WASHINGTON DC, USA – The US Senate voted Tuesday, October 24, to kill a banking rule that allows class-action suits against banks or credit card companies, in a victory for President Donald Trump that further loosens regulation of Wall Street.

Vice President Mike Pence cast the tie-breaking vote to overturn by a margin of 51-50 the Consumer Finance Protection Bureau (CFPB) rule intended to address fine-print clauses that bank and credit card consumers must agree to which bar them from seeking redress through class-action litigation. 

The measure has been championed by Richard Cordray, the director of the CFPB, as a way to ensure that wronged consumers have their day in court.

But a Treasury Department report on Monday, October 23, attacked the rule, questioning whether it would "serve either consumer protection or the public interest." 

Rather, it argued that by eliminating mandatory arbitration, the CFPB will generate more than 3,000 additional class action lawsuits, requiring hundreds of millions in lawyers' fees and $1.7 billion in additional settlements.

The Treasury report drew strong criticism from the advocacy group Public Citizen, which accused the department of siding "with Equifax and Wells Fargo against ripped-off customers."

The White House issued a statement applauding Congress, which it said "is standing up for everyday consumers and community banks and credit unions, instead of the trial lawyers, who would have benefited the most from the CFPB's uninformed and ineffective policy."

But the vote was criticized by many Democrats, including Senator Elizabeth Warren, known for her work advocating consumer rights.

"Tonight @VP Pence & the @SenateGOP gave a giant wet kiss to Wall Street. No wonder Americans think the system is rigged against them. It is," she tweeted.

Trump has made rolling back banking regulations a key priority, and Tuesday's vote also marked a legislative win for his Republican party that has been roiled by infighting.

Senate Republicans put their differences aside, with Jeff Flake, John McCain and Bob Corker – who have all voiced concerns about the president's coarse and combative style of governing – all voting against the rule.

The CFPB, an agency created under the 2010 Dodd-Frank Wall Street reform legislation in the wake of a meltdown of the US mortgage market, is itself in the Trump administration's crosshairs.

A Treasury report in June said the bureau required "significant restructuring," while also calling for "stress tests" for large banks to be eased as the administration seeks to broadly revise the Dodd-Frank law. – Rappler.com

MANILA, Philippines – The country's lack of financial inclusion and slow internet speed could ultimately be the seeds to sow great ideas, according to Alibaba Group founder and executive chairman Jack Ma.

While being interviewed by Presidential Adviser on EntrepreneurshipJoey Concepcion in Manila on Wednesday, October 25, Ma recounted how Alibaba's Alipay service, now the world's largest payment platform, was born out of a similar situation in his native China.

"We don't have a vast credit card system in China. In the last 15 years, people kept criticizing us, saying, 'How can you make people [pay] for things online? You don't have enough checks, credit cards, or banks. How would it work?'" he recounted.

"It's because we didn't have all of these that we ended up making the most advanced digital payments ecosystem in the world," he added.

It's that experience that leads the Chinese tycoon to believe the Philippines could follow and even improve upon the example Alibaba set 15 years ago by leveraging on the growing ubiquity of mobile commerce. (READ: Jack Ma: Alibaba to keep investing in PH)

"The Philippines has the opportunity to develop the best fintech services in the world because you have so many mobile phones. You have 7,000 islands and it's impossible for banks to have branches everywhere, but mobile phone coverage is everywhere," Ma explained.

"The Philippines should be a cashless society. When it goes cashless, you also eliminate corruption," he added.

Earlier this year, Alibaba subsidiary Ant Financial entered into a joint venture with Globe Telecom through a strategic investment in Globe's fintech arm Mynt, which handles GCash. (READ: Globe, PLDT battle it out in cashless payments) – Rappler.com

MANILA, Philippines – The Philippines' slow internet had even the ever-optimistic Jack Ma, founder and executive chairman of global tech giant Alibaba Group, frustrated.

"I arrived late last night and I tried to test the speed of Philippine internet... It's no good," the Chinese tycoon said in a forum at De La Salle University on Wednesday, October 25, after having been awarded an honorary degree in Technopreneurship.

The remark drew laughter from the audience, which happened to include Globe Telecom chief executive officer Ernest Cu and PLDT chief revenue officer Eric Alberto. Later on, Presidential Adviser on Entrepreneurship Joey Concepcion once again drew attention to both firms when discussing the slow internet in the country.

Last May, Akamai Technologies' Global State of the Internet Report showed that the Philippines has the slowest average internet speed in Asia Pacific.

Its average connection speed is just 5.5 mbps, falling short of the global average internet connection speed of 7.2 mbps.

Search for more competition

Many observers blame the situation on the duopoly in the Philippine telco sector between Globe and PLDT.

Early on in his presidency, President Rodrigo Duterte even warned both telcos to beef up their services or he would open up the sector to foreign competition. (READ: PLDT, Globe, Meralco: Yes to foreign players)

For a time last year, it seemed that more competition would come from the domestic front in the form of San Miguel Corporation (SMC) and its would-be partner, Australian firm Telstra Corporation.

But that deal fell through and the saga of the search for a 3rd major player to provide more competition to the two established firms took another turn earlier this week when the Court of Appeals affirmed Globe and PLDT's P69.1-billion deal to split SMC's telco assets.

Ma, however, took a diplomatic approach to the situation, pointing out that the business sector should simply focus on solving the problem.

"Honestly, it's unfair to blame anyone for slow internet. Opportunity exists in areas most people complain about. If you can solve a complaint, you have a chance," he said.

Ma also offered some hope, recounting how when he started Alibaba in 1995, "the internet speed in China was terrible, much worse than the speed of the internet in the Philippines today."

"So that's not an excuse for the telcos but it's a great opportunity for telcos to invest [in providing more bandwidth to users]. This is an investment where I guarantee you will get your return back," Ma said.

"Faster internet, be it 4G or the future 5G, is an opportunity for everybody." – Rappler.com

MANILA, Philippines — Do you think you had a busy Wednesday?

If so, spare a thought for Chinese business icon and Alibaba Group founder Jack Ma who jetted into Manila late Tuesday night, October 24, ahead of a whirlwind 24 hours in the capital.

The mercurial entrepreneur managed to receive an doctorate degree, meet President Rodrigo Duterte, grace a product launch of local partner Globe Telecom, and discuss new partnerships, just to name a few – while experiencing Metro Manila's heavy traffic and slow internet on Wednesday, October 25.

Here's a peek into the how the internet billionaire spent his time in Manila. (LIVE: Jack Ma in Manila)

Tuesday night, October 24 – Ma arrived in Manila and immediately held an hours-long meeting with Alibaba staff over how to develop e-commerce in the Philippines.

The meeting yielded a 3-part plan on developing e-commerce infrastructure starting with building market places through Lazada, strengthening logistics, and building training centers leveraged on the empire's vast data platform. (READ: Jack Ma: Alibaba to keep investing in PH)

After Alibaba and Amazon dominated the e-commerce business in their home markets, the two giants are now battling it out in Southeast Asia, starting with Singapore. 

