Jobs still available in Cebu

Saturday, May 2, 2009
By Nancy R. Cudis

DESPITE the global economic slowdown, companies in Cebu—even those located in economic zones—are still hiring.

Department of Labor and Employment (Dole) 7 Director Elias Cayanong said the cost efficient measures taken by the companies in the past few months may have helped them recover from the effects of the global financial crisis.

This doesn’t prove, though, that the economy in Central Visayas has improved, he added.

“These companies were (probably) able to make up with their streamlining and cost-cutting initiatives and, at the same time, got some orders. They were able to consolidate their operations and now, with enough savings and with inventory clearing up, they are now in hiring and production mode,” he said.

Camera manufacturer Pentax Cebu Philippines Corp., for instance, has been hiring 200 production workers since the start of the year.

More orders

Renato Bontol, Pentax Cebu assistant general manager for administration, said the company has to hire more workers to cope with increasing orders. He pointed out that the demand for Pentax products usually picks up in time for summer.

He said the Pentax Cebu also received some orders from its mother company in Japan, which implemented a work force reduction program through voluntary retirement.

Pentax Cebu is located at the Mactan Economic Zone 1, which hosts 109 export companies with a total employment of 43,198.

According to Philippine Economic Zone Authority (Peza) report on the effects of the global financial crisis on economic zone locators, 17 companies at MEZ 1 hired 167 employees and 14 more announced 152 job vacancies as of March 2009. These
jobs include sewers, fashion designers, accountants and managers.

The same report also stated that Fourlinks Inc. has relocated its facilities to MEZ 1 from China and is now hiring workers.

New locators

“Also, additional need for manpower is on its way for three new projects that have been approved by the Peza Board. (They are) the Norwegian Maritime, Kudo Support and Pasaporte,” the report stated.

Peza said other companies continue to hire more people. Among them are Korean-led Philippine BXT Corp., which owns Imperial Palace Waterpark Resort and Spa in Lapu-Lapu City; shipbuilder Tsuneishi Heavy Industries Inc. in Balamban, Cebu; and Japanese electronics manufacturer and exporter Cebu Mitsumi Inc. in Danao City.

Dole, however, received reports of workers being displaced. The highest was in February when it recorded about 2,300. Only 700 workers lost their jobs in March, though.

Although the agency’s April report is yet to be finalized, Cayanong said the retrenchment figure in Cebu had “tapered off” last month.

Cayanong called on private and public stakeholders to continue their multi-sectoral endeavors to provide more jobs for the people in Central Visayas.

Yesterday, he joined SM Prime Holdings vice president for marketing Marissa Fernan and Cebu City Acting Mayor Michael Rama at the opening of the Jobapalooza 2009 at SM City Cebu.

Separate jobs fair were simultaneously held at the Provincial Capitol and at the Cebu City Sports Center.

The three venues offered a total of 10,500 jobs by 52 overseas companies and more than 90 local businesses. Dole expected more than 11,000 job applicants in all three jobs fair.

At SM City Cebu alone, more than 50 companies—mostly engaged in business process outsourcing, electronics, garments and information technology—offered about 500 jobs.

Gregorio Deramos, 32, is among the hundreds of applicants who joined the long line to the SM Cebu Trade Hall, hoping for a steady-paying job that matches his skills.

A father of two children, Deramos has been operating his own taxi for a year. Before that, he worked as a waiter at a local restaurant for five years. He went to the job fair in search of a better-paying job in a local or overseas company.

“This is part of SM’s corporate social responsibility, being one of the biggest employers in the country with more than 100,000 direct hires in all its operations throughout the country,” said Fernan, adding that the company plans to host a bigger jobs and livelihood fair next year.

CPVDC ties projects to state of economy

By Ehda M. Dagooc Updated May 01, 2009 12:00 AM

CEBU, Philippines – Although Cebu still provides a promising outlook for Business Process Outsourcing (BPO) investments, premier cyberpark developer Cebu Property Ventures and Development Corporation (CPVDC) ties future projects on the progress of the global economy.

Publicly listed CPVDC, the developer of the 24-hectare Asiatown IT Park in Cebu, posted a total revenue of P349 million last year, which was six percent lower compared to 2007 revenues at P371 million.

The decline was, however, attributed to the limited availability of lots for sale.

CPVDC president Francis O. Monera said the company closely monitors the global economy as fragility will also affect the movement of the investors’ interest.

He said although Asiatown IT Park continues to receive inquiries for office spaces and investors’ intention to put up facilities at the cyberpark, the company’s appetite to build more buildings for lease and rental will largely depend on the economic progress globally.

“We are closely calibrating the market,” Monera said adding that the company has readied the masterplan of the five-hectare undeveloped property within the Park, and the two-hectare super-block that is located in the center of the property.

