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Search for PLDT president, CEO continues

PLDT, Inc. Chairman Manuel V. Pangilinan said the search for a new president and chief executive officer (CEO) may take longer.

Mr. Pangilinan, who has been sitting as president and CEO of PLDT since the start of 2016, told reporters Tuesday that he is ready to relinquish the two posts as soon as he finds a worthy replacement.

Siguro [Probably] delayed a bit, realistically. You have to give some time to Al to put both his legs under the table,” he said when asked about PLDT’s timeline for finding a new president and CEO, referring to newly appointed Chief Revenue Officer Alfredo S. Panlilio.

Last week, PLDT told the stock exchange Mr. Panlilio was returning to the company to replace Ernesto “Eric” A. Alberto as chief revenue officer by July 1.

Mr. Alberto assumed the position in 2016 and led the company’s turnaround in the consumer wireless business and sustained double-digit growth in the home and enterprise units.

But Mr. Pangilinan noted his departure is not expected to impact the company’s operations significantly, as the unit heads were kept in position.

“We know Eric Alberto has really strong unit heads. Ren (Oscar Enrico A. Reyes, Jr.) for the individual and the Home, Jovy (I. Hernandez) for the Enterprise and Alex (Alejandro O. Caeg) for sales and channels. Of course we’ll miss Eric, but I think Al — who is an alumnus of PLDT, knows the organization and is digital and understands what we’re doing. I think (he) will ably fill up the position, and I think will probably bring a calming influence on the organization,” he said.

Mr. Panlilio admitted the appointment was a surprise, saying it happened “very quickly.”

“There was of course something that happened in PLDT and the change that had to (happen), a major decision that (Mr. Pangilinan) had to make so that we can continue to go after the objectives set by (him) for PLDT,” Mr. Panlilio said.

Asked what were Mr. Pangilinan’s marching orders for him, Mr. Panlilio said: “To continue to grow the business. I think that’s the main thing.”

He said he personally wants to look into the service delivery of PLDT and see how it could be improved to be more “customer centric.”

Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

First Gen wants to get more partners for LNG terminal project

By Victor V. Saulon, Sub-Editor

FIRST GEN Corp. is looking to bring in more partners for its liquefied natural gas (LNG) terminal project as it schedules to break ground by month’s end and targets to make a final investment decision by early 2020 in time for a 2024 completion date.

“We aim to finalize the financing for the project and execute the relevant key project agreements, including LNG supply and firm up our strategic partners for the project,” Francis Giles B. Puno, First Gen president and chief operating officer, told stockholders during their annual meeting on Wednesday.

“In fact, we are going to have our formal groundbreaking at the end of the month,” he added.

Mr. Puno said the existing partnership with Tokyo Gas Co., Ltd., which was forged in December last year, will proceed with the project ahead of a final investment decision (FID).

“We anticipate that we’ll bring in more partners, but in the meantime between ourselves and Tokyo Gas, we want to proceed already. So the formal FID will entail a bigger, hopefully a complete group of owners,” he told reporters, adding that a new investor could be a Filipino entity.

He said the LNG terminal could be completed in four years, and that the existing partners do not intend to underwrite the $1-billion project cost.

“In our case, probably right now we have 80%, Tokyo Gas has 20%. We don’t intend to own the whole 80%, so it can go down to 50%, 51%, so that’s the flexibility,” he said.

Jonathan C. Russel, First Gen executive vice-president and chief commercial officer, said a number of nationalities had expressed “a great deal of interest” in the project. He said the partnership talks include those with potential fuel suppliers.

“I can’t give you any names, but we are in advanced discussions with a number of entities, so it’s possible that in the near future, we’ll announce additional partners that are coming in,” he said. “Within the next few months, we may have additional announcements.”

“We can accommodate more than one partner. It’s just a question of trying to choose partners that add the most value and also will be easy for us to work as a group, good chemistry and a strong combination,” Mr. Russel said.

In the meantime, First Gen is setting aside up to $250 million for this year’s capital expenditure, most of which will be used by subsidiary Energy Development Corp. (EDC).

“For consolidated [capex], it’s about $220 to $230 [million], bulk of that will be with EDC, it’s about $150 [million], then the rest would be with gas,” Emmanuel P. Singson, First Gen Corp. senior vice-president and chief financial officer, said.

