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Best golfer

Not a few quarters were looking for a shoot-out heading into the deciding round of the FedEx St. Jude Invitational. Rory McIlroy and Brooks Koepka had all but obliterated TPC Southwind in their penultimate 18, carding 62 and 64, respectively, to set up a final pairing. It didn’t matter that 10 players posted scores within four strokes of the pace; as far as pundits were concerned, the focus remained with the multiple major winners, and not simply because they had momentum on their side. Parenthetically, the pride of Memphis, Tennessee, was set up as a birdie haven, allowing for low scores across the board and fueling anticipation for more red marks with the hardware on the line.

To be sure, Koepka did his part, hitting the ground running and claiming three birdies in a four-hole stretch on the front nine. For all the knock on his inability to approach non-Grand Slam events with the same resolve, he certainly brought his A-game with him yesterday; he added two more birdies coming in for a flawless 65 and an aggregate 264, three strokes clear of his closest pursuer. Meanwhile, McIlroy couldn’t hold on to the lead; considering the easy conditions, pars on the first 11 holes not just proved inadequate for the purpose.

By the time McIlroy affixed his Hancock on the official chronicle of his efforts, the leaderboard showed him tumbling to a tie for fourth; armed with a grand opportunity to make up for his poor performance at the British Open, he instead put up a one-over 71 to close with a 269. And so disappointed was he that he refused to meet with members of the media for a post-mortem. Not so Koepka, who, with the title in hand, only too gladly paid the former compliments despite the evident letdown. “You kind of get glued watching him hit balls. I mean, it’s mesmerizing watching him hit. You know, it’s always nice to squeak out a victory over probably the best player right now.”

In truth, McIlroy isn’t the best player in the sport. Koepka is, and by far. He just went through the major rota with one trophy and as the first ever to finish in the Top Five of every stop. It’s likewise significant to note that TPC Southwind fits his eye as “a thinker’s golf course.” Little wonder, then, that he has brought home good marks every time he tees off in the course. They will, of course, meet again, but, unless and until the consistency he displays is equaled, he figures to get the better of the matchup far more often than not.

 

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.

Edtech startup Edusuite raises P12 million in angel investment

Edusuite, a two-year-old DOST-funded technology startup founded by school administrators and technology consultants, met its angel investment target of P12 million after only six months of fundraising, bringing its valuation to P68 million.

Edusuite is the first school management system to utilize artificial intelligence in generating recommendations to school administrators. For example, it can predict the demand for each subject a college will offer in the following school term, so that the school can open the right number of sections and hire the right number of faculty, drastically improving the quality and profitability of the school. Also, it automatically generates an optimized schedule to minimize conflicts between students, faculty, and room availabilities. Edusuite’s software was launched commercially last year and already has seven schools in its client portfolio, including Ateneo High School and CIIT College.

Among the participants in the funding round include seasoned angel investors from the Manila Angel Investors Network (MAIN) and two of Edusuite’s clients: Batangas Eastern Colleges (BEC) and Sumulong College of Arts and Sciences. The startup is also backed by the Department of Science and Technology.

“I invested in Edusuite because I saw that the company solves real problems for schools, especially in increasing revenue. I did not see others in this space doing so,” said Jay Chan from MAIN. “The management has a proven track record of executing on time and on budget and a reputation for integrity.”

Eunil Castillo, school administrator of BEC said Edusuite complements their institution’s thrust to be globally competitive by blending education with new technologies. “Edusuite can match the needs of a growing institution like ours, so we saw us growing together with many mutual opportunities.”

Edusuite was founded by Niel Dagondon, CEO, and Calen Legaspi, CTO. Niel is a four-time serial entrepreneur, with a prominent exit from Anino Games, at the time the largest game development firm in the Philippines. Calen is co-founder and CEO of Orange and Bronze Software Labs, a technology consulting firm that has implemented large critical projects for the Philippines’ largest telcos and banks, as well as for technology companies in eleven other countries.

Myka Sumulong, a director of Sumulong College, mentions, “When I met Niel during their demo at our campus, I saw his clear vision and dedication to modernize the Philippine education sector.” Mia Sumulong, also a director of Sumulong College, adds that their investment “expresses our faith in the Filipino potential to innovate: that we can excel and compete globally even within the confines of our Inang Bayan.”

