Citi sees continued growth opportunities in Asia

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Global fund managers turn to the region in the face of volatility and uncertainty

Citi remains bullish about the growth prospects in Asia, as global investors turn to the region in the face of volatility in Europe and North America and general uncertainty in the markets. 

Citi shared key investment trends and macroeconomic views during the Citi Investor Conference 2018 at the Citi Plaza building in Taguig.  

“Global fund managers are looking carefully at Asia, and China is a big part of that,” said Julia Raiskin, head of Investor Sales, Asia Pacific, at Citi. “Interest in the region is partly due to the inclusion of 200 large cap Chinese stocks in the MSCI, as well as the opening of the China Bond Connect.”

(L-R) Citi Investor Sales Asia Pacific head Julia Raiskin, Citi Philippines Country Treasurer and Global Markets and Securities Services head Paul Favila and Citi Asia Pacific Economic and Market Analysis head Johanna Chua

According to Raiskin, global fund managers are investing in equities and fixed income as top choices, with local currency bonds becoming increasingly attractive. “Investors are looking into more liquid markets – Hong Kong, Australia and, gradually, ASEAN,” she said. “Intra-Asia flows are also increasing with key corridors flowing from China, Japan and Korea to ASEAN.”

Citi notes that intra-Asia trade corridors have the potential to pick up slack from China and U.S. supply chains that may be threatened. 

“This region represents a much bigger opportunity as it is currently under-penetrated,” said Johanna Chua, head of Asia Pacific Economic Analysis at“Citi. Industries are well developed, but the long-term savings industry and asset management is not. So we’re seeing bigger allocations towards Asia from fund managers.” 

Philippine equities are underweight in Citi’s global equity allocation due to broad-based, cyclical upswings and the performance of other economies, explained Chua. But recent data has been good, given increased government spending and the peso stabilizing. “There’s a lot of traction growth,” Chua said. “The growth story is there.”

To spur further growth, Citi says the key is more foreign direct investments. “We need more FDI. The Philippines is still conservative with regards to foreign financing,” Chua said.

Infrastructure is seen as a key growth driver, especially the government’s ongoing ‘Build, Build, Build’ program. Additional growth drivers include services exports such as tourism, manufacturing with preferential tax treatments, and agricultural development and energy.

“As the contracts of the IPPs (Independent Power Producers) expire in 2020, power and energy will potentially be huge growth drivers for the Philippine economy,” said Paul A. Favila, head of Markets and Securities Services. 

Overall, Citi explained that last year was a good year for everybody and moving forward, 2018 is progressing well. “There are a lot of good things going for the Philippines,” said Chua. “It’s one of the only economies without any fuel subsidies and domestic demand story in the Philippines has traction, especially on the investment side.”

Citi’s GDP growth projection for the Philippine economy is 6.9% in 2018.

Home Credit PH welcomes three millionth customer

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One million new customers added in last 7 months as HCPH continues its rapid growth in PH

Home Credit, the Prague-based consumer finance company that has captured the attention of mallgoers and gadget lovers alike with its affordable in-store loans, has a very good reason to celebrate after it recently signed its three millionth customer.

(L-R: HCPH Sales Associate Mayeth Valencia, HCPH CEO Annica Witschard, 3 millionth customer Virginia Dela Torre and husband Almer, HCPH Chief Marketing and Product Officer Franchette Chingcuanco-Cardona)

Lucky winner Virginia and her husband Almer were in the process of applying for an in-store loan for a flat screen TV when HCPH surprised them on the spot. Home Credit Philippines’ Chief Executive Officer Annica Witschard and Chief Marketing and Product Officer Franchette Cardona were personally there to reveal the surprise and congratulate the “winning” customers who got 5,000php worth of GCs and the perk of having the rest of their loan waived. 

HCPH has come a long way since its establishment in Manila in 2013. From starting with less than 30,000 customers in its first year, the company quickly grew in the next few years, hitting the one million customer mark in 2017 before finishing the year with two million customers. A few more months later, HCPH’s customer base now stands at three million.

“We credit our success to the thriving market here in the Philippines. There is a strong demand for financially-inclusive products, and we are more than happy to cater to this demand by offering loans even to first-time borrowers and those without formal accounts,” Annica shared when asked about the company’s growth.

According to the latest data from Bangko Sentral ng Pilipinas, 77 percent of adults have no formal accounts such as savings accounts with banks. HCPH taps this group of consumers by making applying for an in-store loan easy even if they have no credit history. The customer simply needs to approach a Home Credit Sales Associate, provide two (2) IDs, and wait for ten minutes to process their application.

In addition, the company has also been rapidly expanding in terms of stores and the range of products it finances. It now has more than 4,000 stores and has a presence in more than 50 provinces and Metro Manila. In terms of product portfolio, Home Credit Philippines has also been actively expanding its lineup. In addition to mobile devices and gadgets, its roster also includes home appliances, hardware tools, e-bikes, musical instruments, and sporting goods.

When asked about their reaction for being named the three millionth first-time customers, Almer shared his happiness by saying, “Napaka-ganda ng Home Credit dahil napapaluwagan nila yung mga tao na hindi usually na-aafford na bumili ng ganitong mga bagay.” Virginia added, “Napakadali ng proseso. Biyaya talaga ito.” [Home Credit has a good program because it helps people who can’t usually afford to buy these things. The process is very easy. This is really a blessing.]

