Home Blog Page 10167

PSE index rises ahead of central bank reviews

By Arra B. Francia, Senior Reporter

THE MAIN INDEX firmed up on Tuesday despite moving sideways for most of the session as investors remained cautious ahead of several central bank meetings this week.

The 30-member Philippine Stock Exchange index (PSEi) climbed 0.16% or 13.05 points to close at 7,922.04, snapping a two-day decline. The broader all- shares index likewise eked out gains of 0.05% or 2.78 points to 4,845.50.

“Our index managed to close slightly higher than [Monday]’s close as investors stay cautious by selling when the PSEi goes above 8,000 and hunt bargains when it pulls back,” Timson Securities, Inc. Equity Trader Jervin S. de Celis said in a mobile phone message.

“Market players will be watching the announcements of three central banks that will be released on Thursday (US Federal Reserve, Bank of Japan, Bangko Sentral ng Pilipinas) and this could be the reason why the PSEi has been struggling to stay above the 8,000 level.”

The Federal Open Market Committee will conclude its two-day policy meeting on Wednesday, June 19, while the Bank of Japan is holding its own review on June 19-20.

Meanwhile, the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board is also set to meet this Thursday, June 20. Six out of 10 economists in a BusinessWorld poll expect the Monetary Board to keep key interest rates steady, while the rest are projecting a 25-basis-point reduction.

“If the BSP cuts interest rates on Thursday, I guess that will bolster the risk appetite of investors in the local market and the PSEi may finally be able to break out of 8,100 level,” Mr. De Celis said.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez also attributed the market’s performance to the upcoming Fed and BSP central bank meetings.

“The index could still continue to consolidate until we get word from the two aforementioned central banks on what their decisions would be. Until then, support remains around 7,830 (May 22’s high and recent breakout point),” Mr. Perez said in an e-mail.

Sectoral indices were equally split between advancers and losers. Holding firms led those in positive territory after it jumped 0.75% or 56.74 points to 7,551.10. Industrials racked up 0.59% or 69.15 points to 11,661.09, while services added 0.48% or 8.10 points to 1,678.89.

In contrast, property slumped 0.74% or 31.99 points to 4,262.56. Financials dropped 0.5% or 8.75 points to 1,714.93, while mining and oil shed 0.19% or 14.20 points to 7,119.37.

Turnover stood at P7.96 billion after some 1.66 billion issues switched hands, higher than the previous session’s P5.02 billion.

Foreign investors turned net buyers on Tuesday with P173.55 million, compared to Monday’s net outflow of P587.43 million.

Local startup launches on-demand fuel delivery service

Philippine startup Gasmee Corporation Philippines launched today their on-demand fuel-delivery service, catering to customers in Rizal and Cebu, with plans for expansion later this year.

Announced during the 2019 PW Asia Conference, this service aims to streamline the refeuling needs of busy professionals, households, and fleet owners.

Users will be able to order and pay for their fuel all from Gasmee’s mobile app. CEO Christian Jon Rillera and Managing Partner Michael Martens see individuals benefitting from the convenience of their on-demand service, while business operators in the transportation field can better streamline their workflows, and their bottom lines, with Gasmee.

According to Rillera, Gasmee offers competitive pricing, subscription benefits, smart metering, and efficient demand-based order management. Its mobile app is currently available on the Google Play Store for Android devices, with an iOS app currently in development.

Career advice: How to build relationships and prioritize growth

Young professionals these days seem to be in a constant state of flux, pursuing jobs and careers that give them personal satisfaction and fulfillment over those that solely provide competitive salaries and benefits. TELUS International Philippines, one of the leading providers of contact center, business process, and digital solutions in the country, understands that job seekers and team members are looking to secure a competitive compensation plan but, at the same time, being part of an organization that provides fulfilling roles and development opportunities is even more important. By meeting and exceeding team member’s expectation for personal and professional growth, TELUS International Philippines is achieving results with one of the lowest attrition rates in the industry.

TELUS International Philippines has also received a record-breaking engagement score of 90 percent according to an annual employee survey conducted by global HR solutions provider Aon. So what is it doing right?

Creating an environment of support and opportunity where employees can see their medium- and long-term opportunities within the company is a good place to start, according to Vice-President for Brand, Marketing and Culture, Warren Tait. “Team members can envision their future as a valued part of our organization,” he said.