However, EDC President and Chief Operating Officer Richard B. Tantoco said the consolidated amount could reach $250 million to include additional budget for a geothermal-related project.

“Some of it will be for projects, and then some of it will be for things that we’ll do in the power plant like cooling tower upgrades,” he said. “So it’s investments that will optimize the assets’ flexibility.”

Last year, the group’s consolidated capex was $100 million, Mr. Singson said.

On Wednesday, shares in First Gen slipped by 5.88% to close at P20 each.

Introducing Itogon coffee to the world

MICHAEL Harris Conlin, the 2019 Philippine National Barista Champion, has done his country proud. Mr. Conlin was able to place in the semifinals of the World Barista Championship (WBC) in Boston, USA, and finished 15th out of 50 candidates from all over the world. More than his show of technical ability, he was also able to showcase Filipino coffee, showing in a cup the hard work of farmers in Itogon, Benguet.

His attachment to Itogon comes from an advocacy. Last year, a typhoon ravaged Benguet, and as part of his work for his company’s foundation, the Foundation for Sustainable Coffee Excellence, they donated water and food to farmers in the region, not knowing that they grew coffee there.

“Itogon’s elevation is not as high as other places,” he recalled during an interview with BusinessWorld on May 3 in the Institute for Coffee Excellence. The educational facility is part of Mr. Conlin’s company, Henry & Sons, which roasts coffee for retail and for industry purposes. Another component of Henry & Sons is The Giving Café, their retail outlet.

“What’s nice about Itogon is most of the coffee that grows there are wildlings… that means these coffees have already adapted to the terroir.”

In the coffee business since 2001, he has seen all aspects of the coffee industry, from the growing of the beans to the final products made under the expert eye of a barista. “This journey has inspired me to create a space to nurture the baristas and our Filipino coffee farmers,” he was quoted as saying in a press release. That space is the Institute of Coffee Excellence which works with both farmers and baristas. “The transformation of a community begins with education,” he was quoted as saying. “In the case of our coffee community, I believe we would have to start by empowering our farmers and baristas with the knowledge, values, and passion to work towards a beautiful coffee future.”

For his competition entry to the WBC last April, Mr. Conlins presented locally sourced honey and strawberries from Benguet, lactic acid from coconut meat infused with sampaguita aroma, and cold brew coffee from Itogon. The concoction, he said, tasted like rootbeer; one of his favorites. “For me, I wanted to turn ordinary items into something extraordinary, I think that’s what really made an impact on the judges,” he told BusinessWorld.

“I feel pretty good,” he said about placing 15th. “I was happy with it. I had fun. I think that’s the most important thing — I was able to deliver our message and our dream on the world stage, I’m a fan. That’s the thing.” He recalled crying on stage, and someone interviewing him tried to console him, but he told that person that his tears were of joy.

As for how the win spells changes in the coffee community in the Philippines, he notes: “People are more mindful and nationalistic… they’re going to museums again.”

Mr. Conlins gave this interview while wearing a Barong Tagalog bought off the rack, and wearing a lapel pin depicting the Philippine flag.

“They’re loving local products again. I really feel that in the next five to 10 years, the world will have their eyes on us.” — JLG

Apple said to prep upgrades for iPhone apps, Watch, health data

APPLE INC. is planning to unleash a slew of new apps, features and development tools at its annual software conference next month. To improve its devices and strengthen its connection to customers, the consumer technology giant will continue to walk a fine line between wooing outside app makers while also competing against them.

The Worldwide Developers Conference, or WWDC, starts June 3. The company will reveal updates to the operating systems that run the iPhone, iPad, Mac, Apple Watch, and Apple TV. Highlights include upgrades to core iPhone apps such as Maps, Reminders and Messages; new apps for the Apple Watch that make it more independent from the iPhone, and enhancements to the health tracking capabilities of Apple devices, according to people familiar with the plans.

Since launching the iPhone in 2007, Apple has pursued an aggressive approach to refreshing its mobile operating systems each year. The fast pace is taxing on Apple engineers, but the results have been impressive. The company’s products are often unique and more capable than those of rivals because Apple’s home-grown software works so well with the hardware. The new updates also give users access to the latest services like Apple Music and the upcoming TV+ video-streaming subscription, which give Apple a recurring revenue stream.

