Ninja Van rolls out rebranded fleet to boost B2B logistics innovation

December 5, 2024 | 12:02 am

LOGISTICS company Ninja Van Philippines aims to scale and innovate its business-to-business (B2B) logistics operations with 200 newly rebranded trucks nationwide, its chief commercial officer said.

“The rebranding of our trucks is not just about a fresh look,” Sabina Lopez-Vergara, Ninja Van chief commercial officer in the Philippines and regional head of marketing, said in a statement on Wednesday.

“It represents the way we move forward with the businesses that we help grow through our B2B logistics solutions,” she added.

The company sees the revamp in bold red design as a way to highlight its services like Ninja Dash, Ninja Fulfillment, and Ninja Restock.

It added that this overhaul also plays a “crucial” part in Ninja Restock, its less-than-truckload freight, and inter-island delivery services.

Ninja Restock covers Metro Manila, the Greater Manila Area, Central, and North Luzon. It also delivers within the Visayas and Mindanao regions.

According to its website, some challenges in traditional trucking services include slow transportation, overstocking, and understocking supplies or goods.

Ninja Restock combats these struggles by offering a cost-effective solution for small-quantity shipments that can be shipped in a single truckload with multiple goods from different shippers, the company said.

It aims to mitigate stockouts and overstocking by offering a faster way to restock and move inventory.

The company projects to roll out more than a hundred rebranded trucks in the next few months to increase the brand’s visibility and spotlight its services.

“With more rebranded trucks in the coming months, we are reinforcing our role as a trusted logistics partner for businesses across the country,” Ms. Lopez-Vergara said. — Almira Louise S. Martinez

Artist Jasleen Kaur wins UK’s 2024 Turner Prize

December 5, 2024 | 12:02 am

LONDON — British artist Jasleen Kaur was awarded the 2024 Turner Prize for contemporary art on Tuesday, with an exhibition judges said reflected upon everyday objects and animated them through sound and music to “summon community and cultural inheritance.”

Established in 1984 and named after British painter J.M.W. Turner, the prestigious art prize is awarded to an artist born or based in the United Kingdom for an outstanding exhibition or presentation of their work in the past 12 months.

Glasgow-born Ms. Kaur receives a £25,000 ($31,657.50) prize.

Her exhibition Alter Altar “weaves together the personal, political and spiritual,” the jury said, adding she had managed to gather different voices through “unexpected and playful combinations of materials,” from family photos to a vintage car.

The 2024 prize was announced at a ceremony at Tate Britain art gallery in London, and was presented by actor James Norton. — Reuters

Peso interest rate swap mart likely to attract strong demand

December 5, 2024 | 12:02 am

THE PESO interest rate swap (IRS) market could see increased uptake at the start of 2025 amid local and foreign appetite and as the repurchase (repo) market develops, which could lead to more transparent loan and asset pricing, a top bank executive said.

“I think by the first quarter next year, that’s when we’ll really see a lot of push for it. What’s important is for the clients to ask what this is all about because the goal is really for clients to ask the banks, ‘price me based on the IRS,’ because we want a benchmark that is hopefully more dynamic,” Citi Philippines Country Officer and Chief Executive Officer and Bankers Association of the Philippines (BAP) Open Market Committee Chairman Paul Raymond A. Favila told reporters on the sidelines of an event on Tuesday.

The enhanced Peso IRS market began operations in November and is being handled by BAP to promote the development of yield curves to further support the pricing requirements of short-term credit instruments, such as loans.

Mr. Favila said there is strong interest in the enhanced Peso IRS market even among clients of a foreign bank like Citi.

“This means there is pickup. That’s interest from outside. Obviously, we’re also seeing it from our own clients who are looking in. So, that’s what we’re trying to see and hopefully we get more,” he said.

Mr. Favila added that the further development of the government securities (GS) repo market will also contribute to the Peso IRS market’s expansion.

“So, right now you have the IRS market right? It serves its purpose. But if another market enters, there will be a relative valuation between the two, and that’s when we’ll be able to see discrepancies and arbitrage. Then you’ll get more activity. Either you want to pay IRS or you want to pay the repo,” he said.

