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Pele is depressed, reclusive due to health issues, says son

SAO PAULO — Brazilian soccer great Pele is depressed over his poor health and reluctant to leave the house because he cannot walk unaided, his son Edinho said in an interview published in Brazil on Monday.

Pele, widely considered to be one of the greatest footballers in history and who will be 80 in October, has had hip trouble for years and now needs a frame to walk. Many of his recent public appearances have been in a wheelchair.

“He’s pretty fragile. He had a hip replacement and didn’t have an adequate or ideal rehabilitation,” Edinho told TV Globo.

“So he has this problem with mobility and that has set off a kind of depression. Imagine, he’s the King, he was always such an imposing figure and today he can’t walk properly.

“He’s embarrassed, he doesn’t want to go out, be seen, or do practically anything that involves leaving the house,” his son added. “He is very sheepish, reclusive.”

Edinho said he had argued with his father because he had not done the physiotherapy called for after a hip operation.

Pele, the only player to win three World Cups, spent most of his career with Brazilian team Santos before moving to New York Cosmos in the 1970s.

This summer will mark the 50th anniversary of the striker’s third World Cup title, won in Mexico in 1970 with what many people believe is the greatest team of all time. — Reuters

Mineski Global and PCCL sign pact for collegiate esports partnership

MINESKI Global, the pioneer esports company in Southeast Asia, recently signed a landmark contract with the Philippine Collegiate Champions League (PCCL) to create a sustainable, consistent, and widely accessible esports program exclusively for Philippine schools and universities.

The contract signing was held in Mineski Global’s headquarters at Santolan Town Plaza, San Juan City, on Feb. 7 to fast-track the grassroots and school-based development program for esports.

With the partnership, Mineski Global’s advocacy of responsible gaming, along with high-octane esports action will be in the spotlight.

The PCCL-Mineski esports partnership also hopes to promote a sustainable esports community all over the Philippines.

“It’s time to show everyone that esports represent a viable career option, inclusive, and that it should be accorded the same treatment as regular sports. Both PCCL and Mineski are mindful of our responsibility to promote positive values through esports and games,” said Mineski Global CEO and founder Ronald Robins during the contract signing.

PCCL chairman Reynaldo D. Gamboa stated that the inclusion of esports at the recent Southeast Asian Games, where Filipino student-athletes performed well against the best gamers in the region, was an eye-opener.

Two towers less

When Season 45 of the Philippine Basketball Association unfurls on March 8 the landscape will be different as two of its “towers” are not around. And I mean that literally.

This as San Miguel big man June Mar Fajardo and his Barangay Ginebra counterpart Greg Slaughter are set to miss the season-opening tournament Philippine Cup, and even beyond, for varying reasons.

Five-time league most valuable player Fajardo is out as he recovers from a leg injury after fracturing his right tibia in their practice last week.

He had surgery on Feb. 4 and was ruled out indefinitely.

Slaughter, meanwhile, surprised many at the weekend after announcing on his social media accounts that he is going “to take a break” from playing in the local pro league to work on aspects of himself after his contract with the Gin Kings recently expired. He was with the team for six years.

Fajardo’s situation is really unfortunate especially since he expressed to this writer how was looking forward to getting their campaign going in Season 45.

I had a chance to talk to the “Kraken” a couple of weeks back at the launch of the 2020 edition of the Philippines Yearbook on the 50 greatest Filipino athletes of all-time, wherein he is one of those feted and he shared that he was determined to get back to work.

He cited how they ended last season as one of the motivations for him.

In a position anew to win a rare PBA grand slam after bagging the first two conferences of the season, the Beermen failed to move past the quarterfinals of the season-ending Governors’ Cup, eliminated by eventual champion Barangay Ginebra.

It marked the second time that Fajardo felt such a sting after being in the same position in 2017.

He was also excited to get back to action after having an extensive vacation following their early Governors’ Cup elimination.

Fajardo shared that he really took time to rest his body after what he deemed to be eight straight years of playing basketball in the PBA and the national team.

His goal moving forward was to continue building on what he and his team have accomplished to date, including winning a sixth straight Philippine Cup title this season.

