 22 and was signed by Secretary Jose P. de Jesus ordering LTO to pay Stradcom P751.79 million.

The memorandum read, “To ensure that LTO will not be in default of its contractual obligations under the Build-Own-Operate Agreement dated March 26, 1998, as amended, payment of all amounts due Stradcom should be effected immediately in accordance with the proper procedure agreed upon by the Department, LTO and Stradcom under said agreement.”
The succeeding memoranda, dated March 10 and March 16, were a reiteration of the February 22 issuance.

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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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AirAsia Inc. sets hub of Philippine operations in Clark

Roy — Fri, 25 Mar 2011 11:29:40 +0000

Clark airport in Angeles City Pampanga beats Subic International Airport in Subic, Zambales in bidding for the right to host the hub operation of AirAsia Inc. in the Philippines. AirAsia, Inc., an affiliate of Malaysia’s AirAsia Group, picked Clark as the base of its operation in the country. It will have its office at the Diosdado Macapagal International Airport when it starts operating international flights from the airport in the fourth quarter of 2011.

AirAsia Berhad chairman Tony Fernandez said that their choice of Clark is in line with the airline company’s commitment to developing transportation and tourism hubs outside Manila. Chief executive officer Marianne B. Hontiveros of AirAsia Inc. said, “This is part of our plan to contribute to the development of the country as whole.” She added, “AirAsia Inc. is excited to start contributing to the economy of Clark and the rest of the country by boosting tourism and offering job opportunities to Filipinos.”

The Clark airport is located north of Manila and is accessible to 23 million people from the National Capital Region, Central and Northern Luzon. Incidentally, it is also where the airline’s sister company, AirAsia Berhad has been flying to and from Kuala Lumpur and Kota Kinabalu since 2005.

Hontiveros said, “We plan to make Clark the hub for flights to popular destination including Singapore, Hong Kong, Taiwan, China, Thailand, Korea and Japan,” adding that it would make travelling much easier and more affordable for tourists and overseas Filipino workers.

AirAsia Inc. is owned by Hontiveros, Antonio O. Cojuangco Jr. and Michael L. Romero who has total shares of 60 percent, while the 40 percent is owned by AirAsia Berhad. AirAsia Inc. in Clark will become the 13th hub of the AirAsia Group in the region.

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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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Philippines intensify tourism campaign in India

Roy — Sun, 12 Dec 2010 03:08:56 +0000

A Philippine delegation, headed by the Department of Tourism (DoT), will be flying to India, particularly in New Delhi and Mumbai, to conduct a sales presentation in time for the production of tour packages for the April-June Indian travel season. The DoT is looking to capture a bigger market share of the 15 million outbound tourists from India.

Secretary Alberto Lim of the DoT said that the on-going sales mission will serve as the department’s major drive to showcase Manila and Cebu as ideal destinations for Indian tourists.

Benito Bengzon, Jr., Assistant Secretary for International Tourism Promotions, said “With more than fifty percent increase on target arrivals from India, the mission will ensure that the Philippines will be in the 2011 tour offerings.” While DoT Marketing Team India head Raymund Glen Agustin said, “The program involves meetings with the presidents and CEO’s of top Indian tour wholesalers, one-on-one business meetings between Indian tour operators and their Philippine counterparts, as well as presentation updates on connectivity and entry requirements to the Philippines.”

In the first week of December, a group of 254 top producers of Nerolac Paints in India for their four-day incentive tour. The group personally chooses Philippines for their incentive. They visited Manila, Tagaytay, and Pagsanjan for some sight-seeing, casino gamin, night-life entertainment and shopping activities.

Agustin said the group was the largest incentive group which came from India this year. He said the tour was made possible by the Cutting Edge, an Indian-based tour operator, and its local counterpart Shroff International Travel Care. He added that the arrival of such huge group was the direct result of the department’s marketing and promotional efforts for the Indian Market.

“Cutting Edge participated in the DoT initiated familiarization tour for Indian travel agents last year and has committed to send next year incentive groups covering more than a thousand individuals on a staggered basis,” Agustin said.