The Bangko Sentral ng Pilipinas and the BAP earlier said the repo market for government securities will be expanded to boost trading and provide an alternative benchmark for short-term loan rates.

Mr. Favila added that having a developed repo and swap market will result in more stable benchmark yields compared to the PHP Bloomberg Valuation Service (BVAL) Reference Rates.

“What we’re trying to achieve is a benchmark that will be reflective of the cost of money between banks… With an IRS market and maybe a repo market, there will be a convergence. The justifiable basis between the three markets will eventually evolve,” he said.

“If you have several markets that are trying to keep everything in check, then there’s less tendency for those markets to blow out because you can explain what’s going on. Right now, something happens to BVAL, justifiable or otherwise, there’s no way to verify,” Mr. Favila added.

This would also result in more transparent loan pricing as customers will be able to differentiate between banks’ offerings, he said.

“This has many far-reaching implications as well that will hopefully encourage a more transparent market because even if you’re a publicly listed company, the comparison will now become easier as well. It is easier to compare and hopefully, that also contributes to the deepening of the equity markets at the same time,” Mr. Favila added. — A.M.C. Sy

2027 SAP migration deadline may cause panic among PHL legacy customers

December 5, 2024 | 12:02 am

THE 2027 DEADLINE to migrate to the latest version of Systems, Applications & Products in Data Processing’s (SAP) enterprise resource planning (ERP) software could cause panic among its customers in the Philippines, a global information and communication (ICT) solutions company said last week.

“SAP is actually transforming into a cloud company,” Simone Pigason, senior vice-president for customer success at delaware Philippines, said in a media briefing. “It is ending its 50+ years old version and then migrating into a cloud version.”

“To be fair with them, they have already maintained the software for more than 50 years,” she said. “They have to also develop their products already.”

SAP is a software producer for business management processes that has established the global standard for ERP software.

ERP software helps businesses streamline their processes, including finance, human resources, manufacturing, supply chain, sales, and procurement, through an integrated system.

In February 2020, SAP announced its maintenance commitment for the S/4HANA business suite until the end of 2040. S/4HANA is the next generation of SAP ERP that supports artificial intelligence (AI) and machine learning. By committing to the latest version, the mainstream maintenance for SAP Business Suite 7 core applications ends in 2027.

According to Ms. Pigason, only about 20% of current SAP customers in the Philippines have migrated to the new version.

“There’s going to be a tidal wave, a panic attack in the industry. Legacy customers of SAP have to migrate simultaneously,” she said.

Ms. Pigason added that delaware Philippines plans to leverage this for the next three years.

“We have our hands full right now because of the market and there’s just a compelling event that drives us there.”

delaware Philippines targets a 10% revenue growth in 2025 from its 35% projected growth this year.

“My main problem is not sales, there’s a market for me,” Ms. Pigason said. “My problem is how are we going to deliver? We only have so many people to implement SAP.” — Almira Louise S. Martinez

What do you bring to the table?

December 5, 2024 | 12:01 am

THE eponymous phrase comes from the practice of “potluck” at social gatherings. This approach to hosting parties allows the guests to bring something for the party. Usually, the item is specified so that guests don’t bring identical stuff. The custom of not burdening a host with preparing food for a large group, after already providing the venue, expects that all party attendees bring a dish for all to eat. Also, the quantity may be dictated by the contributor’s number of attendees.

The guest who brings nothing to the table is considered rude, partaking of dishes brought by others and not contributing any of his own. This behavior invites scorn over someone who did not bring anything but sits anyway at the table heedless of the dagger looks around. (Should he just step out for a smoke while the food-bringers eat?)

What one brings to the table has become a corporate expression.

The expression “bring to the table” is defined in Lois Beckwith’s Dictionary of Corporate Bullshit. It refers to “the people who are important to an organization because of what they bring to the table in the form of skills, knowledge, contribution to a revenue-generating center, and connections.”

Bringing in a high-level and expensive talent into an organization for his rain-making skills (ability to bring in a shower on a parched desert) sets expectations on both sides. It is then a race between patience by the recruiters and the overhead cost of the new talent. Unfortunately, the high overhead from salaries and premium benefits needs to be front-loaded. Will the expected contribution follow suit?

