The push for functional cosmetics

By

-

October 19, 2024

(From left) CCIP's Rachel Manzano, Christine Reyes, FDA's DG Samuel Zacate, Maria Macabeo, Mara Astrid Ambata, DENR's Gilbert Maximo, and CCIP's Shirley Cayago

Government and industry leaders have gathered recently to tackle issues affecting the cosmetics sector.

The second annual cosmetics conference, COSMETICON 2024, organized by the Chamber of Cosmetics Industry of the Philippines (CCIP), tackled issues that would ensure the local industry is in step with the global focus on sustainability and digitalization.

This year’s theme, “Digitalization, Innovation, and Sustainability,” positioned the event as a beacon for micro, small, and medium enterprises seeking to thrive in an evolving market.

Dr. Samuel Zacate, director of the Food and Drug Administration (FDA) in his keynote address, urged the industry to develop and offer more functional cosmetics.

Zacate also noted the importance of the FDA’s F-Pop initiative, stressing the role of regulatory bodies in innovation and public safety.

Zacate said functional cosmetics not only enhance beauty but also provide added health benefits, making regulatory compliance more crucial than ever.

F-Pop aims to create new pathways for a more effective approach in the regulation of functional cosmetics. As part of the policymaking process for the F-Pop Initiative, FDA is conducting workshops and activities to benchmark its regulations for functional cosmetics with these reference regulatory agencies.

Through the F-Pop Initiative, the FDA hopes that more innovative cosmetic products become available to Filipino consumers, and that the local and international cosmetic industry are supported by a sound regulatory environment for globally-competitive cosmetics.

FDA officials Maria Lynette Macabeo and Maria Astri Ambata shared business compliance with detailed updated on promo permit regulations and post-marketing surveillance.

Christine Michelle Reyes, president of the CCIP, underscored the importance of innovation and regulatory compliance in her opening remarks. “COSMETICON 2024 is about pushing the boundaries of what’s possible in cosmetics while ensuring that our businesses remain compliant, sustainable, and innovative,” said Reyes.

Digitalization eases access to insurance

By

Irma Isip

-

October 19, 2024

0

As insurance penetration dips, innovative solutions are needed to make insurance more accessible and appealing to a broader population, according to regional insurtech Igloo.

In a statement, Igloo cited recent data which indicated a decline in coverage across the country.

In 2023, insurance penetration in the Philippines sank to 1.6 percent, lower than the 1.73 percent recorded in 2022.

“As the Philippines experiences a decline in insurance penetration, digitalization offers a clear solution to reverse this trend. By simplifying processes for intermediaries and customers alike, insurers can eliminate barriers to entry,” Igloo said in a report.

One innovative solution, Igloo said, is end-to-end digitalization.

Igloo for example leverages technology and partnerships to streamline operations across the entire insurance value chain—from insurance and intermediaries to consumers.

By digitalizing processes throughout the ecosystem, Igloo enables faster, more efficient services, seamlessly integrating insurance into everyday digital interactions such as e-commerce and travel bookings.

One key step is the creation of digital platforms for intermediaries which traditionally rely on manual processes from onboard customers to settling claims, which can be time-consuming and prone to errors.

“Digital tools allow intermediaries to streamline the entire process from customer onboarding to claim settlement. These tools help manage customer information, assess needs, and complete transactions faster and more accurately. As a result, intermediaries can focus more on building relationships with current and potential clients, rather than being burdened by administrative tasks,” Igloo said

Another innovation is embedded insurance.

As an insurtech platform, Igloo enables businesses to integrate insurance products into their platforms, facilitating seamless policy applications, purchase, and claims management. This reduces friction for both insurance providers and distributors, streamlining complex tasks such as underwriting, policy issuance, and claims processing.

Igloo partners with online platforms like Lazada and Shopee, as well as payment services like GCash in developing customized and embedded insurance products that integrate smoothly into digital experiences.

