PH an outlier in AsPac

PHL an outlier in slowing Asia-Pacific M&A  market

Arra B. Francia
BusinessWorld
04 July 2019

THE PHILIPPINES was the fastest-growing market in the Asia- Pacific (APAC) region ex-Japan in terms of mergers and acquisitions (M&A) last semester, driven by the consolidation of one of the country’s largest cement players.

In its Global & Regional M&A Report for the first half of 2019, media firm Mergermarket revealed that the value of M&A deals in the country soared by 398.2% or $2.2 billion during the period.

This was primarily driven by conglomerate San Miguel Corp. (SMC)’s acquisition of an 85.7% stake in Holcim Philippines, Inc. from LafargeHolcim Ltd.

“The surge in the Philippines was largely driven by the flagship ‘Build, Build, Build’ campaign of President Rodrigo Duterte, which is spurring consolidation among cement players,” Mergermarket said in its report.

Holcim Philippines disclosed in May that SMC has agreed to acquire 85.7% of the firm for $2.15 billion, making it the biggest M&A deal in the local cement industry. The sale of LafargeHolcim’s Philippine assets is part of its rationalization program to exit from the “hyper competitive arena in Southeast Asia.”

The Philippines defied the slowdown seen in the region as well as in individual markets. Mergermarket noted that dealmaking “slowed down to levels unseen since 2013,” attributing the decline to the escalating trade war between the United States and China.

APAC ex-Japan tallied 1,525 deals last semester worth $241 billion, resulting in a drop in global market share to 13.4% from 18.6% in the same period last year.

China and Hong Kong accounted for more than half of the region’s total deal value, although deals from the former dropped by 44.7% year on year.

Deals in Hong Kong meanwhile dipped by 11.1%.

India followed as the largest M&A market, despite also posting a 52.8% decrease to $33.5 billion.

Southeast Asia showed a more favorable performance in the same period, with Singapore increasing by 154% to $17.1 billion for the period. Indonesia picked up by 88.6% to $6.6 billion, while Malaysia jumped by 16.4% to $3.7 billion.

In terms of sector, consumer-related transactions booked a 7.6% increase to $23.2 billion from 144 deals. The technology sector dropped by 66% to $22.9 billion, “as the tech war between the US and China is threatening to disrupt the supply chain and create a digital iron curtain between countries using US technologies and those who adopt Chinese ones.”

Meanwhile, Mergermarket also said that private equity (PE) buyouts appear “bleak and is expected to worsen in the near future.” PE buyouts amounted to $28.8 billion in the first half, 57% down from last year’s $67.1 billion. PE exits were also weak at $28.25 billion, 62% lower than last year’s $73.4 billion. — Arra B. Francia

PH back in competition

Philippines’ competitiveness rebounds in 2019 — IMD

Ian Nicolas Cigaral
Philippine Star
29 May 2019

MANILA, Philippines — The Philippines’ competitiveness improved in 2019 on the back of rosy economic performance last year and higher labor force, according to a research group of Switzerland-based business school International Institute for Management Development.

This Dec. 20, 2018 photo shows workers cleaning a panel of the building in UN Avenue, Manila. 

The Philippines’ competitiveness improved this year on the back of rosy economic performance 

last year and higher labor force, according to a research group of Switzerland-based business school International Institute for Management Development.The STAR/Krizjohn Rosales

The Philippines ranked 46th out of 63 economies tracked in IMD’s 2019 competitiveness report. This was higher than the Southeast Asian country’s previous ranking of 50th place in 2018.

Among 14 Asia-Pacific countries covered by the report, the Philippines placed at the 13th spot this year, unchanged from last year and just ahead of Mongolia and right behind India.

“This result was driven by a solid economic performance supported by sustained real [gross domestic product] growth (6.2% in 2018) and an increase in labour force and employment levels,” IMD said.

For its report, IMD said it evaluated “the extent to which a country fosters an environment where enterprises can achieve sustainable growth, generate jobs and, ultimately, increase welfare for its citizens.”

IMD looked into four factors — economic performance, infrastructure, government efficiency and business efficiency — in giving a final score for each country.

Broken down, the Philippines improved in the economic performance factor, placing 38th this year from 50th previously despite a decline in the international trade sub-factor. In terms of government efficiency, the Philippines climbed to 41th spot from 44th on the back of better institutional framework, business legislation and societal framework.

