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Megaworld allots P350M for Iloilo transport hubs

MEGAWORLD Corp. is investing P350 million for transport hubs at the Iloilo Business Park, which is set to open this year.

In a statement Wednesday, the listed property developer said it is expecting to open the Iloilo Business Park Transport Hubs this year, which will be composed of two terminals — each for departures and arrivals.

“We aim to provide world-class and convenient service in land transport for the local and international travelers in and out of Iloilo City. Hopefully, this will serve as a model for other transport hubs in the region,” Megaworld Head of Estate Management Jose Arnulfo Batac said in the statement.

The two 4,000-square meter terminals will be located at the Megaworld Boulevard at the Iloilo Business Park, which sits across the Festive Walk Mall. Aside from its transport purposes, it will serve as a semi-commercial space with its own food park to match the air-conditioned facility.

The project aims to complement the first premium point-to-point (P2P) service in Western Visayas that the Land Transportation Franchising and Regulatory Board (LTFRB) Region 6 is set to launch today.

The P2P service will have its main hub at the Iloilo Business Park, and will have around 106 buses plying routes to the Iloilo Airport, Roxas Airport, Kalibo Airport and Caticlan Airport (Boracay).

“We thank the LTFRB Region 6 for this partnership, and we hope that we are able to contribute to the success of this modernization campaign for the betterment of the country’s transport industry,” Mr. Batac said.

“All of our townships, especially those in urban centers, serve as convergence points of motorists and commuters. Thus, we integrate transport hubs in our developments to meet the transport needs of the local community,” he added.

Megaworld secured the government’s approval of the transport hub project in March, wherein an ordinance released at the time, the Iloilo government said the hubs may be used for free by public utility jeepneys that cover the city loop and taxis for picking up and dropping off passengers.

The Andrew L. Tan-led firm is allocating P65 billion for capital expenditures this year, which will fund its residential, office and mall projects across the country.

Its attributable profit grew 16% in the first three months of 2019, driven by an increase in revenues from its residential, leasing and hotel businesses. — Denise A. Valdez

Unisys sees open banking gaining ground in PHL

By Karl Angelo N. Vidal
Reporter

UNISYS CORP. expects open banking in the Philippines to accelerate as banks start to unlock their potential and amid the receptive behavior of Filipino clients towards new technology.

“As bankers understand what open banking can do for them and understand more about what it is and what it means, this will accelerate,” said Ian Selbie, Unisys Asia-Pacific solutions director on financial services, said in a recent chance interview. “Our research has shown consistently in the Philippines…that consumers are open to new things.”

Open banking allows financial institutions to connect with customers, merchants, and other financial institutions through the use of application programming interface (API) or a programming code that sends data between software platforms.

Mr. Selbie said open banking in the Philippines is more advanced than perceived.

“Banks (in the Philippines) consider themselves to be behind other banks in the region, but I believe it’s not showing the whole picture,” Mr. Selbie said, pertaining to a study conducted by financial technology Finastra, where the Philippines was tagged as a laggard among Asia-Pacific economies in terms of open banking readiness.

“Banks are thinking open banking is what they do in the UK or Australia where the regulator comes along and tells you to do this,” Mr. Selbie said.

“I know that banks are working with APIs, working closely with fintechs, creating ecosystems. It’s just that they don’t know or realize what they’re doing is open banking.”

He cited Ayala-led Bank of the Philippine Islands which partnered with mobile wallet GCash and online shopping website Lazada to allow clients to top up money from their bank accounts.

“This is what I call real open banking. It’s something you do to create better service for your customers and be more competitive. It’s not because the regulator told you to do,” Mr. Selbie said.

He added that open banking in the Philippines will accelerate as Filipinos trust their banks with their personal data.

In the 2019 Asia Pacific Banking Insights study of Unisys, 42% of Filipino respondents said they trust banks with their personal information, double the 21% who said they are comfortable with sharing their data with the government.

“Filipinos trust their banks. That’s something you can use to your advantage and forming partnerships,” Mr. Selbie said.

“Once the banks get aligned with that and once they realize what’s possible, this (open banking) will accelerate in a way what’s happening in Singapore, UK or Australia… I think we’ll see the banks starting to say this is actually a good thing.”

Demand for term deposits up as BSP doubles offer volume

BANKS’ DEMAND for term deposits rose on Wednesday as the Bangko Sentral ng Pilipinas (BSP) doubled the amount on offer.

