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Building devoted to co-working space opens in Makati

INTERNATIONAL Workplace Group (IWG) recently opened Spaces in Arnaiz Makati, which it described as the country’s first co-working space that occupies an entire building.
“About this location, obviously we got a whole building. It’s very unique to get a whole building. To be at the ground floor gives visibility and accessibility. This is the essence of what co-working should look like,” Lars Wittig, Spaces country manager for Philippines, Vietnam, and Cambodia, told reporters during the launch on Feb. 20.
Located along Antonio Arnaiz Avenue, the Spaces hub has five floors, including a roof deck and underground parking area.
Each level has 450 square meters of floor area. On the first floor, there is a community area with desks for about 35 people, a phone booth, meeting rooms and an in-house cafe, Little Flour.
The second and third floors both have private offices that can accommodate two to more than 30 people, depending on the size and setup of the room. The fourth floor is targeted to be occupied by only one company. Each floor has its own pantry.
The Scandinavian design-inspired hub is also close to malls, restaurants, hotels and other offices in the Makati central business district.
“It is the second (Spaces) location here… This one, like our first one, is meeting all my criteria… What are critical when choosing a location for a major co-working hub? To me, ground zero for major co-working is that it is very close to shopping, to restaurants, to hotels,” Mr. Wittig said.
“It has to be a place where people love to walk even on a Sunday… it has to be an area that attracts people,” he added.
Mr. Wittig said Spaces Arnaiz Makati is currently 34% occupied after a month of operation.
“That’s the essence here. You come in and join the community… We do not only attract millennials, we do not attract only start-ups. We have that perfect balance because you want to have a community that can learn from each other. You want to increase your productivity with exposure,” he said.
Mr. Wittig said the company is open to expanding Spaces outside of Metro Manila, depending on demand.
“Right now, my… mandate is to meet the demand of the markets, and that demand for flexible workspace coming to us is growing with close to 40%… in the Philippines. Globally and in the Philippines this industry is growing with about 30%,” he said.
“I would say for now I’m really looking forward to open the first in… Cebu, Davao. I’m looking forward to that.”
Founded in 2006 in Amsterdam, its parent company IWG also operates Regus, No18, OpenOffice, Basepoint Business Centers, and Signature. — Vincent Mariel P. Galang

Chinese petrochemical player eyes plant in Davao

A “VERY BIG” Chinese petrochemical player is looking at putting up a petrochemical plant in Davao, according to top official at the Board of Investments (BoI).
“Pag pumasok itong petrochemical (If this petrochemical player will come in), they may bring in $1 billion,” BoI Governor Napoleon E. Concepcion told reporters last week in Makati City, noting the figure is his own estimate as the firm has yet to present a masterplan.
“The need for fuel sa kanilang (from their) perspective ay lumalaki (is getting bigger). So what they intend to do is bring in a huge Panamax to bring in crude oil and coal for their power plants,” he added.
While he did not name the company, Mr. Concepcion said it is “very big,” being the sixth biggest player in the petrochemicals industry in China.
He said representatives from the Chinese firm first visited the Philippines last year and has been in close contact with him following their second visit this year.
Mr. Concepcion said the company is initially seeking 300 hectares for its operations which can extend to over 2,000 hectares if it becomes successful.
However, the biggest problem is finding such a big parcel of land, most are in small parcels due to the Comprehensive Agrarian Reform Program (CARP).
“One of the biggest problems other investors have is nag-land reform tayo so the land areas, the land holdings are 1.5 to 2 hectares. So the Chinese when they look for 1,000 hectares, they’ll have to talk to 900 people. ’Yun ’yung complaint ng consul general of China sa Davao,” Mr. Concepcion said.
“It’s very difficult to improve efficiency of production, even agriculturally, unless you consolidate,” he added.
CARP mandated the redistribution of public and private agricultural lands to landless farmers and farmworkers, irrespective of tenurial arrangement.
The purpose was to have an equitable land ownership with agrarian reform beneficiaries given the chance to manage the development of their own lands.
Mr. Concepcion said the governor of the province, which is the location being eyed by the Chinese firm, expressed willingness to take on the “sweet problem” by fast-tracking the consolidation of the lands.
With the initial plan, the Chinese company can generate 3,000 jobs, Mr. Concepcion estimated.
However, Mr. Concepcion is managing expectations, as some Chinese investments did not materialize in the past.
“We’re tying to slow down because we’ve seen a lot of enthusiastic Chinese businessmen. But actually they’re speculators. They want to come and then negotiate, make feasibility plan, invite others from China to partner with, parang nag-broker lang,” he added, noting government seeks “real engagement.”
The BoI is eyeing investment pledges this year to hit the trillion mark after 2018 registered a record high at P907 billion.
Projects to drive this year’s growth are seen coming from manufacturing, infrastructure, transport and utilities. — Janina C. Lim