This race between patience and windfall is stacked against the former. After two months when the euphoria of the top draft pick dies down, people around the table clear their throats and ask for a timetable.

In pre-historic times Homo sapiens (or more precisely, Homo erectus — referring to his walk rather than a particular part of his body) was a hunter-gatherer expected to hunt for his lunch, bringing back enough for the family at home. Companies may follow this hunter-gatherer model in recruiting key executives. One’s Guaranteed Annual Cash Compensation (salary is too primitive a word when including bonuses and variable pay) has to be justified by revenue one has brought in.

How different is this concept of hunting for one’s meal from the entrepreneurial model where absence of business automatically means no salary? Companies are embracing this no-free-lunch model with passion. If someone does not bring in business, should he even sit at the table or be banished from the feast?

Bringing something to the table is a simplistic concept with many implications. If a rain maker (or door opener) brings in more than his share of business, does he have license to ask how much the others are bringing to the table? This view can be disruptive. In terms of corporate culture, this approach causes anxiety and stress. Team spirit is replaced by “survival of the fittest.”

In the old days when basketball only tracked points made, the other aspects of the game were largely ignored. More metrics now note contributions to team play like assists, steals, blocks, charges taken, playing minutes, defense, and number of touches. Is there a way to measure what a good finance and accounting person brings to the table? Assuming corporate contribution is not limited to revenues, what about timely reports, research, and enhancing customer relationships? What about the support staff that improves cost efficiency, credit ratings, and brand enhancement.
Focusing just on table contribution can warp perception of who enhances the company’s real value. It focuses on individual (and selfish) play rather than teamwork. There is then a credit-grabbing culture that is espoused. A reward system based solely on bringing in business ignores the follow-through activities of nurturing the customer and building enduring relationships.

Imagine a basketball team which rewards only points made. Five players will just keep trying to shoot the ball without looking to pass and defend. Instead of asking what anybody brings to the table, it is better to check how big the table has become with everybody’s efforts and what kind of meal is being served.

An enjoyable conversation around the table is a contribution that is offered by the leader — who after all provided the table.

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Davao construction company bags another port expansion contract

December 5, 2024 | 12:01 am

A DAVAO-BASED company has secured the contract for the expansion of the Masbate port, the Philippine Ports Authority (PPA) said.

In a notice of award posted on its website, the PPA announced that Khan Kon Chi Construction Development Corp. won the P161.74-million contract.

The same company secured the contract for the P839.18-million Currimao Port expansion project.

The company will have 450 days to complete the Masbate port expansion, the PPA said, noting that at least eight companies submitted proposals for the project.

Aside from Khan Kon Chi Construction, the companies that submitted bids for the project include Grace Construction Corp., SB Construction Corp., Sunwest, Inc., MAC Builders Corp., the joint venture of JFAP Construction and NBCDC Corp., Luzviminda Engineering, and Frey-Fil Corp.

Last week, the port regulator also awarded the contract to restore another port in Masbate, the Esperanza Port, to a Bataan-based construction company, Jejor’s Construction Corp. and NBCDC Corp.

The PPA is working with private companies for the rehabilitation and expansion of its ports.

Over the next four years, the PPA is allocating approximately P16 billion to fund its projects, including 14 flagship projects slated for completion within this period. — Ashley Erika O. Jose

World wine production set for new 60-year low on weather woes, OIV says

December 5, 2024 | 12:01 am

glass-red-wine-bottle-bar-counter — FREEPIK

PARIS — World wine output is on course to hit another 60-year low in 2024 as vineyards in both the northern and southern hemispheres endured adverse weather as they did last year, the International Organization of Vine and Wine (OIV) said on Friday.

In its first global projections for 2024, the OIV pegged world wine output, excluding juices and musts, at between 227 million and 235 million hectoliters (mhl), with a mid-range estimate of 231 mhl.

The mid-range figure was 2% lower than last year’s output and the smallest since 1961, the OIV said. A hectoliter is the equivalent of 133 standard wine bottles.

“Globally, 2024 appears to be a re-run of 2023,” the OIV said in a note.

“As with 2023, extreme or atypical meteorological events are the key influence on global production, with early frosts, heavy rainfall, and prolonged drought dramatically impacting vineyard productivity.”

