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Nationwide round-up

Duterte just mocking critics in remark on invoking US defense treaty

MALACAÑANG ON Monday said the suggestion of critics to invoke the Mutual Defense Treaty with the United States as a response to China’s militarization in the West Philippine Sea is “absurd.” Presidential Spokesperson Salvador S. Panelo made this statement to clarify President Rodrigo R. Duterte’s remark last week that he was willing the invoke the treaty. Mr. Panelo said the intention of the President’s statement was to mock his critics. “Ang sinasabi niya doon sa mga (What he is saying to) critics, if you consider that as an armed aggression that will fall within the treaty then he will invoke it,” the spokesman said, adding that Mr. Duterte was stressing the “absurdity” of the suggestion that we should attack China. He added that the President was trying to send a message to his critics that their proposal is only good in their “imagination.” — Arjay L. Balinbin

Senators in differing positions on possible UNHRC withdrawal

SENATE PRESIDENT Vicente C. Sotto III said he will support Foreign Affairs Secretary Teodoro L. Locsin, Jr.’s decision on whether to withdraw or retain the Philippines’ membership in the United Nations Human Rights Council (UNHRC) following its adoption of the Iceland Resolution. “I will not be surprised if Sec. Locsin will follow suit considering the way they were, all of a sudden, handling the resolution from Iceland and not even getting the majority of the members of those present in the quorum and saying that it is a UNHRC resolution,” Mr. Sotto told reporters in a chance interview, Monday. “It’s illogical. I will not be surprised and I will be supportive of any decision that Sec. Locsin will arrive at.” Senator Panfilo M. Lacson, for his part, said withdrawing from UN bodies may put the Philippines at a disadvantage. “At the rate we are withdrawing from the UN bodies, it could only be a matter of time when we will be left to our own devices. We may not know when, what and how, but being a developing country, we may need to ask for help from the community of nations sooner or later,” Mr. Lacson said in a social media post on Monday. Mr. Locsin on Sunday said the Philippine government might withdraw its membership to the UNHRC over its adoption of the Iceland Resolution that sought to investigate the human rights situation in the Philippines. — Charmaine A. Tadalan

Palace hands off proposal to impeach VP Robredo

MALACAÑANG IS keeping its hands off the suggestion to initiate impeachment proceedings against Vice-President Maria Leonor G. Robredo for supporting the Iceland-initiated resolution at the United Nations Human Rights Council (UNHRC) to investigate President Rodrigo R. Duterte’s bloody anti-drug war. “Tanungin natin iyong (Let’s ask the)… one, ang Supreme Court; two, impeachment court. But you know, we have better things to do. There are so many problems in this country. I will leave it to those who would want to initiate whatever they want to initiate against whomsoever,” Presidential Spokesperson Salvador S. Panelo said in a press briefing on Monday. Mr. Panelo was asked to comment on the remark of Presidential Anti-Corruption Commission Commissioner Manuelito R. Luna last week that Ms. Robredo could be impeached for expressing her support to the UNHRC resolution. When asked if supporting the resolution is tantamount to betrayal of public trust, Mr. Panelo replied: “Is ignorance a betrayal of the public trust? That is my response. If gross ignorance is a ground for impeachment, is that a ground under the Constitution?… Draw your conclusion.” The UN rights council on June 11 voted to investigate the drug-related killings in the Philippines under the Duterte administration. But both Malacañang and the Department of Foreign Affairs rejected the resolution, saying that it does not represent the will of the council. On Monday, Mr. Panelo said there is no need for the council to pursue its investigation in the Philippines, but it can just send a communication asking for information on the drug war. He also said, however, that there is no guarantee that the Philippine government will provide the documents. “They have to believe what this government tells them because this government doesn’t lie,” he added. — Arjay L. Balinbin

DoJ grants KAPA request for an extension to submit counter-affidavits

THE DEPARTMENT of Justice (DoJ) granted the request of the legal counsel of Kapa-Community Ministry International, Inc. (KAPA) and three of its officials, including founder Joel A. Apolinario, to extend the submission of their counter affidavits to July 29. KAPA legal counsel Mae S. Divinagracia said they sought the extension as they still have to interview the respondents. “We had to file an extension… because we still have to thoroughly study the records considering that the documents that were furnished to us are quite voluminous. And we also have to fly to Saranggani to conduct the necessary interviews,” she told reporters. The other respondents in the Securities and Exchange Commission (SEC) complaint for violating some provisions of the Securities Regulation Code who are among the represented are: Corporate Secretary Reyna L. Apolinario and Rene Catubigan. Ms. Divinagracia also said they asked that the respondents be allowed to subscribe their counter-affidavit before the provincial prosecutor of Saranggani instead of before the DoJ due to threats to their lives. The panel of prosecutors led by Assistant State Prosecutor Zenamar Machacon-Caparros granted the request of KAPA to move their submission and set another hearing on July 29. Other respondents in the complaint who were not represented are: trustee Margie A. Danao, Marisol M. Diaz, Adelfa Fernandico, Moises Mopia, and Catherine Evangelista. The SEC filed the complaint against KAPA and eight of its officials in connection with their involvement in what is considered as an investment scam by enticing the public to give at least P10,000 as “donation” with a promise of monthly return of 30% as “blessing” for life. SEC said the scheme “involved sale and offering for sale or distribution to the public of securities, in form of investment contracts.” — Vann Marlo M. Villegas

Comelec starts scouting for automated election system

Comelec logoTHE COMMISSION on Elections (Comelec) has started reviewing election solution systems that they can potentially use in the presidential and national elections in 2022. Comelec Chairman Sheriff A. Abas said the Automated Elections Systems (AES) Fair held on July 15 by the Department of Information and Communications Technology (DICT) allowed them to witness various modern electoral solutions. “This is the kind of insight we need as we look forward to the elections of 2022,” he said in a statement on Monday. Comelec Spokesperson James B. Jimenez said the poll body is going to review these systems shown by various exhibitors in the AES Fair. “All of these solutions show great promise, and the Comelec will be evaluating each one, to see how well they meet the Philippines’ unique circumstances.” During the May 2019 national and local elections, almost 1,000 vote counting machines (VCMs) out of more than 85,000 were reported to have malfunctioned while almost 2,0000 SD cards out of more than 55,000 were also reported to be defective. The suppliers of the VCMs and the SD cards were Smartmatic and S1 Technologies, respectively. — Gillian M. Cortez

Nation at a Glance — (07/16/19)

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

Nation at a Glance — (07/16/19)

Find a problem you are passionate to solve: Startup tips from JUUL Labs founder, Adam Bowen

When Adam Bowen and James Monsees, founders of successful e-cigarette company JUUL Labs, first introduced their take on a less harmful alternative to smoking in 2015, they knew they had the opportunity to make something truly significant.

