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Maynilad spends P1.92B for pipe replacement

MAYNILAD WATER Services, Inc. said it spent around P1.92 billion last year to replace 286 kilometers of old, leaky pipes within its west zone concession area in Metro Manila, the company said on Tuesday.

“Replacing old pipelines was a priority project that enabled us to provide reliable water supply to our customers. But our work does not stop there, as we aim to renew 100% of the old pipe network by year 2023,” said Ramoncito S. Fernandez, Maynilad president and chief executive officer, said in a statement.

The company identified the areas as portions of Manila, Quezon City, Caloocan, Valenzuela, Parañaque, Muntinlupa and Las Piñas, as well as Kawit and Noveleta in Cavite province.

The pipe replacement project allowed the recovery of about 32 million liters per day of potable water, which Maynilad said was enough to supply around 55,000 households.

Maynilad said the project also translated into the creation of 6,000 jobs, including those generated by the contractors and suppliers of the company.

Since its re-privatization in 2007, it had replaced almost 2,000 kilometers of old and damaged pipelines, which approximates the distance between Manila and Bangkok, Thailand, it said.

“This is about 40% of the distribution network Maynilad inherited in 2007 that includes the oldest water system in Asia, with some portions dating back to the Spanish era,” the company said.

Maynilad earlier said that it had spent P1.5 billion in 2017 to build new pumping stations and reservoirs in Las Piñas, Quezon City and Muntinlupa.

At present, Maynilad has 28 pumping stations and 32 reservoirs in strategic locations throughout its west concession area, up from only seven operational pumping stations and reservoirs in 2006 before the company was re-privatized.

Maynilad serves certain portions of the cities of Manila, Quezon and Makati. It also covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon in Metro Manila.

Outside the Philippine capital, it serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Maynilad, the largest private water concessionaire in the Philippines in terms of customer base, is an agent and contractor of the state agency Metropolitan Waterworks and Sewerage System for the west zone of the greater Manila area.

Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Magnitude 6 quake sparks panic in Indonesia; no tsunami warning issued

JAKARTA — A strong quake rattled Indonesia Tuesday, sparking panic in the capital Jakarta and ripping roads apart in the countryside.

Office workers rushed outside as buildings began swaying, while riders were thrown off their motorbikes by the force of the 6.0 magnitude rumble.

Footage broadcast on Indonesian television showed trucks swaying violently from side to side at a port in Banten province on the northwestern tip of Java. Pictures posted to social media showed huge cracks splitting roads and minor damage to vehicles and buildings.

It was not immediately clear if there were any casualties.

“I was sitting when the building suddenly started shaking,” said Jakarta department store worker Suji, 35, who like many Indonesians goes by one name.

“I ran outside the building. It was quite strong and I was afraid.”

The United States Geological Survey said the 6.0 magnitude quake struck at a depth of 43 kilometers (27 miles).

There was no warning of any tsunami.

The epicenter was off the coast, about 130 kilometers southwest of Jakarta, a sprawling city of more than 10 million people.

“The epicenter is in an area prone to quakes. More aftershocks are very likely,” Indonesia’s Meteorology, Climatology and Geophysics agency chief Dwikorita Karnawati told Metro TV.

“I’m calling on people to be prepared, especially if you are in buildings with a weak structure,” he added.

The tremor came as US Defense Secretary James Mattis was in Jakarta for an official visit.

Indonesia sits on the Pacific “Ring of Fire” where tectonic plates meet, causing frequent seismic and volcanic activity.

At least three people were killed following a 6.5-magnitude earthquake just outside the coastal town of Cipatujah on Java island in mid-December.

The tremor was felt across the densely populated island, causing damage to hundreds of houses and other buildings.

An earthquake struck Indonesia’s western province of Aceh in December 2016, killing more than 100 people, injuring many more and leaving tens of thousands homeless.

Aceh was one of the areas worst hit by the devastating 2004 tsunami triggered by a magnitude 9.3 undersea earthquake off the coast of Sumatra.

The wall of waves killed 220,000 people in countries around the Indian Ocean, including 168,000 in Indonesia. — AFP

PSEi stops short of 9,000 as GDP data fuel hopes

LOCAL EQUITIES ended Tuesday at the year’s sixth peak, closing just under a point short of the 9,000 mark as initial investor disappointment over slower-than-expected fourth-quarter economic growth gave way to optimism that 2017’s full-year clip provided momentum for expansion in 2018.

