PSE confident of securing SEC nod for PDS takeover

January 30, 2018 | 12:03 am

THE Philippine Stock Exchange, Inc. (PSE) is positive it can secure clearance from the Securities and Exchange Commission (SEC) for its acquisition of the Philippine Deposit System Holdings Corp. (PDSHC), after it conducts a stock rights offering next month.

In a disclosure on Monday, the PSE said the country’s corporate regulator approved its listing application for the P3.16-billion stock rights issuance on Jan. 25.

“With the approval, the company is confident that it will be able to fully comply with the Securities Regulation Code requirement to reduce ownership of broker shareholders to 20%,” the PSE said.

The PSE will be offering up to 11.5 million stock rights to existing shareholders at P275 each next month. Proceeds will be used to fund the acquisition of PDSHC, and working capital requirements. The company has already obtained a loan facility of up to P1.15 billion each from BDO Unibank, Inc., Metropolitan Bank & Trust Co., and Bank of Commerce for the acquisition.

The entitlement ratio for the offer has yet to be disclosed.

“The company has in place several layers of control in the system that will monitor the level of ownership and restrict purchases to maintain the ownership level at 20%,” the PSE said.

Bringing down broker ownership in the PSE to less than 20% is key to getting the SEC’s approval for the transaction, as Rule 33.2 (c) of the Securities and Regulation Code states that “no single industry or business group shall beneficially own or control, directly or indirectly, more than 20% of the voting rights of the Exchange Controller.”

PSE Chairman Jose T. Pardo said last week the stock rights offer would bring down ownership of trading participants in the PSE to 19%.

“Thus, the company is hopeful that it will obtain the exemptive relief from the SEC soon, which will then pave the way for the finalization of the acquisition of additional shares in PDSHC,” the bourse operator said.

BDO Capital Investment Corp. and First Metro Investment Corp. have been tapped to arrange the offering.

State-run Land Bank of the Philippines (Landbank) has also expressed its intent to buy a majority stake or at least 66.67% in the fixed-income bourse. The bank’s board of directors approved the plan last week.

Finance Secretary Carlos G. Dominguez III backed Landbank’s move, saying the PSE’s inability to secure exemptive relief has hampered the growth of the country’s capital markets.

Shares in PSE were up 0.82% or P2 to close at P247 apiece on Monday. — Arra B. Francia

Bohol positioned as dairy hub amid cattle imports

January 30, 2018 | 12:03 am

THE Department of Agriculture said it will eventually distribute dairy cattle to farmers in Bohol following the import of 5,000 head of the girolando breed from Brazil.

In a meeting with local officials on Friday, Secretary Emmanuel F. Piñol said in a statement that the initial herd of 5,000 will go to the Ubay Stock Farm, with the offspring to populate other dairy farms in Bohol.

The girolando is a type of Holstein crossbreed deemed suitable for tropical conditions.

The Ubay Stock Farm is a 3,000-hectare facility run by the National Dairy Authority to keep imported cattle. Bohol is being prepared as a potential hub for dairy production.

The country imports most of its dairy products due to an underdeveloped dairy industry.

Farmer beneficiaries receiving girolando cows will also be given milking sheds and linked to producers of dairy products.

“The project is not only expected to provide employment to young agriculture and animal husbandry graduates of the island but also income opportunities for corn and forage farmers who will be engaged to produce silage for the dairy cows,” Mr. Piñol said. — Anna Gabriela A. Mogato

P2.1-B infra projects completed in Bulacan

January 30, 2018 | 12:03 am

THE DEPARTMENT of Public Works and Highways (DPWH)-Bulacan 2^nd District Engineering Office has reported the completion of P2.093 billion worth of national roads, bridges, flood control structures, and other infrastructure projects in 2017. District Engineer Ramiro M. Cruz, in a statement released by DPWH yesterday, said the projects include 19.59 kilometers (kms) of national roads, 88 lineal meters of bridges, and 31 flood control structures, among others. The DPWH branch also completed the construction of 88 units of schoolbuildings consisting of 755 classrooms amounting P1.297 billion under the Department of Education’s Basic Education Facilities Fund and 12.24 kms of farm-to-market roads worth P105 million under the Department of Agriculture’s budget.

PAL Xiamen-Puerto Princesa charter flights start in Feb.