Then the horrifying injury happened on Feb. 3 in their practice at the Acropolis Greens gym in what published reports said took place just as the team was about to call it a day in practice.

Slaughter’s case, meanwhile, caught me by surprise like most in the PBA-dom.

Coming from another title conquest in the last conference, you would think “Greg-zilla” was to say and continue to roll with the Kings.

Then again, admittedly Slaughter’s stay with Barangay Ginebra was a “polarizing” one with some arguing that the big man, while doing things here and there, was not progressing as envisioned when he was drafted by the team in 2013, and that the Kings would be better off turning their attention to other players instead.

It did not help either that prior to his announcement, Slaughter was rumored to be on the trading block, particularly for Northport big man Christian Standhardinger.

He did not categorically say if that was the reason for his decision to go into sabbatical but he did vow to come back better with the “best yet to come.”

Now, sans these two towers it is going to be interesting how the rest of the league would fashion out their campaigns, and how the whole PBA landscape would shape up in Season 45.

Considering what Fajardo and Slaughter bring not only with their size, them out means two big thorns removed on the side of opposing teams on both ends of the court.

While this does not necessarily saying that the bids of San Miguel and Barangay Ginebra are already doomed, since they remain formidable and champion-caliber even without their bigs, still they would have to adjust their respective attacks with what they have at their current disposal, which at this point needs to be seen whether they succeed in it or not.

To Fajardo, prayers for your speedy and successful recovery, and, to Slaughter, may you find what you are looking for as you step away from the game.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@bworldonline.com

Ready, willing, able

For much of the 2019–20 season, the Raptors have had to prep for matches without a full roster. In this regard, yesterday was the same old, same old for them: While All-Star Kyle Lowry managed to play after missing a game over the weekend in compliance with the league’s concussion protocol, fellow starter Serge Ibaka wound up staying in the sidelines due to flu-like symptoms. Still, their mindset stayed the same as they prepped to host the Timberwolves. They’re the defending champions, and, regardless of circumstance, they have more than enough to win.

That the Raptors were proven right at the final buzzer speaks volumes of their resiliency. They didn’t have a perfect outing, committing 28 turnovers and 26 fouls to hand the Timberwolves 34 points and 35 free throws — numbers that would normally have had them absorbing a setback. Instead, they prevailed, and in double digits to boot, on the strength of outstanding shooting backstopped by solid coverages; even as they canned 51.5% of their trey tries and 57.3% of their aggregate field-goal attempts, they forced the opposition to a season-worst 24 turnovers, 10 by new acquisitions DeAngelo Russell and Malik Beasley and six by resident leader Karl-Anthony Towns, good for 26 points.

Significantly, decisiveness has been key for the Raptors. For all the talk of them being rudderless following the departure of Finals Most Valuable Player Kawhi Leonard in the off-season, they’ve actually become even more purposeful in their actions on the court. They simply know what to do with the ball when they have it, and what to do, period, when they don’t. With Lowry continuing to provide leadership and just about everybody else, including reigning Most Improved Player Pascal Siakam, becoming even better, they’ve figured out how to be greater than the sum of their parts every single time out.

Can the Raptors truly contend, though? With the Bucks running roughshod and the Celtics, Heat, and, yes, Sixers still posing threats in a long series, going deep in the playoffs and emerging as East titleholders anew remain big ifs. Then again, they’ve answered the only query that matters at this point: They’re ready, willing, and able — no matter what happens, and no matter who stands in their way. The Larry O’Brien Trophy sits on their mantel, and they’re bent on keeping it there.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

E-commerce enabler Great Deals raises Php 600 million from Navegar

Philippines-based Great Deals E-commerce Corp. has raised $12 million (roughly P600 million) from Navegar, the largest private equity firm in the country.

The agreement was inked on January 23, 2020 and was attended by Great Deals E-commerce Corp. Founder & CEO Steve Sy and Navegar’s Managing Partner Javier Infante, along with their respective teams and advisors.

Great Deals plans to use the funds on capital investments, which will enhance its IT, infrastructure, warehouse capabilities, and technology solutions as it aggressively expands its presence in the country. The company aims to be the Philippine Alibaba and Baozun, China’s leading e-commerce enabler.

