Aviva overhauls UK business, to cut 1,800 jobs

June 7, 2019 | 12:02 am

LONDON — British insurer Aviva will change the structure of its UK business and cut costs across the firm, with the loss of 1,800 jobs, it said on Thursday.

Aviva said it would make cost cuts of 300 million pounds ($380.22 million) over three years, in a statement ahead of its first investor day under new Chief Executive Maurice Tulloch.

The cost base in 2018 was four billion pounds, an Aviva spokeswoman said.

Following the departure of Andy Briggs, head of the life and general insurer’s UK business and a contender for the top job, Aviva said it would review its UK life and general insurance businesses.

Its UK digital business, housed in a former garage in the City’s tech district, will be incorporated into the general insurance business, Aviva said.

Angela Darlington has been appointed interim Chief Executive Officer of UK life and Colm Holmes CEO of general insurance across the group, including Britain.

“Today is the first step in our plan to make Aviva simpler, more competitive and more commercial,” Tulloch said in the statement. “Reducing Aviva’s costs is essential.”

Aviva employs 30,000 people and its international markets include Canada, France, Ireland and Asia.

Aviva said trading to date had been in line with 2018 and reiterated its commitment to a progressive dividend policy. — Reuters

DLSU to open campus in Davao Global Township

June 7, 2019 | 12:01 am

A DE LA SALLE University (DLSU) campus will soon be built within the Davao Global Township (DGT), a 22-hectare mixed-use estate being developed by YHEST Realty and Development Corp.

YHEST Realty and DLSU on May 27 signed a memorandum of agreement (MOA) for the establishment of the De La Salle University Villa-Abrille Center for Professional Development in DGT.

YHEST is the joint venture of Cebu Landmasters, Inc. and the Yuson, Huang, and Tan families belonging to the Villa-Abrille clan of Davao.

YHEST will provide DLSU with 4,000 square meters (sq.m.) of prime office space, rent-free in the premier Corporate Center office building in DGT. The company will also donate P10 million for the school’s operational and other expenses.

“Continuing education has become imperative for businesses today to thrive given the speed of developments in technology, business, engineering and other fields. Through the Villa-Abrille Center we hope to bring the latest knowledge and learnings to Dabawenyos,” YHEST President Frederick H. Yuson said in the statement.

Jose Franco B. Soberano, director of YHEST and chief operating officer of CLI, said the DLSU campus will boost DGT’s bid to become the city’s premiere business district.

“The availability of ongoing education has proven to be a critical element in many business districts not only in Manila but also in the other capitals of the world,” he added.

DLSU College of Computer Studies Dean Rafael Cabredo said that modules in data science and information security will be one of the offerings, as well as engineering and business programs.

DGT is located in Matina district, and will also house office spaces, retail mall, park, civic area, and residential towers. YHEST has begun the construction of Phase 1 of DGT, which will have residential towers, a retail mall, and a civic center. It is set for completion in 2022. — Vincent Mariel P. Galang

How to criticize workers without creating resentment

June 7, 2019 | 12:01 am

Many Filipino workers are overly emotional and unreasonably sensitive. Even with a lot of mistakes, they feel they don’t deserve the criticisms they’re getting from their bosses no matter how hard they try to be objective in the process. Knowing this, what’s the best advice you can tell our people supervisors and managers who are having difficulties in counselling their workers? — Yellow Submarine.

Two taxidermists stopping before a window of a competitor’s shop and began to criticize the way an owl had been mounted on a tree branch. Its eyes were not natural, its wings were not in proportion to its head, its feathers were not neatly arranged and its feet lacked some claws.

Toward the end of their critique and just when they were about to leave, the old owl turned his head and winked at them!

It is often said that criticism in all contexts should be like rain drops. The rain should be gentle enough to nourish a man’s growth without destroying his roots. In the workplace, it is always a challenge for managers to do just that without being misinterpreted for their actions in counseling their workers.

Even the managers don’t enjoy criticizing their workers, and some would simply ignore the problem in the hope it is fixed over time. The trouble is that this doesn’t always happen. This means that ignoring the possibility of a heated confrontation with problem employees could create an even bigger issue.

There’s no choice but to settle the issue squarely with those concerned. And to do just that, you only have to minimize employee resentment by observing the following measures:

One, ensure that the work standards and targets are clear. Leave no room for ambiguity or misinterpretation. If necessary, create visual guides similar to those in dynamic factories where “wrong” and “correct” ways of doing things are visually illustrated. In addition, written job descriptions must be distributed to all concerned.