The blossoming of Baguio


NATURE takes away, and nature gives. July 16 awakens painful memories for many, as it was the day of the great 1990 Luzon Earthquake. With its epicenter near Nueva Ecija, it shook most of the island of Luzon, but particularly the Cordillera Region, the nest of summer playground Baguio City. Around 20 buildings in the city were leveled by the 7.7 magnitude quake, including the grand Hyatt Terraces Hotel. From the rubble, the city found hope in one of its joys — flowers — by launching the first Panagbenga Flower Festival in 1996.
“The primary reason for Panagbenga was really to bring and reintroduce Baguio to the Filipinos,” said Frederico Alquiros, former Chief Operating Officer of Camp John Hay Development Corp. and co-founder of the Baguio Flower Festival Foundation, Inc. “Baguio was up and about, and we are okay. You can come up. There’s no more trace of the earthquake and the devastation, and that we’re up for business.”
The choice of name is almost poetic when you think about the flower festival’s mission. “Panagbenga,” a Kankanaey term for “blossoming,” was chosen by Mayor Mauricio Domogan, himself from that group. Mr. Alquiros pins the significance of the word “blossoming” to the Baguio that aimed to rebuild after the earthquake, but also, “Baguio is really a hodgepodge of different ethnic groups and lowlanders… people have migrated to Baguio.
“Really, Baguio cannot be claimed to be purely Cordillera,” said Mr. Alquiros. “It’s really the blossoming of all of these.”
During its inception, only three floats paraded around the streets of Baguio. Now, on its 2019 iteration, Mr. Alquiros expects about 26 floats on average, all of them bedecked in flowers. There isn’t any theme: “You can be as wild… as long as it’s covered with flowers.” Panagbenga floats are also judged by bodies outside the city, such as representatives from the World Flower Council. Panagbenga is the only festival in the Philippines accredited by the International Festivals and Events Association.
BusinessWorld attended the festival’s opening at the beginning of February, which was kicked off by the opening day parade featuring a Drum and Lyre Competition between students of Baguio City. The festival has been running through the whole month of February, but the Grand Street Parade and the Grand Float Parade — the most awaited events — are slated to begin on March 2 and 3. “We try to move our festival as far from Valentine’s [Day] as possible,” said Mr. Alquiros, pointing to the fact that Baguio and Benguet have some of the country’s biggest flower farms, and having them devote their harvest to the festival would distract from the very profitable Valentine’s season. “We don’t want to compete with their market.”
Truckloads of flowers, after all, are used in a float, put together by locals and big, big conglomerates. The grand prize for this year is at P500,000 — which only just about covers the cost of one float.
Still, Mr. Alquiros explained that Panagbenga is one of the cheapest festivals for a local government unit to produce, with a budget of just P4 million every year as compared to other festivals, which could go up into the tens of millions. This isn’t to say that it works on that limited budget however: the foundation raises about P10 million on its own, making it a partnership between the city and its citizens. The P10 million is sourced from sponsors and the trade fairs leading up to and during Panagbenga, such as the Baguio Blooms Exhibition and Exposition.
That flower show shows the impact of Panagbenga on its city. “People are growing more flowers,” Mr. Alquiros pointed out. He also said that some flower farms have taken to breeding blooms especially for the flower show. It might lead to a scientific breakthrough — to BusinessWorld’s eye, they’ve at least reached a decorative breakthrough: some flowers we observed had petals of different colors, appearing like stripes; flowers fit for a fantasy.
The festival also highlights Baguio’s closeness to nature: think of the vegetables, the flowers, and homes that are built to preserve as much of the natural landscape. “Preserving the environment and giving thanks for a good harvest are some of the principal reasons why this came about.”
“It is the only festival of Baguio,” said Mr. Alquiros. “We have no patrons; we have no religious festival in Baguio.” It’s easy to stick to a tradition because of an omnipotent being, but isn’t it more wonderful to have a tradition simply because of the sense of community that lives in each one? During the opening parade, with the smiles of the schoolchildren, the music of the Panagbenga theme performed on the lyre, and the sunshine of Baguio shining on flowers and trees, it was hard to say no to life. “It makes us all closer,” said Mr. Alquiros, citing the 5,000 or so volunteers who make the festival possible. “Blossoming can really mean a lot of things.” — Joseph L. Garcia