For his part, Secretary Lim said aside from the incentive groups, industry partners from India, through their local counterparts, will be sending more tourists to the Philippines. And this will be made more possible with the resumption of the Philippine Airline’s MLA-New Delhi flights in March next year.

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Offer for stronger Business industry

PinoyBusiness — Thu, 23 Sep 2010 09:40:03 +0000

A wish list offered to the Malacañang that includes some of the issues in the business industry. The Management Association of the Philippines (MAP) will submit this wish list to Mr. President Benigno C. Aquino III this last friday on the 17th of september.

Inside the letter are some of the long, medium and short-term issues that seeking some solution and improvements. Some of this issues are the taxation and infrastructure that needed to have an action. And some of the business group said that if the government minimizes the tax structure it can also minimizes the graft and corruption.

The Philippine Chamber of Commerce and Industry (PCCI) also said that they are hoping that the government will prioritized the several issues that are said in the wish list of The Management Association of the Philippines. The Philippine Chamber of Commerce and Industry (PCCI) is also hoping that the government will take action to improve infrastructure that can attract more and more investment and good public services that can improve tourism competitiveness and can lead to a strong economy.

Both Group said that they are looking forward at what the new administration can do especially in fighting the corruption that causes the our economy down under than the other country.

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Chinese delegates who attended Phitex 2010 to push RP as travel destination

Roy — Sat, 11 Sep 2010 08:48:41 +0000

Chinese delegates to the recently held 10th Philippine Travel Exchange (Phitex) at the Manila Hotel said they were impressed by the warmth and hospitality of Filipinos that they immediately enjoyed their stay right on the first two days of their visit.

Kelly Jiao from Shanghai, who led the delegation , said “At first, our group was a bit worried and wary. But after two days, everyone was enjoying her stay and didn’t worry at all as we met with our local counterparts for the Phitex 2010 business meetings.”

As such, the group from China have committed to promote Philippines tourism products and destinations to their countrymen once they returned home from a trip to Palawan.

Likewise, Bob Jia who is the general manager of Shanghai Synwalk International Travel Service, also said they would continue pushing the Philippines to the Chinese market, and described the country as a place of beautiful scenery and wonderful people that the world should see and appreciate.

The Chinese delegates arrived in Manila last August 31, together with the rest of the foreign delegation. They had a welcome dinner at the H2O Hotel, treated to a water, light and laser show at the Ocean Park, had a tour of the Oceanarium, all in the tourism complex at the Rizal Park near Manila Bay.

On the second day, they had a city tour that culminated in a dinner show at the Hyatt Hotel and Casino Manila, where they were treated to a night of Filipino music and world-class entertainment. On the next day, they were all at the Manila Hotel for a full day of pre-scheduled one-on-one business sessions with local sellers of various tourism products.

Tourism Secretary Alberto Lim formally opened the business meetings with a short message that exuded his confidence in hitting the government’s 3.3 million target foreign visitor arrivals for 2010. “I am truly grateful that, despite the challenges we faced the past week and a half, we were still able to attract 96 foreign delegates from around the world and 191 Filipino sellers representing 112 companies. I believe this is a clear statement of your confidence in Philippine tourism,” he said.

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Finance department tapped 6 banks for global bonds

Roy — Sat, 11 Sep 2010 02:22:39 +0000

Six banks are being tapped by the Department of Finance (DOF) for its planned peso-denominated global bonds. Finance Secretary Cesar Purisima said they are planning to launch these global bonds within the month or immediately after the European and US summer holiday. The six banks being mandated for the plan will act as arrangers for the transaction.

The lead coordinators to be tapped by DOF are Citigroup Inc. and Deutsche Bank AG, Credit Suisse Group AG, Goldman Sachs Group Inc. HSBC and JP Morgan Chase & Co., according to an official who is privy to the plan.