Igloo said telecom companies like Smart, consumer finance platforms such as Skyro and Salmon, and B2B MSME (micro, small and medium enterprises) enabler Growsari also collaborate with Igloo in the Philippines to expand access to insurance across different sectors. This enables customers to purchase insurance directly through these platforms.

PCC to update rules on expedited review process

By

Irma Isip

-

October 18, 2024

0

The Philippine Competition Commission (PCC) will streamline the review process of certain mergers and acquisitions to facilitate transactions that are less likely to pose competition concerns.

In a notice, PCC said it is updating the PCC Rules on Expedited Merger Review to ensure the efficient use of the PCC’s limited resources.

These will facilitate the review of qualified mergers and acquisitions that are unlikely to substantially prevent, restrict, or lessen competition in their relevant markets.

The revised rules will supersede those which have been issued in 2019.

Qualified for expedited review are transactions where there are no horizontal overlaps or vertical relationships between the parties; the merger is between foreign entities whose presence in the Philippines is through subsidiaries that act merely as business conduits; the merger will result in the acquiring entity acquiring sole control of an entity over which it has joint control and; joint ventures formed primarily for the development of real estate.

Under the draft rules, PCC requires the parties to file a regular notification even if the transaction is qualified for Expedited Review, in case the transaction merits a full review to evaluate possible competition concerns.

PCC said notifying parties must submit their Expedited Review Notification Forms within 30 days after the signing of definitive agreements relating to the merger.

The PCC is seeking comments on the draft posted on its website.

Accommodation sector needs to catch up: DOT

By

Irma Isip

-

October 17, 2024

0

Hotel owners and developers, which are among the largest investors in the tourism industry, need to catch up to the rising demand for accommodation to ensure sustainable growth of the sector.

In her speech at the launch of the Philippine Hotel Industry Strategic Action Plan (PHISAP) – co-developed by the Department of Tourism (DOT) and the Philippine Hotel Owners Association (PHOA) – in Mandaluyong City yesterday, DOT Secretary Christina Frasco said by 2028, room demand is estimated at over 456,000 room keys.

Current supply of accommodation establishments is at 18,818 equivalent to 335,592 rooms based on compiled data of the Accommodation Capacity Survey of 2023-2024. Investments stood at P66.87 billion based on the list of registered projects from the Board of Investments in a span of five years, 2019 to 2023.

“We have some catching up to do,” said Frasco, adding accommodation is one of two challenges that has been nagging the tourism industry for years, the other being access.

“Our global competitiveness is less than ideal,” Frasco said.

The Philippines lags behind its competitors in Asean in terms of availability of rooms as of 2021.

The region had 3.12 million rooms led by Indonesia with 788,000 rooms. Vietnam and Thailand each registered over 700,000 rooms.

In contrast, the Philippines only 212,373 rooms based on the hotels and similar establishments accredited by the Department of Tourism.

But Frasco expressed confidence that with the continuous investments, the Philippines is well on its way to meeting the demand for rooms by 2028.

Frasco acknowledged the contribution of the accommodations sector to the tourism industry and to the economy in general: 16.2 percent of the over P2 trillion direct gross value added in 2023 and over 23 percent of the 6.21 million employed in tourism.

Frasco said the accommodation sector contributed about half of the P508 billion tourism investment under the Marcos administration.

But the most tangible impact, she said, is the livelihood provided to the 1.45 million workers in hotels and similar facilities.

PHISAP represents a comprehensive roadmap designed to address the infrastructure needs of the hotel sector and ensure that Philippine hotels are competitive on the global stage, Frasco said.

The plan, which builds on the previous roadmap from 2016, will align the hotel industry with the DOT’s National Accommodation Standards, the star-rating system for accommodation establishments.

Key objectives of the PHISAP rollout include gathering industry feedback, fostering collaboration among stakeholders, and aligning efforts to enhance the Philippine tourism and accommodation sectors.

