MANILA, Philippines – Ayala-led Bank of the Philippine Islands (BPI) got the green light from the Bangko Sentral ng Pilipinas (BSP) to raise up to P30 billion through a bond offering to investors.

In a disclosure to the Philippine Stock Exchange on Thursday, October 19, BPI said that it "received today the advice from the BSP that the Monetary Board approved the request of BPI for authority to issue Long-Term Negotiable Certificates of Time Deposit (LTNCTD) in the aggregate amount of up to P30 billion."

"The LTNCTD will be issued in one or more tranches with the first tranche targeted to be issued within the year, subject to prevailing market condition. The issuance will support BPI's expansion plans and diversify the Bank's funding sources," BPI added.

Similar to bonds, LTNCTDs are negotiable certificates of deposit with a designated maturity, and represent a bank's obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit.

One pertinent feature of LTNCTDs is that a holder's interest income is exempt from withholding taxes if the LTNCTDs are held for at least 5 years.

Fundraising for expansion

With the move, BPI becomes the latest local bank to raise funds for expansion.

The country's top banks have so far raised around P45.72 billion from the issuance of LTNCTDs as listed at the Philippine Dealing and Exchange Corporation (PDEx).

The offerings were led by the country's biggest bank, Sy family-controlled BDO Unibank, which raised a record P11.8 billion through the issuance of LTNCTDs in August, bringing the total listed amount of the SM Group on PDEx to P155.24 billion.

Gotianun-led East West Banking Corporation raised P10 billion from 5 tranches of LTNCTD issuances.

More recently, Dy-led Security Bank Corporation launched the 1st tranche of its planned P20-billion LTNCTD issuance earlier this week. The bank looks to raise at least P5 billion to fund its asset growth and lengthen the maturity profile of its liabilities.

Lucio Tan-led Philippine National Bank (PNB) also launched the 3rd tranche of its planned P20-billion LTNCTD issuance earlier this month, aimed toward raising at least P3 billion. The bank has so far raised P3.76 billion of the P20 billion, which is also intended for long-term corporate purposes as well as part of overall liability management. – Rappler.com

MANILA, Philippines – Budget Secretary Benjamin Diokno said he is not concerned over the government's capability to fund its over P8-trillion infrastructure program in the next 5 years, as it expects an additional fiscal space of P500 billion.

Diokno said the amount is a combination of the increase in the deficit to gross domestic product (GDP) cap, and the expected revenue gain from the proposed comprehensive tax reform program. (READ: EXPLAINER: Senate, House versions of the tax reform bill)

"As far as infrastructure is concerned, there will be no problem with the budget. We are pursuing what we call an expansionary fiscal policy. We have increased the deficit to gross domestic product ceiling from 2% to 3%," Diokno said at the 43rd Philippine Business Conference & Expo on Thursday, October 19.

Several economists had raised concerns over the declining revenue yield of proposed tax reform packages. The Senate ways and means committee's initial version of the tax reform bill would only yield P59.9 billion in total incremental revenues. This is less than half of the P133.8 billion under the version approved by the House of Representatives last May.

The Department of Budget and Management (DBM) chief said the government expects at least P100 billion from the tax reform program. "We expect, on average, about P500 billion additional in fiscal space," Diokno added.

Despite the expansion in fiscal strategy, Diokno said debt-to-GDP ratio is seen to shrink over the medium term. (READ: Balanced budget 'impractical' for the PH until 2022 – Diokno)

He wrote in a column for BusinessWorld that the government projects the debt-to-GDP ratio declining to 36.7% in 2022, from 42.2% in 2016.

Socioeconomic Planning Secretary Ernesto Pernia said the Duterte administration's economic managers will talk to senators to convince them to make their version of tax reform "closer" to that of the House of Representatives, to get enough financial muscle needed to implement the country's ambitious infrastructure program.

Based on estimates of the National Economic and Development Authority (NEDA), the infrastructure program is expected to generate:

• 106,824 jobs in 2017
• 823,696 jobs in 2018
• 1,115,999 jobs in 2019
• 1,228,963 jobs in 2020
• 1,399,463 jobs in 2021
• 1,705,023 jobs in 2022

While the average rate for infrastructure spending in the past administrations was 2.6% of GDP, the Duterte administration plans to ramp it up to 5.32% of GDP for 2017 alone with an infrastructure budget of P847 billion. 

The Duterte administration plans to gradually increase the public infrastructure budget to P1.2 trillion in 2018; P1.4 trillion in 2019; P1.5 trillion in 2020; P1.7 trillion in 2021; and P1.9 trillion in 2022. – Rappler.com

MANILA, Philippines – The Philippine peso weakened against the United States dollar to hit a new 11-year low, amid higher demand for the dollar and talks of a new chief at the US Federal Reserve.

The local currency on Thursday, October 19, shed 12.5 centavos, closing at P51.530 to $1. This was from the previous day's P51.405 to $1.

The Philippine peso had opened at P51.43 against the greenback on Thursday and hit an intraday high of P51.38. (READ: Philippine peso now at its weakest in a decade)

Thursday's close is the weakest since August 24, 2006, when it closed at P51.60 against the US dollar. 

BSP Deputy Governor Diwa Guinigundo said the depreciation of the peso could be attributed to the effects of higher corporate demand for imports and trade financing.

He also cited US President Donald Trump's recent meeting with Stanford University economist John Taylor as a possible replacement for US Fed Chairperson Janet Yellen, whose term is set to expire in February.

"Rumors about a possible hawkish Fed chairman in John Taylor appeared to have spooked the market. There seems to be some nervousness in the market," Guinigundo said.

