BusinessWeek Mindanao (December 24, 2013)

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Volume IV, No. 41

Market Indicators

As of 5:55 pm Dec. 23, 2013 (Monday)

FOREX

PHISIX

US$1 = P44.34

5,854.88 points

16 cents

X X Briefly 19.75 points

Corn production PALAY production in Northern Mindanao posted improvement in the third quarter of 2013 as it grew by 19 percent compared to the production in the same quarter in 2012.

Total palay produced in the region increased from 151,278 metric tons last year to 180,481 metric tons this year with both irrigated and rainfed palay posting growths, Engr. Cecilio Y. Clarete, chief economic development specialist of the Development Research Division of National Economic and Development Authority (NEDA) in the region said in a media forum held recently at the NEDA Conference Room.

He said the positive performance was attributable to the good production in the provinces of Bukidnon, Camiguin, Lanao del Norte and Misamis Occidental.

The 79 percent production increase in Lanao del Norte was due to sufficient rainfall which benefited the province’s rainfed/upland production areas as well as to the movement of harvest to the third quarter, Clarete said.

Capability dev’t MARAWI City -- In an effort to give primacy to the Mindanao peace process, the Moro Islamic Liberation Front (MILF) Ranaw Region Bangsamoro Homeland conducted a two-day capability development seminar with its members and various constituencies in the province.

The capability development seminar on good governance and updates on the GPH-MILF peace process, with the theme “Aiming Towards Excellence in the Emerging Bangsamoro,” was held from December 22 to 23 at Noramis Function Hall, this city.

The two-day activity aimed to discuss with our constituencies the different agreements reached by the government and MILF particularly on the three annexes of the Framework Agreement on the Bangsamoro, said MILF Central Committee Second Vice Chairman Alim Ali Solaiman.

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P15.00

Filinvest raises P10B for tourism, power project

By IRENE DAYO, Reporter

T

HE Filinvest group is returning to the debt market to raise more funds for its tourism and power generation ventures, including the 405-megawatt co a l-f ire d p ower plant in Misamis Oriental.

In its disclosure at the Securities and Exchange Commission (SEC), Filinvest Development Corp indicates that it will raise a maximum of P10 billion from the issuance of unsecured retail bonds. The issuance has an oversubscription of up to P3 billion.

The 10-year bonds will have a fixed interest rate of 5.1512-5.5762 percent per annum.

Net proceeds of P9.89 billion w i l l b e us e d up in the first quarter of 2014 to finance capital e x p e n d i t u re s for the threemonth period amounting to P12.1 billion.

The balance of the sp ending will be funded by inter nally generated funds.

The cap ex covers the repayment of loans amounting to P5.38 billion, the development of the 192ke y C r i ms on Resort and Spa in Boracay for P3.50 billion, and the construction of a 405MW clean c o a l t he r ma l power plant at

Christmas won’t be the same again for Erika

By FROILAN GALLARDO MindaNews

TANAUAN, Leyte -- This Christmas, eleven-year-old Erika Lyn Mansubay would have spent it with her family in a shopping mall not far from their home.

Erika would have danced on Christmas eve while her mother, Edna, would sing on the karaoke till morning.

Sadly, these won’t happen this Christmas, nor in the Christmases of the coming years.

Erika lost her entire family – Diorico, her father; Edna, her mother; her brother Dave Anthony, 9; and her sister Emerald Jane, 6.

Even her uncle, Eduardo Manalo, who lifted Erika to a wooden pole to save her, did not survive the eight-meter storm surge that inundated the town christmas/PAGE 11

CHRISTMAS IN TANAUAN. Despite the devastation, a Christmas tree stands tall by the highway in Tanauuan town in Leyte ib this photo taken on Dec. 18, 2013. mindanews photo by froilan gallardo

filinvest /PAGE 11

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Economy

Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776 Editor: Cheng Ordoñez

Department of Education Undersecretary Rizalino Rivera (left) and Assistant Secretary Jesus Mateo preside jointly during a media briefing related to Clarifications on the Rationalization Plan (RAT Plan) with the goal of improving the quality and efficiency of government services held on Thursday (Dec. 19, 2013) at the DepEd main office in Pasig City. (PNA photos by Johnny D. Guevarra)

Reforms, transparency did in ARMM’s over P1-B budget savings

C O TA BAT O C I T Y - Autonomous Region in Muslim Mindanao (ARMM) Governor Mujiv Hataman on Saturday announced that his administration managed to save more than P1 billion funds out of reforms he and his cabinet had instituted in resource rich but graft ridden regional government.

Hat aman ma d e t he announcement even as he renewed his commitment to step down from office and turn over a reformed regional government with its savings once the Bangsamoro government is fully operational as a result of the government and Moro Islamic Liberation Front (GPH-MILF) peace process.

TheBangsamorogovernment is expected to be established beginning next year.

“By then, we can show to the whole world that the ARMM has done something good for its people,” Hataman said. “Had it been managed properly and

effectively, it would have been the most developed region in Mindanao.”

Part of the savings was used in the procurement of construction and heavy equipment for the ARMM’s five engineering districts.

Among the ARMM regional offices that had savings were surprisingly noted as the most corrupt among the agencies in the region. These are the education and public works.

ARMM is composed of the provinces of Maguindanao, Lanao del Sur, Basilan, Sulu and Tawi-Tawi.

Last month, Secretary Emil Sadain of the public works and highways reported a savings of P363 million worth of infrastructure projects.

About P900 million pesos was saved by the education department with the removal of ghost employees, ghost teachers, ghost students and many other “ghosts,” referring to non-existing employees and projects. (PNA)

Aquino: 2014 budget signing gets Yolanda-hit areas to their feet faster MANILA -- President Benigno S. Aquino III believes that the provinces recently affected by the ravages of natural calamities will once again be on their feet after the government has the necessary funds from the passing of the 2014 national budget, Presidential Communication Operations Office Secretary Herminio “Sonny” Coloma, Jr, said on Sunday.

In a briefing aired over government station dzRB Radyo ng Bayan, Coloma said with the backing of the P2.265 billion budget, the government now has the resources for social services as well as for work and other economic services.

“Matibay ang paniwala at paninindigan ng Pangulo na mapapabilis ang pagbangon

at pagpapanumbalik ng sigla ng lokal na ekonomiya ng mga nasabing bayan at lalawigan matapos niyang lagdaan at isabatas noong Biyernes ang Pambansang Budget para sa 2014,” Coloma said.

“Sa ilalim ng 2.265-trilyong piso na kabuuang halaga ng budget, mahigit sa 37.2 na porsyento o 841.8-bilyong piso ang inilaan para sa

social services, samantalang tutustusan ng 593.1-bilyong piso ang mga gawain at serbisyong pang-ekonomiya,” he added.