The BSP received P83.825 billion in tenders for its term deposit facility (TDF) yesterday, well above the P60 billion placed on the auction block. This is also higher than the P67.548 billion worth of bids received last week for a P30-billion offer.

Broken down, bids for the seven-day papers totalled P27.82 billion, above the P20 billion for auction and more than the P25.42 billion in tenders last week versus the BSP’s P10-billion offer.

Banks sought yields amounting to 4.5-4.6% for the one-week term deposits, the same margin seen in the previous week. Still, the average yield settled at 4.5466%, lower than last week’s 4.5537%.

Meanwhile, the 14-day papers received P33.365 billion in tenders versus the P20 billion placed on the auction block. This is also more than the P22.095-billion bids received last week for the P10 billion on offer.

Accepted yields settled between 4.5% and 4.6588%, narrower than the 4.5-4.6999% margin seen a week ago for the two-week term deposits. This resulted in a decline in the average rate to 4.5931% from 4.6129%.

The 28-day term deposits, on the other hand, received P22.64 billion in tenders, also more than the P20 billion up for grabs and last week’s bids worth P20.033 billion against the P10-billion volume auctioned off.

Returns sought by banks ranged between 4.5% and 4.75%, steady from last week’s margin. The average rate for the one-month deposits declined slightly to 4.6407% from the previous week’s 4.6347%.

The TDF stands as the central bank’s primary tool to shore up excess funds in the financial system and to better guide market interest rates.

The BSP’s Monetary Board last month kept rates unchanged on expectations of steady inflation and economic growth and as it monitors the impact of recent monetary adjustments.

The central bank left the interest rate on the BSP’s overnight reverse repurchase facility untouched at 4.5%. The interest rates on the overnight lending and deposit facilities were likewise held steady at five percent and four percent, respectively.

Sought for comment, BSP Deputy Governor Francisco G. Dakila, Jr. said on Wednesday: “Mayroon talagang mga (There are really) changes [in demand]. We predicted it.”

BSP Governor Benjamin E. Diokno has said the increase in demand for the TDF is partly attributable to excess liquidity caused by recent reductions in banks’ reserve requirement ratios (RRR).

After a 100-basis point (bp) RRR cut across all banks last May 31, the BSP trimmed the reserve ratios of universal and commercial lenders and thrift banks by another 50 bps last June 28 to 16.5% and 6.5%, respectively.

Another 50-bp reduction will be implemented on July 26 to finally bring the RRR of big banks to 16% and thrift banks to 6%, which completes the phased cuts the BSP announced in May. — R.J.N. Ignacio

The Medical City says shareholders elect ‘well-balanced’ board of directors

THE Medical City (TMC) has voted what the institution called a “well-balanced” board of directors during its annual stockholders’ meeting, which was participated in by 93% of shareholders either physically or by proxy.

In a statement on Wednesday, TMC said its stockholders had chosen doctors and management professionals to sit on the board along with three independent directors. The annual meeting was held on Tuesday at the hospital’s Augusto Barcelon Auditorium.

“The recently held elections, with its record stockholder participation, effectively puts to rest any questions on the legitimacy of TMC’s Board and management team,” it said.

Jose Xavier Gonzales was appointed as chairman of the board, while Dr. Eugenio Jose F. Ramos, was appointed president and chief executive officer. Dr. Augusto P. Sarmiento, the remaining original founder of TMC when it was set up in Malate, Manila, was voted into the board as chairman emeritus.

The voting of the board members came as a minority group of stockholders “with less than 1% ownership, led by ex-TMC CEO Dr. Alfredo R.A. Bengzon, had been trying to prevent stockholders from holding elections by pursuing cases with both the regional trial court and the Securities and Exchange Commission (SEC) for the past year,” the institution said.

However, it said in a court resolution dated June 6, 2019, the Court of Appeals denied the petition of Dr. Bengzon, and instead called on TMC to hold its annual stockholders’ meeting as mandated by its own by-laws, while at the same time calling on the SEC to ensure an orderly election.

Voted in as independent directors were Gregory L. Domingo, former secretary of the Department of Trade and Industry; Dr. Michael L. Tan, chancellor of the University of the Philippines; and Salvador G. Tirona, president of Lopez Holdings Corp.