Consistent with trend

The BSP official said the peso movement continues to be consistent with the trend. (READ: How a Fed rate hike impacts the Philippine economy)

Guinigundo said the Philippine peso's depreciation remains "manageable and its impact on inflation has considerably gone down."

"In short, our latitude in allowing greater flexibility in the exchange rate has widened. When the cycle reverses, we should see some upward shift," he added.

For Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, the depreciation was affected by the hawkish statement from New York Fed president William Dudley.

"The peso further weakened today likely due to hawkish remarks from Dudley, who affirmed views of more US rate hikes ahead. The peso fell against the dollar, despite softer US housing data and caution ahead of the ECB (European Central Bank) meeting next week," Dumalagan said.– Rappler.com

DAVAO CITY, Philippines – The company running the Apo View Hotel is spending P280 million to fund a long-needed upgrade for Davao City’s oldest operating hotel, which went through legal battles and a foreclosure threat over the years.

Edmundo G. Las, managing director of Eurotel, said at least P150 million of the budget had been remitted to the contractors.

“We have to maintain the legend but inside we have to infuse a new design,” Las said in a press conference on Thursday, October 19.

The management of Apo View Hotel was transferred to the Icon Hotel group of Eurotel in 2016 from the Pamintuan family.

Las, also chief executive officer of the Hotel Sogo Chain, said the new management is keen on improving its facilities and the food it serves to its clients.

“The facade stays,” he explained.

At the sidelines of Apo View Hotel’s relaunch on Thursday, Las also said Eurotel is looking into constructing another hotel and a condominium within the hotel’s 9,000 square meter-property.

“We’re looking at 6 floors. This will be compete to one another but it will cater to a different level of hotel clientele,” he said.

Eurotel’s plans for one of Davao City’s premium landmark drew elation from Department of Tourism Region 11 Director Roberto Alabato III, who on Thursday noted how residents here associate the hotel with Davao’s upscale nightlife in the past.

“We’re thankful that Apo View is looking at the past (as well),” said Alabado who was referring to the management’s strategy in revamping the hotel.

The 156-room hotel is considered a premium landmark, being the oldest operating hotel here. It hosts Davao’s oldest casino, the Casino Filipino Players club.

It was Davao City’s Pamintuan family who started Apo View Hotel as a lodging facility for businessmen in 1948, few years after the Battle of Davao, when Filipino guerillas and US forces fought together against Japanese forces.

The Pamintuan family, now the hotel’s former operator, faced legal battles against its then-creditor, Banco Filipino Savings and Mortgage Bank, which threatened to foreclose their property over a P270 million loan which rose to more than P300 milllion after the bank claimed the management did not comply with its obligation.

Years later in 2010, the former operator won its case against the bank, which would later be ordered to be closed by the Bangko Sentral ng Pilipinas. – Rappler.com

MANILA, Philippines – Planning to quit your job to start your own business? Interested in investing your money and resources to a startup? Here are the things you should know.

The 2017 Philippine Startup Survey provided significant insights into the local startup scene. Begun by QBO Innovation Hub and PwC Philippines, the survey was conducted among 106 startup founders to provide a snapshot of the current state of startups in the country.

What exactly is a 'startup'

A startup is not your typical brick and mortar business. According to Trade and Industry Undersecretary Nora Terrado, what distinguishes a startup is its potential to scale, the use of innovative technologies and business models, and the intention to make a difference by solving a social problem.

The report says there are now more than 300 startups in the country, most of which were founded between 2012 and 2017.

Terrado added that technology does not only include internet and mobile applications, but also innovations in the field of biotechnology, electricity, and finance.

Capital is still the biggest challenge for startups

Majority – or 88% of the interviewed founders – said capital requirement was the number one hindrance they encountered when they were starting, followed by regulatory requirements (54%), and general economics or business conditions (50%).

About 63% of the founders said they plan to raise funding through external parties such as venture capital funds and other investors.

To raise equity-free funding, some of them also availed of grants and joined startup competitions.

Founders are thinking global and aiming to go public

Tapping international markets such as Indonesia, Thailand, Malaysia, and Vietnam in the next 3 to 5 years was identified as a growth plan and strategy by 95% of the founders.

Among the interviewed founders is Rappler's CEO and Executive Editor, Maria Ressa. Rappler is now present in Indonesia. Other local startups that have expanded to other ASEAN countries are Flyspaces, an online platform for coworking spaces and Coins.ph, a financial services platform.

More so, 63% of the startup founders said they are aspiring to conduct their initial public offering (IPO) in the next 5 to 7 years.

What investors are looking for

Manny Ayala, Managing Director of Endeavor Philippines, said in the report that they look at 3 things when evaluating startups to invest in: the founder or entrepreneur, the business, and the timing.

Goldy Yancha, Associate Director of Ideaspace, added that when it comes to providing their equity-free grants, they look at the team's composition, their understanding of the market size and their business value proposition.

The survey estimates that there are more than 30 angel investors, 20 venture capitalists, and 20 incubators and accelerators in the country.

More than finances, startups are looking for experienced investors

A total of 94% of the startup leaders said they are planning to welcome an investor in the next three years.

However, more than financial capacity, 72% of them ranked industry expertise and experience as their top consideration when it comes to tapping potential investors.

Philippine laws and regulations not conducive to startups

The legal and regulatory systems of the country are not innovation-friendly, said Atty. Alexander Cabrera, Chairman and Senior Partner of PwC Philippines.