Win a trip to Japan by joining JICA’s vlogging competition

The Japan International Cooperation Agency (JICA) is inviting young Filipinos from the age group 18-24 years old to share their voice on JICA and the Philippines’ partnership through the JICA Video Blog Contest 2019 as part of the Japanese bilateral aid agency’s efforts to promote better understanding of Official Development Assistance (ODA) and encourage young people to participate in development. The winner will receive a sponsored trip to Japan.

The Philippines has one of the youngest demographics in Asia with about 45 percent of its working population as mostly young people, government data showed. Considered to be the country’s future decision makers, young Filipinos are capable to engage in platforms where they can discuss development issues like transport infrastructure development, health, environment, disaster management to name a few.

“The video blog contest for young Filipinos is an opportunity for them to speak on the impact of international cooperation specifically JICA’s assistance to the Philippines, and offer suggestions on how we can solve common problems together,” said JICA Senior Representative Aya Kano.

The participants are encouraged to tell their stories using a video blog on the question: How does Japan and JICA impact my life? The entries should appeal to both Japanese and Filipino audiences and can be 5 minutes maximum in length. Participants are free to use their creativity in telling their stories and should upload their video on YouTube.

All the entries must be submitted on or before November 17, 2019. You can find more information on the JICA video blog contest here.

The contest is supported by partner institutions and media organizations namely Business Mirror, BusinessWorld SparkUp, Japan Foundation, and Japan National Tourism Organization.

JICA is the world’s largest bilateral aid agency, and is the Philippines’ foremost development partner, with the total value of JICA programs in the Philippines amounting to JPY 47.41 billion in fiscal year 2017. It has supported sustainable development in the Philippines since the 1960s with development cooperation projects nationwide that seek to promote sustainable economic growth, overcome vulnerability of people, and realize peace and development in Mindanao. It currently has more than 80 ongoing projects with the Philippine government, including the country’s first Metro Manila Subway and other key railway and socioeconomic infrastructure.

Dependable cargo carriers

Trucks, either large or small, are probably the most reliable vehicles in moving large quantities of cargoes across countries and towns. They can go almost everywhere, delivering commodities we use in day-to-day living, from the clothes we wear to the food we eat.

According to International Road Transport Union (IRU), an international road transport organization, since the early 1900s, trucks have played an important role in helping countries develop and become prosperous, and help create a fairer distribution of wealth and jobs between urban and rural areas.

“Almost everything in our homes or offices has, at one point of its production or distribution, been on a truck,” IRU says on its Web site. “Their flexibility means that producers, businesses, and people can live and work almost anywhere.”

Sumit Sharma, co-founder of tech-logistics startup in India GoBOLT, echoed the same sentiment, noting that road transportation is one of the important links that facilitates productivity and competitive efficiency which leads to rapid economic development of a country.

“It also plays a key role in bringing about the development of the remote regions by opening them to trade and investment and integrating them with the mainstream economy,” Mr. Sharma said in a piece published on Retail 360 Asia’s Web site. “Consider what would happen if every truck were pulled off the road: There would be a perishable goods shortage within three days; drinking water would disappear within two to four weeks. Food supplies in hospitals would be gone in 24 hours. ATMs would be empty in two to three days.”

Without a doubt, the sector’s contribution to the economy is significant, Mr. Sharma said, noting that almost all businesses nowadays rely on trucks to either secure necessary materials for what they’re doing or delivering their final product in the marketplace.

At present, IRU says that road transport carries more than 80% of inland freight volume on average. In modern economies, 85% of road freight tonnage is carried over distances of 150 kilometers (km) or less while less than 1% gets carried over 1,000 km, the organization adds.

“Ultimately, it’s hard to put a number on just how much the trucking sector contributes to the economy, because its impact reaches far beyond the industry’s own employment and financial contributions to our GDP.  Specifically, if it weren’t for trucks, most of the country’s businesses wouldn’t be able to operate,” Mr. Sharma said .

Considering the utmost importance of cargo trucks in moving businesses and the economy forward, it is important to rely on those with dependable features. These include trucks with large capacity, ergonomic cabin, and aesthetic appeal, as well as trucks that are incredibly durable, practically silent, fully customizable, safe and easy to handle, and eco-friendly.

Moreover, according to automotive-oriented Web site cutpricewebsites.com, it is also worth considering to purchase trucks with the latest digital-based features, including a digital cluster, entertainment center, and outlets.

