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Five ways to advance women leadership in the workplace

The past few years have been great for gender inclusivity in the workplace. Just this January, Willis Towers Watson Data Services reported a 12 percent decrease in the gender pay gap among employees aged 30 to 40, compared to data from 2018.

Despite these efforts, however, women are still a minority in high leadership roles. Only 4.8 percent of the 2018 Fortune 500 companies had female CEOs — this, effectively robbing their companies of the potential advantages of better representation, such as effective mentorship and fresh business approaches.

With such an enormous gap to close at the top level, companies have to go beyond a passive attitude towards equality. Here are five concrete ways you can boost female leadership in your organization, based on the IBM Institute for Business Value’s study “Women, leadership, and the priority paradox”.

Make advancing women a formal business priority

Gender equality must become a strategic priority and not simply a “nice-to-have”. It must be included in a company’s mission statement and have KPIs, budget, and assigned resources like any other business plan. And to further cement the company’s resolve, senior leaders must be put in charge of the initiative For example, Johnson and Johnson’s Chief Diversity Officer reports directly to their Chairman and CEO.

Get leaders involved and accountable

It’s one thing to make plans and another to execute them. Making your leaders accountable for these plans will help ensure that they’re implemented. But instead of harsh penalties, leaders can instead be offered incentives for achieved objectives. For goals that aren’t met, action plans for improvement must be created so that they aren’t just glossed over.

It’s also important that both leaders and employees concretely share their commitment to the cause. Professional services firm EY has an entire blog dedicated to women advancement, which includes interviews on company leaders on the topic.

Co-create goals for measurable progress

Having a sense of ownership over a project goes a long way. Instead of mandating goals, have your leaders get proactively involved by helping set them. They can start by auditing their respective teams to determine which ones have a deficit of women in leadership roles. A subsequent investigation will shed light on the reasons why, which will help in creating measurable goals.

Once that’s done, check that these goals are consistent with legal requirements and truly promote a culture of inclusivity. Note that timelines should be included to help make your employees more aggressive. For instance, Sodexo set a 2025 deadline for their goal to have female workers comprise 40 percent of their leadership.

Embrace initiatives and policies to alleviate unconscious gender bias

Despite good intentions, there are times when our judgments are clouded by an unconscious gender bias. Companies can identify these perceptions by investigating groups with consistently fewer acknowledged women outperformers. In a similar fashion, P&A Grant Thornton Philippines conducts surveys with their female employees to identify possible barriers to promotion. “[It helps us] see the additional specific interventions that we may have to do to address these,” said Marivic Españo, chairperson and CEO.

Salaries must be equal for all genders, which includes adjusted compensation for old female employees. And recruitment and promotion must be just as gender-blind. For instance, companies can mandate at least one female candidate for every leadership opening, followed by proper documentation if she’s not chosen for the job.

Foster a culture of inclusion

At the end of the day, the goal is to create a truly inclusive culture for every employee. This means extending a hand to male workers as well, who face stifling traditional expectations like women do.

For example, there’s a presumption that they prefer to work long hours in the office rather than go home. Flexible work hours and paternity leave will not only free men from this expectation but also reinforces that domestic responsibilities are for both genders. Accenture Philippines offers 30 consecutive calendar days for paternity leave. Female employees can also transfer 30 days from their 120-calendar day maternity leave to a secondary caregiver such as a spouse, life partner, or relative.

High demand and common needs: A look at today’s office space market

Last quarter, real estate services company Pronove Tai International Property Consultants forecasted a growth in the office space market for 2019, with a projected added supply of 1.04 million square meters. Philippine offshore gaming operators (POGOs) were also foreseen to increase their demand for space, considering that they had already taken up 45 percent of pre-leased transactions for 2019.

Now that the first quarter of this new year has passed, how are these projections shaping up? Pronove Tai shared their reports on the market’s current progress.

Healthy growth rates

The predicted growth of the office market seems to be on track. 276,000 square meters were added to the total office stock (or accumulated completed buildings from 1965 to Q1 2019), an increase higher than in any quarter in 2018. And while Makati, Taguig, and Ortigas still take the top 3 spots, Ortigas grew the fastest among all of the districts at a rate of six percent. It saw an added supply (or annual completed supply of space) of 110,100 square meters, solely attributed to the Podium West Tower by developers Keppel Land and SM Prime Holdings.