The other directors who were voted in are Dr. Beatrice J. Tiangco, Dr. Ruben G. Kasala, Dr. Rafael S. Claudio, Thomas Smith Jr., Martin Eric Robinson, Jonathan Richard Lewis, Ramon Ricardo Gutierrez, Russel Low Shyian, and Wai Keong Soh.

During the annual meeting, stockholders also voted to ratify changes in the institution’s by-laws to comply with the Revised Corporation Code, which seeks to improve corporate governance and protect minority shareholders. — Vincent Mariel P. Galang

The passing of seasons

By Joseph L. Garcia, Reporter

THE seasons are here to remind us of our place in the universe. Spring, summer, autumn, and winter occur due to the Earth’s axial tilt, and humankind’s existence revolves around this cosmic phenomenon. The seasons also remind us of the passage of time, how things that blossom will die someday, and, perhaps, be reborn in the future.

Conrad Manila’s C Lounge pays tribute to the changing of seasons with Perfect Pair, a weekly degustación showing off seasonal ingredients paired with exquisite wines. This month, the C Lounge is showcasing chili peppers, and we can’t wait for next month’s offering of chocolate. Previous months have seen ingredients like coriander in the spotlight.

Apparently, the thrust for seasonality is a global initiative by the Hilton Group, as part of its #EatDrinkHilton campaign. “Every month, we choose to highlight one seasonal product,” said Clement Huguet, Director of Food and Beverage of Conrad Manila.

BusinessWorld attended one such dinner. The menu changes every Wednesday, and for dinner last week, we were presented with an appetizer of chilled papaya salad and tandoori chicken with sweet chili sauce and a watermelon reduction. This was paired with a 2014 Mouton Cadet Sauvignon Blanc from Bordeaux, from the Baron Philippe de Rothschild estates. The pairing almost provided a shock, injecting a colorful freshness to the ingredients.

The main course was a blackened salmon with nam cham chili dressing with avocado mango micro salad. Each of the ingredients gave balance to each other: the tart mango and the spicy chili gave life back to the fish, while the avocado slice tempered the whole affair. This was paired with another exquisite offering from the Rothschild estates, a Cadet d’Oc 2013 Pinot Noir, which gave the otherwise light dish some depth and gravitas. The meal ended with a light dessert of warm prosecco sabayon of wild berries with a butter cookie serving as the spoon. The exquisite wines and the carefully prepared dishes all cost the sum of P1,450 nett — factoring in the wines, it’s quite a bargain. The meal is available from 6 p.m. to 8 p.m. every Wednesday.

Conrad Manila’s C Lounge is located at Seaside Boulevard corner Coral Way Mall of Asia Complex, Pasay City. For more information, call 833-9999.

From Hong Kong to Macau and back

By Michelle Anne P. Soliman, Reporter

HONG KONG has always been a popular vacation destination among Filipinos. Shopping districts, food hubs, the Victoria Harbour, and Disneyland are some of the destinations that come to mind.

According to data from the Hong Kong Tourism Board (HKTB), there were 894,821 Filipino tourist visits to Hong Kong in 2018, an increase from 705,319 in 2013 attributed to the economic stability of Philippines and an increase in flight capacity.

In an e-mail to BusinessWorld, HKTB Regional Director for South East Asia Raymond Chan said that “family focus” is what makes the Philippines a unique tourism market.

It was this writer’s second time to visit Hong Kong during the media familiarization tour hosted by the HKTB from May 6 to 10. Here are new places, activities and ways to travel around the city:

THE TRAMORAMIC TOUR
While walking is a common way of exploring the city, traveling via tram offers tourists a chance to appreciate the picturesque urban landscape.

The Hong Kong TramOramic Tour is a one-hour ride on a 1920s-style open-top tram. Our tour began at the Causeway Bay Terminus and ended at the Western Market Terminus.

While aboard the tram, passengers learn the history of the city and the current lifestyle of locals through an audio guide (there are eight language options, including Mandarin, Korean, Spanish, and Russian). Despite the rain during our tram ride, we still opted to stay at the upper deck to better see the city landmarks and the busy streets. The TramOramic Tour also includes free Wi-Fi, on-board videos, and a picture gallery of past and present Hong Kong.

For more information, visit https://www.hktramways.com/en/tramoramic or email: tramoramic@hktramways.com.

OCEAN PARK SEAL ENCOUNTER
The room temperature was 15 degrees Celsius when we arrived at Ocean Park Hong Kong’s North Pole Adventure. Fifteen harbor seals were swimming on one side of the pool.