January 30, 2018 | 12:02 am

FLIGHTS BETWEEN Xiamen, China and Puerto Princesa City in Palawan will be launched on Feb. 10, the Department of Tourism (DoT) announced yesterday. The new route is handled by C&D Travel Service China, a charter operator based in Xiamen, with Philippine Airlines (PAL) as partner carrier. DoT said regular operations are scheduled on Feb. 14 and 18. “Just for starters, the new route will produce a total of 480 international air seats just for that period alone,” DoT Undersecretary Benito C. Bengzon, Jr. said in a statement. Mr. Bengzon said the DoT’s Route Development Team is also working on launching Tiajin-Puerto Princesa flights “in time for the Chinese New Year.” Earlier this month, Xiamen Airlines also started its thrice-a-week flights between Fuzhou and Kalibo, Aklan, one of the gateways to popular tourist destination Boracay.

Homeless in Hong Kong: soaring costs fuel housing crisis in Asian financial hub

January 30, 2018 | 12:02 am

HONG KONG — Cheung Muk-gun’s home is an illegal, wooden shack under a highway in one of the poorest areas of Hong Kong, where sky-high property prices and a yawning wealth gap have helped fuel a surge in homelessness.

The 72-year-old earns about HK$10,000 ($1,279) a month working seven days a week at a frozen meat store in the working-class district of Mong Kok, a short trip across Victoria Harbour from the city’s opulent financial centre.

With property prices up 200% in the past decade, and a bed in a tiny, windowless apartment — often shared with other tenants — going for about HK$2,000 a month, Mr. Cheung said he preferred to live in his shack.

An apartment of around 250 square feet (23 square meters) in a new building with windows and a bathroom near Mong Kok would rent for about HK$12,000.

“Why would I want to spend so much on rent, not to mention other related miscellaneous expenses. After paying all that, my salary could hardly cover my daily expenses,” he said.

Since Mr. Cheung became a street sleeper more than five years ago, Hong Kong’s homeless population has jumped about 30% to 1,800, according to the Society for Community Organization (SoCO), a nongovernmental human rights group.

That compares with government data showing 1,075 registered street sleepers as of end-2017 and is double the 908 recorded in 2016. Government figures do not include so-called “McRefugees” who sleep in fast-food chains — whose numbers are significant but not officially counted — indicating homelessness is rapidly worsening in the Chinese territory of 7.3 million people.

While Hong Kong has far fewer homeless residents than, say, the almost 58,000 in Los Angeles County, the pace of their increase has alarmed social workers.

The crisis has piled pressure on the government after scores of protests in recent years over the soaring cost of accommodation. The Social Welfare Department says it is responding by helping street sleepers re-integrate into the community and working with six non-government organizations that operate hostels and emergency shelters.

“During the stay in the hostels, responsible social workers will assist street sleepers to identify long-term accommodation or appropriate residential care,” a department spokeswoman said.

In Singapore, Hong Kong’s traditional rival as a regional financial hub, the government estimates about 300 individuals and families are homeless out of a population of 5.6 million, thanks mainly to an adequate supply of subsidized housing and more affordable housing generally.

But in Hong Kong, severe shortages of affordable accommodation are driving more and more people onto the streets.Homelessness is now affecting sections of the population who previously could afford a place to live, such as those with jobs, according to rights groups.

About one in five people live below the poverty line even as Hong Kong’s wealth gap swells to its widest in more than four decades.

MCREFUGEES
While the government provides shelters and subsidized housing for homeless people, critics say caps on the length of time they can stay only offer short-term relief.

SoCO social worker Ng Wai-tung estimates 25% of Hong Kong’s homeless population are McRefugees — people who call fast-food outlets home. He expects to see more in the summer when street sleepers seek air-conditioning to cool down.

Slouched in a corner of a 24-hour McDonald’s in Kowloon district, Wong Shek-hei, 65, said he earned HK$7,000 a month as a cleaner. He left a bed that cost about HK$1,500 a month more than three weeks ago, when bed bugs and disturbances from drug addicts drove him to the fast-food restaurant.

“In summer there are more than 20 people sleeping here,” he said.

Reuters visited four 24-hour McDonald’s, where it found on average six people bedding down of a night in each of the restaurants. Some lay stretched out with their shoes off, while others slept with their heads on tables.

“Since more than 120 McDonald’s restaurants are operating around the clock among our around 240 restaurants in Hong Kong, there could be chances that some customers stay in our restaurants overnight,” McDonald’s told Reuters.

“McDonald’s Hong Kong is accommodating to people (who) stay long in the restaurant for their own respective reasons.”

As the homeless population grows, rough-sleepers are appearing in areas they were rarely seen previously.

“The situation has definitely worsened in the past two years and we see Tsuen Wan as a new location for the homelessto gather,” said Olivia Chan, a social worker with Christian Concern for the Homeless Association, referring to a district on the mainland north of Mong Kok.

“More and more people are sleeping in fast-food shops now.”