A New York Times report said the two giants are spending billions of dollars on Southeast Asia and India, as they look for a market that could duplicate China's successful transformation into the world’s largest online shopping market.

Wednesday, October 25 (10 am to 12 pm) – The Alibaba founder received a Doctor of Science in Technopreneurship Honoris Causa from De La Salle University (DLSU) and capped it with a lecture to his new "fellow schoolmates" on how technology is rapidly changing how the world views sustainability.

Ma participated in two roundtables: first with DLSU student leaders, and then with Go Negosyo Chairman Joey Concepcion, Presidential Adviser for Entrepreneurship. He discussed topics ranging from the country’s slow internet to why he thinks the Philippines can be a world beater in fintech.

Even the ever-optimistic Alibaba chief expressed frustration over the country's "no good" internet. This was during the DLSU forum attended by Globe and PLDT executives.

The Alibaba head then had a formal press conference where he discussed the group's strategy in the Philippines, the importance of its existing partnerships, and the role Chinese-Filipinos can play in bringing the two nations closer together.

Wednesday, October 25 (1 pm to 3:30 pm) – Ma rushed to Malacañang to pay a courtesy call on the President. Those who joined the meeting were Finance Secretary Carlos Dominguez III, Senator Richard Gordon, and Special Assistant to the President Bong Go.

Since Office of the President did not disclose what Ma discussed with Duterte and the Philippine officials, some reporters wondered if Dominguez and Ma talked about the issue of online listings of fake cigarette tax stamps once advertised on alibaba.com.

Back in March, Dominguez wrote an open letter to Ma, asking Alibaba to cooperate with the Philippine government by immediately stopping such advertisements and prohibiting them in the future. The following month, Ma took down Alibaba's online listings that advertise the sale of fake cigarette stamps.

Malacañang photos of the meeting showed Ma and the Philippine officials led by Duterte sharing a light moment, as they smiled while doing Duterte's signature fist-bump pose.

After his meeting with the President, the Chinese tycoon faced Malacañang reporters. A jovial Ma readily granted selfie requests from the media. The business icon even entertained a question from the reporters while waiting for his car at the Palace driveway.

Asked how his meeting went with Duterte, Ma said: "Perfect... It was good."

Wednesday, October 25 (4 pm to 6 pm) – Of course, Ma wouldn't pay a visit to the Philippines without meeting with his local business partners: Globe Telecom officials.

Before gracing the first real product launch of its joint venture with Globe, one of the telco's corporate communications officers told Rappler that Ma had a short business meeting with the Zobel de Ayalas at The Ascott in Makati. (READ: Globe and PLDT battle it out in cashless payments)

Asia's richest man then went on to try the purchase-by-scan system of GCash, which was initially launched at Ayala-owned Glorietta 4 mall in Makati. This was the by-product of the strategic alliance between Ma's Ant Financial Services Group and Ayala's Globe Telecom.

In February, Ant Financial, an affiliate of Ma's Alibaba group, entered the Philippines through an investment in Globe Fintech Innovations, Incorporated (Mynt) to upgrade digital payments services in the country. This was Alibaba's first investment in the Philippines.

Around 5 pm, Ma, together with Globe co-vice chairman Fernando Zobel de Ayala and president and chief executive Ernest Cu, arrived at the official media launch of GCash's purchase-by-scan system. This product is similar to Ant Financial's Alipay, which is popular in China.

Ma was still all smiles late Wednesday afternoon and even sneaked in a selfie as he sat beside the officials of Ayala group. 

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<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">LOOK: Jack Ma taking a selfie beside Globe, Ayala executives <a href="https://twitter.com/rapplerdotcom?ref_src=twsrc%5Etfw">@rapplerdotcom</a> <a href="https://t.co/9Dd6V5kW6c">pic.twitter.com/9Dd6V5kW6c</a></p>&mdash; Chrisee V. Dela Paz (@chriseedelapaz) <a href="https://twitter.com/chriseedelapaz/status/923113069663809536?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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Ma, however, left early and did not join the press conference to catch his other scheduled engagements. 

After all, he has an over $23-billion e-commerce empire to run. Ma is currently the world's 23rd wealthiest man, with an estimated net worth of $38.3 billion, said Forbes magazine.– with reports from Pia Ranada/Rappler.com

MANILA, Philippines – A unit of PLDT Incorporated will spend P11 billion in the next two years to migrate more than 1.3 million digital subscriber line (DSL) subscribers to a much faster fiber optic internet connection. 

Internet connection using fiber optic cables is delivered in light signals via small, flexible glass wires; while DSL is delivered through telephone lines. This makes fiber optic better than DSL when it comes to internet speed and reliability. (READ: Globe, PLDT battle it out in cashless payments)

Marco Borlongan, PLDT first vice president and head of PLDT Home, said on the sidelines of a thanksgiving party in Taguig City on Wednesday night, October 25, that the P11-billion modernization plan will provide subscribers with better data experience through the rollout of one million ports nationwide.

"This year, we've been rolling out the fiber-to-the-home (FTTH) network nationwide and we've also teamed up with world-renowned content platforms and providers to ensure that our subscribers get the best possible home entertainment experience," Borlongan told reporters.

The chief of PLDT Home said the group targets to expand its FTTH coverage to about 4 million homes passed by the end of 2017. PLDT Home is also deploying hybrid fiber technologies to allow existing customers to enjoy fiber-like speeds.

For PLDT executive vice president and chief revenue officer Eric Alberto, this P11-billion investment will support subscribers' "increasingly digital lifestyle."

"Our vision is to make high-speed internet connectivity the standard of every Filipino whether they are at home or on the go," Alberto said. (READ: Alibaba's Jack Ma: PH internet 'no good')

Smart's LTE rollout

Meanwhile, PLDT wireless unit Smart Communications Incorporated has already finished its long term evolution (LTE) rollout in the major urban hubs of Metro Cebu and Metro Davao, the island resort of Boracay, as well as Rizal province. Smart is currently rolling out LTE in Metro Manila.

"By end-2018, over 90% of the country's population will have Smart LTE coverage," PLDT and Smart first vice president and head of Consumer Business for Market Development Oscar Reyes Jr said.

Among the airports with Smart's LTE coverage are the Ninoy Aquino International Airport, Davao City's Francisco Bangoy International Airport, Laguindingan Airport in Misamis Oriental, Bacolod-Silay International Airport, as well as Iloilo International Airport.

Roxas Airport, Zamboanga Airport, Clark International Airport, Dumaguete-Sibulan Airport, Laoag International Airport, General Santos International Airport, Kalibo International Airport, and Puerto Princesa Airport also have access to Smart's LTE coverage.

Smart is also present in the sea ports of Batangas City and Calapan in Oriental Mindoro, major bus terminals and thoroughfares, as well as other public areas across the country.

Reyes said the PLDT group's network modernization and expansion plan is at the core of its digital pivot.

Smart's network rollout took a big bulk of PLDT's ramped-up capital expenditure program of P42.8 billion for 2016, which included the utilization of new frequencies freed up with the acquisition of San Miguel Corporation's telco assets.