Arthur Lopez, PHOA president, in his speech said as hotel owners and developers are among the biggest investors in the tourism industry, it is imperative “for us to have a strategic plan that will guide us on where and what type of accommodation facilities to build. “

“From an investor’s perspective, we need to have a clearer picture of the destinations where market demand is projected to be strong. We also need to have a deeper understanding of the type of amenities and services that different travel segments are looking for so we can plan accordingly,” Lopez said.

Sept auto sales flat

By

Irma Isip

-

October 17, 2024

0

Vehicle sales reached 344,307 units in the first three quarters of the year, a 9.4 percent increase from 314,843 units in the same period in 2023.

A joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association showed September sales were almost flat to 39,542 units, rising 1 percent from August sales of 39,155 units. But from September 2023 sales of 38,628 units, last month’s sales were up 2.4 percent

Rommel Gutierrez, Campi president, attributed the increase to new stock arrivals and improved promotions from the brands.

According to Gutierrez, there were no new model releases last September, possibly due to the brands’ preparation for the upcoming Philippine International Motor Show to be held next week where new models will be launched.

Commercial vehicles continue to drive the industry performance at 253,542 units accounting for 74 percent of total sales. Passenger cars registered sales of 90,765 units equivalent to 26 percent share of total sales.

Toyota Motor Philippines Corp. continues to lead the market with 46.21 percent share and sales of 159,088 units, up 10 percent from last year.

This was followed by Mitsubishi Motors Philippines Corp. with sales of 66,028 units, representing 19.18 percent and an increase of 13.7 percent.

Ford Group Philippines was at third with sales of 21,438 units or 6.23 percent of the market but down 7 percent.

Nissan Philippines Inc. placed fourth, selling 20,322 units or 5.9 percent market share and up 1.4 percent.

Suzuki Philippines Inc. rounded up the top five with a share of 4.35 percent for sales of 14,990 units, up 11 percent.

Pinoy bread slowly disappearing?

By

Irma Isip

-

October 17, 2024

0

PRODUCTION of the Pinoy Pandesal and Pinoy Pandesal has significantly declined the past years due to rising costs, making it challenging to sustain the subsidies on the bread products.

While big bakers are still committed to continue producing these bread products as part of their commitment to the Department of Trade and Industry (DTI), production has gone down by 50 percent the last two years alone.

“We can only subsidize so much, but there is still supply in the market,” said Jon Chua, president of the Philippine Baking Industry Group.

Community bakeries have long stopped producing Pinoy Pandesal and Pinoy Tasty, according to Lucito Chavez, president of the Asosasyon ng Pilipinong Panadero.

“Unlike big bakers which have premium products to sell, we cannot afford to grant the subsidies to produce Pinoy Pandesal and Pinoy Tasty,” Chavez said.

Chua said Philbaking is yet to get feedback from the DTI on the group’s petition for a P5 increase on both products.

The last increase was made in February 2023 when bakers agreed to stagger the adjustments from the original petition of P3.

The Pinoy Tasty now costs P 40.50 per loaf while the cost of Pinoy Pandesal per pack is now P25 per pack of 10 reflecting an increase of P2 and P1.50, respectively.

Chavez said these current priceshave widened the gap between regular branded loaf bread and pandesal and of Pinoy Tasty and Pinoy Pandesal.

This has also sowed confusion to consumers who compare the prices of these products to those sold by small bakeries.

Global port operator eyes P25B investments in PH

By

Irma Isip

-

October 16, 2024

0

The Manila South Harbor operated by ATI, part of the global port network of Dubai-based DP World.

Global supply chains solution provider DP World is readying P25 billion investments in port operations in the Philippines, according to Trade Secretary Cristina Roque.

In a virtual briefing on Monday, Roque said another company from the United Arab Emirates (UAE), Mardas, is looking for up to 500 hectares of property for its investments in renewable energy (RE) worth at least P600 million.

Roque said DP World is looking at operating new ports in the country and introduce advanced technologies in port handling while expanding its existing partnership with Asian Terminals Inc. (ATI).