“We are ecstatic to continue building and implementing successful online retail, distribution and marketing strategies for our 250+ brand clients in partnership with Navegar,” said Great Deal’s Sy. “To dominate the market here in the Philippines, we will work closely with Navegar, whose vast experience in building high-growth companies will ensure the continued expansion of our business.”

Sy founded Great Deals in 2014 when — after years as an entrepreneur in the retail and e-commerce sectors — he saw a glaring need to enable entrepreneurs like himself to succeed in the digital economy. Great Deals offers end-to-end e-commerce services, and handles digital content, web design, analytics, chat support, warehousing, and fulfilment. It made headlines in 2018 when it dispatched a record-breaking 114,165 orders in one day. It has since surpassed its own record by facilitating 233,038 orders in a single day last year. Their clientele includes multi-national companies Reckitt Benckiser, Nestle, Samsonite, Reebok, Crocs, L’Oreal, Abbott, and Unilever.

Great Deal’s new investor Navegar is a private equity fund that invests exclusively in Philippine companies, collaborating with founders and management teams to create long-term shareholder value. Founded in 2012 by its Managing Partners Nori Poblador and Javier Infante, Navegar manages two pools of money with nearly $300 million in assets under management.

“We are big believers in Steve Sy,” Infante said. “His management style, charisma, marketing savvy and integrity form the bedrock of this company. We also like the fact that e-commerce has tremendous potential in this country. The Philippines has very low e-commerce penetration, at less than 2% of gross domestic product, compared to China’s nearly 40% and 25% in the U.S (according to Forbes). There is no way to go but up for smart Philippines e-commerce. It is just the beginning. The best way for an investor to participate in this upswing is to partner with a successful business that has already established strong relationships with top brands in the market.”

“E-commerce is a sunrise industry in the Philippines, and there are so many looming on the horizon,” Sy said. “Our mission, in Great Deals, is to uplift Filipino lives through the digital economy, harnessing local technology, human resources and boundless creativity to bring the best we can offer to the Philippines.”

Mastering the basics and gearing up for the SMART City revolution

Master the basics first. That was one of the core messages emphasized last Friday at the sidelines of the 3rd GAIN National Convention.

Its organizer, the Government-Academe-Industry Network, Inc. (GAIN), is a non-profit created to identify and deal with workforce issues that can be resolved through the synergy of the government, academe, and industry.

According to GAIN, Inc. President and TeamAsia Founder Monette Iturralde-Hamlin, the organization was conceived a few years ago by collaborative players in the government, academe, and industry sectors as a response to the country’s drop in English proficiency — to steer, strengthen, and safeguard the competitiveness of the Filipino.

Their first convention in 2018 centered on the theme of producing globally competitive individuals ready to tackle the fourth industrial revolution. An offshoot was a proposal for a law to set English standards, as well as a bill for global competitiveness filed by then-Senator Pia Cayetano.

This year’s theme, “The Future Workforce and Graduates for the SMART City Revolution: Towards Global Competitiveness and Human Capital Development,” tackled technology’s prevalence in today’s business environment and its impact on the Philippines’ global competitiveness and human capital development. Various discussions honed in on the need to transform Philippine cities and infrastructure to be able to provide faster and more efficient services at par with the ASEAN Smart Cities Network, attract more foreign investment, and create more local job opportunities.

Doing the basics well

Grace Abella-Zata, CEO of thought leadership platform IRC Institute, explains that our integration into the Smart Cities Framework is crucial because of ASEAN’s high growth rates. Such an integration will help solve issues like congestion and ensure that no one gets left behind.

It’s not all about integrating technology into our processes, however. Factors such as soft skills are just as important. “If we really want to succeed, we must equip our people with the right skills,” Hamlin says. One’s readiness to learn and ability to work with people are just as important as intelligence and digital literacy. There is a preference among companies to collaborate with those who can work in teams, influence decisions, and foster leadership.