Two, discuss the issue with the concerned worker in private. This is one of the most important rules in people management. When counseling or a corrective discussion is needed, it is important and necessary to use a private room with no visual or noise distractions. Do not use the private room as a neutral venue for you and the concerned worker and also to put the worker at ease.

Three, offer help to all workers every step of the way. But not excessively so to constrict their movements or the freedom to think for themselves. Make it appear you’re not doing close supervision, no matter how sincere your intentions are. Do Management by Walking Around (or the Gemba Walk) every day to meet people. Being accessible is a positive sign you’re always around to anticipate all possible issues.

Four, use the sandwich approach all the time. It means starting and ending the conversation with all the good things about the person and what he can do in the future. The negative issues are carefully inserted in with the positive ones without diluting the purpose of counseling that may even confuse the worker. After all, if the worker is not doing right, then the right approach may be disciplinary and not counseling.

Five, solicit employee solutions to the performance issue. This is the essence of co-ownership. If the workers are part of creating solutions to a problem, they would be more than glad to concretize its implementation. People who are actively involved as partners in solving problems are the same persons who can only make it happen.

Six, be serious in tackling the issues with the concerned worker. Don’t use humor to lighten the atmosphere. It could backfire against your management and your joke may be misinterpreted as a sarcasm, if not an insult to the other party. On the other hand, control your temper as losing it may only lead to a tense atmosphere.

Seven, focus on the bigger issues at hand. Nothing more than that. Don’t bring in other peripheral or trivial issues that may not be related to the discussion. Also, avoid comparing the concerned worker with others as this could fuel resentment, if not multiply his anger and weaken teamwork within your department.

Eight, document the agreement in clear terms. An email to the concerned worker is more than sufficient to summarize all agreed points and timetable. For this reason, immediately after the end of each counseling session, it’s always advisable to summarize everything what has been agreed upon and what the expectations are.

Last, follow up without being a constant pain. Be patient with the concerned employee up to a certain extent and without losing your cool. If the work performance doesn’t improve immediately, allow some time and make allowances to let the worker adjust. After all, different employees go about correcting their subpar performances at different paces.

ELBONOMICS: Criticize only the things you can’t explain and understand.

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Your Weekend Guide (June 7, 2019)

June 7, 2019 | 12:01 am

Taal culture festival

HISTORIA Culinaria, y Cultura, a two day festival on June 8 and 9 in the heritage town of Taal, Batangas aims to educate visitors on interesting and little known facts about significant segments in Philippine history such as art and architecture. The festival includes talks by experts, guided tours around Taal, film screenings, a photography display of Taal’s historical places. For inquiries, call 0927-975-1683, 0916-633-6706, or 0961-252-3338.

CCP exhibit

THE Cultural Center of the Philippines (CCP), with the support of Outlooke Pointe Foundation, presents On Conflicts and Terrains by Mark Sanchez at the CCP’s 2F Hallway Gallery from June 8 to Aug. 18. For more information, contact the Visual Arts and Museum Division, Production and Exhibition Department at 832-1125 loc. 1504/1505 and 832-3702, 0917-603-3809, or visit www.culturalcenter.gov.ph.

MSO does Cayabyab

THE Manila Symphony Orchestra (MSO) opens its season with a tribute to the music of newly appointed National Artist for Music, Ryan Cayabyab. Mr. Cayabyab’s choral and orchestral output will be interpreted by the MSO under the baton of guest conductor Prof. Jonathan Velasco together with the Ateneo Chamber Singers. The Music of Ryan Cayabyab: An Orchestral Tribute will be held on June 9, 6 p.m., at the Hyundai Hall, Arete, Ateneo de Manila University, Quezon City. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Film screenings at Benilde

A SCENE from the film *Woman is the Future of Man* which will be screened at MCAD.

A SERIES of films focusing on the struggles of searching will be screened at the De La Salle-College of Saint Benilde’s Museum of Contemporary Art and Design (MCAD) on select Saturdays of June. To be screened on June 8 is the Korean movie Woman is the Future of Man, about two college buddies, a professor and a filmmaker, as they reminisce on the woman they both fell in love with at different periods in the past, and eventually embark on journey to find her. To be shown on June 15 is Nostalgia for the Light, a documentary filmed at Chile’s Atacama Desert which revolves around two different explorations: one by astronomers looking for answers about the history of the cosmos, and another by women looking for the remains of their disappeared relatives during General Augusto Pinochet’s 1970s regime. On June 29, Where Is the Friend’s Home will be shown, about a schoolboy’s quest to return the notebook of his classmate who lives in a neighboring village. The 3 p.m. screenings are free and open to the public and will be held at the MCAD Multimedia Room. For inquiries and reservations, call 230-5100 local 3897 or e-mail at mcad@benilde.edu.ph. MCAD is located at Dominga St., Malate, Manila.