It’s a delicate balance. Part of the allure of iPhones and iPads also comes from all the different apps made by independent developers. The company provides new tools for these partners, but it is increasingly building its own versions of popular apps, too. That helps differentiate its devices from rivals but sometimes upsets third-party developers. Spotify Technology SA and other app makers have complained to European antitrust regulators that Apple’s own software and services give it an unfair advantage on the App Store. US presidential candidate Elizabeth Warren has proposed splitting the App Store from the rest of the company, although few other policy makers have supported the idea.

“Developers, from first-time engineers to larger companies, can rest assured that everyone is playing by the same set of rules,” Apple said in a recent statement rebutting Spotify’s complaint. “That’s how it should be. We want more app businesses to thrive — including the ones that compete with some aspect of our business, because they drive us to be better.”

New features coming to the Apple Watch illustrate the balance that the company must strike. Apple plans to add the App Store directly to the Watch so users can download apps on the go. This could open up huge new opportunities for outside developers, boosting app installations. But Apple has its own new Watch apps in the works, too. There will be new health applications, a Calculator and a Books app for listening to audio books from your wrist, the people familiar with the plans said.

So far, Apple has managed to make the strategy work. The App Store drove $46.6 billion in spending last year, almost double the amount spent on Google’s Android equivalent, according to Sensor Tower estimates. That’s wooed more than 20 million developers who have created over 2 million apps for Apple’s platform. At the same time, there are 1.4 billion active Apple devices in use, and 92 percent of iPhones and iPads run the latest operating system, or the version before that. The App Store and other digital services are on course to generate more than $50 billion in annual revenue soon.

Here are the software features Apple is planning to announce at WWDC 2019, according to people familiar with the plans. They asked not to be identified discussing unreleased product details. Apple’s plans are fluid and could change between now and the event, people familiar with Apple’s development process said. The company could also choose to push back some features until next year, like was done last year, they added. An Apple spokesman declined to comment.

The biggest change coming to the Mac this year is the ability for iPad apps to run on laptops and desktops, as Bloomberg News previously reported.

For the first time, Apple will allow developers who write iPad apps to re-work their apps so the software can also run on the Mac. This will be useful for developers who are looking to simplify their development process, but it will also brighten the macOS app ecosystem with several new applications. Developers will still need to submit separate versions of the app to Apple’s iOS and Mac App Stores, but the new software development kit will mean they don’t have to write the underlying code twice.

Beyond this year’s conference, Apple is planning to expand the feature so iPhone apps can run on the Mac by next year. The year after that, the company aims to merge iPhone, iPad, and Mac applications into single downloads that can run on any Apple device. Eventually, it could also merge the App Stores.

While the developer conference is software-focused, the company often sprinkles new hardware announcements in at the event. For this year, Apple has been considering debuting a revamped Mac Pro desktop computer. It’s also readying a new external monitor, code named J290, with high-dynamic-range support so colors look much better. — Bloomberg

Demand for term deposits rises

BSP
DEMAND for the central bank’s term deposits climbed on Wednesday.

BANKS’ APPETITE for term deposits increased this week to push yields lower as the central bank placed a higher volume on the auction block ahead of its monetary policy review.

The Bangko Sentral ng Pilipinas (BSP) on Wednesday received P38.540 billion in tenders under its term deposit facility (TDF), more than filling the P30 billion up for auction and recovering from the previous week’s demand worth P29.644 billion.

Tenors for the week were back to the usual seven and 14 days following last week’s offering of only six-day and 13-day papers due to a holiday. As with last week’s auction, it also didn’t offer the month-long tenor yesterday.

Demand for the one-week term deposits offer hit P20.53 billion, slightly higher than the P20 billion on the auction block. This week’s bids also outpaced the P14.13 billion in tenders seen last week, although the central bank offered just P10-billion worth of the six-day deposits at the May 2 auction.

Accepted yields settled between 4.55% and 4.76% from the range of 4.63%-4.76% seen last week. This resulted in an average rate of 4.6925% for the seven-day papers, lower than the 4.7198% yield for the six-day term deposits auctioned last week.

Tenders for the two-week papers likewise increased to P18.01 billion yesterday, almost double the P10 billion on offer, from the P15.52 billion in bids seen for the 13-day term deposits last week.

Returns sought by banks for parking their funds with the BSP decreased slightly to 4.6%-4.76% on Wednesday from last week’s 4.67%-4.78%. The average yield on the 14-day tenor settled at 4.6961%, a decline from last week’s 4.7524%.

