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Intel bets on smart buildings in Israel to attract tech talent

PETAH TIKVA, ISRAEL — Intel Corp. is investing heavily in “smart buildings” in Israel that will be full of perks to keep employees happy, helping the US chipmaker compete for the country’s top professionals.

Intel, one of the biggest employers and exporters in Israel, said in 2019 it would invest $11 billion to build a manufacturing facility in the country, where some of its most advanced technologies have been hatched.

Home to more start-ups per capita than any other nation thanks to its advanced military and government support, Israel is suffering from a shortage of talent. While multinationals like Intel, Apple and Google have snapped up local startups and set up research centers, competition is making it tough to find skilled workers.

Tech companies in Israel were unable to fill about 17,000 positions in 2018, according to Start-Up National Central, a nonprofit research organization, and that figure continues to climb.

To address this gap and lure talent, Intel has upped the ante at its new development center in the Tel Aviv suburb of Petah Tikva. Replete with environmentally friendly systems, a smart gym, massage parlor, the structure also has 14,000 sensors that monitor motion, light and air to make sure workers are comfortable.

If these efforts give Intel an edge in hiring, rival companies are expected to follow suit.

“Anything you offer as a perk, whether it’s a gym membership or a paperless work environment or additional days for maternity leave or a go-green policy, all of these things are going to help you,” said David Gantshar, chief executive of California-based Shepherd Search Group.

Intel’s box-shaped, 10-story building is covered in glass and will accommodate up to 2,700 of its local 13,000 workforce.

The company declined to comment on how much it spent on the development center. Israeli media reported a cost of 650 million shekels ($188 million).

David Hareli, deputy CEO of Afcon Holdings, which constructed the building, said it was a challenge to finish the project within Intel’s three-year timetable. Originally designed to be seven stories high, Intel asked to add three floors. Once the contract was signed, Intel asked for LEED Platinum certification, the highest standard of green construction, rather than the lesser gold level.

This required a double-skin facade to improve ventilation and prevent the building from heating up under the strong Middle Eastern sun.

Architect Dagan Mochli, who designed the building, said he was working on a new development center for Intel in the northern city of Haifa that will also be smart and LEED Platinum.

He called Intel’s building a “breakthrough,” with demand growing among clients for similar structures. He is planning a smart 15,000-square-meter banking campus in Israel as well as a 240,000-square-meter smart biotech park in China.

SMART TRAVEL
The building has an open-space format. An atrium in the center is roofed by skylights, and caps the five top floors. Health-conscious employees often use the internal stairs in the atrium instead of the elevator.

For those seeking seclusion, there are small soundproof rooms and noise-insulated armchairs near the windows.

The 14,000 sensors — twice the number found in similar buildings, according to company officials — detect when someone enters a room and adjust the lighting and air conditioning. For example, when carbon dioxide levels rise, fresh air is introduced to keep people energetic. The sensors and corresponding app can also help employees find the best way to travel to and from work and let them know which of the building’s three restaurants has room during lunch. The app lets workers alert other staff as to their whereabouts.

Not everybody was excited about the new workspace. Some employees anonymously complained on an Israeli news website about a lack of privacy. Intel Israel CEO Yaniv Garty said the tracking and collection of data is on an opt-in basis.

“We don’t ask people to clock in or clock out. We believe in a relationship which is based on output,” Garty said.

Ido Melamed, a hardware engineer who has worked at Intel for 16 years, moved to the new building from an office with cubicles. He said the benefits outweigh the disadvantages.

“We see each other, we can talk more openly and collaborate more effectively,” Melamed said. “There is real trust between the company and employees that the data (collected) is used for the right purposes.” — Reuters

MPIC unit secures nod to start collecting toll fees

MPCALA Holdings Inc. (MPHI), a unit of Metro Pacific Investments Corp. (MPIC), has gotten a go-signal from the Toll Regulatory Board (TRB) to collect initial toll fees beginning Feb. 10 for the newly opened 10.7-kilometer Mamplasan Interchange-Sta. Rosa segment of the Cavite-Laguna-Expressway (CALAx).

