AS the equities markets in the region recovers from a slump, local stock market players are anticipating a downpour of Internet commerce-related activities from listed companies and newly established dotcom firms.

To list on the Philippine Stock Exchange through an initial public offering is a natural course of action especially if the company is profitable and on a growth path. This was the opinion of Felipe Yap, PSE chair, during the launch of Yapster e-Conglomerate Inc.

The nice thing about the Internet is that at the stock market, for example, the playing field becomes even between the haves and have-nots, between developed and developing nations, he said, stressing that global barriers no longer exist in the e-World.

Yap noted that as equities in Asia recover from the slump in this new millennium, e-commerce traffic is beginning to explode with rapid growth of Internet usage.

Citing a November 1999 finding of the US-based International Data Corp., he underlined that worldwide Internet economy will soar past the $1-trillion mark next year. There will be three specific segments dominating the field: Internet commerce, Internet Information Technology infrastructure and Internet business infrastructure.

In this light, he said, stock brokerage houses are also reshaping the way they do business by embarking on greater connectivity through speed, convenience and accessibility to information.

Yap added that as worldwide population increases, the multiplier effect of online migration is anticipated to speed up progressively. In Asia, for instance, according to IDC, from only 20 million online users in 1998, the figure is expected to jump to 44.7 million in 2002.

Although the Philippines' share would only be at two percent, fiscal planners' move to outline better business incentives should improve the figure, he said.

The continuing search for ways to bring speed, efficiency and cost savings in running a global e-business has led Yap and his family to organize Yapster e-Conglomerate Inc. The Internet-enabled holding company officially blasts off into cyberspace this month to put its mark as the first of its kind in the virtual business world.

"Companies are not just keeping themselves abreast with fast-paced technological changes in the corporate marketing arena, but are embarking on long-entrenched plans by infusing more Internet-related investments to ensure their dotcom upstarts evolve into more than just a mere website," Yap explained. "It isn't just the novelty of providing product brochures and promotion leaflets on screen. The focal point is that companies are pricing an after-sales effect as customers find it more convenient to transact businesses online."

Yap added that the "coming of the new millennium signals new opportunities toward the race to capture a critical mass of the Internet audience to gain bigger market shares."

Studies show that users who go online at least once a month check stock quotes (37 percent), investment/financial news or advice (17 percent) and stock trade (6 percent). These figures can increase when there are more technology stocks offered as investments.

According to IDC estimates, revenues on the World Wide Web in the Asia-Pacific region (excluding Japan) alone jumped from $21 million in 1996 to as high as $683 million in 1998. Although the Philippines' share in the 1998 statistics was only at one percent, annual growth rate has expanded progressively from only $200,000 in 1996 to an estimated $20.4 million in 1999.

Of the $20.4 million, medium- to large-enterprises generated 68 percent of aggregate e-trade receipts. This will be further boosted given Philippine stock market regulators' plan to allow small- to medium-scale companies to list on the board.

Yap noted that the Philippine e-commerce industry remains untapped.

"Several players are focusing only on establishing dot-companies without looking at the supporting infrastructure," he said.

Yapster addresses all aspects of fully enabling an e-business model, he said. Thus, Yapster established a solid partnership with database and solutions company Oracle as the leading provider of technological solutions.

"Another opportunity we see is that worldwide awareness of the e-commerce impact is increasing. It gives our company a chance to immediately tap into this excitement and to impact on how e-business provides value to the consumer," he said.

Abigail Yap, chief executive officer of Yapster e-Conglomerate, said the strength of the Yapster group is that it is focused not only on online services, but it has the core infrastructure to enable the Yapster e-Businesses, which are Active Business Solutions (the consulting group for enterprise resource planning and Internet technologies), Yapster Shared Services (the data center) and the Interaction Center (for customer relationship management).

"The strength lies in having the infrastructure in place which not only supports the dotcoms but will also be a profit center in their own right. It has become evident that the core of any e-business is enablement. And we have captured the strength of that model," she explained.

Also, later on when the company establishes a high-performance and profit track record, it will pursue an IPO strategy for regional or strategic expansion not for the hype created by the dotcom industry.

"Currently, we are focusing on delivering the value-add solutions to our clients and be fully operational," she said. "When we pursue the IPO strategy, we will review each subsidiary company and decide on the growth and expansion path. Each company has its own Yap CEO who will be driving and leading their companies. I believe as each company provides a clear value proposition to clients, it will be well-received. Initially, we are tapping into the local B2B market."