...the retail hotspot

PHL retail industry seen as 'hot spot' in intl investment

 

   

Published on Saturday,

17 August 2013 20:14

Written by Bianca Cuaresma

The country’s retail industry is poised to become a “hot spot” for local and international retail investments with the current boom in consumer spending and economic growth, a global investment consultancy group said.

 

Oxford Business Group (OBG), in its economic update last week, said the Philippines represents “an important new market” in retail sales and investment as they expect the growth in the economy and the Filipinos’ purchasing power to continue in the next few years.

 

“Strong economic growth is boosting consumer purchasing power in the Philippines, driving retail sales and creating opportunities for investment by both local and international chains,” OBG said.

 

The report, titled “Retail in the Philippines set to soar and spread,” noted the Philippine Retailers Association’s (PRA) expectation of a double-digit growth in the retail industry to kick in this year, following the 10-percent growth in 2012.

 

Paul Santos, national vice president of the PRA, told OBG the country’s retail sector would be worth P1.61 trillion by 2016, up from P1.43 trillion in 2011.

 

OBG also said officials from international retailers have seen the benefits of investing in the Philippines.

 

“In July 2013 Ian Wade, executive advisor to Sainsbury’s, the UK’s second-largest supermarket chain, said the retail sector needs to market itself more to international brands, praising the Philippines as offering many advantages, compared to its nearby markets.” OBG said in its report.

According to OBG, Wade said the Philippines offers better value for money than its peer countries like Hong Kong.

 

“It has a greater variety of stores than most countries; some of the biggest malls in the world are all in one city. From a retail point of view, the Philippines has a lot to offer,” Wade said.

 

OBG also noted that international retailers expressed their interest in the Philippine market.

 

Earlier this year, the fashion chain H&M said it was in the final stages of penetrating the Philippine market to join other international clothing lines that already launched their brands in the country such as Forever 21 and Uniqlo. In domestic investments, OBG also cited the growth of one of the growing supermarket chains in the country, where the store openings exceeded the administrations’ expectations.

 

“We were supposed to have 200 stores across the country by the end of 2015, but now we’re predicting that for the end of this year,” Leonardo Dayao, Puregold supermarket chain president, told OBG.

 

The Philippines, however, has yet to improve on online shopping as about only 3 percent of Filipinos use e-commerce.

 

OBG said the challenge for online sellers is to find the right payment mechanism for the country.

“Growth in online shopping is just one important change in a rapidly changing retail market, as consumers continue their shift their purchases from informal outlets to chain stores, both local and international,” OBG said.

 

...the 2013 Emmy nominees

Philippines, Brazil networks snag Int’l Emmy nods

Associated Press

August 16, 2013

Photo from http://www.iemmys.tv/

NEW YORK – Brazil’s TV Globo and the Philippines’ GMA Network have each received two International Emmy nominations in the Current Affairs and News categories.

TV Globo’s “Enawene-nawe” (The Spirit-Men), about the threat posed to the culture of an isolated Amazon tribe, and GMA’s “I-Witness – Alkansiya” (Piggy Bank), about a boy in remote Eastern Samar who earns a measly living catching fish, collecting seashells and diving for sea cucumbers, were nominated in the Current Affairs category. Also nominated were “Banaz: An Honor Killing” (Britain) and “ZDFzoom – The Fukushima Lie” (Germany).

The nominees in the News category included TV Globo’s “Jornal Nacional” for its coverage of the deadly January 2012 collapse of three buildings in downtown Rio de Janeiro and GMA’s “24 Oras” (24 Hours) for its reporting on Typhoon Pablo.

The other News nominees were Romania’s “ProTV News” for its reports on a massive snowstorm that buried the country and Britain’s Channel 4 News for its broadcasts on the battle for the Syrian city of Homs.

Bruce L. Paisner, President and CEO of the International Academy of Television Arts & Sciences, noted that the Channel 4 programs paid tribute to Sunday Times reporter Marie Colvin of the U.S. and French photographer Remi Ochlik, who were killed in the fighting in Homs.

“We join in honoring their memory and in recognizing the courage of so many journalists who brave danger on a daily basis,” Paisner said in a news release announcing the nominees on Wednesday.
The international winners will be announced in New York on October 1 as part of the ceremony presenting the News and Documentary Emmy Awards to their American counterparts.