Part of the plan is to build a BPO enclave facility within the five-hectare remaining property however, no exact timetable is at hand. Monera said as the total lot area available at the IT Park is getting smaller, the company is also on constant lookout for attractive parcel to take advantage of the robust BPO sector.

In his report, during the CPVDC Stockholders Meeting held the other day at the Cebu City Marriott Hotel, Monera said that in 2008, the company continued to maintain a strong asset base, with total assets reaching P1.35 million. Cash and cash equivalents amounted to P435.8 million, increasing by 32 percent from the previous level.

“Despite the current global economic woes, the BPO industry is considered as one of the sunshine industries of the country. Although business outlook in general may not be as rosy as in previous years, investors are still bullish on the IT-related industries, particularly BPOs,” Monera reported.

He said being pioneer in the ICT industry, CPVDC is in an optimum position to remain strong “and even flourish despite the global crisis.”

Monera said the remaining undeveloped land within the cyberpark will be the company’s major source of growth in office leasing revenues as CPVDC turns its strategy towards building offices to cater to more IT and IT-enabled service locators while keeping ownership of the land for future value appreciation.

Its newest building called eBloc Tower, which was completed last year, is now getting considerable interest from the probable tenants market.

This 12-story office condominium is the maiden project of Asia I-Office Properties, as special purpose vehicle created with the partnership between CPVDC and Ayala Land Inc. (ALI) Corporate Business Group.

This mid-rise office condominium provides an additional 21,000 square meters of office leasable space and 1,700 square meters of retail space.

The eBloc Tower is envisioned to meet the needs of the occupants by providing them round-the-clock services and facilities suited to the needs of IT and IT enabled firms.

Avaya IP Office levels business playing field

By Rhia de Pablo Updated May 02, 2009 12:00 AM

CEBU, Philippines - Avaya Philippines county director Edgar T. Doctolero said that the new IP Office aims to provide a communications solution tailored for small and midsize businesses (SMBs) which can help them save costs, enhance customer service and increase productivity that is fundamental in surviving in these times of crisis.

“This product marks Avaya’s entry to the SME market. This is an answer to SME’s needs. Considering the crisis, enterprises would want to be on top of their game to improve their productivity and customer service efficiency and reduce their cost,” said Doctolero.

He said that last year, they launched a product that was forced fit for the SME market but it did not achieve the target they wanted as for penetrating this huge sector.

So with the new IP Office solution, Avaya now has a product that helps address the needs of the SME market and fits into their requirements.

Doctolero said that the IP Office provides the same benefit larger enterprises gain from the latest communications technologies.

It can help SMEs simplify access to information, streamline communications between its staff, partners and customers and allow employees to work even outside their workplace.

The solution has call reporting features which allows to store, collate and analyze customer data on their computer network and this can enable companies to better understand customer needs and staff to react faster to them.

“The product highlights the growing trend toward IP telephony adoption in the Philippines and other Southeast Asian markets as it becomes accessible to smaller businesses. While bigger companies have long jumped on the IP telephony bandwagon, smaller businesses were still lagging behind. With the IP Office we are changing all this to enable them to become much more competitive and pass on the benefits to their customers,” said Doctolero.

He said that with the tough times brought about by the economic crisis, businesses these days are looking at ways to address business imperatives that will allow them to be on top of their game.

“It is critical on this point that enterprises utilize tools to address business challenges. Through taking advantage of advanced IT solutions they can address business imperatives and improve their bottom-line,” said Doctolero.

He said that Cebu is strategic with the success of their IP Office solution because it’s a key market for Avaya.

“The success in Cebu for the IP solution would mean that we will be almost there in terms of achieving what we want to penetrate,” said Doctolero.

He also said that in their feat to tap the huge SME market in the country, they aim to get a fair share of the whole SME sphere.

So far, contract centers, financial services and service providers are among the biggest chunk of Avaya’s client base.

Avaya provides a unified communications, contact centers and related services directly and through its channel partners to a leading businesses and organizations around the world.

The company’s ability to support all types of trunk lines (analog, digital and SIP) and all manner of phones provide BPO companies with the flexibility of migrating from traditional systems to advanced IP systems at their own pace without the need for significant investment.

Balamban's tourism continues to improve

Updated May 03, 2009 12:00 AM

CEBU, Philippines – Tourism in the municipality of Balamban continues to boost despite the economic crisis experienced worldwide.

This is according to the lot owners in the town who continue to develop their properties as local and foreign visitors discover the town’s natural beauty that is commonly found in the mountain barangays.

Architect Randy Vios, one of the board members of the Gaas-Manunggal Group, which is currently developing the towns’ eco-tourism park stated that for the past three years, the number of tourists in their place have continually been increasing.

He cited that for the first quarter of this year alone, there has been a growth of 20 percent in visitors coming to the town.

Vios, who owns the Vios Nature camp, credited the increase to Balamban’s natural resources and cold temperature compared to resorts in the city.