The Philippine Stock Exchange index (PSEi) finished 48.40 points or 0.54% higher at 8,999.02 — also an intraday peak — while the all-shares index went up 41.60 points or 0.80% to close at 5,214.61.

“The PSEi plunged into the red zone a few minutes after opening and stayed there almost until the close,” RCBC, Inc. noted in its stock market daily recap.

“However, buying before close sent the index back up to close a hair’s breadth below 9,000, specifically at 8,999.02… a new record high for the market.”

The Philippine Statistics Authority in the morning reported 6.6% gross domestic product (GDP) growth for 2017’s fourth quarter — against market expectations of 6.7% — flat from a year ago though slower than the third quarter’s upwardly revised 7%. That brought 2017’s full-year pace to 6.7% against an official 6.5-7.5% target and 2016’s 6.9%.

“It’s quite a good number,” UPCC Securities Corp. equity trader Aristotle D. Reyes, Jr said in a telephone interview.

“I think the analyst consensus for the full 2017 is 6.6% only, and despite all the challenges last 2017, we still had 6.7% GDP,” he noted.

“So I think going to 2018 there’s still optimism.”

Mr. Reyes added that the market also anticipated generally positive corporate year-end reports due for release soon. “We are up also because investors are very optimistic on reports for the 2017, which are coming maybe first week of February or late this January,” he said.

Only one sectoral index ended lower: financials, which shed 9.85 points or 0.43% lower to end at 2,277.02.

The rest closed with gains: holding firms increased by 109.98 points or 1.19% to 9,291.18; mining and oil rose by 77.27 points or 0.65% to 11,968.38; services went up by 9.06 points or 0.54% to 1,665.81; industrials added 56.54 points or 0.47% to 11,939.4; while property edged up by 16.62 points or 0.41% to 4,072.75.

In a reversal from previous days, stocks that advanced outnumbered those that fell 125 to 84, while 47 were unchanged.

A total of 1.19 billion stocks worth P8.55 billion changed hands, compared to Monday’s 890.17 million issues worth P8.14 billion.

Foreigners marked their eighth straight trading day of net buying, though 40.9% smaller at P264.82 million from Monday’s P448.38 million.

Tuesday’s list of most active stocks showed nine gained, led by San Miguel Corp. and SM Investments Corp. that went up 3% to P140.90 apiece and 2.34% to P1,095 each, respectively, and eight lost, led by LT Group, Inc. and Pilipinas Shell Petroleum Corp. that fell 4.08% to P23.50 apiece and 2.65% to P64.25 each, respectively. — Arra B. Francia

A minute to arrive, a minute to leave

By Raju Mandhyan

A FEW YEARS AGO, I’d taken up three speaking assignments in one day. The first was in Antipolo, a location 25 kilometers north from Makati City where I operate from in the Philippines. The second speaking assignment was in Makati City and the third, late in the afternoon, was at a convention center in Pasay City which was about 10 kilometers from Makati City.

I had calculated the speaking and the travel time well for all three engagements and also did make it to each one of them in time. But, I must confess that my speaking performance in each one of them wasn’t of the quality that I’d like to fondly remember. Getting from one venue and event to another had my nerves so frayed that on stage it was more about overcoming the wobbly knees from driving than from the fact that I was on stage. Though I don’t want to remember the day, I am sharing the story in hope of purging it from my system and preventing others from such mistakes.

I don’t quite know what it is about us humans and humanity itself that wants us to pack our hours and minutes with so much to do.

From the moment we wake up we get hooked to our smart phones, our tablets and every other thingamajig that we think will help us get productive. We also sign up for meetings, get-togethers, lunches, workouts and late night online sessions to fill our days. All these activities are frantically weaved in with reading news, posting, liking, sharing and commenting on every little beep on the blooming internet. We call it living it out loud in the Volatile, Uncertain, Changing and Ambiguous world.

In this messy scramble of commitments and appointments we claim that we can make it because we are of the 21st century and we are multi-tasking, multi-talented, omnipresent creatures lurching into future. No, we are not!

