Business as usual: Top 10 most read business stories in 2024

MANILA, Philippines — From the fluctuating financial performances of various businesses to the significant shift in the peso’s value, 2024 has proven itself to be a year of turning points for both local businesses and consumers alike.

Major headlines that rocked the business community in 2024 included some digital banks that defied the odds and showed profitability, grocery chains suspected of selling rip-off goods, divestments in well-known enterprises, as well as landmark deals that could reshape the industry.

As the year comes to a close, INQUIRER.net revisits the 10 business stories that garnered the most pageviews. These stories made some readers smile while others were left shaking their heads.

Most read business stories in 2024:

1. BSP: Only two of six PH digital banks are profitable

As efforts to digitize have become more widespread—in both the government and private sector—digital banks have emerged as key players in providing accessible banking services.

However, as of March 2024, the Bangko Sentral ng Pilipinas (BSP) reported that only two of the six digital banks in the Philippines have achieved profitability.

The BSP declined to identify the two, but the six digital banks operating in the country are UNO Digital Bank, UnionDigital Bank, GoTyme, Overseas Filipino Bank of state-run Land Bank of the Philippines, Tonik Digital Bank, and Maya Bank.

BSP Director Melchor Plabasan even predicted that the losses incurred by most digital banks would most likely persist as it may take five to seven years for digital banks to become profitable.

Plabasan, in making the observation, cited global trends where only about 5 percent of digital banks are currently profitable.

Furthermore, Plabasan noted that another significant challenge for these banks is their lending activities.

Data from the BSP showed that 14.49 percent of the entire credit portfolio of digital banks had turned sour in 2023, significantly higher than the 3.24 percent ratio recorded for the entire Philippine banking industry.

Due to this, Remolona said the BSP is “not yet comfortable” with the industry’s overall performance, which serves as the deciding factor for regulators to welcome new players or not.

Read the complete story here.

2. Dali grocery chain ordered to stop sale of suspected rip-off products

Dali Everyday Grocery (Dali) boomed in recent years as it sold cheaper alternatives to household products.

However, in 2024, Dali faced several regulatory challenges concerning intellectual property rights and consumer protection laws.

In July 2024, it was revealed that the Intellectual Property Office of the Philippines (IPOPHL) issued an injunction against Dali Everyday Grocery (Dali) as early as February of the same year to pull out three products that have similar packaging to other popular brands.

Hard Discount Philippines, the operator of Dali, is also reported to be facing cases of trademark infringement, unfair competition, and copyright infringement filed by Nutri-Asia, Inc.

The case stems from Dali selling Kulina catsup and chili sauce and Rajah Puro vinegar and soy sauce in packaging confusingly similar to Nutri-Asia’s popular household brands UFC and Datu Puti products.

The Department of Trade and Industry (DTI) also issued a show cause order to Dali on May 29, 2024, amid 13 complaints from consumer rights group Malayang Konsyumer.

If found guilty, the DTI said Dali could face an administrative fine of up to P300,000 and possible sanction of business permit revocation for non-compliance with sanitary regulations in their area of operations.

Read the complete story here.

3. Peso moves ever closer to record low

On June 21, 2024, the Philippine peso fell to its lowest level in 20 months, declining to 58.8 against the US dollar.

Experts attributed the depreciation to the US dollar impacting emerging market currencies, as well as the regional downturn that followed China’s central bank’s signaling a more relaxed stance on the yuan.

Some say the dovish remarks from Bangko Sentral ng Pilipinas (BSP) officials—including BSP Governor Eli Remolona Jr., who floated the possibility of reducing interest rate cuts—contributed to the peso’s weakness.

However, on November 21, 2024, the peso further depreciated to 59 per $1, its lowest in over 2 years.

As of writing, the Philippine peso is currently at 58.8 against the greenback.

Read the complete story here. 

4. Illegally imported PH food products subject to USDA public health alert

In July 2024, the US Department of Agriculture’s Food Safety and Inspection Service (FSIS) issued a public health alert for meat and poultry products illegally imported from the Philippines.

The FSIS said that while there have been no reports of adverse reactions due to consuming Filipino products, it still did not bear any producing establishment information.