Under the business efficiency factor, the Philippines ranked 32nd from 38th mainly driven by better labor market and “attitudes and values.” Lastly, the Philippines jumped to 59th place from 60th in the infrastructure factor.

According to IMD, the Philippines needs to “speed up and sustain investments in physical infrastructure” and “sustain investor and consumer confidence.”

IMD then flagged the country’s “inadequate investment in human capital, poor digital competitiveness and future-readiness and persistent political risks.”

The rankings have been produced every year since 1989 by the IMD World Competitiveness Center.

This year, Singapore ranked as the world’s most competitive economy for the first time since 2010, knocking out the United States from the top spot to 3rd place amid higher fuel prices, weaker hi-tech exports and fluctuations in the value of the dollar.

Hong Kong held on to 2nd place, helped by a benign tax and business policy environment and access to business finance. Meanwhile, competitiveness across Europe struggled to gain ground this with most economies on the decline amid economic uncertainties.

“In a year of high uncertainty in global markets due to rapid changes in the international political landscape as well as trade relations, the quality of institutions seem to be the unifying element for increasing prosperity,” said IMD professor Arturo Bris.

“A strong institutional framework provides the stability for business to invest and innovate, ensuring a higher quality of life for citizens,” Bris added.

Asia's best scientists

Filipino scientists named as among Asia’s best 

Jan Milo Severo

Philippine Star

08 May 2019

MANILA, Philippines — Eight Filipino scientists have made it in this year’s Asian Scientist Magazine’s “Asia Scientist 100,” which aims to raise the profiles of outstanding scientists from the region. 

“Asia Scientist 100” is an annual listing of the Asia-Pacific region’s award-winning researchers, academicians, innovators and business leaders. 

Filipino scientists in Asian’s Scientist Magazine’s “Asia Scientist 100” 2019 list 

The eight Filipino scientists included in the list are Technology Development Institute’s Dr. Rosalinda C. Torres (Chemistry), Technology Development Institute’ Dr. Marissa A. Paglicawan (Material Science), University of the Philippines (UP) Los Baños’ Artemio Salazar (Agriculture), UP Manila’s Rody Sy (Biomedical Science), UP Diliman’s Gay Jane Perez (Environmental Sciences and Geology), UP Diliman’s Charissa Marcaida Ferrera (Life Sciences), De La Salle University’s Elmer Dadios (Engineering) and University of Santo Tomas’ Ricardo Balog (Engineering).

According to Asian Scientist Magazine, the AS100 list highlights research excellence and seeks to raise the profile of early career and veteran scientists in Asia who have made significant impact on their respective scientific disciplines.

From material scientists to molecular biologists and particle physicists, the AS100 (2019 edition) aims to celebrate the achievements and diversity of the research scene in the region, the magazine explained.

“We hope that with our yearly publication of the ‘Asian Scientist 100,’ outstanding researchers from Asia will be recognized for their fervent passion to further scientific knowledge and impact people’s lives,” said Dr. Juliana Chan, the magazine’s editor-in-chief.

  

PH: Potentially Asia's fastest growing economy

Philippines has 'potential' to become Asia's fastest-growing economy: ADB

Cathy Yang

ABS-CBN News

02 May 2019 

NADI, Fiji -- The Philippines has the "potential" to become the fastest-growing economy in Asia, propelled by an unprecedented infrastructure overhaul, tax reform and a young workforce, the Asian Development Bank said Thursday.

A recent credit rating upgrade from S&P Global is also an indication of the "fundamental strength" of the Philippine economy, which has maintained growth at above 6 percent, said ADB Chief Economist Yasuyuki Sawada.

The Philippines' GDP growth has been among Asia's fastest, racing China and Vietnam. Official first quarter GDP numbers are due out on May 9, the same day as the Bangko Sentral ng Pilipinas' policy-setting meeting.

"It's quite possible for the Philippines to be the fastest-growing economy in Asia," Sawada told ANC. Debt is "well under control" and over-all fundamentals are "quite strong," he said.

The Philippines' work pool is also English-proficient and among the youngest in the region, with an average age of 28. Sawada said this would serve the needs of technology and business process outsourcing companies.

TRADE WAR RISK

The trade war between the US and China poses the "highest risk" to economic growth in Asia.

Should growth in China slow down because of the trade dispute, it could adversely impact the region indirectly, Sawada said on the sidelines of the ADB Annual Meeting here.

The same slowdown, however, could provide Asian economies an opportunity to offer themselves as an alternative to China, he said.

"The overall impact to Asian economies is rather moderate and strictly speaking, slightly positive," he said.

