Manila Water prepares contingency plan

March 7, 2019 | 12:02 am

MANILA WATER Co., Inc. said on Wednesday that it had put in place starting this month a water supply contingency plan in light of the ongoing mild El Niño that is causing below-normal rainfall.
At the same time, Metro Manila’s east zone water concessionaire called on its customers to use water “more responsibly and wisely.”
In a statement, the company said it would implement operation adjustments to better manage its water supply during the El Niño months. It said the dry spell is threatening water levels at La Mesa Dam at a time when water demand is steadily rising because of population increase and rapid economic growth.
“We encourage everyone to treat water as the valuable resource that it is by using it wisely,” said Nestor Jeric T. Sevilla, Jr., Manila Water group head for corporate strategic affairs and head for corporate communications, in a statement.
Manila Water quoted the Philippine Atmospheric, Geophysical and Astronomical Services Administration as saying that the weather phenomenon began in the last quarter of 2018, with Metro Manila potentially experiencing drought conditions from April to June 2019.
The Ayala-led listed company provided several tips on how to use water responsibly:
• Always make sure that taps/faucets are tightly closed.
• Regularly check leaks and have it repaired immediately.
• Recycle water. For example, collect water used to wash dishes and reuse for flushing the toilet.
• When doing laundry by hand, soak heavily soiled clothes first to remove dirt easily. Use a basin or wash tub with the right amount of water. Don’t let the basin overflow under a running tap.
• When doing the laundry by washing machine, wash with a full load only every other day. Use the necessary amount of detergent so that less rinsing is required.
• When bathing, use a pail and dipper instead of the shower.
• Turn off tap while washing, shaving or brushing teeth. Use a glass of water for gargling.
• Instead of using running water, fill a basin or half of the sink with water to soak, soap, and rinse dishes or to clean fruits/ vegetables.
• Do not thaw frozen food under a running tap. Bring out frozen food early enough to thaw at room temperature before cooking.
• Water plants, garden, or lawn during cool parts of the day like early in the morning or late in the afternoon.
• When washing the car, use a pail not a water hose, and a cotton rag instead of a sponge.
• Report leaks, illegal connections, defective meters and unauthorized withdrawal of water from fire hydrants to Manila Water. — Victor V. Saulon

M. Butterfly National Tour 2019 cut short

March 7, 2019 | 12:02 am

THE producers of the national tour of M. Butterfly have announced that they are cutting the tour short, with the final performances to be in Cebu from March 14-17. In an announcement e-mailed to the press, Jhett Tolentino and Frontrow Entertainment said that the cancellation of shows was “due to adverse factors related to marketing, promotions and the political climate for the forthcoming mid-year elections.” The shows that have been canceled are those in Davao (March 28–31), Manila (May 8–19) and Baguio (May 30–June 2) are canceled.

Bank of England starts euro lending facility to help cushion Brexit risks

March 7, 2019 | 12:02 am

THE BANK OF England (BoE) is launching a new liquidity facility in euros in the final few weeks before the scheduled date for Britain to leave the European Union.
The bank said Tuesday the weekly auctions from March 13 are a “prudent and precautionary step” to allow UK lenders to access euro funding. The bank already offers dollar auctions on a similar basis.
Although the prospects seem to be fading for a no-deal Brexit on March 29, the BoE’s Financial Policy Committee (FPC) said “significant market volatility” is to be expected in this scenario.
Still, the central bank reiterated that the core banking system is strong enough to continue functioning properly and wouldn’t amplify the disruption.
The FPC, which was set up after the 2008 crisis to spot risks to financial stability, said that European Union households and businesses could struggle to access some banking and market services in a no-deal withdrawal, ultimately raising the cost of doing business for banks that could ripple back to the UK.
For example, while UK and global banks have set up new entities to do business from within the European Union, they are still struggling to transfer EU clients to the new divisions, the BoE said.
Only 10% to 20% of most major firms’ European Union clients are ready to enter into trades, according to the central bank. — Bloomberg

Restaurant Row (03/07/19)

March 7, 2019 | 12:01 am

Karneval Sundays at Marriott Café

Marriott Café now offers a hearty buffet spread on Sundays which is a meat overload feast, with unlimited slabs of steak, ribs, and seafood for P2,800 nett from 11:30 a.m. to 3 p.m. For reservations call 988-9999.

