MANILA, Philippines – Homegrown fast-food giant Jollibee Foods Corporation (JFC) has bagged its biggest multinational acquisition to date with a US$350-million deal to take over American specialty coffee and tea brand The Coffee Bean & Tea Leaf (CBTL).
The total consideration for this acquisition is $350 million on a debt-free basis but Jollibee’s net investment is estimated at $100 million, the company disclosed to the Philippine Stock Exchange on Wednesday.
Jollibee, through Singapore-based subsidiary Jollibee Worldwide Pte Ltd., will initially finance the entire acquisition through a bridge loan.
Its investment of $100 million represents 80 percent of the equity of the holding company that will acquire 100 percent of CBTL. The balance of $250 million will be made as advances to the new holding company.
Read more: Philippine Inquirer
At least 86,000 medium, small and micro enterprises (MSMEs) received P3 billion worth of assistance in the last two years, President Rodrigo Duterte said during his fourth State of the Nation Address.
“86,000 MSMEs have received over P3 billion worth of loans since 2017, thanks to Secretary [Ramon] Lopez and the DTI,” Duterte said.
Duterte also cited the passage into law of additional benefits for solo parents, as well as the proposed expansion of the Malasakit Center, which is a one-stop shop for the public who seeks medical aid from government.
“‘Yung expansion ng Malasakit centers, that is also what we want to achieve…the original concept of Bong Go, para manalo sa kampanya,” Duterte said.
Go served as a longtime aide of Duterte before he won a Senate seat in the May polls.
“Totohanin natin ‘yan, Bong, kung hindi, mapapahiya tayo,” Duterte added. —LDF, GMA News
Read more: GMA News
TAIPEI – Malaysian low-cost airline AirAsia announced on Thursday (May 30) the inauguration of a new flight route between Kaohsiung and Clark in the Philippines on Aug. 1, eyeing at the lucrative air travel market in southern Taiwan.
Tickets are now available, with a single journey ticket priced at NT$488 (excluding tax), reports Liberty Times.
The Kuala Lumpur-based budget carrier started flying from Taipei to Clark in July 2018. The route has been well-received among business travelers and thrifty consumers.
The new route is expected to boost the appeal of the Southeast Asian country as a travel destination for people in Taiwan. Clark serves as an ideal transfer hub for those planning to visit other Philippine attractions, such as Palawan and Iloilo.
Clark, also known as the Clark Freeport Zone, is a redeveloped area of what was formerly a U.S. airbase in Pampanga province. The zone has been rejuvenated as a “green city,” only an hour's drive from the country’s capital Manila and tourist attraction Subic Bay.
MANILA, Philippines — The Ninoy Aquino International Airport was named one of the best airports for business travelers this year.
NAIA ranked 44th on the Globehunter’s World’s Best Airports for Business Travelers list which chose the top 45 countries this year.
Globehunter is the United Kingdom’s business class flight specialist.
“All over the world, airports are a hub for business travellers as they jet off across the globe. However, not all airports are created equal and some offer a far better experience for those who are flying for business,” Globehunter said.
“We’ve taken a look at some of the busiest airports around the world and compared the facilities and services they offer, from the cost of parking to the number of lounges available,” it added.
Read more: The Philippine Star
MANILA, Philippines — The food retail industry in the country will continue to expand with total sales expected to reach a record-high $50 billion, driven by rising income and a growing population.
In the latest report of the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS), the domestic food retail market is seen increasing by 5.4 percent to $50 billion from $47.4 billion last year.
“Driven by rising incomes, a growing population, and a strong preference for American brands, the Philippines imported $1.09 billion of US consumer-oriented products in 2018. US exports in this sector may grow further in 2019, reaching an all-time high of $1.2 billion,” USDA said.
“With a growing middle class and a large, young population, the Philippine economy is rooted in strong consumer demand, boosted by rising incomes and overseas remittances,” it added.
Last year, Filipino households spent more than half of their budget on essentials including food.
Purchases of food and non-alcoholic beverages comprised almost 40 percent of total household expenditures in 2018.
The country’s traditional “sari-sari” stores still dominate the food retail market, which accounts for 58 percent of the market.
Read more: The Philippine Star
MANILA, Philippines — A delegation of Philippine food companies generated $23 million worth of export sales from the recent Taipei International Food Show (TIFS), lower than the $26 million target.
According to the Center for International Trade Expositions and Missions (CITEM), the Philippine delegation comprised of 11 food firms.
CITEM, the Department of Trade and Industry’s exports promotion arm, organized the Philippine delegation to the TIFS.
While this year’s sales are lower, CITEM considers the country’s participation at the event as a good platform to promote Philippine food products.
“Our goal for this trade show is to promote the Philippines as a viable source of healthier and innovative food products and ingredients to address the growing health trends around the globe,” CITEM executive director Pauline Suaco-Juan said.