In a statement on Thursday, MPHI said it has “secured TRB approval of the provisional initial toll for the 10.7-km CALAx subsections 6, 7 and 8 effective February 10.” It said CALAx will be collecting value-added tax-inclusive rates of P47 for ordinary cars, P95 for buses and small commercial trucks, and P143 for large trucks or trailers.

The Laguna segment of CALAx became fully operational in December last year. The whole CALAx project covers 45.3 kilometers of expressway linking the Manila-Cavite Expressway (CAVITEx) from Kawit, Cavite to the South Luzon Expressway (SLEx) at the Mamplasan Interchange in Biñan, Laguna.

The remaining portion of the toll road is still under construction and is scheduled for completion by the second quarter of 2022. The P35.43-billion project is being undertaken by MPCALA, which is under Metro Pacific Tollways Corp. (MPTC). MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. 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. — Arjay L. Balinbin

What to see this week

4 films to see on the week of February 7, 2020 — February 13, 2020

Birds of Prey

HARLEY QUINN joins superheroes Black Canary, Huntress, and Renee Montoya to save a young girl from a narcissistic villain. Directed by Cathy Yan, the film stars Margot Robbie, Mary Elizabeth Winstead, and Ewan McGregor. Variety’s Oscar Gleiberman writes, “As a movie, it’s thin, lively, loud, brash, diverting, and forgettable. If anything, it’s a tighter film than Suicide Squad.”

MTRCB Rating: R-16

1917

IT IS World War I, and British soldiers Lance Cpl. Schofield, and Lance Cpl. Blake are tasked to cross over into enemy territory to deliver a message which could save 1,600 of their comrades. Directed by Sam Mendes, the film stars Dean-Charles Chapman, George MacKay, and Daniel Mays. The Wrap’s Alonso Duralde writes, “1917 is certainly a technical marvel, not just for Deakins but also for the brilliant sound work, visual effects, and Lee Smith’s editing, which hides the cuts that would have broken the ‘one-take’ spell.”

MTRCB Rating: PG

Ghosts in the Graveyard

THE TOWN of Mt. Moriah is haunted by a ghost named Martha who comes back to haunt the teens who witnessed her death as children. Written and directed by Charlie Comparetto, the film stars Kelli Berglund, Jake Busey, and Olivia Larsen.

MTRCB Rating: R-13

On Vodka, Beer, and Regrets

As actress Jane Pineda struggles to get movie roles and escape a big scandal, she begins to seek comfort in alcohol. Things begin to change after a visit to a bar where she meets musician Francis. Directed by Irene Emma Villamor, the film stars Bela Padilla and JC Santos.

MTRCB Rating: R-13

How to analyse high turnover among new hires

I’m the human resource manager of a small enterprise with 210 employees. This past year, we experienced the resignation of 15 new employees who stayed with us only for an average of 10 months. What’s wrong with us? Does it have something to do with our hiring process, onboarding, corporate culture or the style of our management team? Could you please enlighten us? — Domino Effect.

Back in the days when fathers waited outside of the delivery room for the baby to be delivered, three men were waiting for the good news. The first was informed by the nurse that his wife had twins. He told the nurse: “How coincidental! I’m the coach of the Minnesota Twins.”

A few minutes later, the second man learned his wife had triplets. The coincidence was that he worked for 3M.

The third man panicked and raced toward the door. He was stopped by the two other fathers and asked what happened: “I work for 7-11.”

Surely, in your case, there’s no such thing as coincidence. Mistakes can only happen if there’s a disconnect between your hiring process and the intentions of people whom you would like to hire. In our desire to fill job vacancies we tend to ignore certain issues that could adversely affect employee retention. And this is where most common issues can be found.

FIVE MAJOR CONSIDERATIONS
If you aren’t aware of these issues, chances are, you will tend to repeat the same hiring mistakes. You will spend a great deal of time correcting these mistakes. To answer your question, to reduce, if not eliminate the high turnover rate of newly-hired employees, you need to consider the following approaches:

One, analyze the result of your exit interviews. I’m not a big fan of exit interviews because proactive “stay” interviews are better. However, in this context, you can limit your analysis to the 15 resigned employees, if only to isolate the issues that may have emerged in their respective cases. No matter how they try to sugar-coat their reasons for leaving, somehow, you can get at the common denominator, as well as some ideas to improve employee retention.