A British Affair at the Marco Polo

TAKE a culinary journey of all things British as Marco Polo Ortigas Manila holds a wine dinner on March 13, in partnership with Wine Depot and Pike Estate. Executive Chef Alisdair Bletcher, who haisl from Scotland, will craft a six-course dinner with dishes paired with wines to taste. It starts with a cocktail reception with some signature canapes, then follows the actual dinner: Mushroom consommé with Scottish razor clams; traditional haggis with turnip, mashed potato, and whisky cream sauce; roast Angus beef tenderloin, creamed leaves of Brussel sprouts, roast cherry tomatoes, and morel kus. Dessert will come with Glenlivet Malt caramel pralines. The dinner will be on March 13, 6 p.m. Seats cost P3,200++. For details call 720-7720 or e-mail restaurant.mnl@marcopolohotels.com.

Mi-so Happy Salad

ASIDE from its regular salad bowls and wraps like Oh Crab Lah!, Hail Caesar, and Tuna San, SaladStop! shakes things up with seasonal offerings. This month it offers the Japanese-inspired Mi-so Happy which brings together smoked salmon, grilled tofu, edamame, pickled raddish, and beetroot hummus on a bed of red and white cabbage and crisp romaine lettuce. A lemon miso dressing tops off the mix. The Mi-so Happy is available in all SaladStop! stores: Central Square, Power Plant Mall, One Palanca, Greenhills, Glorietta 2, Ayala Tower One, Alabang Town Center, Burgos Circle, Ayala Center Cebu, Salcedo, Mall of Asia, Megamall, U.P. Town Center, and the newest SaladStop! location on the block, Robinsons Cyberscape Gamma.

Summer at Luxent Hotel

LUXENT HOTEL salutes new graduates with the “A Toast to the Graduates” buffet lunch offer. Graduates in a group of five or more can revel in their successes in the academic world with a feast for P850 per person, with a complimentary glass of sparkling wine to commemorate their achievement. This can be availed at the Garden Café, from Mondays to Saturdays throughout March. This month, snack lovers can indulge with the “Sandwich and Fries All You Can!” — hefty sandwiches with unlimited crispy fries and dip selections on all Mondays to Fridays of March, from 2:30 to 5 p.m., for P488 per person. Meanwhile, “Summer Grill at The 6^th” (photo) is running on all Fridays and Saturdays from March to May from 6 to 10 p.m. The outdoor barbeque at the poolside includes free-flowing cocktails for P600 per person. For inquiries and reservations, call 863-7777. Luxent Hotel is located at 51 Timog Avenue, Quezon City.

RBI fines 19 lenders for non-compliance on SWIFT use rules

March 7, 2019 | 12:01 am

MUMBAI — India’s central bank has fined at least 19 lenders, including top banks such as ICICI Bank and State Bank of India, for failing to comply with its guidelines on the use of global payments network SWIFT.
The Reserve Bank of India (RBI) imposed the fines over the past four days, according to stock exchange filings by the banks, though specifics of the non-compliance were not disclosed.
Four bankers whose institutions were fined said that most of the issues related either to interpretation of the RBI’s guidelines or minor technical matters.
“These are petty, procedural issues like counterparty confirmation and nothing major or structural,” said one banker who is directly aware of the matter but declined to be named because he is not authorized to speak to the media.
The penalties totalled more than 400 million rupees ($5.67 million) and ranged from 10 million rupees to 40 million rupees for each bank, the filings showed.
The Indian banking system was sent reeling early last year by a $2 billion fraud at state lender Punjab National Bank (PNB), resulting from unauthorized credit guarantees to businesses linked to billionaire jeweller Nirav Modi and his uncle Mehul Choksi via SWIFT.
“The series of fines imposed is a stern signal from RBI to banks to strengthen their internal systems and minimise fraud after the PNB fraud last year, which tarnished the image of India’s banking system,” said Mitul Budhbhatti, associate director and head of banking, financial services and insurance at CARE Ratings.
“I expect RBI to continue to be more and more vigilant and continue with such monitoring.”
After the PNB loan fraud, which prompted criticism of the RBI by the government for its lack of regulatory oversight, the central bank had sent a confidential directive to banks about how they must use the SWIFT payment system, requiring most banks to overhaul their financial systems.
Most notable among those rules was the requirement for banks to connect the SWIFT interbank messaging system with their core banking software by April 30 last year.
However, gaps in compliance were found in more than two dozen places, prompting the RBI to impose the fines.
The RBI had conducted the audits at banks 8-10 months ago and issued show-cause notices four months ago. Since the notices were issued, banks have plugged those holes, bankers said.
“After the show-cause notices were issued to us, we have addressed those minor points,” said one banker. — Reuters