The Asia-Pacific region is the "global engine" for growth, contributing 60 percent to the world's economic expansion, he said.

ADB Chief Economist Yasuyuki Sawada speaks to ANC's Cathy Yang on the sidelines of the Asian Development Bank's annual meeting in Nadi, Fiji. ABS-CBN News

DISASTER RESILIENCE

Disaster-prone countries like the Philippines should consider resilience when building new infrastructure.

A recent earthquake in Central Luzon killed over a dozen people and damaged Clark Airport, highlighting the country's location in the Pacific "Ring of Fire." The Philippines is also battered by an average of 20 typhoons per year.

"Building back better is a concept, after the disaster, putting back society and the economy in a better situation than the status quo prior to the disaster," he said.

"I think this shift in focus is quite an important element of building back better," he said.\

In a statement in Manila, Presidential Spokesman Salvador Panelo said Malacanang was "pleased" with the S&P Global upgrade.

"The economic team of the President has done a splendid job in putting the economic house in order and spearheading bold economic reforms, in cooperation with Congress, in bolstering the domestic economy, which is projected to become the world's top 25 economy," he said.

Filipina scientist Is Nuclear Science Director

International nuclear science group hails Filipina scientist as new director


By Jan Carlo Anolin
21 February 2019

The International Atomic Energy Agency (IAEA) has recently appointed a Filipina scientist to be one of its new directors in Vienna, Austria, the Department of Foreign Affairs (DFA) said.

Dr. Jane Gerardo-Abaya officially assumed her new position on January 1, 2019 as IAEA’s Department of Technical Cooperation Asia and the Pacific Division Director.

Philippines Ambassador to Austria Maria Cleofe R. Natividad (second from the left) congratulates new IAEA Division Director Dr. Jane Gerardo-Abaya (second from the right). They are joined by Consul General Deena Joy Amatong (far left) and Vice Consul Allen Carillo (far right). (Vienna PM photo / DEPARTMENT OF FOREIGN AFFAIRS / MANILA BULLETIN)

Dr. Abaya is an Austria-based scientist who has worked for various capacities of IAEA since 1994.

The University of the Philippines alumna contributed her works on isotope hydrology and water and geothermal energy resources to the state university’s National Institute of Geological Sciences.

Dr. Abaya finished her bachelor’s and master’s degree in Geology in 1981 and 1988, respectively.

She completed her doctorate in Applied Geology and Geothermal in 2004 at the Universitat Fur Bodenklultur in Vienna, according to DOST’s profile.

Dr. Abaya became a recipient of “Balik Scientist Award” and had a research grant from the Department of Science and Technology in 2008.

In 2017, she received a “Superior Achievement Award” from IAEA Director General Yukiya Amano while former IAEA Director General Mohamed ElBaradei granted her a “Distinguished Service Award” in 2008.

The new IAEA Director paid a courtesy call with Ambassador to Austria Maria Cleofe R. Natividad in the Philippine Permanent Mission in Vienna’s chancery last January 18.

According to DFA, Natividad said Dr. Abaya’s appointment is a “remarkable achievement in the Philippines’ efforts towards increasing women’s representation at the higher echelons of the IAEA.”

Natividad is confident that Dr. Abaya will fulfill her new role as director given her “exemplary qualifications and extensive experience.”

IAEA is the world’s central intergovernmental forum for scientific and technical cooperation in nuclear science, according to its official website.

The agency works for the safe, secure, and peaceful uses of nuclear science and contributes it to international peace and security and the United Nations’ Sustainable Development Goals.

PH's Asia-Pacific Top Universities

UP, DLSU among top universities in Asia Pacific 

CNN Philippines| 21February 2019

Metro Manila —  Two Philippine universities were included among the top educational institutions in the Asia-Pacific region, according to London-based data provider Times Higher Education (THE).

Results published on Wednesday showed that the University of the Philippines (UP) and the De La Salle University (DLSU) were in the top 300 schools of the region.

UP was at 101st-110th bracket, an improvement from its 2018 ranking of 151-160.

DLSU joined the list at the 201st-250th bracket. The Taft-based institution was unranked last year.

China's Tsinghua University rose to the top spot from its second place in 2018. It displaced the National University of Singapore which dropped to No. 2.

The University of Melbourne came in third.

The Hong Kong University of Science and Technology and the University of Hong Kong were in fourth and fifth spots.

Japan listed the most number of schools in the rankings, with 103 of its universities featured.