One McRefugee surnamed Yeung, who has been sleeping at a McDonald’s branch for the past eight months, said the outlet was a safe haven for him.

“McDonald’s doesn’t approve of you sleeping here, but they turn a blind eye,” Mr. Yeung, who declined to use his full name due to concerns over job security, told Reuters.

“It’s a shelter from the rain, the heat, the cold and the bad.” — Reuters

Trump’s son, Washington’s United Nations envoy in backlash over Grammy skit

January 30, 2018 | 12:02 am

NEW YORK — A Grammys skit poking fun at US President Donald J. Trump sparked a backlash on Twitter from Mr. Trump’s eldest son and the ambassador to the United Nations.

In light-hearted political commentary during the music industry’s biggest award night Sunday, host James Corden introduced a video of famous names reciting from the controversial book, “Fire and Fury: Inside The Trump White House.”

Published early this month and written by Michael Wolff, the instant bestseller paints Mr. Trump as disengaged, ill-informed and unstable.

The Grammy video shows musicians John Legend, Cher, Snoop Dogg, Cardi B, and DJ Khaled reading short excerpts from the book, and sometimes interjecting their own comments.

“I definitely wasn’t there,” Snoop Dogg said after reading a passage about Mr. Trump’s inauguration.

Cardi B quoted a line referring to Mr. Trump in bed with a cheeseburger.

“I can’t believe this,” she said.

Mr. Trump has called it a “Fake Book, written by a totally discredited author.”

The Grammy video ends with Hillary Clinton, the Democratic challenger who lost to Mr. Trump in the bitter 2016 election, quoting the book as saying Mr. Trump liked to eat at McDonald’s.

“The Grammy’s in the bag,” Ms. Clinton quips about her performance, which prompted Mr. Trump’s son Donald Trump Jr to respond on Twitter: “Getting to read a #fakenews book excerpt at the Grammys seems like a great consolation prize for losing the presidency.”

He added that the more Ms. Clinton appears on TV “the more the American people realize how awesome it is to have @realDonaldTrump in office.”

Mr. Trump’s UN ambassador, Nikki Haley, left Ms. Clinton alone but said the musicians had struck a sour note.

“I have always loved the Grammys but to have artists read the Fire and Fury book killed it,” she said on Twitter.

“Don’t ruin great music with trash. Some of us love music without the politics thrown in it.” — AFP

Maze Runner outruns Jumanji at box office

January 30, 2018 | 12:02 am

LOS ANGELES — Fox’s young-adult film Maze Runner: The Death Cure dashed past Jumanji: Welcome to the Jungle as it opened this weekend in North American theaters, taking in an estimated $23.5 million after a strong showing overseas, Web site Exhibitor Relations reported.

The dystopian sci-fi film, the third and last in the Maze Runner series, follows the life-and-death adventures of three young “Gladers,” teens immune to a destructive virus infecting the world.

The film’s release had been delayed a year after star Dylan O’Brien was injured on the set. It has proven “an all-out sensation overseas” while taking in $82 million for the week, according to HollywoodReporter.com.

Sony’s Jumanji, which had held the North American lead for three weeks, took in $16.4 million over this three-day weekend.

The family film, starring Dwayne “The Rock” Johnson and funnymen Jack Black and Kevin Hart, follows a group of teens who find themselves transported inside the video game world of Jumanji.

In third place was Entertainment Studios’ Hostiles, starring Christian Bale and Rosamund Pike in a gritty Western about a US cavalry officer who has to escort a Cheyenne chief and his family to Montana in 1892. In limited release since late December, the indie film entered wide release on Friday, taking in $10.2 million for the weekend.

In fourth and demonstrating continued drawing power was Fox’s The Greatest Showman, with Hugh Jackman as larger-than-life circus impresario P.T. Barnum. The movie took in $9.5 million in its sixth week.

And in fifth was another Fox film, The Post, netting $8.9 million in its fifth week.

The Steven Spielberg film, featuring mega-stars Tom Hanks and Meryl Streep as Washington Post editor Ben Bradlee and publisher Katharine Graham, depicts their tense legal battle to publish the Pentagon Papers, which exposed the lies behind US involvement in the Vietnam War.