PLDT has invested around P300 billion over the past 10 years to roll out the Philippines' extensive fixed and wireless network infrastructure, which now has 150,000 kilometers of fiber optic cables. – Rappler.com

MANILA, Philippines – The country's telecommunications giants and the Philippine Competition Commission (PCC) vowed to do the best they can to improve the state of Philippine internet, after Jack Ma, the Chinese tycoon behind global tech giant Alibaba Group, shared what he thought about it.

Alibaba's partnership with Globe Telecom Incorporated did not stop Ma from expressing his disappointment over the Philippines' internet services. "I arrived late last night and I tried to test the speed of Philippine internet... It's no good," he said in a forum on Wednesday, October 25, which was also attended by Globe and PLDT Incorporated officials.

Spokespersons of PLDT and Globe acknowledged that there's still much to be done to improve internet services in the Philippines. But they also emphasized the need for the government's involvement to turn slow, costly internet around.

"We know there is still a lot of room for improvement insofar as internet services are concerned. However, even a man of stature like Jack Ma understands that government and private sector need to work together to improve services," Globe senior vice president for corporate communications Yolanda Crisanto told reporters in Makati City.

This was echoed by PLDT spokesperson Ramon Isberto, who said: "We have been working very hard and investing heavily to improve the quality of our internet services. Although we still have much to do, these efforts have started to pay off."

Last May, Akamai Technologies' Global State of the Internet Report showed that the Philippines has the slowest average internet speed in Asia Pacific.

Its average connection speed is just 5.5 Mbps, falling short of the global average internet connection speed of 7.2 Mbps. This, however, was an improvement from previous records.

For PCC Chairman Arsenio Balisacan, Ma just expressed what Filipinos have been experiencing all this time. (READ: A peek into Jack Ma's 24-hour Manila visit)

"This serves as a wake-up call [for] telecom companies to deliver on their promise a year after they have acquired the frequencies," Balisacan said in a statement on Thursday.

Internet: a public-private partnership

During the forum at De La Salle University on Wednesday, Presidential Adviser on Entrepreneurship Joey Concepcion called out Globe chief Ernest Cu and PLDT chief revenue officer Eric Alberto in the audience and told Ma, in jest, to "blame them."

But Ma called for cooperation, noting that pointing fingers wouldn't be productive. "I encourage this government, entrepreneurs, everybody, to work together to improve the speed and coverage of the internet," the Chinese tycoon said.

According to Balisacan, the PCC believes that both industry and the government can implement ways to improve internet speeds. (READ: PLDT, Globe, Meralco: Yes to foreign players)

"On PCC's part, our role is to foster competition in the telecom market. This means opening up the market to more players and leveling the playing field between incumbents and entrants, between big and small players. This translates to more choices, better quality, and affordable services to consumers," said the chairman of the PCC, a national government agency mandated to review mergers and acquisitions worth above P1 billion.

Cut red tape

Meanwhile, Globe's Crisanto urged the government to cut red tape so the telco could speed up the implementation of its network rollout plan.

"This has been our position since the beginning. We have been calling for government support to ease permitting issues in order to build more infra like cellsites which we need," the Globe executive said.

"We have been calling for the implementation of the National Broadband Plan to help augment the need for cellsites and fiber. The government needs to also invest in the internet superhighway," she added.

The Department of Information and Communications Technology (DICT) has revived the proposal for a national broadband network, which is seen to provide at least 10-Mbps connection to all households by 2020 at a much lower cost than today's average of P1,299 per month.

Meanwhile, PLDT's Isberto said his firm has been working "very hard" and "investing heavily" to improve the quality of its services.

"Although we still have much to do, these efforts have started to pay off. Third party tests show our internet speeds and coverage are improving as we roll out more fiber-to-the-home (FTTH) and LTE facilities," Isberto said.

PLDT's network rollout and upgrade took a big bulk of its ramped-up capital expenditure program of P42.8 billion for 2016, which included the utilization of new frequencies freed up with the acquisition of the telco assets of San Miguel Corporation (SMC).

PLDT has invested around P300 billion over the past 10 years to roll out fixed and wireless network infrastructure, which now has 150,000 kilometers of fiber optic cables.

"We will continue this effort until we cover the whole country and enable Filipinos to more easily accessible, wide range of inclusive digital services like PayMaya's mobile payments services," Isberto added.

PLDT's and Globe's P69.1-billion deal to buy out SMC's telco assets is now being reviewed by the courts. The Court of Appeals recently affirmed the validity of the deal. The Supreme Court has yet to decide whether the deal requires the PCC's review or not. (READ: Battle lines drawn over San Miguel's telco buyout deal)

Foreign business chambers see it as the test case for the PCC, which had said that strong public clamor for faster, cheaper internet and mobile services could be set back by a lack of competition. – Rappler.com

SAN FRANCISCO, USA – Microsoft on Thursday, October 26, (October 27, Manila time) delivered stronger-than-expected earnings for the past quarter, lifted by gains in cloud computing and other business services.

For its first fiscal quarter to September 30, the tech giant said profit was up 16% from a year ago to $6.6 billion. 

Revenue meanwhile rose 12% to $24.5 billion for the one-time tech sector leader which has shifted its focus away from consumer software to a range of enterprise services.

Shares in Microsoft jumped 3.2% to $81.35 for in after-hours trade following the release.

Microsoft chief executive Satya Nadella said: "Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform."

Microsoft's "more personal computing" division which produces the ubiquitous Windows operating system, saw revenues virtually unchanged from a year ago at $9.4 billion.

But it showed sharp growth of 28 percent from its "productivity and business process" unit, which brought in revenues of $8.2 billion.

The "intelligent cloud" unit that delivers artificial intelligence to a wide range of products saw its revenues grow 14 percent to $6.9 billion in the quarter.

LinkedIn, the professional social network acquired by Microsoft last year, contributed revenue of $1.1 billion during the quarter.

Microsoft said its "cloud technologies" operations now accounts for some $20 billion annualized and is a key to the company's future.

"Across major industries -- from finance and energy sector to retail and professional sports -- organizations are betting on Microsoft to help them transform their customers' experiences, employee productivity, operations and products," said executive vice president Judson Althoff.

"In fact, 96 percent of Fortune 500 companies have at least one of our cloud offerings, and 90 percent have at least two." – Rappler.com

MANILA, Philippines – Startup founders were given the rare opportunity to meet angel investors and industry experts from across the Association of Southeast Asian Nations (ASEAN) region and its partner states at the Philippine International Convention Center, Manila last Friday, October 20.

Slingshot ASEAN – envisioned to catapult an inclusive and innovation-driven regional economy – showcased the growing startup ecosystem through interactive sessions and the ASEAN Startup Alley – an exhibit that featured over 50 local and foreign startups.

The Department of Trade and Industry, as the lead agency for the ASEAN Committee on Business and Investment Promotions, spearheaded the largest government-initiated startup event in the region for the ASEAN's 50th anniversary. 

Besting 9 other local startups, STORM Technologies will represent the Philippines in the Startup World Cup 2018. FrontLearners meanwhile bagged $10,000 as the winner of Startups to the Resque, a disaster-resilience challenge. 