 

...the Convergys pool of talents

Quality talent pool pushes Convergys Philippines' 10-year growth

             

By Dexter Rodrigo Matilla

philstar.com

August 15, 2013

 

 

Convergys heads Marife Zamora (Managing Director for AP and EMEA), Andrea Ayers (President and CEO) and Ivic Mueco (Country Manager) share a light moment during a roundtable with the media recently.

 

 

MANILA, Philippines - One of the pioneers in the BPO (business process outsourcing) industry chalks up its dynamic ten-year growth to the availability of a high quality talent pool in the Philippines.

In 2003, Convergys started with its first site in Makati when the industry was still in its infancy. The company has since emerged as a top and long-running industry performer, boasting over 35,000 employees nationwide, opening a 22nd site by September, and reaping several awards along the way.

A three-time winner of the BPO Employer of the Year award and two-time winner of the BPO Company of the Year in the International ICT Awards, Convergys is also in the PEZA Hall of Fame for winning Top Employer and Top Exporter three times in a row in both categories.

The BPO giant has multiple sites located in nearly every significant business district in the country; from Makati and Ortigas, to Baguio, Bacolod and Cebu. It announced expansion in 8 new sites, notably Alabang 2, Alabang 3, Bacolod 3, Baguio, Cebu-TGU, Megamall, MDC-100 in Libis, and Cebu 5. On its tenth year, Convergys has set its sights on Mindanao and will open its first Davao site by next month.

“From 0 to 35,000 employees in the Philippines today, we achieved in just ten years,” Convergys Country Manager Ivic Mueco said. “We take great pride in our “build-from-within” philosophy: more than 80% of our leaders have grown their careers in Convergys, many of whom started as Agents.”

The Philippines is one of the prime hubs for the Cincinnati-headquartered global company. The country is now its largest geography, taking 44% of their 80,000 global headcount.

Its diverse workforce in the Philippines also includes returning OFWs (overseas Filipino workers) and qualified senior citizens and retirees looking for a second career opportunity.

Mueco said that the factors in having the Philippines as the top location for Convergys varies from the high literacy rate to a business-friendly government. She credited the Filipinos’ way of adapting to various cultures as the main factor of the continuous expansion of the company.

“As part of our commitment to help improve employability of the talent pool, we have a free program called Near-Hire Training. It is a communications training that helps improve chances of success into getting hired for Convergys. We only launched this program in April, but have already trained almost 700 individuals and hired 343 graduates,” Mueco said.

Marife Zamora, Managing Director of Convergys for Asia Pacific and EMEA, pointed out that, “The Philippines has emerged as a top-notch destination for the provision of customer management services to Convergys clients from North America, United Kingdom and Australia. The biggest advantage continues to be the availability and high quality of the potential employee pool found in the Philippines.”

Convergys President and CEO Andrea Ayers, who was in town for the company’s anniversary celebration, was all praises for the local management team.

“We are grateful to our Philippine team for their passion and commitment to superior service delivery for our clients and customers. We are honored and proud that Convergys continues to be the largest private employer in the Philippines,” Ayers said.

Competition to get the best of this potential talent pool remains fierce in the BPO industry. Compared to other industries, BPOs face the challenge of higher employee attrition. Mueco said the company has learned to handle the situation well through various internal programs.

“We emphasize a rewarding work experience and leverage employer branding-- best training, best facilities, best engagement initiatives, and best career opportunities,” she said. “Our goal is for every employee to become a key point of differentiation and a competitive advantage for the company.

 They are our greatest resource and by emphasizing talent development, we are able to help them develop their skills, and move into different roles within the company. We invest in the continuous development of our employees at all levels.”

Asked how the country’s workforce can remain competitive, Mueco advised, “Our opportunity to further grow the BPO industry in the Philippines lies in having a steady supply of talented, English-proficient, customer-service oriented employees and we work closely with the government and academe to ensure the continuing provision of English language skills to the country’s youth.”