Rounding out the top 10 were: 12 Strong ($8.6 million); Den of Thieves ($8.4 million); The Shape of Water ($5.7 million); Paddington 2 ($5.6 million); and, Padmaavat ($4.3 million). — AFP

Wesley’s journey

January 30, 2018 | 12:02 am

80^th Tata Steel Masters
Wijk aan Zee, Netherlands
Jan. 12-28, 2018

Final Standings

1-2. Magnus Carlsen NOR 2834, Anish Giri NED 2752, 9.0/13

3-4. Vladimir Kramnik RUS 2787, Shakhriyar Mamedyarov AZE 2804, 8.5/13

5-6. Viswanathan Anand IND 2767, Wesley So USA 2792, 8.0/13

7. Sergey Karjakin RUS 2753, 7.5/13

8. Peter Svidler RUS 2768, 6.0/13

9. Wei Yi CHN 2743, 5.5/13

10-12. Gawain Jones ENG 2640, Fabiano Caruana USA 2811, Maxim Matlakov RUS 2718, 5.0/13

13. Baskaran Adhiban IND 2655, 3.5/13

14. Hou Yifan CHN 2680, 2.5/13

Ave Rating 2750 Category 20

Time Control: 100 minutes for the 1^st 40 moves followed by 50 minutes for the next 20 moves then 15 minutes play-to-finish with 30 seconds added to your clock after every move starting move 1.

Magnus Carlsen won for the Tata Steel Masters in Wijk aan Zee for a record 6^th time by tying for first with Anish Giri of the Netherlands and winning the blitz playoff 1.5-0.5. We will take that up in full starting Thursday. First let me finish my story on Wesley So.

One of our readers, Mr. Rafael Osumo wrote me after last Thursday’s column, the one on Wesley’s miracle win over Wei Yi. He says “Like you, I wanted Wesley to continue his “miracle” and retain his title. Last night, however, he got stuck in a difficult position against Carlsen. The chess engines were ranking the position equal but then when the Carlsen squeeze (getting something out of nothing) started, Wesley has to give up. Three pawns versus a bishop was too much to handle. The loss somewhat stalled Wesley to 5.5 points with three rounds left. I don’t know but if he can win against Jones, Anand and Yifan, I hope he can at least finish second or third.”

The game is actually very interesting. Wesley is known for his tactical resourcefulness in difficult positions and indeed he fought tooth and nail and made it as difficult as possible for Magnus to win. Let us review that game.

Carlsen, Magnus (2834) — So, Wesley (2792) [D02]
80^th Tata Steel GpA Wijk aan Zee NED (10.1), 24.01.2018

GM Jonathan Rowson wrote on twitter: “Gosh. I just saw how Magnus Carlsen defeated Wesley So. So many beautiful notes. Such fluency between forms of quality. Such confidence in transitions. Such abundant harmony. You would think he is World Champion or something…”

Well, it takes two to tango and the strength of opposition from Wesley elevates the game.

1.Nf3 d5 2.d4 Nf6 3.Bf4 Bf5 4.e3 e6 5.c4 Bxb1

The main line here is 6…c6 but taking on b1 also has its adherents. The point of course is that White now loses his right to castle after 6.Rxb1 Bb4+ the king has to go to e2 as 7.Nd2 Ne4 Black wins material. Wesley played the line twice (drew 1 lost 1) in his speed chess showdown against Magnus Carlsen in the chess.com Web site late last year.

6.Qxb1

White prefers his king on d1 rather than e2.

6…Bb4+ 7.Kd1 Bd6

Hereabouts Carlsen says that Wesley played too passively without giving an opinion on what Black should have played. Perhaps he was expecting to see this position again in the future?

8.Bg5 h6 9.Bxf6 Qxf6 10.cxd5 exd5 11.e4

Opening up the center with your king still in it looks very risky but it turns out everything is controlled, that’s why most commentators conclude that this is a prepared line.

11…Be7

[11…dxe4 12.Qxe4+ wins the pawn on b7]

12.Bb5+ c6 13.e5 Qf4 14.Bd3 c5 15.dxc5 Nc6 16.Qc1 Qb4 17.a3 Qxc5 18.Ke2 Nd4+ 19.Nxd4 Qxd4 20.f4

Black would like to play …f6 to break open the center and get to white’s king, but first he has to castle.

20…0–0 21.Qd2

Threatens to win the black queen via Bh7+

21…Qb6 22.Rhe1 f6 23.e6!

A deep sacrifice worthy of AlphaZero — he gives up the pawn but gets pressure down the central files.

23…Qxe6+ 24.Kf3 Qd7

Carlsen: 24…Qf7 better.

25.Rad1 Rad8

Maybe 25…f5 is best here. White can play 26.Bb1! Rad8 27.Qxd5+ Qxd5+ 28.Rxd5 Rxd5 29.Ba2 but after 29…Kh7 30.Bxd5 Bf6 it looks equal.