Besides in-store loans, the company also offers cash loans which, according to Annika, are used by some of the customers to start small businesses so they can make a better living for their families. Others use their cash loans to pay for other needs like school tuitions or finance house renovations.

“I am optimistic that there are more opportunities for growth for us. Home Credit Group has more than twenty years of global experience and we plan to continue applying this in the Philippines together with our own learnings from operating in the country,” she added.

When asked about future plans, she expressed that Home Credit Philippines’ progress proves that there is still so much room for growth here. She closes, “This is just the latest step in our journey; there are many more milestones up ahead,” she said.

Local Bread Baking Competition “Tinapay Natin” Bags Two New Awards From Quill And Anvil

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Max’s Corner Bakery (MCB) in partnership with Pilmico Foods Corporation won new recognitions from two of the most prestigious communications-focused award giving bodies for its Tinapay Natin Pinoy Bread Baking Competition.

Tinapay Natin is an annual bread baking competition that champions local bread culture by showcasing the innovation and creativity of small-scale bakers. The campaign from Max’s Corner Bakery and Pilmico received the coveted Gold Anvil Award from the Public Relations Society of the Philippines (PRSP) under the category PR Programs Directed at Specific Stakeholders for a campaign with focused strategy and communications directed towards its target consumers and communities.

From L-R: Representatives from SOHO Square Philippines, Charlene Sapina - Corporate Communications, Digital Solutions, and Sustainability Head for Max’s Group Inc. and Pamela Liwag - Brand & Quality Manager for Pilmico Foods Corp. receive the Gold Anvil Award from PRSP Executives at the 53rd Anvil Awards

Likewise, in the most recent Quill Awards, MCB’s Tinapay Natin received an Award of Merit for Communication Management under Customer Relations, which is given to outstanding programs aimed at educating, engaging or connecting the organization or its employees to the consumer.

Tinapay Natin started in 2016 as a collaboration between MCB and food and agribusiness firm Pilmico Foods Corporation. The program was founded to inspire small-scale, promising bakers to pursue their goals and highlight Filipinos as guardians of local food culture and heritage.

Over 3,000 student and non-professional bakers participated in Tinapay Natin’s 2017 run and were judged based on their technical expertise, originality and their delicious rendition of different Pinoy bread classics. Winners received P30,000 in cash and had their creations sold in Max’s Corner Bakeries nationwide. With the campaign’s unprecedented success, Max’s Corner Bakery saw a 56% growth in bread category and a 10.9% overall increase in year-end sales in 2017.

Ariel P. Fermin, Group COO for Max’s Group Inc., said that the awards signify that Max’s Corner Bakery is taking the right path towards strengthening Filipino bread culture and utilizing the right platforms to connect and inspire more people.

“We’ve always believed that Filipino history and culture is greatly represented and shaped by the food that we create. Baking is one avenue that Max’s Group sees as a means to preserve our heritage, and MCB’s Tinapay Natin is one way to promote this,” Fermin said. 

“Our partnership with Pilmico Foods Corporation, which also started their own campaign called “Mahalin Pagkaing Atin”, enabled this advocacy and spread our message even further.” 

In line with Max’s Group Inc.’s commitment to building loved brands, Max’s Corner Bakery’s award-winning campaign brings the bakers’ hard work and unique stories to the fore, with the hopes of creating a renewed sense of pride and appreciation for local food.

Win tickets to see Chance The Rapper in Manila with Globe GoSURF!

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FEU taps WEnergy Global to power group of schools

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In its pursuit to creating sustainable academic institutions, Far Eastern University (FEU) partners with WEnergy Global, a leading provider of solar energy. The collaboration will equip FEU’s campuses with cost-effective and greener source of power.

The project commences at one of FEU’s affiliate schools, Roosevelt College Inc, (RCI). The solar panels will serve 25% to 30% of the total electrical consumption of the campus in Rodriguez, Rizal. After these installations, the next set of major projects will be in FEU Silang in Cavite.

Standing (left to right): RCI Business Unit Head Tereas Angeles, RCI Vice President for Academic Affairs Gillian Joyce Virata, RCI Finance Manager Analiza Ventura,  RCI Vice President for Facilities and Technical Services Engr. Edward Kilakiga, and

Former DENR Secretary and Advisor of WEnergy Power Pilipinas, Inc. Elisea Bebet Gozun

Seated (left to Right): FEU Treasurer Rosanna Salcedo, WEnergy Power Pilipinas, Inc. President Quintin Pastrana,

FEU Chief Finance Officer Juan Miguel Montinola, and WEnergy Power Pilipinas, Inc. Antonio Gozun

“Investing in better solutions for energy conservation and efficient power utilization is not just a conscious effort to fight climate change, but also our contribution to the advancement in Philippine education. We aim to offer our students and community with sustainable structures that will withstand this century and beyond,” explains FEU Chairman Aurelio Montinola.

The partnership reflects the university and company’s shared passion for excellence and innovation.

“It gives us hope to have a private university taking the lead for green growth. There is nothing like sustainability where it counts the most: the place where we educate our nation's best and brightest,” says Quintin Jose Pastrana, President of WEnergy Power Pilipinas Inc.

Embracing advance Solar PV Energy in FEU is also in line with the university’s commitment to providing quality, future-ready education. It continues to find ways to utilize technology in its campuses, from the state-of-the-art facilities to its outcomes-based curriculum.