Two, review your job interview questions. Much better if you can create a standard guide for all interviewers that you can use for all job applicants. Your interview questions should reflect the issues that were made known to you by the resigned employees. For instance, if the resigned employees talk about the bad management style of their respective bosses, then it follows you should ask situational questions to your applicants to feel out how they would respond to it.

Three, make the department head responsible. This means making the people manager concerned or department head primarily responsible for minimizing the turnover rate of his people. You can learn this easily from the records. Even without asking point blank the resigned employees, the problem (or the blame) goes directly to the department concerned and not to the organization as a whole or the resigned employees themselves. If this happens, confer with the concerned department head to create a situation where he becomes part of the solution.

Four, review your organizational retention policy. The HR department is the internal expert on employee engagement and empowerment strategies, as part of organizational retention policy. Its role is to create and facilitate corporate-wide programs that should interest all employees, old and new ones alike. HR can give advice to line supervisors and managers on how to reduce employee “pain” with their respective bosses. If you don’t have anything like it, then you can’t give what you don’t have.

Last, avoid making assumptions. When you discuss the issue with the concerned department head, cover as many bases as possible. It may have something to do with the new employees’ lack of understanding of the job requirements, lack of coaching standards, lack of tools or personal protective equipment, even lack of regular interaction between the boss and his workers. Sometimes, you will hear that the new employees could be growing alienated, or even bullied by other workers.

The list can go on and on. If the HR department fails to notice this happening, then the accusing finger will also point in their direction.

WITHOUT A PROBLEM IS A PROBLEM
Some line executives who don’t want to admit their inadequacies in engaging and retaining employees would simply tell you that 15 resigned employees is nothing compared to the 195 employees who have chosen to stay. Percentage-wise, 15 employees represent only 7% of the total employee population, which is normal under many circumstances.

Therefore, there’s nothing to worry about or so they say. Or is it? There’s no argument that having a single-digit attrition rate is normal, except when the resigned employees all come from the same department and are under one boss. If that happens, go back to Consideration No. 3 above. It tells you that the concerned line manager or department head is primarily responsible for employee retention. No one else can do the job better, even the best motivational speaker around us.

In conclusion, unless those concerned line executives admit their responsibility, there will be no solution in sight, no matter how the HR department does its part. Taiichi Ohno, the inventor of the Toyota Production System, said it many times before: “Having no problems is the greatest problem of all.”

In this sinful world, we are always surrounded by problems. The only recourse is for us to actively discover them the sooner they get into our way. If we refuse to accept there’s a problem somewhere, much more avoiding participation in the process, then there might be no solution in sight, even if you’re the best HR professional on the planet.

ELBONOMICS: Problem employees are created by problem managers.

 

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

ORCA Cold Chain opens Philippines’ first cold storage facility

Senate President Vicente Sotto III and House Speaker Alan Peter Cayetano join ISOC Holdings Founder and Chairman Michael Cosiquien in formally launching ORCA Cold Chain Solutions and the Philippines’ first fully automated cold storage facility in Bagumbayan, Taguig City. As the very first Automated Storage Retrieval System (ASRS) high bay racking facility in the country, ORCA is committed to bringing global solutions to the Philippines’ food industry. The facility awarded Pioneer Status by the Board of Investments and is a LEED-certified facility. Photo shows (front row, L-R) Hanson So, Sr., ORCA Taguig shareholder, Yerik Cosiquien, ISOC Cold Chain President and Chief Executive Officer, Taguig Representative Ma. Laarni Cayetano, BOI Managing Head and Trade Undersecretary Ceferino Rodolfo, Taguig City Mayor Lino Cayetano, and Bohol Governor Arthur Yap. Second row from left to right, Jesus Chua, Jr., ISOC Holdings Group President, Esther Cheng Cosiquien and Chua Ping Hian, Marjorie and Philip Mataragnon.