 

...the FIBA Asia Stunner

Gilas Pilipinas yields gold medal to Iran in FIBA Asia

By Celest R. Flores, Mark Giongco
INQUIRER.net
Sunday, August 11th, 2013

SATISFYING 2ND PLACE The top three teams Iran, champion; Philippines, in second place; and South Korea, third, pose with their respective officials during the award ceremony at the close of Fiba Asia in MOA Arena. Despite the runner-up finish, the Philippines secured a slot in next year’s Fiba World Cup in Spain. Nuki Sabio/PBA photo

MANILA, Philippines – After securing a slot for next year’s FIBA World Cup in Spain, the Philippines satisfyingly settled for second place following a 71-85 loss to Iran in their gold medal match at the 27th FIBA Asia Men’s Championship Sunday night at the Mall of Asia Arena in Pasay City.

Without the injured Marcus Douthit, Gilas Pilipinas was left without a legitimate center to contain Iran’s seven-foot-two center Hamed Hadadi.

Hadadi, who was named MVP for the third time, caused problems for Gilas on both ends of the floor as he easily came away with 29 points, 16 rebounds and two blocks.

Jayson William, who joined Hadadi in the mythical five, managed to squeeze out another impressive effort with a team-high 18 points, including two freebies that gave the Nationals a 36-35 lead to start the third quarter.

But it was all Iran from there after William’s charities.

Iran, the lone squad who went unbeaten all throughout the tournament, shifted to a higher gear in the second half behind Hadadi, who was just too big for Gilas’ undersized big men Japeth Aguilar, Ranidel de Ocampo and an ailing Marc Pingris to handle.

Down 10, Gilas saw its deficit balloon to 16, 56-72, after three straight inside baskets by the former Memphis Grizzlies reserve Hadadi with 5:08 left.

The 28-year-old Hadadi scored for the final time to put the outcome beyond doubt, 78-63, in the final 2:57 before fouling out 13 seconds later.

Forward Samad Nikkhah Bahrami also caused fits for the Philippines with 19 points and seven assists despite committing seven turnovers while veteran point guard Mahdi Kamrany chipped in 15 points, seven rebounds and five assists.

Jimmy Alapag chipped in 13 points while Jeff Chan had eight.

 

...the Growth Survivors

Growth 'survivors' PHL, Mexico now define emerging markets

By NATSUKO WAKI,

Reuters

July 31, 2013

London — Headline growth numbers are no longer enough to attract foreign capital to emerging markets as discriminating investors home in on countries with the most sustainable economic models.

 

 

Mexico and the Philippines are among those trying to ensure growth can be maintained long-term by encouraging domestic saving that can be used to fund infrastructure projects.

 

 

This transition to a new model is already underway, with equity and bond funds in both countries attracting net inflows in the past six months despite a sharp emerging market sell-off.

 

 

The Federal Reserve's plan to withdraw its massive monetary stimulus is dividing emerging markets fortunes, with capital draining rapidly out of countries with large financing needs.

 

 

To make themselves less vulnerable to the ebb and flow of foreign short-term money, some countries are beginning to invest in their economies, backed by a more stable financing base.

 

 

The Philippines, where remittances from overseas workers provide a steady flow of income, is channeling a pool of domestic money to build airports and roads in a project costing 3 percent of gross domestic product.

 

 

Mexico plans to spend almost a third of GDP on improving its infrastructure in the next six years and is among Latin American countries that have reformed their pension systems to encourage workers to save regularly.

 

 

That creates a base to finance infrastructure spending, which should boost domestic demand and potential growth.

 

 

"In emerging markets, you are no longer trying to find a winner but you're trying to find a survivor," said Salman Ahmed, global fixed income and FX strategist at Lombard Odier Investment Managers.

 

 

"We still think Mexico and Philippines are well placed... Winners of yesterday, Brazil and Turkey, are looking trickier."
 

According to estimates by Lipper, dedicated Mexico equity and bond funds saw a combined inflows of $3.7 billion in the six months to end-June, while Philippine equity and bond funds attracted a combined net inflows of $2.56 billion.

 

 

Mexico's stock market has risen 1.6 percent since May 22, while the broader index has lost nearly 7 percent.

 

 

The Philippines' stock market has risen more than 14 percent in 2013 and its sovereign credit rating is on review for an upgrade by Moody's.