26.Qe3 Bd6 27.Bg6 f5 28.Qe6+ Qxe6 29.Rxe6 Bc5 30.Re5 Rf6 31.Bxf5 Bd6 32.Rdxd5

[32.Rexd5? g6]

32…Kf7

[32…g6 33.Be6+ Kg7 34.Re4 White consolidates]

33.Re4 g6 34.Bg4 h5 35.Bh3 Re8 36.Red4 <D>

POSITION AFTER 36.RED4

Carlsen thinks that he is winning easily but Wesley fights back.

36…Be5! 37.Rb4 g5! 38.g3 b6

It was very tempting to win the piece right away but after 38…g4+ 39.Bxg4 hxg4+ 40.Kxg4 Rg6+ 41.Kf3 Bd6 42.Rxb7+ Re7 Black winds up with a bishop against 4 pawns.

39.Rd7+

Magnus could have kept the piece with 39.Bf1 but he reckons: (1) that was where Wesley wanted him to go, and (2) the ending there with a pawn up will be harder to win than if he had 3 connected passed pawns on the kingside. This is chess on a very high level!

39…Kf8 40.Rh7 g4+ 41.Bxg4 hxg4+ 42.Kxg4 Bd6 43.Rc4

In exchange for his bishop White has three connected passed pawns on the kingside. He should be winning, but it is not as easy as that.

43…a5 44.Rc6 Kg8 45.Rb7 Be5 46.Rcxb6 Rxb6 47.Rxb6 Bd4 48.Rb5 Re2 49.b3 Rxh2

Would you believe that this move, winning the h2–pawn, is the losing move? 49…a4 was the last chance to resist. The Web site Chess24 reports that when shown this move Carlsen asked what was wrong with 50.Rb4. It turns out that 50…Bg1! 51.Rxa4 Re3! draws. Magnus commented “5 pawns down and making a draw — that’s messed up!” 52.h4 Rxb3 followed by Bf2 white’s pawns on the kingside are no longer connected and it seems that is enough to draw for Black.

50.Rxa5 Re2 51.Rd5 Bb2 52.a4 Bc3 53.Kf5 Re8 54.g4 Rf8+ 55.Ke4 Rb8 56.Rb5 Re8+ 57.Kd3 Be1 58.a5 Bf2 59.b4 Re3+ 60.Kc4 Re4+ 61.Kb3 Kf7

[61…Rxf4 DF 62.Rf5+– forces the rook exchange and the black bishop cannot hold back White’s pawns]

62.Re5 Rd4 63.b5 Rd3+ 64.Kc2 Rg3 65.g5 Bd4 66.Rd5 Be3 67.Rd3 Rg2+ 68.Kb3 Bc1

[68…Bxf4 69.Rf3 Rg4 70.a6]

69.b6 Ke6 70.Rd4 Rb2+ 71.Ka4 Kf5 72.Rb4 Ra2+ 73.Kb5 Bxf4 74.Rxf4+! Kxf4 75.b7 1–0

A very hard-earned victory.

Let’s get back to Raffy’s letter: “I learned to play chess late in my life, like when I was 10 years old. But when I was in high school, in Iloilo City, I met the late Florencio Campomanes during one of his sorties to Iloilo City to promote a chess tournament sponsored then by Pepsi. We played with Pepsi “tansans” embedded with carton chess pieces. I think that was in 1972 or 1973. I also followed the games of Eugene Torre, him being an Ilonggo, and whop it up when he finally got the norm to become Asia’s first GM.”

Yes I remember those days too in the 1970s. All this talk about the “Pepsi Generation” with Michael Jackson, Gloria Estefan, Tina Turner, etc. etc. Well I consider myself a part of the Pepsi Generation myself, but an earlier one started when Pepsi took out full-page newspaper ads with a huge chessboard printed on it which we cut out. Then we would buy Pepsi just to get its crowns with the chess pieces printed on it. It was not long before we completed all 32 pieces and now had a complete set fit for playing in kiddie tournaments!

Pepsi also sponsored the National Juniors Championship for two years. These events were really of a gigantic scale with local, provincial and regional eliminations and I remember that Frederic Tumanon won one of them and Antonio Elinon the other. If my recollection is incorrect I invite BW readers to write me with the correction.

Thank you Mr. Osumo for those memories.

I really thought that the idea of having cut-out chessboards from the newspapers and chess pieces printed on the backside of the Pepsi crowns (“tansans”) was a brilliant idea, both for chess and for Pepsi. Maybe we need something like that again to stir up chess in the countryside, for lately the flow of chess talent has not been as great as before.

You go to the ricefields of Nueva Ecija and you see the guys playing basketball during their breaks. At the end of the day they would gather around their friendly neighborhood sari-sari stores and what do they do? They talk about basketball, or open the TVs to watch basketball games! The key here is to get these guys to play chess after work in their favorite haunts, then organize local tournaments to recognize the talents and follow-through with training, tournaments with scholarships as prizes, and maybe the Philippines will start churning out the IMs and GMs again with regularity.