He said that aside from this, P100-billion has been set aside for the rehabilitation and construction of buildings and roads damaged by the natural calamities.

“Naglaan din ang pamahalaan ng kabuuang 1 0 0 - bi lyong pi s o p ar a s a p a g b a b a g o n g t at a g at pagsasaayos ng mga mahahalagang gusali, daan, at pampublikong pasilidad sa mga lugar na tinamaan ng iba’t ibang kalamidad at sakuna, bukod pa sa pinalaking P13-billion na

calamity fund na dati ay P7.5-billion na siya ngayong tinaguriang National Disaster Risk Reduction Management Fund,” Coloma said.

He said the President vowed to be transparent and trustworthy with the spending as he noted the budget would be spent in strict compliance with what it was meant for.

“Ipi nap ang a ko ng Pangulo na magiging wasto at masinop ang paggugol ng pamahalaan sa budget, at ang lahat ng gastusin ay magiging bukas sa pagsusuri ng mamamayan, alinsunod sa hangaring inclusive growth and development sa ilalim ng prinsipyong daang matuwid,” Coloma said. (PNA)

UAE applies phase-out sked for old oil tankers ABU DHABI -- Abu Dhabi Ports Company (ADPC), the master developer behind the Khalifa Port near the United Arab Emirates capital Abu

Dhabi, said here on Sunday it applied a phase-out schedule for old oil tankers.

In an e-mailed statement, A DP C s ai d it s ph a s e -

out s che dule has b e en designed in addition to the phase-out schedule already implemented by the International Convention for

the Prevention of Pollution from Ships, also called MARPOL 73/78.

Un d e r t h e n e w ly tankers/PAGE 10

Peso volatility not worrisome – Tetangco MANILA -- The peso has been on depreciation mode for some weeks now given the anticipations for a cut in the US Federal Reserve’s bond-buying program and its materialization last week.

It e n d e d F r i d a y a t 44.50, a tad weaker than the previous day’s 44.43 due to the impact of the announcement regarding the US$ 10 billion cut in the Fed’s US$ 85 billion monthly bondbuying program starting next month.

However, even as the peso is expected to weaken in the next few weeks, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the local currency continues to move in line with the other currencies in the region.

“It’s still reacting to the Fed tapering,” he said.

The central bank chief noted that banks project the peso to regain its strength and improve towards the end peso/PAGE 10

BSP exec sees calamity-related inflows to boost remittances in coming months MANILA -- A ranking central bank official projects the continued rise of inflows sent by overseas Filipinos given the Christmas season and the needs of people in the Visayas to rebuild houses

and structures destroyed by recent calamities.

“Directionally we’ve been telling you that remittances will continue to be strong and supportive of the balance bsp/PAGE 10

Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776 Editor: Nelson Constantino

Apple, China Mobile sign iPhone deal NEW YORK - Apple on Sunday unveiled a longanticipated deal with China Mobile, the world’s biggest wireless carrier, to bring the iPhone to customers in a market dominated by lowcost Android smartphones.

The deal gives Apple a bigger entry into the huge Chinese market and China Mobile’s estimated 760 million subscribers. The network is also rolling out the world’s biggest 4G network.

Under the agreement, iPhone 5s and iPhone 5c phones will be available at China Mobile and Apple retail stores across mainland China starting January 17, Apple said in a statement.

“We know there are many China Mobile customers and potential new customers who are anxiously awaiting the incredible combination of iPhone on China Mobile’s leading network,” said China Mobile chairman Xi Guohua.

Apple chief executive Tim Cook stressed that “China is an extremely important market for Apple and our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world’s largest network.”

He said “iPhone customers in China are an enthusiastic and rapidly growing group, and we can’t think of a better way to welcome in the Chinese New Year than getting an iPhone into the hands of every China Mobile customer who wants one.”

Negotiations between Apple and China Mobile took years, with one key hurdle reportedly being the US firm’s demand for sales volume guarantees.

Analyst Horace Dediu at the consultancy Asymco said a conservative estimate of four percent of China Mobile customers would yield sales of some 30 million iPhones in the first year.

Cantor Fitzgerald Research estimated that 35 million to 45 million iPhones were already on China Mobile’s network as of October, despite the lack of a deal between the companies.

The market tracking firm

CorporateWorld

estimated that Apple could sell as many as 24 million iPhones on the China Mobile network next year if it were added to the network’s formal line-up.

Industry tracker IDC forecast that smartphone sales in China will reach 360 million this year and, with the issuance of 4G network licenses and iPhones launched on China Mobile, top 450 million in 2014.

China Mobile has a unique 3G standard of its own that is not compatible with any existing iPhone models.

Still, the California giant’s handsets can be used on other networks in China.

But the Chinese government granted three s t at e - ow n e d o p e r at or s licenses early this month to offer services on the faster and better quality 4G network, expected to usher in a new era of competition between mobile phone makers.

Apple will still have to compete with low-priced smartphones powered

by Google’s free Android software.

Pricing details were not announced.

Earlier this year, Apple rolled out its iPhone 5C, with a slightly reduced cost to appeal to cost-conscious c onsu me rs , not ably i n developing markets.

The unsubsidized price of the iPhone 5C was $550 in the United States but higher in other countries, often due to tax and regulatory costs.

In China the 5C sells at more than $700.

The iPhone 5C is part of Apple’s bid to counter t h e f l o o d of l ow - c o s t smartphones from rivals, most of which use the Google Android operating system.

Android’s market share rose in the third quarter to 81 percent, extending its lead over Apple’s iOS, used on its iPhones, according to an IDC survey.

Even though iPhone sales grew 25.6 percent from a year earlier, the growth was slower than the overall market and Apple’s share fell to 12.9 percent from 14.4 percent in the same period last year.

Flying V steps up retail expansion FLYING V of the Villavicencio group refuses to be left out in the retail competition arena as it stepped up expansion to reach 500 gas stations next year.

The family-owned corporation is aiming even higher for the entire group for an expansion of retail portfolio to 665 stations in 2014, with the inclusion of Flying V’s affiliates Filoil and Filpride.

Flying V chief operating officer Ramon del Rosario noted that next year’s target will be an addition of 150 stations from 350 this year.

For Filoil, retail network

shoring up will be new 50 stations from 100 currently; while Filpride will be adding up three from 12 stations at present.

Beyond beefing up its service stations, the company is also pushing forward its blueprinted two new terminal investments next year.

The company official indicated these will be sited in Bacolod in the Visayas and General Santos City in Mindanao.

Del Rosario added that there is also “an ongoing expansion of Davao terminal to increase storage capacity retail/PAGE 10

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Western Union reopens branches in Yolanda-devastated areas W E S T E R N Un i o n h a s reopened 83 percent of its money transfer branches in areas devastated by Typhoon ‘Yolanda’.