The TDF stands as the central bank’s primary tool to shore up excess funds in the financial system and to better guide market interest rates. Through the weekly auctions, the BSP wants to bring loan and interbank rates within their desired 4.25-5.25% range.

The central bank is reviewing policy settings anew today. At its March meeting, the Monetary Board voted to keep key interest rates steady, citing the need to stay cautious despite easing inflation.

The Philippine Statistics Authority reported on Tuesday that headline inflation slowed to a 16-month low of 3% in April from 3.3% in March and 4.5% a year ago — causing more analysts to predict a cut in key interest rates by the BSP sooner rather than later.

Following the release of the latest inflation data, BSP Governor Benjamin E. Diokno said on Tuesday that the BSP will keep watch of price risks as its Monetary Board conducts its third policy review for the year on Thursday.

The central bank governor earlier said that the BSP will continue to be data-driven in its decision-making amid mounting expectations of monetary policy easing.

Ayala to spend P2B for cancer hospital

AYALA Healthcare Holdings, Inc. (AC Health) plans to build a specialty hospital in Metro Manila dedicated to cancer worth about P2 billion, in a bid to support the public sector’s efforts to improve cancer care in the country.

In a statement issued Wednesday, AC Health said the standalone Cancer Hospital will be a fully integrated facility with 100 beds.

The specialized center will have diagnostic equipment including a positron emission tomography (PET) scan, chemotherapy facilities, linear accelerators for advanced radiation therapy, and operating rooms for the specialist surgeons.

A company representative said AC Health has yet to finalize the exact location for the facility as it is still talking with several property owners.

AC Health President and Chief Executive Officer Paolo Maximo F. Borromeo said the company is working with “the most respected names” in the oncology field for the hospital, which aims to provide high quality cancer care services at more affordable prices.

“I think having a specialized cancer hospital in the Philippines is long overdue, and our goal is to redefine cancer care by serving a broader segment of Filipinos, while providing quality of care that matches global standards,” Mr. Borromeo said in a statement.

Ayala Corp. President and Chief Operating Officer Fernando Zobel de Ayala said the Cancer Hospital will seek to address the prevailing gaps in screening, diagnosis, and cancer treatment in the country.

“Cancer is now the third leading cause of death in the Philippines and unfortunately, we struggle with poor outcomes. A key pillar of our advocacy is screening and early detection so that we can diagnose patients earlier, and provide them with more affordable high-quality cancer care,” said Mr. Zobel, who also sits as the chairman of AC Health.

AC Health’s plan to develop the Cancer Hospital follows the passage of the Republic Act No. 11215, otherwise known as the National Integrated Cancer Control Act, last February. The law outlines the National Integrated Cancer Control Program, which should serve as the framework for all cancer-related activities of the government.

The company also looks to complement Cancer Hospital’s operations by offering cancer screening services to identify early cases at FamilyDoc, its chain of community-based primary care clinics.

AC Health looks to end the year with more than 80 FamilyDoc clinics, after ending 2018 with more than 50 clinics. This is in line with the company’s target of having 100 FamilyDoc clinics and 1,000 Generika drugstores by 2020.

Aside from physical facilities, the company is also in the health care space through mobile health app Aide, which allows patients to book doctors, nurses, and other medical professionals to provide health care services at home. It also has investments in online pharmacy MedGrocer. — Arra B. Francia

The Dresser as master class for actors

By Sujata S. Mukhi

Theater Review
The Dresser
Directed by Loy Arcenas
Presented by Repertory Philippines
Fridays to Sundays until May 26
Onstage Theatre, Greenbelt 1
Paseo de Roxas St., Makati City

WE WERE talking with a balikbayan friend about an upcoming musical, and she assumed it was by a foreign touring company. I said that it was a local theater group that was producing it. “Are they any good?” she casually asked. “The local groups?”

“Be still my pounding heart” I thought as I was hard-pressed to give a civil answer to what I believed was an impertinent question. In a more rational moment I realized that it was just an ignorant one.

That musical is yet to happen. But I wish I could put Repertory Philippines’ The Dresser on a platter, present it to my friend with fiery flourish and say, “Behold this. It is good. It is all good.”

The moment Norman the Dresser (Audie Gemora) engages in the opening dialogue with her Ladyship (Missy Maramara), you realize that you are attending a Master Class for Actors, by Actors who have been spun, molded, and fired by their own theatrical experiences. They stand on that stage, owning it. It is sheer joy as an audience member to succumb to the whole of a play that is much, much greater than the sum of any one part of this very tight ensemble.