Purisima earlier confirmed that the government has given the mandate to several banks for its planned maiden peso-denominate bonds. He also said the government is ready to launch up to $1 billion in global bonds soon. “It’s ready to launch but I leave it up to the Treasure to execute,” he said. The Finance secretary said it could be done anytime soon.

The final size of the global bonds offer would depend on the appetite of the market, as well as the exact timing of the issue, according to Purisima. On whether the government would issue the peso-denominated global bonds ahead of a separately planned dollar bond swap, he said it would depend on “market conditions.” “The bond swap is still a go but we have to check on market conditions. Whichever the market will allow us to do, we will do first,” Purisima added.

The dollar bond is among the plans of the present administration in managing its debts. According to National Treasurer Roberto tan, the government plans to issue 10-year and 20- or 25-year dollar bonds in exchange for maturing bonds in the market. This is part of the efforts to lengthen maturing obligations.

Traders, on the other hand, are expecting the government to push with the peso-denominated global banks ahead of the dollar bond exchange.

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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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Aquino appoints investment banker as finance undersecretary

Roy — Sun, 18 Jul 2010 00:14:01 +0000

Investment banker Philip Sevilla has been appointed by President Aquino as Finance undersecretary for Privatization and the Corporate Affairs Group, as confirmed by Finance Secretary Cesar Purisima recently. Sevilla will be taking over the portfolio which was previously handled by Crisanta Legaspi. He will be handling the difficult task of helping raise revenues for the government by selling state-owned assets.

Sevilla is really not new to the Finance department as he has already assumed the post of Finance undersecretary for Privatization in 2006. Before his stint at the finance department, Sevilla worked for four years as an investment banker for financial services firm Goldman Sachs.

The administration of Aquino hopes to raise P2 billion from the selling of state-owned assets for the year. These comprise of real estate assets and two big-ticket items, which are the Food Terminal Inc. (FTI) property in Taguig and its real estate property in Fujimi, Japan. The government is hoping to finally sell the FTI property this year. It hopes to get at least P7 billion from the said property and raise roughly P3 billion from the lease and development contract of its real estate property in Fujimi.

According the Purisima, the planned sale of the government’s stake in the Malampaya deep water-to-gas project is not yet included in the P2 billion estimated proceeds this year. They are still waiting for better market conditions before selling its stake in the said project.

The Philippine government is selling state assets to plug a widening budget gap that is projected to hit P325 billion this year, revised from an earlier target of roughly P300 billion.

Other recent Aquino appointee include former Philippine National Bank (PNB) president and Negros Occidental Governor Daniel ‘Bitay’ Lacson, who will assume office as chairman of the Government Service Insurance System (GSIS), the state-owned pension fund for government employees.

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Seaweed-durian cupcake, a healthy ‘baon’ for school

Roy — Sat, 29 May 2010 16:40:22 +0000

A healthier cupcake makes for a great alternative ‘baon’ is the product of the research project by a group of people from the Southern Philippines Agribusiness and Marine and Aquatic School of Technology (SPAMAST) in Digos City, Davao del Norte.

The cupcake made from seaweed and durian, which is just in time for the school opening, was made through the collaborative efforts of Arlyn Omboy, Graciela Caballero, Milagros Subaldo, Dr. Nila Nanette Revilla and Dr. Delia Grace Bacaltos, all from the SPAMAST. The seaweed-durian cupcake was their entry to the 2010 Aquatic Technology Competition and Marketplace (ATCOM), wherein there were one of the finalists.

The contest (ATCOM) was sponsored by the Los Baños-based Department of Science and Technology-Philippine Council for Aquatic and Marine Research and Development (DOST-PCAMRD).

The researchers said that the making of seaweed-durian cupcake follows the usual baking process for bread and pastries. The cupcake, which has a shelf life of five days, is a bakery product made from seaweed powder with processed durian jam, uses as raw material locally available Eucheuma spinosum and durian, an exotic fruit which is described as “smells like hell but tastes like heaven.”

During the research process, the team of researchers conducted a consumers’ feedback evaluation to get the reaction of the market on the seaweed-durian cupcake. Most of the respondents which were from Digos City and neighboring towns rated the cupcake as “most acceptable.”