In a press release, the New York-listed company said at least nine out of 10 Western Union branches in the Visayas are in the cities of Cebu and Iloilo. Of those in Leyte, 47 percent has reopened.

Another 60 percent in Samar likewise opened doors to the public, while 83 percent and 75 percent have done the same in Capiz and Palawan provinces, respectively.

“We know how important access to remittances is for people in disaster-affected areas. Cash is vital to pay for b ot h e ver yday and branches/PAGE 10

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AgriBusiness

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to expand corn Yolanda to hurt coconut oil PHL production for 2014 exports, says industry exec GLOBAL coconut oil supplies will likely fall next year, an industry official said Friday, after the killer typhoon that struck leading exporter Philippines last month destroyed millions of trees used to produce the commodity.

The Philippines provides more than 40 percent of the world’s coconut oil and the areas hit by Super Typhoon Haiyan account for 10-15 percent of the country’s output, said Yvonne Agustin, executive director of the industry group United Coconut Association of the Philippines (UCAP).

“The effect of (Yolanda) will be seen next year, especially in terms of exports of coconut oil,” she told AFP but did not say by how much supplies would be affected.

Ha i y a n l e f t a l m o s t 8,000 people dead or missing, displaced millions

and destroyed crops and businesses when it swept through the central islands of the Philippines on November 8.

Agustin said supplies of coconut oil – a key ingredient in cosmetics, soap and fuel, as well as health drinks – will depend on the extent of the damage to the Philippine trees. She added that prices, which were already rising are expected to increase further as a result.

But she said that while there was widespread damage trees that were not uprooted or whose crown of leaves were not cut off can still recover

and resume fruiting within three or four years.

The Philippine Coconut Aut h or it y d e c l i n e d t o comment on the prospects for the country’s coconut exports but spokesmen noted that the damaged trees accounted for less than one percent of the

country’s estimated total of about 340 million trees.

The government is leading a nationwide replanting program to replace ageing trees, targeting 17.5 million seedlings this year and 19.5 million seedlings next year, coconut/PAGE 10

UN supplies seeds for Yolanda-hit farmers THE UN food agency on Tuesday said it had begun supplying farmers in the Philippines with emergency seed supplies after a devastating typhoon that struck just at the beginning of the planting season.

The Rome-based Fo o d a n d A g r i c u l t u re

Organization (FAO) said it was delivering rice and corn seed to rural communities in the Visayan island group that will allow farmers to collect a harvest in March and April.

FAO’s representative in the Philippines, Rodrigue Vinet, said that without the

harvest, vulnerable farmers would not have been able to harvest rice for almost a year – until October or November 2014.

“Seed distributions have come at a critical moment,” he said in a statement.

FAO said more than 1,000 farmers from the hardest-hit

Eastern and Western Visayas, t he central par t of t he Philippines archipelago, will each receive a 40-kilogram bag of seeds.

It s a i d i t w a s a l s o delivering bags of fertilizer as well as tools and small irrigation water pumps. farmers/PAGE 10

THE Department of Agriculture (DA) is looking at improving its corn selfsufficiency level next year, and will develop the second most important grain as the primary crop for trade by 2015.

“The Philippines has a competitive edge in corn production over neighboring countries like Malaysia and Indonesia, which are highly dependent on the United States for their corn imports,” Agriculture Secretary Proceso J. Alcala told reporters on December 17.

Due to progressive cultivation methods, the secretar y explained, the country can produce corn all-year-round, which is a definite advantage over other Asean countries.

“Areas for white-corn production will be expanded in the Visayas and Mindanao, because the DA would want to ensure that corn-grits production during lean months is sustained and will add to the inventory,” Alcala said on Tuesday.

The department is in the process of securing quality seeds right now in preparation for the lean months, which begin in July.

Doing so will ensure a stable supply of corn grits, the DA official added.

Alcala, however, declined to give definite percentages of growth target for corn, as the stakeholders are still in the process of consolidating their plans for next year.

“The continuing increase in livestock production and the resulting higher demand for corn-based feeds is another reason we are increasing our corn output for the coming years,” Alcala added.

For its strateg y, the government is investing on infrastructure facilities for postharvest, like corn-in-cob dryers and storage silos, to attain the country’s target for corn self-sufficiency, Alcala said. He also added that research is continuing for the improvement of inbred corn varieties, as well as for the commercial corn hybrid seeds.

The DA secretary has recently instr ucted the National Food Authority (NFA) to conduct a market sur vey for corn-grits demand.

The demand poll will cover Metro Manila, with its growing number of residents originally coming from the other two major island grouping of the country.

NFA-accredited retailers can also sell corn grits at the port areas, Alcala also said.

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SSS releases P11.02B for 13th month of pensioners

3 4 th QU AR TER 201

50

P

S E M I T N A Y A Lifestyle CAG T he

THE Social Security System said yesterday it has released P11.02 billion covering the 13th-month bonuses and pensions of nearly two million retirees for December. or incapacitated children of deceased members receiving dependent’s pensions, are entitled to the 13th month pension.

This is in line with the agency’s annual year-end tradition that started in 1988.

According to the SSS, funds for the December and 13th month pensions were released as early as November 15 to the agency’s partner banks, which in turn are tasked to credit the amount to pensioners’ bank accounts.

Some 16,300 pensioners were

NEEDAY TO ST ER ANOTH DAY?

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KRISPY KREME Opens in CDO VIP HOTEVillL’S Christmas age Tradition NEW THERE’S A KAMBINGAN in the Oro

50

P 4th QUARTER 2013

k e e W s s e n i s u B MINDANAO PHO TO BY S.UY

The amount represents an increase of seven percent from the P10.27 billion released by SSS for December and 13th month pensions of 1.7 million pensioners in 2012.

The 13th month pension is equal to the amount of the regular monthly pension of retirees and sur vivor pensioners, while for disability pensioners this excludes the carer’s allowance.

SSS members and beneficiaries getting regular pensions, including minor

scheduled to get the year-end benefit as pension checks were sent via registered mail.

S S S p e n s i on e r s c a n withdraw their monthly pensions on a schedule based on the members’ contingency date for retirement, disability or death.

In view of the Christmas season, however, the SSS has requested banks to disburse the 13th month pensions as early as the first week of this month.

Over 99 percent of the pension fund’s 1.8 million pensioners are enrolled in the Pension Remittance Thru Banks Program, which enables them to withdraw sss/PAGE 10

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Opinion

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The Truth Hurts

T

THINK

hink a minute…Henri Latour was the greatest A Minute detective in France during

By Jhan Tiafau Hurst the 19th century. He was a mastermind at finding evidence and clues, then fitting it all together to find the criminal and bring him to justice.

But mysteriously, this living legend’s career suddenly ended.