The Dresser is a veiled biography of playwright Ronald Harwood’s own experience as a dresser to renowned Shakespearean actor Sir Donald Wolfit. It is a homage to the grit and grace required to put together the nuts and bolts to do theater, the behind-the-scenes of the mise-en-scène, the breakdowns before the breakthroughs of a compelling performance.

The core of the play is the relationship between Sir (Teroy Guzman), a fading star running a now bedraggled theater company, and Norman, who has been Sir’s valet-servant-assistant-man Friday for decades. The company revolves around Sir’s tyranny. More so Norman whose entire life pivots around servicing Sir. He knows Sir’s habits, moods, quirks, and follies, and waits for morsels of acknowledgment and appreciation from his Master.

The play opens to a frantic dressing room scene as Norman and Sir’s co-actor and nameless partner, known in the play only as her Ladyship, have to decide whether to push through with their touring company’s production of King Lear that evening. Sir, essaying the titular role, is indisposed and in hospital, having had an anxiety attack earlier that morning. It’s an hour before the house opens in wartime London in the early 1940s. Norman insists that they continue, as the company has never ever canceled a show in the past.

Sir discharges himself against doctor’s orders and appears in his dressing room declaring that there will be a performance that night, much to the consternation of her Ladyship, and stage manager Madge (Tami Monsod). Sir prepares for the performance, but in between bouts of memory distortion and amnesia, he puts on blackface for Othello, cannot remember the first line of King Lear, then spouts a mash-up of the most famous Shakespearean monologues. Norman gives him moral support, regaling him with lighthearted stories to get Sir out of his dark mood and to focus on the performance at hand.

So amidst air raid alarms, panic attacks, undermanned production staff, uncharacteristic stage fright, a tipple or two, muddled lines, a distractingly flirtatious fan girl, and one of the most scathing digs at theater critics, the show does go on. After a hilarious struggle to get Sir onstage, with — horrors! — Shakespeare’s dialogue improvised to cover a late entrance cue, Sir struts onward and forward as King Lear, reprising the role for the 227th time in his career.

We don’t actually see the King Lear production. But we do see the goings-on backstage as Norman shakes aluminum sheets to recreate the sound of thunder, Madge gives cues for the next bit of action, Oxenby (Jeremy Domingo) makes the wind machine blow while ingénue Irene (Justine Narciso) beats the drums of war. Her Ladyship plays Cordelia and Geoffrey (Jaime del Mundo) plays King Lear’s fool.

That backstage scene is excellently executed, with blinking lights, sound cues and stage business running like clockwork. You have to remind yourself that these are actors onstage roleplaying stage hands.

It’s the tautness and economy of delivery that rivets. Mr. Gemora inhabits Norman like a second skin, alternately shrewd and loving, resentful and attentive. His lashing out towards the end when he realizes that he is excluded from Sir’s circle of appreciation is utterly sad. Mr. Gemora plays the role with an effeminacy that may stereotypically suggest that he was gay and in love with Sir. But I find that actually quite irrelevant. Do we all not know of that caregiver or son or daughter or spouse or assistant that is left untethered when the one they have served for most of their life is gone? That was more the sense I got from his interpretation, rather than as a man in love with his master.

Mr. Guzman is a larger-than-life actor, I always look forward to watching him onstage. Sir is a man in love with himself, and is also full of doubt and recrimination. Mr. Guzman navigates Sir’s demons with an exhausted frustration.

There is an exquisite scene between her Ladyship and Sir when she accuses him of putting his ambition first to gain Knighthood over his marriage to her. Ms. Maramara, a prolific actor that has surprisingly just debuted on this Rep stage, keeps a controlled fury. Maintaining a foreign accent is not easy, but it is easy to overlook this as she brings such dynamism to her Ladyship’s relationship with Sir.

The one with the most unconditional love for Sir is Madge, played with a steady intensity that can be expected from any performance from Ms. Monsod. She is all business at first, very similar to her role as the Nurse in the first half of The Vibrator Play. But in a critical scene with Sir that involves the wrong kind of ring, the pain and hurt she emits is actually even more palpable than that of Norman’s betrayal and isolation.