Then there is also the matter of doing the basics well. The country recently participated in a worldwide study by the Organisation for Economic Cooperation and Development that examines students’ knowledge in reading, mathematics, and science. According to the results released on December 3, 2019, the Philippines scored the lowest in reading comprehension and the second-lowest in mathematics and science. The Department of Education welcomed these results in a statement that read, “By participating in the Programme for International Student Assessment (PISA), we will be able to establish our baseline in relation to global standards, and benchmark the effectiveness of our reforms moving forward. The PISA results, along with our own assessments and studies, will aid in policy formulation, planning, and programming.”

Dr. Peter Laurel, President of Lyceum of the Philippines University – Batangas and Laguna, agrees with this view as he emphasizes the need for mastering the basics and benchmarking with internationally recognized standards. “We can’t aspire for lofty if we can’t do the basics well.”

All four resource persons are keen on developing and implementing practical resolutions to ensure the credibility and efficiency of Filipino employees in the workforce. “There are a lot of positive initiatives that are happening right now,” Zata notes. “Let’s get going while we wait for the infrastructure to happen.”

Export growth strongest in more than two years in December

OVERSEAS SALES of Philippine goods grew at its fastest pace in more than two years in December, narrowing the country’s trade deficit that month as imports continued to decline, the Philippine Statistics Authority (PSA) reported this morning.

Preliminary PSA data showed value of merchandise exports picking up by 21.4% annually to $5.74 billion in December – the fastest since July 2017’s 21.9% – compared to a revised 12.2% year-on-year decline to $4.73 billion recorded in December 2018.

December export figures drove the full-year 2019 tally to $70.33 billion, up 1.5% from the $69.31 billion in 2018’s comparable 12 months and surpassing the one-percent target set by the Development Budget Coordination Committee (DBCC) for 2019.

Meanwhile, merchandise imports were valued at $8.22 billion in December, down 7.6% from $8.90 billion in December 2018.

The import bill was down 4.8% to $107.37 billion for full-year 2019 against the DBCC’s two-percent target set for the year.

The trade-in-goods deficit in December figured at $2.48 billion compared to a $4.17-billion trade gap in the same month in 2018. Cumulatively, the trade deficit reached $37.05 billion, smaller than the $43.53-billion gap in January-December 2018. — JEH

November FDI flows sustain rally

By Luz Wendy T. Noble

FOREIGN DIRECT INVESTMENTS (FDI) continued to recover for the second straight month in November after months of drought, though still down during the 11-month period from a year earlier, according to the Philippine central bank.

FDI net inflows in November rose 14.6% to $623 million from a year earlier, data released by the Bangko Sentral ng Pilipinas on Tuesday showed.

Net FDI flows had declined for seven months through September.

However, November inflows fell by 7.29% from $672 million in October.

“Concerns over the global economic outlook continued to curb FDI as investor confidence remained muted,” the central bank said in a statement.

BSP traced the November net inflow pickup to the growth in all FDI components.

Net investments in debt instruments consisting mainly of intercompany borrowing and lending between foreign direct investors and their units in the Philippines posted net inflows of $380 million from $341 million in November last year, BSP said.

In November, equity other than reinvested earnings climbed by 12.9% to $155 million from the previous year. This was after gross placements grew by 17% to $174 million, while withdrawals jumped by 66% to $19 million, data showed.

“The bulk of equity capital placements were sourced mainly from the United States, Thailand, Japan, and South Korea,” the central bank said.

These investments were channeled mostly to the financial, insurance and real estate industries, it said.

Meanwhile, reinvestment of earnings grew by more than a third to $88 million from a year earlier.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said FDI growth could have come from improved market sentiments about the US-China trade deal.

“Note that the talk of a ‘phase 1’ trade deal between the US and China began in October 2019 which was later on signed in January 2020,” he said in an e-mailed reply to questions.

US President Donald J. Trump in October outlined the coverage of the first phase of their trade deal which China, which covered Chinese agricultural purchases from the US and some aspects of intellectual property protections.

“It is significant that the potential of a trade deal between the two biggest world economies began in October and most likely affecting the general atmosphere of global trade including world markets,” Mr. Asuncion said.

Robert Dan J. Roces, chief economist at Security Bank Corp., attributed the FDI inflow increase to local developments.

“FDI November print validates the growth figures we got for the fourth quarter of 2019, where FDI may be associated with improved growth on the back of capital influx, better tax revenues and steady employment growth,” he said in an e-mail.