Must-read business books for 2020

As we move to a new decade, businessmen and professionals are developing their reading lists to propel them to the next level of success. Here are three books on corporate leadership and business wisdom that will serve as executives’ guides for expansion and evolution:

UTOMO JOSODIRDJO: A LIFE OF UTMOST SERVICE
Renowned as the pioneer in modern Indonesian accounting and founder of the SGV-Utomo auditing firm in Jakarta, the man born of Chinese and Dutch parentage chose his Indonesian name through the help of a spiritual person with a third eye for special sensing when it came to people’s auras.

In the Bahasa language, Utomo means “number one” and Josodirdjo is a combination of two words denoting “great service.” The fascinating story of how Mr. Utomo lived up to his name and revolutionized Indonesia’s accounting industry is told in this 272-page volume authored and edited by award-winning Filipino writer Alfred Yuson.

Last month, the biography was launched at the Grand Ballroom of Fairmont Hotel Jakarta in celebration of Mr. Utomo’s 90th birthday. No longer around was his mentor-cum-business-partner, the venerable SGV Group Founder Washington SyCip, who had passed on in 2017.

Mr. Yuson’s interviews of the quintessential Indonesian accountant himself as well as his friends, associates, and clients such as tycoons Anthoni Salim, Manny Pangilinan, and Bobby Ongpin provide the reader with first-hand accounts on the extraordinary life of the nonagenarian icon originally nicknamed “Balok” who later became known as “Pak Utomo” — a towering figure literally and figuratively in Southeast Asia’s accountancy profession.

THE FRONT RUNNER: 150 YEARS OF MJC
Not a lot of organizations reach their sesquicentennial anniversary, but in the case of the Manila Jockey Club (MJC), it spans the country’s history from the tailend of the Spanish era to the Philippine Revolution, American colonization, Japanese occupation, post-war independence, martial law regime, and People Power Revolt — all the way to the early 21st century.

It is only fitting to mark MJC’s milestone through a 300-page coffee-table book that traces the history of horse racing in the Philippines. The Front Runner was produced by Media Wise Communications, a multi-awarded book publisher headed by Ramoncito Ocampo Cruz, with Achilles Mina as editor and a team of writers that explored the many facets of the sport and the spectacle.

During the book launch at the Manila Golf and Country Club last December, MJC President Alfonso Victor Reyno III said no such chronicle of Philippine horse racing has ever been published before. The Front Runner also contains an extensive pictorial essay depicting the exquisite beauty of horses. It talks not just about horse owners and racing enthusiasts, but also of the men and women who worked at the two San Lazaro hippodromes in Manila and Cavite while building communities around both racetracks.

THEN AND NOW: A STORY OF THE PHILIPPINES IN PHOTOGRAPHS
Over the past eight decades, the Fookien Times Philippines Yearbook (FTPY) has documented social and economic changes in the country where and when they happened. Its latest edition presents a panorama of structures that are linked to political change like the Ayuntamiento in Intramuros, the old Legislative Building in Luneta, and the Nielson Tower in Makati.

FTPY Editor-in-Chief Paulo Alcazaren wrote in his foreword: “Such places of memory are linked also with the personalities that populated key events or who are associated with them to such a degree as to make them inseparable.” He cited former Presidents Corazon Aquino and Fidel Ramos whose images are forever intertwined with Club Filipino in San Juan and Camp Crame in Quezon City, respectively, due to their historic photos taken at those sites during the 1986 EDSA Revolution.

Fookien Times Yearbook Publishing Co. (FTYPC) Chairman and CEO Grace Glory Go unveiled the 2019 yearbook at the Peak of Grand Hyatt Manila. Her father, Dr. Jimmy Go Puan Seng, started publishing the annual FTPY in 1936, while her son, FTYPC President and Publisher Vernon Go, described Then and Now as a story of our country and our lives.

 

J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and chairman of FINEX Publications.

How PSEi member stocks performed — February 6, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, February 6, 2020.

 

Cayetano asks Senate to pass CITIRA soon

SPEAKER Alan Peter S. Cayetano has asked the Senate to act on the Corporate Income Tax and Incentives Rationalization Act (CITIRA), adding that Congress has “limited time” and will adjourn for its Easter break in mid-March.