Read more: Philippine Star
The Department of Trade and Industry (DTI), as Chair of the Micro, Small, and Medium Enterprise Development Council (MSMEDC), staged this year’s National MSME Summit on 16 July 2019 at the Philippine International Convention Center (PICC), Pasay City to showcase vital and game-changing whole-of-government policy reforms, programs, and initiatives to empower and build revolutionary Filipino entrepreneurs.
Driven by the government’s strong desire to encourage innovation among MSMEs, the Summit’s theme—“Inclusive and Sustainable Innovations for Globally Competitive MSMEs”—underscores the need to develop MSMEs and young entrepreneurs by equipping them with the values, skills, and entrepreneurial spirit necessary for their businesses to succeed in the digital economy.
“We attribute our country’s undeniable economic growth and success to the vibrant entrepreneurial spirit of the MSME sector, which plays a significant role in reducing poverty and achieving inclusive growth,” DTI Secretary Lopez said during the Summit.
The DTI Chief noted that data gathered from the Local Government Units (LGUs), through the Philippine Business Registry (PBR), indicated that there are about 1.5million registered enterprises in the country.
“We need to encourage all MSMEs to innovate. I remember very simply—anything new to a firm is innovation, anything new to the world is invention. We call on MSMEs to explore novel ideas, business models, transform from traditional to digital,” DTI-Regional Operations Group (ROG) Undersecretary Zenaida Maglaya said.
The Philippines is currently considered one of Asia's economic bright spot, with GDP growing at an average of over 6%. The country has also been given high investment grade ratings of ‘BBB+’ – highest ever, notch lower ‘A’ rating from international credit rating agencies. And as of April 2019, the country’s unemployment rate slid down to 5.1% and underemployment was at a record-low of 13.5%.
In line with the vision of President Rodrigo Roa Duterte to provide better and comfortable lives for all Filipinos, Secretary Lopez highlighted various MSME programs under the 7-point strategy essential for MSME development — mindset, mastery, mentoring, markets, money, machines, and models — that are focused and targeted to benefit those at the bottom of the pyramid, and aimed to help ordinary people succeed and prosper in life.
Read more: Department of Trade and Industry
TAIPEI -- Apple is about to start trial production of its popular AirPods wireless earphones in Vietnam as the company accelerates plans to diversify manufacturing of its consumer electronics lineup beyond China, Nikkei Asian Review has learned.
China's Goertek, one of Apple's key contract manufacturers, this summer will begin testing the resilience of its manufacturing processes for the newest generation of AirPods at the company's audio factory in northern Vietnam, two sources with knowledge of the plan said.
This will mark the first production of the wireless earbuds -- which came to market in 2016 -- outside the world's second-largest economy. They are Apple's fastest growing product, racking up 35 million shipments last year against 20 million in 2017.
Apple has written to components suppliers, asking them to support Goertek's efforts despite initially very small volumes, according to a communication seen by the Nikkei Asian Review.
"Suppliers are requested to keep the pricing unchanged for the trial production stage, but this can be reviewed once volumes are increased," said one of the sources with direct knowledge of the communication.
President Rodrigo Duterte has signed the Innovative Startup Act, which would “support the research and development of startups and startup enablers in the Philippines.”
The new law aims to “support and promote the access to startup development programs” in the Philippines.
It also aims to “support the development and growth of enterprises whose innovative product, service, or business model is integral to creating a competitive startup community in the Philippines.”
The law also created the Philippine Startup Development Program or simply referred to as the “Program.”
“The Program shall be composed of programs, benefits, and incentives for startups and startup enablers promulgated through the respective mandates of national government agencies and through additional mandates provided by the provisions of this Act,” the new law states.
“The Program shall also include programs, benefits and incentives for startup and startup enablers extended by NGO’s in partnership with national government agency,” it added.
Read more: Philippine Inquirer
A Case for Resurgence in the Philippine Textile Industry and how Collaboration with Taiwan will prove Mutually Beneficial
In the 1990’s, the Philippine garments and textile industry was second only to semiconductors, as the country’s largest export sector. This all changed when the Multi-Fiber Agreement (MFA) which granted quota allocations from developing countries like the Philippines to developed countries ended in 2005.
As a result, what was once considered sunrise industry in the 1990s, quickly declined to becoming a sunset industry, with much of the global textile manufacturing business going to countries like China, Vietnam and India. Garment and textile enterprises in the Philippines which relied on the quotas underwent difficulties leading to closures of factories and downsizing.
According to a report by UN Comtrade, the Philippines was ranked 6th in 1970 among top exporters of garments and apparel to the United States. The Philippine garments and textiles industry posted continuous declines between 2005 and 2011, dropping 3% from US 2.29 million in 2005 to US$ 1.4 Billion in 2011. As of 2016, the industry exported a total of US$ 1.22 Billion worth of garments.
“Our garments industry used to be one of the top performing sectors both locally and internationally. But with the challenges brought about by the MFA, we saw a decline in the sector’s general performance,” said Undersecretary Ceferino Rodolfo of the Department of Trade and Industry and Managing Head of the the Philippine Board of Investments.