In Stanford University where they met, Bowen and Monsees were heavy smokers. They felt conflicted about their habit, more so for Monsees whose grandfather passed from a smoking-related disease. Despite the variety of nicotine replacement therapies in the market, both felt that that there was no true and viable alternative to cigarette smoking. Their solution? Make one.

BusinessWorld’s SparkUp spoke to Bowen in an exclusive interview at the launch of The New Billionaire’s Club, a program seeking to develop innovative and technology-driven enterprises. Bowen was invited to speak to further inspire the fledging local startup community. Below are four of the biggest lessons he has learned developing the now-billion dollar company.

1. Find a problem that you are passionate to solve

Bowen admitted that growing JUUL from a startup was not easy, especially with a controversial product such as theirs. However, Bowen and Monsees knew how crucial it was to develop an effective solution for smokers around the globe.

“There are close to a billion smokers worldwide. Currently, about 34 million in the U.S. Here in the Philippines, there are 16 million smokers who are stuck in the same predicament that James and I were all those years ago. We knew we had to keep on pushing to realize our mission of improving the lives of all these smokers,” he said.

Bowen thus encouraged entrepreneurs to find something they are passionate to address to help keep the fire burning, and encourage them to make a significant impact. He said that it was their clear understanding of how JUUL could potentially help improve the lives of millions of people that fueled their determination to succeed.

With JUUL’s devices and pods, critical public health issues like the local tobacco epidemic could be addressed, and help provide much-needed funding for the country’s Universal Healthcare Act, which seeks to give all Filipinos access to the full continuum of health services that they need, sans the financial burdens that go along with these.

“This is one of the most rewarding parts of what we do – seeing how we can effect positive change in the lives of smokers. It’s kind of seeing that light at the end of the tunnel,” Bowen shared.

The JUUL system, through heavy investment into research and development, was developed to be a better, smokeless nicotine device. Instead of burning tobacco, which activates and releases harmful chemicals such as arsenic, formaldehyde, and lead, the JUUL employs a temperature-controlled vaporization of its proprietary e-liquid nicotine formulation that mimics the experience of traditional cigarette smoking.

Bowen further shares that the product is consistently being improved with technological innovations like Bluetooth technology to monitor and manage nicotine intake while continuing to provide a safe and pleasurable smoking experience.

In the Philippines, JUULpods come in four flavors, in 3% and 5% nicotine strengths: Virginia Tobacco, Mint, Mango, and Creme. The purpose of these flavors and strengths is facilitate the easier switching from combustible cigarettes.

2. Be flexible with how you manage your business.

One benefit of getting things wrong early on is that you become aware of how imperfect your initial solutions may be. Bowen warned startups against the dangers of believing too much in your idea, making unfounded assumptions, or falling in love with a product or prototype you’ve created.

The development process, Bowen said, is “learning to become flexible in your thinking, and in keeping your eyes wide open.” It helps to have a partner or a team of consultants to refer to when brainstorming.

3. Mind your resources

A common pitfall that startups have trouble with, Bowen said, is overspending. If you’re not careful, it could end your business before it even gets off the ground.

“It’s common for companies to get funding, and then to start spending too quickly, including paying yourself too much,” Bowen said.

To prevent this, Bowen advised startups to always be mindful of the important, non-negotiable business milestones, such as proper timing of product introduction and rollout, and when to expect profit generation. Securing funding is just one part of the operation — arguably the easiest part, due to the prevalence of crowdfunding websites.

4. Be open to failure and learn accordingly.

While a startup is in the development stages, it pays to fail as often as possible. “When you’re in a prototyping phase and you make a mistake or something doesn’t work, it costs maybe $10, $100 or whatever. When you start manufacturing, you’re talking about orders of magnitude in additional costs. Oh, you made a mistake in the design. Now you need to change all these production lines. Now you’re talking thousands, or hundreds of thousands of dollars,” he said.

Bowen said that startups should embrace failure while mistakes are still cheap to make, and adjust their products to address them. “There will be failures. There will be things that you may get wrong. The earlier you can test your assumptions, fail, and learn from those failures, the better.”

The New Billionaire’s Club is an initiative by the startup incubator STARTUP Village aiming to highlight socially-driven enterprises that impact the lives of a significant number of Filipinos. The series, entitled “Who Wants to Be a Billionaire?”, will be conducted on a quarterly basis at various STARTUP Village locations and will feature people and companies that are improving the lives of billions of people.

A valuable leader

Manny V. Pangilinan: The MVP of Filipino sports and business

In the Philippine business landscape, Manuel V. Pangilinan, more popularly known as MVP, is one of the most respected, influential and powerful people. At 73, he’s still at the helm of some of the largest companies in the country today, which, amid tremendous social, economic and technological changes, continue to prosper and make immense contributions to the economy.

To say he’s come a long way may be an understatement. “I grew up in Little Baguio, San Juan. Our house stood right on the boundary of a squatter settlement. From my bedroom window, I could see, smell, and feel the lives of the poor, and see its face,” he told graduates of The Manila Tytana Colleges in 2017. His father was a messenger at a bank and his mother was a housewife.