The cutpricewebsites.com said that the days of analogy clusters have long come and gone. It says that: “Any new truck that you purchase should be equipped with a digital cluster. A digital cluster will allow you to customize the information that appears right in front of you as you drive. You can set up the digital cluster to that the information that is the most relevant to you at that time is what is displayed. A digital cluster helps you personalize the driving experience.”

In cases that the truck will be shared with more than one driver, the digital cluster, according to the site, may allow them to set up a profile that works best for their individual and unique needs as a driver.

The cutpricewebsites.com also suggests to look for a truck with the latest digital entertainment center. “The latest entertainment centers ditch all the knobs and focus on providing you with a sleek touchscreen where you can choose what type of entertainment you want. You can listen to the regular radio or pick up some satellite radio. You can plug your MP3 player in, or wirelessly stream music that you have on your phone through your system,” the site says.

In terms of functionality, the touchscreen of the entertainment system can also turn into a digital screen to provide the truck driver with GPS and maps, helping them to easily navigate the route that they are heading.

Moreover, the cutpricewebsites.com says that truck buyers these days should look for trucks equipped with outlets. This will allow the driver to plug in and charge USB devices without the need for a converter. Likewise, the truck should also come with a traditional electronic outlet similar to those found at home, which will enable to plug in things like a vacuum cleaner into the truck. — Mark Louis F. Ferrolino

Maintaining trucks part by part

As trucks are used over time in delivering cargoes, they inevitably wear out. It is important, therefore, to keep them in top condition, from interior to exterior.

American trucking sales and service provider Empire Truck & Trailer shared several tips in maintaining trucks on its Web site.

In maintaining brakes, it is recommended to establish a plan to combat brake wear and failure, which is a common cause of accidents. Brake parts should be replaced on a regular basis. Brake shoe indicators will give a clue if they should be replaced.

Lubrication should also be maintained in trucks to avoid premature wear and costly breakdowns. Checking for leaks and slop in drivetrain parts should be routinely done. It is also advised to lubricate all applicable parts and fittings before each haul.

One must also change the oil regularly since fresh oil prevents the truck’s engine from wearing down prematurely. “Oil undergoes a thermal breakdown over time. As it fails, engine friction increases, raising the chances of total engine failure or a very expensive trip to a repair shop,” the article explained.

Most manufacturers recommend changing oil every 5,000 to 7,000 miles (mi), but it actually depends on the vehicle. Refer to the truck’s manual to find out how often it should get an oil change.

Engine belts should also be taken into consideration since they drive multiple peripheral devices in the truck’s engine. Lest these rubber belts break down while the truck is in motion, they should be checked every 25,000 mi and replacing them around 50,000 mi. Small cracks in the belt might indicate that they should be replaced.

Fuel and storage tanks should be inspected for any contamination, since contaminants and moisture in tanks can hinder the fuel from flowing.

The coolant system should be kept clean by replacing damaged or corroded components and using the right type of fluid. Since improperly maintained coolants cause premature engine failures, “it’s important to understand coolant types and adhere to the manufacturers’ requirements.”

To avoid corrosion in the truck’s body, the owner/driver should deal with paint chips immediately, wash the truck every 10 days (and immediately after a rain), spray door locks with a lubricant, and avoid driving through large puddles on roads and in parking lots.

Tires, meanwhile, should be inflated to the right levels. “Underinflated tires are a drag on fuel efficiency, and overinflated tires are a safety risk because they are more prone to blowouts or premature tread wear,” the article explained. One will also risk wasting fuel if the tire is not properly inflated.

Moreover, conducting tests and maintenance checks are vital. These include periodic compression tests, monitoring engine coolant and exhaust temperature, surveying oil and boost pressures, and checking under-the-hood rubber parts and wheel alignment.

Since maintenance involves replacing parts, it helps to stockpile parts lest replacements are not available in the market depending on the truck model. It is also advised to buy parts with lifetime warranties, which include brake pads, alternators, starters, and oil seals. — Adrian Paul B. Conoza

Take two for security of tenure measure

THE LABOR department and the Senate have taken steps to revive a proposal that would tighten controls on labor contracting, a few days after President Rodrigo R. Duterte struck down a similar measure just before it would have lapsed into law last Saturday for unduly burdening business.

Labor Secretary Silvestre H. Bello III told reporters in a briefing in Manila on Monday that the Department of Labor and Employment (DoLE) will submit a “clearer and more focused” measure to the Legislative-Executive Development Advisory Council (LEDAC) which, he said, will meet next Monday.