The Philippines is not authorized to export meat and poultry products to the US, which is why the FSIS is investigating its entry into the country.

The products subject to the public health alert include:

• 150-gram (g). can of Argentina Brand Corned Beef
• 175-g. can of Argentina Brand Corned Beef
• 260-g. can of Argentina Brand Corned Beef
• 150-g. can of Purefoods Corned Beef
• 210-g. can of Purefoods Corned Beef
• 150-g. can of Chunkee Corned Beef
• 190-g. can of Chunkee Corned Beef
• 7.43-ounce Jar of Lady’s Choice Chicken Spread

The FSIS then went as far as to advise American consumers and restaurants who purchased these “not to consume or serve them” and even to “double bag the product when discarding it to reduce the possibility of animals,” as its safety cannot be confirmed by the US Department of Agriculture.

Under FSIS rules, the entry of small quantities of meat, poultry, and egg products for personal consumption is permitted subject to its regulatory requirements. This includes personal consumption consignments not exceeding 50 pounds for meat, poultry, or egg products, and having these limited to personal use cannot be sold or distributed.

Meanwhile, the said products have been approved by the Philippine Bureau of Food and Drugs Administration.

These products were discovered to be shipped to restaurants and retail locations in Connecticut, Delaware, Maryland, New Jersey, New York, North Carolina, Ohio, South Carolina, and Virginia.

Read the complete story here.

5. National ID gives more Filipinos ‘face value’

In October 2024, government officials and representatives of the private sector and the academe agreed that PhilSys will be transformative and will speed up the achievement of the goal of inclusion and ensure that no Filipino will be left behind as the country moves towards a digital future.

By having a unified national ID, they expressed confidence that the system would pave the way for all communities enjoying the privilege of availing of financial services, especially the marginalized communities, by simplifying identity verification processes.

Department of Information and Communications Technology (DICT) Sec. Ivan Uy was one of the officials, tagging the ID as “not just a technical achievement but a step toward inclusion, empowerment, and national development.”

Department of Information and Communications Technology Undersecretary David Almiro, for his part, said the national ID makes verification of a person’s identity much faster and more accurate, reducing if not completely eliminating, the possibility of fraud.

Read the complete story here. 

6. BSP terminates contract with national ID card supplier ACI

Another National ID story joins the list.

The National ID, or what was formerly known as the Philippine Identification System (PhilSys), has been one of the most highly controversial government initiatives as it grappled with various challenges, including how to balance modernization and ensuring privacy, as well as inclusivity and maintaining public trust in government systems.

Six years after being enacted, in August 2024, the Monetary Board (MB) of Bangko Sentral ng Pilipinas (BSP) terminated the contract between BSP and All Card Inc. (ACI), the supplier of Philippine Identification System (PhilSys) ID.

MB Resolution No. 962 obtained by INQUIRER.net states that the terminated contract covers the following:

• Provision of technical and maintenance support personnel
• Training of BSP and Philippine Statistics Authority personnel
• Supply and delivery of raw materials, consumables, and wear-and-tear spare parts for 116 million pieces of PhilID cards

Included in the resolution is a notice of decision, which detailed the grounds for termination of the contract as follows:

• ACI failed to deliver enough raw materials within the specific period, even within the extension granted
• ACI failed to maintain the production machinery due to unavailable machine spare parts, causing prolonged machine downtime

The document likewise indicated that ACI failed to perform the following obligations under the contract:

• ACI failed [or] refused to comply with valid instructions
• ACI failed to timely provide a comprehensive and realistic catch-up plan
• ACI effectively abandoned the contract
• ACI incurred almost 7 percent wastage, which grossly exceeded the 1 [percent] maximum allowable maximum wastage

The MB also stated that the cumulative liquidated damages due from ACI exceeded 10 percent of the contract price as of June 30, 2024.

Meanwhile, the ACI in response filed a motion for reconsideration.

However, the sudden termination of the contract raised concerns about further delays in the production and distribution of national IDs, which prompted the Senate to seek a probe into the matter.

Read the complete story here.

7. BCDA strikes deal to sell Naia Terminal 3 to government for P65B

As the government continues its efforts to modernize the Ninoy Aquino International Airport (Naia), the Bases Conversion and Development Authority (BCDA) in October struck a P65-billion deal to sell to the government its 60-hectare property in Pasay City, where Naia Terminal 3 stands.