He said that during his elementary and high school years, his daily allowance was only 25 cents. He went to Ateneo de Manila University (ADMU) to pursue a college degree and afterward wanted to study for an MBA in the US. But because he knew his parents couldn’t afford to fund his studies abroad, he joined a competition by a consumer goods company and won the prize — a scholarship to The Wharton’s School of the University of Pennsylvania.

After working for several years here and believing that he was “young enough to make mistakes, to be independent and accountable to myself and my career,” Mr. Pangilinan went to Hong Kong. “I knew that if I waited any longer, I’d be too afraid to take risks. I formed First Pacific in 1981 starting from a rented space — 50 square meters, no bigger than your typical classroom — with a team of only six people using modest start-up capital,” he said.

Now, First Pacific Company Ltd., which is still based in Hong Kong, is a large investment management and holding company with operations in several Asia-Pacific countries, including the Philippines. Its principal business investments are in consumer food products, infrastructure, natural resources, and telecommunications. In 2018, it had a turnover of $7.74 billion, up 6% from $7.3 billion in 2017. Its profit for the year grew 8% from $608.7 million from $561.3 million. Last year, the company employed 110,394 people.

In First Pacific’s 2018 annual report, Mr. Pangilinan, who is the company’s managing director and chief executive officer, said: “The renewed focus on our core businesses is observing results. PLDT, the biggest telecommunications company in the Philippines, is seeing growth in subscriber numbers and telco earnings as a direct consequence of a multibillion-dollar multi-year capital expenditures program that has seen the buildout of the best and most sophisticated telecommunications network in the country. This company can now look ahead to perhaps its best years yet.”

PLDT, Inc., of which Mr. Pangilinan is the chairman, president and chief executive officer, earned revenues of P164.75 billion in 2018, which was a 3% jump from 2017’s P159.93 billion. The net income of the company for the year rose a remarkable 41% from P13.47 billion to P18.97 billion. In the company’s 2018 annual report, Mr. Pangilinan described last year as a “breakout” one for PLDT. “In 2018, after sustained efforts over the past three years, PLDT has put its overall business firmly back on the growth path. We are now better positioned to pursue a higher level of growth even as we gear up for a new wave of digital innovation that will be unleashed by new technologies such as 5G, artificial intelligence and the Internet of things (IoT),” he said.

Meanwhile, Metro Pacific Investments Corp. (MPIC), an investment management and holding company of First Pacific that operates in the country, also had a great 2018. Mr. Pangilinan said in First Pacific’s report, “MPIC continues to grow in its 10th year of ever-stronger earnings thanks to the fruits of large and focused spending on building out its capacity to deliver more electricity, more road traffic and more water to the consumers living in the service areas of its largest investments. MPIC’s hospitals business is now up to 14 such institutions and continues to seek new investments around the Philippines while smaller investments in light rail and logistics continue to invest for growth.”

MPIC has varying interests in Manila Electric Company or Meralco, the largest electricity distribution company in the Philippines; Global Business Power Corp., a leading energy company in Visayas; Maynilad Water Services, Inc., which provides clean water and wastewater services to the west zone of the greater Metro Manila area; Metro Pacific Water, which focuses on water projects outside of Metro Manila; Metro Pacific Tollways Corp., which operates and maintains hundreds of kilometers of expressway across several major Philippine toll road systems; Light Rail Manila Corp., which operates and maintains the Manila Light Rail Transit System Line 1; and Metro Pacific Hospital Holdings, Inc., the largest hospital operator in the Philippines. In 2018, MPIC’s revenues reached P83.03 billion, up 33% from P62.51 billion in 2017, while its core income increased 7% to P15.06 billion from P14.1 billion.

Meanwhile, Philex Mining Corp. of First Pacific, which is primarily engaged in the exploration and mining mineral resources, is, according to Mr. Pangilinan, “turning its focus to development of the Silangan project in the south of the Philippines while PXP seeks to capitalize on potential cooperation between the Chinese and Philippine governments in development of energy assets.” PXP Energy Corp. is an upstream oil and gas company.

In the graduation ceremony he graced in 2017, Mr. Pangilinan recalled another commencement speech he gave to graduates of his alma mater, ADMU. “I found myself talking about my past and the young graduates’ future. And I let them in on the greatest secret of all — that when it comes to success, there are no secrets, no magic, no mystery,” he said. “I told them that success springs from old-fashioned values — values as fundamental as being honest and truthful — with yourself and with others. And so is being diligent, hard-working and disciplined.” He continued, “But most of all, success is about passion — passion to succeed, passion for excellence, passion to compete.”

An avid sportsman

Aside from being one of the country’s top businessmen, Manny V. Pangilinan is known as an avid sportsman who has generously supported Filipino athletes in their championship journeys. He was instrumental in boosting the country’s sporting programs in almost all fronts most especially of the all-time favorite pastime of the Filipinos, basketball. His worth in the Philippine sports scene is undeniable, and his initials spell it all.

Mr. Pangilinan used to serve as the first president of the Samahang Basketbol ng Pilipinas (SBP), the national sports association for basketball in the country, for two consecutive terms from 2007 to 2016. He was succeeded by Alfredo S. Panlilio, who served as the Philippine Basketball Association (PBA) team governor of the Meralco Bolts. At present, Mr. Pangilinan is the chairman emeritus of the national organization.

Under his watch in SBP as its president, the Philippines took the right to host the 2013 FIBA Asia Championships, the intercontinental championship for basketball organized by FIBA Asia that served as the qualifying tournament for the 2014 FIBA Basketball World Cup in Spain.

The country’s Gilas Pilipinas finished with a silver medal in the tourney and was able to qualify for the World Cup. It was the first time that the country was able to return to the world stage after almost four decades.

The country’s successful bid to host the FIBA Basketball World Cup 2023, a prestigious event that will gather the world’s top 32 basketball-playing nations, together with Japan and Indonesia, was also led by Mr. Pangilinan.

