Investments in economic zones grew 153% in 5 months

By Othel V. Campos

CUMULATIVE investments approved by the Philippine Economic Zone Authority grew by 153.74 percent in the first five months to P48 billion from P18.92 billion in the same period in 2022.

PEZA director-general Tereso Panga said the agency is close to reaching its 10-percent growth target in 2023. He said 20 projects registered in May would bring an estimated P14.93 billion worth of investments. The agency said of the 20 projects ap- proved in the last week of May, 11 are into export manufacturing; seven are IT projects; one is a facility; and another is on ecozone development. The projects will be spread out in Makati, Pasig, Taguig, Baguio, Pampanga, Cavite, Batangas, Laguna, Cebu, Iloilo and South Cotabato.

The biggest project pre-qualified by the PEZA board for approval by the Fiscal Incentives Review Board is the P11.63-billion solar wafer cells manufacturing by Maxeon Solar Technologies using Maxeon 7 technologyin Sto. Tomas, Batangas.

Panga said the newly-approved projects were expected to generate about $293.55 million in exports and create 4,480 direct jobs.

“We are continuously seeing an uptrend with our investment approvals as we enter the first half of the year, and we are more aggressive in our initiatives to help our investors make the Philippines their smart investment choice, taking the cue from President Ferdinand Marcos Jr. who has been most active in promoting the Philippines in his outbound missions,” Panga said.

PEZA is constantly teaming up with government agencies and various in- dustry associations to address the pain points that hinder investors to unlock the untapped potentials of the Philippines, he said. PEZA officials recently met with Finance Secretary Benjamin Diokno, Commission on Election Chairman George Garcia and National Economic and Development Authority Secretary Arsenio Balisacan to discuss the concerns of investors and present PEZA’s initiatives in support of the investment attraction and facilitation strategy of the government.

Credit card group reports drop in payment delinquency to 3.26%

By Julito G. Rada

THE Credit Card Association of the Philippines, a group of 17 major credit card issuers, reported a decline in delinquency rate since the onset of the pandemic.

CCAP executive director Alex Ilagan said in a statement that from 4.36 percent in the fourth quarter of 2019, the delinquency rate peaked at 8.37 percent at the height of the pandemic in 2020 before falling to 4.03 percent in 2021when mobility restrictions were relaxed by the government.

the highest since the pandemic started in 2020 as Filipinos took to shopping, traveling and buying goods after being on lockdown for nearly two years.

“The jump in credit card billings is an indicator of higher consumer spending, a major driver in the economy’s postpandemic recovery,” Ilagan said.

Ilagan said Filipinos should be responsible owners of credit cards. “We must bear in mind that a credit card is not ‘free money.’”

Ilagan said he expects the delinquency rate to continue to fall if more Filipinos become responsible credit card users.

ICTSI INVESTMENTS. Matadi Gateway Terminal, International Container Terminal Services Inc.’s operation in the Democratic Republic of the Congo, unveils new investments that will advance terminal efficiency and provide easier access to the Port of Matadi for the benefit of clients and port users. MGT recently inaugurated four new hybrid rubber tired gantries, the first of their kind in African ports, to level up the terminal’s efficiency and productivity while ensuring minimal impact on the environment. MGT also launched the Western Urban Road Project with the ceremonial laying of the first stone led by Governor Guy Bandu Ndungidi (left) of Kongo Central Province. MGT will fund the construction of a 2.65-kilometer road that will connect the Port of Matadi to Kinkanda traffic circle.

The rate eased further to 3.32 percent in the same period in 2022 and to 3.26 percent in the first quarter of 2023. Card delinquency refers to the payment of less than the minimum amount of credit card debt for at least three billing cycles.

Ilagan said delinquency has been falling despite the 47-percent increase in gross billings to P410 billion in the first three months of the year from P279 billion a year ago.

The first-quarter 2023 growth rate was

To convert Filipinos into responsible borrowers, CCAP has been conducting credit awareness programs for colleges and universities as well as companies since 2017 to educate everyone on the proper use of credit cards.

CCAP said credit card users should avoid their use beyond one’s capability, only to repay the debt late. Spending beyond one’s means will result in unmanageable debt and additional charges that further inflate the balance, it said.

German chamber, Napocor team up to study use of green hydrogen, fuel cell

THE German-Philippine Chamber of Commerce and Industry and state-run National Power Corp. teamed up to conduct a feasibility study on the use of green hydrogen and fuel cell technologies in off-grid areas.

The collaboration aims to promote knowledge transfer, modernization opportunities and the economic achievement of clean and affordable energy.

“Napocor is excited to partner with GPCCI in exploring the potential of green hydrogen and fuel cell technologies in off-grid areas,” said Napocor president Fernando Martin Roxas.

“With our mandate to provide electricity to rural areas and our commitment to optimizing power generation assets, this collaboration presents an opportunity to modernize power systems and reduce emissions. We believe this feasibility study will pave the way for a sustainable and climate-friendly energy transition in the Philippines,” Roxas said.

The purpose of the joint project is to produce a comprehensive feasibility study titled “Feasibility Study for Green Hydrogen Technology in Off-Grid Areas in the Philippines.”