But what exactly are the opportunities that employees should look for? Long-time TELUS International Philippines team members Darrell Laxamana, Jovi Ann Enriquez-Sagubo, and Ivette Ramos propose three things those planning their careers should look for.

1. Personal and professional development

Good companies will not squeeze the talent out of their employees. Rather, employees are hired based on their talent and potential and then they are inspired and supported to grow and develop through enrichment programs within the company. The first exposure of Darrell, Jovi Ann, and Ivette to their jobs was a recruitment process that evaluate their potential and an onboarded program including skills training to prepare them for success in their respective roles.

“I entered the corporate environment later than most people would, but I took a gamble because I wanted to send my children to good schools,” said Ivette, who started as an agent and is now a corporate social responsibility officer at TELUS International Philippines. “The coaching and training I received upon joining TELUS International Philippines prepared me for the tasks ahead. It also gave me a boost in confidence and reassured me that I had the potential to advance professionally in a new field.”

For Darrell, the initial training he received as new call center agent fed his competitive nature and motivated him to strive for leadership roles.

“Being new to the call center environment, we spent the first three months in training. We needed to immerse ourselves in the accounts we were to handle, best practices in customer service, basic troubleshooting, and other skills to be successful in our new roles. Exposing us to these things from day one gave us a better understanding of the path ahead and what we needed to accomplish to grow our careers,” said Darrell.

2.Career growth

Opportunities and growth can make a difference between staying or leaving for many career-minded individuals. At some point, employees will want a change, a new role, a new team or to rise in the ranks. TELUS International Philippines employees can experience career moves that play to their strengths and passions.

Jovi Ann thought being an undergraduate would limit her chances of having a rewarding career. “I had to put my passion on hold when I left college to work and provide for my family. I was worried that not having a degree would limit my options and I was lucky to find a company that not only opened doors for me, but also gave me the chance to explore new roles.”

Ivette, appreciates the change in her career when she became CSR officer, where she has since excelled markedly. “Corporate social responsibility gave me a better sense of purpose,” said Ivette. “With the work that I do and the impact we create in our communities, I know I’m making a difference in the lives of many people. From the moment CSR was entrusted to me, I knew it was the track I wanted to take.”

3. Co-workers who motivate you to succeed

Darrell, Jovi Ann, and Ivette have experienced first-hand how healthy relationships in the workplace help one succeed.

Darrell says, “Our friendship started as we all began our careers at the company at the same time. We made different choices as our careers progressed but we were there for each other along the way. Our individual achievements became each other’s motivation to push forward.”

From different team building activities, employee clubs, fun facilities and other employee engagement programs, TELUS International Philippines has always been proactive in cultivating caring relationships within their work environment.

“When there are office gatherings, I am still able to indulge my passion for drawing and painting. There are art contests that I can join and proudly represent my team. There is pride for me in being able to do that,” said Jovi Ann.

For Ivette, it is her exposure to company-led outreach programs that changed things for her. “Initially, having these activities was a way for me and my friends to bond. It also aided me to meet more people and expand my network in the office. Ten years later, I am still enjoying myself and it doesn’t feel like work for me anymore.”

EO Philippines’ Student Entrepreneurs Incubator celebrates purpose in entrepreneurship

Everyone needs a sense of purpose to keep them going through life’s challenges. Generation Z, today’s incoming generation of workers and consumers, seems to have a grasp of its importance. According to a study by Acumen Strategy Consultants, these young professionals feel a sense of responsibility to promote and cause positive change. But rather than pursuing change as a side hustle, Gen Z makes it core to their career.

This was especially apparent during this year’s graduation ceremony of the Student Entrepreneurs Incubator (SEI), a program of Entrepreneurs’ Organization (EO) Philippines — the local chapter of the global business leader network. SEI’s culminating activity, held last June 3 at Romulo Cafe Makati, was as much a celebration of purpose as it was of achievement.

A display of commitment

SEI was borne out of a need to go beyond the call of duty. While the global EO network was already recognizing young entrepreneurs through their (GSEA), some members of the local chapter felt that it wasn’t enough to celebrate young entrepreneurs. They wanted to inspire and nurture them too.

Over the course of six months, nine student entrepreneurs from all over the Philippines were mentored by an EO Philippines member, all seasoned professionals in their respective industries. The mentees themselves took the lead, organizing their monthly meetings instead of the other way around, inculcating initiative and commitment.