Vaak’s artificial intelligence cameras can spot shoplifters even before they steal

March 7, 2019 | 12:01 am

IT’S WATCHING, and knows a crime is about to take place before it happens.
Vaak, a Japanese start-up, has developed artificial intelligence (AI) software that hunts for potential shoplifters, using footage from security cameras for fidgeting, restlessness and other potentially suspicious body language.
While AI is usually envisioned as a smart personal assistant or self-driving car, it turns out the technology is pretty good at spotting nefarious behavior. Like a scene out of the movie “Minority Report,” algorithms analyze security-camera footage and alert staff about potential thieves via a smartphone app. The goal is prevention; if the target is approached and asked if they need help, there’s a good chance the theft never happens.
Vaak made headlines last year when it helped to nab a shoplifter at a convenience store in Yokohama. Vaak had set up its software in the shop as a test case, which picked up on previously undetected shoplifting activity. The perpetrator was arrested a few days later.
“I thought then, ‘Ah, at last!’” said Vaak founder Ryo Tanaka, 30. “We took an important step closer to a society where crime can be prevented with AI.”
Shoplifting cost the global retail industry about $34 billion in lost sales in 2017 — the biggest source of shrinkage, according to a report from Tyco Retail Solutions. While that amounts to approximately 2% of revenue, it can make a huge difference in an industry known for razor-thin margins.
The opportunity is huge. Retailers are projected to invest $200 billion in new technology this year, according to Gartner Inc., as they become more open to embracing technology to meet consumer needs, as well as improve bottom lines.
“If we go into many retailers whether in the US or UK, there are very often going to be CCTV cameras or some form of cameras within the store operation,” said Thomas O’Connor, a retail analyst at Gartner. “That’s being leveraged by linking it to an analytics tool, which can then do the actual analysis in a more efficient and effective way.”
Because it involves security, retailers have asked AI-software suppliers such as Vaak and London-based Third Eye not to disclose their use of the anti-shoplifting systems. It’s safe to assume, however, that several big-name store chains in Japan have deployed the technology in some form or another. Vaak has met with or been approached by the biggest publicly traded convenience-store and drugstore chains in Japan, according to Tanaka.
Big retailers have already been adopting AI technology to help them do business. Apart from inventory management, delivery optimization and other enterprise needs, AI algorithms run customer-support chatbots on websites. Image and video analysis is also being deployed, such as Amazon.com Inc.’s Echo Look, which gives users fashion advice.
“We’re still just discovering all the market potential,” Tanaka said. “We want to keep expanding the scope of the company.”
Founded in 2017, Vaak is currently testing in a few dozen stores in the Tokyo area. The company began selling a market-ready version of its shoplifting-detection software this month, and is aiming to be in 100,000 stores across Japan in three years. It has 50 million yen ($450,000) in funding from SoftBank Group Corp.’s AI fund, and is in the middle of its series A round, seeking to raise 1 billion yen.
What makes AI-based shoplifting detection a straightforward proposition is the fact that most of the hardware — security cameras — is usually already in place.
“Essentially this is using something that’s been underutilized for decades,” said Vera Merkatz, business development manager at Third Eye. Founded in 2016, the start-up offers services similar to Vaak in the UK market, where it has a deal with a major grocery chain. Third Eye is looking to expand into Europe.
The ability to detect and analyze unusual human behavior also has other applications. Vaak is developing a video-based self-checkout system, and wants to use the videos to collect information on how consumers interact with items in the store to help shops display products more effectively. Beyond retail, Tanaka envisions using the video software in public spaces and train platforms to detect suspicious behavior or suicide jumpers. At Third Eye, Merkatz said she’s been approached by security management companies looking to leverage their AI technology.
“The potential is broad since it can be applied outside of shoplifting prevention and outside of retail — such as with manufacturing or other types of marketing,” said Hiroaki Ando, a retail consultant at Ernst & Young Advisory & Consulting Co. in Tokyo. — Bloomberg