“We will come up with a clearer and more focused provision to provide security of tenure to our workers… I understand that there is LEDAC [meeting] this Monday, so probably we hope to have a new version on formulation before Monday so that it can be presented to the LEDAC,” Mr. Bello said.

He added that DoLE’s version will seek to “strike a balance” between assuring workers’ security of tenure and making sure it will not erode business viability.

“The bill will give employees security of tenure (SoT) but it shouldn’t be at the expense of employers because kung nagawa ’yan, baka mawala ang viability ng business (if that is done, businesses might lose viability) and it might result in losing employment opportunities.”

Chaired by the President, LEDAC — formed under Republic Act No. 7640 of December 1992 to ensure close coordination between the Executive branch and Congress on priority measures — also consists of the Vice-President, the Senate President, the Speaker of the House of Representatives, seven Cabinet members designated by the President, three senators designated by the Senate President, three members of the House designated by the speaker, as well as a representative each from local government, the youth and the private sectors.

LEDAC last met in September 2017, according to its Web site.

In his July 26 veto message, Mr. Duterte had said Senate Bill No. 1826/House Bill No. 6908 “unduly broadens the scope and definition of prohibited labor-only contracting, effectively proscribing forms of contractualization that are not particularly unfavorable to the employees involved.”

Senator Emmanuel Joel J. Villanueva on Monday re-filed the same measure, telling reporters that he will ask state economic managers — including Socioeconomic Planning Secretary Ernesto M. Pernia and Finance Sec. Carlos G. Dominguez III who had expressed reservations about the bill a few days before it was vetoed — to point out objectionable provisions.

The move was supported by the Trade Union Congress of the Philippines (TUCP), which is set to file a counterpart measure at the House of Representatives through Rep. Raymond Democrito C. Mendoza.

“This is exactly the same measure that was certified as priority measure and urgent by the President himself,” Mr. Villanueva told reporters after filing Senate Bill No. 806, or the proposed “Security of Tenure and End of Endo Act,” referring to “end of contract” (endo).

“… [T]he same because we wanted to find out from the President’s men, the officials na nag-influence sa ating Pangulo (the officials who influenced the President to veto the past measure), para i-pinpoint nila anong particular provision ‘yung may problema sila (so they will pinpoint particular provisions with which they have reservations).”

The bill will amend Presidential Decree No. 442, or the “Labor Code of the Philippines,” by prohibiting labor-only contracting and provides penalties for noncompliance.

The bill considers a working arrangement to be labor-only contracting when: a job contractor merely recruits and supplies workers to a contractee, regardless of whether he or she has substantial capital; workers recruited perform functions are directly related to the principal business of an employer; and if workers of the job contractor are under the control and supervision of the contractee. The bill also requires job contractors to secure a DoLE license.

Mr. Villanueva said it was the inclusion of performance of tasks directly related to the principal business of a contractee that proved unpalatable to business.

Thirteen local and foreign business chambers asked Mr. Duterte on July 17 to veto the measure, arguing that its provisions were already in place through DoLE’s Department Order No. 174, issued in March 2017, and Executive Order No. 51, issued in May 2018.

“We expected them to refile, but I think what the President did is obvious: the proposed law as it is right now needs to be worked on a bit. It’s quite restrictive,” Philippine Chamber of Commerce and Industry Chairman George T. Barcelon said in a telephone interview on Monday, citing for example that contractual workers should not perform functions directly related to the principal business of a contractee.

Moreover, he noted, “in present form, any one of the conditions that is not met, you’re already in violation.”

“What management is asking is that all the conditions must be there before that would trigger having the law take into effect.”

Associated Labor Unions-TUCP Spokesman Alan A. Tanjusay said separately “if we read and examine the bill carefully, the SoT bill that President Duterte already vetoed, the proposed measure already contains the provisions that he wanted to have.”

“The SoT measure, if approved into law, would also mandate the creation of tripartite councils per industry which would fairly determine which… [tasks] are deemed necessary and desirable to the core business and therefore… ‘directly hired’ by the principal business owner.” — Charmaine A. Tadalan and Gillian M. Cortez

Pacific Online, Berjaya share prices succumb to lotto uncertainty

By Arra B. Francia
Senior Reporter

SHARES of listed companies with equipment lease deals with the Philippine Charity Sweepstakes Office (PCSO) plunged on Monday, following President Rodrigo R. Duterte’s order on Friday last week to suspend all PCSO-sanctioned gaming operations due to “massive corruption” involved.