Research in neurosciences will tell you that we are on and off between tasks. That means we do one thing, we stop and then we do another. We do not do many things at the same time. We stop, we start, we start, we stop and eventually end up burned at both ends. Research by the Mindful Leadership Institute in 2010 showed that barely 2% of business leaders succeed at this, 47% are, usually, in a state of chaotic, mind-wandering and 70% confessed to constantly tuning out from the tasks at hand.

The answer lies in what a professor, unknown to me, at the Ateneo de Manila University makes his students practice when they enter his classroom. He invites them to sit down, be still and then just be silent for one whole minute. His claim, as I have heard my son share the story, is that when we move from one venue, one event to another we must let our minds catch up with our body.

My “mind” enter my body? That is exactly what I hadn’t done on that day when I’d zoomed from one speaking engagement to another and then to another. I was a maniac driver on the road and a zombie pontificating on stage.

Today, I practice a habit called “one minute to arrive.” Get up in the morning and take a minute to arrive and appreciate the day outside. Sit at breakfast, take a minute to arrive, smell the food and appreciate the company. Enter the car and take one minute to arrive and be amazed at the wonders of technology. Enter a business meeting and spend a whole minute to take note of the place, the people and the potential in the room. Connect everything to an inner quietness, a greater awareness, and curiosity for what is and what else may unfold. Some people call this grounding while others call it quiet time. Regardless of what it is called, the beauty lies in the fact that it increases our calm, our clarity and our abilities to become creative and productive.

The same practice can also be applied to leaving a room or a meeting. One can just sit up after all the talk is over and let all the little and big conversations come together in our heads then let them find their way into our deeper memory. Call this “a minute to leave” and has similarities to a respectful “paalam” in the Philippines.

The beauty behind this practice is that our forefathers knew of it and, thus, created words and rituals to remind us of it. Another truth behind this practice is that science is quickly catching up on its mental, emotional and performance benefits. Practice it for a day and it will impact you. Practice it for a few weeks and it will become a good habit. Hang on to the good habit and it will become a trait of being present in the here and now. Think of it gently, “a minute to paalam.”

 

Raju Mandhyan is an author, coach and speaker.

www.mandhyan.com

Prudential agrees to sell Vietnam consumer finance unit for $151M

PRUDENTIAL PLC has agreed to sell its consumer finance business in Vietnam to a unit of South Korea’s Shinhan Financial Group for $151 million, as the UK’s largest insurer seeks to focus on its core insurance arm in the Southeast Asian nation.

Prudential Vietnam Finance Co Ltd is the country’s fourth-largest consumer finance company by outstanding loan balance, and was the first foreign, non-bank financial institution licensed for consumer lending, a company statement said on Tuesday.

Reuters had reported in October that Prudential sought the sale of its Vietnam consumer finance unit, which could fetch up to $150 million. The sale attracted many buyers, including private equity firms and financial services companies.

The sale of Prudential Vietnam Finance, which offers personal and mortgage loans, marks the British insurer’s first major asset divestment since it named its former group CFO, Nic Nicandrou, as the head of its Asia business in July last year.

The move comes as some global insurers are selling smaller and non-core units in Asia to sharpen focus on their main insurance businesses in a region, which is attractive due to low insurance penetration but is also hyper competitive.

“PVFC is a high-quality business, but not core to our strategy in Vietnam,” Nicandrou said in the company statement, referring to the consumer finance unit in the Southeast Asian country.

“Vietnam remains an attractive and important market to Prudential where we have high-quality and fast-growing life insurance and asset management operations.”

Under the terms of the transaction, Prudential and Shinhan, a diversified financial group with interest in banking and insurance, have also agreed to a new long-term bancassurance partnership in Vietnam and Indonesia, the British insurer said. — Reuters

Philippines’ gross domestic product performance

THE PHILIPPINE ECONOMY expanded last quarter at a pace slightly slower than expected even as full-year growth fell within the government’s target and cemented the country’s place among Asia’s fastest-growing economies, the Philippine Statistics Authority (PSA) reported yesterday. Read the full story.
GDP

How PSEi member stocks performed — January 23, 2018

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 23, 2018.

Banks need human upgrade to remain competitive — study

FOR ALL THE reorganizations the financial services industry has undertaken in recent years, it won’t achieve long-term success unless it dramatically changes the way new managers are hired, consulting firm Oliver Wyman said in a report.