A local 'Silicon Valley' possible?

With mostly young countries having heterogeneous cultures, thought leaders argued during the summit that it would be challenging in the region. However, they remained optimistic of the vision as long as there will be collaboration and localization of opportunities across ASEAN countries.

DTI Chief Ramon Lopez emphasized the role of the youth in making this dream possible, recalling that tech giants Google and Facebook were made by enterprising youth. Lopez also lauded collaboration of initiatives between government institutions and private companies in providing avenues for startups to grow. 

“We are confident that the Philippines will continue to unfold the potentials of the growing startup community and influence more businesses to scale up,” said Lopez.

Lopez said that the government is looking for ways to drive the formation of startups and technology-related businesses in the form of income tax incentives, to be funded by both the public and private sectors.

DTI Undersecretary Nora K. Terrado, also chairperson of the ASEAN Committee on Business and Investment Promotions, said that Slingshot is the built by strong partnerships.

“Now on its third staging, we wish to elevate dialogues and conversations between the public and private sector to further address the need of the (startup) community,” Terrado, said.

Slingshot is the official platform of the DTI in advancing the development and promotion of the startup ecosystem in the Philippines.  – Rappler.com 

MANILA, Philippines – Yuchengco-led Rizal Commercial Banking Corporation (RCBC) denied rumors that it is on the auction block, with two of the country’s biggest banks eyeing it.

In a letter to the Philippine Stock Exchange (PSE) on Friday, October 27, RCBC said “it is not in talks or discussions with anyone regarding the sale of a majority stake or any merger."

"Information other than those disclosed by the Bank is purely speculative," it added.

The bank was responding to a Philippine Daily Inquirer report that the bank could be potentially up for sale and that its biggest rivals – Sy-led BDO Unibank Incorporated (BDO) and Ayala-led Bank of the Philippine Islands (BPI) – are reportedly interested.

Both banks also denied the rumors in separate disclosures to the stock exchange.

BDO said while it “has always been open to accretive acquisitions which will help it achieve growth and efficiencies, there are, however, no definite discussions regarding an acquisition of or investment in RCBC."

In May, another Sy family-affiliated firm, China Bank Corporation, also denied rumors of a planned merger with RCBC.

BPI, for its part, said  that "it would like to inform the PSE that BPI is not in discussions with RCBC or its shareholders."

RCBC drew much flak last year when it became embroiled in the $81- billion Bangladesh Central Bank heist. The Bangko Sentral ng Pilipinas meted a record P1-billion fine on the bank.

Despite this, the bank has seen an upturn in its stock price in recent months, going from around P40 in April to around P65 in early June before settling at around P60 in recent days, fueling the merger or sale rumors.

RCBC is the country’s 10^th biggest bank with total assets of around P427 billion. – Rappler.com

MANILA, Philippines – Seaplane operator Air Juan Aviation Incorporated (Air Juan) has cancelled some flights in the run-up to, and during, the 31st  Association of Southeast Asian Nations (ASEAN) Summit this November.

In a statement on Friday, October 27, Air Juan said that given flight restrictions issued by the government within the Manila and Subic Bay areas, it is cancelling the following flights:

Air Juan said that customers on these affected flights can either rebook flights to the next available flights; refund airfare without penalties; or obtain travel credits for future flights.

It also said that Air Juan schedules in other destinations such as Puerto Princesa, Coron, San Vicente, Cuyo, Cebu, Tagbilaran, Biliran, Siquijor, Maasin, Sipalay, Caticlan, and Iloilo will not be affected and will continue to operate as scheduled.

Passengers affected by this cancellation may call Air Juan at (632) 718-8111, email reservations@airjuan.com, or follow Air Juan’s Facebook Account for more details and announcements.

Earlier this week, Marciano Paynor Jr, Director General of the ASEAN National Organizing Council, said that no flights would be cancelled at the Ninoy Aquino International Airport (NAIA) as world leaders will be using Clark International Airport instead.

The North Luzon expressway (NLEX) however will be on "lockdown" for a few minutes every time a foreign leader arrives for the Summit. – Rappler.com

MANILA, Philippines – Philippine Airlines offered a one-day “Puso Para sa Marawi” P1-seat sale to Cagayan de Oro from select areas on Saturday, October 28.

The one-day promo is for a P1-one-way base fare to Cagayan de Oro from Manila, Cebu, or Davao. The fare is exclusive of taxes and fees, PAL announced on its official website.

"The seat sale is only on October 28, or until seats lasts, available only at Philippineairlines.com," PAL said, adding that the promo is meant to bring people closer to their loved ones who were displaced by the war in Marawi.

The travel period is from October 28 to December 14, 2017. PAL said that the Davao to Cagayan de Oro flights covered by the promo will operate starting November 1.

The promo is limited to only 1,000 seats.

PAL offered the seat sale after displaced Marawi residents started returning home following the government's announcement that its 5-month war against local terrorists had ended. – Rappler.com

MANILA, Philippines – Petron Corporation executives, led by tycoon Ramon Ang, will file corruption charges against Philippine National Oil Company (PNOC) President Reuben Lista for his alleged "unexplained wealth."

Ang told reporters on Saturday night, October 28, that they would file charges before the Office of the Ombudsman in the next few days.

"Where did his money come from? He continues to post on his FB (Facebook) his many properties such as the one in Essensa. He has unexplained wealth," the Petron president said.

"There had been several unpleasant incidents with Lista," he added without providing details, saying the complaint is still being finalized.

It was just last week when Petron asked the Mandaluyong City Regional Trial Court (RTC) to issue a temporary restraining order against the PNOC for allegedly breaching their lease agreements by seeking to void renewal clauses.

"[Lista] is challenging us. Now, we are the ones who will file charges against him, PNOC. He even facilitated to offer the property to the new oil players," Ang said.

The listed oil refiner has existing lease agreements with the PNOC for the properties where its $3-billion refinery in Bataan, 24 bulk plants, and 67 gasoline stations are located. The contracts will expire in August next year.

Petron supplies over a third of the Philippines' petroleum requirements. (READ: Petron net income surges to over P8 billion in 1st half of 2017)

A provision for renegotiation is stated in the contracts, where in case of failure to come to an agreement, the same terms and conditions would apply. 

However, the PNOC said these conditions are disadvantageous to the government. 

Petron then offered to negotiate the agreements with the PNOC as early as 2016.

But the company said it had to seek legal intervention when Lista announced early this year that the PNOC would end the lease agreements.

"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," Petron had said. 

For its part, the government formed a negotiating team to come up with a "win-win solution." 

Asked to comment on this, Ang replied: "It’s already too late. It has been a year already. What else is there to change with a negotiating team? Let the court decide." – Rappler.com

MANILA, Philippines – ABS-CBN Corporation secured a volume deal with digital TV operator StarTimes to air its content across Sub-Saharan Africa.

The Lopez-led firm said the deal entails airing of more ABS-CBN shows in response to African viewers' demand for more Filipino dramas.

