Many investors—both local and foreign—were worried about the prospects of a Duterte presidency, but once it became clear that he would become the country’s next leader, they showed him some love. And how.
Local stocks rebounded sharply Tuesday with the Philippine Stock Exchange index surging 183 points to close well above the 7,000 mark (the price barometer dipped last week in the run-up to Monday’s polls). That surge of 2.6 percent is something you don’t see every day and was, in fact, its biggest gain in seven weeks. Even the peso trekked sharply higher, making it the best-performing currency in the world Tuesday (yes, worldwide), while Philippine government bonds also rose.
Incidentally, a Bloomberg News article published Tuesday pointed out that the first job of the Davao City mayor once he assumes the presidency in 50 days’ time was to win over investors. Among the talking heads quoted in the story was American Chamber of the Philippines adviser John Forbes, who stressed the need for the incoming administration to focus on improving the country’s creaky infrastructure.
Well, that’s interesting because his quote came right after the paragraph mentioning the possible appointment of Davao businessman Carlos “Sonny” Dominguez either as finance or transportation secretary in a Duterte Cabinet. You see, just a couple of weeks ago, Dominguez was hopping mad when Forbes supposedly made a disparaging comment to the former about his low regard for the Filipino electorate during a private party in Makati.
Dominguez got even angrier when Forbes e-mailed him about it but offered “no denial, no explanation and no apology.” Well, now that Duterte has won, perhaps a peace offering is in order? Daxim L. Lucas
Digital shift
NO, it has nothing to do with the imminent change in the country’s leadership but has everything to do with a worldwide digital push. Citi has sent feelers to its high net worth clients about plans to fold up its branches in Alabang, Binondo and Libis (Quezon City). This will leave Citi—one of the first foreign banks to set up shop in this country—with only three branches: two in Metro Manila (Makati and Greenhills) and one in Southern Philippines (Cebu).
But the bank has assured clients it would maintain ATM presence in these areas. In Binondo and Libis, Citi’s investment and insurance brokerage arm Citicorp Financial Services and Insurance Brokerage Philippines will keep a center for portfolio discussions. The clients of Alabang and Binondo clients will be transferred to Citi’s Makati branch, while Libis accounts will be migrated to Greenhills.
Asked for comment, CEO Aftab Ahmed said: “The Philippines continues to be an important market for Citi and Citi remains committed to the Philippines as we look to add to our 114-year history.”
In this day and age, Citi sees less need for physical centers as branch traffic across the region has been down by 50 percent in the last five years. In the same period, digital transactions are up by more than 100 percent. In the Philippines, nearly half of Citi’s clients use digital channels such as online and mobile banking. The bank has added a million new users of digital banking in the last 12 months. Elsewhere in Asia, 95 percent of transactions are already happening outside of the branches. Doris Dumlao-Abadilla
Lawyers in audit firm
APPARENTLY, it’s not only the country’s premier law firms that scramble to hire the smartest newly minted legal eagles. At least one audit and consultancy firm is also constantly on the hunt for the best and the brightest. Biz Buzz learned that audit firm Reyes Tacandong & Co. is the employer of choice for bar exam seventh placer Darniel Bustamante, who got his law degree from San Beda College-Manila.
What’s a lawyer doing working with accountants instead of fellow lawyers? Well, you’d be surprised. Reyes Tacandong chair Roman Felipe “Manny” Reyes said the firm—which was founded five years ago by SGV & Co. breakaway partners—has a tax group with a growing talent pool that is useful for its clientele.
In particular, Reyes said this unit “develops young lawyers into champions in transfer pricing, estate planning, corporate tax restructuring, tax compliance, National Internal Revenue Code (NIRC) competency, international taxation and initial public offering tax advisory.”
Interestingly, the audit firm also has a specialist service called “taipan and expat tax returns preparation.” (Remember, there is a world of difference between tax avoidance and tax evasion.)
And how big is this tax group with their services? It is currently composed of 70 staffers, including 25 lawyers. Indeed, something tells us that demand for this group’s services will rise significantly in the coming years as the audit firm grows along with the local economy. Daxim L. Lucas
Oreta retires
AFTER a decade at the helm of upscale property developer Alphaland Corp., businessman Roberto V. Ongpin’s close associate Mario “Babes” Oreta is bowing out as president effective May 31, 2016.
“Babes will be a great loss for me and Alphaland, but I have to respect his wish to retire,” said Ongpin (known by his initials “RVO” to associates) in a letter to Alphaland staff, adding that Oreta had agreed to remain as a director of Alphaland.
In his resignation letter dated April 30, Oreta said he would put up a boutique law office to handle deals that might still come his way. “I am and have always been a deal-maker. I enjoyed each and every deal we made for the company and with you guiding me all the way. In acquiring the businesses that Alphaland now has, we went through rough patches and I am glad to have helped in steering them into calm seas. Positive that it’s on a clear path and direction under your stead, I can now leave Alphaland knowing that my work has been done,” Oreta said in his letter to RVO.
Oreta said that from a start-up company whose life depended on deals, Alphaland had now become a property company whose main business was the operation of exclusive clubs and of the buildings it had built through the years. The decision to retire was firmed up after a lot of “soul-searching” and “with mixed emotions,” Oreta said.
Oreta will be succeeded by RVO’s daughter, Anna Bettina Ongpin, Alphaland’s executive vice president, chief operating officer and assistant to the chair. After early schooling in England, Anna graduated from the exclusive Wellesley College in Massachusetts and had lived and worked principally as a management consultant for a number of firms while she lived in the US. After much pleading from her old man, she finally agreed to move back to the Philippines to help at Alphaland in 2013. Doris Dumlao-Abadilla
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