Artists walk-through

THE ongoing exhibit City of Bawal closes on June 8 with an artists walk-through and a performance from Isola Rosa. This event is open and free to the public. The artists are Brisa Amir, Datu Arellano, Kristoffer Ardena, Jan Balquin, Lesley-Anne Cao, Miggy Inumerable, Czar Kristoff, Celine Lee, Cris Mora, Indy Paredes, Mark Salvatus, Jel Suarez, and Jose Tong. The exhibit is at the 1335 Mabini gallery, C18 Karrivin Plaza, Chino Roces Ave., Ext., Makati.

TransUnion posts surge in records

June 7, 2019 | 12:01 am

TRANSUNION PHILIPPINES saw robust growth in its account records here, as it targets to partner with more organizations in the near term.

The credit bureau and information solutions provider said in a statement on Thursday that it already has 20.7 million account records in its database as of April, up 570% from the baseline data of 3.1 million records in 2012.

Of the total, approximately 13.7 million are open trade lines such as open mortgages, credit cards, and loans from a total of 8.8 million unique customers.

“The market is maturing at an incredible rate and is providing more and more benefit to Filipinos,” TransUnion Philippines President and Chief Executive Officer Pia Arellano was quoted as saying in a statement.

Modern credit bureaus feature information about how people are maintaining loan payments, which in turn can provide them with access to more financial products at potentially more competitive rates.

The credit bureau expects to see an increase in reporting of 2-3 million more trade lines by the end of the year based on the current trends, it said. It has over 40 organizations such as banks and other financial institutions that contribute information.

TransUnion added that 20 more firms are onboarding soon, particularly from the rural banking sector.

“Our data expansion efforts are well underway. We’ve been in talks with various industries, educating them about our solutions and the benefits it can bring for them and the consumers they serve,” Ms. Arellano said.

The credit bureau added that they are also encouraging utility firms, cooperatives, and insurance companies to partner with them.

TransUnion is one of the special accessing entities that can retrieve data from state-led Credit Information Corp. (CIC), the country’s centralized public credit registry, apart from CIBI Information, Inc., Compuscan and CRIF S.p.A.

In a text message, CIC Senior Vice President Aileen L. Amor-Bautista said the credit registry currently has records of around sevem million people, coming from 5.3 million files with complete information last year. — Karl Angelo N. Vidal

World Bank GDP growth projections for select East Asia and Pacific economies

June 7, 2019 | 12:00 am

How PSEi member stocks performed — June 6, 2019

June 7, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, June 6, 2019.

Under-control inflation to boost Q2 investment — FMIC/UA&P

June 6, 2019 | 10:34 pm

INCREASED investment and consumer spending are expected in the second quarter with the taming of inflation and the acceleration of government spending, according to The Market Call published by the FMIC & UA&P Capital Markets Research.

“The expected ramp-up in infrastructure and other NG (national government) expenditures should facilitate a rebound in Q2. Softer upticks in prices of key commodities, likewise, will provide extra boost,” according to the report.

“We think that the downtrend in headline inflation and cuts in the BSP (Bangko Sentral ng Pilipinas) policy rates and RRR (reserve requirement ratio) will encourage higher investment and consumer spending starting Q2,” they said in the report.

The Philippine Statistics Authority (PSA) reported May inflation of 3.2%, up from 3% in April. BSP Governor Benjamin E. Diokno, however, said, that the central bank maintains its positive outlook on inflation for the year, which it expects to fall within the target band of 2-4%, with a projected rate of 2.9% for this year and 3.1% next year.

“The 3.2% inflation rate in May cannot be viewed as a reversal of the six months of progressive decline of inflation rates prior to the May number. One data point does not constitute a trend. That’s elementary. We are confident that the average inflation rate in the third quarter would be in the neighborhood of 2% because of base effects, declining world oil prices and the appreciating peso,” Mr. Diokno said in a mobile message to reporters.

Last month, the BSP decided to reduce its reverse repurchase (RRP) rate by 25 basis points (bps) to 4.5%. This was followed by a reduction in RRR by 100 bps on May 31, bringing down the rate to 17% from 18%.

Two 50-bps cuts are scheduled on June 28 and July 26, which will bring down the rate to 16%. RRR of thrift banks will also be reduced by 200 bps in three tranches with the same schedule with universal and commercial banks, while rural and cooperative banks’ reserve requirement were reduced by 100 bps to 4% from 5%, effective May 31.