The four minor office districts (San Juan, Las Piñas, Pasig, and Parañaque) and Mandaluyong follow in terms of added supply. Each area brought in 68,000 square meters and 28,000 square meters, respectively. While the total office supply is 31 percent higher than the 2018 quarterly average, an ongoing cement shortage is already causing delays in building completion. For instance, only 15 buildings were completed during the quarter when the projection was 21 buildings.

Still, vacancy rates are increasing to healthier levels. It rose to 6 percent — up 2 percent from the last quarter — with Quezon City and Mandaluyong offering the highest vacancy rates.

Increasing demand

Demand for space continues to grow strong, having increased by 39 percent year on year (YoY). IT and business process management firms (IT-BPM) and traditional firms remain the biggest demand drivers at 36 percent and 35 percent, respectively. But in terms of the greatest YoY increase, it’s POGOs with the highest figures.

Already taking up 29 percent of the demand, YoY increase went up by a staggering 118 percent. The need is so urgent that POGOs are already exploring Pasig, Parañaque, and Quezon City to set up camp, considering that there’s no more space in Makati and the Bay Area. Previously, POGOs weren’t looking at these districts because of their unfamiliarity to their foreign employees.

A need for convenience

If there is a common denominator that demand drivers across industries consider, however, it’s convenience. According to Monique Pronove, CEO of Pronove Tai, POGOs will always choose locations with easy access to residences, retail, dining options, and transportation. And while not all of these facilities are requirements for traditional firms, it’s definitely a plus factor looking at options.

It’s for this reason that township projects are becoming more appealing for tenants. The past fe years have seen more of these developments cropping up both within and outside of Metro Manila. Aside from the more recent completions like Nuvali in Laguna, more projects are already in the pipeline such as Megaworld’s Arcovia City along C-5.

“When tenants choose a location, they are now looking at partners who can build for them when they grow,” said Pronove. “There’s more challenge[s] for single-detached building[s] and smaller developers to compete with the big developers now. Because what they’re looking at are immediate availability of space and solutions to their needs when they grow.”

Five reasons investors may not be interested in your ‘profitable’ startup

The most common path to building a great tech company is gaining early traction, raising money from top investors, and then scaling. But it’s never as simple as one, two, and three. Many founders are puzzled by the fact that they have achieved substantial profitability for their business – and not just the “ramen profitability” some early stage startups hit – and still cannot get any investor to sign on the dotted line.

What, then, is the hold-up? As someone who has helped startups raise every round from seed all the way up to Series E, these are the most common issues I’ve observed in the Philippines.

The profitability is artificial.

In an early stage startup, certain sacrifices are made. Key employees may be taking a reduced salary, the founders may be drawing none at all, and marketing efforts may have not started in earnest. The startup will thus appear to be cashflow positive, if only because the founders are not considering all the costs necessary to deliver revenue.

The size of the market is too small.

Even if your startup is profitable, there is the possibility that the market is not big enough. In this case, the startup is not be investable because investors are unlikely ever to see the exponential return they want from their investments.

To combat the market size issue, local founders need to think regional. While the Philippines may be our home and provide us with first-hand exposure to very real problems, we need to ensure that such issues exist across Asia Pacific, or at the very least, Southeast Asia. On its own, the Philippines is rarely a big enough market to convince investors – especially institutional ones – that the pay-off will be significant.

The market may be saturated.

Your startup may be profitable, but only because it has concentrated on a very small niche in an already large, crowded market. As soon as you try to move beyond that initial niche, you will face stiff competition from the market leader and other incumbents. Without a compelling value proposition to seize market share, investors will not be convinced that the return on investment is attractive enough.

There is no growth trajectory. Investors want to see high probability of hockey-stick growth. They want to know that as soon as they infuse your startup with capital, it will start to skyrocket upward in growth. Some startups may be profitable, but show no hint of this kind of growth trajectory. This startup, then, may work fine as a lifestyle business, but not be compatible with investors who want to see the valuation of the business to exponentially increase.

The founding team may not be right.

The importance of the founding team is stated often, but it bears repeating here: It’s easy enough to evaluate your market size, competitive landscape, growth, and other external factors. It’s comparatively much more difficult to turn a critical eye on yourself and the cofounders at your side, even though this is the principal concern for any seasoned investor.