The real crazy rich Asian palace is worth a cool $3.5B

IN the heart of Singapore, one of the most expensive cities in the world, there’s a sprawling, vacant plot of private land 30 times the size of The White House.
Just down the road from the U.S. embassy and bordering condos worth S$4.5 million ($3.3 million) each, the swathe of untended jungle hides the remains of two abandoned palaces and would be worth a cool $3.5 billion if sold for development, according to one estimate. In a city where almost 8,000 people are crammed into each square kilometer and real estate prices are among the world’s highest, it is one of the greatest urban anachronisms in Asia.
“Owning a piece of land in Singapore is certainly a privilege as land is the most precious resource in the city-state,” said Christine Li, a senior director and head of research for Singapore at Cushman & Wakefield Inc. “Over the past five decades, land prices have appreciated significantly. This has fueled wealth creation for older generations. Many also aspire to own a landed property as it is a status symbol for the well-heeled.”
If something about this story sounds familiar, it’s probably because the plot line was borrowed by Kevin Kwan, author of Crazy Rich Asians, the book about Asia’s insanely rich that was made into a hit movie last year. The fictitious Young family inhabits a sprawling ancestral home, set within Singapore’s Tyersall Park.
In the real-life version, the 34-year-old Crown Prince of Johor, Tunku Ismail Sultan Ibrahim, is the registered owner of the 210,875 square meter plot, which lies in the former Tyersall Park, next to the Botanic Gardens. Inside, ravaged by fire and decay, are the ruins of Istana Woodneuk, the palace built by his ancestors in the late 19th century.
The plot owned by the Sultans of Johor was once larger, but has gradually reduced as the Singapore government acquired land to extend the Botanic Gardens, a Unesco World Heritage site. In 1990, the state bought a chunk for S$25 million and it got another 98,000-square-meter piece in 2009 for an undisclosed amount.
Malaysia has a constitutional monarchy, where the national throne rotates between rulers of the country’s nine states every five years. The southern state of Johor is ruled by the Crown Prince’s father, Sultan Ibrahim Sultan Iskandar.
Last year, the 60-year-old patriarch put 12 luxury cars from his extensive collection on display at an event held to mark the 90th anniversary of Singapore’s Fullerton Heritage precinct. They included a 1991 Lamborghini LM002 and a 1938 Lagonda Lightweight LG6, the only one in the world.
His other assets include a 22 percent share in Malaysia’s Forest City, a $100 billion Chinese-built project with apartments on artificial islands in the country’s south, and the family also owns stakes in a variety of public companies from 7-Eleven Malaysia Holdings Bhd. to telecoms firm REDtone International Bhd.
The Crown Prince, however, won’t be able to cash in on his Singapore land any time soon, even if he wanted to. The undeveloped area is zoned for “special use of green space,’’ meaning development for other purposes, such as residential or commercial, is restricted.
Were that to change — the land does sit in one of Singapore’s most desirable residential districts — it could be worth at least S$4.7 billion, according to a calculation by Alan Cheong, a senior director at brokerage Savills Plc.
The most expensive residence to change hands in Singapore over the past year was a so-called good class bungalow (luxury landed houses that are off limits to foreigners) also near the Botanic Gardens. The property was purchased by Tony Tung, the chairman of oil trader Winson Group for S$105.3 million ($78 million), the Business Times reported earlier this month, saying it was a record for that type of dwelling.
A representative for the Crown Prince didn’t immediately respond to a request for comment.
His father is pragmatic when it comes to matters of money.
“Let’s be honest here, we are a constitutional monarch. I have to earn my living like everyone else,” the Sultan said in a 2015 interview with local newspaper The Star. “I cannot depend on my allowances of RM27,000 ($6,640) a month. I must earn a living, like ordinary Malaysians.” — Bloomberg