“We recruited student entrepreneurs that we thought are serious about their business and not just doing it for a thesis,” said Jenny Co-Yang, SEI Committee Chair. “Because the mentorship is serious business, right? We’re going to take EO members away from their executive time to mentor.”

Valuable lessons

During the ceremony, some of the student entrepreneurs shared the most valuable insights that they picked up from the program.

Kyla Cubio, owner of organic makeup brand Lè Vres and Business Administration student in the Lyceum of the Philippines Batangas, learned about the value of resilience. “I have learned that it’s okay to fail, as long as you use that failure as a sword in your battle to be successful.”

Paul Medina, owner of green footwear brand Green Rubber (GRub), cited the importance of finding an entrepreneurial mentor and adopting an attitude of gratitude as his biggest takeaways. By applying these lessons to improve his business, he is able to further empower his employees, members of his local PWD community.

“My vision is to create inclusive opportunities and economic empowerment for my PWD community,” said Medina. “And EO has helped me redefine the way we think about the business, our process design, and target market, and how our PWD artisans are at the [fore]front of becoming the new wave of entrepreneurs.”

Finding one’s “why”

This cuts to the heart of what SEI and EO Philippines believe are at the heart of purposeful entrepreneurship: providing jobs that improve employees’ quality of life. Tal de Guzman, owner of shoe brand collaborative Stride Collective and 2013 GSEA Philippines winner, shared how the rocky journey for a conscientious enterprise was so worth it.

“I actually have a lot of what-ifs,” she said. “What if I didn’t decide to involve underserved communities in the business model? Would I have been more profitable, or would I be reaching greater heights? I probably would have. But I wouldn’t really have this fire and drive that I have right now and the love for the communities that I have if I didn’t go through this route.”

“I’m really just thankful to EO and GSEA for leading me to this path,” she said. “It’s really not the direct path, but no [new] roads form if nobody starts walking an unbeaten path. I’m happy that back in 2013, I joined this competition that led me to find my ‘why’ in life.”

Belmont Hotel Boracay at Boracay Newcoast soon to open

A haven of white sands and crystal-clear waters

After six months of rehabilitation in 2018, the Philippines’ most famous tourist destination is once again open to the world. The pristine beauty of the white sands and crystal-clear waters of Boracay Island has been restored, and now the area is expected to reclaim its throne as the country’s most popular summer getaway.

Tourism in the Philippines was recorded at a six-year high in 2018, with tourism’s direct gross value added (TDGVA) accounting for 12.7% of gross domestic product (GDP) in 2018, according to the Philippine Statistics Authority. This is bigger than the sector’s 12.2% share in 2017. Last year, the combined economic contribution of tourism activities was also recorded at P2.2 trillion at current prices, up 14.3% from 2017.

The reopening of Boracay Island will undoubtedly contribute further to Philippine tourism. With government supervision and to maintain its status, the area has now become home to only the most responsible and eco-friendly establishments, among which is the new Belmont Hotel Boracay, an up-and-coming five-story hotel well-suited to the demands of the area.

“Boracay Island has been a top destination among foreign and local travelers. They would always go back here to feel the beauty of paradise and the exuding warm nature that surrounds you. Every traveler would always want to make their trip worthwhile and truly memorable,” Marie Jehan Balbanero, Area Head of Marketing and Communications at Belmont Hotel Boracay, said.

“Our hotel is designed to let the guests feel the continuity of a unique and exclusive nature experience in Boracay. This is where you get to feel the warmth and beauty of paradise. We would want our guests to experience that perfect and memorable moment in their trip,” added Ms. Balbanero.

Opening this July 2019, Belmont Hotel Boracay is situated in the perfect location at Boracay Newcoast with views of the golden tropical island stretch of white powdery sand and pristine crystal-clear waters of Newcoast Beach, as well as the nearby golf course. The luxurious accommodations include three clusters that offers 245 deluxe twin rooms, 130 deluxe queen rooms, 49 premiere deluxe rooms, 12 executive suites, and six specially-abled rooms with a total of 442 well-appointed rooms.

Striving to become a unique haven with a stunning vision of nature, beauty of paradise and majestic sunsets, Belmont Hotel Boracay has complete facilities for guests to enjoy. The establishment offers a swimming pool with pool bar, fitness center, spa, restaurant, meeting rooms, function rooms and the trellis garden. There is a promenade beside the hotel where rows of restaurants and retail outlets are slated to open, where guests can walk down to the Newcoast station and enjoy their time leisurely down at the beach.