It was the second day of our visit and two writers (including myself) were accompanied by two Ocean Park employees to participate in the Seal Encounter program.

Prior to the encounter, we were led to a locker room where the staff gave a lecture on the various species and behavior of seals, and the threats of unsustainable environmental activities to their existence.

Before we went out to meet with the seals, we had to wear two full-body layers of protective waterproof gear and a life vest. Cellphones and other gadgets were not allowed in the pool area. We were told that if we accidentally dropped these devices in the water, the seals could mistake them for fish and immediately swallow them.

The water felt very cold even with the gear on. We were assisted and made to sit on the side of the pool while maintaining the safety posture — arms crossed below the chest. We met a harbor seal named Lisa, whose fur felt like smooth baby hair. We were allowed to touch only her back and stomach since other body parts, such as the head and tail, are sensitive. Afterward, we had our photos taken with the seals and we also fed them raw sardines. When we waved goodbye, the seals did the same by waving their flippers accompanied by splashes of water.

The seal encounter accommodates four participants per tour. For more information, visit https://www.oceanpark.com.hk/en/park-experience/get-closer-to-the-animals/seal-encounter.

HONG KONG-ZHUHAI-MACAU BRIDGE
It was a rainy afternoon when we went on a 45-minute drive to Macau through the newly constructed 55-kilometer Hong Kong–Zhuhai–Macau Bridge which connects Hong Kong to cities throughout the Greater Bay Area of southern China.

The bridge, which opened in October 2018, is the first major combined road-and-tunnel sea-crossing in the Greater Bay Area, spanning the sea from an artificial island near Hong Kong International Airport to Macau and the mainland Chinese city of Zhuhai.

Immigration processing is required at both ends of the trip at the passenger clearance building. A closed road permit and vehicle insurance which are valid in the three cities is a requirement for cars that will go on the bridge.

“With the Hong Kong–Zhuhai–Macau Bridge bridge, we would like to showcase and promote the places around the Greater Bay area that are accessible and convenient for tourists to visit,” Mr. Chan, the HKTB regional officer, wrote to BusinessWorld.

For more information, visit https://www.hzmb.gov.hk/en/.

OLD MACAU WALKING TOUR
This hour-long tour takes you from Rua do Visconde Paco de Arcos to the Ruins of St. Paul’s on Rua de Sao Paulo.

The narrow cobblestone streets of old Macau are lined with preserved two-story buildings, which are either residences or small shops. The distinct structures are painted wooden double doors with multiple locks, and windows textured with oyster shells.

European and Eastern architecture merged as we arrived at the busy streets of Senado Square — a shopping hub with a variety of brands, Chinese street food vendors, and fresh flower stalls.

We ended the walking tour by climbing the steps to the Ruins of St. Paul’s Church, which was completed in 1644 after it caught fire in 1595 and 1601. The Church was again destroyed in a fire in 1835 and only its faÇade was left. Listed as part of the Historic Centre of Macau, a UNESCO World Heritage Site, the Ruins are covered with carvings of flowers, celestial bodies, and Chinese inscriptions.

For more information on the walking tours, visit http://en.macaotourism.gov.mo/plan/walking_tours.php?id=1334.

THE XIQU CENTRE
At the junction of Canton Road and Austin Road West in Tsim Sha Tsui at the West Kowloon Cultural District stands the Xiqu Centre. The 28,164-square-meter lantern-like theater which opened in January stages Cantonese operas and Chinese traditional theater.

The eight-story building houses a 1,050-seat Grand Theater, a 450-square meter Atrium, the Tea House Theatre, a seminar hall, and eight studios. Its other facilities include a tea house and a souvenir shop.

Inside the Tea House Theater, viewers sit on armchairs with small side tables. Dim sum and tea (which remained warm as it sat in its metal cup compartment) were served as we watched a show by the Tea House Rising Stars Troupe. The 90-minute program includes a musical number using traditional Chinese instruments, narration by a moderator about the art form, and two opera excerpts.

The excerpt of the Cantonese opera that evening was a story of a female ghost who visited her living lover at his home to warn him of a murder plot against him. The actors, dressed in traditional gowns, sang in distinctly high-pitched legato melodies.

For information, visit https://www.westkowloon.hk/en/home.