 

 

The ratings firm has cited stable and favorable government funding conditions and a strengthened government policy mandate among triggers for the rating review.

 

 

HOW TO SPEND IT

 

 

Latin America is a step ahead in building up an institutional domestic savings base, having reformed its pension systems following the debt crisis of the 1980s. Mexico, Chile, Peru, and Columbia all have relatively high savings rates of above 20 percent of GDP, according to the World Bank.

 

 

Chile is the highest-ranked emerging economy after Singapore and Taiwan in BlackRock's Sovereign Risk Index, which measures credit risk through a broad list of fiscal, financial and institutional metrics.
 

"It's interesting to know that a considerable number of emerging markets get very high ratings in that index because of domestic finance savings institutions," said Ewen Cameron Watt, BlackRock Investment Institute's chief investment strategist.
 

"Countries that are tending to find their financing of currencies more resilient are those who have deepened their domestic financial system, usually with the development of the domestic contractual financing and savings industry."
 

Mexico is beginning to channel domestic savings to building projects via its state pension funds, which have about 1.919 trillion Mexican peso ($150.76 billion) in assets, representing about 23 percent of private savings. They hold 1.5 percent of assets in domestic debt specifically labeled as infrastructure.

 

 

State funds may be key to its plans to spend $300 billion in the next six years to build highways, rail lines and communications infrastructure, and upgrade the country's ports.

 

 

After two decades without a passenger rail service, Mexico has earmarked 95 million pesos for three routes, including a 300-km line across the Yucatan peninsula, home to its famous Cancun beach resort and the ancient Maya pyramids.

 

 

The government has also promised to consider a second airport in Mexico City to ease pressure on the current sole hub, which is Latin America's second largest by traffic.

 

 

The Philippines government has offered private sector firms contracts to modernize at least five airports in two of its three main regions and will soon take bids for an $814-million toll road contract in two provinces just south of the capital.

 

 

For both economies, Japan could be a model. Much of its post-war growth, kick-started with foreign capital, was driven by private savings that were channeled by banks to finance massive infrastructure and reconstruction projects.

 

 

By the time it passed West Germany to become the world's No. 2 economy in the 1960s, Japan no longer relied on foreign capital to grow.

 

 

"Infrastructure in the long term is a positive factor. It makes you more competitive and improves the supply side of the economy," Ahmed at Lombard Odier said. — Reuters

 

 

...the Japan's R & I PHL outlook

Japan rating firm lifts outlook on Philippines, signals possible upgrade


By: InterAksyon.com
August 2, 2013



MANILA -  Japan's Rating & Investment Information Inc (R&I) today raised its outlook on the Philippines to positive, saying an upgrade is possible if the country sustains economic growth and raises Filipinos' incomes.

In a report issued on Friday, R&I revised its outlook from stable to positive, citing the Philippines' robust economic growth, its dollar surplus and the government's improving finances. R&I rates the country as investment grade with a score of "BBB-".

In revising its outlook, R&I cited the Philippines' "strong growth thanks to continued robust consumption driven by remittances from (OFWs), coupled with expansions in public investment and exports."

The Japanese debt watcher also cited stable inflation, rising foreign reserves brought about by the "sustained" current account surplus and the "steady progress of fiscal consolidation."

With its finances in order, the government "is now able to allocate more fiscal budgets, albeit gradually, to infrastructure projects and educational policies," R&I said.

It also pointed to gains on the political front, principally the peace efforts in western Mindanao, which in turn would improve the investment climate.

"If fundamentals for economic growth are solidified and steady increases in per-capita income become more promising, R&I will consider a rating upgrade," the rating firm said.

"Opportunity for catching up"

It noted that the Philippines is the only one among the Asean-5 that has yet to attain a per capita gross domestic product (GDP) of $3,000, but added that "at long last, the country sees a clearer opportunity for catching up." Apart from the Philippines, the other founding members of Asean are Indonesia, Malaysia, Singapore and Thailand.

The Philippines' GDP grew a record 7.8 percent in the first quarter of this year, well above the full-year official target of 6-7 percent. The country's economic managers have since expressed confidence that full-year GDP expansion would hit a fresh record.