Abacore Capital eyes joint venture with Tiengs

March 7, 2019 | 12:01 am

ABACORE CAPITAL Holdings, Inc. is ramping up its real estate investments this year, as it expects further infrastructure development in Batangas where it has a land bank of about 200 hectares.
In a statement Wednesday, Abacore Capital said it authorized management to negotiate and sign with siblings William and Wilson Tieng of Solar Group for a possible joint venture in Montemaria, Batangas City. Montemaria is a development owned by Abacore Capital’s subsidiary.
“Abacore is bullish this year considering the boom in real estate in Batangas considering the infrastructure development in the area which includes extensions of the STAR tollway, development of the international seaport, and the moving of other industries to Batangas,” the company said.
It will further sell portions of properties in Batangas spanning 146,992 square meters to Steel Asia Manufacturing Corp., at a price range of P2,500 to P3,500 per sq.m. depending on the payment terms.
Meanwhile, Abacore said its board of directors allowed its wholly owned unit Philippine Regional Investment Development Corp. to hike its authorized capital stock to P3 billion from P1 billion. The board also allowed the company to accept cash as payment for the subscription to the shares.
Abacore said it is speaking with strategic investors for the share subscription. — Arra B. Francia

How PSEi member stocks performed — March 6, 2019

March 7, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, March 6, 2019.

Philippine Stock Exchange’s most active stocks by value turnover — March 6, 2019.

K to 12 review finds declining test scores, skills mismatch

March 6, 2019 | 9:34 pm

A SENATE committee reviewing the implementation of the K to 12 curriculum has called for measures to improve the basic education system and to better match school training with the skills in demand from industry.
Senator Sherwin T. Gatchalian, vice chair of the committee on education, arts and culture, made the call after the panel evaluated the implementation of the five-year old Enhanced Basic Education Law.
Mr. Gatchalian said the quality of basic education remains low despite Republic Act No. 10533 or the Enhanced Basic Education Act of 2013, judging from the recent National Achievement Test (NAT) average scores of Grade 6 and 10 students.
During the hearing, Mr. Gatchalian said NAT scores were low during the school year 2016-2017 with Grade 6 students recording a 40% average while Grade 10 students were graded at 44.1%. The performance was slightly lower than the 41.5% and 44.7% averages, respectively, in the 2015-2016 school year.
The Department of Education (DepEd) data cited by Mr. Gatchalian also indicate a decline in the overall NAT average for Grade 6 and Grade 10 students since 2013-2014.
“What the hearing showed is that the curriculum that is supposed to be taught under K to 12… is not being taught well. The student cannot process the curriculum the right way, so we’re seeing low National Achievement Test scores. And what I’m fearing is a student cannot enter college, cannot get a decent job, and cannot have a good future because of the low NAT scores,” Mr. Gatchalian told reporters after the hearing.
“We have to review the K to 12 curriculum. We have to review if the technical-vocational skills being taught under the K to 12 are the skills that the industry needs… We have what we call a misalignment between what the industry needs and what is being taught in the K to 12,” he added.
Mr. Gatchalian also brought up the declining quality of teachers based on the recent passing rates in the Licensure Exams for Teachers (LET). According to the Professional Regulation Commission (PRC), the passing rate for Elementary teachers in the LET was at 22% in 2018, slightly higher than the 20% recorded in 2017.
The hearing also saw testimony about the hiring process for K to 12 graduates.
“It’s not (companies) are unwilling, it’s just that their systems not built to hire K to 12 graduates because many of our HR (human resources) protocols for job ads look for a minimum of two year of college or college graduates. We need to adjust HR policies,” Philippine Business for Education (PBEd) Executive Director Love B. Basillote said.
Education Assistant Secretary Alma Ruby C. Torio said the decline of NAT scores may be due to a shift in the framing of the test questions following the implementation of the K to 12 program, rendering recent test results less directly comparable to those of previous years.
“When we implemented the K to 12 program, we were saying that we would like our learners to be equipped with 21^st century skills… Just the same, we recognize that there’s still a lot of things to do… the enhancement of curriculum cannot be achieved if we don’t get the support of other offices,” she said.
Ms. Torio also said the DepEd has also participated in three international assessment surveys, such as the International Mathematics and Science Study (TIMSS) and the Programme for International Student Assessment (PISA), as part of the process of improving the basic education system.
As for the competence of teachers, Ms. Torio said the DepEd has also created a Teacher Education Council (TEC) to discuss proposed admission requirements for a teacher education program.
“We are also reviewing our curriculum guides and in the review, we invite the experts and industry… to assure them that we will be producing the right graduates they need,” she said. — Camille A. Aguinaldo