Roque said she will meet with officials of International Container Terminal Services Inc. (ICSTI) to discuss “if they want to expand their port presence with DP World.” In the Philippines, ICTSI operates Manila International Container Terminal.

DP World’s partnership with ATI involves the operations of the Manila South Harbor, the Batangas Port and the Tanza Barge Terminal.

“DP World is on expansion mode… They are looking for areas where they can expand their port business. They are willing to invest P25 billion maximum. They are looking for local partners and also be able to operate ports which have yet to open, not the existing ones,” Roque said.

For the existing terminals it has partnerships in the Philippines, Roque said, DP World is eyeing to enhance the operations by including commercial areas beside the ports to include retail stores.

Meanwhile, Roque said Masdar is set to sign this week a memorandum of understanding with the Department of Energy for its planned investment in solar, wind and battery systems in the Philippines.

She said she has endorsed the project to the Mindanao Development Authority as Masdar needs 50 to 500 hectares for the investments which the company wants to start as soon as possible.

Roque added Masdar has been in talks with possible local joint venture partners.

Developers back BCDA term extension

By

Irma Isip

-

October 16, 2024

0

Artist's render of the New Clark City affordable housing, one of the projects being undertaken by BCDA.

Real estate developers have expressed support to proposed bills amending Republic Act 7227 which will extend and expand the role of the Bases Conversion and Development Authority (BCDA).

BCDA in a statement yesterday said Filinvest Land Inc. (FLI), Ayala Corp., Megaworld Corp., and Hann Development Corp. (HDC), delivered their respective letters of support for House Bill 8505 and Senate Bill 2647.

BCDA said FLI believes the continued existence and the eventual expansion of BCDA will strengthen its ability to drive economic growth and develop key areas in the country.

FLI is the developer of the 288-hectare mixed-use development Filinvest New Clark City in Tarlac and the 201-hectare leisure estate Filinvest Mimosa+ in Pampanga.

“The renewal of BCDA’s corporate existence and expanded role under (the bill) will inspire trust and confidence from both local and foreign investors and boost the country’s economy. The extension of BCDA’s corporate existence not only ensures continued progress of the areas within its jurisdiction, but also allows the expansion of its industrial and economic footprint, attracting investors and fostering local economy,” BCDA quoted

Tristaneil Las Marias, FLI president and chief executive officer, as saying.

BCDA also quoted Ayala president and CEO Cezar Consing’s letter which said “we support the proposal to extend the corporate term of BCDA for another 50 years from 2042.”

BCDA said Ayala also supports the measure to convert a portion of BCDA’s economic zones to alienable and disposable lands as this will enable BCDA to “create more economic and social impact” through the sound conversion of former military bases into productive developments.

Ayala and BCDA are partners in the development of the Bonifacio Global City in Taguig, and the latter’s subsidiary, John Hay Management Corp., for the Ayala Land Technohub in Baguio City.

BCDA said in the letter signed by Kevin Tan, CEO of Alliance Global Inc., parent company of Megaworld, the latter “welcomes the proposal to extend the corporate term of the BCDA and we are confident that the additional term provided to the BCDA would translate to even greater benefits to the country and the Filipino people.”

BCDA added Tan noted the conversion of a portion of BCDA ecozones from leasehold to freehold would make more dynamic and sustainable township developments.

He said a freehold residential component would make these ecozones more attractive and competitive as investment destinations.

BCDA said for Hann chairman and CEO Dae Sik, extending the agency’s term is vital for project continuity, ensuring the successful execution and completion of long-term initiatives.

HDC is the developer of Clark’s first fully integrated development, Hann Casino Resort, and the 450-hectare luxury estate development called Hann Reserve in New Clark City.

Senate Bill 2647 seeks to declare a certain percentage of the land area of each BCDA ecozone as alienable and disposable, authorizing its sale for residential use, mixed use, industrial, and institutional purposes. The bill also seeks to extend the BCDA’s corporate term by another 50 years from its current remaining corporate life of 18 years.