Cavite gov’t to submit revised Sangley airport proposal this week

Sangley Airport
THE CAVITE GOVERNMENT submitted last year a proposal to develop an airport in the former US naval facility at Sangley Point. — PHILSTAR

By Denise A. Valdez, Reporter
THE PROVINCIAL government of Cavite said it is “almost ready” to submit to the national government its revised proposal to develop an airport in the former US naval facility at Sangley Point.
“We will submit the more complete proposal by 28 February,” Cavite Rep. Jesus Crispin C. Remulla said in a text message on Monday when asked for updates on its Sangley airport proposal.
He added they are clarifying rules on reclamation as well.
The Cavite government submitted last year its Sangley airport proposal to the National Economic and Development Authority (NEDA) — indicating a project cost of around $10 billion and a partnership with a Chinese firm — but Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. told reporters this was returned to the proponent for subsequent questions.
“Sinubmit sa NEDA, pero binalik ng NEDA rin sa kanila. Tinatanong din sa kanila anong legal basis noon [It was submitted to NEDA, but NEDA returned it to them also. They’re being asked about its legal basis],” Mr. Reinoso said in a Feb. 13 chance interview.
The Cavite government had earlier submitted its airport proposal to the Department of Transportation (DoTr), which gave it a no-objection clearance but did not commit to any obligation as the project lacked a legal framework.
Mr. Reinoso said the Cavite government may choose to follow from several frameworks for the project, such as the Build-Operate-Transfer Law, Government Procurement Policy or the Local Government Code. But as far as the DoTr is concerned, it would only be involved in the project for regulatory requirements.
Mr. Remulla said they have yet to meet with NEDA to discuss the clarifications on the airport proposal as they are “busy preparing to campaign (for the elections).” He added there was no deadline set by the NEDA to do this as far as he knows.
Aside from the Cavite government’s proposal, private group Sangley Airport Infrastructure Group, Inc. (SAIG) also submitted a $12-billion Philippine Sangley International Airport plan to the DoTr last year. But Mr. Reinoso said this project has essentially been rejected to focus on the Cavite government’s proposal.
“Sinabi namin sa kanila na [We told them] we have preferred to deal with the Cavite provincial government,” he said, referring to SAIG, the consortium formed by Solar Group’s Wilson Y. Tieng and tycoon Henry T. Sy, Sr.
The development of a Sangley airport is welcomed by the DoTr as part of its “aviation roadmap,” which seeks to build more gateways across the country to reduce traffic and ease congestion at the Ninoy Aquino International Airport (NAIA).