HONG KONG DESIGN DISTRICT
To provide tourists with a different way to explore the city, the Hong Kong Design Centre launched Design District Hong Kong (#ddHK) — a three-year creative tourism project spanning 2018–2021 in the Wan Chai district.

A component called #ddPaintHKWALLS features over 30 murals by local and international artists. It was done to position Wan Chai as an “open-air design district gallery.” The public spaces include the Morrison Hill Swimming Pool, Tang Shiu Kin Victoria Government Secondary School, and VTC Tower.

“We looked into the buildings, whether they’re historical or privately owned. If it’s historical, we cannot touch the walls. We also needed to find the consent of the district council (before doing the artworks),” Design District Hong Kong project consultant Sam Lam told BusinessWorld during the walking tour, of how the locations where chosen.

“We are not doing an art project. We are doing placemaking which means we want to create community engagement,” Ms. Lam said.

Spotify unveils ‘Lite’ app for slower phones in emerging markets

SPOTIFY Technology SA released a new version of its music streaming app for customers in emerging markets, an effort to grow outside of its strongholds in the US and Europe.

The Spotify Lite app, which runs on Android phones, will appeal to users who are limited by data plans and slower networks, especially in regions like Asia, the Middle East, Africa and Latin America, the company said in a statement. The app was released in 36 markets and an ad-supported service will be available for free while a premium version will cost the same as on its regular music-streaming platform.

The company is counting on Spotify Lite for a much-needed boost in markets with lots of potential. The streaming service also needs to reassure investors about its growth prospects while it continues to lose money. The shares are down 26% from their high a year ago.

“There’s much, much room for us to grow, both geographically and also product-wise,” Cecilia Qvist, Spotify’s global head of markets, told the RISE tech conference in Hong Kong. “Hopefully when we thrive, the ecosystem thrives.”

Spotify’s biggest challenge remains the royalties it pays for music rights, which eat up more than 60% of revenue and are a major source of its losses. The company has agreed not to push for another cut in fees in its current of negotiations with the music industry.

That’s prompted Spotify to seek other avenues for growth, such as podcasting. But podcasting is still a nascent business, with $479.1 million in US revenue in 2018, according to the Interactive Advertising Bureau. An estimated 62 million people in the US over the age of 12 listen to a podcast every week, according to a 2019 report by Edison Research and Triton Digital.

Spotify has asked investors to trust that the market for audio streaming is still in its early stages. The company counts on North America and Europe for 65% of its users. Africa, Asia, and the Middle East make up just 13%.

YOUTUBE LIGHT
Rival YouTube has already introduced a light version of its app for emerging markets, and has added millions of users across Southeast Asia. Netflix Inc., meanwhile, made it possible for users to download full movies and TV shows to watch offline for the same reason.

Spotify isn’t in as many countries as either of those services, but has been expanding across Asia, the Middle East and North Africa.

Spotify Lite will use of 10 megabytes of storage, compared with about 100 megabytes for the main app. It offers the same look and feel as the normal Spotify app, but with limitations to preserve data consumption. Users can also set a data limit within the app to ensure they never exceed it.

“‘Lite’ is a small, fast and simplified version of our unparalleled music experience that works much like the main Spotify app,” the company said in a blog post. — Bloomberg

IC issues cease and desist order vs Caritas Health

THE INSURANCE Commission (IC) issued a cease and desist order against health maintenance organization (HMO) Caritas Health Shield, Inc. due to alleged fraudulent card swiping and misrepresentation of sales agents.

In a statement sent to reporters on Wednesday, the IC said it issued a cease and desist order against Caritas Health Shield dated July 8, banning the HMO from selling new products or transacting new business.

Insurance Commissioner Dennis B. Funa said the regulatory body earlier required Caritas Health Shield to show why it should not be ordered to stop accepting clients following reports of “fraudulent swiping of credit/debit cards” and “misrepresentations of the company’s sales agents.”

However, the IC was unconvinced by the explanation given by the firm, saying Caritas Health Shield “acknowledged that there have been instances of unauthorized swiping and misrepresentations committed by its sales agents.”

“[T]he Commission’s continuing receipt of numerous complaints against Caritas Health from the general public demonstrates the prima facie inadequacy and unresponsiveness of the company’s action plans,” Mr. Funa said.

The IC chief added that the main problems under the circumstances are the “unethical conduct” of Caritas Health’s erring agents and sales associates as well as the “apparent lack of timely and effective” intervention by its management.