Detective Henri Latour was called to the scene of a horrible, violent crime. An old couple had been robbed and brutally murdered. The police had already arrested a suspect. But shortly after studying the crime scene and evidence, Latour’s instincts convinced him that the police had arrested the wrong man.

He promised the police and the family that he would find the missing pieces of the puzzle and the murderer.

So began what many have called the most brilliant tracking of a criminal in the history of France. Henri Latour carefully gathered all the different pieces of evidence, one piece at a time, until he finally found his man and criminal. The newspapers praised Latour’s brilliant detective work and spread the news of his fame all over France. Then suddenly, after solving that case, Latour retired and moved away. In fact, he lived alone for the remaining 25 years of his life.

You see, it was only after he died that the true identity of the last criminal Latour tracked down was made known to the public. In his last case, Latour had refused to back down from the truth, even when his investigation revealed and proved that the murderer was none other than Latour’s own son.

Sometimes the truth can be very painful. But sooner or later we each have to face it: we’ve done some things wrong in our life. And until we admit this fact to our Maker, we’ll never be free from our guilt. It’s then we realize that the price we pay of hurting our pride is nothing compared to losing our relationship with our Maker. And the only thing we have to do is ask Jesus Christ for His forgiveness and new life. Then with Him in charge, we can start changing and living His way, which is the only way we’ll ever have peace of mind and be free.

Just Think a Minute!

Now is the best time for the Philippines to pass a new customs modernization law, as the global business community gathers momentum and makes headway in adopting significant reforms to revitalize the world economy.

Private sta keholders and public officials made a pitch for the passage of a customs modernization and tariffs act (CMTA) and other legislative protocols designed to hasten trade during a recent roundtable discussion in Taguig City.

The CMTA is intended to supplant the Tariff and Customs Code of the Philippines, which was passed way back in 1957 and has been described as outdated and “in dire need of amendment or adjustment to suit current global standards and policies.”

Advocates of a customs modernization law insist it will pave the way for the reform and upgrade of the Bureau of Customs (BOC), a necessary step to help prepare for the launch of the Association of Southeast Asian Nations Single Window and the customs integration program in 2015.

SPECIAL FEATURE BY: PHILEXPORT

The bill will also allow the Philippines to comply with its obligations under the World Trade Organization (WTO) and World Customs Organization.

Miguel Varela, president of the Philippine Chamber of Commerce and Industry, said during the forum that the chamber supports the private-public partnership for reforms to promote ease of trade and improve the competitiveness of industries and fight corruption.

The PCCI, he added, is endorsing the approval of competition, anti-smuggling, and customs modernization laws to enhance transparency and accountability in government in readiness for the ASEAN Economic Community.

Gareth Davies of the Trade Related Development Assistance Project said that an opportunity is presenting itself to the country to “make gains in support of trade facilitation” in light of the WTO’s recent adoption of the Bali package of issues intended to streamline trade.

“Timing is absolutely critical,” he added, as he stressed that the “momentum is here now” for the Philippines to align itself with the snowballing global thrust to bring down trade barriers.

For his part, Alex Gaticales, a customs and trade expert, urged industry stakeholders to evaluate carefully how compliant the proposed CMTA is with the Revised Kyoto Convention, widely regarded as the blueprint for modern and efficient customs procedures in the 21st century.

He also suggested a thorough “line-by-line” public scrutiny of the draft bills proposed by the two legislative houses of Congress for controversial provisions that could impede rather than facilitate customs processing.

Sherwin Castaneda, assistant director at the Bureau of Import Services of the Department of Trade and Industry, lauded the customs modernization act, but suggested further improvements.

These include more provisions that support the growth of small and medium enterprises and easier access online to comprehensive and clear information on import/export procedures, particularly license acquisition.

BusinessWeek MINDANAO

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SPEAKING

April to September 2012.

Among the occupation O ut groups, the laborers and

By Ignacio Bunye unskilled workers (31.3%) were highest in number but the professionals (12.4%) sent higher remittance, which amounted to as much as Php24.8 billion.

Eighty percent of OFWs are in Asia, with Saudi Arabia as the most preferred destination. Of all the remittances that year, 70 percent came from this group, while the rest came from Europe (12.8%), North and South America (10.6%), Australia (3.2%), and Africa (3.1%).

This year, our OFWs are performing better remittancewise due to the sustained demand for skilled and professional Filipino manpower overseas. New data shows a 5.5 percent increase in remittances from landbased workers with long-term contracts for the first ten months of the year. Sea-based workers and land-based workers with short-term contracts have also transferred money more frequently by 7.5 percent.

The BSP, recognizing the contribution of OFWs in our economy, has gone beyond just monitoring their remittance activity. It has created an interactive portal that enables safe, and immediate transfer and settlement using the BSP’s PhilPaSS. This system developed by the IT Sub-sector of BSP utilizes PhilPaSS to conduct electronic settlement of overseas Filipino (OF) remittances. What happens is that the cash is received by overseas branches or correspondent banks and partner remittances agencies abroad of participating commercial banks, governmentowned banks, and thrift banks then this is credited to beneficiary accounts maintained with other banks in the Philippines.

The development of PhilPaSS is part of the advocacy of the BSP to encourage the use of formal channels, like banks, in transferring money to the Philippines to avoid remittance fraud and mishandling.

Making it easier, cheaper and safer for OFWs to bunye/PAGE 10

UCCP

ABELLANOSA ST., CDO

CAPISTRANO ST. CAPISTRANO ST.

contributed and supported the balance of payment surplus particularly during the month of November,” Guinigundo said.

“Basically, the drivers for the balance of payment for December would include foreign exchange deposit by the national government. We also realized some income from the BSP’s investments abroad. And of course the other fund would be coming from the fact that exports continue to grow, personal remittances from overseas Filipino workers remain robust,” he said.

Remittances breached the $2 billion mark for the seventh consecutive month in October to post an all-time high of US$2.3 billion.

“For cash remittances f rom b an ks a lone t hat would be growing by about six percent year-on-year,” Guinigundo said, referring to money sent home by overseas Filipino workers for the holiday and in the case of those with loved ones in typhoon-devastated areas, for relief and rehabilitation.

International aid for the reconstruction after Typhoon ‘Yolanda’ has yet to be reflected in the BOP data, he however said.

Increase in reconstruction expenses BSP/PAGE 10

ecember is always an exciting time for Filipinos.

While employees get their bonuses, families of overseas Filipino workers await remittances from their loved ones abroad, who are usually more generous during this time of the year.

Statistics from the Bangko Sentral ng Pilipinas (BSP) shows that cash inflow from overseas Filipinos (OFs) in the past two decades tends to spike every December.

This influx of foreign exchange is usually followed by the rise in consumer spending as households prepare for their Christmas celebrations.