Foreign direct investments were still down by 29.9% to $6.413 billion in the 11 months through November from a year earlier, data showed.

Equity other than reinvested earnings during the 11 months fell by almost two-thirds to $845 million.

This came on the back of a 41.3% drop in placements to $1.493 billion, while withdrawals surged by 59% to $648 million from the previous year.

BSP said equity capital placements during the 11-month period mostly came from Japan, US, Singapore, China and South Korea.

“These capital infusions were invested primarily in the financial and insurance, real estate, and manufacturing industries,” it said.

Meanwhile, reinvested earnings grew by 14.4% to $913 million from a year earlier.

However, January to November FDI in debt instruments fell by a quarter to $4.655 billion from the previous year.

2019 GOAL
The BSP had targeted $6.8 billion worth of FDIs last year.

UnionBank’s Mr. Asuncion said the goal could have been achieved amid “improved global trade prospects.”

Victor A. Abola, a professor at the University of Asia and the Pacific, said the target was within reach because “it’s only about $400 million short, which is not going to be a problem.”

But Mr. Abola said the almost 30% year-to-date drop in FDI inflows was “quite sizable.”

“Foreign investors are looking for incentives in the Philippines because of our natural deficiencies — high labor and power costs and poor infrastructure,” he said by telephone. “All of those negatives have to be offset by something for us to be competitive.”

Mr. Abola said the 11-month decline reflected the investment environment and pointed to “taxation and regulatory issues” that may have led investors to adopt a wait-and-see attitude.

The Corporate Income Tax and Incentives Rationalization Act, which seeks to gradually cut the corporate income tax to 20% from 30%, is targeted to be passed by March this year. It has been pending in the Senate since October.

A government review of water contracts may have also made investors wary because the sanctity of contracts is important to them, Mr. Abola said.

OSG asks high tribunal to cancel ABS-CBN franchise

THE country’s chief government lawyer has asked the Supreme Court to revoke the franchise of a media network critical of President Rodrigo R. Duterte, accusing it of “highly abusive practices.”

Solicitor General (OSG) Jose C. Calida in a statement on Monday said his office had filed a lawsuit accusing ABS-CBN Corp. of violating several laws, including one against foreign ownership in media.

ABS-CBN shares fell 30 centavos to P16.70 at the close of trading yesterday.

“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefiting a greedy few at the expense of millions of its loyal subscribers,” he said in a statement.

“These practices have gone unnoticed or were disregarded for years.”

The media network called the lawsuit “an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service.”

“ABS-CBN complies with all pertinent laws governing its franchise and has secured all necessary government and regulatory approvals for its business operations,” it said in an e-mailed statement.

Senator Grace S. Poe-Llamanzares said her committee on public services would hear the broadcast giant’s application to extend its 25-year franchise, which will expire next month.

“As the Constitution mandates, the Senate’s jurisdiction over franchises remains despite the existence of the petition,” she said in a statement.

“I trust the court will decide on the basis of fairness and for the interest of the greatest number of people,” she added.

Presidential spokesperson Salvador S. Panelo said at a briefing Mr. Duterte had nothing to do with the lawsuit.

“There is a basis for his expression of displeasure,” he said, referring to Mr. Duterte’s attacks on the network in the past. “But it doesn’t mean he had anything to do with the petition.”

Mr. Duterte had accused ABS-CBN of refusing to air his campaign ad during the 2016 elections.

Mr. Calida accused ABS-CBN of using an “elaborately crafted corporate veil” to allow foreign investors to take part in its ownership. The lawyer had also accused Rappler, a news website similarly critical of the Duterte administration, of allowing foreign ownership that the 1987 Constitution bars.

Like Rappler, ABS-CBN allegedly violated the ownership restriction when it issued Philippine depositary receipts to foreigners.

The financial instruments allow foreign funds to buy into the company, allowing it to raise funds globally.

‘VINDICTIVE MOVE’
ABS-CBN also went beyond the scope of its legislative franchise by “broadcasting for a fee,” Mr. Calida said. The company allegedly launched and operated a pay-per-view channel in ABS-CBN TV Plus, the KBO Channel, without regulatory approval.