Under Section 4(e) of Executive Order No. 192, series of 2015 signed by former President Benigno S.C. Aquino III, the regulatory agency is empowered to “issue orders to prevent fraud and injury to the HMO plan holders and industry stakeholders.”

“It will be utterly preposterous and a patent disservice to the general public and the HMO industry if this Commission will sit idly by and wait until more complaints are reported before taking action,” Mr. Funa said.

Despite the ban on selling new HMO products, the IC directed Caritas Health Shield to continue servicing its existing clients and to provide uninterrupted service.

Mr. Funa will also deploy an overseer to ensure the HMO’s compliance with the order.

To recall, the Insurance Commission issued a show-cause order against Caritas Health in 2017 on the same issues involving its sales agents. — K.A.N. Vidal

PLDT, Smart provide fastest internet connections in Philippines — Ookla

PLDT-Smart attributed its improved internet speeds to higher network investments. — CATHY ROSE A. GARCIA

PLDT, Inc. and its wireless unit Smart Communications, Inc. provided the fastest fixed and mobile internet speeds in the country during the first half of the year, according to Ookla.

Based on the internet speed surveyor’s Fastest Fixed Network survey, PLDT reached a speed score of 20.44 in the first six months of 2019, as it recorded a top download speed of 51.36 Megabits per second (Mbps) and top upload speed of 54.22 Mbps.

The speed score is a measure that accounts for a provider’s download and upload speed to rank network speed performance.

PLDT’s speed score in the January to June period is an improvement from its score of 18.57 in the last Ookla speed test, which covered the second half of 2018.

Trailing it in the latest rankings are Sky, SmartBro and Globe Telecom, Inc., which all recorded improvements in its speed scores during the first half of the year. Sky obtained a score of 11.76 in the January to June period from 11.23 in the second half of 2018, SmartBro got 11.07 from 10.99, and Globe scored 10.04 from 9.36.

For the Ookla Fastest Mobile Data Network survey, Smart also topped its rival with a speed score of 17.07 in the first half of the year, recording an average download speed of 19.33 Mbps and average upload speed of 9.16 Mbps.

The latest speed score is again an improvement from the 15.57 it obtained in the second half of 2018.

Globe got a speed score of 10.05 to reflect an average download speed of 11.38 Mbps and average upload speed of 4.74 Mbps.

Globe slipped from the 10.10 speed score it had in the second quarter of 2018, as its average download speed went slower from 13.85 Mbps and average upload speed from 6.35 Mbps in the last six months of 2018.

PLDT-Smart attributed the improvement in its performance to the higher investments for its network.

“Now that our subscribers use more data, and as we continue to bring in new customers, we have to ensure they get fast and reliable connection all the time. We continue to build and expand our fiber and LTE network to meet those needs,” PLDT-Smart Senior Vice-President for Network Planning and Engineering Mario G. Tamayo said in a statement.

Globe was sought for comment on the rankings but was not able to respond as of press time.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Waymo tests Wi-Fi in driverless taxis hoping perks can route it past rivals

SAN FRANCISCO — Waymo is rolling out amenities to entice riders to use its self-driving taxis, creating a potential route to profitability in a money-losing industry.

The Alphabet Inc. subsidiary is testing complimentary Wi-Fi in its robotaxis in greater Phoenix, where hundreds of the company’s identical, driverless minivans have been carrying paying riders since December. In late April, Waymo launched ad-free music streaming for passengers through Google Play Music, its parent company’s answer to Spotify and Apple Music.

Waymo also has appealed to families with non-tech perks: It has installed a child car seat in every minivan and ensures vehicles arrive cooled to a precise 72 degrees in Arizona’s desert heat.

The aim is persuading passengers that the company’s ride service, dubbed Waymo One, is less stressful than driving their own cars or riding with its rivals. Chatty or sketchy drivers, and vehicles that vary in size and cleanliness, are top gripes among fans of ride-hailing apps.

“When I push the Waymo button I know exactly the product I’m buying,” said Jordan Ranous, 26, a Phoenix bank analyst who said he takes four Waymo round trips each week.

The city of Chandler, about 20 miles southeast of Phoenix, last month began allowing staffers to expense Waymo rides for work-related trips with an eye to boosting worker productivity.