Since 2003, there were only two times when the remittance rate wasn’t highest in December - in 2005 and in 2008.

In 2012, cash remittances from OFs in December reached US$1,974,528.00, the highest recorded for a month in that year. This year, there’s a huge possibility that we will even go beyond that at the rate we have been going during the past 10 months.

The BSP announced last Monday that personal remittances from OFs crossed the US$ 2 billion mark in October, the seventh consecutive month it did this year. The US$ 2.3 billion that we received that month is also the highest posted in 2013.

So far, we have accumulated US$ 20.5 billion worth of personal remittances for the period January to October 2013. Converted to peso, that’s already Php 912 billion, roughly three times the Php 361 billion needed for the post-Yolanda rehabilitation, as estimated by the National Economic and Development Authority.

The government has always acknowledged the great contribution of remittances in our economy, and its impact is felt not just every December but all year round. This is why Filipinos working overseas are called modern-day heroes.

The salaries and wages they earn abroad and send here make up 11 percent of our economy. Through their hard-earned “padala,” they are able to stabilize our currency and also trigger economic activity as their families use the money to consume goods and services, start businesses, or make investments.

Who are these modern-day heroes? According to a survey done by the Philippine Overseas Employment Authority (POEA) last year, we had about 2.2 million Overseas Filipino workers (OFWs) with work between

VELEZ STREET VELEZ STREET

THE Philippines’ balance of payments (BOP) surplus fell sharply last month, with the central bank expecting this to narrow next year on expectations that imports would pick up as the country rebuilds after a deadly typhoon.

In a report, the Bangko Sentral ng Pilipinas (BSP) to day s aid t he sur plus dropped to $837 million in November from $2.161 billion in the same month last year.

This brought the 11-month tally to $4.7 billion or nearly half the $8.6 billion a year ago.

The BOP summarizes the countr y’s economic transactions with the rest of the world, with a sur plus indicating that foreign exchange earnings outstripped expenditures.

Persistent surpluses help build up the country’s gross international reserves (GIR), an ample supply of which props up the peso and keeps domestic inflation at bay.

D e s pit e Nove mb e r’s contraction, the BOP surplus will remain in surplus this year, BSP Deputy Governor Diwa Guinigundo said.

“Exports are recovering and remittances continue to be robust. Also, the in current account you have tourism as well as revenues from the business process outsourcing

D

The Season of Remittances

JULIOST. PACANA ST. JULIO PACANA

BSP trims 2014 BOP forecast after forex surplus falls sharply in Nov

7

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>>> >>>

MARCOS BRIDGE TO BRGY. CONSOLACION ---->

MARCOS BRIDGE

TO BRGY. CONSOLACION ---->

Church

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Lifestyle

The Night Stalker:

Welcome to Seda Centrio’s 1st Anniversary Party on December 29

C

Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776 Editor: Shaun Uy

agayan de Oro’s premier Urban Lifestyle Hotel marks its 1st Anniversary on Sunday, 29th December 2013 with a day-long celebration of a fruitful first year.

Guests checking in on this date will be treated to a special rate of only PHP 3,450.00 for a Deluxe Room which, if you are young enough to remember, was their introductory rate when they opened a year ago.

This comes with complimentary WiFi, and use of the swimming pool and gym.

On top of this, guests

on this day are entitled to an Anniversary Same Day Advantage - book and check-in on this day and avail of 20% off on your next booking at the Best Available Rate.

“And, since the anniversary falls on a Sunday, Seda’s Sunday Lunch Buffet will have a special price of PHP 365.00, as in the number of days in a year,” says Lorenzo Tang, Seda’s dashing hotel Manager. “We are offering guests a range of Chef's Specials, at a very reasonable price for Kagay-anons to enjoy on

this special date."

Hotel guests on this special day are welcome to join a private intimate cocktail reception al fresco at the Poolside from 06.00pm onwards with live music from Seda’s resident jazz band, Loy Navalle and Friends.

Place your reservations now for this once-in-alifetime milestone!

Call tel. (88) 323-888, fax 323-8891, email cdo@ sedahotels.com or log-in at www.sedahotels.com for more information.

CINEMAGIS is the region’s first short film festival which aims at encouraging our film making enthusiasts to address and reflect on Mindanao experiences, voices, aspirations and issues.

Filmmakers are also encouraged to draw inspirations from any local lore or any pressing realities that capture the essence of MAGIS- a take on doing more, leaping extra mile, or to have more care for others, doing better things for the greater glory of God through renewal of the self.

CINEMAGIS aims at recognizing and strengthening the skills of our filmmakers to come up with significant body of works that will lead them to national recognitions and contribute to the rising Mindanao Film Industry.

This year, CINEMAGIS suggests the following themes, Peace Themes (Inner Peace, Cultural Solidarity, Human Rights, Gender and Development, and Harmony with the Environment); Governance, Environment, Health and Sanitation, Food Security, Cultural Understanding and Awareness and Life’s funny and subtle contradictions.

CINEMAGIS CATEGORIES STUDENT CATEGORY Requirements - Currently enrolled in any school or university in Northern Mindanao; - Resume or Bio Data with two 2x2 ID pictures; - 1 page synopsis of the film; - Certification from any authority or professor who attests the originality of work and photocopy of resident certificate; - 3 copies of the Short Film Entry only in DVD format, 3 copies of short film entry with trailers in Data Format, and 3 copies of trailers and teasers in DVD format only and - Filled out application form.

SENIOR CATEGORY Requirements - Resident of Northern Mindanao; - Resume or Bio Data with two 2x2 ID pictures; - 1 page synopsis of the film; - Certification from any authority or professor who attests the originality of work and photocopy of resident certificate; - 3 copies of the Short Film Entry only in DVD format, 3 copies of short film entry with trailers in Data Format, and 3 copies of trailers and teasers in DVD format only and - Filled out application form.

CINEMAGIS AWARDS Major Best Art Direction Best in Cinematography Best Story Best in Editing Best Sound Scoring Best Actor Best Actress Best Director Best Short Film Minor Male Star of the Night Female Star of the Night Breakthrough Film Material Special Citation on Animation Audience Choice Award DEADLINE FOR SUBMISSION OF ENTRIES:

December 27, 2013 until 9:00 pm

Submit all entries to Mr. Hobart P. Savior Xavier Center for Culture and the Arts 3rd Floor Museo de Oro Xavier University - Ateneo de Cagayan Corrales Avenue, Cagayan de Oro City 9000 Telephone Number 8583116 Local 2059 Mobile Number 09053034377 email hsavior@xu.edu.ph

Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776 Editor: Ronald Mastail

Billboard

Globe Telecom Now Offering iPad Air and iPad mini with Retina display in Philippines

G

lobe Telecom today announced that iPad Air with WiFi + Cellular and iPad mini with Retina display with Wi-Fi + Cellular are now available in the Philippines. Globe Telecom is offering these new iPads with a range of attractive data plans that allow customers to connect to its fast Long Term Evolution (LTE) network with speeds up to 42mbps.