He added that although there are pending bills such as the Innovative Startup Bill (Senate Bill No. 175) and the Philippine Innovation Act, which shall establish innovation-related policies and provide startups with tax incentives and funding, the government should provide alternatives to address these issues immediately.

The startup founders identified the following as main areas for improvement: improved tax incentives for startups (59%), improved ease of doing business (59%), and easier access to capital (55%).

The country's startup ecosystem is off to a great start

The spirit of entrepreneurship is seen to be growing in the Philippines as evidenced by the existing 900,000 micro, small, and medium enterprises (MSMEs) which make up 90% of all enterprises in the country. 

In the past 5 years, more Filipinos, specifically millennials, are venturing into entrepreneurship. The number of investors, mentors, and incubators is growing. Government and private sector collaborations have also improved.

While the local startup community looks up to more mature startup ecosystems like Silicon Valley and Singapore, the report concluded the Philippines was off to a great start. – Rappler.com 

MANILA, Philippines — Online investing platform COL Financial Group Incorporated (COL Financial)  announced a possible breach into their system that could enable suspected hackers to access client infromation.

“Please be informed that the Company detected a possible breach involving some client information,” COL Financial said in a disclosure to the Philippine Stock Exchange on Friday, October 20.

The firm stressed however that “this possible breach has not affected the account balances and stock positions of its clients, nor have transactions been compromised."

In a letter sent to clients on the same day, the firm said that the breach has not been confirmed and assured clients of the integrity of their account balances and stock positions.

“In addition we have internal control procedures that prevent unauthorized withdrawals from [client’s] accounts,” the firm noted.

COL Financial also pointed out it “has taken action to further strengthen the security of its systems and have filed the necessary reports to the National Privacy Commission.”

The trading platform also reminded clients to regularly change their password as standard practice and directed them to helpdesk@colfinancial.com should they have further questions.

The firm’s President and CEO, Conrado Bate, assured investors “that they would be able to trade normally on Monday," in an interview with the Philippine Daily Inquirer on Friday afternoon.

Col Financial, formerly CitisecOnline.com, is the country’s largest online trading platform with over 200,000 users and P62 billion in assets being managed. –Rappler.com

MANILA, Philippines – Ramon Ang-led Petron Corporation took the Philippine National Oil Company (PNOC) to court for allegedly breaching their lease agreements by seeking to void renewal clauses.

Petron said in a statement on Sunday, October 22, that it asked the Mandaluyong City Regional Trial Court (RTC) to issue a temporary restraining order (TRO) to "stop PNOC from performing acts aimed at ousting Petron [from] its leased properties."

The country's largest oil refiner argued that the PNOC's actions could hurt its operations, its shareholders, and the economy.

Petron has been offering to negotiate its agreements with the PNOC since 2016. (READ: Petron net income surges to over P8 billion in 1st half of 2017) 

But Petron said it had to seek court intervention after PNOC President Reuben Lista sought to waive the renewal clauses in their lease agreements, which would expire in 2018. Lista had said that the contracts' provisions are allegedly disadvantageous to the government.

The contracts cover a total of 32.2 hectares across the Philippines. Petron has established 67 service stations, 24 bulk fuel plants, and a $3-billion refinery – located in Bataan – within the PNOC properties.

"If PNOC will continue to disregard its reciprocal obligations on the conveyance of our land, then they should return the properties to us. Petron has invested billions of dollars on these properties," said the oil refiner, through its legal team from Poblador Bautista and Reyes.

The company supplies more than a third of the Philippines' petroleum requirements.

In follow-up letters dated August 1, 2017 and August 31, 2017, Lista called for the abandonment and cleanup of the contested sites on or before the expiration of the agreements next year.

Negotiating team formed

For the government's side, Energy Secretary Alfonso Cusi earlier said his office has formed a negotiating team to resolve the rental issue.

"The board appointed a negotiating team. It is composed of 3 directors and I think another 3 from the management side," Cusi had said. 

Cusi, who also serves as chairman of the PNOC, added that the negotiating team's aim is to seek a "win-win solution."

The leased properties were initially owned and acquired by Petron for its refinery, distribution, and sales operations. (READ: Meet Ramon Ang, Filipino billionaire and Duterte's friend)

But in 1993, the Ang-led oil refiner was compelled to give up its properties to the PNOC to comply with privatization requirements.

Petron said the properties were transferred to the PNOC at book value, in consideration of the PNOC leasing the properties back to Petron on a long-term basis and according to its operational requirements.

"By unilaterally setting aside the renewal clauses of the lease agreements and by categorically declaring its refusal to honor them, PNOC committed a fundamental breach of its lease agreements with Petron," the oil refiner said.

For Ang, this would be a risk to "billions of dollars of investment."

Petron has been eyeing the expansion of its plant in Bataan by leasing additional PNOC land. Once expanded, plant production would increase to 260,000 barrels a day, from the current 180,000.

Ang said expanding the old refinery will cost $5 billion to $10 billion.– Rappler.com

MANILA, Philippines – PLDT Incorporated completed its P1-billion domestic fiber optic cable links expansion in Mindanao, boosting its capacity and network in the region.

PLDT said in a statement on Sunday, October 22, that the fiber optic cables have been installed underground, making these less vulnerable to damage caused by strong winds, falling trees, and utility poles.

Spanning over 300 kilometers, the fiber infrastructure runs through the provinces of Agusan del Norte, Agusan del Sur, Davao del Norte, and Davao del Sur.