The study aims to support the modernization of power-generating assets in off-grid areas by exploring the potential replacement of diesel-powered systems with green hydrogen and fuel cell technologies.

The project, which will be implemented in three phases, aims to make a positive contribution to climate change by reducing emissions in an economically viable manner.

It is supported by the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety, with the goal to promote technologies to protect the environment. Two suitable sites will be selected based on criteria such as renewable resource availability, economic factors, accessibility and community support under phase 1 (set-up and coordination).

Alena Mae S. Flores and Othel V. Campos

Fernandes wants to form new ride hailing app in

PH

CAPITAL A, formerly known as the AirAsia Group, said Monday said it plans to launch a ride hailing platform in the Philippines to reduce transportation and logistic costs.

“Our dream is to move people in the sky and on the road. We need to go to the airport, right, we need to come to the airport. When you are traveling, you need someone to move you around as well,” said Capital A chief executive Tony Fernandes. Fernandes said he would meet with Transportation Secretary Jaime Bautista to discuss the group’s plan to operate a ride hailing platform in the country.

“I hope we can discuss the license. We think it’s good. I’m all about reducing cost. So, yes we’re gonna join,” he said.

Capital A launched its ride hailing platform called AirAsia Ride in Malaysia in August 2021 and expanded to Thailand and Indonesia as part of its digital transformation in 2022.

Capital A also launched Airasia Super App, an integrated digital travel and lifestyle platform in April last year to further stimulate the country’s strong e-commerce market. Darwin G. Amojelar

Over 400 PH businesses accept Bitcoin payments

A PAYMENT financial technology provider is transforming the landscape of the Philippine digital economy by enabling more than 400 small businesses to accept and process Bitcoin payments.

Pouch.ph is tapping into the country’s vast pool of tiny merchants―from mom-and-pop stores to boutique hotels.

Pouch.ph utilizes Lightning Network built atop Bitcoin to make digital payments quicker, cheaper and more user-friendly. The payment protocol allows customers to pay by scanning a merchant’s QR code with any Bitcoin wallet. Pouch.ph then converts that Bitcoin to pesos and sends the money directly to the merchant’s bank or mobile money account, making the process easy and efficient for both parties.

“One of the most significant challenges for the growth of small businesses is the availability of payment methods, with credit cards charging fees up to three percent. With the growing number of internet and smartphone users in the Philippines, Bitcoin as a payment method will allow those who do not have credit cards or even local fiat currency to make online or in-store purchases. We’re helping businesses open up a vast market that was previously untapped,” said Pouch.ph chief executive Ethan Rose. More than 250 local businesses in the popular tourist destination of Boracay, including convenience stores, cafes, hotels and restaurants have enrolled with Pouch.ph and have been integrating Bitcoin payments into their daily operations.

PACEOS elects new set of officers for 2023

THE Philippine Association of Convention/Exhibition Organizers and Suppliers Inc. elected a new set of officers for 2023 during its general membership meeting held recently at Conrad Hotel Manila in Pasay City. Meetings, Incentives, Conferences and Exhibitions maven Pamela Pascual was elected president of PACEOS and will serve with other board members to champion various initiatives that will help the exhibitions industry sustain its strong recovery this year. Other trustees elected are Monnette Hamlin (vice president-conventions), Patrick Lawrence Tan (VP-exhibitions), Agnes Pacis (VP-suppliers), Sonia Sayaman (corporate secretary), Deedee Ledonio (treasurer), Orly Ballesteros, Ma. Lourdes Mediran and Cynthia Mamon. Former president Joel Pascual was elected chairman.

“Together with the new board, we will continue to strengthen our facilities and programs to meet new challenges and maximize opportunities in the changing global market conditions in order to fulfill our mission of developing the Philippines as a leading exhibition and convention destination in Asia,” said Pascual.

Pascual has led the World Trade Center Metro Manila for the past 15 years, guiding it to a dominant position in the country’s exhibitions industry.

D&L names former NEDA secretary as independent director

By Jenniffer B. Austria

D&L Industries Inc. announced Monday the election of former National Economic and Development Authority Secretary Karl Kendrick Chua as an independent director of the company.

Chua replaced businessman Filemon Berba who served on D&L’s board from 2012 until his passing on April 4.

“We are pleased to welcome Karl to our board of directors. He brings a fresh perspective with his distinguished experience as an economist, working for the World Bank for over a decade and serving the government in various strategic leadership roles thereafter,” D&L president and chief executive Alvin Lao said. D&L said with the election of Chua, four of seven seats or a majority of the board continued to be held by independent directors.

The three other independent directors are Atty. Mercedita Nolledo, Corazon de la Paz-Bernardo and Dr. Lydia BalatbatEchauz.

“With independent directors continuing to hold a majority of our board, the company remains committed to upholding good governance and transparency,” Lao said.

Chua was previously with the World Bank as an economist, and more recently as National Economic and Development Authority chief and undersecretary of the Department of Finance.

He has extensive experience in the areas of economic and fiscal policy, statistical development, national identification, labor and social protection policy, poverty analysis and digital transformation, among others.

D&L announced during the company’s annual stockholders meeting a record dividend payout of P0.30 per share consisting of a regular cash dividend of P0.24 per share plus a special cash dividend of P0.06 to shareholders of record as of June 20.