ABS-CBN and StarTimes officials signed the deal at the recently-concluded Marché International des Programmes de Communication or International Market of Communications Programmes, which is the biggest global market for entertainment content held in Cannes, France.

"Filipino stories are full of youthful romance, pure love, and also dramatic plots. They show how the young Asian people struggle with lives and how to love," StarTimes chairman Pang Xinxing said in a statement. (READ: FAST FACTS: What you should know about ABS-CBN)

ABS-CBN said it is looking forward to reaching new audiences through heartfelt Filipino stories.

"Despite the highly competitive global market, Africa has remained to be one of our constant and strongest territories. We look forward to an even wider presence for Filipino content in the region via the StarTimes platform," said Maria Cecilia Imperial, ABS-CBN officer-in-charge for Integrated Acquisitions and International Sales and Distribution.

ABS-CBN's content is available in more than 50 territories across the globe.

The media company has sold over 30,000 hours of content worldwide.– Rappler.com 

MANILA, Philippines – Rogelio Singson, the newly-appointed chief of the power generation unit of the Manila Electric Company (Meralco), called on the Energy Regulatory Commission (ERC) to approve applications for 7 power supply agreements (PSAs) as soon as possible.

"Hopefully with ERC now stabilizing, we can go back to them and really appeal to them because we really need these PSAs as soon as possible so the impact of baseload power that we need will not be delayed," Meralco PowerGen Corporation (MGen) chief executive officer Singson said last week.

Meralco's PSAs involve a supply of 3,551 megawatts (MWs), which corner 81% of the combined output of the 7 power plants, Most of these are owned or partly owned by Meralco, through MGen and affiliate Global Business Power Corporation.

These 7 PSAs pending for approval were inked with Redondo Peninsula Energy Incorporated (RP Energy); St Raphael Power Generation Corporation (SRPGC); Atimonan One Energy Incorporated (A1EI); MGen Panay Energy Development Corporation (PEDC); Global Luzon Energy Development Corporation (GLEDC); Central Luzon Premiere Power Corporation (CLPPC); and Mariveles Power Generation Corporation (MPGC).

The PSA applications were filed in 2016. (READ: ERC urged to reject Meralco's 7 coal power plants)

The ERC earlier said the PSAs are still being evaluated to ensure that only "just and reasonable costs" will be included in electricity bills.

"We are carefully scrutinizing each of the cost components in the Meralco PSA applications that is why the final approval of these applications have been taking some time," ERC Officer-in-Charge Alfredo Non had said. 

The ERC's PSA approval entails a hearing process, filing of formal offer of evidence, technical evaluation, commission deliberation, and issuance of a decision.

ERC Commissioner Josefina Patricia Asirit said early this month that the agency is "hopeful" it can decide on 3 of the 7 PSAs within the year.

"Yes. It's still long before 2017 ends. Hopefully, barring any other complications, we should be able to consider a lot of the issues that have been put forth on the applications put before us," said Asirit.

Of the 7 applications, 3 "have not been heard yet" while one was issued a provisional authority (PA).

The remaining 3 applications are "in different stages," said Asirit. (READ: Meralco's profit flat due to impact of temperature, currency, inflation)

"There is one that was issued provisional approval only because there was the ability to benchmark. It's not a greenfield plant and it was necessary for the same to be addressed as an interim measure to meet demand requirements in a particular period and that's the PEDC contract," added Asirit.

The PA that was granted to PEDC in July 2016 was needed in view of the frequent yellow alert status of power reserves at that time.  

"We must remember that stable supply of power is among the anchors of our economy," Non said.

"We granted the provisional approval because it will be more beneficial to the consuming public, and the country as a whole, to have a continuing stable power supply than have rotating brownouts which is more damaging to the economy." – Rappler.com

MANILA, Philippines – PLDT Incorporated is investing nearly P7 billion ($136.7 million) for a new Trans-Pacific cable system that will reinforce its undersea fiber links to the United States and Japan. This would be able to transmit 60 terabytes of data per second (TBps), faster than other active undersea cables.

A number of companies – Amazon, Facebook, SoftBank, PCCW Global, NTT Communications, and PLDT – signed commercial agreements to build and operate the cable system called Jupiter. 

Jupiter will directly connect Maruyama and Shima in Japan and Los Angeles in the US to Daet, PLDT's cable landing station in Camarines Norte in the Philippines. (READ: PLDT unit spending P11 billion for faster internet)

PLDT told the Philippine Stock Exchange (PSE) on Monday, October 30, that it made the investment to meet the rising data traffic and complement cable systems through increased capacity and diversity in the Pacific Rim.

The telco added that the fiber optic submarine cable system has a total length of around 14,000 kilometers, using wavelength selectable switch technology and being built based on the open cable model.

"We are investing in this new cable system in anticipation of the continued explosion of data traffic over the next few years, as households and businesses in the Philippines adopt more and more digital services," PLDT chairman, president, and CEO Manuel Pangilinan said in the disclosure.

PLDT said Jupiter can directly deliver a capacity of more than 60 TBps from the Philippines to Japan and the US. It will be ready for service in early 2020.

"Along with our other technology initiatives, this new project will enable PLDT to gear up for the emerging 'Gigabit Society' where ultra-high-speed connectivity will support a wide range of bandwidth-heavy, low-latency digital applications and internet-of-things (IOT) services," Pangilinan added.

Ramping up capacity

PLDT Global Corporation president and CEO Kat Luna-Abelarde said the Jupiter undersea cable project is specifically designed to give data service providers like PLDT the ability to quickly ramp up capacity when needed.

PLDT said consortium participants in the Jupiter cable system are acquiring the fiber pairs themselves – not a share of the system's fiber capacity.

As a result, PLDT said it can upgrade the capacity of its own fibers by simply investing in the terminal technologies that boost data throughput, rather than waiting for the upgrade cycle of the consortium.

The telco added that the new cable system will directly link the Philippines to Japan and the US West Coast, "without any hops or stopovers."

As a result, latency of the data connectivity will be significantly lower.

Cable investments

PLDT has been investing heavily in international submarine cables to meet the growing connectivity needs of the Philippines, mainly the requirements of the country's business process outsourcing (BPO) industry. (READ: PLDT building submarine cable for PH link to 3 continents)

In 2014, PLDT partnered with Hong Kong-based PCCW Global to acquire capacity in the Asia-Africa-Europe 1 (AAE-1) Cable System, a 25,000-kilometer undersea cable network system that connects Asia, the Middle East, East Africa, and Europe.

The year before, PLDT, together with its partners, completed the construction of the Asia Submarine-Cable Express (ASE), the largest-capacity international submarine cable system in the Philippines with a landing station located in Daet, Camarines Norte.