"With the completion of this project, customers using our fixed and mobile phone networks in Mindanao will experience even more superior voice, data, and multimedia services," said PLDT chairman and chief executive officer Manuel Pangilinan. (READ: PLDT builds 1st 'Fibr City' in Mindanao)

PLDT said this move adds to the capacity in the domestic fiber optic network (DFON) facilities in the area, which has over 300 gigabits per second (gbps) installed in the local loop. The firm targets to raise the capacity to 400 gbps by the end of 2017.

The newly-installed fiber optic cables augment the existing network that spans from Cagayan de Oro to Malaybalay, Davao, Tagum, Bayugan, and Butuan.

More investments

"This fiber redundancy project opens up the region for more investment and development projects that will be enabled by PLDT's expanded network capacity, and improve the quality of services to industries and consumers located in Mindanao," said PLDT chief revenue officer Eric Alberto.

PLDT has invested P300 billion over the last decade to roll out its expansive network infrastructure both for domestic and international. (READ: PLDT, Globe sign IP peering after 6 years)

In 2016 alone, it set aside P48 billion in capital spending budget, allocating bulk of it to further expand and fortify its domestic fiber infrastructure.

This year, PLDT announced the expansion of its fiber-powered fixed line network by about 80% to reach around 4 million homes passed by the end of 2017. 

PLDT said it is also deploying hybrid technology to allow existing customers connected via copper facilities to enjoy fiber-like speeds. – Rappler.com

MANILA, Philippines – Philippines AirAsia Incorporated targets to make the Clark International Airport its main hub for operations, as the Ninoy Aquino International Airport (NAIA) has inadequate space for the budget airline's fleet expansion, its chief said.

To sustain its operations, the Clark International Airport Corporation (CIAC) has waived the budget airline's airport, landing, and takeoff fees, according to Philippines AirAsia chief executive officer Dexter Comendador.

It was in March this year when Philippines AirAsia returned to its Clark roots. In 2013, the budget carrier had moved its operations to NAIA Terminal 4 in Manila after its then-affiliate Zest Airways Incorporated suffered heavy losses.

"We plan to establish Clark as our main hub, because Manila is too crowded. If I have 70 planes in 10 years, I do not have a place to park in Manila," Comendador told reporters on the sidelines of a briefing in Taguig City last week.

The local airline is planning to increase its fleet to 17 jets this year from the current 14 to accommodate its new operations.

70 airplanes

In the next 3 to 5 years, Comendador said Philippines AirAsia targets to double its fleet. By 2032, it aims to have 70 planes.

"Since we are opening Clark as a hub, we plan to fly to Korea, China, Malaysia, Singapore, Hong Kong, Macau, and Taipei," Comendador said.

To spur outbound traffic, the CIAC waived landing and takeoff fees as well as other airport charges for Philippines AirAsia.

CIAC chief Alexander Cauguiran earlier said discounts on similar fees have been granted to other airlines operating at the Clark International Airport.

Philippines AirAsia operates a fleet of 17 aircraft with domestic and international flights out of hubs in Manila, Cebu, Kalibo, and now Clark.

It flies to Manila, Davao, Cebu, Kalibo, Tacloban, Tagbilaran, Puerto Princesa, Clark, Shanghai, Taipei, Incheon, Hong Kong, Macau, Kuala Lumpur, Kota Kinabalu, and Singapore. – Rappler.com

TOKYO, Japan – Tokyo's Nikkei 225 on Monday, October 23, posted the longest winning streak in its nearly 70-year history as markets cheered the weekend election victory of Japan's pro-business prime minister.

The benchmark index rose 1.11%, or 239.01 points, to end the day at 21,696.65, its 15th consecutive rise and the longest since it came into existence in 1950.

The broader Topix index gained 0.84%, or 14.61 points, to finish at 1,745.25 yen.

The gains were driven by hopes that premier Shinzo Abe's growth blitz – a mix of huge monetary easing, government spending and reforms to the economy – will continue.

"It's symbolic" that the record winning streak came a day after Abe won the vote, Hikaru Sato, senior technical analyst at Daiwa Securities, told Agence France-Presse.

Abe – who came into power in late 2012 on a ticket to reignite the lumbering economy – is now on course to become the country's longest-serving premier. – Rappler.com

MANILA, Philippines – The Philippine Competition Commission (PCC) will study its next steps after the Court of Appeals (CA) affirmed the validity of the P69.1-billion San Miguel Corporation (SMC) telecommunications buyout deal.

"The commission will pursue the appropriate legal option once we have formally received the decision," PCC Chairman Arsenio Balisacan told Rappler on Monday, October 23.

CA Associate Justices Ramon Bato Jr, Manuel Barrios, and Maria Elisa Sempio Diy voted to nullify the pre-acquisition review conducted by the PCC for the buyout by PLDT Incorporated and Globe Telecom Incorporated of SMC's telco assets.

Bato penned a 54-page decision, saying that the anti-trust agency "gravely abused" its discretion when it ordered a full review of the buyout despite PLDT's and Globe's compliance with Memorandum Circular 16-002.

Memorandum Circular 16-002 requires parties to notify the PCC about transactions through a letter.

The appellate court said in its decision that the PCC violated the telcos' constitutional right to equal protection under the law when it refused to grant the "deemed approved" status of the deal despite compliance with the memorandum. 

The CA's decision to order the PCC to stop its review of the buyout was made even as several independent researchers described the transaction as "clearly anti-competitive." (READ: San Miguel's sale of telco business: Will consumers benefit?)

Cease and desist

Like the PCC, PLDT and Globe said on Monday that they have yet to receive a copy of the CA decision. (READ: Battle lines drawn over San Miguel's telco buyout deal)

The PCC, however, stood its ground, saying it is firm in its resolve to perform its mandate under the law.