Its counterpart bill in the House of Representatives, House Bill 8505, was approved on third and final reading in August last year.

Changing consumer preferences create openings for counterfeiters

By

Irma Isip

-

October 16, 2024

0

Producers of spirits and wine have intensified their campaign against illicit alcohol in the Philippines as they noted consumer preference toward premium, high-quality alcoholic beverages has opened new opportunities for counterfeiters.

The “Drink Authentic, Enjoy Responsibly” is a campaign by the Alliance Against Counterfeit Spirits supported by the Asia Pacific International Spirits and Wine Alliance and the Alcoholic Beverage Alliance of the Philippines aimed at promoting consumption of safe alcohol through authentic products.

The drive will help educate consumers on the harm of counterfeit alcohol on one’s health and business.

“Counterfeit alcohol production and the illegal importation of alcohol are activities carried out by criminal networks that are often linked to other illicit activities,” the groups said in a statement yesterday.

Rowel Barba, director-general of the Intellectual Property Office of the Philippines (IPOPHL) said counterfeit alcohol “not only cheats all of us by robbing legitimate businesses of revenue and the public of tax revenues, it also endangers the lives of consumers.”

The groups cited data from the World Health Organization which said 20 to 30 percent of alcohol consumed in the Philippines is “unrecorded.” This includes homemade alcohol, smuggled goods, and counterfeit products.

In September 2023, the National Bureau of Investigation confiscated 6,562 bottles of counterfeit alcoholic beverages, worth up to P 96 million, during operations in five areas across Pasay, Parañaque, Manila, Quezon City, and Aklan province.

In 2021, IPOPHL helped initiate a memorandum of understanding (MOU) that brings together e-commerce companies and IP owners to establish a code of practice to combat counterfeit goods, including alcohol. At present, IPOPHL continues to facilitate the E-Commerce MOU which is now backed by nearly 50 signatories.

Transparency to enhance PH’s attractiveness as investment hub

By

Irma Isip

-

October 15, 2024

0

The Philippines has demonstrated its readiness to become an investment hub in the region as it joined other countries in signing an agreement to update the Asean Comprehensive Investment Agreement (ACIA).

“This agreement makes it easier for investors to identify sectors open for investments in the Philippines, signaling a readiness to be a leader in the global economic and strategic manufacturing hub,” said Cristina Roque, secretary of the Department of Trade and Industry (DTI), commenting on the Fifth Protocol to amend ACIA which the country signed in Laos last October 9.

Roque said Asean, as a whole, has made significant progress in several areas of economic integration.

DTI undersecretary Allan Gepty, said the protocol presents a more stable and predictable business environment necessary to attract more investments in the Philippines.

Gepty said the submission of the Schedule of Reservations pursuant to the Fifth Protocol would provide greater certainty and transparency in determining which sectors are open for investments because those sectors with market access restrictions or limitations will be accordingly listed.

“This is aligned with the country’s policy to pursue an advanced, purposive and forward looking agreement,” Gepty said.

He added: The ACIA sends also a strong signal to the investment community of the country’s readiness to serve as an investment hub in the region especially for smart and sustainable manufacturing.”

The Asean secretariat said the Protocol enhances certainty and transparency to investors on the investment regime in Asean.

The amendment aims to ensure the ACIA remains relevant, modern, forward-looking and more adaptive to business landscape.

More specifically, the Protocol provides for the operationalization of the transition of the current single-annex ACIA reservation list to a two-annex negative list, including the reservations against the obligation on Prohibition of Performance Requirements mandated under the 4th Protocol to Amend the ACIA; the expansion of the scope of the ACIA; and the application of the ratchet mechanism to some member-states.

Investments in Asean increased by less than 1 percent in 2023 to $230 billion, another record year, the Asean Investment Report said.

The report said intraregional investment fell 35 percent to $22 billion, with most member-states receiving a declining intra-Asean investment.

About us