Pacific Online Systems Corp. (whose stock trades under the ticker symbol LOTO), which supplies online lottery systems for the PCSO in the Visayas and Mindanao, saw its shares plunge 13.61% or 40 centavos to P2.54 apiece on Monday, making it lead the Philippine Stock Exchange’s list of 20 “top losers” for that day.

Pacific Online is also the equipment lessor for all of PCSO’s Keno games across the country.

The president’s order to suspend PCSO-sanctioned gaming came a few days before Pacific Online’s contract with the PCSO is set to expire on July 31.

Meanwhile, shares in Berjaya Philippines, Inc. fell 6.51% or 17 centavos to close at P2.44 apiece. The company, through affiliate Philippine Gaming Management Corp. (PGMC), has an equipment lease agreement with the PCSO that will also expire on Aug. 22.

In an earlier disclosure, PGMC said it was the lone company declared as eligible bidder for the five-year lease of the PCSO Lottery System. The contract covers areas in Luzon, Visayas, and Mindanao. Asked whether the company bagged the deal, a company representative said details on the matter were not immediately available, while the PCSO did not respond to requests for comment as of early evening.

In a disclosure on Monday, Pacific Online said it was coordinating with the PCSO and supported its move to ask the president to reconsider his decision.

“The negative impact… on the operations the corporation and its subsidiaries are inestimable at this point, and the corporation can only hope that the suspension will be lifted sooner rather than later,” the company said.

“Further, the corporation is fully confident that, as a listed company, its transactions with PCSO on both lotto and Keno were entered into in accordance with law, and are above-board and fair.”

For its part, Berjaya said it hopes the suspension will not last for “an extended period of time for the sake of its more than 74 employees.” The company added that it also has other investments that could protect the interests of independent and minority shareholders, such as its luxury car and hotel businesses.

Sought for comment, COL Financial Group, Inc. Chief Equity Strategist April Lynn C. Lee-Tan said: “I guess at this stage, it’s super uncertain that’s why people are staying on the sidelines.”

“On the positive side, the casino stocks will hopefully not be affected. So the effect will not be on the entire gaming sector,” she said in an interview on Monday.

Pacific Online swung to an attributable loss of P56.14 million last semester, against a net income attributable to the parent of P53.1 million in last year’s first half, amid a 51% year-on-year decline in gross revenues to P264.96 million.

For Berjaya, net income attributable to the parent dropped 29% year-on-year to P138.80 million in the quarter ending January, following a five percent dip in gross revenues to P6.98 billion for the same periods.

DoF assures no major health care impact from PCSO games’ suspension

INDEFINITE SUSPENSION of Philippine Charity Sweepstakes Office (PCSO)-sanctioned gaming will have minimal impact on universal health care (UHC) funding, since lottery proceeds are estimated to contribute just P3 billion or 1.2% to the P257 billion needed for UHC implementation next year, a senior official of the Department of Finance (DoF) said.

“Of the P257 billion required for UHC in 2020, the estimated share from PCSO is 3 [billion pesos], less than 1.2% of the total budget. Of the estimated 1.437 [trillion pesos] required for five years, 16.6 [billion pesos] from PCSO — also less than 1.2% of the total budget,” Finance Assistant Secretary Antonio Joselito G. Lambino II said in a mobile phone message on Sunday evening.

Republic Act No. (RA) 11223, or the Universal Health Care Act enacted last February, aims to expand Philippine Health Insurance Corp. coverage for primary care to 120 drugs. Under this law, among others, there will be no limit to primary care treatment conditions.

Adding to the pool of UHC funds, according to DoF, is P15.7 billion for 2020 and P129.9 billion over five years from the increased excise tax rate for tobacco products to P60 per pack by 2023 from P35 currently.

“Our revenue estimates for the newly signed tobacco tax law, RA11346… is 15.7 [billion pesos] for 2020 and 129.9 [billion pesos] over the first 5 years of implementation,” Mr. Lambino said in his text message.

Mr. Lambino said DoF will now focus on pushing legislative approval of higher excise tax rates for alcohol and e-cigarettes to bridge the UHC funding gap.

“We’re focusing our efforts on the alcohol and e-cig package… we have initial estimates of 15.8 B[illion] in the first year and a total of 111.5 B[illion] over five years based on the version approved by the House [of Representatives] in the 17th Congress. We can aim for even higher in the alcohol and e-cig package since the previous version only included alcohol,” he added.