In a survey on the state of finance released on Tuesday, Oliver Wyman found that a “gnawing sense of concern” was afflicting the industry even though it enjoyed a strong 2017.

“Much of the regulation has been absorbed, global prospects are better, valuations have improved, and interest rates have begun to turn,” according to the report. “We don’t encounter a celebratory mood, however, in conversations with bankers and insurers around the world.”

Oliver Wyman researchers found that growth in the financial services industry significantly lagged global technology firms, which have done a better job in meeting customer demand. The industry also fell behind its historic performance. In addition, the long-standing models that once supported profits and returns in banking and insurance have also deteriorated, the report said.

Financial firms still had time to “bridge the customer value gap” and fend off “tech usurpers,” according to Oliver Wyman. The key: bringing men and women with deeper backgrounds in science, technology, engineering, art and math.

Organizations will have to adopt “a dramatically different human capital model, fully integrated business experts with a new set of skills, and spearheaded by business-building, entrepreneurial leaders,” it concluded.

The survey included input from 4,000 customers from the US, UK, France and Australia, and a digital focus group of 100 mass-market customers in the US. — Bloomberg

Government center construction starts in New Clark City

BUILDERS have broken ground on the first phase of the  P13.16-billion National Government Administrative Center in New Clark City, Tarlac.

The groundbreaking covers the construction of offices for government agencies taking up over 60 hectares (ha.) of the 200-ha. complex, as well as areas for business locators and two sports centers.

The sports complex will host athletics and water sports, with completion expected in time for the Southeast Asian Games in 2019.

The athletics stadium will have a seating capacity of 20,000 while the aquatic center will seat 2,000.

“Once completed in 2019, the project’s Phase 1B will commence for the construction of additional government office buildings, government housing units and support service facilities on a 20-hectare land,” the Bases Conversion and Development Authority said in a statement.

“Aside from this, retail and service facilities including banks, health centers and hotels will be put up in adjacent zones.” — Anna Gabriela A. Mogato

Nation at a Glance — (01/24/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Can friends run a resto? ‘Don’t do it’

DDon’t do it,” said Wren Go, general manager of Made Nice Supper Club—a restaurant in Makati managed by a barkada of millennials who have known each other since their college days in Enderun—when asked about whether or not it’s a good idea to build a business with friends. It was a joke, of course, punctuated by the heavy thud of pasta dough being slammed repeatedly on the table by one of their chefs as the kitchen team tried to come up with its fifth menu. The restaurant changes menus every three months.

“We were fresh out of college when we wanted to open a restaurant in Manila,” Go recalled. Five years of distance as the classmates went their separate ways has made it difficult for him to remember their original restaurant concept. But by October 2016, with the return of chef Jack Flores to Manila with his wife and current pastry chef for the restaurant Gabbi Ramos-Flores Made Nice Supper Club was established in Legaspi Village, Makati.

It was not smooth sailing for our team of cooks and kitchen staff, who are currently between the ages of 22 to 40. “We thought the business plan would be the most difficult part in starting the business,” said Go. “But there’s a lot more to that.” There were disputes over the direction of the business, amplified by the complicated nuances of strong friendships. They made it through. They’re still here and the comforting smell of carrot soup dances in the air as the chefs continued to cook while loudly discussing their new menu concepts. “If you want to start something like this—” Go said, looking back at his friends who stood behind the low cement counter that separated the kitchen from the restaurant, “—then you need to know what you want to do and like what you want to do. If not, it’s going to be really, really hard.”

“It’s really not easy,” he stressed. “I’m not going to say that we don’t have hard times, there are times when we would disagree about something. But we all had a solid foundation, we’ve known each other since college and we already know each other.”

Disagreements were coming from behind the cement counter, but also agreements, and a couple of ideas being tossed around as the chefs in the kitchen continued to brainstorm their menu for the first quarter. That’s all that separates the kitchen from the front of the restaurant, offering guests a clear view of squabbling chefs with their sharp knives and stainless steel ladles, and the chefs a clear view of satisfied guests in wooden communal tables that promotes hearty discussions between friends and family.

Go calls their menu “contemporary American that people mistake for Pinoy… international cuisine with Asian influences.” The simple menu printed on sheets of hard paper does its best to make it not seem intimidating to new customers, naming it after the main ingredient and describing how it’s cooked. Ordering at Made Nice Supper Club os as easy as saying “I’ll have the lamb.”