Investors look for “viability” in their founder. They need to know that the founder can build the team and grow the business. Of course, scaling a startup is not just the job of the CEO alone, so they are also concerned about the team composition, including co-founders and early employees. Investors want to know that the startup has the right plan, and more importantly, the right people to execute it once they decide to invest.

In short, even if your startup is profitable, this profitability will be interpreted in a much wider context. Investors will evaluate whether you are in the right industry, with the right market size and competitive landscape, and have the right team.

If your startup falls short on these measures, you’re more likely to stay self-funded, and that’s fine too. You have succeeded where most fail: Creating a small business.

If your startup does check all those boxes, then congratulations. You’re well on your way toward getting the capital infusion that can turbocharge your growth.

________________________________________________

Maggie Po is the chief strategist for Full Suite, a finance concierge for Singapore’s top companies catering to their fundraising, runway management, and mergers and acquisitions needs.

Power supply watched after quake

LUZON managed to avoid widespread brownouts despite the 6.1 earthquake that rocked parts of the island on Monday, knocking out several major power plants.

However, the Department of Energy (DoE) held off releasing its power supply and demand outlook for the rest of the week as it awaits the return online of two units of San Miguel Consolidated Power Corp. (SMCPC) and a unit of GNPower Mariveles Coal Plant Ltd. Co.

“Mas makikita natin ‘yung situation mamayang gabi dahil papasok na ‘yung mga planta at ‘yung pag-monitor din natin sa demand. Ngayon mababa ‘yung demand at may nawalang mga planta — 1,290 megawatts (MW) ang affected ng earthquake (The situation will be clearer tonight when some of the affected power plants will go on line and in the face of demand we are monitoring,” Energy Undersecretary William Felix B. Fuentebella said in a briefing at the DoE head office in Taguig City on Tuesday.

A magnitude 6.1 earthquake, centered near Castillejos, Zambales, struck at 5:11 p.m. on Monday; followed by a magnitude 6.5 quake centered near San Julian, Eastern Samar that struck at 1:37 p.m. on Tuesday.

On Monday night, the DoE counted five power plants that went offline following the quake, namely: Anda Power Corp. (83.7 MW) in Mabalacat, Pampanga; Panasia Energy Holding Inc. (648 MW) in Limay, Bataan; GN Power Mariveles (two units, each with 345 MW) in Mariveles, Bataan; and Caliraya-Botocan-Kalayaan Power Co. Ltd. (720 MW) in Kalayaan, Laguna.

Kalayaan units 1 to 4 and Anda Power promptly went back online, along with SMCPC units 1 and 2. But SMCPC’s units 2 and 3 suffered rupture disc damage.

The DoE said National Grid Corporation of the Philippines (NGCP) issued a red alert notice at 5:20 p.m. on Monday due to multiple tripping. The agency said it was initially informed by the grid operator that the quake caused a drop in available capacity of 2,009 MW and brought down system frequency to 58.87 Hz.

The quake caused power interruptions in Pangasinan, Pampanga, La Union, and Bataan. Power in Quezon, Batangas, Camarines Sur and Sorsogon were also affected but were soon restored.

As of 11:00 a.m. on Tuesday, the DoE said a total of 1,290 MW were still offline, although the 345-MW unit 1 of GN Power Mariveles was set to be back by midnight. The 345-MW unit 2, as well as SMCPC’s affected units, did not have a definite timetable for returning online.

Two other plants are reported to have been de-rated, generating energy below installed capacity, reducing capacity in the Luzon grid by an additional 720 MW.

Apart from the power plants, NGCP said the Mexico-San Simon 69-kilovolt (kV) line is presently undergoing repair.

Pampanga Electric Cooperative II has reported the partial restoration of power in its service area, with subsequent re-energization subject to NGCP rehabilitation of distribution lines linked to the power distributor.

No damage was reported by downstream and upstream oil industry players, Mr. Fuentebella said.

A state of calamity was raised in Porac, Pampanga, hence, a price freeze for household liquefied petroleum gas and kerosene products in this area is now in effect and will remain valid for 15 days.

Reynaldo B. Abadilla, NGCP head for Luzon system operations, said the power situation depends on re-entry online of the affected power plants. “Tonight we will know the real situation if they can sink in and provide full load on Wednesday morning,” he said.

NGCP is also conducting aerial inspection of facilities in affected areas, including Zambales and Bataan, to check the integrity of its facilities.