The iPad Air 16GB is available for as low as P1,624 monthly at Plan 499 with P1,125* monthly cashout over a 24-month contract period, which already includes 85 hours of LTE surfing, 20 hours more than its competitor’s offer. Meanwhile, the 32GB variant is available for as low as P1,790 monthly at Plan 499 with P1,291 monthly cashout over a 24-month contract period, also bundled with 85 hours of LTE surfing.

On the other hand, the iPad mini with Retina display 16GB is offered at P1,499 monthly at Plan 499 with P1,000 monthly cashout over a 24-month contract period, complete with 85 hours of LTE surfing, while the 32GB variant is available at P1,665 monthly at Plan 499 with P1,166 monthly cashout over a 24-month contract period also bundled with 85 hours of LTE surfing.

“We are excited to have

iPad Air mini

iPad Air the most affordable and value for money offer for the iPad Air and iPad mini with Retina display in the Philippines, with increased mobile surfing hours to allow our customers to enjoy high-speed and prolonged browsing on the latest Apple tablet devices,” said Raul Macatangay, Head of Globe Postpaid Business and Devices. iPad Air features a stunning 9.7-inch Retina display in a new thinner and lighter design. Precisionengineered to weigh just one pound, iPad Air is 20 percent thinner and 28 percent lighter than the fourth generation iPad, and with a narrower bezel the borders of iPad Air are dramatically thinner—making content even more immersive. iPad

mini with Retina display brings all the pixels from the 9.7-inch iPad to its 7.9-inch screen, delivering razor sharp text and detail in the same amazingly thin and light design. The new iPads feature the powerful and power-efficient Apple-designed A7 chip with 64-bit desktop-class architecture, ultrafast wireless with faster built-in Wi-Fi and expanded LTE cellular connectivity, and the newly-designed iOS 7 featuring hundreds of great new features.

To date, over 80% of the network is already on 4G HSPA+ providing faster mobile browsing experience for customers, complementing the pilot LTE deployments in key business districts.

Nearly 900 Long Term Evolution (LTE) sites in key cities and holiday destinations are now operational.

At the same time, Globe continues to enhance its Service Quality with the continuing optimization and capacity upgrade of its modern network.

For complete details on pricing, please visit www.globe.com.ph/ipadair or www.globe.com. ph/ipadmini. For more information on iPad please visit www.apple.com/ipad. *0% 24 months installment

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implemented scheme, ADPC is advising all port customers and potential port visitors that entry will be refused to oil tankers older than 30 years of age.

While oil tankers which exceed 28 years of age will be refused entry from January 1, 2014, and the same rule will apply to oil tankers older than 25 years of age, from January 1 2015.

Acting CEO at ADPC Juma Al Shamisi said “This is a reminder to shipping traffic that as a responsible port owner and manager ADPC strictly monitors the sea traffic and will refuse port access to oil tankers that do not comply with our policy.”

The company’s 7.2 billion dollars’ worth flagship Khalifa Port which was opened in December 2012 has been designed to serve market needs, mostly for Abu Dhabi, the entire UAE and the region.

Phase One of Khalifa Port, adjacent to Khalifa Industrial Zone or Kizad has a capacity of 2.5 million twenty-food equivalent (TEU) containers, plus 12 million tons of general cargo.

With all phases complete, Khalifa Port will be able to handle 15 million TEUs and 35 million tons of general cargo per year, ADPC said.

(PNA/Xinhua)

Peso... from page 2

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of the year due partly to the strong flows from overseas Filipinos.

He also pointed out t h a t t h e P h i l i p p i n e s’ macrofundamentals remain strong and continue to back the local unit.

He also said that volatility of currencies are also expected in the coming days but not as much as when Fed Chairman Ben Bernanke announced the possibility of a tapering of the Fed’s stimulus program in the second quarter of the year.

“Volatility (is expected) to be short-term and this depends on the pace and the volume of the Fed cut,” he added. (PNA)

BSP...

from page 2

of payment,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said.

He explained that since the Philippines celebrates the longest Christmas season in the world, which starts by September, Filipinos abroad start sending money when the months of the year already ends with “ber”.

He expects remittances for November, in particular, to really increase as overseas Filipinos who have families primarily in Central and Eastern Visayas to send money to help their families here rebuild houses and have their normal lives back after the typhoons and the earthquake.

“So we would expect that there would be some increases

on the basis of those two,” he added.

Last October, remittances p oste d it s re cord - hig h monthly inflows of US$ 2.28 billion.

The latest figure is the seventh consecutive month that remittances reached the US$ 2 billion mark it has the highest monthly growth rate of 8.8 percent.

Inflows of remittances have been surpassing the central bank’s five percent full-year target this year except in March when it grew by 3.7 percent.

Year-on-year, remittances grew by 6.8 percent after it reached US$ 20.45 billion from year-ago’s US$ 19.14 billion.(PNA)

Retail... from page 3

to 60 million liters.” He said this serves as Mindanao’s largest new oil depot.

The executive has also been raising prospects for P20 billion worth of revenues that the company would be able to log next year.

Aside from its retail networks, Flying V also counts on other affiliates with integrated commodities and service offers to the petroleum industry.

These are Lubewell Oil Corporation which is an exclusive aircraft refueller in Clark; USA 88 and ChemAlloy Lubes Corporation.

Branches... from page 3

urgent needs, as are funds for rebuilding later on,” said Patricia Riingen, Senior Vice President, East & South Asia, Western Union.

In the wake of Yolanda’s wrath, Western Union waived fees on money transfers from 43 countries and territories f or t w o w e e k s e n d i n g November 30. The Bangko Sentral ng Pilipinas earlier said remittances are expected to shoot up in the near term, as overseas Filipino workers with relatives in typhoon-hit areas send home more money for the rebuilding efforts.

“Right after the typhoon, our team flew in portable generators and stocks of cash and even used flashlights to conduct transactions in some places, and we were the first to restore service in Tacloban. Now a month later, although there is more work to be done, I am pleased to report that our service has been largely restored, thanks to the commitment and hard work of Western Union agents, employees and supporters,” Riingen said.

M o r e o v e r, We s t e r n Union Foundation helped raise $160,000 for the nongovernment organization Save the Children’s disaster relief and rebuilding efforts in Yolanda-hit areas. This is on top of $100,000 coursed through the same NGO for immediate relief, and $75,000 for post-typhoon work.

The multinational money transfer company’s Philippine agents – Universal Storefront Services Corp, eBusiness Services Inc and Direct Agent

5 – also took part in raising funds from partners and employees for the relief effort.