But it’s Jaime del Mundo’s role as Geoffrey that struck me more than I thought it would, given that it was secondary. He first enters Sir’s dressing room in the Fool’s costume and unrecognizable makeup, barely uttering “Yes” and “No” in a low, muffled tone with deadpan expression. Whether Mr. Del Mundo intended to or not, he steals the scene because he is so so funny. When Geoffrey confesses to Sir in a later scene his secret ambition to take on bigger roles, Mr. Del Mundo’s entire demeanor, of hesitant revelation of his desire, to looking for Sir’s affirmation, is spot on.

In the after-show Q&A, director Loy Arcenas, fresh from his award-winning film Larawan, shared that he opted for a more collaborative way of working with his actors. He set it up so the characterizations would organically emerge and he had several readings of the script before actual staging. That has paid off handsomely. Set Designer Ed Lacson, Jr. pulls off a richly detailed dressing room where all of Sir’s key interactions take place. What is a dresser after all without a real dressing room. The sound design and period costumes squarely set the play in wartime England.

The Dresser as a play is text heavy, and as layered as ambivalent relationships are. This production deserved the treatment it got: with some of the best actors in Philippine theater who, to paraphrase Sir, will live on in the memory of many many others. But wait, not yet. May there be many many more roles for them to come before they get relegated to memory!

Tickets to The Dresser are available through TicketWorld (891-9999, www.ticketworld.com.ph) and at the gate.

Western allies agree on 5G security guidelines

PRAGUE — Global security officials agreed a set of proposals on Friday for future 5G networks, highlighting concerns about equipment supplied by vendors that might be subject to state influence.

No suppliers were named, but the United States has been pressing allies to limit the role of Chinese telecom equipment makers such as Huawei Technologies over concerns their gear could be used by Beijing for spying. Huawei denies this.

“The overall risk of influence on a supplier by a third country should be taken into account,” participants at the conference in the Czech capital said in a non-binding statement released on the last day of the two-day gathering.

Representatives from 30 European Union, NATO and countries such as the United States, Germany, Japan and Australia attended the meeting to hash out an outline of practices that could form a coordinated approach to shared security and policy measures.

Diplomatic sources said participating countries were not ready to sign any documents in Prague because they had not concluded debates about the issue at home but called for participants to seize on the momentum moving forward.

“This would be a pity if this turns out to be a one-off event,” Japan’s ambassador for cyber policy Masato Ohtaka said.

Neither China nor Huawei were invited to the event, although participants said no country or company was being singled out.

Some western countries’ concerns about Huawei center on China’s 2017 National Intelligence Law, stating that Chinese “organizations and citizens shall, in accordance with the law, support, cooperate with, and collaborate in national intelligence work.”

EU members have until the end of June to assess cybersecurity risks related to 5G, leading to a bloc-wide assessment by Oct. 1. Using this, EU countries would then have to agree measures to mitigate risks by the end of the year.

Huawei said it was ready to work with regulators and other stakeholders on creating effective rules.

“We are encouraged by the emphasis on the importance of research and development, open markets and competition, but would urge policymakers to avoid measures that would increase bureaucracy and costs and limit the benefit that 5G can bring,” it said in a statement.

“As the EU continues its deliberations, we firmly believe that any future security principles should be based on verifiable facts and technical data.”

The final document looked at the impact of 5G on policy, technology, economy and security, with general recommendations on how best to mitigate potential risks.

“All stakeholders including industry should work together to promote security and resilience of national critical infrastructure networks, systems and connected devices,” the document said.

The security issue is crucial because of 5G’s leading role in internet-connected products ranging from self-driving cars and smart cities to augmented reality and artificial intelligence. If underlying technology is vulnerable, it could allow hackers to exploit such products to spy or disrupt them.

Europe — where Austria, Belgium, Czech Republic, France, Germany, Greece, Hungary, Ireland, the Netherlands, Lithuania and Portugal are preparing to auction 5G licenses this year — has emerged as a battleground over Huawei’s next-generation technology. — Reuters

RCBC books higher net income in 1st quarter on core business growth

RIZAL COMMERCIAL Banking Corp. (RCBC) posted higher net income in the first quarter on the back of sustained core business growth.

In a disclosure to the local bourse on Wednesday, the Yuchengco-led lender said it booked P1.3 billion in net earnings in the first three months of the year, 15% higher than P1.1 billion tallied in the same period last year.