Mr. Fuentebella said power restoration efforts were set to have been completed by 5:27 p.m. on Tuesday.

Turning its attention to the Eastern Samar quake, the DoE said that, as of 4.15 p.m. on Tuesday, it had received initial reports on power generation, transmission and distribution. It said that, as of 3:30 p.m., there was no damage reported at power plants in the Visayas.

It also said NGCP was still assessing the status of transmission facilities in the area.

But the quake caused power interruptions in Northern Samar, Eastern Samar and Calbayog City.

The DoE said it was coordinating with the National Electrification Administration to check electricity cooperatives in areas affected by the quake.

“Only a portion of Leyte Electric Cooperative II is experiencing power interruption due to the tripping of one of its feeders. The ground personnel are on their way to restore it,” the DoE said in a statement.

It said the entire Eastern Samar Electric Cooperative (Esamelco) coverage area had no power due to the earthquake.

“As of 3:22 p.m., the NGCP and (Esamelco) have already energized the Nato Substation and restored power to the municipalities of Can-avid, Maslog, Dolores, Oras, San Policarpo, Arteche and Jipadpad,” the department said.

“The other substations however remain unenergized.” — Victor V. Saulon

Senate leaders see fresh push for procurement reform next Congress

By Charmaine A. Tadalan
Reporter

BILLS proposing to amend Republic Act No. 9184, or the “Government Procurement Reform Act,” will likely be filed anew in the next Congress despite tepid legislative interest since 2016, Senate leaders said in recent remarks.

Amending the GPRA was among the priority bills identified by the Legislative-Executive Development Advisory Council at the beginning of the 17th Congress in mid-2016.

The bills in the Senate and the House of Representatives, however, have remained at the committee level since then even as the current Congress nears its end.

Asked whether he will support the measure in the 18th Congress, Senate President Vicente C. Sotto III replied in a mobile phone message on Sunday: “yes, absolutely.”

Senate President Pro Tempore Ralph G. Recto and reelectionist Senator Aquilino L. Pimentel III, who separately authored bills amending the procurement law, said they plan to refile their respective bills in the next Congress.

“My procurement bill seeks to increase government efficiency and effectiveness,” Mr. Pimentel said in a text message on Saturday.

“The proposed amendments to the GPRA will enable the government to procure high-quality goods, services and infrastructure contracts which it needs to deliver public services by awarding the bidder with the most advantageous and responsive bid. The government will not be required to award the contract to the lowest bidder,” he explained, adding that he will push the reform “if given the chance to continue serving in the Senate.”

Mr. Pimentel said the bill was not tackled in the 17th Congress because it wasn’t backed by the Department of Budget and Management (DBM) under the leadership of former budget secretary Benjamin E. Diokno, who assumed the helm of the central bank last month. “DBM Sec[retary] Diokno was against touching the procurement law,” he said via text on Sunday.

DBM Officer-in-Charge Janet B. Abuel explained that Mr. Diokno had preferred any changes to be introduced through the implementing rules and regulations (IRR), in order to preserve provisions of the law.

“The procurement law, it’s really a good law. Maybe you can say it needs some updating, but the intention is any updates should as much as possible be incorporated in the IRR,” Ms. Abuel said in an interview on the sidelines of a hearing on the proposed P4.1-trillion 2020 national budget which the House of Representatives Appropriations committee conducted on Monday.

“Siguro ang (Perhaps the only) misgivings mo lang, or reservations in having the law amended, is that the other better parts of the law might be amended as well.”

The 17th Congress, now on a Feb. 9-May 19 break for the May 13 midterm elections for all seats in the House and half of the Senate, will have just May 20-June 7 to act on remaining legislative measures. Bills left unapproved by both chambers at the end of that period will have to be refiled in the 18th Congress, which opens on July 22.

Under Senate Bill No. 1713, Mr. Pimentel proposed to introduce the principle of value for money (VfN) to supplant the current “lowest bidder policy” that has at times led to poor quality of projects.

The VfN principle will allow the government to award projects to contractors who are able to meet relevant financial and non-financial requirement in terms of quality of the goods and services, fitness for purpose of the proposal, performance history, flexibility of proposal, and timeliness, among others.

The bill also provides that for projects that will be built in phases, the government office concerned should indicate in the annual procurement plan the total project cost, project description, program of works and approved budget for each phase.