All of which, of course, are built with preserving Boracay’s newfound beauty in mind. Belmont Hotel Boracay, in line with the government’s program in promoting sustainability tourism, take part in the use of green initiatives such as the use of LED lighting fixtures, use of e-carts and solar shuttles, use of paper for operating supplies such as paper straws and paper box for take-away containers, and the use of dispensers for bathroom amenities.

Belmont Café

The establishment also has an all-day dining, available through its Belmont Café. Belmont Hotel Boracay aims to offer the warmth and comfort of a sophisticated hotel combined with the relaxing tranquility of a secluded getaway.

“In Belmont Hotel Boracay, we live up to the tagline, ‘Savor the moment’,” Adie Gallares, Area General Manager, said, noting that at Belmont, guests are encouraged to retreat from the outside world and embrace the feeling of paradise within.

“We do not remember days, we remember moments. We have to taste, feel and experience the great things in life in order to savor that ‘perfect moment’,” Mr. Gallares added.

Belmont Hotel Boracay’s special location in Boracay Newcoast also offers local and foreign tourists the choice of enjoying a new and different scenery with views of the ocean and mountains.

The Boracay Newcoast is envisioned as a township, replete with rows of restaurants, retail stores and hotels in the surrounding area. The township is expected to soon develop a community of its own where guests don’t have to go far to attend to their needs. Currently, the area’s flagship hotel, Savoy Hotel Boracay, where guests can enjoy the facilities of the party pool and dine in Savoy Café, is within easy reach from across the Belmont Hotel.

This year, Belmont and Savoy are both celebrating their first New Year’s Eve countdown together, one of the biggest events in Boracay Newcoast. It will be a joint celebration for both hotels where more than 1,000 guests are expected to take part.

Belmont Hotel Boracay is located at Newcoast Drive, Boracay Newcoast, Brgy. Yapak, Boracay Island, 5608, Malay, Aklan. For more information, contact (02) 720-1878 to 79 or visit www.belmonthotelboracay.com and check Belmont Hotel Boracay in Facebook.

Remittance growth slows in April

REMITTANCES from overseas Filipino workers (OFWs) grew slower in April from the previous month due to a “cyclical” drop in expenses.

Cash remittances grew by 4% to $2.441 billion in April from the $2.3 billion posted in the same month last year, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.

Despite the year-on-year climb, the growth in money sent home by Filipinos abroad in April was slower than the 6.6% surge seen in March, which was due to a low base from a year earlier when the Philippine government imposed an employment ban to Kuwait.

The central bank attributed April’s increase to the 2.2% growth in remittances from land-based workers to $1.8 billion. Money sent home by sea-based workers also rose 10.6% to $600 million during the month.

April’s haul brought the four-month cash remittances tally to $9.739 billion, 4.1% higher than the $9.353 billion recorded in the same period last year.

The central bank said bulk of the remittances came from United States, which had a 35.9% share in the January to April total. This was followed by Saudi Arabia, Singapore, United Arab Emirates, United Kingdom, Japan, Canada, Hong Kong, Qatar and Germany, which had a combined share of 78% of total cash remittances for first four months.

Meanwhile, personal remittances rose 3.7% to $2.713 billion in April from $2.616 billion in the same month in 2018.

In the first four months, personal remittances — a category that estimates the net earnings of all workers on contracts of less than one year and of all sea-based workers, as well as personal transfers by workers on longer contracts, migrants, and capital transfers from households overseas to their relatives in the Philippines — rose 3.7% year-on-year to $10.811 billion from $10.426 billion the previous year.

Robert Dan J. Roces, Security Bank Corp. chief economist, attributed the tepid growth in April remittances to slower spending during the month.

“We attribute this to the cyclical nature of our remittances. April months usually have lower values compared with previous months as the post-graduation expenses of most households are done,” Mr. Roces said in an e-mail.

“Having said that, the year-on-year growth is proof-positive that overseas Filipino remittance flows continue to be a main contributor to household consumption as it maintains growth at a healthy pace. The steady stream of dollars continue to fund the peso’s purchasing power and assures household consumption, and together with BPO (business process outsourcing) flows, helps augment the continuing struggles of our export sector,” Mr. Roces added.