The decision was made by FIBA’s Central Board after the bidders gave final presentations to support their candidatures to host the basketball’s biggest world tournament. It will be the first time in the competition’s history that it is to be staged in more than one country.

“We are extremely happy that FIBA has decided to award the hosting right for the FIBA Basketball World Cup 2023 to Philippines/Japan/Indonesia. The World Cup is an event that fans of basketball in these three countries are very proud of and hosting it will allow to spread the basketball fever across the three countries and the region,” Mr. Pangilinan, who headed the Philippines/Japan/Indonesia candidature, was quoted as saying in a statement.

The FIBA Basketball World Cup 2023 will see the group phase to take place in the three nations, with the final phase to follow in the Philippine capital city of Manila. The last time the country hosted the competition was in 1978.

To centralize the sports initiatives of the MVP Group of Companies, a nonstock, nonprofit organization named after Mr. Pangilinan, the MVP Sports Foundation, Inc. (MVPSF), was incorporated in 2011 and registered with the Philippine Securities and Exchange Commission. The MVPSF is a privately-funded sports development foundation focused on helping its chosen sports, namely badminton, basketball, boxing, cycling, football, golf, taekwondo, rugby, and weightlifting.

It was also established to support sports programs through funding and, more importantly, give its feedback and technical advice to help and improve current sports practices used in the programs it supports. In particular, the MVPSF programs are geared towards the advancement of the elite athletes and national teams, developmental athletes/junior national teams, talent identification platforms, and grassroots programs.

The organization is guided by its vision of inspiring, and empowering the Filipino athletes toward the first Philippine Olympic Gold Medal while creating a culture of hard work and perseverance for the Filipino people.

It seeks to be the driving force in the development of world-class Filipino sports champions as well as the leading proponent of a culture of winning through sports using the grassroots programs established in its chosen sports.

“Sports, to me, is more than just playing games. It is also a powerful catalyst for change. It motivates each one of us to become a better person. It gives us the courage to surmount challenges and can even offer escape from poverty and the answer to our desire to lead better lives,” Mr. Pangilinan, who currently serves as the chairman and trustee of the MVPSF, once said.

Most recently, the MVPSF donated P500,000 worth of boxing equipment and another P500,000 in financial assistance to the Cagayan de Oro Boxing Team, an amateur boxing team who has been producing the country’s young boxing talents in the past years. There are at least 60 young boxers in the fold who will benefit from the said donation. Moreover, the MVPSF also vowed to continue its support to Filipino athletes preparing for the 2020 Olympics in Tokyo, Japan. — Mark Louis F. Ferrolino

The foundations of a historic and credible media empire

As one of the country’s most prominent businessmen, Manuel V. Pangilinan has his interests in many of the Philippines’ most important industries. From the telecommunications giant PLDT Inc., to the household name that is the Manila Electric Company (Meralco), Mr. Pangilinan — colloquially known as MVP — has influenced much of the country’s current state of progress.

Perhaps lesser known of his endeavors, however, is his critical role in the country’s current media landscape. MVP serves as the esteemed head of local media conglomerate MediaQuest Holdings, Inc. (MediaQuest).

Established in the 1990s by PLDT, MediaQuest is the mother company of some of the biggest names in Philippine media today, including The Philippine Star, BusinessWorld Publishing Corp., TV5 Network, Inc., Nation Broadcasting Corp., and Cignal TV, Inc. Through the latter, MediaQuest also owns Cignal’s flagship news channel One News.

When MediaQuest announced its acquisition of TV5 in 2010, it signaled MVP’s serious attempt at entering the media realm. TV5, which was previously named ABC Development Corp., is one of the top three television networks in the Philippines today. Its programs can be viewed worldwide through Kapatid TV5 and is currently available in the Middle East, Guam, North Africa, Europe, Canada, and the United States. The network is based in the 6,000-sqm TV5 Media Center headquarters in Mandaluyong City.

Going back to the 1960s, TV5 has been serving the public with its own brand of journalism even before the Marcos era until it was forcibly shut down in 1972. The network made a remarkable comeback however after the People Power Revolution, growing to the point that it was dubbed the “Fastest Growing Network” in the 1990s.

Another historic icon under MediaQuest’s belt is The Philippine Star. The newspaper is one of the country’s most widely-circulated newspapers, a paper that was first published seven months after the 1986 People Power Revolution. Its founders Betty Go-Belmonte, Max Soliven and Art Borjal were integral in the historic moment, and as veteran journalists involved in the “Mosquito Press”, the collective name for the different newspapers criticizing the Marcos administration, wanted to continue their legacy of serving the country’s return to democracy through honest, accurate reportage.

Nowadays, The Philippine Star has grown and built around it a network of other publications covering a variety of topics. The newspaper is owned and published by Philstar Daily, Inc., which also publishes the monthly magazine People Asia and the Sunday magazines Starweek, Gist and Let’s Eat. The PhilStar Media Group includes business newspaper BusinessWorld; Cebu-based, English-language broadsheet The Freeman; Filipino-language tabloids Pilipino Star Ngayon and Pang-Masa; Cebuano-language tabloid Banat, and online news portal InterAksyon.

On the back of such journalistic expertise did MediaQuest launch Cignal TV’s One News channel. Aiming to combine the training and expertise of some of the biggest and most trusted media organizations in the Philippines, namely The Philippine Star, BusinessWorld, TV5, and Bloomberg TV Philippines, One News is an ambitious and concentrated effort to reinvent the way Filipinos consume and discuss news and current events.

By marrying the strength and capabilities of established names in print with respected broadcast news institutions, One News aims to transform the media landscape at a time when false and malicious information runs rampant.

Online platforms like Facebook and Twitter so far have proven to be poor gatekeepers of information in the contemporary digital age, and the rise of fake news outlets have sown discord among the public. By offering a powerhouse bench of anchors and program hosts seasoned in the fields of broadcast journalism, business, sports, information technology, and entertainment, One News also aims to combat the spread of false information, promoting credible, reliable news and insights for the Filipino community.