Mr. Pimentel said in his explanatory note that these details are intended to prevent overpricing and awarding of contracts to favored contractors.

Under SB 1423, meanwhile, Mr. Recto proposed to give priority to local infrastructure industry players by adding eligibility requirements that will favor firms located in provinces.

Among others, a bidder with its main office based in the province where the project is located may participate in projects may vie for contracts with approved budget for contract (ABC) of up to P100 million, bidders within the project’s region may vie for contracts with ABC of over P100 million but not more than P200 million, while those located anywhere in the Philippines may participate only in projects with ABC of more than P200 million.

Asked if he is likely to refile the bill in the next Congress, Mr. Recto replied in a mobile phone message, “Yes.”

How does the Philippines compare with its neighbors in terms of digital money readiness?

How does the Philippines compare with its neighbors in terms of digital money readiness?

Boao Forum meeting participants voice need for closer links, cite risks

By Janina C. Lim
Reporter

FOREIGN AND LOCAL delegates at the 2019 annual conference of the Boao Forum for Asia called for closer development coordination among peers, building on China’s Belt and Road initiative and the Regional Comprehensive Economic Partnership, in order to resist a wave of protectionism threatening the rules-based multilateral system.

“The Philippines is hopeful that as we bring the Boao Forum to Manila, we can further build on previous discussions with our partners so we may forge deeper consensus as we strengthen regional cooperation through the Belt and Road Initiative (BRI),” Executive Secretary Salvador C. Medialdea said on Monday night at the start of the conference in Taguig City as he read President Rodrigo R. Duterte’s speech. “We will also assess our progress in the implementation of various initiatives arising from the Forum and other platforms, especially in the areas of infrastructure, energy, trade and investments, science and technology, and environmental protection.”

Mr. Duterte, who has lately been critical of China’s assertive moves in the South China Sea despite his visible strategic partiality towards the regional power, was noticeably absent from the event, although he did attend a briefing in Pampanga late Tuesday afternoon on post-earthquake measures.

Asked on Mr. Duterte’s absence from the conference, Presidential Spokesperson Salvador S. Panelo told reporters in a mobile phone message: “He is not feeling well due to his punishing schedule and successive campaign sorties… [T]hat’s the reason. Overworked.”

House Speaker Gloria M. Arroyo, Boao Forum director and keynote speaker in Tuesday’s conference, called for continued globalization and free trade “tempered, of course, by each country’s unique history and tradition.”

Ms. Arroyo — who analysts have noted played the “China card” in her government’s dealings with Washington during her own 2001-2010 presidency — lauded China’s transformation into a “powerful advocate for globalization and free trade”, a role the United States used to play.

“I say this because, traditionally, this used to be the familiar role of the United States. But now that the Trump-style conservatism is presidential policy in the United State, past trade agreements are being viewed by conservate nationalists as too concessionary,” she noted.

The conference, this year themed “Concerted Action for Common Development in the New Era,” is held annually to serve a venue for government and business leaders, as well as academicians to discuss key issues in the region and in the world.

Zhou Xiaochuan, vice-chairman of the Boao Forum, as the second keynote speaker, said: “We… [are] here to discuss how to take concerted action on common development concerns and share the future.”

Mr. Zhou, also the former governor of the People’s Bank of China, cited challenges such as nuclear security, geopolitical conflict, terrorist attack and the influx of refugees which “have not yet been effectively resolved…”

“Both global trade and economic growth are losing steam. The rules-based multilateral system is under threat. Emerging markets in developing countries are more vulnerable…” he said, as he also cited emerging challenges such as the growing digital divide.

Surakiart Sathirathai, also member of the Boao Forum’s board and former deputy prime minister of Thailand, warned that the lack of action in addressing technological disruptions will push this divide “wider than before”, adding that “the speed of such divide [growing] is unthinkable if not managed and planned properly.”

Mr. Sathirathai emphasized the need for economies to invest more in training, retraining and upskilling to cope with technological advancements.

Mr. Sathirathai also noted that BRI and RCEP go hand in glove in promoting economic connectivity in Asia

“… [B]oth the RCEP and BRI will be the great common synergy that drives Asia’s common and inclusive development to benefit everyone in Asia,” Mr. Sathirathai said.

Mr. Duterte, in his speech read for him by Mr. Medialdea on Monday, also cited the conference’s significance for the Philippines.