Unit ABS-CBN Convergence, Inc. had also resorted to an “ingenious corporate layering scheme” in order to transfer its franchise without congressional approval, he said.

It also failed to list its shares on the Philippine Stock Exchange within five years, which was a condition of its franchise, Mr. Calida said.

Eleven bills seeking to extend the franchise have been filed at the House of Representatives and one at the Senate.

Ms. Llamanzares said Mr. Calida’s lawsuit only applies to ABS-CBN’s current franchise. “What we will give them now, just in case, is a franchise from 2020,” she told reporters in Filipino.

Senator Risa N. Hontiveros called the lawsuit “a vindictive move against critical journalism.”

Senator Juan Miguel F. Zubiri, a Duterte ally, told a separate briefing most senators have expressed support for the franchise extension.

“Technically, we can pass the measure in three weeks,” he said.

Cagayan de Oro Rep. Rufus B. Rodriguez called Mr. Calida’s lawsuit an “unconstitutional encroachment of the exclusive power of Congress to grant franchises.”

Albay Rep. Edcel C. Lagman, one of the lawmakers who filed a resolution seeking the franchise extension, said the suit was “unwarranted and misplaced.”

He also said the case should have been filed before a trial court because it involves factual questions that the high court was incapable of resolving.

Congress will go on a two-month Holy Week break starting March 14. — Charmaine A. Tadalan, Gillian M. Cortez and Genshen L. Espedido

Outsourcing subsectors cut growth targets through 2022 amid hurdles

SEVERAL outsourcing subsectors cut their revenue targets across-the-board after the industry lowered its growth figures under a road map through 2022 due to geopolitical challenges, protectionism and automation.

Information technology (IT) and software trails the other subsectors with a 2.7-6.2% annual revenue growth target from 2019 to 2022, lower than its original 11.4% goal, the Information Technology and Business Process Association of the Philippines (IBPAP) said in a report on Monday.

The industry in November cut its revenue target to a compound annual growth of 3.5-7.5% from 9.2% set in 2016, based on a study conducted by the Everest Group.

The Philippine Software Association of the Philippines will hold seminars for academe and industry professionals and participate in IT events in Japan to strengthen the two countries’ investment relationship, IBPAP said.

Global in-house centers lowered their revenue goal to 3.2-5.2% from 8.4% set in 2016, while contact centers and business processing cut theirs to 3.3-7.4% from 8.2%.

Revenue projections of two subsectors were still higher than the industry goal despite the cuts.

Health information management set a target of 7.3-10.8% from 13%, while animation and game development’s new goal fell to 6.8-11.7% from 14%, according to the report.

These two subsectors are smaller than their peers. Juan Miguel del Rosario, president of the Animation Council of the Philippines, Inc. (ACPI), earlier said animation has a low base, making up a small fraction of the $20-billion outsourcing industry that employs a million workers.

“While contact center and business processing, global in-house centers, and IT and software remain as the biggest subsectors, the recalibration highlights that healthcare information management, animation and game development will grow at a higher rate than the overall Philippine IT-BPM industry,” IBPAP said in a statement.

The animation subsector will provide more technical and vocational training and participate in animation festivals, it said.

“ACPI is also currently putting together a large-scale multi-year training program for artists outside of Metro Manila to make them globally competitive as independent content developers or service providers working in animation studios locally and abroad,” the group said.

The game development association had signed an agreement with the Computer Graphics Arts Society of Japan to localize a computer graphics exam and improve local skills.

The health management sector is also investing in training programs and will participate in US road shows, IBPAP said.

To encourage more growth, IBPAP said it would invest in a reskilling program, allocate resources for country branding to attract investors, participate in public-private collaborations and promote ease of doing business and infrastructure development to boost the industry outside Manila, the capital.

Health information management expects annual job growth of 6.8-10.2% from 2019 to 2022, while animation and game development expects growth of 6.8-11.7%. These were lower than their original job growth rates of 10.1% and 13.3%.

Contact centers and business processing expect job growth of 2.8-6.7% (from 7.9% in 2016), IT and software at 2.7-6.2% (from 9%) and global in-house centers at 2.7-4.7% (from 3.9%).