“We are looking at corporate income tax and incentives after the enactment of the sin tax law. The key is to make taxation equitable, progressive. This means that the poor should pay less, while the rich and businesses should pay more. But that is not that simple, because it is important that the country remain competitive. Even our own regions have to compete with each other,” he said in a statement Thursday.

Mr. Cayetano recalled that as recently as the 1990s, there were hundreds of manufacturing corporations located in Taguig, his bailiwick.

“Later they transferred to Cavite, and eventually from Cavite to China. So the reality is we have to look at the incentives offered by Vietnam, Thailand and the rest of Southeast Asia. We have to look at how attractive our own incentives are for business to come into the country,” he said.

The Speaker also urged citizens to communicate to their representatives any proposals regarding taxation.

“If you think there is a provision in the Tax Code that is unfair, or a problem with tax administration — meaning the law is okay but implementation or revenue collection is not right — let us know, so we can take action,” he said.

The House of Representatives passed CITIRA in late 2019. The measure seeks to eventually reduce corporate income tax to 20% from 30%. The measure’s counterpart bill remains pending in the Senate. — Genshen L. Espedido

DBM sets priorities for LGU projects

THE Department of Budget and Management (DBM) said local government units (LGUs) have until June to submit their requests for funding under the local government support fund (LGSF) and noted that infrastructure projects will be given priority.

Of the P4.875-billion LGSF, a special fund, the DBM said infrastructure projects under the “Build, Build, Build” program will be preferred for funding.

DBM Acting Secretary Wendel E. Avisado notified LGUs of the deadline via Local Budget Circular No. 122 dated Jan. 31, a copy of which was posted on its website yesterday.

To ensure that all of the funds are released within the year, as the government transitions to cash-based budgeting, the DBM said submissions of requests should come within the first half of the year.

“The LGSF-FA (financial assistance) to LGUs was placed under conditional implementation, to ensure that the same shall be used only for priority development programs and projects of LGUs only when said programs and projects cannot be accommodated by any available LGU funds,” according to the circular.

Specifically, the allocation under LGSF can be used to finance the programs and projects of LGUs in constructing, rehabilitating and improving roads and bridges, public markets, slaughterhouses, buildings, pavements, drainage canals, sea walls, water systems projects, evacuation centers, public parks, fish ports and post-harvest facilities.

The fund can also be used to buy ambulances, trucks, dump trucks; finance sports programs and street lighting or barangay electrification and also support financial assistance for mental health patients.

“It is also the responsibility of (local chief executive, LCE, and other) local officials to ensure that the funds released to the LGU are utilized strictly in accordance with applicable budgeting, accounting, and auditing rules and regulations, and pertinent provisions of RA (Republic Act.) No. 9184,” the DBM said.

“Moreover, the LGU shall ensure that no duplication of funding will occur. As such, the LGU, through its LCE, shall immediately inform the DBM if it has received funding from other sources for the same programs or projects,” it added. — Beatrice M. Laforga

Drugmakers expects long road ahead in coronavirus vaccine race

DRUGMAKERS racing to find a vaccine or effective treatment for the deadly new coronavirus in China cautioned that they have a long way to go.

That runs counter to reports of a supposed “breakthrough” that on Wednesday boosted financial markets and spurred optimism not necessarily backed by reality.

At least a dozen drugmakers are working on vaccines or antivirals and other treatments to help those infected with the fast-spreading contagion.

Investment costs for vaccines could run as high as $800 million in a process that, even if accelerated, will likely take more than a year until approval, according to executives from companies involved in the effort.

“It will take at least 12 to 18 months, which means in the acute situation we are in now — at least in China — that will not create a benefit,” said Thomas Breuer, chief medical officer of GlaxoSmithKline’s (GSK) vaccine unit. GSK is working with developers by providing a technology that could make their vaccines more potent.

The virus, which emerged in December in China, has killed nearly 500 people and shows no sign of abating, with thousands of new cases reported each day, mostly in central China’s Hubei province. But its spread to some 27 countries and regions has caused global alarm.

