Vol4no35

Page 1

Business Views that Matter

Business Silver Buying

Exchange Rates

Gold Buying (troy oz.)

US$ 19.65 US$ 1291.55

As of April 25, 2014

Peso-Dollar ................................................................................................................................................................................................................................ Exchange Rate

Php 44.689

Repo Rate

5.50%

Reverse Repo Rate

3.50%

Inflation Rate (Mar‘ 14) 3.9%

91-Day T-Bill Rate

1.440%

................................................................................................................................................................................................................................

UNITED STATES, Dollar 44.689000 JAPAN, Yen 0.436900 UNITED KINGDOM, Pound 75.086500 HONGKONG, Dollar 5.764900 SWITZERLAND, Franc 50.673500 CANADA, Dollar 40.552600 SINGAPORE, Dollar 35.546400 AUSTRALIA, Dollar 41.726400 BAHRAIN, Dinar 118.538500 SAUDI ARABIA, Rial 11.916100 BRUNEI, Dollar 35.405600 INDONESIA, Rupiah 0.003900 THAILAND, Baht 1.381800 UAE, Dirham 12.166900 EUROPEAN MU, Euro 61.813800 CHINA, Yuan 7.151500 MALAYSIA, Ringgit 13.691500 KOREA, Won 0.043100 Source: BSP

As of April 25, 2014

The poor as profit center COMPANIES in Asia are discovering that helping the poor can be profitable. T hese companies, which are engaged in what is called “inclusive business,” are commercially profitable operations whose core business model is to prov ide large-scale innovative solutions to the problems of people who live on less than US$3 a day - or about 60% of Asia’s population. T his g roup of people, sometimes called the “base of the py ramid,” is neglected by many companies as customers. T hey are often only helped by companies through corporate charit y or other prog rams. “Inclusive business differs from corporate social responsibility and social enterprise because of its business scale, growth potential, and focus on systemic changes for poor people,” said Armin Bauer, a Principal Economist with the Manila-based Asian Development Bank (ADB). Inclusive business is also distinguished from impact investments in that it places the impact on poor and vulnerable people and de-emphasizes impact on the environment or good governance, he said. Inclusive business relies on profit-making as an incentive to improve the well-being of low-income and vulnerable populations.

Manila Water: A business model The Manila Water Company, which provides water utility services to about seven million people in the eastern part of Manila, is an example of this business model. The company took over as the public water provider for the eastern part of Manila in 1999. Rather than focusing on wealthy or middle class neighborhoods, the company prioritized serving slum areas, in which about one in four people had access to clean, piped water. The company, part of listed conglomerate Metro Pacific Investments Corp., connected about a million people, mostly the poor in urban slum areas, with water and made significant profits. “The business plan of Manila Water was to start with providing service to poor areas, not just do it as an add-on later,” said Mr. Bauer. “They upgraded service to the wealthy areas after they made substantial profits serving the poor fi rst.” ADB and its partners are supporting such inclusive business models through a variety of means. This includes a US$3.6 million grant that will help companies throughout Asia become better at inclusive business, or assisting the poor while making a profit. The grant will help ADB improve its expertise at making inclusive business deals with private sector companies, and

also help ADB member-countries develop policies that promote businesses that directly benefit the poor. This includes, for example, linking inclusive business startups to existing government resources, such as small business loans. Other assistance includes supporting government job creation programs that benefit the poor, such as slum upgrading programs and climate-proofi ng poor neighborhoods. Among the potential projects to receive support this year are a cacao project and seafarers scholarships in the Philippines; spice production in Cambodia and India; a water project in China; a drip irrigation program in India; and rural bank loan projects in Pakistan and Tajikistan. Prior to this most recent grant, ADB conducted market studies in countries throughout Asia to better understand the potential for inclusive business in the region. The studies looked at how many inclusive business companies are already operating in the region, how many fi nancial institutions support inclusive business, the problems the companies face and possible solutions, as well as opportunities to start new inclusive businesses. ADB’s investments in inclusive business companies have steadily increased in recent years. Six out of the 22 approved private sector projects in 2013 were considered inclusive business. This was up from 5% from the period between 2000 and 2012.

National Food Fair Part 2 in December 2014 THE Department of Trade and Industry (DTI) is set to organize two editions of the Sikat Pinoy National Food Fair (NFF) this year. The fi rst one just fi nished last March 26 to 30 while the second edition is on December 3 to 7, in time for the Christmas season. DTI sees a big potential in the food sector for generating employment and developing various backward and forward linkages aside from attracting wholesale and retail buyers. “Trade fairs have been and by far, DTI’s most effective promotions strategy especially for food products. It must be noted that 50% of MSMEs belongs to the food and beverage sector. In addition, the food sector has tremendous potential to generate employment. So the DTI Sikat Pinoy National Food Fair allows us to focus on the sector where we have a competitive advantage,” DTI Secretary Gregory Domingo said during the opening ceremony on March 26. In its March event, DTI, through the

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APRIL 28-MAY 4, 2014

OpinYon

Bureau of Domestic Trade (BDT), in cooperation with DTI Regional and Provincial Offices and the Bureau of Fisheries and Aquatic Resources (BFAR), has showcased three pavilions, namely, pili nuts, seafood and coffee. With the tagline “Piling-piling Pagkaing Pilipino”, it featured specialty foods and beverages from all over the country, including such products as fruit wines and liqueurs, herbal teas and health supplements, spices and condiments, snacks and pastries, and a Filipino kitchen to prepare mouthwatering delicacies. During the opening ceremony of the fair, BDT Director Rhodora Leaño noted that the total number of

exhibitors already exceeded their target, from 220 to a number close to 240 exhibitors. With its two editions this year, DTI aims to showcase more of the best of the country’s food products and to provide more business and employment opportunities to SMEs. Another highlight of the event was the signing of Memorandum of Agreement (MOA) between DTI, represented by Regional Operations and Development Group Undersecretary Zenaida Maglaya and the SM Malls, represented by its Executive Vice President Ricky Lim for the establishment of DTI Business Service Centers in all SM Malls nationwide.

The DTI Business Service Centers will initially cover 25 SM Malls in Metro Manila as well as SM Malls in Bacoor and Dasmariñas in Cavite, Santa Rosa and Calamba in laguna, Marilao in Bulacan, and Masinag in Antipolo. The event also featured Awareness Seminars on online marketing, licensing of food establishments or food business operators, guidelines for registration of processed and cooked foods, and duties of MSMEs as responsible taxpayers. Cooking demonstrations and a cooking contest were staged by Cook Magazine during the trade fair. For more information on the fair, you may contact the DTI through the Bureau of Domestic Trade (BDT) at 751.3223, or email at bdt@dti.gov.ph. The BDT is at the ground floor of the Trade and Industry Building, 361 Senator Gil Puyat Avenue in Makati City. You may also visit the fair’s website at www.sikatpinoyfairs.com, or “like” its Facebook page at www.facebook.com/SikatPinoyFairs.

WE TAKE A STAND

4/25/2014 9:07:34 PM


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