Yearly, he added that most of foreign tourists are from America and Japan but the greater number comes from local tourists who are looking for a place outside the city.

According to him, there are about 85 lot owners in the place and 10 of them are developing their properties for the visitors.

He said that worries in terms of security are already addressed by their local government because barangay tanods are guiding the place round the clock.

Also, the presence of the Regional Training Center of the police in the area has also benefited both the town people and the visitors.

Mayor Alex Binghay assured that everybody will be safe. He said that since they are in the mountain barangay, worries are common but they make sure that it is safe not only for the visitors for all for the residents of Balamban.

Aside from security measures, the group is also making sure that despite developments being made, they are also helping preserve the natural resources found in the municipality.

In fact, one of the rules for the lot developers is that for every square meter of development, a tree should be planted. — AJ de la Torre/WAB (THE FREEMAN)

Solons balk at ‘Japan model’ in REIT bill

Written by Fernan Marasigan / Reporter

Wednesday, 15 April 2009 19:43

A “CORPORATE” form of the real estate investment trust (REIT) model, borrowed from Japan by proponents in the Philippine Stock Exchange (PSE), may yet prove to be the sticking point holding passage of the bill, once described by lawmakers as a crucial stimulus in a season of crisis. At hearings this week in the House of Representatives, several solons expressed opposition to the taxation scheme in the REIT bill as proposed by the PSE, saying it will be disadvantageous to the government. The hearing of the House on ways and means committee on the substitute bill to House Bills 148, 3566 and 4182 or an Act “Providing the Legal Framework for Real Estate Investment Trust,” became the venue for a minute scrutiny of the proposals. Legislators, led by Lakas Rep. Exequiel Javier of Antique, committee chairman, turned down the proposed taxation scheme adopted from a Japanese model because nothing will be left for the government. PSE president and chief executive officer Francis Lim told members of the committee that under the system, where there is a net income, the 90-percent distribution is deducted before the REIT is taxed at the REIT level. “Generally, it is taxable, for example, when it is distributed to individuals under our tax law . . . .The corporate form of REIT is the most successful in Japan,” said Lim. But Javier told Lim that if that is followed, nothing will be left for the government, as 90 percent of the dividends to be distributed will be deducted from the gross income. His view was supported by Liberal Party Rep. Liwayway Vinzons-Chato of Camarines Norte, committee vice chairman. “It will not just be the dividend that will be deducted because you’re talking gross income: You will deduct the 90 percent of the dividend plus allowable deductions. [There will be nothing left on which to base taxes.] I bet you, there won’t be any taxes left. The government may even end up advancing money; you [private business] might even get tax credits,” Chato told PSE officials. Laban ng Demokratikong Pilipino Rep. Juan Edgardo Angara of Aurora, principal author of the substitute bill, said under the proposed taxation system, the government is at the losing end. “At the level of the firm, the government will really lose, because the income tax of REIT will go down to almost nil.” But Angara quickly added, “I think the idea is to look at the big picture. At the level of the economy, the idea is to create some kind of a building room, especially in countries which are developing and which have inadequate infrastructure.” The REIT, he stressed, “will facilitate the creation of offices, of hospitals, of malls—these are things that generate economic activity. I think the PSE has commissioned a study to show that at the larger picture the government is a winner, although at the level of the firm—of the particular REIT company—the government is a loser.” Javier also questioned the proposal for the 30-percent minimum public ownership. By adopting this, the REIT will not be democratizing ownership, supposedly one of the salient features of the measure. The bill should provide that after five years, at least an additional 5 percent should go to public until it reaches more than 50 percent. “Otherwise, it will just be used as a tax shelter for wealthy families,” Javier said. Lim agreed and told Javier, “A staggered approach is acceptable to the PSE. I don’t have any objections to the staggered increase in the minimum ownership.” To this, Javier replied: “Of course, otherwise we will be back to square one, where at present most of these prime properties are owned by a few families. We will not be able to democratize the ownership of land in this country, so I think we should consider the increase of public ownership,” Javier said. At the hearing, Lim appealed to legislators to expedite the immediate passage of the substitute bill because the country has already been left behind the global industry. He cited Japan, Malaysia, Singapore and Hong Kong, which already have in place the REIT system. “The Philippines, unfortunately, does not have a share in this booming industry. The Philippines does not have any industry at the moment; in fact, some of our real- estate companies are now looking to list themselves in the Singapore exchange and other exchanges just to avail [themselves] of the REIT system. That is the reason the PSE is advocating for the REIT system,” Lim said. “In Japan, South Korea, Vietnam, Malaysia and Singapore the REIT system there is already in advanced stages. Even Pakistan and Indonesia are looking for a REIT system.We do not want to be left out in this global industry,” he added. Lim also told legislators that because of very few investment products in the country, a lot of Filipinos are engaging in investment scams. He cited an official estimate which shows that in 2007 there were about P70 billion worth of scams.