As the fourth estate, the press and the media have a duty to society as watchdogs of the government and the voice of the people. A democracy cannot function without it.

This is the mission of Mediaquest, and all of its subsidiary media outlets. Ray C. Espinosa, the company president, said at the launch of One News that one of the channel’s objectives is to foster critical discussion about the country’s most pressing issues, analyzing them from different and balanced points of view.

“That’s what we want to be known for: credibility, trust. Essentially, we want to become a news authority, especially in this age when there’s so much talk about fake news all over the place. We need to reassure the public that there are still organizations like us that invest in this type of institutions,” Mr. Espinosa said. — Bjorn Biel M. Beltran

Providing world-class connectivity

Telecommunications has become one of the lifeblood of the modern world. It happened to be the driving force behind massive changes and multitudinous advances in the society, impacting all individuals in all spheres of life.

In the Philippines, such big and influential industry is more commonly associated with astute businessman Manuel “Manny” V. Pangilinan who currently holds the top position in the country’s leading telecommunications and digital services provider PLDT, Inc. With the company’s wide range of products and services, together with the success it has achieved over the years, Mr. Pangilinan is often dubbed as the local “telco king.”

It was in 1998 when Mr. Pangilinan took over the PLDT after First Pacific Co. Ltd., a Hong Kong-based firm also founded by the now 73-year-old business magnate, bought a 17.5% stake in the formerly-known Philippine Long Distance Telephone Company. The acquisition made First Pacific the majority owner of the PLDT thus, naming Mr. Pangilinan as its new president and chief executive officer who brought in a new culture in the company.

Despite some challenges brought by the changing times, PLDT remains steadfast in fulfilling its commitment to serve the nation and provide communications solutions to Filipinos.

In 2018, the telco conglomerate continued to expand its fiber optic cable network, providing the vital foundation for further developing and modernizing the group’s fixed and mobile networks. It ended the year with a total fiber footprint of 244,000 kilometers. PLDT Home’s fiber coverage reached a total of 6.3 million homes. At the same time, total capacity reached 2.6 million ports with about one million ports available for sale.

Meanwhile, Smart Communications, Inc., the wireless unit of PLDT, likewise stepped-up the deployment of Long-Term Evolution (LTE) and LTE-Advanced (LTE-A) networks and carrier aggregation technology across the country, enabling it to fulfill its commitment to the government to provide mobile broadband services to 90% of the country’s cities and municipalities by end-2018.

In the same year, PLDT and Smart fired up the country’s first 5G cell sites in Makati City and Clark Freeport Zone in Pampanga. According to the firm, the 5G opens up exciting possibilities for Internet of Things (IoT) applications for the transport sector, traffic management, manufacturing, airport and mall operations, logistics and warehousing, retail, customer support, and smart homes, among others.

To serve the ever-changing needs of customers in the digital landscape like the growing demand for video, gaming and smart home solutions, PLDT and Smart also expanded their portfolio of products and services and unveiled a host of new innovations.

Likewise, PLDT’s digital innovations arm Voyager Innovations, Inc. continued to step up its efforts in enabling every Filipino to participate and thrive in the new economy through its inclusive financial ecosystems.

Voyager’s PayMaya, the country’s leading e-wallet app, became the first non-bank institution to join InstaPay, an electronic fund transfer service that allows customers to transfer funds almost instantly between accounts of participating banks and non-bank e-money issuers under the supervision of Bangko Sentral ng Pilipinas.

In October 2018, Voyager welcomed KKR, Tencent, IFC, and IFC Emerging Asia Fund as new investors, raising a total of $215-million funding. This marked the largest investment to date in a Philippine technology firm.

Amid PLDT’s efforts to bring its operations to world-class standards, its commitment to enrich the lives of the Filipino people remains at its core. The group continued to contribute in improving the quality of life of Filipinos through its various corporate social responsibility programs that span from digital literacy, disaster preparedness and response, sustainable livelihood, up to environmental protection.

As a testament to all the milestones that the PLDT and its subsidiaries have achieved, Mr. Pangilinan was named Telecom CEO of the Year in 2018 at the Telecom Asia Awards, the longest-running industry awards program in the region that seeks to recognize premier service providers and telco executives.

“I accept this award with caution and humility,” Mr. Pangilinan said. “I am very mindful that in this age of relentless disruption, each new day brings fresh challenges. If anything, this award serves as a reminder that we must keep striving to reinvent our businesses and improve the lives of our people.”

To attain higher levels of growth this 2019, the PLDT, according to Mr. Pangilinan, is geared to keep on improving customer experience, while being mindful of the future and staying focused on transforming PLDT and Smart into one digitally enabled team.

“Given these initiatives and the positive momentum built up in 2018, we expect service revenues to rise and our Telco Core Income to grow to P26 billion in 2019,” Mr. Pangilinan was quoted as saying in PLDT’s 2018 annual report. — Mark Louis F. Ferrolino

Leading the future of energy in the Philippines

Manny V. Pangilinan has ever been the face of energy in recent Philippine memory. With good reason, with him chairing the most important energy company in the country.

The Manila Electric Company, otherwise known as Meralco, is the only distributor of electric power in Metro Manila. Meralco’s reach even extends to the power distribution franchise it has for 22 cities and 89 municipalities, including the whole of the National Capital Region and the exurbs that form Mega Manila.

In fact, Meralco has been serving the residents of Manila more than a hundred years ago, back when it was first originally called the Manila Electric Railroad And Light Company. The company’s storied history saw it build its foundations at the hands of the American occupation, survive World War II and the Japanese takeover, and rise into what it is today.

Meralco is now the largest private sector electric distribution utility company in the Philippines covering 36 cities and 75 municipalities, serving over 6.6 million customers. Its franchise area of over 9,685 sq. km. includes the country’s industrial, commercial, and population centers. At year-end 2018, it recorded a market capitalization of P428.3 billion (US$8.1 billion).

