Visionary tycoon initiates BPO triangle strategy

(The Philippine Star) Updated September 23, 2011 12:00 AM

Three floors of the mixed-use cluster of 8 Newtown Boulevard are reserved for BPO offices. Tenants will be able to access their offices from the sky gardens on the second floor.
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MANILA, Philippines - In the late 1990s this visionary businessman changed the Philippine business landscape forever by enlisting Eastwood City Cyberpark as the country’s first accredited information technology (IT) park. Today, Eastwood City Cyberpark is the country’s largest ITpark, #1 in terms of employment figures and salaries paid for 2010, according to data from the Philippine EconomicZone Authority (Peza). Top business process outsourcing (BPO) firms such as Citibank, IBM, Stream, Dell, Siemens and Accenture call Eastwood City home.

More than a decade later, this same businessman, albeit now on a bigger league and stature, is embarking on what he envisions as the country’s “BPO triangle” that will make the Philippines even more competitive globally and a desirable investment location for outsourcing and offshoring (O&O) firms.

This businessman is no other than Andrew Tan, chairman & CEO of Megaworld Corporation. Now a taipan, the chief of the country’s #1 BPO office landlord is enticing BPO companies and executives to venture out beyond Metro Manila and help spur development in the countryside.

The tycoon declared, “Now that we have successfully engineered, and continue to build up, the concentration of BPO activities in Metro Manila via our three cyberparks – Eastwood City, McKinley Hill and Newport City – it is high time that we at Megaworld embark on developing the urban countryside as well, specifically Iloilo and Cebu, with our high-profile BPO projects. Together with our cyberparks in Metro Manila, Iloilo Business Park and The Mactan Newtown encapsulate our BPO triangle strategy.

Taipan Andrew Tan of Megaworld envisions a ‘BPO triangle’ that will make the country even more globally competitive.

“All three offer BPO companies advantages in terms of location, lease prices and talent. Iloilo and Cebu are highly urbanized and their university systems produce quality graduatesannually. The locals, due to their native dialects, have a pleasant vocal intonation that BPO firms can take advantage of in servicing their clients,” Tan shared.

He added that once BPO firms expand into the countryside, this will improve family incomes and create a ripple effect in related industries in these two provinces plus their neighbors.

Megaworld started constructing the Richmonde Tower in Iloilo Business Park last May. The BPO component of this tower will run from the second to sixth floor, offering more than 9,000 square meters of prime office space for BPO locators. The upper floors, meanwhile, are slated for Richmonde Hotel Iloilo. The hotel will host 90 guest rooms, ranging from superior rooms to junior suites. Its seventh-level amenities deck features play amenities such as a lap pool, children’s pool and fitness center, while the business center on the same level will include meeting rooms and a conference room.

The first retail component of the project, Festive Walk, will be completed in the latter part of 2012. With these anchor projects, Megaworld aspires to turn the 54.5-hectare former Iloilo Airport into a new business center in Western Visayas.

With its strong Work-Play-Learn components, Megaworld is projecting that Iloilo Business Park will fill more than 24,000 seats for the BPO sector, whereas its retail component will infuse more than 200,000 square meters of space for the commercial sector. All in all, Megaworld expects to help create about 40,000 new jobs within Iloilo City, thus helping spur up the local economy.

Meanwhile, One World Centre in The Mactan Newtown is now ready for occupancy. The first BPO building to rise in this new 16-hectare township project in Mactan Island, Cebu, it offers 7,000 square meters of prime office space across five storeys. Retail space for restaurants, fast food outlets and convenience stores are slated for the ground floor. The location of One World Centre near Punta Engaño gives the employees of BPO locators easy access to beach destinations after a hard day’s work.

Also slated for development in The Mactan Newtown are the five-storey Two World Center and the township’s first mixed-use, four-cluster development, 8 Newtown Boulevard, three floors of which are dedicated for BPO offices and the rest for luxury residentialcondominium units.

Megaworld expects to create, through its locators, 2,000 new jobs in Cebu with these first two BPO towers.

Over at Eastwood City Cyberpark, TechnoPlaza Two is set for turnover to BPO tenants this November. The building offers 15,000 square meters of prime office space across five floors and easy access to the shopping and dining outlets at Eastwood Mall via an elevated walkway. A supermarket on the second floor will serve the needs of the Eastwood City community.

TechnoPlaza Two can accommodate up to about 4,000 new workers in total among its BPO locators, according to Megaworld’s estimates. This will further beef up Eastwood City Cyberpark’s employee count.

Since all of Megaworld’s cyberparks are Peza-certified IT parks, locators to any project within Megaworld’s BPO triangle are entitled to exclusive perks such as income tax holidays, duty-free importation of office equipment, hiring of expatriates and repatriation of earnings, among others.

“With our BPO triangle strategy, we as a company are making our contribution to help the Philippine BPO industry reach its five-year goal. As the industry is expected to generate US$11 billion in export revenues this year, with more prime office space in the pipeline from Megaworld in strategic locations in Metro Manila, Iloilo and Cebu, we will certainly help propel the BPO industry to register $25 billion in exports by 2016,” Tan declared.

New and expanding BPO firms may check out the advantages of locating in Megaworld’s BPO triangle by calling the Business Development division at +639173236123.

Are you the cause or are you the effect?

BUSINESS MATTERS (BEYOND THE BOTTOM LINE) By Francis J. Kong (The Philippine Star) Updated September 25, 2011 12:00 AM Comments (0)

There are 3 kinds of people in the world:

Those who make things happen.

Those who wait for things to happen.