PLDT has also landed other international cable systems in the Philippines, such as the Asia Pacific Cable Network 2 (APCN2) and the Southeast Asia-Middle East-West Europe 3 (SEA-ME-WE3), which both land in Nasugbu, Batangas, and the Asia-America Gateway (AAG), in Bauang, La Union. – Rappler.com

MANILA, Philippines – Dennis Uy-led Phoenix Petroleum Philippines Incorporated announced a deal to acquire the Philippine unit of convenience store chain FamilyMart from Ayala Land Incorporated and SSI Group Incorporated.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, October 30, Phoenix Petroleum said that "a Memorandum of Understanding was signed on October 30, 2017 between Phoenix Petroleum and SIAL CVS Retailers, Incorporated FamilyMart Company Ltd, and Itochu Corporation, for the planned 100% acquisition of Philippine FamilyMart."

SIAL CVS Retailers, which is a 50-50 joint venture between Ayala Land's ALI Capital Corporation and the SSI Group, holds the local franchise of FamilyMart. SIAL CVS Retailers owns 60% of Philippine FamilyMart, while Japanese companies FamilyMart Company Ltd and Itochu Corporation own 37.6% and 2.4%, respectively.

"The acquisition will be subject to the approval of the Philippine Competition Commission," Phoenix Petroleum added.

The firms involved declined to say how much the deal was worth.

Complementing gas stations

Phoenix Petroleum noted that its potential acquisition of Philippine FamilyMart would complement its retail fuel business.

It currently has 518 gasoline stations nationwide, and an entry into the fast-growing domestic convenience retail market would further boost its business. (READ: How to grow a business, according to Dennis Uy)

Philippine FamilyMart operates convenience stores under the trademark FamilyMart in company-owned and franchise-owned formats in the Philippines. There are currently 67 FamilyMart stores in Luzon.

The stores offer a range of products and services, including ready-to-eat or fast food items, convenience store items, auto-loading, bills payment, and automated teller machine (ATM) services.

"Philippine FamilyMart has built a reputation for convenience and fresh, quality offerings. We are pleased to have it as a strategic addition to the group as we broaden our products and services and offer greater convenience to our customers," said Phoenix Petroleum president and chief executive officer Dennis Uy. – Rappler.com

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MANILA, Philippines – The country's major banks released their schedule of operations for the Undas break, from Tuesday, October 31, to Wednesday, November 1.

BPI

All BPI and BPI Family Savings Bank branches nationwide will be closed on Tuesday, October 31, and on Wednesday, November 1.

Operations will resume on Thursday, November 2.

Electronic channels such as automated teller machines (ATMs), online banking, and mobile banking will continue to be available to handle transactions and other banking services.

Metrobank

All branches and kiosks will be closed both on Tuesday, October 31, and Wednesday, November 1.

All electronic channels will be available 24/7 (ATM, MetrobankDirect Online Banking, Metrophone, Mobile Banking).

Security Bank

Tuesday, October 31

All branches closed except for Security Bank NAIA Terminal 1 (open only to customers with terminal passes) and Terminal 3 branches which will observe banking hours.

Wednesday, November 1

All Security Bank branches will be closed.

BDO

Tuesday, October 31

Branches with regular operating hours

• NAIA Terminal 1
• NAIA Terminal 3
• City of Dreams Manila
• Resorts World Manila
• Solaire Manila Resort 

Forex counters

• BDO Clark Forex Counter
• BDO ADB Forex Counter

Mall branches open until 4 pm

• Agusan del Sur San Francisco Gaisano
• Aklan Boracay CityMall
• Aklan Kalibo CityMall
• Antipolo Cherry Foodarama
• Araneta Center Gateway Mall
• Baguio Abanao Square
• Batangas City Puregold Calicanto
• Batangas Lemery Xentro Mall
• BF Homes Puregold Southpark
• Biñan Central Mall
• Bonifacio Global City Market Market
• Bulacan Puregold Baliwag
• Cabanatuan NE Pacific Mall
• Cainta Puregold
• Calapan City Puregold
• Canlubang iMall
• Cash & Carry
• Cavite – Dasmariñas Central Mall
• Cavite – Puregold Noveleta
• Cavite – Puregold Tanza
• Cebu – Ayala Mall
• Cebu – Elizabeth Mall
• Cebu – J. Mall
• Cebu – Parkmall
• Cebu Gaisano Minglanilla
• Congressional Avenue Cherry Foodarama
• Cotabato CityMall
• Davao Felcris Centrale
• Dr A. Santos Avenue Puregold Evacom
• Dumaguete CityMall
• EDSA New Farmers Plaza
• Gaisano Grand Mall Cotabato Kidapawan
• Greenhills Shopping Center
• Iloilo Jaro CityMall Tagbak
• Isabela Cabagan Xentro Mall
• Isabela Santiago Xentro Mall
• La Union San Fernando Manna Mall
• Leyte Ormoc Gaisano
• Lipa – Puregold
• Lipa – Robinson's Place
• Makati Jazz Residences
• Mandaluyong Light Mall
• Montalban Puregold
• Negros Occidental Kabankalan CityMall
• Nueva Ecija CityMall Sta Rosa
• Pasay Two Shopping Center
• Pasig Capitol Commons Estancia
• Pasig Puregold San Joaquin
• Quezon Avenue Fisher Mall
• Quezon CityMall Tiaong
• Robinson's Dumaguete
• Robinson's Galleria Ortigas
• Robinson's Metro East
• Robinson's Place General Trias
• Robinson's Place Manila
• Robinson's Place San Nicolas
• Rockwell Power Plant
• Roxas CityMall
• Savemore Amang Rodriguez
• Savemore Marulas
• Savemore Nagtahan
• Savemore Novaliches
• Savemore Project 8
• Shangri-La Plaza Mall EDSA
• Shaw Blvd Cherry Foodarama
• SM Aura Premier
• SM CDO Downtown Premier
• SM Center Angono
• SM Center Las Piñas
• SM Center Muntinlupa
• SM Center Sangandaan
• SM Center Tuguegarao Downtown
• SM Center Valenzuela
• SM City Bacolod
• SM City Bacolod North
• SM City Bacoor
• SM City Baguio
• SM City Baliwag
• SM City Batangas
• SM City BF Parañaque
• SM City Bicutan
• SM City Cabanatuan
• SM City Cagayan de Oro
• SM City Calamba
• SM City Cauayan
• SM City Cebu
• SM City Cebu B
• SM City Clark A
• SM City Clark B
• SM City Consolacion Cebu
• SM City Dasmariñas A
• SM City Dasmariñas B
• SM City Davao
• SM City Davao Annex
• SM City East Ortigas
• SM City Fairview A
• SM City Fairview B
• SM City Fairview C
• SM City General Santos
• SM City Iloilo
• SM City Iloilo B
• SM City Lipa
• SM City Lucena
• SM City Manila
• SM City Marikina
• SM City Marilao
• SM City Masinag
• SM City Molino
• SM City Naga
• SM City North EDSA A
• SM City North EDSA B
• SM City North EDSA C
• SM City Novaliches
• SM City Olongapo
• SM City Pampanga A
• SM City Pampanga B
• SM City Puerto Princesa
• SM City Rosales
• SM City Rosario
• SM City San Fernando
• SM City San Jose del Monte
• SM City San Lazaro
• SM City San Mateo
• SM City San Pablo
• SM City Sta Mesa
• SM City Sta Rosa
• SM City Sucat A
• SM City Sucat B
• SM City Tarlac
• SM City Taytay
• SM City Trece Martires
• SM Cubao
• SM Delgado
• SM Hypermarket Adriatico
• SM Hypermarket Cainta
• SM Hypermarket Daet
• SM Hypermarket FTI Taguig
• SM Hypermarket Mabalacat
• SM Hypermarket Makati
• SM Hypermarket Pasig
• SM Hypermarket Sucat Dr A. Santos Avenue
• SM Lanang Premier
• SM Makati
• SM Mall of Asia A
• SM Mall of Asia B
• SM Market Mall Dasmariñas
• SM Megacenter Cabanatuan
• SM Megamall A
• SM Megamall B
• SM Megamall C
• SM Savemore Davao Bangkal
• SM Savemore Tacloban
• SM Seaside City Cebu A
• SM Seaside City Cebu B
• SM Southmall A
• SM Southmall B
• Southgate Mall EDSA
• Sta Ana Xentro Mall
• Sta Lucia East – Cainta
• Sta Lucia East – Felix Avenue
• Sta Rosa Puregold Tagapo
• Starmall Alabang
• Taguig Vista Mall
• Tarlac CityMall
• Tutuban
• Vigan Puregold
• V-Mall
• Walter Mart – North EDSA
• Waltermart – Balayan
• Waltermart – Bel-Air Sta Rosa
• Waltermart – Bicutan
• Waltermart – Cabanatuan
• Waltermart – Carmona
• Waltermart – Dasmariñas
• Waltermart – Guiguinto
• Waltermart – Pampanga
• Waltermart – Sta Maria
• Waltermart – Sta Rosa
• Waltermart – Sucat
• Waltermart – Talavera
• Waltermart – Tanauan
• Waltermart – Taytay
• Waltermart Center – Cabuyao
• Waltermart Center – Makiling
• Zamboanga CityMall Tetuan