In the European Union (EU), home to the world’s three largest wine-producing countries — France, Italy and Spain — output was estimated at 139 mhl, down 3% from last year and the lowest level this century, according to the OIV.

France led the decline in the EU, with its production expected to fall by around a quarter, after weather setbacks ranging from torrential rain, limited sunshine, and hail.

An expected recovery in Italy from last year’s weak level should let the country reclaim the position of biggest wine producer from France, the OIV said.

In the United States, the world’s fourth-largest producer, 2024 output was forecast to be down 3% from last year though marginally above the five-year average, the body said.

In the southern hemisphere, overall output was estimated down 2% year on year at 46 mhl and the lowest in two decades, with declines in Australia, China, and South Africa offsetting a rebound in Argentina, the OIV said.

The declining production trend globally underscored the sector’s vulnerability to climate change, though in the short term the reduced supply may help balance a market faced with decreasing consumption and high inventories, it added. — Reuters

Pacific Cross Philippines appoints new president

December 5, 2024 | 12:01 am

PACIFIC CROSS Philippines, which operates nonlife firm Pacific Cross Insurance, Inc. and health maintenance organization Pacific Cross Health Care, Inc., has appointed Robert D. Wyld as its new president and chief executive officer (CEO), the companies said on Wednesday.

“I am deeply honored to lead Pacific Cross Philippines as we embark on this exciting new chapter. With the incredible team here, I look forward to building on the company’s strong foundation, driving growth, and ensuring we continue to provide world-class insurance solutions that adapt to our clients’ ever-evolving needs,” Mr. Wyld said in a statement.

Mr. Wyld, who is currently the CEO of Pacific Cross Vietnam, has over four decades of experience in the insurance industry, both in Asian and European markets.

“Throughout his career, Robert has demonstrated leadership by consistently driving growth and achieving remarkable results across diverse roles in the insurance industry. With a proven ability to transform businesses, he has led organizations to expand their market presence, exceed revenue targets, and establish strong industry partnerships,” Pacific Cross Philippines said.

“His leadership philosophy centers on building dynamic teams, fostering innovation, and delivering exceptional customer value — qualities that align perfectly with Pacific Cross Philippines’ vision for the future,” it added.

Mr. Wyld was also previously chief distribution officer for Asia at Pacific Cross International, where he helped the company reach record-high revenue growths for two consecutive years.

“As Pacific Cross Philippines moves forward under Robert’s leadership, the company remains steadfast in its commitment to offering dependable health and travel insurance solutions tailored to the needs of individuals, families, and businesses in the Philippines and beyond,” the company said.

Pacific Cross Insurance booked a net income of P12.31 million in 2023, data from the Insurance Commission (IC) showed. Premiums earned stood at P2.68 billion, with net premiums written at P2.72 billion and gross premiums written at P2.79 billion.

Meanwhile, Pacific Cross Healthcare posted a net loss of P41.93 million as of end-September, based on the latest IC data. — AMCS

Sizzling valuations are no bar for Asia data center deals as AI growth beckons

December 5, 2024 | 12:01 am

SINGAPORE/HONG KONG/SYDNEY — Global investors are queueing up to invest in data center operators in Asia-Pacific either by buying stakes directly or via public offerings, unfazed by their rich valuations that are driven by demand for artificial intelligence (AI)-based services.

Many industry executives say the regional data centers will continue to command high valuations due to the nascent nature of the industry and its growth outlook. Some, though, say a lack of robust infrastructure could cast a cloud on their outlook.

Data centers house computer servers and equipment that companies use to process and store data.

A valuation benchmark for the sector was set in September when a consortium led by alternative asset manager Blackstone agreed to buy Australian data center group AirTrunk for an implied enterprise value of over A$24 billion ($15.58 billion), or over 20 times the target’s forward core earnings.

The process to sell a minority stake in Indonesian data center NeutraDC, for example, has attracted interest from Singapore Telecommunications (Singtel) and BDx Data Centers, among others, two sources with direct knowledge of the matter said.

A sale of roughly 20% to 30% stake in the data center arm of Indonesian state-owned communication company Telkom, which kicked off in October, could value the business at more than $1 billion, sources have said.