Key details of the agreement include:

• Lease-to-Purchase deal: To allow the Department of Transportation (DOTr) to build up the necessary funds to pay for the property, the BCDA said it will continue leasing the property to the DOTr for three years. Under the deal, the DOTr has the option to purchase the property after three years—otherwise, the lease agreement will simply continue.

• Financial Terms: The property’s zonal value is worth around P48 billion. With BCDA and DOTr agreeing to a downpayment of P10 billion, the total payment will now be P65 billion now including interest and escalation rates. Meanwhile, the annual lease payment increased to P498 million from the previous P180 million.

• Contracting Parties: The Manila International Airport Authority is the entity involved in this agreement.

BCDA president and chief executive officer Joshua Bingcang said the DOTr was confident that by the third year, it would be able to purchase the property.

The offer comes months after the Public-Private Partnership (PPP) for Naia between the government and San Miguel Corporation (SMC) was formalized on March 18, 2024.

Read the complete story here.

8. BIZ BUZZ: Dennis Uy unloads Conti’s and Wendy’s PH

By the end of the third quarter, Dennis Uy’s food holding company, Eight8Ate Holdings Inc., which includes Conti’s Bakeshop & Restaurant and Wendy’s Philippines, was sold to an unusual suspect—Crystal Jacinto, the 41-year-old owner of European Wellness Villa Medica Manila.

We say unusual because Villa Medica Manila is a wellness center offering anti-aging, aesthetic, and disease management solutions and also serves as the official health and wellness partner of Miss Universe Philippines.

From being the owner of a wellness center to now being the matron of two of the biggest restaurant chains in the country, Jacinto acquiring Eight8Ate Holdings Inc. immediately leaped her into the big leagues.

In fact, even the three sisters who founded Conti’s, Cecille Conti Maranon, Carole Conti Sumulong, and Angela Conti Martinez, have all likewise agreed to sell their residual stake in the dining chain directly to Jacinto, which effectively gives her full control over Conti’s, which, by June, had a total 74 stores nationwide (Wendy’s, meanwhile, has 70).

According to the PDI’s report, Uy sold Eight8Ate Holdings Inc. while he was in the middle rationalizing assets to temper his debt burden.

Read the complete story here.

9. Marcos signs Real Property Valuation and Assessment Reform Act

In June 2024, President Ferdinand Marcos Jr. signed into law the Real Property Valuation and Assessment Reform Act (RPVARA), a measure that aims to standardize the valuation of real property in the country.

It would set a two-year amnesty on interests, surcharges, and penalties for unpaid real property tax, which Marcos said will “instill and encourage long-term and consistent tax compliance.”

The tax amnesty covers penalties, surcharges, and interests from all unpaid real property taxes, including the Special Education Fund, Idle Land Tax, and other special levy taxes before the effectiveness of the RPVAR.

Read the complete story here. 

10. ABS-CBN losses swell while GMA income tumbles

GMA Network and ABS-CBN are two of the biggest media conglomerates in the country, but despite being the most prominent figures (objectively speaking) in the broadcasting industry, it was revealed in April 2024 that the long-time rivals both faced significant challenges, as detailed in their stock exchange filings, in 2023.

GMA, for its part, reported a 42 percent decline in earnings, dropping to P3.17 billion. Its revenues also slid by 13 percent to P18.64 billion as advertising sales dipped to P17.18 billion from P20.23 billion.

GMA attributed these tumbles to the lack of political advertisements, valued at P3 billion, directly impacting its flagship channel, GMA-7, as well as its radio segments.

Meanwhile, ABS-CBN’s net losses widened from P2.6 billion the previous year to P12.8 billion, while revenues remained flat at P18.51 billion from the previous year’s P18.55 billion.

This swell in losses was heavily attributed to its P9.1 billion impairment loss—or the permanent reduction in the value of an asset—in ABS-CBN’s broadband and cable television unit Sky Cable, triggered by the cancellation of the P6.7 billion sale of the cable firm to PLDT Inc.

ABS-CBN’s debt obligations also stood at P12.6 billion by the end of 2023.

Read the complete story here.