“We are optimistic that this conference will not only serve as a platform to introduce the Boao Forum to the Philippine business community, but also to provide our neighbors adequate insight on the business environment and trade policies currently prevailing in the Philippines,” his speech read.

Ms. Arroyo, however, emphasized the need to remove hurdles to growing Chinese investments here.

“The main thing to focus now is the implementation side,” she said.

“On the part of the Philippines, we know we have to have maximum efforts to remove the on-the-ground bottle-necks that impede implementation of projects that involve trade and investment growth of China,” she added.

“But this Boao forum Manila is one way of enlightening our foreign businessmen from China with regard to the believed restrictions.”

Speaking to reporters later, Ms. Arroyo said representatives of 16 tech firms from China who met local counterparts on Tuesday initially expressed worry about restrictions on foreign participation in several sectors. A meeting with Department of Information and Communications Technology Secretary Eliseo M. Rio, Jr. helped assuage their concerns somewhat, Ms. Arroyo said.

Zhao Jianhua, China’s ambassador to the Philippines, said in his speech read on his behalf by the embassy’s deputy chief of mission and minister counsellor, Tan Qingsheng, said he expects Philippine-China trade relations to mark a “new high” this year. He noted, among others, that value of bilateral merchandise trade grew 8.5% to $55.7 billion last year, making the regional giant the Philippines’ largest source of imports and the fourth-largest market for Philippine goods.

“Our economic cooperation will also increase employment, it’s more cost effective. About 50 large-scale Chinese economics in the Philippines have employed 16,000 Filipinos and the number will increase in the coming years,” Mr. Tan said as he delivered Mr. Zhao’s speech.

Mr. Tan added that the Chinese embassy to the Philippines expects more than 1.5 million Chinese tourists to come to the Philippines this year and generate P62 billion in sales receipts for the local economy.

Filipino-Chinese Chambers of Commerce and Industry member Elton See Tan, said the conference and efforts in its aftermath will benefit his hotel business as well as the country’s broader tourism sector. “If we can get a portion of their tourism business here, it will be very beneficial for the Philippines especially we’re building the tourism infrastructure now and the new airports. With them coming in, it will greatly increase the value of our tourism industry,” Mr. Tan said in an interview at the sidelines of the forum on Tuesday.

At the latter part of the forum, top Philippine officials like Energy Secretary Alfonso M. Cusi encouraged Chinese businessmen to invest in the country as the government moves to further improve the ease of doing business, particularly by further reducing steps to get permits.

Trade Undersecretary Ceferino S. Rodolfo, who is in charge of the department’s Industry Development and Trade Policy Group, touted the Philippines’ manufacturing potentials, asking investors to “locate in the Philippines and… be able to take advantage of our market access to the big markets of US, EU, our ASEAN and Asian partners.”

According to its Web site, the Boao Forum for Asia is a nongovernment, nonprofit international organization proposed in 1998 by Fidel V. Ramos, former president of the Philippines; Bob Hawke, former prime minister of Australia, and Morihiro Hosokawa, former prime minister of Japan.

Officialy inaugurated on February 27, 2001, the forum is headquartered in Boao, Hainan Province, China and has been holding annual conferences since 2002.

Globe to launch 5G network in June

GLOBE Telecom, Inc. is preparing to launch its fifth-generation (5G) services before the end of the first half.

“One of the most exciting things that telcos globally are looking at is 5G technology… We are launching 5G for the home in June this year,” Ernest L. Cu, president and chief executive officer of Globe, said during the company’s annual stockholders’ meeting Tuesday.

The Ayala-led company is partnering with Huawei Technologies Co., Ltd. for the development of its 5G network, which will be launched through a home broadband service initially.

“5G technology will push adoption of Internet of Things (IoT), which is seen to become a critical engine for future growth for the telco industry… It will also change the way different industries operate and serve their customers, such as the use of safer and more efficient management of cities, smart grid and smart metering for power transmission and distribution, asset management, and advanced medicine,” Mr. Cu said.

“[E]nterprises will also benefit from applications such as connected vehicle fleets, predictive maintenance, factory automation, work force training and field support, and countless other examples,” he added.

Globe earlier said its 5G network would provide broadband speeds to 100 megabits per second (Mbps) from 50 Mbps. It was initially planning to roll out in locations with high density of cell sites such as Metro Manila and other urban centers.