Singaporean graphic novel gets chance to become animated film

AN ANIMATED adaptation of Sonny Liew’s 2015 Singaporean graphic novel about a fictional comic book artist living in postwar Singapore, won in the first Animation Du Monde workshop in Asia which allows the adaptation to be brought to the Annecy International Animation Film Market (MIFA) to pitch the concept to international co-producers and investors.
“We decided to choose the project that will go to Annecy will be specifically relevant. We enjoyed discovering the specific historical context through an artistic vision. The story also raised existential questions everybody could be moved by,” Geraldine Bache, head of projects at the MIFA, said during the awarding ceremony held on Feb. 22 at the French Ambassador to Philippines’ residence in Forbes Park, Makati.
The Art of Charlie Chan Hock Chye is “a film about regrets” said its producer, Jerrold Chong, in an interview with BusinessWorld shortly after the ceremony.
“[It’s also about] learning to overcome self-doubt as an artist and a political figure,” Mr. Chong said.
The story revolves around the titular Charlie Chan Hock Chye, a comic book artist who creates comic books which represent his childhood in postwar Singapore and what could have happened to Singapore if Lee Kuan Yew didn’t become the country’s first prime minister and the Barisas Sosialis (Socialis Front) won and Lim Chin Siong became the prime minister instead.
(Lim Chin Siong was the youngest parliamentarian to be elected in Singapore, but after being branded a communist and suffering through two detentions — first from 1956 to 1959 and again from 1963 to 1969 — without trial, Mr. Siong was released after attempting suicide in prison in 1969 on the condition that he renounce politics for good.)
The graphic novel was awarded the Singapore Literature Prize following its publication in 2016, and it won three Eisner Awards (considered the Academy Awards for graphic novels) in 2017 including Best Writer/Artist for Mr. Liew, Best Publication Design, and Best US Edition of International Media-Asia.
“This film really explores the dynamic of someone who has a dream and works really hard but towards the end of his life receives no accolades,” Mr. Chong explained.
The film is currently under early development as Mr. Chong, who produces animated shorts in Singapore, has been working on the project for a year and a half.
“The story is really compelling and not only speaks to people in Singapore but any forgotten man in history internationally,” he said.
Aside from Mr. Chong, the judges also gave a special mention award to The One Pan Tree by Dakata by Diandra Pramestisari Pololessy from Indonesia, as “the project that improved the most [during the workshops] that we felt the need to really encourage it.”
The project will be brought to the MIFA so it can hopefully find investors and co-producers so the film will be produced.
The workshop was held at the Alliance Francaise de Manille from Feb. 18 to 22, and involved six animation producers from the Philippines, Indonesia and Singapore, who were given the opportunity to undergo one-on-one and group sessions on storyboarding, storytelling, production, financing and pitching led by three experts from Annecy, France: Ms. Bache; filmmaker, script doctor, and storyboard writer Claire Fouquet; and Ron Dyens, founder of Sacrebleu Productions which has produced over 50 short films.
Aside from the workshops, the Animation Du Monde, in partnership with the Film Development Council of the Philippines and the Animation Council of the Philippines, also hosted a selection of lectures and masterclasses open to the public “to provide young animators opportunities to acquire funding and co-production deals and to equip animators with the know-how about the best practices and trends in animation,” said a press release.
Aside from Mr. Chong and Mr. Wee, other participants in the workshop were Avid Liongoren who made the Metro Manila Film Festival animated film Saving Sally (2016) and Cris Dumlao of Toast and Brew Animation Studios from the Philippines; Diandra Pramestisari Pololessy from Indonesia; and Irwan Junaidy and Irvin Tan from Singapore.
The Annecy International Animation Film Festival and the MIFA is considered one of the biggest animation film events in the world and is held annually at the beginning of June in the town of Annecy, France. — Zsarlene B. Chua