The seaweed-durian cupcake technology was further improved, and was even extended to various seaweed-growing communities in the Island Garden City of Samal and Puntao Biao, Cogon, Digos City. Thanks to the support of the Davao Industry Cluster Capacity Enhancement Project (DICCEP) sponsored by the Japan International Cooperation Agency (JICA) and Department of Trade and Industry (DTI)-Region 11. Arrangements with the DTI and Department of Education (DepEd) are now being made to make the healthy cupcake available in the different ‘Pasalubong’ centers and school canteens.

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Audit of 24 conglomerates to start this week

Roy — Mon, 10 May 2010 06:57:53 +0000

Right after the elections, the Bureau of Internal Revenue (BIR) will start this week their audit of 24 of the biggest conglomerates in the Philippines for their 2009 finances. According to BIR Commissioner Joel L. Tan-Torres said BIR “expects to collect a large amount of tax deficiency” from these group of companies. He said they will be starting to issue letters of authority this week to start the audit.

The BIR commissioner however did not mention the name of the conglomerates who would be audited because he said this would undermine the process. He added though that it would be easy to guess these companies since the BIR was eyeing the “biggest and largest” of them.

“This audit is meant to ensure that related companies are paying the right amount of taxes,” he said. “Being related firms, these companies are in a position to shift income and profits – even create artificial transactions – in a way that would minimize their tax liabilities,” he added.

The audit of conglomerates would be looking into possible transfer pricing, use of tax havens as well as offshore payments. Tan-Torres said the BIR’s national office has named 250 examiners who would be involved in the audit.

Also part of the audit involves looking into the characterization of income, which include documentation transactions; use of fiscal incentives and investment perks; cost of reimbursement and sharing among firms, and use of tax treaties with other countries.

They will also look into withholding taxes, including foreign tax credits; tax accounting differences; issues related to the value-added tax and discrepancies of a company’s data with those from third parties.

Under Revenue Memorandum Order No. 23-2009 issued by the BIR on July 8, 2009 mandates its national investigation division to audit “selected taxpayers” in an effort to advance its initiatives against tax evasion. The order extended the BIR’s audit and enforcement activities to include the probe of corporate taxpayers, inter-related companies and conglomerates “from certain industries.”

Recent RMO No. 36-2010 issued last March 30, meanwhile, set the guidelines and procedures for the conduct of the conglomerate audit program.

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Metro Pacific finally bags SCTEx contract

Roy — Fri, 07 May 2010 12:51:05 +0000

The Metro Pacific Group is confident that it has won the bidding for the concession to operate the country’s longest expressway, the Subic-Clark-Tarlac Expressway (SCTEx). Metro Pacific Tollways Corp. (MPTC) believed it virtually clinched the hotly contested concession after it has submitted an “improved” bid package to the government. “We have submitted a final improved offer for the concession. We understand that they have accepted,” said MPTC president Ramoncito Fernandez.

MPTC’s unit, Manila North Tollways Corp. (MNTC) was declared early this year by the state-owned Based Conversion Development Authority (BCDA) as the only bidder who was eligible for the government contract to manage and maintain operations of SCTEx. Only to be announced later that MNTC’s original offer fell short of the financial requirements under the bid terms of reference.

But Fernandez is confident that with their improved offer, they have given the government a very, very good offer. He did not disclose though the highlights of their amended offer, saying that they could not be discussed in public yet. He stressed that the improved package would be sufficient to meet the BCDA’s debt financing needs for the tollway. He said the final package would very much cover the BCDA’s funding concerns.

In as much as they are very much optimistic for the acceptance of their final offer, the BCDS has to issue an official notice of award on the SCTEx contract. MPTC, however, is confident enough and Fernandez said they are just waiting for it.

MPTC is owned by the Metro Pacific Investments Corp., an infrastructure holding firm of Hong Kong based First Pacific Co. Ltd. which is led by business leader Manuel V. Pangilinan.