Come to think of it, with the passage of the TRAIN (Tax Reform for Acceleration and Inclusion) Law as of Jan. 1, 2018 soft drinks have become so expensive (even fast food restaurants have stopped giving “unli” drinks), and they don’t sell sodas with crowns, or “tansans” anymore. Maybe they should start putting pictures of chess pieces inside the coffee 3 in 1? That’s the drink with no price increase, right? Now that’s a thought.

Bobby Ang is a founding member of the National Chess Federation of the Philippines and its first Executive Director. A Certified Public Accountant, he taught accounting in the University of Santo Tomas for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

Competing in the age of disruption

January 30, 2018 | 12:02 am

(Following is the inaugural speech delivered by the author who is the President of the Management Association of the Philippines for 2018)

I stand before you today, humbled and honored by your trust, and inspired by our continued commitment to management excellence. Your vote of confidence is very gratifying. I will certainly do everything within my power to reinforce MAP’s thrusts, and sustain our accomplishments in the years past.

MAP’S STRATEGIC THRUST
In conducting our programs for 2018, your Board will abide by MAP’s continuing Strategic Thrust with the following three pillars:

Members’ Benefits Advocacies for:

1. Good Governance

2. Global Competitiveness

3. Inclusive and Sustainable Growth

4. Climate Change

2018 MAP THEME
As in the past years, our activities for 2018 will be guided by a theme. For this year, it is “Competing in the age of disruption.”

So many changes are happening that disrupt the usual way organizations operate. Advancements in technology, innovations in business models, prominence of borderless competition, climate change, and dynamism in geopolitics—all these disruptions have become prevalent, and it is incumbent upon us to encourage the development of collaborative and transformative programs that will help organizations to cope and thrive.

In pursuing MAP’s mission, we will continue to partner with the business community, the government, the academe, and the civil society, pushing for reforms that will help the country improve its competitiveness, enable businesses to capitalize on disruptions, encourage the government to sustain a level-playing business environment, and inspire the citizenry to contribute to social progress.

TOP PRIORITY PROGRAMS FOR 2018
We in the 2018 Board have agreed to pursue the following Top Three Priority programs for 2018, in accordance with the results of last November’s MAP Quick Survey on MAP Members’ preferences.

FIRST, COMPETITIVENESS AND EASE OF DOING BUSINESS.
In the “Doing Business 2018” report of the World Bank Group, our country’s ranking was at 113^th across 190 economies, which is 14 notches lower than in the previous year’s ranking.

As long as the economic landscape remains forbidding for investors, they will take their money and job-creation capabilities elsewhere. Needless to say, this is something we hope to avoid.

Our association will focus this year on helping to improve the competitiveness and ease of doing business in the Philippines. This is so we can contribute to attracting local and foreign investments, creating more jobs, and ensuring inclusive growth.

MAP will continue to push for reforms and policies that will foster an enabling business environment. We remain steadfast in advocating for practical solutions that will facilitate business registration and accreditation process, and address bureaucratic problems faced by investors.

The MAP fully supports the necessary amendments to certain economic provisions of the 1987 Philippine Constitution.

We support the lifting of some economic restrictions in order to open more businesses to foreign investors. This would mean fresh infusion of capital to some of our under-capitalized sectors, introduction of greater innovations and, more importantly, job creation.

We in the MAP will maximize our support for the “BUILD, BUILD, BUILD” infrastructure program of the Duterte administration.

The MAP has supported the Phase 1, and we will continue to support the subsequent phases, of the TRAIN tax reform which is a bold initiative that will serve us well. It will help establish a stronger foundation for the economic growth and social development of the country going forward, particularly in financing the “BUILD, BUILD, BUILD” program.

SECOND, MANAGING BUSINESS DISRUPTIONS.
In these times when so many changes are happening — at a very fast pace at that — organizations must adapt, or die. History has shown that even huge corporations are not invulnerable to disruptions. There is really no choice but to adapt, and some organizations need more help than others to turn disruptions into opportunities.

As long as programs are in place to increase the readiness of people in adopting new processes and technologies, disruptive innovations could potentially yield societal and economic benefits.

We will ensure that the MAP will come up with activities that will help organizations face the massive disruptions to business.

THIRD, DATA PRIVACY AND CYBER SECURITY.
Data privacy and cyber security are issues that keep MAP members and other CEOs awake at night. While there have been robust developments in the field of data protection, data breaches remain as pervasive as ever. If the seemingly impenetrable Pentagon is vulnerable to data breaches, how can an ordinary individual protect his personal information?