Josh Groban: As good as the first time I heard him

By Michelle Anne P. Soliman, Reporter
Concert review
Josh Groban Bridges Tour
SM Mall of Asia
Feb. 22
I VAGUELY remember my introduction to Josh Groban — I only recall hearing a deep and operatic male voice as a seven-year-old one evening in the master’s bedroom. Out of curiosity, I approached the front of the old stereo system to see what new album was playing. The artwork on the cover was divided horizontally into 2 frames — at the top was the artist’s name in lowercase letters and below was his photo. I couldn’t imagine that a baby-faced young man would sound like that. I flipped the album to read the track list and kept track as the record played each song.
***
It was an hour past the scheduled show time on a Friday evening when most of the seats were finally filled at the Mall of Asia Arena. The stage design was simple — upstage was an orchestra, a band, and a space for backup singers. No grand setup was needed that evening, just a majestic voice.
Dressed in a black suit and pale shirt and sporting a beard, American singer-songwriter Josh Groban opened the show with “Bigger Than Us” (2018) from his latest album Bridges. As someone who has frequently watched live performances online and also listened to his albums, I could tell by the power of his voice that it was a live performance (unlike other performers who opt to have their voices recorded then “sing along” when doing world tours). Throughout the show, Mr. Groban wowed the crowd with his powerful vocals.
The second song of the night, “Don’t Give Up (You Are Loved)” from his 2008 album Awake — a personal favorite — got this writer to sing along. It didn’t bother me if my seatmate heard me at all (since the concert’s volume was loud, I don’t think I distrubed anyone).
Before starting his third song, Mr. Groban thanked the crowd for the warm welcome and also apologized for how long it had taken him to return to the Philippines — 12 years. “It’s taken many years of planning to finally come back but it has been one of my dreams and exciting moments for me on this Bridges Tour to finally be back here in Manila. So, first I want to say sorry, and thank you for inviting me back,” he told the crowd.
The 37-year-old baritone continued with “Won’t Look Back” (2018), a song he explained was about the early exciting phase of falling in love, followed by a rendition of “Pure Imagination” (1971) which he recorded for his Stages (2015) album, then a song he wrote as an anthem for the young who have hopes and dreams titled “Granted” (2018).
Mr. Groban welcomed Christian Bautista (who also performed as the show’s opening act) as his first guest of the evening. Their voices blended well on “We Will Meet Once Again” — the song Mr. Groban co-wrote and recorded as a duet with Andrea Bocelli.
The second half of the show began with an impressive piano solo by the singer which led to the first few bars of “She’s Out of My Life” — originally recorded by Michael Jackson in 1979. The singer referred to the number as a Manila exclusive. “I stayed up all night learning that on the piano for you,” he told the crowd, stating that that song made it big in the Philippines compared to the US where “nobody paid attention to it.”
The introduction of the much-awaited special guest — multi-award winning singer and Broadway actress Lea Salonga — had the crowd cheering. Ms. Salonga (who was celebrating her 48th birthday) was brought to the stage on a wheelchair (broke her leg in a skiing accident).
They sang “All I Ask of You” from the Phantom of the Opera and “The Prayer” (1998) romantically, with their voices blending well. Every word was well enunciated. Their talent is, in Filipino, walang kupas (unfading). It would be nice to have them record these songs for an album. It’s Lea Salonga! Need I say more?
Later that evening, Mr. Groban surprised the crowd with “Alla Luce Del Sole” (2001) which was the first track from his debut album, and then the Ateneo Chamber Singers joined him for “You Raise Me Up” (2003) from the album Closer.
When he bade the audience “Good night!” and exited the stage the crowd cheered for more, and the singer obliged with “To Where You Are” (2001) which he noted as a significant song to many fans. As he sang the 16th song of the evening, his voice dynamics remained flawless as he hit the high notes.
He concluded the show with Paul Simon and Art Garfunkel’s “Bridge Over Troubled Water” (1970) together with the Ateneo Chamber Singers.
The house lights went up even before the choir, band, and orchestra members exited the stage. The crowd stood up to leave, reluctantly. Honestly, I felt 10:30 p.m. was too early; the seven-year-old in me wanted the music to keep on playing.