RA 11223, or the UHC law, provides that 40% of PCSO’s Charity Fund will help fund implementation of this program, besides half of the national government’s share in Philippine Amusement Gaming Corp. income and total incremental collections of higher tobacco and alcohol excise tax collections under RA 10351.

Also yesterday, the Department of Labor and Employment (DoLE) said it will assist workers affected by the lotto stoppage. “With the closure of Lotto, STL (small town lottery), Keno (Lotto Express), Peryahan (ng Bayan or PNB)… marami siguro ang madi-dislocate (we think that many will be dislocated from their jobs) so we will provide emergency employment,” Mr. Bello said.

The Philippine National Police said that, as of Monday, it had closed 30,284 PCSO gaming outlets consisting of 20,241 STL, 6,313 Lotto, 2,762 PnB, 778 Keno and 190 STL.

Labor Assistant Secretary Benjo Santos M. Benavidez said in the same press briefing that the department is working with the Social Security System (SSS) in order to provide unemployment assistance. “’Yung mga manggagawa na madi-displace by reason of involuntary causes, pwede sila mag-avail ng unemployment insurance. Ang gagawin nila ay maga-apply sila sa SSS pero bago nila gawin yan ay dapat kumuha sila ng certification sa DoLE… na sila ay natanggal by reason of involuntary termination (Workers displaced involuntarily can avail of unemployment insurance from the SSS, but before they do that, they will need DoLE’s certification that they are unemployed by reason of involuntary termination),” he said, adding that workers are eligible for such assistance provided they have contributed to the SSS for at least 36 months.

The PCSO itself said in a statement on Monday that its “Individual Medical Assistance Program (IMAP) services at the Lung Center of the Philippines in Quezon City and all PCSO branch offices nationwide will still be available today onwards, unless otherwise instructed.”

Those holding winning lotto and other tickets, the PCSO said, may still claim their prizes at the PCSO head office at the Conservatory Building along Shaw Boulevard in Mandaluyong City from 8:15 a.m. to 4:30 p.m., Monday to Friday.

The Supreme Court ordered all trial courts to submits reports by Aug. 15 on cases pending before them involving the PCSO, following “serious allegations of massive corruption involving small town lottery and other gaming franchises issued by the PCSO, some of which have supposedly reached the courts.” — Beatrice M. Laforga, Gillian M. Cortez, Arjay L. Balinbin and V. M. M. Villegas

Offshore gaming firms’ growth drives demand for office space

By Bjorn Biel M. Beltran
Special Features Writer

PHILIPPINE offshore gaming operators (POGOs) have overtaken the Information Technology and Business Process Management (IT-BPM) industry in terms of office demand, a property consultancy firm found.

Pronove Tai International Property Consultants Chief Executive Officer Monique Cornelio-Pronove said in a media briefing that a shift in landlord strategy across Metro Manila has led to a surge in the growth of POGOs, with the demand from Chinese-run firms in the first half of the year already exceeding 2018’s full-year take-up by 37%.

In 2018, POGOs took up 229,000 square meters (sq. m.) of office space, while take-up for this year was at 315,000 sq.m. as of June 30 this year.

“Whilst in the past two years, the offshore gaming operators were beleaguered due to the lack of clear regulatory environment which virtually turned this type of occupier into a pariah in the business community, this year has significantly been different,” Ms. Pronove said.

“More and more landlords and local government units have warmed up to having them as tenants. Proof of this is the increase in leasing transactions accounted for by the POGOs during the first half of 2019,” she added.

Of the 703,000 sq.m. of office space transacted, 45% was taken up by POGOs, Ms. Pronove said. The traditional office segment and IT-BPM lagged behind at 28% and 26%, respectively.

Much of the growth in demand could be attributed to the growing acceptance of POGOs among Philippine landlords. From only three LGUs giving Letters of No Objection (LONOs) to POGOs in 2016, there are now seven cities in Metro Manila issuing this document required by the Philippine Amusement and Gaming Corporation (PAGCOR) for POGOs to operate in its areas.

These cities include Makati, Pasay, Parañaque, Mandaluyong, Las Piñas, Muntinlupa, and recently Quezon City by way of Special Use Permits (SUPs). To date, Taguig City has yet to issue LONOs to POGOs, but hosts the largest IT-BPM locators in the country and remains to be its preferred district.