– Rappler.com

MANILA, Philippines – What about trading your Calata Corporation shares at the cryptocurrency exchange?

This unregulated and controversial trading platform for digital currencies was the next option laid out by Joseph Calata, president of the embattled agribusiness Calata Corporation, to public investors.

Following news that the Philippine Stock Exchange (PSE) reportedly gave the go signal to involuntarily delist the company, Calata said in a press conference in Makati City on Monday, October 30, that he has found a "better backup plan." 

"I have thought of a solution for the shareholders. Our company, Calata Corporation, will be listed on a cryptocurrency exchange in two months' time," Calata said.

He even has a ready name for it: "Calcoins," or Calata coins. He plans to convert all 570 million outstanding Calata shares if the shareholders agree to it. 

Public investors could no longer easily buy and sell their Calata shares via the exchange at a lower tax rate if, indeed, the PSE would involuntary delist it.

Involuntary delisting is among the most severe penalties imposed by the exchange on listed companies. The PSE had said Calata violated several disclosure rules.

Calata said he is already in talks with 3 cryptocurrency exchanges in Europe, even if he has not informed the public shareholders, Securities and Exchange Commission (SEC), and the PSE yet. 

Previous back-up plan

Before the cryptocurrency plan, he was in talks with the owners of listed Millennium Global Holdings Incorporated, which initially wanted to buy an 81% stake in Calata. (READ: Millennium Global backs out from buying into embattled Calata)

But because "owners were afraid they will be stopped by the PSE, they backed out," Calata said.

"They were scared the follow-on offering will not push through," he added. 

Calata said taking the firm to a cryptocurrency exchange "is a better back-up plan than being listed again [on the local bourse]."

If the PSE proceeds with the involuntary delisting, Calata will not be allowed to relist within 5 years of being delisted, and its officers or directors will be disqualified from becoming officers or directors of publicly-traded firms.

The delisting will require Calata to make a "tender offer" to public investors who may want to exit before the company reverts back to being private. 

During the tender offer, the company will have to invite stockholders to tender and sell their shares at the given offer price and predetermined period. 

Calata had previously said the company could not afford the tender offer, which could cost it around P1 billion. Calata only has P400 million in retained earnings.

Will shareholders agree? 

Before implementing the cryptocurrency move, Calata will need the approval of the public shareholders, which hold about 75% of the outstanding shares of the company.

Calata himself holds about 21.9% of total Calata Corporation shares.

"If they don't agree, then they will only be holding a piece of paper because they cannot trade their shares," Calata said.

He said the company will hold a special shareholders' meeting soon to ask for approval.

There are 3 possible scenarios to this: public shareholders can approve the conversion of shares into digital currency; disapprove and retain their rights to dividends and vote in corporate matters; or consolidate and vote to kick Calata out of the firm.

Asked what happens if public shareholders decide to consolidate and kick him out, Calata replied: "Let us see. I'm sure some minority [shareholders] will not approve of that move." 

He, then, moved to explain that he is proposing the cryptocurrency "back-up plan" mainly for the public shareholders' sake, not his.

"I am doing this for the shareholders, not for me. It is the shareholders who are being punished by the PSE, not me," Calata said.

Token equals ownership

He added that he will not need the approval of the SEC and the PSE as cryptocurrency is "beyond their jurisdiction."

"As a private company, we can issue bitcoins to our shareholders if we want to," he said.

If Calata's plan is approved by public shareholders, he said the firm will issue digital tokens called Calcoins, "which are ethereum blockchain-based."

"Holding a token is equivalent to ownership of stocks," he claimed.

"They will open an account on the cryptocurrency exchange where Calcoins are tradeable. They can start trading Calcoins and any person in the world can easily buy or sell these coins without country limitation," Calata said.

Calata explained that a digital token is similar to issuing a check in digital form.

"The holder of the token has the right to claim the underlying asset. Any transferable asset such as car, house, computer, or also intangible ones like property rights and licenses can be presented through digital tokens," he added.

The self-made businessman went on to show the media a video presentation of global business icons, like Jack Ma and Bill Gates, recognizing the promise of bitcoin or blockchain technology.

"I want Calata to be one of the firsts in the country. We have 5,000 to 10,000 shareholders. Our shareholders will be able to trade bitcoins, ethereums, and Calcoins," he said.

He went on to say Filipinos should be at the forefront of the ongoing digital currency innovation. "We should not be just following them. There should be an Elon Musk or Mark Zuckerberg of the Philippines," Calata said in Filipino.

He said every transaction will be recorded on a blockchain, providing full transparency on the ownership and security, without needing the regulation of a central authority or a clearing house.

"Because of such innovation, we will solve the problems that complicate and slow down the systems in the capital markets," Calata said.

Risks of virtual currency

The Bangko Sentral ng Pilipinas (BSP) took a cautious stance on the cryptocurrency boom, after other central banks discussed the risks of the virtual currency during an annual meeting at the World Bank and International Monetary Fund in Washington.

"There's a lot of experimentation going on in some countries. We'd like to see first how that works. So in a way it's cautious but it's also not prohibiting," BSP Governor Nestor Espenilla Jr had told reporters. 

Espenilla said cryptocurrency helps promote efficient money transfer but could also be used for money laundering as well as other criminal activities.