Cyberattacks put every organization at risk. Business continuity is unequivocally a board room responsibility, so business leaders and directors will have to increase the attention and resources they devote to data privacy and cyber security.

This year, we will be conducting programs aimed at enlightening our members and their stakeholders on how to protect sensitive personal information and enhance cyber security.

OTHER PROGRAMS FOR 2018
Having identified these three major programs does not mean that we will just focus on these three. The fact is, we will continue to pursue our ongoing advocacies and programs on (1) traffic management, (2) entrepreneurship development through our EMERGE program, (3) good governance, (4) climate change, (5) energy, (6) CSR, (7) health and wellness, (8) sports and fellowship, (9) agribusiness development, (10) women empowerment, (11) trade, and (12) tourism, among others.

We will continue to work with other Philippine Business Groups and Joint Foreign Chambers in pushing for key reform measures to support the 10-point agenda of the Duterte administration.

The challenges that our country faces are huge. But, I think, there is no group of like-minded individuals more qualified than the MAP to make a positive social impact. The work that we do is one that no one else will. So although our membership has changed considerably since the MAP’s establishment in the 1950, we remain as we were then: management professionals that speak up for progress.

MEMBER BENEFITS AND MEMBERS’ PARTICIPATION
Amidst the rapidly changing environment here and abroad, we need to make the MAP more relevant to its members. Hence, we will continue to organize interesting learning sessions, and hold more networking fellowship activities this year.

I ask each member to please support your Board’s efforts and participate in the various activities of the MAP this year. I encourage new faces to join our various committees.

In closing, I would like to thank my family, who is my constant source of strength and inspiration.

Special thanks as well go to my colleagues in Maynilad, and to the MVP Group for their unflinching support all these years.

Finally, I would like to thank the MAP general membership and the 2018 Board of Governors for giving me the honor and privilege of serving as the 69^th President of the MAP.

There is a saying that goes, “In every crisis, lies the seed of opportunity.”

For the MAP this year, let us all focus on the belief that with every disruption, there is also an opportunity to be better and stronger.

Ramoncito S. Fernandez is the MAP President for 2018 and the President and CEO of Maynilad Water Services, Inc.

mon.fernandez@mayniladwater.com.ph

map@map.org.ph

http://map.org.ph

Davao taxi operators launch own ride-hailing app

January 30, 2018 | 12:02 am

DAVAO CITY — The Metro Davao Taxi Operators Association (MeDaTOA) has started installing the ride-hailing application Hirna among its members and a launch of the smartphone-based service is planned by February.

MeDaTOA President Rogelio G. Largo said the group is targeting to have up to 5,000 taxi units in Davao City covered by Hirna, a collaboration with Avis Global and Avis Philippines, and Smart Telecommunications, Inc. as network partner.

“We will be targeting about 90% of taxis to avail of this hailing app,” Mr. Largo told the media.

“We will have a public launch by February. We want to launch at a time with so many units already having Hirna, because it is difficult to launch at this time when we have very few because if you book, then not many drivers will be able to serve the passengers,” he added.

Mr. Largo also explained they picked Smart, the wireless unit of PLDT, Inc., as telecommunications partner after initial discussions with Globe Telecom, Inc. did not work out.

“Because of the need to launch this app, we had to look for another partner… I cannot say that Globe declined, they simply cannot agree to what we want,” he said.

Mr. Largo also said Hirna, a play on “here now,” would not totally ease out Grab, the only ride-hailing app currently operating in Davao.

He pointed out that Grab has a direct partnership with taxi drivers, while MeDaTOA, covering about 90% of the approximately 5,600 taxis in the city, will be using Hirna.

“The operators commit that (their) units will be provided with phones and with Hirna app,” he said.

Among Hirna’s features are a feedback mechanism for commuters and a link to the Davao City government’s emergency services under the 911 program.

Mr. Largo said the ride-hailing app is also expected to help decongest the city’s streets as taxi drivers no longer have to constantly move around looking for clients. Instead, they can just park in strategic areas while waiting for a booking.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Maya M. Padillo

Local shares climb on optimism in telco sector

January 30, 2018 | 12:01 am

LOCAL EQUITIES climbed on Monday, propped up mainly by telco stocks as delays in the entry of a third telco player renewed sentiments for the sector.

The bellwether Philippine Stock Exchange index (PSEi) eked out a gain of 0.19% or 17.42 points to finish at 9,058.62. Still, this marks the main index’s ninth record high for 2018, after finishing past the 9,000 level for the first time last Friday at 9,041.20.