Brokerage BRI Danareksa Sekuritas’ analyst Niko Margaronis said NeutraDC could be valued at more than 20 times core earnings helped by factors including a capacity expansion plan to reach 500 megawatts (MW) by 2028 to 2030, from around 60 MW by end-2024.

Telkom group spokesperson Ahmad Reza told Reuters the sale process is “underway and progressing well.” He declined to comment on details including valuations, stake sale size and parties interested.

BDx, an Asia-Pacific data center operator backed by US-headquartered I Square Capital, declined to comment. Singtel did not respond to requests seeking comment.

In another example, Australia’s HMC Capital said on Nov. 21 that strong interest from investors had led the company to upsize the initial public offering (IPO) of its data centers business DigiCo REIT by A$100 million to A$2.75 billion.

The listing, Australia’s largest this year and scheduled to debut on the local bourse on Dec. 12, translates into a valuation of 26 times forward earnings, according to DigiCo’s IPO prospectus.

The new valuation benchmark for data center deals compares with average market-wide multiple of around 16 times core earnings in the broader private infrastructure deals globally, according to asset intelligence and data company Realfin.

“Valuations of data center assets are reflective of the rapid growth currently being experienced by the sector, driven by large orders from hyperscale customers,” said Manjit Balgir, Bank of America’s Asia telecom and digital infrastructure head.

EXECUTION RISKS REMAIN
The AirTrunk deal has propelled Asia-Pacific to the top of the M&A league table in the global data center market this year, with deal value totaling $17.03 billion, more than half of the global transactions, LSEG data showed.

The high valuations for the sector in Asia are partly linked to the nascent nature of the business in the region, and to data center operators adding more capacity as countries and companies respond to booming demand for AI.

“If someone comes and gives you a one-gigawatt contract, you’re probably doubling or more than doubling the capacity,” said KKR’s Director Projesh Banerjea, referring to the still-nascent state of the data center market in Asia.

KKR bought a 20% stake in the Asian data center of Singtel for S$1.1 billion ($818.64 million) last year and partnered Singtel to invest S$1.75 billion in ST Telemedia Global Data centers in June. Earnings multiples for the deal were not disclosed.

The sustainability of the valuation premium in the coming years, however, will be tested by execution risks in markets where power capacity and infrastructure are inadequate, some investors said.

Reliability on the actual delivery of data centers will become a lot more critical for tenants, said Gilles Chow, CPP Investments’ managing director and head of real estate for North Asia.

“Ultimately we see Asia-Pacific data center markets remaining a positive growth story in the medium term but anticipate that growth in the sector may cool a little as capacity comes online,” said Charlie Wilson, Asia M&A and private equity head at law firm Sidley Austin. — Reuters

Philippines worsens in the Anti-Money Laundering Index

December 5, 2024 | 12:00 am

THE PHILIPPINES’ SCORE in a global anti-money laundering index worsened as its ranking declined to the 49^th place out of 164 countries. Read the full story.

How PSEi member stocks performed — December 4, 2024

December 5, 2024 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, December 4, 2024.

VP Sara faces second impeachment rap

December 4, 2024 | 9:15 pm

VP impeach — AT LEAST 75 representatives from various organizations and progressive groups hand over to House Secretary-General Reginald S. Velasco the second impeachment complaint against Vice-President Sara Z. Duterte-Carpio at the House of Representatives in Quezon City on Wednesday. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio, Reporter

ANOTHER complaint seeking the ouster of Philippine Vice-President (VP) Sara Z. Duterte-Carpio was filed at the House of Representatives on Wednesday, triggered by what progressive group leaders describe as her gross abuse of power while in office.

This is the second impeachment charge against the embattled vice-president within the week. Critics of Ms. Duterte said her failure to account for public fund spending has paved the way for moves seeking her removal from office.

A total of 75 complainants are seeking Ms. Duterte’s impeachment, including political leaders, student representatives, human rights advocates, and sectoral groups, citing betrayal of public trust due to her alleged “gross abuse of discretionary powers” over her secret fund use in 2022 and 2023.

The complaint was endorsed by Party-list Reps. Raoul Danniel A. Manuel, France L. Castro, and Arlene D. Brosas, members of a House minority bloc.