Waymo’s challenge is to prove that hospitality and connectivity can generate profits. Waymo currently charges rates comparable to Uber and Lyft, whose reliance on fares has those firms bleeding red ink.

Eliminating drivers would slash Waymo’s labor costs. Consistent, quality service might enable the company to charge higher fares, while internet, music and video streaming could generate extra fees or ad sales. Wall Street investment analysts have estimated Waymo’s value at more than $100 billion, assuming in-car services contribute revenue.

“Those who win this space are going to have the most convenient solution and the best experience,” said Mark Boyadjis, a global auto technology lead at research firm IHS Markit.

Waymo said its core business is charging for rides, not advertising during them. Providing “personalization” perks creates a sense of freedom, it said.

“Whether you want to catch up on emails or jam out to some of your favorite tunes using our music integration, we encourage riders to make this space their own,” spokeswoman Julianne McGoldrick said.

Uber Technologies Inc. and Lyft Inc., both of which are developing self-driving capabilities, declined to comment. Automotive firm Aptiv Plc, which has a year-old operation in Las Vegas with 30 robotaxis, said it does not offer in-car entertainment.

INTERNET TEST
Waymo’s Chrysler Pacifica minivans currently ply a 100-square-mile territory around Phoenix. More than 1,000 users are participating in the trial, the largest of its kind in the nation. They request rides through Waymo’s app.

The Wi-Fi, which has not been previously reported, is available to a subset of users who get to test features but are barred by Waymo from talking publicly about their experience. Two riders told Reuters they first noticed laminated fliers with Wi-Fi instructions in vans in April.

Whether Wi-Fi proves a big enticement remains to be seen. After all, riders can browse the web on their own smartphones.

Still, Waymo users say Wi-Fi would allow them work on their laptops or stream video once the company allows longer-distance rides.

The city of Chandler, which has budgeted $30,000 over the next year for employees’ Waymo fares, said its workers are not in the Wi-Fi test. Still, they stand to benefit from making full use of their phones during rides, something they are restricted from doing behind the wheels of city cars, economic development manager Micah Miranda said.

Workers must document their activities during each Waymo ride. The goal is measuring productivity gains, something Chandler has not tracked with employees traveling via Uber or Lyft, Miranda said.

Waymo declined to disclose when Wi-Fi testing began, its internet speeds or its providers. The company did say its network has no usage restrictions and that any data it collects from passengers is governed by its general privacy policy.

‘NO CURVEBALLS’
Waymo said all riders can play ad-free music through the minivan’s speakers without fees. Riders select among eight playlists on seatback touchscreens or tap “I’m feeling lucky” to hear a different collection of songs.

Passengers can link their Waymo and Google Play Music accounts to listen to playlists they create. Two Waymo users told Reuters they joined the Google service for this reason.

Others enjoy the opportunity to collect their thoughts while not feeling obliged to interact with a driver. Human drivers are present in each Waymo minivan in case of emergency, but they refrain from speaking during trips.

“My favorite thing is it’s calm and peaceful,” said Arizona passenger Allison Lewis, who goes on date nights using Waymo twice a month.

Passengers say they also like the identical set-up of each van, which can seat three adults and two kids. A child car seat is installed in the back row; a booster seat is nearby if needed. Charging cables are ready to go.

“My five year old digs our robot car,” customer Ranous said. “There’s no curveballs.” — Reuters

No frills, just the important things

WITH THE opening of Seda Hotel BGC’s second tower comes the reimagining of its signature buffet restaurant, Misto.

Misto opened late last month, showing off prime cuts of beef, lamb, and pork; a tempura station; a noodle station with customized offerings; salad greens and fruits on ice; Napoletana pizza with an extra thin, airy crust made from genuine caputo flour; and piping hot Indian dishes from the tandoori oven. All of this will be available for seven days a week at P888. Old favorites from Misto like the Osso Bucco Lamb Shanks, Grilled Cedar Plank Salmon, Lasagna, Crispy Tadyang and Bagnet will still be made available at the buffet; and when it isn’t, it will be on an à la carte basis.

The restaurant now serves 220 people. “With 500 rooms, we really need to have a restaurant that can cater to at least 200,” said Seda Group Director for Sales and Marketing Melissa Carlos.

The hotel has jumped up from having 179 rooms to 500 with the hotel’s expansion, which took three years. The renovated hotel comes with a shiny new lobby, more parking spaces, a ballroom that can fit 300 people, and several function rooms. Plans to improve its bar, Straight Up, are also in the works.