"We note that a year after the sale, the public continues to complain of slow, expensive, and poor quality of internet and mobile services," the PCC said in a separate statement.

If anything, the PCC said that the ruling "has further fueled" its determination to "safeguard the market and promote the interests of consumers."

It was also the CA Special 12th Division that previously denied the petition of the PCC to be allowed to review and investigate the SMC telco buyout deal.

Last April, the PCC took the battle to the Supreme Court (SC), asking it to lift the injunction on the review of the transaction and to prevent parties from further implementing terms of the deal. (READ: Jobless soon: 400 consultants of scrapped 3rd telco player)

For PLDT chairman Manuel Pangilinan, this development means the two telcos can proceed with the utilization of frequencies.

"Well, good. Then we can actually proceed to implementing the agreement with San Miguel on the use of the frequencies, so we will proceed with the work of dealing with the relevant issues," Pangilinan told reporters on the sidelines of a media launch in Makati City on Monday.

"We just assumed that the frequencies are needed for our business for 3G and 4G, so we just assumed whatever the ruling might be but we have to proceed because we're being criticized for our service," Pangilinan added.

The deal gave PLDT and Globe access to the 700 megahertz (MHz) spectrum that regulators had assigned to San Miguel's telco business.

The 700 MHz frequency was then used by the two telcos to put up more cell sites nationwide in a "more affordable and faster way."

Meanwhile, Globe senior vice president for law and compliance Marisalve Ciocson-Co said her firm will defer comment until it receives a formal copy of the CA decision. – Rappler.com

CHIBA, Japan – Toshiba's president Tuesday, October 24, apologized "sincerely" over the $18-billion sale of its prized memory chip business, as shareholders demanded answers over the deal seen as pivotal to the survival of one of Japan's best-known firms.

Bowing deeply at the start of a tense shareholders' meeting, Satoshi Tsunakawa said: "We sincerely apologize for causing problems and worry."

More than 600 investors poured into the meeting as they voted in favor of the sale to a consortium led by US investor Bain Capital – which includes US tech giants Apple and Dell as well as South Korean chipmaker SK Hynix – after months of wrangling.

Angry jeers rang out from some stockholders who had little choice but to agree to unload the division so the cash-strapped company can plug massive losses at its US nuclear division, Westinghouse Electric.

Tsunakawa pledged to finish the sale by the end of March 2018 and stressed: "We will continue to have honest management, and improve our internal governance."

That pledge did not sit well with one 77-year-old pensioner who owns Toshiba stock, which has plunged about 25% since the losses were made public in late December.

"I cannot believe what the executives are saying about turning the company around," he told Agence France-Presse.

"They all look smart and are eloquent. I wonder if they knew about the losses at Westinghouse years ago."

Former Toshiba employee Masayuki Sakurai said the firm's top brass was evasive about what would happen if the planned sale were to fall through.

"It's still not clear if the memory chip sale will be done by March and they couldn't give us a clear answer on what would happen if it was unsuccessful," Sakurai said. "That's worrying."

The chip unit brought in around a quarter of Toshiba's total annual revenue and is the crown jewel in a vast range of businesses ranging from home appliances to nuclear reactors.

Toshiba, the world's number-two chipmaker behind Samsung, narrowly averted a delisting this year, but it still faces the humiliating prospect of being yanked from Japan's premier stock exchange if the sale does not raise enough money.

And some investors had doubts about whether things would change at the firm, which was recovering from a 2015 accounting scandal when the huge US losses were made public.

On Monday, October 23, the firm said it would post a 110 billion yen ($970 million) net loss in the current fiscal year because of a tax bill linked to the massive sale.

'It's really bad'

"Executives never give us clear answers at these meetings," complained Ken Futoo, a 57-year-old former Toshiba employee turned real estate agent said before the meeting.

"They just do what big shareholders and the banks tell them to do. I regret that they have to sell the chip division. It's really bad but there was no choice if the banks told them to sell it."

He warned Toshiba could find itself in trouble again, despite the much-needed cash injection.

"What's at issue is the company's governance," Futoo said.

The Japanese industrial giant is trying to recover from the disastrous acquisition of Westinghouse, which racked up billions of dollars in losses before being placed in bankruptcy protection.

Those losses came to light as the group was still reeling from revelations that top executives had pressured underlings to cover up weak results for years after the 2008 global financial meltdown.

The twin crises were a major embarrassment for a cornerstone of Japan Inc, which traces its history back as far as 1875 when Toshiba started life as a telegraph factory in what is now Tokyo's Ginza shopping district.

"I came to listen to the president to find out why Toshiba, which used to be a great company, is now in this trouble," said Nobuko Kaneko, a 60-year-old teacher.

"There are many bright people I know, including friends, who worked for the company." – Rappler.com

MANILA, Philippines – Listed holding firm Millennium Global Holdings Incorporated is no longer buying an 81% stake in Calata Corporation, after the local bourse expressed doubt over the embattled agribusiness firm's plan to spin off its assets and avoid the involuntary delisting route.

This is the latest development in Calata's delisting saga, which was a result of its multiple violations of the disclosure rules set by the Philippine Stock Exchange (PSE).

To save the firm from being involuntarily delisted from the PSE, Calata had decided to spin off its assets and sell an 81% stake to Millennium Global.

Ending "with a firm handshake," Millennium Global on Tuesday, October 24, disclosed its decision to cancel its plan to acquire a majority stake in Calata.