But poverty has been stubborn, refusing to budge from levels seen six years ago. Likewise, the record economic expansion has failed to dampen unemployment, raising concerns about "jobless growth."

R&I however acknowledged that addressing the above problems "is not an overnight task."

"A focus will be placed on whether the Aquino administration will be able to make the best use of positive factors, such as the strong economic growth and political stability, in efforts to break a stalemate in investment, a structural problem that has haunted the Philippine economy," the rating firm said.

"Great strides for lasting peace"

Finance Secretary Cesar V. Purisima welcomed R&I's outlook upgrade, saying, "The gains of good governance are again recognized by those who monitor world economies, with our tax collection reforms and our landmark sin tax reform law contributing greatly to the positive outlook."

“I commend R&I for noting not just the prudent fiscal management we have implemented under President Aquino, but the great strides we have taken towards lasting peace in Mindanao. With the recent signing of the wealth sharing annex to the Framework Agreement on the Bangsamoro, we have come closer to enshrining perpetual inclusive growth in law for all Filipinos," Purisima said in a statement.

Another Japanese rating firm, Japanese Credit Rating Agency (JCR), last May upgraded the Philippines, after Fitch Ratings and Standard & Poor's promoted the country to investment grade.

R&I's revision in its outlook comes a week after Moody's Investors Service served notice that it placed the Philippines on review for a possible upgrade to investment status.

 

...the Disney's star proud roots

Disney star Roshon Fegan: 'I'm very proud to be Filipino'

By LAWRENCE C. OCHOA

August 2, 2013

 

I am very proud to be Filipino and represent…y’know Pinoy Power!” Disney star Roshon Fegan could not have stressed it enough as I asked him about heritage and pride.

 

 

“Roshon” to thousands of screaming fans, who gathered July 26 at the Universal CityWalk, topped this week’s headliners celebrating the world famous tourist attraction on its 20th anniversary.

 

 

Born and raised in Los Angeles, Roshon is remembered most lately by all avid viewers of “Dancing with the Stars” as a finalist on its 14th season. He’s been described as not only as an actor but also as a rapper, singer-songwriter, and freestyle dancer.


The younger generation definitely knows him from “Shake it Up,” and the “Camp Rock” movie franchise starring the Jonas Brothers and Demi Lovato.

 

 

As I walked into the capacity crowd of the CityWalk, I observed that his fans come from all demographics by ethnicity and age.

 

 

Man, it’s awesome that you have made a breakthrough; how do you feel about cultural expectations from both sides of your heritage, I asked him.

 

 

“I was born and raised here in Los Angeles,” Roshon began. “So this is all I know, this is my lifestyle; but I do know that there’s a lot of people in the Philippines watching every move I make and making sure they’re proud of the moves that I make; I try to keep it in my mind at all times and I try to make very, very wise decisions.”

 

 

He’s aware that mainstream culture celebrates his talent in dance and acting.

 

 

“I’m committed to art but I also support Filipino (heritage), if that makes sense haha, “he added bashfully.

 

 

His mother Cion hails from Manila. “But please don’t ask me from what town because I always forget the name of the place,” he laughed. His father is African American actor and producer, Roy Fegan, whose television credits include “The Shield” “Married… with Children,” “The Meteor Man” and “Will & Grace.”

 

 

He says he’s quite conscious that he has to serve as a role model to his younger fans to make a meaningful influence.

 

 

A result of his loyalty to his fan base could be seen from the huge crowd turnout at the Universal Studios. Journalist Lydia Solis, said this is the second time that Universal brought him to entertain their patrons: “The last one was around March which also brought thousands of fans, many Filipino youths,” she said.

 

 

From my initial interactions with him, I find him to be humble, and approachable despite his successes in his young life. I first saw him in his early cameos in “Spiderman 2,” to his supporting credits in “Camp Rock,” to headlining his own popular show, “Shake it Up,” where he plays the popular character, Ty Blue. He’s just launched his own music company. It’s impressive how Roshon managed to retain his exuberance and optimism despite Hollywood.

 

 

Judging from his acting forays, he’s already created a global network of followers. If you ask me, he is that proverbial ambassador from the Filipino demographic to the pop culture of America. Definitely his status as a Pinoy icon is firm and well-founded. - The FilAm Los Angeles