In an interview last November, Mr. Cu told reporters the company wants to go after home services as a use case for its 5G network.

“It’s hard to find a robotic factory in the Philippines, or autonomous vehicles. We are very down to earth in our ambitions. It’s simply fixed wireless access for the home, which is what we’re going to do,” he said.

Globe is earmarking P63 billion for capital expenditures this year to support the growing demand for its data services. In 2018, the telco giant posted a net income of P18.447 billion, 22% higher than in 2017 due to stronger revenues from data-related services. — Denise A. Valdez

SM Prime allots P8B for China expansion

By Arra B. Francia
Senior Reporter

SM Prime Holdings, Inc. is boosting its presence in China, with the investment of up to P8 billion for the construction of a new mall and the expansion of an existing mall.

SM Prime President Jeffrey C. Lim said construction on the company’s eighth China mall, which will span around 80,000 square meters (sq.m.), will start later this year.

“We will start constructing another one within the year, that’s SM Yangzhou,” Mr. Lim told reporters on the sidelines of a media and analyst’s briefing in Pasay City Tuesday.

The listed property developer will be spending about P4 billion over the next two years for SM Yangzhou.

Mr. Lim added the company will also expand SM Xiamen by another 60,000 to 70,000 sq.m., from its current size of 300,000 sq.m. The expansion cost is valued at about P3-4 billion.

“We will start this year but I think it will open in the latter part of next year or 2021,” he said.

Once SM Yangzhou’s construction and SM Xiamen’s expansion are completed, the company will have more than a million square meters in gross leasable area in China.

SM Prime’s other malls are located in Tianjin, Jinjiang, Chengdu, Suzhou, Chongqing, and Zibo.

The company noted that expansion efforts in China slowed in the past two years as it focused on the growing opportunities in the Philippines.

“This is the best time (to expand in China) after the one in Tianjin is well-managed and well organized, we can now move to the next mall. In China, we moved a little bit slower but the sizes of the malls there are very big,” SM Prime Chairman Henry T. Sy, Jr. told reporters in a separate interview.

The investments for China is part of SM Prime’s P80-billion capital expenditure for the year, which will support the expansion of its malls, residential properties, and land banking efforts.

In the Philippines, SM Prime will add four new malls covering 200,000 sq.m. in gross floor area this year. These are SM Center Dagupan in Pangasinan, SM City Olongapo Central in Zambales, SM City Butuan in Caraga, and SM Mindpro Citimall in Zamboanga.

Meanwhile, Mr. Sy said SM Prime is looking at opportunities to expand its mall business to other Asian countries, particularly Vietnam.

“We are land banking not only in China, we are thinking of land banking in other Asian countries also. Like for example, Vietnam,” Mr. Sy said, adding SM Prime could start building malls in other countries within the next two years.

For its residential segment, SM Development Corp. said it plans to launch 19,000 to 25,000 units in Metro Manila and in the provinces.

The group will also unveil the National University Tower, a university-office building located inside the Mall of Asia complex, as well as two new hotels in Iloilo and Quezon City under the Park Inn by Radisson brand.

SM Prime’s net income jumped 17% to P32.2 billion in 2018, following a 14% increase in consolidated revenues to P104.1 billion.

Shares in SM Prime climbed 1.78% or 70 centavos to close at P39.95 each at the stock exchange on Tuesday.

PhilWeb buys 3 gaming sites

PHILWEB Corp. has acquired three gaming sites in exchange for shares in the company and a total of P18 million in cash.

In a disclosure to the stock exchange on Tuesday, the listed gaming firm said its subsidiary purchased a Philippine Amusement and Gaming Corp. (PAGCOR) Bingo Games site in Caloocan. The site was bought for P13 million, in addition to P10.74 million worth of PhilWeb shares consisting of 3.68 million priced at P2.92 each,

Another PhilWeb subsidiary, BigGame, Inc., also acquired a PAGCOR e-games site in Taytay, Rizal and another in Rodriguez, Rizal. The two sites were purchased for P5 million plus 735,294 PhilWeb shares worth a total of P2.15 million.

The three gaming sites were previously owned by Triple 8 Amusement and Development Corp.

This will be added to the 63 gaming locations that PhilWeb had by the end of 2018.