"The company shall instead tap its other business opportunities and areas of growth to fortify its business within the country and abroad," Millennium Global corporate secretary Lyra Gracia Fabella told the local bourse, without divulging the exact reason for the collapsed acquisition talks.

The decision of Millennium Global's board of directors to no longer buy into Calata comes after PSE president and chief executive officer Ramon Monzon said Calata's plan to be the vehicle for a backdoor listing as subsidiary of the holding firm is "not workable" as it involves "so many uncertain things."

According to Monzon, Calata's proposal would need the approval of the Securities and Exchange Commission (SEC) on the proposed increase in authorized capital stock to facilitate the entry of Millennium Global.

The agribusiness company would also need the approval of its shareholders for the proposed sale of an 81% stake to Millennium Global, Monzon had said.

To give it a chance, the PSE then proposed that Calata delist voluntarily on the condition that it must conduct a tender offer to small shareholders.

Biggest PSE penalty

Following the PSE proposal, the listed agribusiness firm of self-made businessman Joseph Calata stood its ground by telling shareholders that selling out to Millennium Global remains the best solution to save Calata.

Calata said it has only "around P400 million in retained earnings as of end-2016," which is below the P1 billion needed to conduct a tender offer to small shareholders.

An involuntary delisting is among the biggest penalties imposed by the PSE. Firms that are involuntarily delisted from the PSE – like what happened to Alphaland Corporation – are not allowed to relist within 5 years of being delisted.

Under this "blackout rule," officers or directors of involuntarily delisted companies are also disqualified from becoming officers or directors of any company applying for listing with the PSE.

The PSE last July 22 initiated a delisting procedure against Calata for committing 29 violations of Section 13.1 of the disclosure rules from November 29, 2016 to June 20, 2017.

Section 13.1 provides that a listed firm should file within a 5-year period any direct and indirect ownership change of its directors and principal officers.

Calata also committed 26 violations of Section 13.2, which prohibits directors or principal shareholders of a listed firm from trading the company's stock when material non-public information is obtained and up to two full trading days after the price-sensitive information is disclosed.

Trading of Calata stock has been suspended since June 30.

Back in 2012, Calata faced a complaint before the Department of Justice after 13 of its employees allegedly manipulated the share price of the listed agribusiness firm, according to the SEC.

In 2016, Calata tried to diversify into gaming by partnering with a US-based investment group and a Macau-based gaming operator to create a real estate and investment trust (REIT) for a P65-billion, 14-hectare casino resort on Mactan Island, Cebu. Talks, however, also collapsed. – Rappler.com

MANILA, Philippines – Gokongwei-led budget carrier Cebu Pacific Air launched a new program to train would-be pilots in Australia.

Dubbed the Cebu Pacific Cadet Pilot Program, it seeks to address the airline's expansion requirements over the next 5 years. The training will be conducted in partnership with Australia's Flight Training Adelaide (FTA).

The aim is to train 250 Filipinos who will subsequently join the corps of pilots of Cebu Pacific.

"Over the next 5 years, Cebu Pacific will be investing $25 million to train 250 cadet pilots to become full-fledged First Officers and eventually Captains. The program will allow us to train homegrown Filipino pilots with best-in-class international standards," Cebu Pacific chief executive officer Lance Gokongwei said during the launch of the program on Tuesday, October 24.

Cadet pilots will undergo a 56-week program that features integrated flying training, flight theory, and education courses.

After completion of the program, the cadet pilots will become First Officers at Cebu Pacific, flying both domestic and international routes.

The airline will initially shoulder the cost of the training, with payments amortized through salary deductions over a maximum period of 10 years.

Changing the pilots' game

One major reason for the program is to address the need of Cebu Pacific, and the overall aviation industry, for more trained pilots.

Cebu Pacific vice president for flight operations Sam Avila noted that there are around 290,000 commercial pilots globally this year, while around 440,000 will be needed in 2027.

Of the estimated 440,000, around 180,000 need to be captains, and some 220,000 expected to be flying have not yet begun training due to prohibitive costs.

"It's expensive to become a pilot and there's no timeline for a return on investment because employment is not guaranteed, which limits the pool of pilots available," Avila explained.

He estimated the cost to be around P2 million to P3.8 million for a 12-month course which does not yet include license and certification expenses.

"This program changes the game in that it is company-sponsored so it broadens the selection pool to provide equal opportunities to qualified Filipinos of all financial means," Avila added.

Cebu Pacific said 16 candidates will be chosen per batch, with 3 batches of cadet pilots to be sent to Australia per year.

The application process begins with an online screening, followed by an on-site screening for core skills and pilot aptitude tests, among other examinations, where a fee of AU$425 or around P17,000 will be charged. Cebu Pacific and FTA will jointly select the final candidates.

The program is open to all Filipinos who are college graduates, proficient in English, and hold passports valid for at least two years prior to the start of the program.

The program will start by the beginning of 2018, with the first batch of 16 cadet pilots aimed to be selected by December this year. Those interested can apply here. – Rappler.com

MANILA, Philippines – To fast-track key government projects, President Rodrigo Duterte has replaced some members of the board of the National Economic and Development Authority (NEDA), which is tasked to review and approve national government and corporate deals costing at least P2.5 billion.

Malacañang released Administrative Order No. 8 on Tuesday, October 24. Executive Secretary Salvador Medialdea signed it by the authority of the Presidnet on October 20.

AO 8 reorganized the composition of the NEDA board, its executive committee, and the Investment Coordination Committee (ICC).