Given the Philippine’s substantial 100 million-population domestic market and local demand the Philippine Department of Trade and Industry still sees promising potentials for the Philippine garments and textiles industry. The Philippine Board of Investments focused its strategies to secure valuable global market access to key export markets such as Japan, Europe and the United States with Free Trade Agreements and Preferential Trade Arrangements. These strategic policies have proven very advantageous.
The Philippines enjoys highly advantageous extended coverage GSP privileges in the US, with zero or significantly reduced tariffs across 5,057 products lines or 48% of the US’s tariff lines. The Philippines is also the only South East Asian country that enjoys GSP + privileges across more than 6,000 product lines that are exported to the European Union’s 28 member countries. In the USA, 70% to 80% of all Philippine Exports enter the US duty-free under the GSP or MFN arrangements.
Two years ago, the Philippines also successfully negotiated its Free Trade Agreement with EFTA countries in Europe. As a member of the ASEAN, the country also enjoys FTA privileges with ASEAN’s FTA partners such as Japan, China, India, Korea and Australia and New Zealand.
The Philippines, forecasted to rank at 24th, is also on-track to be a one trillion US Dollar economy and one of the largest economies in the world by 2050 with a projected GDP based on Purchasing Power Parity at US$1.615 Trillion. This is according to a study released by Price Waterhouse Coopers in February 2017.
Almost 2 decades of consistent high-economic growth, is making this a reality, with GDP growing at an average between 6% to 7%.
The Philippines likewise sets its eyes to position the country as Taiwan’s gateway to its New South Bound Policy target countries - strategic grouping of countries south of Taiwan that includes ASEAN, South Asian countries and Australia and New Zealand. Of these countries, the Philippines is its closest neighbor.
“A partnership and cooperation agenda between the Philippines and Taiwan to help with the resurgence of the garments and textiles industry in the Philippines can prove mutually advantageous and highly beneficial,” said MECO Chairman and Resident Representative Angelito T. Banayo.
Taiwan’s textile industry remains a bright spot in the global market, given its strengths in technology, production and innovation. Taiwan has carved out a niche for itself in functional textiles, functional apparel, home textiles and textiles for industrial applications. This is widely due to Taiwan’s investments in R&D, leadership in manufacturing capabilities and cross-industry collaboration, which enabled Taiwan to develop its highly-integrated supply chain. Today, Taiwan accounts for 70% of the world’s production of functional fabrics, and is ranked the world’s sixth largest textile exporter.
The Philippines on the other hand, enjoys a sustainable and strong domestic market buoyed by its 104-million population and consistent high-growth economy. The country’s labor force is among the youngest in the world, with a median-age of 24, highly-trainable and english speaking. Every year, the Philippines produces more than 600,000 university and tertiary-level graduates.
These, coupled with a successful historical proof of concept that the country can be globally competitive in the global garments and textiles industry, lays the ground work for DTI’s focus to re-develop the industry. Under the DTI’s Manufacturing Resurgence Program, it is likewise formulating a Garments and Textile Industry Roadmap to chart how the country will position and grow its textile and garments industry.
Manila Economic and Cultural Office (MECO), the Philippine representative office in Taipei, through its commercial affairs section, the Philippine Trade and Investment Center, sees a lot of potential in possible partnerships between Taiwanese and Philippine firms to take advantage of the market opportunities, given what both sides have to offer.
Last April 26, 2019, MECO organized a high-level Philippine Investment Forum at the Grand Hyatt Hotel in Taipei, that was widely attended by some 400 Chairmen, CEOs and top Executives of Taiwanese companies looking at the prospect of investing in the Philippines, given the current global trade situation and conflicts between major economic players.
In 2018, MECO organized a business delegation composed of representatives from Philippine companies in the Philippine garments and textiles and allied industries, to undergo a week-long training for non-woven fabrics manufacturing at the Taiwan Textile Research Institute. “This year, we are working with the Taiwan Textile Federation, through its Director for Market Development, Ms. Melissa Wang, to possibly organize a substantial Philippine business delegation to Taiwan’s flagship textile industry event called the 2019 Taipei Innovative Textile Application Show (TITAS).
“We see Taiwan as a source for strategic cooperation, technology collaboration and joint venture partnerships to move our Textile Industry agenda forward, in a win-win scenario, given what both sides have to offer. Next year, we also want to organize a Taiwanese business delegation to visit the Philippines to explore potentials of partnership in the sector,” said Trade Representative and Director of Commercial Affairs, Mr. Michael Alfred Ignacio of MECO’s Philippine Trade and Investment Center.
In addition to the planned exchange of business missions, MECO and the Taiwan Textile Association also plan to hold a series of seminars that will promote Philippines-Taiwan partnerships in the textile and garments industry.
originally published in Linkedin
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The Philippine Trade & Investment Center in Taipei is the Commercial Affairs Section of the Manila Economic and Cultural Office and the representative office of the Philippine Department of Trade & Industry in Taiwan