Philweb booked a net loss attributable to the parent of P77.58 million in 2018, lower than its attributable loss of P293.27 million in the year before. This came on the back of P366.36 million worth of revenues, more than double what it generated in 2017.

The company has been recovering, following the shutdown of its operations in 2016, when PAGCOR declined to renew its license. It was able to resume operations only in December 2017, with an initial 16 electronic gaming locations. It was able to resume full operations in March 2018.

While trimming its net loss in 2018, the company also noted it was able to book positive cash flow for the first time in three years. Earnings before income, taxation, depreciation, and amortization stood at P9 million, compared to P152 million in negative cash flow in 2017.

PhilWeb Chairman and Chief Executive Officer Gregorio Ma. Araneta III said they are working on bringing the company back to its former profitability levels.

Shares in PhilWeb jumped 2.74% or eight centavos to close at P3 each at the stock exchange on Tuesday. — Arra B. Francia

Mall operators conduct safety check after quake

MAJOR mall operators in the country said they have conducted safety checks to ensure the safety of their customers following the magnitude 6.1 earthquake that hit parts of Luzon Monday afternoon.

SM Prime Holdings, Inc. said its shopping malls did not suffer any major impact during the earthquake.

“I think we’re quite okay…We didn’t have much except for some plaster cracks or popping up of tiles. These are learning curves that we will have to start doing better research on. Outside of that, we stood up quite well,” SM Prime Executive Committee Chairman Hans T. Sy said in a briefing after the company’s annual shareholders’ meeting in Pasay City yesterday.

Mr. Sy noted that their emergency response teams were able to manage and control the evacuation efforts for their customers during the incident.

Ayala Land, Inc. said they continue to monitor their malls’ conditions after the earthquake.

“AyalaMalls continue to conduct preventive maintenance and regular inspections on the structural condition of the building as well as all utilities. This is complemented with various drills conducted regularly to prepare and train both our personnel and merchant partners,” Ayala Malls Operations Head for Luzon Charmaine Bauzon said in a text message.

Ms. Bauzon also said they shut down all facilities and liquefied petroleum gas (LPG) in affected malls immediately after the incident.

Megaworld Corp., meanwhile, said they were watching the structural safety of their properties and no major damages were seen.

“There are no reported major damage in any of our properties. We remain diligent in ensuring the structural safety and integrity of all our developments, including our construction sites,” Megaworld Senior Assistant Vice-President for Public Relations Harold Brian C. Geronimo said via text.

Robinsons Land Corp. suspended operations of Robinsons Place Angeles in Pampanga, the province which sustained the most damage, to give way for property inspections before reopening. It also closed Robinsons Place Tacloban and Robinsons North Tacloban at 2:30 p.m. Tuesday, after a magnitude 6.5 earthquake struck the Visayas region. — Arra B. Francia

RFM’s Q1 revenues jump 11% on higher sales of pasta, milk

RFM Corp. saw its revenues increase by 11% in the first three months of 2019, thanks to higher institutional sales of its flour, bread, pasta, and milk products.

In a statement issued Tuesday, the listed pasta and ice cream maker said revenues hit P3.1 billion in the first quarter of the year.

“We continue to see healthy consumer appetite for our Royal and Fiesta pasta and sauce as well as in our Selecta Milk RTD (ready to drink) for the first three months of the year,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said in a statement on Tuesday.

RFM’s flagship brands include Selecta for ice cream and milk, Fiesta and Royal for pasta, and White King for mixes. The company noted that its ice cream unit — typically one of its growth drivers — saw softer sales due to the late observance of Holy Week this year.

“The late Holy Week in April this 2019, compared to March in 2018, softened our ice cream unit’s usual strong growth rate in the first quarter, but April sales are quite robust. Flour and institutional bread sales are growing at double-digit rates as well.”

The company did not disclose its first quarter net income figure as of this writing.

Mr. Concepcion noted that they continue to monitor the prices of raw materials such as sugar, packaging, milk, and wheat.

“Hopefully, we see better pricing in these items in the coming months so manufacturers like RFM can sustain strong earnings growth,” he said, adding that the stronger peso this time around compared to the latter part of 2018 should help reduce input costs.

Incorporated in 1957, RFM also engages in non-food businesses, including barging services and leasing of commercial or office spaces for its operating divisions.

Shares in RFM rose by a centavo or 0.21% to close at P4.80 each at the stock exchange on Tuesday. — Arra B. Francia

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