The overall annual job growth target was lowered to 3-7% from 7.8%.

“The future of the sector remains clear when it comes to securing its continued growth,” IBPAP President and Chief Executive Officer Rey C. Untal said in the statement.

“Following the action plans that we presented during the summit, IBPAP has already initiated talks with different stakeholders of the industry to ensure that we have more cohesive, effective, and impactful initiatives for the coming years,” he added.

Mr. Untal said this would help them achieve their subsector and overall targets and help propel the Philippines in the global outsourcing marketplace. — Jenina P. Ibañez

PSE revises composition of three sectoral indices

THE Philippine Stock Exchange, Inc. (PSE) on Monday said it would remove companies from a list that determines three sectoral indices.

In a memo, the local bourse operator said it would change the composition of the industrial, property and service indices effective Feb. 17.

The industrial index, which used to be composed of 25 companies, will now account for the price movements of 23 listed stocks.

This reflects the removal of Emperador, Inc. and Ionics, Inc. from the latest list in August 2019, it said.

PHINMA Energy Corp., which used to be part of the industrial index, has been replaced by Ayala’s AC Energy Philippines, Inc. after the two companies’ acquisition deal last year.

The companies under the property index will also be cut to 18, as the PSE removes Crown Equities. Inc. from the composition.

The service index will be one company short once the changes take effect. Philippine Seven Corp. will be taken out of the list, bringing down the number to 22 companies.

The rest of the sectoral indices — financials, holding companies and mining and oil — will retain their composition next week. They will be composed of nine, 14 and seven companies, respectively.

The composition of the benchmark Philippine Stock Exchange index (PSEi) will also remain intact, PSE said.

The PSE conducts a semi-annual review of the composition of the PSEi and the six sectoral indices, which it bases on the revisions to the policy on managing the PSE Index Series.

The recent review accounted for trading activity in the January to December 2019 period.

The next adjustment will be in August, which will account for activity in the July 2019 to June 2020 period. — Denise A. Valdez

Megawide maps land transport terminal expansion to provinces

By Denise A. Valdez, Reporter

MEGAWIDE Construction Corp. is looking to expand its operation of land transportation terminals to the countryside with a few invitations from provincial governments, its top executive said.

Megawide Chairman and Chief Executive Officer Edgar B. Saavedra told BusinessWorld last week the company is eyeing to build more terminals in the areas of Cavite, Clark and Cebu.

He said the company’s terminal business would not be limited to Metro Manila. He was referring to the intermodal transport terminal Parañaque Integrated Terminal Exchange, or PITX, which Megawide opened in 2018.

“It can be Cavite, it can be Clark, it can be Cebu,” he said.

“[In] a lot of the cities right now in the Philippines, wala namang (there’s no proper) transport system. Nung makita nila, dapat pala may ganyan, may connectivity (When they saw what we did in PITX, they thought it was good to have connectivity). So we have several LGUs (local government units) who are approaching us and asking us to submit a proposal for them to help solve their problem,” Mr. Saavedra added.

Terminal operations accounted for about 1.5% or P207 million of Megawide’s P13.69 billion total revenues as of September last year. PITX saw foot traffic at an average of 51,000 passengers daily during the nine-month period.

In 2020, the terminal business is expected to lift the company’s revenues, hence Megawide’s bullishness to keep investing in it, Mr. Saavedra said.

“Significant yung business eh. Yung bottomline niya significant siya in terms of the overall company earnings… I would say 30% siya. From nothing, dagdag siya ganun. And it’s recurring (The business is significant. Its bottomline is significant in terms of overall company earnings… I would say it’s around 30%. From nothing, it’s a jump to that. And it’s recurring),” he said.

PITX is slated for expansion for its second phase by the end of the year, which would take around three years before completion.

Aside from terminal operations, Megawide derived its revenues in the nine months to September last year from construction projects, airport operations and airport merchandising at P10.53 billion, P2.71 billion and P247.54 million, respectively.

However, the company’s attributable earnings during the period fell 51% to P649.72 million because of higher financing costs.

Shares in Megawide on Monday were flat at P14.60 each.

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