For the full-year 2018, core net income for the company rose 10.9% to P22.41 billion from P20.21 billion previously, driven by the 5% increase in volume of energy distributed, higher financing income from the funds deployed due to the improved yields, recognition of service fees, among others.

In part, Meralco has managed to sustain its upward momentum through continued evolution and adaptation to the changing times.

Mr. Pangilinan said of the company’s guiding principles, “If change for Meralco has been the hallmark these past 25 years, more of it will come to define our future.”

One example is Meralco’s recent announcement significantly expanding its plans to invest in renewable energy projects in the coming years. The company pledged a commitment to developing 1,000 MW of renewable energy projects in the next 5-7 years, “joining the inexorable shift to renewable energy and the adoption of sustainable practices in everything we do,” recently appointed Meralco President and CEO Atty. Ray C. Espinosa said.

“Meralco is committed to developing large-scale renewable energy projects that can deliver competitive electricity for our customers, without any requirement for subsidy or support, while keeping environmental stewardship and sustainability as top priorities in our business,” Atty. Espinosa added.

As part of this plan, MGEN Renewable Energy, Inc. (MGreen) has been established to serve as the platform for the strategic push to develop renewable energy projects, primarily solar, wind and run-of-river hydro. The new company aims to bring in additional supply to support the Philippines’ growth momentum and help ensure the availability of green and cost-competitive power supply in the coming years.

MGreen is a wholly owned subsidiary of Meralco PowerGen Corporation (MGen), which in turn is the power generation arm of Meralco.

“We are working on several renewable energy prospects and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind over the past years. Notwithstanding the ongoing requirement for new reliable baseload generation to support the fast-growing Philippine economy, we believe that the time is right to focus on building our green energy capacity and we intend to be a key player in this expanding sector,” MGen President and CEO Rogelio L. Singson said.

“MGen, through MGreen, will continue working on the realization of our project opportunities, and will work in partnership with established developers to maximize our growth potential,” he added.

Mr. Singson further said that the plan is aligned with MGen’s growth aspirations, which are focused on advancing renewable energy prospects and utilization of high efficiency, low emission (HELE) technology for baseload power plants.

“We will continue to work with the energy industry, government and other stakeholders to serve the country’s energy needs while ever mindful of our greater responsibility to society and the planet,” Mr. Singson said.

As the world shifts away from conventional power sources in favor of cleaner, sustainable, and more environmentally-friendly alternatives, Meralco and MGen’s initiatives pursuing the development of renewable energy sources will put the country in a position of opportunity. As Meralco evolves to meet the needs of the future, so will the Philippines. — Bjorn Biel M. Beltran

Smart Padala by PayMaya empowers communities with digital financial services

Digital financial services adoption is growing fast as mobile and internet penetrate all corners of the country. For most of the unbanked and underserved, the transformation to digital is getting a boost from the traditional and most basic retail presence on ground — through sari-sari stores powered by Smart Padala by PayMaya.

“For financial inclusion efforts to bear fruit, they should be able to reach people at the grassroots, and that means including those in the far-flung areas of the country. Because your favorite Smart Padala by PayMaya center is often also the nearest sari-sari store to your house, we are able to bring digital financial services to Filipinos whenever and wherever they need it,” said Kenneth Palacios, Director and Head of Wallets Business at PayMaya.

With more than 27,000 partner agents nationwide, Smart Padala by PayMaya is the only domestic network capable of reaching even the farthest communities of the country. This allows its agents to deliver critical financial services to areas that are not traditionally reached by bank branches and other financial touchpoints, which are usually located in urban cities or municipal centers.

According to the Bangko Sentral ng Pilipinas (BSP) 2015 National Baseline Survey for Financial Inclusion, which contains the most recent data available on time and money spent to access financial services, Filipinos usually travel 21 minutes and spend at least PhP43 on average to get to the nearest traditional financial service access point in their area.

Because Smart Padala by PayMaya centers are able to penetrate even the innermost communities in many provinces, the financial inclusion potential of these hubs cannot be understated.

Reaching the underserved and unbanked

In the streets of Rodriguez, Rizal just outside Metro Manila, the sari-sari store of Lilia Ramos has become a focal point for the community whenever they want to send money to their family in the province.

Every day, students would go to Lilia’s store to pick up their allowance from their parents living in various places around the country. On payday, people would flock to Lilia’s store to send money to their loved ones back home. In cases of emergencies, it only takes a few taps on Lilia’s mobile phone to send the money needed for the urgent needs of her customer’s family.

“It’s good to hear that your customers trust you, and we adjust to their needs like having to wake up early to open the store because the money that they receive from relatives is often for school or work allowance,” Ramos said.

Promoting microentrepreneurship

Another such example is Yolanda Benigno, a Smart Padala by PayMaya agent from Manila who originally hails from Bicol. Fueled by the need to provide for her relatives, she put up several businesses that included a street-food cart and a Smart Padala by PayMaya center, which eventually branched out into four centers in the city.

“From one center, I was able to put up a few more because I didn’t really expect that the demand would be that great initially. Especially when it is payday, workers would really line up to send money for their families in the provinces,” Benigno shared.

As PayMaya broadens its reach across the country and delivers more innovative digital services, Smart Padala by PayMaya centers are now becoming digital financial hubs of their respective communities, offering services such as bills payment and airtime load top-up in addition to the traditional domestic remittance service.

Together with other services such as the PayMaya mobile app and e-wallet as well as the PayMaya Business suite of solutions for enterprises, Smart Padala by PayMaya supports the BSP’s 20 by 2020 goal of increasing total electronic transactions to 20% as it prepares the country to participate in the larger global digital economy.

PayMaya, the digital financial services arm of Voyager Innovations, is the leading fintech company in the Philippines offering integrated consumer and merchant payment solutions with the widest on-ground branch network. Voyager Innovations is backed by PLDT, KKR, Tencent, and World Bank’s IFC. Last November 2018, it raised the largest tech funding round for a Philippine-based company.