There are more than 300 new rooms slated for use in the hotel, but for now, only the Deluxe rooms will be put to use — the suites will have to wait for later in the year. Environmentally friendly toiletries have also been placed in the hotel, care of an Australian company, complete with biodegradable plastic containers.

“[During] the time that we were just opening the hotel, we realized that we didn’t have enough rooms,” said Ms. Carlos. She also said that the demand for more rooms in the hotel came to a point that they would reach almost full capacity during the weekends.

It used to be that Seda BGC was one of the few hotels in that financial district, but since it opened, it has seen the rise of more luxurious properties like the Shangri-La at the Fort and the Grand Hyatt. Ms. Carlos admits that they exist on different price points and categories, and affirms that the Seda expansion will only lead to improvements, as well as retaining the brand of service that Seda customers have been familiar with. “We have sustained the level of service — still the same efficient service. It’s a no-frills hotel. We want to make sure that we provide the important things that you need when you stay at a hotel.” — Joseph L. Garcia

China Bank sees loan growth easing slightly

By Karl Angelo N. Vidal, Reporter

CHINA BANKING Corp. (China Bank) expects its loan growth to ease slightly this year due to base effects following inflation’s surge in 2018.

China Bank Chief Financial Officer Patrick D. Cheng said on Wednesday that the Sy-led lender expects its loan book to grow “in the lower teens” this year, coming from “higher teens” reported in the previous years.

“Obviously, it has come down a little bit. I think in the last couple of years, we were doing 17-18%,” Mr. Cheng told reporters following the bank’s peso bond listing ceremony yesterday.

“[W]ith what happened last year with the macroeconomic (fundamentals)… Inflation climbed. In general, the banking industry has tapered down a bit. I think we’re in the lower teens. Whereas before, we were in the higher teens.”

Headline inflation surged to 5.2% last year against the 2-4% full-year target of the Bangko Sentral ng Pilipinas (BSP), climbing to a nine-year high of 6.7% in September and October due to soaring rice and fuel costs.

To quell prices and inflation expectations, the central bank raised interest rates by 175 basis points (bp) though five consecutive adjustments.

Still, Mr. Cheng is optimistic about the bank’s lending growth — describing it as “good” — as well as economic developments.

“[D]efinitely, the macroeconomic environment now is a little bit better than last year. Inflation is going down, the BSP reduced interest rates by 25 bps. They also cut reserve requirements, and the peso is also on the stronger side of the BSP’s levels,” Mr. Cheng said in a mix of Filipino and English.

In 2018, China Bank’s loan book reached P513 billion, up 13% from the P454 billion logged in 2017, driven by the 20% expansion in the consumer lending segment as well as the 18% growth in corporate loans.

The official added that China Bank intends to grow its retail loans a little bit faster than corporate and commercial accounts, although he noted that it will not “change the mix dramatically.”

“We’re obviously targeting faster growth in retail but we’re coming from a small base. We will also not forget our core, which is our loyal clients — the businessmen and entrepreneurs. That continues to be the major portion,” he said.

Alexander C. Escucha, China Bank’s head of investor and consumer relations, said its retail loan book has been growing at a fast pace.

“Even if you say you slowed down to 12-14%, that masks the fact that our consumer loans, housing and auto (loans) for both the parent and savings bank, are growing in the high 20s,” Mr. Escucha said. “That has been continuing in the last five years. There’s no slowdown.”

Yesterday, China Bank listed on the Philippine Dealing & Exchange Corp. P30-billion worth of bonds raised via its maiden offering out of its fund-raising program.

The one-and-a-half year debt papers carry an interest rate of 5.7% per annum to be paid on a monthly basis until January 2021.

The raised amount was upsized from the initial target of P5 billion to accommodate strong investor demand.

The bonds offered from June 10-28 marked the first tranche of China Bank’s P75-billion fund-raising program for the next three years intended to support expansion and strategic initiatives.

“We are very grateful for the overwhelming market response which reflects our clients’ confidence in China Bank’s fundamental strength and future prospects,” said China Bank President William C. Whang.

The bank booked a P1.9-billion net income in the first quarter, up 24% year-on-year, driven by robust expansion of its core businesses.

Shares in China Bank closed at P27.05 each on Wednesday, up 15 centavos or 0.56%.