The Office of the Vice-President did not immediately respond to an e-mail seeking comment on the impeachment complaint’s allegations.

“We accuse Vice-President Sara Duterte of betraying public trust,” Teodoro A. Casiño, chairman of political group Bayan Muna and among Wednesday’s complainants, said in a media briefing before the filing in Filipino.

“By misusing P612.5 million in confidential funds from the Office of the Vice-President and the Department of Education. This was used for improper purposes in improper ways,” he added, noting Ms. Duterte also covered up the misuse of public funds through “fake receipts, fabricated acknowledgment receipts, and false documents submitted to the Commission on Audit.”

Mr. Casiño also cited the Vice-President’s refusal to recognize Congress’ authority to investigate fund use as well as efforts to prevent the chamber from performing its oversight functions.

Impeachment complaints against Ms. Duterte have been submitted at the House despite President Ferdinand R. Marcos, Jr. discouraging it. While some congressmen from the majority have said they would toe the president’s line, civil groups and minority lawmakers remain adamant for her removal.

The filing of impeachment complaints against Ms. Duterte comes against the backdrop of a widening political rift between two of the country’s most influential clans. The falling out of the Dutertes and Marcoses has resulted in the collapse of what was once a formidable electoral alliance that delivered them landslide wins in the 2022 elections.

The first impeachment complaint, filed on Monday, cited 24 grounds containing allegations of graft and corruption, bribery, and betrayal of public trust among other crimes.

Under the 1987 Constitution, grounds for impeachment include treason, bribery, graft and corruption, high crimes or betrayal of public trust.

Impeachment counsel Neri J. Colmenares explained the second complaint only cited betrayal of public trust to allow them to focus on one issue and establish “solid” evidence.

“Right from the start, we said that the evidence needs to be solid. So, we cited the most catch-all ground, which is the betrayal of public trust, and we’ll focus on the most blatant issue, which is Ms. Duterte’s use of confidential funds,” he told reporters in Filipino after the complaint’s filing.

Aside from Ms. Duterte’s alleged misuse of secret funds, Wednesday’s complainants accused her of undermining the auditing process, making her unfit for office. They also claimed that her “willful refusal” to attend congressional investigations also constituted a betrayal of public trust.

The vice-president has been the subject of a House investigation on her spending of P612.5 million worth of confidential and intelligence funds in 2023 since she broke away from the Marcos administration in June, when she resigned from the Cabinet.

Ms. Duterte denies any wrongdoing stemming from the probe, alleging it is politically charged and could be laying the groundwork for her ouster.

Mr. Colmenares said they fielded a “simple” article for Ms. Duterte’s impeachment so Congress could easily deliberate their accusations. “I hope there will be a decision and, of course, a conviction by January 2025 so that the accountability mechanism for public officials can be seen by the people.”

Midterm elections are scheduled for next year, casting doubts on the viability of the complaint as an impeachment process could drag out and take months.

“The impeachment complaint should be expedited because we know, and we’re not blind, that the elections are approaching,” said Mr. Colmenares.

Political analysts said that the upcoming elections could affect how lawmakers would proceed with Ms. Duterte’s impeachment complaint.

“The combination of the upcoming elections and the holding of the impeachment proceedings will be an opportune time to assess [lawmakers’] political alignment,” Dennis C. Coronacion, chairman of the University of Sto. Tomas’ Political Science department, said in a Facebook Messenger chat.

Lawmakers are likely on the fence on the impeachment complaint against Ms. Duterte, citing the need to carefully consider whether they’d gain or lose votes from their stance on the matter, Anthony Lawrence A. Borja, an associate political science professor at the De La Salle University, said in a Facebook chat.

The House will first hear the complaint, requiring one-third of its members, or at least 102 congressmen, to agree with the impeachment rap before the case is elevated to the Senate for trial. The chamber is headed by Speaker Ferdinand Martin G. Romualdez, a cousin of the president.

The embattled Dutertes have a few allies in the Senate, whose members include former President Rodrigo R. Duterte’s ex-police chief and former chief presidential aide. At least 16 senators need to find Ms. Duterte guilty of the alleged violations to be convicted.