Net interest income grew 10% year-on-year to P5.3 billion in the January-March period, driven mainly by the loan portfolio of key select markets.

Consumer lending, which include mortgage loans, car loans and credit cards, increased 12% to P106.9 billion from a year ago.

Loans to small and medium enterprises (SME) stood at P53.8 billion, up 12% year-on-year, while the SME lending book of RCBC’s subsidiary Rizal MicroBank grew 20% to P1 billion.

Gross outstanding credit card receivables rose 31% to P22.3 billion.

On the funding side, total deposits stood at P416 billion as of end-March, P21.4 billion higher year-on-year. RCBC’s current and savings accounts reached P229.2 billion in the quarter versus the P220 billion booked in the same period last year.

Meanwhile, non-interest income for the first quarter surged 71% to P2.9 billion, bolstered by robust treasury-related and fee-based income.

Last quarter, the lender booked P1.4 billion in trading and foreign exchange gains and P1.1 billion in fee-based profits, which includes both credit and debit card-related fees, trust fees, and fees on investment banking and loans.

Total operating expenses were at P5.2 billion, up 13% year-on-year, driven by significant growth in volume of business as gross revenues jumped 26% from a year ago.

Overall, total assets expanded by 14% to P664.7 billion year-on-year.

“We have continued to build on balance sheet strength, with assets of P665 billion supported by P83 billion of capital, as we focus on growing our core business,” RCBC President and Chief Executive Officer Gil A. Buenaventura was quoted as saying in the statement.

He added that the merger of RCBC Savings Bank with the parent lender is underway and is planned to commence in the second half of the year.

In February, RCBC issued P15 billion worth of peso-denominated green bonds to be used to support local environmental and climate projects. The 1.5-year bonds carry a coupon of 6.7315% to be paid quarterly until 2020.

RCBC shares closed unchanged at P26 each on Wednesday. — Karl Angelo N. Vidal

Construction cost in Manila remains inexpensive — global index

THE cost of construction in Manila remains relatively inexpensive, according to a global index of construction costs by consultancy firm Arcadis.

The Arcadis International Construction Costs Comparison 2019 report ranked Manila 82nd out of 100 cities in terms of building costs in 2019.

05.09.19 Building

In Asia, the Philippines ranked 6th, after Hong Kong, Macau, Tokyo, Singapore and Seoul.

The study evaluated 100 cities across Americas, Asia, Australia Pacific, Europe and Middle East during the first quarter of 2019, covering 20 building types.

According to Arcadis, the top five most expensive cities to build are New York, San Francisco, Hong Kong, Copenhagen and Geneva, while the five least expensive cities for construction were Bengaluru, New Delhi, Mumbai, Kuala Lumpur and Ho Chi Minh.

“Philippine GDP (gross domestic product) grew over 6% in 2018, maintaining its position as one of the fastest growing economies in Asia with significant growth in the construction sector, particularly in infrastructure, residential and commercial. The growth in tourism had led to more commercial and institution construction and put increased pressure on Manila’s infrastructure,” Arcadis said in a statement Wednesday.

Arcadis noted that the inexpensive cost of construction goes hand-in-hand with the Philippine government’s aggressive infrastructure program.

“We expect the construction market to remain strong in 2019 and 2020 due to ongoing government and private investments in major projects. The government’s commitment to decongest Metro Manila and provide accessible travel to Manila and Clark International Airport is expected to create more jobs and spur economic growth in the city and across other parts of the country,” Ross McKenzie, country head of Arcadis Philippines, said in the statement. —Denise A. Valdez

How to enjoy Australian grapes

AUSTRALIAN grapes are versatile, the perfect anytime snack or addition to a sweet or savory recipe for a refreshing twist. Some ways to enjoy them are:

• Cut grapes in half, freeze, and use instead of ice as a natural way to chill and sweeten drinks;

• Match fresh grapes with specialty cheese, especially soft cheeses such as brie or camembert to create an impressive and well balanced platter for family and friends; and,

• Dip grapes in melted dark chocolate for a satisfying sweet treat.

Here are some tips on how to choose and store fresh grades:

• When buying grapes, reach for firm, plump clusters that are securely attached to green stems;

• Look for a silvery coating on grapes. This is the natural bloom (not dust) that protects the fruit and is an indicator of freshness ;

• Store grapes in an airtight container in the crisper draw of your refrigerator for up to two weeks

• Rinse grapes before eating and serve slightly chilled to enhance grapes natural crispness.