According to the minutes of the Monetary Board meeting of May 9, released on Thursday, “Petitions for electricity rates and transport fare adjustments, the proposed increase in the excise taxes of alcohol beverages, and the potential impact of a prolonged El Niño episode are the main upside risks to inflation.”

“Meanwhile, slower global economic growth due to protectionist policies in advanced economies as well as geopolitical tensions and the potential renegotiation for lower tariff rates on meat products continue to be the main downside risks to inflation,” the BSP report added.

On the other hand, The Market Call report said that it is expecting inflation to dip below 3% as early as July and further slow to 2% in September, which is expected to boost consumer spending.

“Money growth should rally starting May after the BSP cut RRR and policy rates and adds to its GIR (gross international reserves) holdings to insulate the economy better from possible external shocks,” it said.

“Exports growth should move into positive territory by Q2 amidst the US economy’s upward march,” it added. — Reicelene Joy N. Ignacio

Mobile speed ratings set baseline for new 5G services — Opensignal

June 6, 2019 | 10:33 pm

WIRELESS COVERAGE mapping firm Opensignal said Manila lags behind most cities in the Asia Pacific region in terms of download and upload speeds and the quality of the mobile video experience, thereby setting a benchmark which new 5G services need to improve on dramatically to justify the price premium.

Data collected by Opensignal from Feb. 1 to May 2 indicated that Manila has a download speed experience of 11.2 megabits per second (Mbps), and an upload speed of 3.3 Mbps, good enough for ninth in a ranking of 12 cities in the region.

In terms of mobile video experience, Manila ranked 11^th of 12 cities, with a “Fair” rating based on an assessment of picture quality, video loading time and stall rate using mobile data.

Opensignal noted the current performance of mobile network providers shows how much they must improve for the impending arrival of fifth-generation (5G) networks and the development of appropriate price points by which they could make the service available to the market.

“With 5G arriving, the mobile speeds smartphone users experience across these lead cities represent the benchmark that initial 5G services must better to justify the 5G name. If the real-world experience of 5G is not significantly faster than current mobile services then operators will find it hard to charge more for 5G service, justify further network investment or explain the benefits of 5G to acquire new customers,” it said.

The report did not compare the broadband speeds in the Philippines by network provider, but its most recent Philippines-centric report in March showed Smart Communications, Inc. delivered average download speeds of 15.2 Mbps in Manila, and Globe Telecom, Inc. 7.6 Mbps in the same area.

The two telecommunications firms are preparing to battle it out in the 5G arena this year, as Smart continues to invest in the next-generation network after firing up its first two 5G cell sites late 2018. Globe is preparing to launch its 5G service this month.

Smart earlier said it was able to record speeds of up to 700 Mbps on its 5G network, while Globe said it could provide speeds from 50 Mbps to 100 Mbps.

In a statement Thursday, Smart said it continues to invest in network improvement with about $5 billion dedicated to transforming its fixed and mobile networks from 2016 to 2020.

“This year, PLDT (Inc.) has set aside P78.4 billion (to) further expand coverage and increase capacity to handle the rapid growth in data traffic. Over half of this capex program has been allotted to build up Smart’s mobile network, particularly its LTE and LTE-Advanced facilities,” it said.

Globe is investing P63 billion this year, the bulk of which will be spent to support the growing demand for data services.

“The good news is we have been improving country Internet speed performance year on year. However, there is much room for improvement. The sector does need the enabling laws and government support… to help enable the necessary infrastructure build for capacity and better performance,” Globe Senior Vice President for Corporate Communications Yoly C. Crisanto said in a text message.

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

DoST to allow non-STEM grade 12 students to apply for tech scholarships

June 6, 2019 | 10:32 pm

GRADE 12 STUDENTS in non-science, technology, engineering, and mathematics (STEM) tracks will now be permitted to apply for the government’s science and technology (S&T) scholarships.

In a statement Thursday, the Department of Science and Technology-Science Education Institute (DoST-SEI) said applications for the 2020 Undergraduate Scholarships Program are now open to graduating senior high school students. DoST-SEI added: “Application is open to students in the STEM strand but non-STEM students may also apply provided they belong to the top 5% of their graduating class.”

Applicants should also be natural-born Filipino citizens who are physically healthy and have good morals. Applicants can apply either as a scholar qualified under Republic Act 7687 or “Science and Technology Scholarship Act of 1994” or as a Merit Scholar with high aptitude in Mathematics and Science.

Application forms can be accessed at www.sei.dost.gov.ph. Completed applications can be submitted to any DoST regional or provincial office to the DoST-SEI Science and Technology Scholarship Division office in Taguig.