To be sure, companies developing treatments for patients who are already sick may be able to get a drug approved faster than a vaccine that would be given to healthy people. Even so, logistical and regulatory challenges remain, according to two executives at Gilead Sciences, Inc., which is working on an experimental antiviral treatment.

“There is a distinction there between a therapeutic and a vaccine. Having said that, I think it is true that this won’t be super fast and it will involve us investing at risk right now,” said Gilead Chief Medical Officer Merdad Parsey.

Clinical trials for treatments can be smaller and of shorter duration than for vaccines, Parsey acknowledged.

Challenges in making sure therapies are effective and then scaling up production still remain. Gilead has only a limited supply of its remdesivir, which will be tested against the coronavirus after previously failing in trials as a treatment for Ebola.

‘LOOKING FOR A MAGIC BULLET’
Dr. Thomas Frieden, who was director of the US Centers for Disease Control and Prevention during the also deadly MERS outbreak, said the benefit of antiviral treatments for such emergencies in the past has been modest.

What worked with MERS and SARS, for example, was better infection control in health care facilities, he said of two other types of coronaviruses that also caused global alarm.

“It doesn’t mean we shouldn’t try, but we’re often looking for a magic bullet and the bright shiny object. Sometimes we need to just have the basics,” Frieden said.

A Chinese TV report on Wednesday said that a research team at Zhejiang University had found an effective drug for the virus, while researchers in the UK told Sky News separately they had made a “significant breakthrough” in finding a vaccine.

Reuters could not independently verify the reports, but several traders cited them for sharp upticks in global stock markets.

“There are no known effective therapeutics against this 2019-nCoV,” said World Health Organization spokesman Tarik Jasarevic, using the current designation for the new coronavirus, when asked about reports of “drug breakthroughs.”

Health officials in the United States and China have set ambitious goals for getting a vaccine to initial human testing within the next few months.

Newer vaccine platforms, such as one developed by Moderna, Inc., allow scientists to create a potential vaccine in record time just based on knowing the genetic code of the novel coronavirus. With the genetic code in hand, scientists can start vaccine development without needing a sample of the virus.

Anthony Fauci, director of the US National Institutes of Allergy and Infectious Diseases, which is using Moderna’s platform, said the agency is on the fastest pace ever to develop a vaccine candidate.

He hopes to have a vaccine available for initial safety testing within two and a half to three months from the time scientists determined the genetic sequence of the virus.

Novavax, Inc. research chief Gregory Glenn told Reuters his company has taken vaccines from discovery to clinical testing in 90 days and believes it could do something similar for the new coronavirus.

But to move vaccine candidates from the lab to widespread use in patients involves a number of hurdles, according to health experts and executives for drugmakers working on coronavirus vaccines and treatments.

In addition to scaling up manufacturing capacity and building distribution networks, there are regulatory hurdles such as conducting large clinical trials to make sure a vaccine not only confers immunity to the virus but is safe for use in the general population.

“The earliest you could even know if it’s going to work is a year,” Fauci said.

Whether even a highly effective vaccine will prove profitable for companies is another big question.

“The outbreak could be abating by the time a vaccine is deemed safe,” Karen Andersen, who follows biotech companies for Morningstar, said in a research note.

The Coalition for Epidemic Preparedness Innovations (CEPI) has raised around $800 million from donors to aid in preventing pandemic diseases and has allocated some of those funds to biotechs, including Inovio Pharmaceuticals, Inc., Moderna, Inc. and CureVac, which are working on coronavirus vaccines.

“We stepped into this with no economic expectation,” said Paul Stoffels, Johnson & Johnson’s chief scientific officer. “We’ll see whether in the end it gives a reward.” — Reuters

Iloilo province readying hospital, waste-to-energy proposals for PPP

By Emme Rose S. Santiagudo
Correspondent

ILOILO PROVINCE is preparing the concept notes for five projects being proposed for public-private partnership (PPP) implementation.

Governor Arthur R. Defensor, Jr. said the concept notes, which will be presented to potential private sector investors, are based on the output of the two-day orientation and workshop facilitated by the PPP Center on Jan. 27-28.