Overall office leasing transactions grew by 36% year on year from 481,000 sq.m. in the first half of 2018 to 703,000 sq.m. during the same period this year. POGOs demand over the year registered the highest growth at 216%, while IT-BPM registered an unprecedented contraction at -8% year-on-year from 204,000 sq. m. to 187,000 square meter.

SLOWING DEMAND FROM IT-BPM SECTOR
Once the main driver of office space demand, the IT-BPM sector has dropped to third in the demand ranking, behind POGO and traditional office occupiers in the first half of the year, for the first time in 18 years, according to Pronove Tai.

Ms. Pronove said that the government-issued moratorium on economic zone proclamations in Metro Manila, as well as looming fears regarding the second package of the Duterte administration’s Comprehensive Tax Reform Program, have caused a ripple effect in the IT-BPM sector’s continued development.

“The moratorium order issued on June 17 banning economic zone proclamations in Metro Manila has exacerbated the situation for the IT-BPM market,” she said.

“While decentralizing demand to suburban areas is commendable to provide impetus for growth in other areas, the government should provide a business-friendly environment across all locations where businesses have the flexibility and support to choose where it deems fit to expand based on its own parameters.”

The IT-BPM sector, however, still accounts for a significant portion of the Philippine office space market, occupying 35% of all office stock in Metro Manila or approximately 3.9 million sq.m. of space.

According to Pronove Tai, for the past two years, the sector’s average annual demand is 425,000 sq.m. in an environment where the average supply is one million sq.m. per annum.

“While we forecast the POGO sector to double its space this year, a diverse tenancy mix is always a success formula, thus we suggest the government to rethink its moratorium order,” Ms. Pronove said.

Trying to fool Great Whites

SUMMER has come to the Northern Hemisphere and that means it’s Shark Week time again. The longest-running cable TV programming returns with shows meant to provide further knowledge and dispel misconceptions about sharks and the efforts to conserve the species.

Now on it’s 31st year, the shows will run until Aug. 4 on Discovery Channel and they are streamable on its website and the Discovery Go app. The channel, on its website, noted that they have prepared “more than 20 hours of shark programming throughout the week,” including shows presenting “brand-new shark research technology” including the first “‘drone-towed’ seal decoy and cutting-edge surveillance tools.”

“Shark Week will uncover mysteries on some of the most unique shark species in the world,” the website said.

Last year, Shark Week’s 30th anniversary garnered 34.9 million viewers.

Among the shows running during Shark Week is Andrew Mayne: Ghost Diver which premieres on Aug. 2 in the US. The show will feature illusionist Andrew Mayne as he attempts to create “the first-of-its-kind Shark Suit to overcome the senses of a great white shark and make him invisible to the world’s most perfect predator” in order to put himself in the middle of a Great White Shark frenzy in Australia.

“I was looking at ways to make it easier for researchers to get close to sharks and observe them without disturbing them. I have a background in magic and illusion design and wondered what if that, if anything, crossed over to an entirely different species that has much more adept senses than I do,” Mr. Mayne told BusinessWorld in an interview on July 24.

He added that throughout the show, he will be seen testing a couple different version of the suit as he gets feedback from experts “about what I needed to focus on and what happened when the ultimate experts: the sharks, thought of my experiments.”

While he admitted that he only had a short time to test the suits, but he was hopeful he could learn something and he did. Overall, he said the whole point of the experiment was to be able to observe sharks better and to protect them.

Other programs over Shark Week include Laws of Jaws: Dangerous Waters which airs on July 30, with hosts Paul de Gelder, Mike Dornellas, Nick LeBeouf, and Jamin Martinelli reenacting five recent shark attacks to find out how things could have ended differently.

On Shark Trip: Eat. Prey. Chum, actor/comedian and retired US Marine Rob Riggle takes some of his celebrity friends to swim with the sharks. The show premiered on July 28.

For this year’s Shark Week, ocean conservation group Oceana partnered with Discovery Network to “help protect sharks from a global shark fin trade that harms as many as 73 million sharks each year,” as they try to raise money to fight against the trade and educate fans of Shark Week about the importance of sharks in maintaining a healthy ocean ecosystem.

The network will also be working with Ocean Conservancy to help clean up “beaches and inland waterways” in the US “to keep the homes of sharks and other marine life clean and habitable,” said the website. — Z.B. Chua

Meralco Q2 core profit up 13%

By Victor V. Saulon, Sub-Editor

MANILA Electric Co. (Meralco) grew its core net income by 13.2% to P6.72 billion in the second quarter, in part brought about by the minimal weather disturbance and lower inflation, company officials said on Monday.