The broader all-shares index also added 0.07% or 3.68 points to 5,273.

“I think the main factor for today is investors’ optimism about telecommunication, which has been greatly battered since President (Rodrigo R.) Duterte’s proclamation of a third player,” IB Gimenez Securities, Inc. Research Head Joylin F. Telagen said in a text message on Monday.

Telco giants Globe Telecom, Inc. and PLDT, Inc. saw their shares jump on Monday, adding 8.76% to P1,899 and 6.52% to P1,601 each, respectively, after weeks of negative performances due to the possible entry of a third player that would break the telco duopoly in the country.

The Department of Information and Communications Technology earlier said the reallocation of mobile frequencies for a third telco player would require legislation, possibly prolonging its entry into the telecommunications industry.

Regina Capital Development Corp. Managing Director Luis A. Limlingan also attributed the market’s movement to base-building after it rose to fresh highs last week.

“Philippine markets traded slightly up, trying to establish firm ground at the 9,000 level,” Mr. Limlingan said in a mobile phone message.

Ms. Telagen also noted that generally improving global growth will likely boost corporate earnings.

“Corporate earnings are starting to trickle in and higher corporate earnings stabilize market valuation to an acceptable level,” she said.

Four sectors finished in positive territory, led by services which added 2.32% or 39.49 points to 1,736.30. The mining and oil sector followed with an increase of 0.36% or 44.43 points to 12,234.05; financials added 0.06% or 1.42 points to 2,258.15; while holding firms rose 0.05% or 4.95 points to 9,362.95.

The industrials and property sectors, meanwhile, ended in the red, losing 0.60% or 73.43 points to 12,016.53 and 0.54% or 22.49 points to 4,104.47, respectively.

A total of 1.27 billion issues changed hands, valued at P8.87 billion. Declining stocks prevailed, 116 against the 95 that recorded upticks, while 55 names were flat.

Foreign investors were sellers on Monday at a net P86.04 million, lower than Friday’s net sales of P242.25 million. Analysts have noted that foreigners may turn to international markets this week to post higher profits.

Wynn’s Macau expansion at stake as chairman’s sex scandal roils parent

January 30, 2018 | 12:01 am

THE REACTION to sexual harassment allegations swirling around Steve Wynn is muted so far in Macau. As investors await how the drama unfolds in the US, Wynn Resorts Ltd.’s operations in the world’s biggest gambling hub remain the key to the company’s future.

Shares of Wynn Macau Ltd. slipped as much as 6.5% in Hong Kong on Monday, less than the 10% plunge in the parent company’s stock on Friday. The company is under pressure after the Wall Street Journal reported that the casino magnate had engaged in multiple instances of sexual harassment, which founder Wynn denied.

With Wynn Resorts facing investigations in the US and calls for Steve Wynn’s ouster, here are some reasons why the scandal will be a big deal for Macau too.

CROWN JEWEL
Wynn Macau is the growth engine for its US parent, generating more than 70% of Wynn Resorts’ business. Last week, Wynn Resorts reported better-than-expected quarterly earnings as a surge in revenue from Wynn Palace on Macau’s Cotai Strip overshadowed weaker results out of Las Vegas.

MACAU RESURGENCE
Business is booming in Macau as high rollers have returned to the territory after a government crackdown. Wynn gained the most market share last year among casino operators with the resurgence of the elite gamblers, according to gaming data. Total gambling takings rose 19% in 2017, the first full-year of growth since 2013, and analysts are optimistic about the gaming market in 2018.

INCREASED SCRUTINY
Any fallout from the allegations could have a major impact on Macau. Gaming regulators in Nevada and Massachusetts are looking into the accusations, and punitive actions in the US could prompt Macau regulators to ramp up their scrutiny, said Wang Changbin, director of the Gaming Teaching and Research Centre at the Macau Polytechnic Institute. Upsetting the market by ousting an existing casino operator may be difficult, Wang added. Macau’s gaming law stipulates that the reputation of the operator and its controlling shareholder is considered in the bidding process for licenses.

FOUNDER’S FATE
Some investors are calling for the company to oust Steve Wynn, raising the prospect of a volatile transition period. Bloomberg Intelligence analyst Margaret Huang says possible successors to the 76-year-old casino magnate include Linda Chen, chief operating officer of Wynn Macau. Wynn cited Chen as one of the company’s executives fit to take over when asked about a potential replacement in 2011.

ASIAN FALLOUT
The repercussions could be felt beyond Macau. Japan is opening up to casino resorts, and government officials are already sensitive to negative perceptions about the industry as they consider regulations and licenses for casino operators. — Bloomberg

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