Bringing businesses together for sustainable development

Manny V. Pangilinan (MVP), one of the country’s most prominent businessmen today, is not only a leader who holds top positions in some of the country’s top business firms. As he currently serves as the chairman of the Philippine Business for Social Progress (PBSP), the country’s largest business-led nongovernmental organization (NGO), MVP is also a leader harnessing businesses to uphold the causes of sustainable development and poverty reduction.

PBSP has been in the business of making an impact to communities since its establishment in 1970. According to its Web site, PBSP is envisioned “to lead the business sector’s efforts to reduce poverty in the Philippines”. Its mission affirms the NGO’s commitment to poverty reduction “by promoting business sector leadership in, and commitment to programs that lead to self-reliance.”

MVP shares PBSP’s belief that backs up everything it does: working together works.

“We, as PBSP, decided to subscribe to collective impact as a strategy because of one question: ‘After decades of doing tireless work with other NGOs and Government, why are we still talking about the same problems of poverty and inequity?’,” Mr. Pangilinan stated in his message in the latest annual report published by PBSP on its Web site.

Recognizing the complexity of social problems and the diversity of ways by which different sectors hope to solve them, MVP points to PBSP as a fitting partner for them to deliver those solutions.

“PBSP, through its different platforms of collective engagement or PlaCEs under each of our program areas, provide a venue to coordinate with and convene stakeholders, consolidate mutually reinforcing initiatives, co-create sustainable solutions, and consistently communicate updates and accomplishments,” Mr. Pangilinan wrote.

PBSP, which currently has 274 member-companies, forms sustainable solutions to societal problems through its programs oriented towards health, education, environment, and livelihood and enterprise development.

The health program of the PBSP aims to “contribute to the improvement of the health situation in the Philippines” through programs that seek to reduce maternal and child mortality, detect and cure tuberculosis, improve nutrition, ensure reproductive health services for women of reproductive age, and achieve universal health coverage among poor families.

PBSP’s flagship initiatives in health are tuberculosis control projects involving TB diagnostic mobile vans, mass screenings, and AI-assisted screenings; a safe motherhood caravan called “Babae: Malusog. Ligtas. Handa.”; and a supplemental feeding program dubbed as “NutriSapat, Batang Angat.”

As of the fiscal year (FY) 2017-2018, as posted on PBSP’s Web site, 6,949 drug-resistant tuberculosis cases have been notified; 9,506 women of reproductive age were provided with information on maternal, neonatal and child health and nutrition services; and 380 children under five provided with supplemental feeding.

Education is another core program of PBSP. The NGO’s program for education assists in improving the quality of education for Filipino learners, especially senior high school students.

Notably, PBSP attends to disadvantaged children through educational assistance/scholarship program, while it addresses the gap in classrooms by constructing disaster-resilient, PWD-inclusive, and gender-sensitive classrooms.

PBSP also has Bayanihang Pampaaralan, its educational platform for collective engagement. “This is focused on capability building of public schools as well as influencing systems of change to contribute to the attainment of desired education outcomes and impact,” PBSP wrote on its Web site. “This program shall enable HS graduates to be ready for work or entrepreneurship, fit for jobs or ready for college.”

The previous fiscal year witnessed 1,830 students who were provided with educational assistance/scholarship, as well as 134 constructed classrooms.

PBSP also has programs on the environment which “focuses on contributing to increase the resiliency of natural resources and enhance the ability of communities to adapt to climate change effects.”

For instance, the Buhisan Watershed reforestation project enabled PBSP and its stakeholders to plant over 200,000 trees within 600 hectares (ha) with 80% survival rate. It also has heeded the call to reforest the Marikina Watershed when it was devastated by Typhoon Ondoy in 2009. So far, its tree planting initiative in the watershed has covered 304 ha.

In addition, it has established the Water Alliance, a coalition “committed to create solutions to the water problems in the Philippines.” One of the alliance’s several accomplishments include providing 39 communities including schools with potable water systems worth P81 million through funding support from the members.

FY 2017-2018 tallied 1,136 families provided with access to safe drinking water, 17 schools provided with potable water systems, and 179 hectares of reforested watersheds.

Livelihood and enterprise development is another cause PBSP upholds through its programs focused on promoting inclusive business. Its programs promoting this particular advocacy supports agro-enterprise value chain development and improves people’s access to jobs through skills upgrading and employment facilitation.

Numbers from the previous fiscal year stated that 1,668 families were provided with livelihood, P192 million were loaned, and more than 4,000 micro, small, and medium enterprises (MSMEs) benefitted from credit and non-credit services. — Adrian Paul B. Conoza

Speakership scheme could stunt reforms

By Charmaine A. Tadalan
Reporter

THE PLANNED term-sharing of speaker aspirants Taguig 1st district Rep. Alan Peter S. Cayetano and Marinduque Rep. Lord Allan Jay Q. Velasco could disrupt reform impetus in the remaining three years of President Rodrigo R. Duterte’s term, analysts said on Thursday last week.

Mr. Duterte on Monday last week stepped in to end an impasse between the two speakership bets by endorsing Mr. Cayetano to lead the House of Representatives in the first 15 months, and Mr. Velasco for the remaining 21 months of the 18th Congress.

While both lawmakers vowed to push the President’s legislative agenda, University of the Philippines political science department chairperson Maria Ela L. Atienza said in an e-mail that “based on recent history and the fact that alliances in Congress are usually based on the popularity of the President, personal interests of legislators and the lack of programmatic and disciplined political parties, changes in House leadership as well as committee chairs and memberships can cause discontinuities in policy agenda, resentments and infighting within the coalition.”

“We also do not know if, by the time there will be a change in speakers, there will still be high presidential approval ratings and a supermajority coalition.”

Ms. Atienza also noted that the 2022 national elections could also distract lawmakers who will seek reelection or higher office.

“This is also true as the coming 2022 elections is an important consideration for legislators. They balance their own interests for survival and desire for reelection or election to higher posts vis-a-vis the president’s popularity, public sentiments, and strength of possible allies and interest or pressure groups.”