“We conducted the workshop to educate our technical working group and other partners on how to undertake the PPP projects. They came up with a draft but the final output will be the project concept note for the lined-up PPP projects,” he said in an interview last Monday.

The five projects are a waste-to-energy (WTE) facility; expansion of district hospitals across the province; a farm-tourism site at the Agricultural Technology Center in Pototan; an integrated government complex in Sta. Barbara for national agencies; and the upgrade of the Iloilo Sports Complex in Lapaz, Iloilo City.

Mr. Defensor said these projects were chosen based on the nature of the assets alongside the limited resources of the provincial government.

“For example, our sports complex is huge but it is underutilized, and we are spending so much money on maintenance. We want value for our money and are looking for ways to improve,” he said.

“There are projects we can’t afford to fund, that is why we chose PPP to match us with a partner… because it is too big for the budget levels of the province,” he added.

The governor also said that these projects will help create growth centers outside Iloilo City, which is an independent local government unit.

“The project in Sta. Barbara is a prime property because it’s along the highway. We want to help scatter development (in the) province because now it is just concentrated in the city,” he said.

He added that extending the development to other towns will help address congestion in the city.

“It’s better for urban management.”

Mr. Defensor said the province aims to pursue all five projects simultaneously.

The Iloilo City government is also considering three big-ticket projects under the PPP scheme: a solid waste management facility, the rehabilitation of public markets, and upgrading a slaughterhouse.

Neil G. Ravena, chief of the city’s Solid Waste Management Division, recently confirmed that the proposed Integrated Solid Waste Management project has received approval for the PPP Center’s Project Development and Monitoring Facility (PDMF) support.

The PPP Center, in a statement, said the PDMF support includes the conduct of feasibility studies, project structuring, preparation of tender documents, management of the bid process, and assistance until financial close.

Mr. Ravena said around 16 proponents have signified their intent to partner with the city on the project.

He noted that the city’s existing sanitary landfill is expected to be retired in four years and that a more comprehensive waste management system is necessary for the growing city.

“Landfill alone is not a solution to our problems on waste. We really need this waste to energy project,” he said.

Malaysia January palm oil stockpiles seen falling to lowest in over two years

KUALA LUMPUR — Malaysian palm oil inventories likely tumbled to its lowest since June 2017, as dry weather and lower fertilizer usage in the second largest palm producer early last year suppressed output to near four-year lows, a Reuters surveyed showed.

January stockpiles in Malaysia are forecast to fall 12% to 1.76 million tons from December, the lowest in two and a half years, according to a median estimate of nine planters, traders and analysts polled by Reuters.

Production also likely dropped 9% to 1.21 million tons from the month before, its lowest since March 2016.

“Output fell on a combination of lower harvesting and milling activities due to the Lunar New Year holidays,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

Meanwhile, January exports likely plunged 8.2% month-on-month to 1.28 million tons as Malaysia faced lower purchases from its biggest customers India and China.

Malaysia’s monthly palm exports to India fell to about 40,500 tons compared to 201,450 from the year earlier, after the world’s largest consumer of vegetable oils restricted imports of refined grades and informally stopped all purchases from Malaysia over a diplomatic row.

On Tuesday, Pakistan said they will import more Malaysian palm oil to help offset the lost sales to India, but traders said that would not fully compensate.

“Pakistan’s edible oil consumption is around 4.50 million tons while India consumes 24 million tons; the scales are too wide,” Sathia said.

Exports to China also saw a decline as the coronavirus epidemic raised fears of a sustained disruption in supply chains and eating habits in the world’s most populous nation.

However, the crude palm oil market appears to be more concerned over supply shortfall than potential demand rationing due to slower global growth from the virus outbreak, Ivy Ng, regional head of plantations research at CIMB Investment Bank said in a research note.

The benchmark palm oil contract for April last climbed 2.3% to 2,730 ringgit ($662.46) on Wednesday.

Official palm oil data will be published by the Malaysian Palm Oil Board on Jan. 10.

The median results from the Reuters survey put Malaysia’s consumption in January at 258,977 tons. — Reuters