Meanwhile, UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said the growth was driven by “seasonal major needs” of OFW families.

“Note that some OFWs may have also timed their respective vacation from work to be with their families during the summer,” he said.

Michael L. Ricafort, head of the economics research division of Rizal Commercial Banking Corp., said the year-on-year growth on remittances is “still decent.”

“It’s slightly better. Because of the easing inflation, the dollar has been fairly stable… When inflation is high, they need to convert more,” Mr. Ricafort added.

Inflation accelerated in May following six consecutive months of slowdown, the Philippine Statistics Authority reported earlier this month.

Headline inflation stood at 3.2% last month, up from three percent in April but still slower than the 4.6% recorded in May 2018.

Year-to-date, inflation averaged at 3.6%, past the midpoint of the BSP’s 2-4% target range and still above the 2.9% forecast for the year.

The central bank sees cash remittances growing by three percent this year.

In 2018, remittances grew 3.1% to $28.943 billion from 2017’s $28.060 billion, a little past the BSP’s three-percent growth projection. — R.J.N. Ignacio

Overseas Filipinos’ cash remittances (April 2019)

Overseas Filipinos’ cash remittances (April 2019)

REMITTANCES from overseas Filipino workers (OFWs) grew slower in April from the previous month due to a “cyclical” drop in expenses. Read the full story.

Overseas Filipinos’ cash remittances (April 2019)

BSP likely to keep policy rates steady this week

THE Bangko Sentral ng Pilipinas (BSP) will likely keep benchmark rates steady at its review this week, with policy makers preferring to ensure that inflation maintains its downward trend, analysts said in a BusinessWorld poll.

Six out of 10 economists polled by BusinessWorld said the BSP is expected to leave rates untouched as its policy-making Monetary Board meets on Thursday, with the rest predicting another 25-basis-point (bp) reduction in benchmark yields.

Analysts’ expectations on monetary policy action

“I don’t see a rate cut for the BSP Monetary Board meeting this month. I think that the anticipated Fed rate cut gives them additional room to wait as markets price these data in,” Sun Life Financial economist Patrick M. Ella said in an e-mail.

Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said despite BSP Governor Benjamin E. Diokno’s recent rhetoric on further cuts to policy rates and banks’ reserve requirement ratios, the central bank will likely pause to see the effect of recent easing moves and remain data-dependent.

“(The BSP chief) has deemed rate cuts and monetary easing as ‘inevitable’ but he stuck to script by also promising that adjustments would be data-dependent and engineered by evidence. And although we agree that the May upside surprise will likely be a blip in the downward path for inflation, we expect BSP to take stock of the latest data and to also simultaneously gauge the impact of its recent double-barrelled easing (cut to RRP and reduction in RRR),” Mr. Mapa said.

“Governor Diokno has indicated that the BSP was ‘ready to use all appropriate measures needed’ to ensure that they would provide an environment conducive for economic growth but also stressed that price stability will be the primary focus. We believe that the BSP will pause at the June meeting to await further confirmation that inflation will return to its downward path which would further cement their short-term and medium-term inflation targets,” Mr. Mapa added.

Headline inflation stood at 3.2% last month, up from the three percent in April but still slower than the 4.6% recorded in May 2018. The print also fell within the BSP’s 2.8-3.6% inflation estimate range for that month.

Year-to-date, inflation averaged at 3.6%, past the midpoint of the central bank’s 2-4% target range and still above the 2.9% forecast for 2019.

Mr. Diokno earlier said the slight uptick in May inflation “does not constitute a trend,” adding that the central bank is confident that the rise in prices will slow in the third quarter due to base effects, declining world oil prices, and the appreciating peso.

The BSP cut benchmark yields by 25 bps at its May 9 meeting, bringing the interest rate on the central bank’s overnight reverse repurchase facility to 4.5% effective May 10. The rates on the overnight lending and deposit facilities were also reduced accordingly to 5% and 4%, respectively.

The central bank also reduced the RRR of lenders by a percentage point effective May 31 to 17% for universal and commercial banks, 7% for thrift banks, and 4% for rural and cooperative banks. The reserve ratios of big banks and thrift lenders will be cut by another 50 bps on June 28 and July 26 to settle at 16% and 6%, respectively.

WAITING FOR FED
Robert Dan J. Roces, Security Bank Corp. chief economist, said in an e-mail that the BSP will likely wait for clarity in the US central bank’s policy direction before continuing its easing path.