Michael Henry Ll. Yusingco, senior research fellow at the Ateneo Policy Center, said different objectives of two presumptive House leaders could impact desired reforms.

“For sure the priority measures by the administration will be negatively impacted by the term-sharing because the two speakers have different objectives,” Mr. Yusingco said.

“They clearly are not on the same page as far as the direction of the House is concerned,” Mr. Yusingco said in a separate e-mail.

“A lack of coherence will be palpable in the leadership of the HoR. Lawmakers will likely just sit tight and do nothing. Their minds will already be focusing on 2022. So they will be concerned only about whatever pork they can get.”

Leyte 1st District Rep. Ferdinand Martin G. Romualdez, who is being eyed for the post of majority leader, for his part, said discussions are under way to try to limit House leadership changes after Mr. Cayetano’s term.

“We are going to study the proposal of incoming Speaker Cayetano to limit the leadership change after 15 months to his position and [to] the head of the House committee on accounts so that legislative operations will remain unhampered,” Mr. Romualdez said in a mobile phone message, referring to the committee that tackles the internal budget of the House.

“We will wait for the positions of other House leaders from various political parties and influential blocs to determine if this is a workable solution to ensure a strong, stable and non-disruptive House leadership.”

Senator Aquilino L. Pimentel III, who heads the ruling Partido Demokratiko Pilipino-Lakas ng Bayan as president, said leaders of the party met with Mr. Cayetano’s camp on Thursday evening to discuss ways to ensure smooth transition amid a House leadership change.

“If matagal nang na-decide ‘yung (If it had been long decided by the) entire body na we will change our leader [in the House], but we will not change our agenda, we will not change our working style, we will not change a lot of things, we are clear about the changes, then walang manggugulo (it shouldn’t be a messy transition).”

Port regulator caps time to decide on proposals

THE PHILIPPINE PORTS AUTHORITY (PPA) is limiting the time to decide on unsolicited proposals from private groups seeking to develop local ports.

PPA General Manager Jay Daniel R. Santiago told reporters last week that Transportation Secretary Arthur P. Tugade had ordered capping the period of negotiations with private proponents to 60 days, after which a decision must be made to accept or reject proposals.

“Actually under NEDA (National Economic and Development Authority) guidelines, we have 30 days (to review proposals), but you can extend it hanggang (at the) discretion of the agency. Pero may instruction si Secretary (But Mr. Tugade gave instruction] to limit yung extension na yun [that extension] up to a maximum of 60 days total,” Mr. Santiago said.

“In 60 days you have to make a decision whether to accept or reject. No ifs, no buts.”

The new rule comes as the PPA is evaluating unsolicited proposals from Dennis A. Uy-led Chelsea Logistics and Infrastructure Holdings Corp.; Razon-led International Container Terminal Services, Inc. and Davao-based Kudos Trucking Corp. to develop Davao City’s Sasa Port, two Iloilo ports and the General Santos Port, respectively.

Mr. Santiago said the PPA gave Chelsea a letter earlier this month indicating the company’s completion of submission of documents for its P11.2-billion unsolicited bid to rehabilitate Sasa Port. This signals the start of the 60 days to negotiate the terms of the project.

“No later than first week of September dapat may decision dyan (there should be a decision on that),” he said, referring to awarding of original proponent status to a private proponent.

For ICTSI’s P8.7-billion unsolicited proposal for the Iloilo Port Complex and the Port of Dumangas in Iloilo, Mr. Santiago said regulators are still waiting for more requirements.

For Kudos’ unsolicited proposal for the Port of General Santos, the PPA chief said the letter indicating completion of its proposal requirements could be given within the month.

While talks on project terms will be limited to 60 days, Mr. Santiago said there is no deadline for companies to complete submission of proposal requirements to the PPA.

However, by the end of the Duterte administration, all incomplete proposals will automatically be considered denied.

“Secretary Tugade gave a deadline for all of the proponents and for the agency na pagdating ng June 30, 2022 at hindi ka pa lumalampas sa kahit na ano, considered rejected ‘yan (if a proponent has not completed submission of requirements by June 30, 2022, the unsolicited proposal will be considered rejected]. So when we leave by June 30, 2022, there will be no pending unsolicited proposal,” Mr. Santiago said.

Aside from the tighter timetable for negotiations with proponents, Mr. Santiago said other rules for unsolicited proposals include prohibiting government guarantee and viability gap funding (for projects that are economically justified but are not financially viable).

The stricter rules on unsolicited proposals for ports comes as the Department of Transportation ordered all private proponents for the development of airports to submit concession terms patterned after the agreement the government signed for the Clark International Airport. That set back proponents such as the consortium of seven conglomerates offering to upgrade the Ninoy Aquino International Airport, whose concession terms were returned for revision a few weeks ago — after about nine months since it started negotiations with the government.

Meanwhile, the PPA aims to release within the year a new tariff system for ports under its jurisdiction which will change the basis of handling fees from cargo type like prime and non-prime commodities — which it says could be prone to irregularities like misdeclaration — to bulk, break bulk, containerized and roll-on, roll-off (RoRo) shipments.

“I want to make the pricing uniform insofar as the packaging and handling is concerned,” Mr. Santiago said.

“… [Y]ou have one whole container of rice and one whole container of general merchandise, why should the pricing be different… eh it requires the same effort?” he explained.

“… [I]t’s a source of corruption pa. You allow the possibility na people on the ground will have different and subjective appreciation of what that cargo is. You don’t know what’s inside the container…”

This new tariff structure will be embedded in concession terms the PPA will agree on with private proponents, as well as for other ports the PPA aims to bid out for terminal leasing.

“We’re looking at about two or three (terminal leasing contracts) to be awarded this year. At least for those two or three, we should be able to embed that new tariff structure,” the PPA chief said.

For existing concessions, the new tariff system will be imposed once the concessionaires apply for a tariff increase. — Denise A. Valdez

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