Budget faces more delays before delivery to Palace

March 6, 2019 | 9:33 pm

REPRESENTATIVE Rolando G. Andaya said the Senate has requested a delay in the printing of the 2019 Budget, which he said could set back his “March 10 or 11” timetable for transmitting the document to Malacañang, though he welcomed the opportunity to clarify which Senators backed certain amendments to the P3.757 trillion General Appropriations Bill (GAB).
Mr. Andaya, who represents the first district of Camarines Sur and chairs the House Appropriations Committee, said in a briefing Wednesday: “We are ready to print the budget. We had planned for it to be in Malacañang around March 10 or March 11, but we received word from the Senate, requesting to hold off on printing.” He added that he expects to meet with the Senate Finance Committee after the briefing to “thresh out the problems.”
“Good for us also because we also want to complete the picture. We have no idea up to this point who the proponents of the Senate amendments are. We are also in the dark about who are behind the amendments,” he said.
The budget process has been the subject of competing claims about improper last-minute fund diversions concerning the Department of Health (DoH) budget, thus modifying the version of the measure ratified by the bicameral conference committee.
Mr. Andaya said Tuesday that the delays in transmitting the GAB to Malacañang were due to a process of “itemization” for certain lump-sum amounts. During this time he also projected that the budget will reach the Palace by March 10, before the intervention of the Senate.
He said there is nothing “illegal” and “unconstitutional” about the itemization process.
Senator Panfilo M. Lacson has alleged that the delays were due to the “manipulation” of DoH funding.
“To hold the budget hostage now is not right… but by mid-year I’m sure the people will call for transparency, and we have the data with us, and we’re willing to show it once the enrolled bill has been submitted,” he said.
Mr. Andaya said the ratified GAB allocated a P15 billion lump-sum for the Health Facilities and Enhancement Program (HFEP), of which P4.5 billion is for the House of Representatives, P2 billion for the Senate and P8.5 billion for the DoH.
“There were no details whatsoever on how these funds would be distributed to the various hospitals,” he said. “It now behooves both Houses to identify where these funds are going.”
He said the itemization process is based on program identification documents provided by the DoH. The DoH menu for the HFEP includes equipment, medical mobile transport, or completion, repair or rehabilitation of health stations, rural health units, and district hospitals among others.
Outgoing Budget Secretary Benjamin E. Diokno, appointed this week to head the central bank, said the Department of Budget and Management (DBM) will not intervene in the budget process until it is transmitted to the President.
“We will intervene once we get the budget, the enrolled copy of the budget,” he said in a briefing Wednesday. “That’s why all these changes in the House and Senate — we don’t even comment on it. It only (starts with) the enrolled copy of the bill, and that’s where we go over it line by line. (Then we come up with a) statement of difference.”
Also on Wednesday, Mr. Andaya said he will leave it to the next Congress to investigate Mr. Diokno’s role in the budget process, amid allegations he intervened to supplement some regions’ funding for flood control projects.
“I think I’ve accepted the fact (that the investigation will be conducted) some other time (by) some other person, maybe in the next Congress. These things have a way of coming back,” he said.
Mr. Diokno was named the replacement to the late Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr. — Charmaine A. Tadalan