Speaking of lamb, it’s the experiences of the barkada behind Made Nice Supper Club that helps them come up with their menu. “The lamb dish with arroz negro is a variation of the dish Jack used to cook for Gabbi when they were still dating. Our food is from the heart, it has a story behind it, and well thought of.” The food is visually American (as the Floreses met in America), and without the overwhelming amount of spices Asian cuisine is known for, but with enough to have that taste and feel of home. From juicy steaks, delectable pastas, appetizing vegetable viands and of course, sweet desserts, there’s something for everyone in Made Nice Supper Club.

And like true millennials with allegedly shorter attention spans than the previous generation, the reason why they keep changing their menu every three months is because they don’t want their guests to get bored. The restaurant has gained some loyal customers from it, having a location that’s accessible to members of both the business and residential districts of Makati. Being open for lunch helped too, because the Titas of Makati love their brunch.

Because of this tight knit bond between the founders of Made Nice Supper Club, they have to be hands on when it comes to hiring new people, and you can’t really restrict yourself to hiring just friends and friends of friends.

“We’re really hands on in this restaurant, so we interview potential employees ourselves,” Go said. “We try to look for like minded people so that it will be easier to work together, especially in the kitchen.”

“This is more than just a business, this is a family,” he described. “In most restaurants there’s a divide between the kitchen staff and the front of the house, but here there’s no divide. We eat together at a communal table and we all still work together.”

So maybe it is inadvisable to work with friends, it could be the potential trigger to the destruction of a relationship. But when friends are like family then maybe your potential business has a shot.

Rappler’s uphill battle as a tech startup

By now, much has been debated about online media startup Rappler.com’s troubles on the watch of the Securities and Exchange Commission (SEC): the regulator’s voiding Rappler’s certificate of operation for purportedly violating the constitutional prohibition on foreign ownership of mass media in the country, followed by a subpoena to veteran journalist and Rappler founder‑CEO Maria Ressa on cyber‑libel charges.

The controversy has prompted suspicions about the government’s hand in undermining press freedom in the country. But more than a test case for press freedom, Rappler’s fight to challenge the SEC’s decision can also be seen as an uphill battle of a struggling tech startup.

 

Outdated laws

According to Ressa, Rappler’s case shows that the country’s Constitution is not yet prepared for new tech‑based enterprises—the issue being a microcosm of the startup ecosystem’s complex relationship with government.

“It’s not just Rappler. It’s Uber and Grab,” she told SparkUp at the sidelines of a forum on fake news on January 23 at Far Eastern University, Manila, referring to the controversial encounters of the government with ride‑sharing applications.

“These are completely new industries and our laws are not prepared for it,” she said. “Our laws are outdated and they need to be refreshed for this new age.”

Ressa asserted that the government has a huge role in helping startups and fostering innovation in the country.

“We wanna embrace innovation, we can compete globally, but I think if the government is not aware of its actions we will lose out to countries like Singapore and Malaysia that actually actively support startups communities,” she said.

 

Pivoting

Launched in 2012 by Ressa and other veteran journalists, Rappler was projected to disrupt traditional media in the Philippines, utilizing technology and social media in producing and disseminating news contents.

Their commercial activities include custom content and native advertising under #BrandRap, social media marketing, crowdsourcing and big data projects for clients.

“The important thing for us in media in general is that our future is not just in content creation,” she said. “If that’s the case, we will not survive.”

“We used technology to be able to grow faster than traditional news groups,” she added. “Originally, it was  social media, but now we have also built platforms like Agos, a disaster risk reduction and an anti‑corruption platform.”

According to Ressa, technology and the emergence of social media platforms have “crumbled” traditional business models, especially those of media entities.

“Google and Facebook are coming at us in two directions. Those guys have already taken the lion’s share of all new digital ads spends,” she said. “Facebook is also crippling the credibility of news groups.”

Ressa said the two tech giants have amassed 72% and 85% of total advertisement spending in the country in 2016 and 2017, respectively.

“How do we deal with that? The way we’re dealing with that is pivoting. We think technology has got the answer, it has got to go through data. It is the new oil,” she said, looking forward.

“In the end, to succeed you need access to capital and you can succeed globally. Young, smart Filipinos are super‑creative, but we need to give them the ability to actually create businesses that can scale.”