Duterte added the cabinet secretary, energy secretary, transportation secretary, head of Mindanao Development Authority, and the deputy governor of the Bangko Sentral ng Pilipinas (BSP) in the  newly reorganized NEDA board.

He removed from the board the secretaries of agriculture, environment, labor, and the interior. (READ: Major railways, national transport policy get NEDA Board approval)

The executive secretary, budget secretary, finance secretary, trade secretary, and public works secretary remain as members of the NEDA board.

"It is the policy of the administration to streamline the decision-making process in the bureaucracy, including the ICC and NEDA Board, for a more effective and speedy disposition of matters presented for their approval," AO 8 read.

Reactivating ExCom

Under AO 8, the NEDA board is allowed to invite heads of other departments and agencies when needed.

Aside from the NEDA board reorganization, Duterte ordered the reactivation and reorganization of the executive committee (ExCom) of the NEDA board.

Chaired by the President and vice-chaired by the socioeconomic planning chief, the NEDA Board ExCom is tasked to provide policy direction and resolve issues involving few agencies or a specific socio-economic sector, without the need to covene the entire NEDA board.

The committee also has the power to approve development plans and programs consistent with the policies set by the President, and to confirm ICC-approved projects classified as "extremely urgent" by the ICC.

Members of the NEDA Board ExCom include the Philippines' executive secretary, cabinet secretary, finance secretary, and budget secretary.

From June 2016 to September 2017, data from NEDA showed that it has approved a total of 35 projects, ranging from agriculture to public infrastructure.

One of the biggest projects approved by the NEDA Board under the Duterte administration is Phase One of the Metro Manila Subway Project.– Rappler.com

Bookmark this page to watch the livestream with Alibaba founder Jack Ma on Wednesday, October 25, at 10AM

MANILA, Philippines – Chinese business magnate Jack Ma faces the media at an exclusive press conference in Manila on Wednesday, October 25. 

One of the richest men in Asia, Ma is the founder of Alibaba, a conglomerate of Internet-based businesses.

Watch the livestream of Ma's press conference on Rappler. – Rappler.com

Bookmark to watch the Asian Institute of Management's memorial service for Washington SyCip on Wednesday, October 25, at 4 pm

MANILA, Philippines – The Asian Institute of Management (AIM) hosts a memorial service for its late founder Washington SyCip.

SyCip died on October 7, while on a Philippine Airlines (PAL) flight to Vancouver. He was 96.

Loved ones and former colleagues are set to pay tribute to the business icon. Watch the memorial service live on Rappler. – Rappler.com 

MANILA, Philippines – John Gokongwei Jr, one of the country’s enduring business icons, added yet another feather to his cap as he was named the Management Association of the Philippines’ (MAP) Man of the Year for 2017.

The JG Summit Incorporated founder and Chairman Emeritus and the country's 2nd richest man  now adds this award to the ASEAN Business Legacy award he garnered this September.

MAP’s Man of the Year award is a prestigious award that the organization confers on individuals in the business community or government for attaining unquestioned distinction in the practice of management and for contributing to the country’s progress.

In a statement on Tuesday, October 24, MAP said that the entrepreneur “was chosen due to his business acumen and management qualities which steered the Gokongwei Group into remarkable growth through his foresight and exceptional ability to launch new ventures and transform existing ones to better adapt to challenging times and an unpredictable future”.

Another reason MAP cited was his “leadership in making the Gokongwei’s Group a substantial contributor to national development," and indeed, the firms he has founded is weaved into the daily lives of millions of Filipinos.

The Gokongwei Group of Companies includes the holding firm JG Summit, which is the parent firm of airline Cebu Pacific, food manufacturer Universal Robina Corporation, real estate company Robinsons Land, Robinsons Bank, JG Petrochemicals, and Global Business Power.

Besides those firms, JG summit also holds an 8% stake in the country's largest telco PLDT, a 30% stake in the country’s largest power distributor Meralco, and a 37% stake in Singapore-listed United Industrial Corporation, the parent firm of Singapore Land.

JG Summit was listed on the Philippine Stock Exchange in 1993 with an estimated market capitalization of $135 million, which grew to an estimated $1.8 billion in 2007 as it celebrated its 50th anniversary. Today, its market capitalization stands at over $10 billion.

Gokongwei is also the founder of Robinsons Retail Holdings Incorporated (RRHI), the second largest retailer in the country which features department stores, supermarkets, convenience stores, hardware stores, pharmacies, coffee chains, and specialty shops.

Some of the well-known brands under RRHI include Robinsons Supermarket and Department Store, Ministop, Toys'R’Us, True Value, True Home, South Star Drug, the Generics Pharmacy, Topshop, Shiseido, and Benefit.

MAP also lauded Gokongwei "for strengthening the identity of companies under the Gokongwei Group as socially responsible corporate citizens through the Gokongwei Brothers Foundation’s developmental and scholarship programs on science, technology, engineering and math (STEM) education."

Gokongwei, the group added, was chosen as "an entrepreneur par excellence and an exemplar of Filipino talent… and his contributions to shared national values has inspired others [via] his outstanding achievements attained from humble beginnings  through hard work, perseverance, frugality and discipline."

All-star list

With the award, Gokongwei joins a veritable who’s who of Philippine business with MAP noting that the distinction is not to be taken lightly, as it has only been given out 41 times in 50 years.

The very first recipient of the award, in 1967, was another iconic figure in the business community: SGV and Co. founder Washington Sycip, who passed away earlier this month at the age of 96.

More recent recipients of the award include Ayala Corporation Chairman Jaime Augusto Zobel de Ayala (2006) and SM Investments Corporation Vice-Chairperson and heir apparent Teresita Sy-Coson (2016).