“As we gradually move into the rebuilding phase of the recovery, it is even more important that we keep the needs of affected communities top of mind. Western Union and our Agents will continue to rally our resources locally and from our global network to support in whatever way we can,” Riingen said.

We s t e r n Un i o n h a s operated in the Philippines for over 23 years and has a network of 8,400 agent locations in 143 cities and 78 provinces.

Coconut... from page 4

they added.

C o conuts b e ar f r uit between three and five years after planting, industry officials said.

Agustin said the typhoon will have little impact on this year’s exports and on Friday the UCAP upgraded its 2013 export forecast to 1.1 million tons earlier this year, from 900,000 tons. – Agence France-Presse

Farmers... from page 4

Humanit ar i an organizations said that 74 percent of farmers in two regions of the Visayas had reported that their crops and seed were lost in the typhoon.

Typhoon Haiyan killed 6,069 people when it struck the country last month, while also destroying more than a million homes, displacing four million people.

A total of 1,779 other people are still missing.

Bunye... from page 7

remit their hard-earned income to their loved ones in the Philippines is the least that BSP can do for our modern-day heroes.

Note: My book, Central Banking for Ever y Juan and Maria is now available in main branches of Fully B o o ke d , Pow e r B o o k s , National Book Store, and University of the Philippines Press.

SSS...

from page 5

their pensions directly from their single savings accounts through Automated Teller Machines (ATMs).

The SSS also releases pensions in the form of mailed checks to pensioners with approved requests for exemption from the program due to valid reasons such as in accessibilty of ATMs in their area.

BSP...

from page 7

For next year, the BOP surplus could go down to $3 billion from the expected $5.3 billion this year, BSP Governor Amando M. Tetangco Jr. said.

From a re c ord h i g h forecast of $11.1 billion this year, the current account surplus would narrow to $10.4 billion in 2014 as the country imports more for the reconstruction effort, Tetangco said.

“Higher imports will lead to higher trade deficit, the reason for lower [current account] surplus,” he said, adding that the country’s purchases from abro ad wou ld g row si x percent next year, or higher t han t he e me rg i ng t wo percent up tick for this year.

For exports, the BSP expects six percent growth next year, higher than the four percent assumption for this year.

As for t he count r y ’s GIR, the BSP expects this to reach $88 billion next year from the forecast $85 billion this year.

“My own expectation is $83 billion to $84 billion (this year). For next year, $86 to $87 billion,” Tetangco said.

The BSP sees foreign direct investments (FDI) climbing to $2.6 billion next year from $2.1 billion this year, whereas remittances would maintain their five percent growth clip until next year. From this year’s forecast of $22.5 billion, remittances would increase to $23.6 billion in 2014.

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DBM defers BSP’s capital infusion THE Aquino administration has deferred the release of the remaining P10-billion capital requirement of the Bangko Sentral ng Pilipinas (BSP) due to super-typhoon “Yolanda” that struck central Philippines.

Budget and Management Secretary Florencio B. Abad said in an interview with reporters that the deferment was meant to make room for t he re c onst r u c t i on and rehabilitation of areas devastated by the recent typhoon.

Abad p ointed t he government will be spending

an additional P34.5 billion this year for central Philippines, while hiking the 2014 rehabilitation and reconstruction budget to P100 billion.

Of the amount for next year, P80 billion will be sourced from unprogrammed funds, while the remaining P20 billion will come from programmed expenditures, the budget chief said.

In December last year, the national government infused P20 billion into the central bank.

The fund was part of the national government’s

11

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legally-mandated equity infusion into the BSP, under the New Central Bank Act of 1993 or Republic Act 7653.

With the new release, the government has already infused a total of P30 billion into the BSP, on top of the P10 billion that the monetary authorities received way back in 1996.

Abad said the national government only needs to cover a remaining P10 billion of a total P50-billion authorized capital stock under the New Central Bank Act. Ab a d e arl i e r s ai d a

stronger and more adequately capitalized BSP was needed in order to sustain the s t a b l e m a c ro e c on om i c and investment climate, especially now that the country is an investment grade nation.

The budget chief added that the additional capital infusion will allow central bank to expand its rediscounting facility and help stimulate economic activity by enhancing the delivery of credit to the private sector, particularly micro, small and mediumscale enterprises.

PH needs policy shakeup to maximize gains from RCEP

By ROMELDA ASCUTIA, Contributor

By pursuing key reforms, the Philippine government has the opportunity to give the economy a big push and maximize potential gains from the proposed Regional Comprehensive Economic Partnership (RCEP).

The 10-member Association of Southeast Asian Nations (ASEAN) is looking to forge the region-wide f ree trade agreement (FTA) with six other Asia-Pacific free trade partnersAustralia, China, Japan, South Korea, India, and New Zealand.

Current negotiations are expected to conclude by the end of 2015. If these are successful, the RCEP will create the world’s biggest trading bloc covering at least 40 percent of world trade and producing an estimated gross domestic product of US$26.2 trillion, according to a recent research paper

from think tank Philippine Institute for Development Studies.

However, initial estimates show that the potential gain accruing to the Philippines is “much smaller than the benefits to be realized by other countries” unless needed structural and institutional reforms are applied, said the paper entitled “Key Reforms for an Effective Regional Comprehensive Economic Partnership.”

These constraints include low use of FTAs largely as a result of an information gap among local companies, investment and growth hindrances arising from inadequate infrastructure and low investor confidence, and restrictions to trade facilitation, customs administration and services liberalization.

Another major challenge, said co-author Gilberto

Filinvest...

Christmas...

at the Phividec Industrial Estate in Villanueva, Misamis Oriental for P3.26 billion.

BPI Capital Corp, First Metro Investments Corp and Standard Chartered Bank were tapped as joint lead underwriters.

L o c a l d e b t w at c h e r Philippine Rating Services Corp has assigned a top credit rating to the bond sale.

Obligations rated “PRS Aaa” have the highest quality with minimal credit risk. It means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong.

Gotianun-owned FDC is returning to the debt market after wholly owned subsidiary F i l i nve s t D e ve l opm e nt C ayman Islands rais e d $300 million from the sale of seven-year notes in March.

Real estate arm Filinvest Land Inc recently raised P7 billion from the sale of seven- and 10-year bonds.

Aside from real estate, hotels and power generation, the Filinvest Group is also engaged in the businesses of financial services, and sugar farming and milling.—with InterAksyon

of Tanauan last November 8.

That fateful day, Erika lost a total of seven relatives when their houses collapsed due to the storm surge and 250-kph winds.

The National Disaster Risk Reduction Management C ouncil reported 1,252 persons died in the town of Tanauan alone. Many of them were buried in roadsides and in front of a church in Tanauan, which were hastily converted into mass graves.