SSS to invest overseas as it diversifies asset base

THE SOCIAL Security System (SSS) is eyeing to finally invest overseas as its new charter allows a bigger chunk of its reserve funds to be parked in foreign-currency securities.
SSS President and Chief Executive Officer Emmanuel F. Dooc said the state pension fund has plans of investing overseas as the allocation for foreign investments in its reserve fund was increased in the new Social Security Act of 2018.
“Yes, we have (a plan) because of the asset allocation for foreign investment has been doubled from 7.5% to 15%,” Mr. Dooc said in a mix of English and Filipino during a press briefing last Thursday.
The amended charter of the Social Security Commission — the policy-making body of the SSS — allows the pension fund to put up to 15% of its investible funds in foreign currency and investment-grade instruments.
The funds can be invested overseas, provided that the instruments are listed in bourses and that the issuing company has a proven track record of profitability over the last three years.
“That is one thing that we have to do in order to diversify and also to bet higher yield,” Mr. Dooc said.
The SSS also expressed interest in hiring fund managers and advisers for its offshore investments.
“We have not been doing that (investing overseas) because of lack of expertise, so we will be engaging hopefully fund managers and advisers,” Mr. Dooc said.
“I will constitute a study group to do that and we’ll be engaging consultants and experts… There are many consultants who are offering their services, so what we will do is to accredit or bid it out.”
In July last year, the SSS invested P3 billion of its investment reserve fund in three local mutual funds, divided equally between Philequity Management, Inc., Sun Life of Canada Prosperity Balanced Fund, Inc. and Philippine Stock Index Fund Corp.
Mr. Dooc previously said the SSS is looking to invest overseas to diversify its asset base and to fund pension and benefit payments, similar to the Government Service Insurance System (GSIS).
The GSIS last year bared plans to invest some $800 million in foreign currency-denominated instruments and hire two external asset managers. However, the plans did not push through. It instead jacked up its investments in foreign currency assets. — K.A.N. Vidal

Service reliability is key for Mislatel to break Philippine telco duopoly

A GLOBAL NONPROFIT organization dedicated to studying the internet said the Mislatel Consortium, which is preparing to become the Philippines’ third telecommunications provider, will have to prove itself in terms of service reliability before it can grab market share from the current leaders.
Rajnesh Singh, the regional director for Asia Pacific of Internet Society, said he expects the third telco player to make a “big difference” in improving the country’s telecommunications landscape.
“I think the demand will be there. So when the third telco really serves their products and services, I’m sure there’ll be an uptake. People will switch for the sake of switching… But I think right now, pricing is not the concern in the Philippines. It’s reliability,” he said in an interview on Feb. 21.
“Obviously Globe (Telecom, Inc.) and Smart (Communications, Inc.) are not going to sit back and let them do that. What that does is bring competition, which is what we actually want to see,” he added.
Last November, the government awarded the third telco slot to the Mislatel Consortium, formed by China Telecommunications Corp. and Dennis A. Uy’s companies, Udenna Corp. and Chelsea Logistics Holdings Corp.
The consortium committed to deliver an average minimum broadband speed of 27 Megabits per second (Mbps) in its first year of operations, and 55 Mbps in the succeeding years. This elevates the state of the internet in the country, which according to a recent OpenSignal report, is only reaching an average of 9.4 Mbps.
“Having a duopoly, they’re both comfortable with each other and everything is fine, but nothing works… I do expect that the third telco will make a big difference, and that’s why something like this is even far more important,” Mr. Singh said.
“If they can position themselves as a more reliable provider, which means probably more cell towers and better connectivity…, they could very easily position themselves (in the market),” he added.
Mr. Singh also noted that as a new player, Mislatel may take interest in the government’s recently launched National ICT Ecosystem Framework (NICTEF), which outlines the country’s ICT agenda in the next five years.
“If I were the third telco, I would be looking at this document and say, ‘Okay, I know I have to launch soon. I have a business plan, but how do I structure that business plan to ensure I can reap the benefits of what the government is going to push with the NICTEF?’ I would look at it,” Mr. Singh said.
The NICTEF, which is the successor to the Philippine Digital Strategy Initiative 2011-2016, identifies trends in the ICT industry and strategic thrusts and indicators that the government will be watching out for.
Mislatel is currently waiting for the National Telecommunications Commission (NTC) to finish the review of its post-qualification documents, including its business and rollout plans.
Last week, the Department of Information and Communications Technology (DICT) said it is waiting for Congress to agree on a resolution allowing the transfer of Mislatel’s ownership to the consortium before it may award the group its permit to operate and its frequency bands. — Denise A. Valdez