“The year started slow with energy sales volume growing only by 2% in the first quarter. However, the second quarter picked up as shown by an 8% increase in volume,” said Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, during the company’s briefing to announce its first-half operating and financial results.

Including one-time items, reported net income slipped by 4.9% to P6.34 billion.

In the first half, core net income rose by 14% to P12.32 billion, while reported profit was flat at 0.3% to P12.01 billion.

With the period’s performance, Meralco Chairman Manuel V. Pangilinan said he expects 2019 to be a better year compared to last year in terms of core profit.

“I would say at least P23 [billion] siguro this year to be safe,” he told reporters.

Last year, Meralco’s core net income rose 10.9% to P22.41 billion, 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.

Ms. Siy-Yap said the energy sales increase was brought about largely by the increase in average temperature in the first half compared with a year ago, “and also due to very minimal weather disturbance and no prolonged power interruptions other than the MLD or manual load drops.”

“With an efficient energy sourcing and highly dependable Meralco network plus significantly lower inflation, the lowest recorded since August of 2017, which boosted consumer confidence,” she said.

Consolidated revenues in the first half was at P165 billion, 10% higher compared with the level in the previous year.

“Revenues for both quarters registered higher growth rates than sales volume brought about largely by higher generation charge with increase in prices in the wholesale electricity spot market and the weakening of the peso versus the US dollar,” Ms. Siy-Yap said.

Volume of energy sales during the semester was at 22,823 gigawatt-hours (GWh), up 5% compared with the 21,665 GWh a year ago. Meralco also reported its costs and expenses to have expanded by 9% to P149.6 billion.

The total number of billed customers rose to 6.7 million as of June 30, or a year-on-year growth of more than 4%.

Energy sales grew across all customer segments, Meralco said, but overall, the residential segment dominated both average consumption in gigawatt-hours and end-use installation count.

In a statement issued during the briefing, Mr. Pangilinan said the power plant in Mauban, Quezon of the utility’s subsidiary Meralco PowerGen Corp. had been synchronized to the Luzon transmission grid.

“We are happy to announce the successful synchronization to the grid of the 455 MW (megawatt net) San Buenaventura (Power Ltd. Co.) supercritical coal-fired power plant during the second quarter and are even more encouraged with its achievement of supercritical pressure and full load output in May, as we look forward to its full commercial operations later in the year,” he said.

On Monday, shares in the company slipped by 0.80% to close at P372 each.

Four Weddings gets a reboot, without the floppy-haired Brit

LOS ANGELES — Imagine Four Weddings and a Funeral without Hugh Grant?

That was the challenge for the makers of a new TV series that puts a 21st-century twist on the 1994 British romantic comedy that made the fumbling, quintessentially English Grant an international star.

So they decided to center the 10-episode series for Hulu on American characters with British connections and chose a multiracial cast.

“One thing I didn’t want to do was have a floppy-haired British guy,” series co-creator Mindy Kaling said, referring to Grant.

“There are other ways of being really sexy,” Ms. Kaling told reporters on Friday at a Television Critics Association meeting.

The TV series, also called Four Weddings and a Funeral will launch on Hulu on July 31.

Ms. Kaling, best known as a co-star and a writer on the US version of The Office, said that re-imagining the beloved British film was daunting.

“It’s terrifying, because we all love the movie so much,” said Kaling, also known for creating and starring in The Mindy Project.

Then the idea for a number of “gentle subversions” came to her, including depicting “a love story between an African-American woman and a British-Pakistani guy.”

In addition, she said she had never seen a film “where a British-Pakistani and an African-American are best friends at work — and they work in finance,” she added.

“The fact that the characters do not seem to have these racial boundaries…. was really refreshing,” said Ms. Kaling, an American of South Asian heritage.

The Four Weddings and a Funeral movie followed the ups and downs of an all-white group of close British friends as they search for, miss out on, and lose love. It brought Grant a Golden Globe and launched a series of romantic comedies written by Richard Curtis.

The Hulu TV series was shot in London with the cooperation of Curtis. It also incorporates nods to famous scenes from other Curtis movies, including Love Actually and Notting Hill, both of which starred Grant.

Andie MacDowell, who starred in the original film, also makes an appearance in the Hulu series — this time as the overbearing Texan mother of one of the posh British women.

“We just wanted to fill the show with Curtis film moments,” said Tracey Wigfield, one of the executive producers. — Reuters

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