Back in February, the BSP issued Circular No. 944, laying down the rules and regulations governing the operations of virtual currency exchanges as part of its campaign against money laundering and terrorist financing.

Despite the BSP's cautious stance, Calata remains optimistic about the promises of cryptocurrency, saying "blockchain and cryptocurrency will revolutionize how people transact things."

Trading of Calata stock has been suspended since June 30.

Back in 2012, Calata Corporation 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 

SEOUL, South Korea (UPDATED) – Samsung Electronics logged Tuesday, October 31, a record profit of $10.0 billion for July to September and announced a sweeping reshuffle within top management as the South Korean tech giant seeks to maintain its market lead while its heir is in prison.  

The world's biggest memory chip and smartphone maker has faced multiple challenges since last year, including a humiliating recall of its flagship Galaxy Note 7 handsets and a corruption scandal that engulfed its de facto leader.

But its third-quarter net profits soared 148% on the same period a year ago, it said in a statement, thanks to strong demand for its memory chips and a recovery in smartphone sales with the roll-out of the new generation Galaxy Note 8.

The figures come only two weeks after chief executive Kwon Oh-Hyun resigned, saying the South's biggest firm was facing an "unprecedented crisis" and its current profitability was "merely a fruit of decisions and investment made in the past".

The firm described Tuesday's numbers as an "overall robust performance".

Operating profit nearly tripled on-year to 14.5 trillion won – also a quarterly record – it said in a regulatory filing, while sales surged to 62.05 trillion won, another all-time high. 

Samsung Electronics is the key subsidiary of the sprawling Samsung Group, whose heir Lee Jae-Yong was found guilty in August of bribery, perjury and other charges stemming from payments to the secret confidante of ousted president Park Geun-Hye.

Lee, who was jailed for 5 years, says he is innocent and is appealing.

The firm also announced Tuesday the first major reshuffle in its top leadership in three years. It had not made any radical changes at the top since group chairman Lee Kun-Hee suffered a heart attack in 2014 that left him bedridden. 

Samsung, which has a team of 3 CEOs each leading its semiconductor, mobile and TV units, said Kwon's role as the head of the semiconductor business would be taken by Kim Ki-Nam, a younger manager in chipmaking operations. 

Lee Sang-Hoon, known to be close to the group's founding Lee family, will leave his position as the firm's chief financial officer to take the chairmanship of the board, a role previously held by Kwon.

Tuesday's announcement also saw HS Kim replacing Yoon Boo-Geun as the head of Samsung's home appliance and TV unit, and DJ Koh replacing JK Shin as the mobile chief. 

The 2017 Galaxy Note 7 recall – due to exploding batteries – also dealt the firm a crippling blow to its mobile business.

But its profits and share price have rocketed this year, as global chip prices have soared with suppliers such as Samsung yet to catch up booming demand for high-powered processors used in handsets, computers and cloud storage servers. 

The firm provides memory chips for PCs, servers and mobile gadgets of its own but also industry rivals including Apple, with that "component business" helping the firm cushion a fall in sales of its own devices.

It said separately it would double its dividends in 2018, and confirmed a further share buyback for the fourth quarter.

'Longer-term horizon'

Samsung has sustained and widened its lead in the market partly by investing massively in building and expanding semiconductor factories, often faster than its rivals.

Its investment in infrastructure, mostly on chip plants, will reach a whopping 46.2 trillion won just for this year, compared to 25.5 trillion won in 2016, it said.

The firm operates the world's biggest semiconductor plant in the city of Pyeongtaek, 70 kilometers (44 miles) south of Seoul, and is upgrading or expanding many of its production lines there and elsewhere. 

Such aggressive investment has stoked concerns that its increased supplies may drive down prices and eventually dent the firm's own profits in subsequent quarters.

But senior vice-president Chun Se-Won told a conference call: "We are looking at a longer-term horizon... with a goal of boosting our business capabilities for the next two or three years and beyond." 

Samsung shares rose 2% to 2.75 million won apiece in mid-afternoon trading on the Seoul stock market. 

Kim Yang-Jae, analyst at KTB Investment & Securities, said profits would rise further in the fourth quarter, with global semiconductor prices continuing to rise into next year.

"Samsung's display unit would also see profits grow as it supplies panels to Apple's iPhone X," Kim said, forecasting a new record operating profit of 15 trillion won in the fourth quarter.  

Samsung predicted "positive growth" in the semiconductor business next year as technological advances in artificial intelligence (AI) and machine learning fanned demand for high-powered processor chips. – Rappler.com

DUBAI, United Arab Emirates – The IMF on Tuesday, October 31, advised energy-rich Gulf economies to speed up their diversification away from oil after projecting the worst growth for the region since the global financial crisis.

Oil exporters in the Middle East, especially those in the Gulf Cooperation Council, have been hit hard by the collapse in crude prices which provided a major part of their finances.

Following the slump, GCC members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates undertook fiscal measures and reforms to cut public spending and boost non-oil revenues.

As a result, economic growth has slowed considerably as the GCC 6 and other regional oil exporters posted huge budget deficits.

In its Regional Economic Outlook, the International Monetary Fund on Tuesday projected GCC economic growth at just 0.5% this year, the worst since the 0.3% growth in 2009 following the global financial crisis.

"It is the right time for GCC economies to accelerate their diversification outside oil and to promote a greater role for the private sector to lead growth and create additional jobs," said Jihad Azour, director of the Middle East and Central Asia at IMF.

"Preparing their economies to the post-oil era is something that is becoming a priority for authorities all over the GCC," Azour told Agence France-Presse.

"We are seeing governments developing diversification strategies and introducing a certain number of reforms to allow the economy to be prepared for the post-oil era. And those are important reforms," he said.

Non-oil sector on rise

Azour said the GCC growth projections are mainly driven by the oil producers deal to cut output to bolster low crude prices which meant GCC states pumped and exported less oil.

The IMF report also projected that the economies of oil exporters in the Middle East and North Africa – also including Iran, Iraq, Algeria, Libya and Yemen – would grow 1.7%, down from 5.6% the previous year.

MENA oil importers, on the contrary, were expected to expand 4.3% this year, up from 3.6% in 2016, the report added.

Azour said the IMF was projecting flat growth this year for Saudi Arabia, the largest economy in the MENA region, but the non-oil sector was growing faster than expected.

This was an indication "that the Saudi economy is bottoming up and it shows that the gradual implementation of the fiscal adjustment now is going to allow the Saudi economy to grow faster," Azour said.

He estimated that Saudi Arabia and UAE could achieve a fiscal balance by between 2020 and 2022.

Azour said the introduction of the five percent value-added tax (VAT) was one of the reform measures that would allow the GCC countries to diversify their revenues away from oil.

"Its low rate will have a limited impact on price rise and inflation," said Azour, adding that VAT is estimated to generate between 1.5 and 2% of gross domestic product annually.

So far, Saudi Arabia and UAE have said they would apply the tax at the start of next year while the remaining four nations have the whole of 2018 to implement it. – Rappler.com