Notable public servants who have also won the distinction include former Bangko Sentral ng Pilipinas governor Amando Tetangco Jr and former Foreign Affairs Secretary Albert del Rosario. – Rappler.com 

MANILA, Philippines – The competition between the country's two telecommunications giants, Globe Telecom Incorporated and PLDT Incorporated, has spilled over into mobile payments, as they rush to serve a budding market that is slowly doing away with banknotes and coins. 

Jack Ma, billionaire founder of financial technology firm Ant Financial, on Wednesday, October 25, visited the Philippines in time for the launch of Globe's new payment technology. Through the GCash app, users can now scan quick response (QR) codes and shop at Ayala's Glorietta 4 mall in Makati City. (LIVE: Jack Ma in Manila)

On the same day, PLDT unit PayMaya Philippines announced its scan-to-pay technology's availability across the Philippines, with select merchants in key cities allowing consumers to pay by simply scanning QR codes through the PayMaya app.

"We welcome competition. For us, it is about coopetition. The more players coming in, the more Filipinos will adapt to the technology. Our end-goal is really that GCash eventually becomes their wallet. But first, we need to get in more merchants," GCash president Albert Tinio told reporters on the sidelines of the launch in Makati City on Wednesday.

Alliance with global experts

GCash, which was launched 12 years ago, currently has 5 million subscribers, according to Tinio. By the end of 2017, the firm targets to double this number. (READ: Helping sari-sari store owners through technology)

"The market here is young and still small compared to other countries like China. But that is because there are certain conditions in those countries that aren't present here," Tinio said.

Based on data from global payments technology firm Visa Incorporated, card penetration in the Philippines was at 11.4% in 2015, higher than the 9.2% in 2010. But cash remains king, accounting for bulk of transactions at 82.3% in 2015. This, however, is down from 2010's 84.4%.

"As PayMaya continues to grow nationwide, we take a giant step for our customers by making QR code payments available to all kinds of merchants," Orlando Vea, president and chief executive officer of PayMaya Philippines, said in a statement on Wednesday.

It was in 2014 when PLDT partnered with Rocket Internet to mainly launch its joint venture now known as PayMaya, offering mobile-first payment services. This supported the telco's existing mobile money services under Smart Money.

Meanwhile, Globe inked a deal with Ant Financial last February, with the Alibaba unit subscribing to new shares in Globe Fintech Innovations Incorporated (Mynt).

"Going back 12 years ago, GCash was a Globe product and wallet. What Ant [Financial] is teaching us is their experience. In China, there are 450 million users of mobile payments. But before they got there, they experienced challenges. With our partnership, we have the benefit of learning from their experience. We don't have to wait for us to experience it ourselves," Tinio told reporters.

In the future, Globe and PLDT are targeting to equip various retail partners – down to the sari-sari store levels – with QR codes.

The GCash president said he hopes to see street vendors using QR codes as payments in the next few years. The same goes for the PayMaya president, who said his firm wants micro and small enterprises to utilize QR codes for purchases and money transfers. – Rappler.com

MANILA, Philippines – Alibaba Group founder and executive chairman Jack Ma, on a visit to Manila, outlined the internet giant's long-term plan to get e-commerce to finally take off in the Philippines.

While e-commerce is viewed by most observers as the future of retail, it has been slow to take hold in the country. It captured only 0.5% of the total retail market in 2015, a figure projected to rise to 4.7% by 2025, according to a Google Temasek study.

"The number one rule is to keep on investing in the Philippines," Ma said at a press conference after he received an honorary doctorate from De La Salle University on Wednesday, October 25.

Last year, the Alibaba Group spent $1 billion to gain a controlling stake in Southeast Asia's dominant e-commerce platform, Lazada, and added a further $1 billion to increase that stake from 51% to 83% in June this year.

"In Southeast Asia, with Lazada and AliExpress, I honestly don't see any money coming back in 5 years. Luckily, we made a lot of money in China," Ma said.

"We come to countries like the Philippines not to make money from e-commerce initially, but to see what kind of infrastructure we can build for the Philippines that will enable Philippine small businesses to participate in e-commerce easier. That's the only thing for the next 3 to 5 years," he added.

Building up e-commerce infrastructure

The first part of Alibaba's plan is to build up internet marketplaces locally through Lazada, and set up the infrastructure to facilitate e-commerce trade that crosses borders.

"These marketplaces," Ma noted, "will enable Filipino businesses to do business with China, Malaysia, Thailand, and Europe."

The second part of Alibaba's plan for the country involves establishing a sophisticated mobile payment system.

"This will allow young persons and small businesses to reach the money and will eventually build up to a cashless society in the Philippines. This is what we want," Ma explained.

To that end, Alibaba subsidiary Ant Financial entered into a joint venture with Globe Telecom and the latter's parent firm Ayala Corporation through a strategic investment in Globe's fintech arm Mynt earlier this year.

The final piece of the puzzle is solving the country's logistics system, which is hampered by the archipelagic geography of the country.

"We also have Lazada's logistics system here. It's not good at the moment but if we continue to invest in the system for another 3 to 5 years we'll be ready," Ma said.

Alibaba also broached the idea of eventually having training centers to help train entrepreneurs armed with the data that the group's platform provides.

"We are different from other multinational internet firms because when we come in here, the first thing we do is look for partners and enable them to be successful," Ma said.

"We'll build up the infrastructure here and let people get used to e-commerce. We don't expect to be successful next year; we're thinking in terms of 5 to 8 years," he added. – Rappler.com