“The next cut will probably be either July or August…for another 25 bps. The reason is that the BSP, in its data-dependence stance, will want to consider the effects of the first cuts… They will likely ascertain the trajectory of inflation in the coming months prior to making another cut and likely take their cue as well with developments in the US FOMC (Federal Open Market Committee) meetings,” Mr. Roces said.

The US Federal Reserve’s policymaking FOMC is likely to stand pat on policy during its June 18-19 meeting but it still expected to trim its interest rates sometime this year.

Meanwhile, Michael L. Ricafort, Rizal Commercial Banking Corp.’s (RCBC) economics research division head, said he expects a 25-bp cut in policy rates on Thursday as “easing inflation and possibility of Fed rate cuts would justify future cuts in local currency rates now at 4.5%.”

Mr. Ricafort added that a sharp decline in global oil prices and a possible slowdown in global economic growth due to the lingering trade war between United States and China could also trigger a cut in local policy rates. — R.J.N. Ignacio

Analysts’ expectations on monetary policy action

THE Bangko Sentral ng Pilipinas (BSP) will likely keep benchmark rates steady at its review this week, with policy makers preferring to ensure that inflation maintains its downward trend, analysts said in a BusinessWorld poll. Read the full story.

Analysts’ expectations on monetary policy action

Water interruptions seen if Angat level further dips

ANGAT DAM is seen to hit the critical water level of 160 meters by this weekend, with east zone concessionaire Manila Water Company, Inc. (MWC) warning its customers of more service interruptions.

The National Water Resources Board (NWRB) said as of 6 a.m. on Monday, the water level at Angat Dam declined to 162.39 meters, 17.61 meters below the minimum operating level of 180 meters.

In a press briefing in Quezon City, NWRB Executive Director Sevillo D. David, Jr. said if there are no heavy rains soon, the water level at Angat Dam may fall to a new low.

“We are hoping na dumating ang pag-ulan at ‘di dumating sa ganung level. (We are hoping that rain will come and it won’t get to that level.) But we will see in the next couple of days until next week,” Mr. David said.

Water elevation at Angat Dam last dropped below the critical level of 160 meters on July 13, 2010 when it registered a low of 157.57 meters, as the El Niño phenomenon affected the country.

Kailangan natin ma-manage yung supply until such time na umabot yung pag-ulan talaga sa watershed (We need to manage the supply until such time that rain will come to the watershed,)” Mr. David said.

MWC President and Chief Executive Officer Ferdinand M. Dela Cruz said noted that its service will be affected as the Angat Dam’s level goes gown and water releases to concessionaires are reduced.

“There will be rotational interruptions, but it doesn’t mean na walang tubig (there is no water). We will try to make sure that the reservoirs are still filled up,” Mr. Dela Cruz said in a briefing in Mandaluyong on Monday.

For the east zone, MWC said water availability for at least eight hours at the ground floor is at 99.7%. Meanwhile, its 24-hour availability at least at the ground floor is at “a little over 90%” of its water service connections as of Sunday.

Mr. Dela Cruz said Angat Dam’s water level should be at 212-215 meters for it to comfortably service its customers.

The company has benefited from its supply augmentation efforts despite the lower levels at Angat Dam. This includes supply from its Cardona treatment plant which delivers almost 60 million liters per day (MLD), deep wells that provide 47 MLD, and cross border flows from west zone concessionaire Maynilad Water Services, Inc. at 20 MLD.

“We’ve been successful in augmenting the supply that we could control…so we’re about 107 MLD on the things we could control,” Mr. Dela Cruz said, adding that the Cardona plant will reach 100 MLD by August.

Mr. Dela Cruz said that while the Philippine Atmospheric, Geophysical and Astronomical Services Administration already declared the official start of the rainy season last week, water level at Angat Dam continues to go down since rains are not strong enough to bring it back to its normal level.

Mr. Dela Cruz however said that Angat Hydropower Corp. has assured them that even if the critical level is hit, they can continue operating until the dam hits 150 meters through a combination of low level outlet and bypass, which are other ways of drawing water from the dam.

“The caveat there, the lowest operating point we’ve done is 157. We’ve never crossed lower. This is new territory for us. What we’re saying is we’re happy that there is contingency — that’s still 10 meters,” Mr. Dela Cruz said.

