All-text network coming up

Prospects for are bright for publicly listed technology and media firm Now Corporation.

In fact, the company has allotted at least P1 billion in capital expenditures this year and about P2 billion in the next two years to finance new business ventures, including an all-text mobile telephone network that will be undertaken through subsidiary Now Telecom.

Now Corp. president and chief executive Mel Velarde said the company intends to activate an all-text GSM network, with a capital expenditure of $28 million or about P1 billion, especially after the National Telecommunications Commission (NTC) issued all the needed frequencies and licenses.

The company is looking at various options of raising funds, but the most ideal would be a combination of debt and equity. It has been approached by a number of financial institutions to arrange the fund-raising activity.

Now Telecom plans to offer all-text services initially in Metro Manila and nearby areas to capture from two to five percent  of the 200 million text messages a day market in the Philippines. The unlimited text offering within the network will be priced at P3 per day.

While offering voice services is still an option (Now Telecom used to be Next Mobile which used to offer trunk radio services), Velarde said that they do not want to compete with the big players and to enter a business that requires a very huge capital outlay and extensive infrastructure.

Also in the horizon are plans to offer broadband services.

Now Corporation closed last year on a high note, with revenues growing 59 percent compared to the previous year.

Company officials said revenues this year are expected to increase by 46 percent as against last year. Now  is also expecting to post positive net income this year.

Through its software collaboration business, Now also plans to offer cloud services (IBM Smart Cloud: email and calendar, collaboration and instant messaging, web meetings, document editor, mobile); cloud/on premise services (launching of human resource management system on cloud at P15,000 per month with three modules- employee profile, timekeeping and payroll).

Now  is a telecommunications, media and technology (TMT) company of diversified services. The company has growing international presence in countries such as Japan, USA and the UK. Now’s  products and services include social CRM (customer relationship), telematics, web integration, digital and mobile applications technologies, wireless broadband infrastructure, among others.

Over the past years, Now has invested heavily in development activities which includes forging strategic alliances, acquiring TMT companies such as Softweb, Softrigger, Holy Cow Animation, among others, and infusing financial resources to provide high-value innovative ICT services and products.

Phl-Malaysia cooperation

Malaysian Minister of International Trade and Industry Dato’Sri Mustapa Mohamed sees growing interest in investing in Mindanao, which will bring  closer ties between Malaysia and the Philippines.

Mohamed said Malaysian companies have been invited in the Bangsamoro region to do trade and invest in business and revealed that there has been some discussions between their people and the people in Mindanao.

According to him, one area is agriculture because Mindanao has plenty of land, adding that palm oil is certainly one sector that can be discussed.

During a recent Trade and Investment Mission, Philippine Chamber of Commerce and Industry (PCCI) director Donald Dee urged Malaysian investors to help in rubber processing.

Meanwhile, Mohamed said that there are some discussions for rubber and oil palm investment, even as he pointed out that the climate between the two countries has become a lot closer in the last two to three years, especially with the signing of the Bangsamoro peace agreement, brokered by Malaysia.

Last March 27, Malaysian Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak, visited the Philippines to witness the signing of the Framework Agreement on Bangsamoro.

President Aquino visited Malaysia in February and discussed about economic prospects in the Philippines. Mohamed encouraged Filipinos to further promote Mindanao to Malaysian investors to know the potentials and the resources available in that region.

The Regional Board of Investment (RBOI)  has been doing promotion of the  ARMM Investments towards Bangsamoro.

Also recently, Mohamed has given assurance of Malaysia’s cooperation in providing Islamic banking and finance in the Philippines.

Mohamed, who was in the country for the World Economic Forum (WEF) which coincided with the Trade and Investment Mission to the Philippines, said there has been discussions about Islamic banking and finance.

He said Amina Razul, one of the leading advocates of Islamic banking and finance in the country, has pointed out its importance during the WEF.

Mohamed pointed out that Malaysia is number one in the world with respect to Islamic banking and finance, and if the Philippine government is interested to go into Islamic banking, Malaysia will be the first country to provide cooperation with its banks.

He added that Malaysia has been working very closely with many countries around Asia and the Middle East in the areas of Islamic banking and finance.

About two-thirds of Sukuks (bonds) globally  is initiated in Malaysia. He said that they issue two-thirds of Sukuks bond instrument out of Malaysia, so Malaysia is number one in the world of  Islamic banking and finance.

Global Islamic finance assets are expected to surpass the $2 trillion mark in 2014 and will continue to chart positive growth across all sectors.

Malaysia has successfully produced two home-grown Islamic banks with capital base of more than $1 billion – Maybank Islamic and Bank Islam.

According to The Banker Top Islamic Financial Institutions 2013, 24 of Malaysia’s Islamic financial institutions are ranked among the 100 largest Islamic financial institutions in the world based on the size of Shariah compliant assets.

Malaysian Investment Development Authority (MIDA) Foreign Investment Coordination Division senior deputy director Mohamad Ismail Abu Bakar said that Hongkong and Shanghai Banking Corporation (HSBC) had arranged the meeting of the Bangko Sentral ng Pilipinas (BSP) and Maybank and CIMB Bank officials in Malaysia last month to collaborate on Islamic banking particularly technology and expertise

Filipino -Muslim leaders have pushed for Islamic banking in the country for financial inclusion and business growth.

Halal International Chamber of Commerce and Industries of the Philippines, Inc.  (HICCIP) chairman Carim Panumpang said Filipino Muslims want Islamic banking in order for their businesses to grow.

He noted that Muslims have limited access to financial institutions and that Islamic banking is a more ethical and more profitable way of banking.

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