Top tip: Australian grapes have a thin and crisp skin so there is no need to peel the fruit.

Check out recipes using Australian grapes at http://www.australiangrapes.com.au/category/recipes/

IBM-backed project creates Wi-Fi network for natural disasters

FROM a cramped living room in Brooklyn, New York, a handful of young computer nerds has developed a new way to use technology to help save lives in natural disasters.

They have designed tiny electronic nodes inside baseball-sized rubber casings that create a special Wi-Fi network spanning more than 100 square miles that can be used to connect victims and first responders. It’s a simple and relatively cheap concept, but during a natural disaster when cell towers topple, technology fails and entire communities fall into darkness — communication can be the difference between life and death.

The five young men met competing against each other at computer hackathons. They joined together to compete in a contest sponsored by International Business Machines Corp. last year called Call for Code, which asked developers to use cloud, artificial intelligence and other technologies to amplify preparedness for natural disasters. Their entry, Project Owl, which stands for Organization, Whereabouts, and Logistics, uses a “clusterduck” network made of hubs that resemble rubber ducks, which can float in flooded areas. Once deployed, civilians are able to get on their cellphone to connect with first responders. Emergency workers are also able to learn about weather and get information data analytics through the cloud.

The team won the competition, beating more than 2,500 global entries, for a $200,000 grand prize. In March, they joined representatives from IBM to deploy the devices, known as DuckLinks, across five regions in Puerto Rico that were devastated by Hurricane Maria in 2017.

“In the worst disasters, chaos and misinformation are pervasive,” said Bryan Knouse, 28, chief executive officer and co-founder of Project Owl. “With better information and better analytics, you can get the resources you need to the places that need it most.” Other members of the team include Charlie Evans, 32, Nick Feuer, 25, Taraqur Rahman, 27, and Magus Pereira, 23.

During the two-week pilot program, Project Owl attached DuckLinks with Velcro to trees in the jungle, perched them atop of sand dunes on beaches, stuck them on car doors and cliff faces and even floated them above buildings in helium balloons. Project Owl managed to create a live internet network across one square mile using 23 DuckLinks, communicating via the system in areas without cell reception.

Once the devices are connected, an emergency Wi-Fi network appears on smartphones directing users to a portal where they can send messages to first responders and civil defense teams. The glue of the network is the Papa Duck, which is a cloud software service connected to all the DuckLinks. The Papa Duck offers a bird’s-eye view of the number of civilians accessing the emergency portal and what they urgently need.

Project Owl hopes to have enough tests done to make their network ready in a small capacity for hurricane season on the US East Coast, which begins in July. Every second seems to count.

Since 2000, more than 2.5 billion people have been directly affected by a natural disaster, with the economic impact in the trillions of dollars. Combined, 2017 and 2018 were the costliest years for weather-related disasters on record, with total losses of $653 billion, according to a recent analysis from UK insurance company Aon Plc.

“My hope is that we are able to set up internet networks quickly at a low cost and that they work,” Knouse said. “It doesn’t have to be fancy, crazy military technology; part of what makes a solution profound is being simple and creative.”

Greg Hauser, a communications branch manager for North Carolina Emergency Management, was responsible for getting the major networks back up and running after Hurricane Florence battered the Carolinas last September, killing 53 people and cutting power to almost two million. In order to restore connection, wireless carriers shifted portable towers into the counties that lost service. But in some cases this process took as long as 20 hours — leaving emergency responders offline and in the dark during the most critical rescue period.

“If Project Owl could generate some type of network connectivity and generate it out of equipment they drop from the sky — that would be a game-changer for us,” Hauser said.

The Weather Company, owned by IBM, predicts seven hurricanes will strike in 2019, with the potential for three to be major events. While the Project Owl pilot program proved the system could work, the team knows it has a long way to go.

Project Owl is still very much in the traditional start-up phase, Knouse said. The company’s headquarters are currently in his living room in Brooklyn, with a bench to solder the DuckLinks together set up beside the couch. “Calling it a living room would be embellishing the truth,” Knouse said. “It’s really a factory floor.”

They hope to one day connect an area up to 100 square miles or more, but for now are aiming for 10 square miles. The next deployment is planned later this month, with DuckLinks being velcroed to trees in a national park in Houston. — Bloomberg