NWRB’s Mr. David said the dam’s low level outlet, which was last used in July 2010, is now being tested. He said according to the tests, water quality coming from the low level outlet is “manageable.”

MWC said it will continue to monitor the volume and water quality when the dam reaches its critical level. — Arra B. Francia and Katrina T. Mina

Globe set to lease 150 common towers from two companies

TWO common tower providers are set to sign a memorandum of agreement (MoA) with the Department of Information and Communications Technology (DICT) after securing a deal with Globe Telecom, Inc. for the installation of passive telecommunications infrastructure.

ISOC Infrastructure, Inc., chaired by Megawide cofounder Michael C. Cosiquien, and Malaysia-based edotco Group Sdn. Bhd. signed a tripartite agreement with Globe yesterday, which signals the signing of an MoA with the DICT to receive assistance in getting permits for tower rollout.

“After this, I think within this week or maybe early next week, we’ll sign an MoA with ISOC and edotco,” DICT Acting Secretary Eliseo M. Rio, Jr. said in the signing program in Taguig City.

Globe will lease the 150 shareable cell sites that will be built by the two tower providers in the provinces of Cavite, Laguna, Batangas, Rizal and Quezon (Calabarzon).

“We will be able to deploy the (capital expenditure) that are saved from building passive infrastructure to active infrastructure,” Globe President and Chief Executive Officer Ernest L. Cu said.

The Malaysia-based tower provider, which signed a memorandum of understanding with the DICT in January for assistance in getting regulatory permits, said it will be working with ISOC for its planned operations in the Philippines.

“We are committed with basically creating a company which we will jointly invest in and work together in. We are very, very pleased that we will be able to work…with ISOC. I believe we’ve found the right partner,” edotco Group Chief Executive Officer Suresh Sidhu said.

He noted the two companies are set to make announcements “within the next month or two” on the details of the joint venture.

For ISOC, Mr. Cosiquien said the company is looking forward to working with edotco.

“Definitely we’ll be the local group here, and edotco, with their international experience and extensive experience in the tower business, that’s what they’ll bring to the table,” he said.

The two tower providers said they are also in discussions with other telecommunications firms for possible agreements similar to what was signed with Globe.

Aside from ISOC and edotco, 21 other tower companies have signed an MoU with the DICT to seek assistance in securing permits for rolling out cell sites.

Once these firms sign an agreement with the telcos for a specific number of towers, they will need to sign an MoA with the DICT to solidify the government’s help.

“Our MoA will be specific on the agreement, the contract or MoUs that the tower companies will get from the telcos,” Mr. Rio said.

“Basically the MoA will say that…we will now facilitate the giving of permits with the number of sites that are contained in the MoU,” he added. — Denise A. Valdez

K-Pop label YG’s founder resigns amid drugs and sex scandals

SEOUL — Yang Hyun-suk, founder of South Korea’s YG Entertainment which manages top K-pop performers, stepped down on Friday from his duties as chief producer, in the aftermath of drug and sex scandals involving his artists.

In March, a member of YG’s boyband Big Bang quit showbiz over sex bribery accusations, prompting police investigations and the resignation of four K-pop stars including him.

Allegations subsequently surfaced of a network of pop stars, businessmen, and cops having colluded and enabled tax evasion, bribery and prostitution, exposing the dark side of the glitzy industry.

“I have waited out in patience this situation in which shameless and humiliating words are being thoughtlessly spread as if it is the truth,” Mr. Yang, a former legendary K-pop star, said in a statement.

“But I don’t think I can hold it in any longer.”

Mr. Yang said he was stepping down to avoid further damage to the firm’s artists over the accusations. These involved prostitution mediation, tax evasion, and cover-up of a drug scandal, all of which he has denied.

YG’s top shareholder, Mr. Yang, founded the K-pop management firm in 1996. His brother Yang Min-suk, the agency’s chief executive, also stepped down, according to a regulatory filing.

Last Wednesday, the leader of another one of YG’s boy bands, iKON, also exited show business over media reports that he was attempting to buy illegal drugs. He publicly apologized for his act and quit the band.

YG Entertainment is one of the top K-Pop record labels behind groups BlackPink and Big Bang, but its shares have slumped for months, hit by the scandals.

Shares of YG Entertainment closed down 5.6% on Friday, falling for a third consecutive session, while its affiliate, YG Plus, lost nearly 6%. — Reuters