The Asia-Pacific University Rankings analyzed universities across East Asia, Southeast Asia, and Oceania. The featured schools represented 13 countries.

UP and DLSU were also the only Philippine universities in the Emerging Economies for 2019 of the same data provider.

PH is Regional leader in Antitrust laws

Philippines Steps Up Regional Edge In Antitrust Law Enforcement

By Marvie Chorawan-Basilan

Feb 21, 2019 

A view of nickel ore stockpiles at a port in Sta Cruz Zambales in northern Philippines February 8, 2017. (Photo: REUTERS/Erik De Castro/File Photo)

The Philippines is gradually transforming into a regional leader in the enforcement of antitrust laws as the Southeast Asian country jumped to 5^th place in 2018's Asia-Pacific policy records.

According to local newspaper The Philippine Star, competition news and analysis firm Policy and Regulatory Report (PaRR) revealed in its 2019 "Global Trends Monitor" report that the Philippines stepped up three places higher in the top 10 Asia-Pacific list of economies that allow for fair competition in trade and business.

PaRR's report noted that the Philippine Competition Commission (PCC) enhanced its authority, thus strengthening the monitoring activities of markets or trade practices that could be hampering growth in some business sectors in the country.

"The Philippine Competition Commission is strengthening its enforcement framework this year with the introduction of a leniency program and the addition of rules on forbearance and dawn raids to its arsenal of investigative tools," part of the report stated.

Last year, the Philippine antitrust agency recorded a total of 40 acquisition transactions and mergers, accounting for PHP438 billion. Of the M&A transactions recorded, 33 were given the approval to proceed with the projects.

In April, the agency released a draft of guidelines that seek to benefit joint ventures. The merger notification threshold for Philippine exchange was also raised to PHP5 billion.

This year, the PCC is looking to focus on chain logistics, petroleum refining, sugar and pesticides manufacturing, corn milling and trading, and other trading programs that seek to enhance fair exchange in the Philippines, the report added.

Another country that made a significant rise in the ranks is Indonesia. The report found that Indonesia has climbed to 6^th place, one level higher from its 7^th spot record in 2017. The top three economies in antitrust enforcement practices are China, Australia, and South Korea respectively.

AEC News Today reported that Indonesia appointed new competition commissioners as part of its efforts in enforcing antitrust policies. This move also echoed the ASEAN member nations' October move of establishing the Asean Competition Enforcers Network - a program that encourages Asean states to cooperate on competition cases.

Other Asian countries also joined the fight against unfair trade standards as Myanmar eased its foreign investment rules last year and Singapore approved amendments to its competition law.

For its part in the global reinvention of antitrust policies, Vietnam fined companies that engaged in anticompetitive conduct, including Grab. In addition, Thailand finally granted conditional clearance to Glow Energy to imply its willingness in the Asia-Pacific region's goals of providing the trade industry with justifiable practices that will benefit both giants, small, and medium-sized operations.

Film Festival Winner

Filipino film ‘Respeto’ wins in Germany, India

MANILA, Philippines — Independent film “Respeto” recently bagged back-to-back international awards.

Late last month, the film starring hip hop artist Abra was awarded the Jury Prize in the Youth Days category of the 2018 Exground Film Festival in Wiesbaden, Germany. It also received the Centenary Award as Best Debut Feature Film at the 2018 International Film Festival of India held in Goa.

Abra receives his first Urian Best Actor award (left) for "Respeto" (right)

These awards are a follow-up to the recognitions the film received early this year, including Best Film, Best Director and Audience Choice awards from the Cyprus Film Days International Festival 2018; Best Youth Feature at the Carrousel International du film de Rimouski 2018 in Quebec, Canada; and Best Supporting Actor for Dido de la Paz at the Asia Pacific Film Festival 2018.

Locally, the film has won as Best Feature Length Film, Best Supporting Actor for Dido de la Paz, Best Cinematography, Best Sound and Best Editing at the 2017 Cinemalaya Film Festival.

Likewise, the film bested all films at the 41st Gawad Urian with four awards, including Best Actor for Abra, Best Supporting Actor for Dido de la Paz, Best Editing for Lawrence Ang, and Best Sound for Corrine de San Jose.

The 2017 drama, about a poor aspiring rapper played by Abra, hopes to continue its winning streak when it joins other international film festivals next year, said its director, Alberto "Treb" Monteras II.
Monteras also directs the upcoming “Pedro Penduko” flick starring James Reid.