NEDA decision on IRR for rice tariff law could come this month

March 6, 2019 | 9:31 pm

THE National Economic and Development Authority (NEDA) said it expects to decide by the end of March on the Implementing Rules and Regulations (IRR) of the Rice Tariffication Act submitted by the National Food Authority (NFA) Council.
In a phone interview on Wednesday, NEDA Undersecretary Rosemarie G. Edillon said “(The IRR) should be (decided on) because the law is already being implemented)” when asked if it is possible to make a decision in March.
The NFA Council submitted an amended IRR on Monday, March 5, the first day of the rollout of the law.
Among the provisions in the draft, Agriculture Secretary Emmanuel F. Piñol said in a phone interview Wednesday are one that permit the continuous sale of rice by the NFA at prices to be determined by the NFA Council, provided that the prices are set such that the agency does not lose money.
Ms. Edillon said that NEDA has yet to review the IRR.
“We will check the reasons for the policy, (and) if it supports the bottomline objective which is to improve the rice trading regime,” Ms. Edillon added.
NEDA’s original plan was to auction NFA buffer stock as needed before the inventory ages out, and not to sell it directly in the market through retailers as per current practice.
Mr. Piñol also said that the Bureau of Plant Industry (BPI) should be staffed by personnel from the NFA as it finds itself with an enlarged role as private entities import rice and need to obtain sanitary permits.
“The law’s implementation has gone ahead but there should be some period of adjustment. The BPI should be beefed up by employees from the NFA because it cannot possibly (fulfill its) food safety function right away because it lacks the background,” Mr. Piñol said.
Ms. Edillon concurred but added there is a need to conduct an inventory of the skills of NFA employees as well as prepare for a capacity building program or retraining these personnel. — Reicelene Joy N. Ignacio

Shipping firms sign up for weekend scheme to reduce container inventory

March 6, 2019 | 9:31 pm

THE Manila International Container Port (MICP) said international shipping lines have signed on to a scheme to decongest the ports by increasing their weekend loading of empty containers for re-export, the Bureau of Customs (BoC) said in a statement.
The scheme covers users of the MICP, which is operated by International Container Terminal Services, Inc. (ICTSI) and is intended to bring yard utilization to “ideal levels” and resolve “the recurring issue on the difficulty in returning empty containers.”
It said MICP district collector Erastus Sandino B. Austria concluded the agreement with Evergreen Shipping Agency, Wan Hai Lines, CMA-CGM/APL, Ben Line Agencies, Cosco Shipping Lines, KMTC, Hyundai Merchant Marine, TMS Ship Agencies, One Network Express, Yang Ming Shipping, SITC Container Lines, OOCL and Namsung Shipping.
The shippers agreed to bring out an extra 100 to 1,800 twenty-foot equivalent unit (TEU) containers on weekends, starting March 9 and 10.
The scheme will be supported by the availability to participants of additional weekend double-tansaction slots — a feature of the port booking system that supports and incentivizes the subsequent export of imported containers.
In the statement, ICTSI was quoted as saying that few containers are returned for export, while the shipping firms undertook to persuade their clients to return more containers.
At the meeting with shippers, Mr. Austria was quoted as saying that many ships had more capacity available to take on empty containers.
“On average, far less than 2,000 empty TEUs are loaded for export in a 24-hour cycle,” Mr. Austria said. “That is an unacceptable number.”
The BoC said the scheme could raise MICP’s weekly total of empty containers loaded into outgoing ships to 17,500 TEUs from current levels of about 10,000, which it described as the “high average” level.