The deadline for applications is Sept. 6 with an examination scheduled for Oct. 20. Applicants for the 2020 S&T Undergraduate Scholarships must pursue a Bachelor of Science degree program in any institution accredited as a Center of Excellence or Center of Development by the Commission on Higher Education. Alternatively, the institution can also be a Level III school as rated by the Federation of Accrediting Agencies of the Philippines.

DoST-SEI said accepted applicants “will receive financial assistance of P40,000 per academic year to cover tuition and other school fees, a living allowance of P7,000 per month, book allowance of P10,000 per academic year, a transportation allowance for those who will be studying outside their home region (on a reimbursement basis), group accident insurance, and graduation clothing allowance.” — Gillian M. Cortez

Japan firm’s mango order to help ease oversupply pressures on farmers

June 6, 2019 | 10:31 pm

A JAPANESE COMPANY, fruit packer Diamond Star Corp., has expressed interest in importing 100 metric tons of mango, Agriculture Secretary Emmanuel F. Piñol said, an order which is expected to help address oversupply conditions after an El Niño-fueled bumper crop.

In a social media post, Mr. Piñol said Diamond Star, which has been importing papayas, pineapple, mango, bananas and turnips from the Philippines, signalled its plans to the Agriculture attache in Tokyo, Samuel Animas, this week.”

“This deal (comes) in time (for) the estimated surplus harvest of 2 million kilos of mango. The Department of Agriculture (DA) will be setting a meeting with Diamond Star and mango farmers from Luzon.”

Mr. Piñol, currently in Japan, met with the Minister for Agriculture, Fisheries, and Forestry Takamuri Yoshikawa, to tackle greater access to Japan for Philippine produce.

Mr. Piñol said Mr. Yoshikawa promised to fast-track the processing of documents and requirements for entry and zero tariffs for Cavendish banana, which is currently charged 8-18%; a 100% exemption from inspection of banana exporting companies who are compliant to the Minimum Residue level of chemical as required by Japan; improved access for avocado; and the recognition of the Philippines’ status as a Foot-and-Mouth Disease-free country as declared by the World Organization for Animal Health.

“It’s a valid request,” Rolando T. Dy, head of the agribusiness studies center at the University of Asia and the Pacific (UA&P) said in a phone interview with BusinessWorld, particularly on the matter of banana exports.

“Sa banana, may seasonal tariff kasi ‘yan. Tapos may concessions ‘yung Japan (Banana has seasonal tariffs. Then Japan gives concessions)… I don’t know about their arrangements with Ecuador, but if you give that arrangement to Ecuador, they should also give similar arrangements to the Philippines,” Mr. Dy said.

The United Nations Food and Agriculture Organization estimates that the Philippines was the second-biggest exporter of bananas in 2018 with 2.95 million metric tons (MMT), up 77.34% year-on-year. Ecuador had 6.6 MMT.

The Philippines is the largest supplier of banana to Japan. In the first 10 months of 2018, banana exports to Japan increased by 8%. — Vincent Mariel P. Galang

World food prices rise in May; cereal output forecast falls

June 6, 2019 | 10:31 pm

ROME — World food prices rose for a fifth consecutive month in May after bad weather pushed up the prices of cheese and maize, the United Nations food agency said on Thursday.

The Food and Agriculture Organization (FAO) also warned that a sharp fall in the expected maize crop in the flood-hit United States had dampened its previous forecast of bumper global cereal production in 2019.

FAO’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 172.4 points last month against 170.3 points in April — its highest level since last June.

The FAO dairy price index jumped 5.2% from April’s value, nearing a five-year high, with cheese helping to drive up the index thanks to strong global demand for the product as drought in Oceania limited that region’s export prospects.

The FAO cereal price index rose 1.4% because of a sudden surge in maize price quotations after planting of the crop got off to the slowest pace ever recorded in the United States due to widespread flooding and rain.

By contrast, the sugar index fell 3.2% for the month, and the vegetable price index dropped 1.1%.

In its second forecast for 2019, FAO predicted world cereal production would come in at 2.685 billion tonnes, down from its previous forecast of 2.722 billion tonnes but still up 1.2% on 2018 levels, when output declined.

“The year-on-year increase in global cereal production reflects expansions of wheat and barley production, while global rice output is likely to remain close to last year’s record level,” FAO said.

“Worldwide maize output, however, is now seen to fall, with U.S. production expected to shrink by 10% from the previous year amid a much reduced pace of plantings due to unfavorable weather conditions.”

The U.N. agency said new estimates for production and utilization suggested world cereal stocks could decline by as much as 3% in the new season, hitting a four-year low of 830 million tonnes. — Reuters