ArthaLand bags 3 int’l awards

ARTHALAND Corp. recently won three international real estate awards in November. At the 2018 Asia Property Awards in Bangkok, ArthaLand received the Best Boutique Developer (Philippines) award and the Best Office Development (Philippines) award for the Cebu Exchange. Cebu Exchange is a 39-storey commercial development within the Cebu IT Park in Barangay, Lahug, Cebu City. The property firm also bagged the Best Green Feature Development at the 2018 Japan International Property Awards. ArthaLand Executive Vice President Leo Po said the awards are a “testament to our commitment to excellence in the real estate industry.” “I’m truly proud of the award for Cebu Exchange for it recognizes the project as one of the most important office developments in recent time, not only in Cebu but in the whole country,” Mr. Po said.

Paghilom Arts Fest in Amadeo, Cavite

ARTISTS, students, teachers, and cultural workers in Cavite are uniting for the second edition of Paghilom, an artist-initiated arts festival in the province. “Paghilom” means healing or renewal, and the festival focuses on art and its production as transformative acts necessary to cure individuals, communities, and society of its maladies. The three-day Paghilom Arts Camp and Festival at the Alitaptap Artists Village in Halang, Amadeo, Cavite runs from Feb. 28 to March 2. The event includes a sportsfest, zine festival, an on-the-spot-painting competition, public art installations, murals, an art exhibit, art talks, workshops, improvisation jamming, dance and theater performances, art fora, and Spoken Word. The festival will culminate with a concert led by Joey Ayala, The Wuds, Chickoy Pura, and Borrachos. All Paghilom 2019 events are free and open to the public. For more information on the festival, contact Henry Ancanan at 0923-703-4451 or check out the Paghilom Facebook page.

UnionBank targets bigger take from digital transactions

UNIONBANK is targeting higher revenues from digital transactions.

By Melissa Luz T. Lopez, Senior Reporter
UNIONBANK OF THE Philippines, Inc. is eyeing bigger revenues from digital transactions in the coming years, as they expect investments on technology to improve financial services offered to clients.
UnionBank Chairman Justo A. Ortiz said the bank is eyeing to raise the contribution of digital transactions to as much as a fifth of total revenues coming from an estimated 6-7% share currently.
“We want it to be maybe 20%, at least, of the transactional space,” Mr. Ortiz said in a recent interview. “The balance sheet will still play a role — that’s what banking is about, but that’s a limiting factor. We’re hoping that digital can be a less limiting factor.”
Asked for a target, Mr. Ortiz said this should take the bank about “three to five years.”
The Aboitiz-owned lender is among the banks which have been embracing financial technology the most, with the bank aggressively pouring funds into digital innovations, which even include blockchain and virtual currency.
The bank is set to launch the first automated teller machines meant for digital currencies, which would allow customers to buy and sell digital units for cash.
Aside from this, UnionBank has also set up concept branches called “The ARK,” which offer paperless and all-online services even for over-the-counter transactions. This should also expected to attract more flows into the bank.
“It’s pivotal because it challenges the industry on the customer experience side,” Mr. Ortiz said, noting that UnionBank is also redefining themselves as a technology company.
UnionBank reported a P7.3-billion net income in 2018, down 13% from the P8.4 billion it made the previous year. Mr. Ortiz attributed the lower profits to problems incurred by their thrift banking subsidiary, City Savings Bank, after its partnership with the Department of Education for teacher loans was suspended early last year.
“It should be better than last year. I think it’s still a lot of business as usual, but we spent a lot of money last year on a lot of these different investments, some of them should now start coming through in terms of better expense management,” the company official added.

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