As of this writing, total death toll from super typhoon Yolanda already reached 6,102 persons in Leyte and the entire Visayas.

Evelyn Manalo, sister of Eduardo Manalo, said Erika was found more than 800 meters from her house, clinging to a wooden pole on a pile of debris at a destroyed gasoline station.

Erika said her father had planned for the family to spend Christmas Day at a shopping mall in nearby Tacloban City.

She said their regular Christmas eve would be spent in the family compound singing and feasting.

from page 1

from page 1

Llanto, is a complicated investment incentive system that has resulted in “inefficiencies and overlapping promotional efforts” that keep foreign direct investment inflows relatively low.

Llanto urged policymakers to encourage more widespread u s e o f F TA s t h r o u g h information dissemination on the implication of FTAs for business, the upgrade of technical standards and quality, and the provision of financial support for upgrading technology and skills.

Growth and investment barriers can be leveled down with substantial funding for infrastructure projects and improvements to the regulations governing ports and shipping.

These actions will facilitate connectivity, reduce transaction costs, promote

greater competition, and enhance the accessibility of goods and services by the population, said co-author Kristina Ortiz.

Tr a d e a n d c u s t o m s facilitation can be achieved w i t h t r a n s p a r e n c y, standardization, and harmonization. Fast-tracking of electronic processing of customs requirements, especially of an efficient national single window, likewise needs to be a priority.

To liberalize the services sector, the paper called for a review of all constitutional and legal barriers to investments and trade, particularly the limitation on foreign equity in the ownership and operation of corporations.

And investment incentive packages can be made simpler and more appealing by reforming redundant or overlapping incentives laws.

“I love to dance as Mama sings,” Erika said.

Evelyn said the rest of their family have decided to migrate to Manila after this Christmas, taking Erika with them.

“There is no Christmas in our place anymore. We lost so many of our loved ones here. This is not our home anymore,” Evelyn said.

Alice Limpiado, a Gawad Ka linga volunte er w ho handled the stress debriefing of Erika and other children, said bringing Erika to Manila will not erase her traumatic experience.

Limpiado said Erika is already withdrawing

to her inner self and not participating in the games they designed to ease the sad experience of the children.

“This is a sure sign Erika is withdrawing to her inner self. She does not want to get too friendly with the others. She is suffering her personal hell by herself,” Limpiado said.

Tito Alex Besinga, head of the Gawad Kalinga in Cagayan de Oro City, said all is not lost for Erika. “She survived the worst ordeal anyone can imagine. She is strong, and every day that reality will sink in to her.

She is a survivor,” Besinga said.

CAGAYAN DE ORO MAIN BRANCH P & J Lim Bldg., Tiano Brothers Kalambagohan Sts., Tel. # (08822) 727-829 * Telefax # (088) 856-1947 CAMIGUIN BRANCH B. Aranas St., Poblacion, Mambajao, Camiguin Tel. # (088) 387-0491 CORRALES BRANCH Corrales Ave., Cagayan de Oro City DIVISORIA BRANCH Atty. Erasmo B. Damasing Bldg., #61 Don A. Velez St., Cagayan de Oro City Tel. # (088) 857-3631 LAPASAN BRANCH Lapasan Hi-way, Cagayan de Oro City Tel. # (088) 231-6739 CARMEN BRANCH Vamenta Blvd., Cagayan de Oro City Tel. # (088) 231-2011

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LAZADA Receives $250M Investment Funds to its Global Partners

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The UCCP Praise and Worship Team leads the celebration for the UCCP CDO City Church 97th Founding Anniversary last Dec. 15, 2013.

Pastor Yul Yañez blesses the time capsule during the ground brreaking for the UCCP Cagayan de Oro City Church’s expansion for its sanctuary on the occasion of its 97th founding anniversary last Dec. 15. 2013.

outheast Asia’s largest online shopping mall Lazada, recently announced its global partnership with Tesco PLC, Access Industries, Investment AB Kinnevik and Verlinvest which includes an investment funds of $250 million to its financial portfolio.

The ties with several investors enable the company to further strengthen and bolster its market presence in global e-commerce.

According to Maximilian Bittner, CEO of Lazada Group, “We are delighted to welcome Tesco and Access to join our investor group through this funding round.

Kinnevik and Verlinvest also join the investment, which know for business and operations. With this, it demonstrates that we are making great progress in building a large and sustainable company in Southeast Asia. We are excited to continue this journey together with our investors.”

This marks the first investment by multichannel retailer Tesco into a pure online player in the region and the starting point of close ties. Synergies of this partnership will span across customer analytics, private label development and supply chain management.

Since its launch, Lazada has become the leading online general merchandiser across the region. The company pioneers e-commerce globally by providing a fast, convenient and secure online shopping experience combined with an extensive product offering in categories ranging from mobiles & tablets and consumer electronics to household goods, toys, fashion and sports equipment.

Mia Brunell Livfors, CEO of Kinnevik, said, “Strategic cooperation between long-term financial investors and industry partners can add significant growth momentum and enhanced profitability to e-commerce businesses. We welcome Tesco’s investment in Lazada and look forward to working with them in supporting Maximilian and his team.”

Meanwhile, Robin Terrell, Group Multichannel Director of Tesco, said, “This investment in South East Asia’s largest e-commerce retailer continues

our strategy of developing leading multichannel businesses in core growth markets. Lazada is an exciting, pioneering business, which has developed a marketleading offer in each of its five markets in just 18 months. As South East Asia’s 600 million consumers begin to use Smartphone technology to access retailers online, Lazada has established a strong position from which to grow."

As key pillars of Lazada’s long-term strategy, the company has opened up its platform with great success to third party merchants to increase assortment and allowing both large and small suppliers take advantage of Lazada’s traffic volumes, continued building its category mix by expanding into fashion, and developed an affiliate program that will help the region’s broader web community to flourish by providing web portal and blog owners an opportunity to monetize their website.

In addition, Jörg Mohaupt of Access Industries, said, “Lazada’s management team has put the company on a path to become the premier online shopping destination in Southeast Asia. We are pleased to be part of this dynamic success story.”

As another key cornerstone of the Group’s strategy, Lazada also launched Lamido in Indonesia and Vietnam to tap into the large informal e-commerce market of C2C transactions, which includes thousands of shops on social networks such as Facebook.

Lazada is continuously striving to offer its customers the best possible shopping experience with multiple payment methods including cash on delivery, extensive warranty commitments and free returns.

Being the largest online shopping mall, Lazada operates in Indonesia, Malaysia, Philippines, Thailand and Vietnam.

Dr. Lucille Romblon chairperson of the UCCP Cagayan de Oro City Church Council greets the congregation on the occasion of its 97th Founding Anniversary last Dec. 15, 2013.