Those who ask: “Why? What happened?”

Winners and achievers always make things happen. They live the philosophy that Ralph Waldo Emerson articulated many years ago: “Shallow people believe in luck. Wise and strong people believe in cause and effect.”

Is the person you are today the effect of some random event, of chance? Are you the product of someone or something which you can easily put a blaming finger on? Or are you a cause, a change agent as you make things happen today?

Every morning when you wake up, ask yourself these questions: “What do I want to cause to happen today? What do I want to produce?” I ask myself the same questions every morning, and then I qualify with “I need God’s grace and wisdom to help me carry through those tasks…” Then I move on towards my goal.

Those are the best management questions of all. People who have a hard time managing people simply have a hard time answering those two questions, because they’re always thinking about what’s happening to them instead of what they’re going to cause to happen.

Leadership means taking the initiative to make things happen. When your people see you as a cause instead of an effect, it won’t be hard to teach them to think the same way.

Now here’s an unpopular idea. You might hate me the moment you read my suggestion, but I’ll say it anyway: Stop criticizing the management!

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In any business organization, there will always be jerks, those people who brighten up the room by leaving it. The question is: are you going to let them control you? Or are you going to take charge of your day, work to produce, and move forward to your success goals in life? You can cause that to happen.

When you start criticizing management, you’re inadvertently distancing yourself from them and joining the majority of whiners, moaners and mediocres sobbing the same sad stories of how victimized they are and how unfairly treated. Trust me, it won’t add value to your success goals.

Whining about the management can come in various forms:

You’re quiet, but you roll your eyes every time the name of an executive is mentioned.

You mutter under your breath, “I don’t know why they’re doing this!”

You grumble, “They didn’t consult me because they know I wouldn’t agree to this policy….”

You get mad and say, “These jerks just do not understand what we’re doing here!”

Notice how one word keeps appearing in all of the statements: “They”. What you’re actually doing when you’re whining is you pit “They” against “Us”. You keep people from playing as a team, and you keep other team players from working effectively. When you go from being a producer to being a critic, you start going south. Your toxicity affects other team members because you generate the following impressions about the management, destroying morale and motivation:

1. Management is unfair and they are only using us.

2. This organization has no future.

3. You, together with other leaders, are weak and powerless.

You may think you’re bonding with the losers, but criticizing like this actually leads to deep trust problems and promotes disrespect to the integrity of the organization.

Be a cause, not just an effect. If you’re a leader, have the courage to honorably represent upper management and not run it down. If you’re a team member, have the courage to work effectively and foster unity, without giving in to management gossiping. You know you’ve arrived when you stop using the word “They” and start using the word “We!”

What does Scripture say? “Obey your earthly masters in everything; and do it, not only when their eye is on you and to win their favor, but with sincerity of heart and reverence for the Lord.”

That is being a cause and not being an effect.

(Spend two whole days with Francis Kong developing your leadership skills this September 29-30 at the EDSA Shangri-La Hotel. For further inquiries, contact Inspire Leadership Consultancy Inc. at 632-6872614 or 09178511115.)

'Keep a close eye on global economy'

By Alexis Romero (The Philippine Star) Updated September 25, 2011 12:00 AM

MANILA, Philippines - President Aquino has ordered his economic team to closely monitor international economic developments and to craft measures that would shield the Philippines from the impact of a possible recession.

Deputy presidential spokesperson Abigail Valte said they are continuously implementing programs to mitigate the effects of the looming slowdown on the poor.

“The instruction of the President is to keep a close eye on what is happening globally. We have seen in the past few weeks the slowdown in other countries. We will watch closely what we can do and prepare so we won’t be affected by the slowdown,” Valte told state-run radio station dzRB yesterday.

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Valte said the government already has programs to generate employment and to assist the country’s vulnerable sectors.

“Our (approach) is to create more jobs. Our CCT (conditional cash transfer) is still in place to help those who need it most,” the Palace official said.

“Our efforts do not stop there. The DPWH (Department of Public Works and Highways) and DSWD (Department of Social Welfare and Development) have tied up to launch the livelihood arm of CCT,” she added.

Valte said the program aims to provide jobs to the beneficiaries of CCT, which grants cash incentives to families who send their children to school and who avail themselves of health services.

She said the country’s economic projections remain “fighting targets.”

The government aims to expand the economy by seven to eight percent this year even as it assumed a five to six percent growth in its budget.

“The economic team is doing what it can to meet the target. We remain alert so we could avert the possible impact (of the recent developments) on our economy,” she added.

Fears of another global economic downturn have caused the buckling of international markets this week. The Philippine Stock Exchange index (PSEi) plunged to its lowest level in three years last Friday as investors chose to channel funds to safer US dollars and government securities.

The PSEi went down 210.14 points or 5.13 percent to close at 3,885.96, sustaining its biggest drop since Oct. 27, 2008.

At that time, the local bourse’s index dropped by 12.3 percent or by 239.66 points in the wake of the collapse of Lehman Brothers, which triggered the 2008 global crisis.

Major indexes in Asia, Europe and Latin America plunged by around five percent.

The recession panic also weighed in on the peso, which touched a seven-month low on Friday before recovering during the latter part of the trading.

The peso reached the P44 to $1 territory before closing at P43.58 from Thursday’s P43.77.

Fears of another economic downturn were raised after the Federal Reserve claimed that the US recovery is still prone to serious risks.

Analysts have said the possibility of another recession has raised anxiety among investors.

Even multilateral lenders have raised warnings about the prospects of the global economy and called on world leaders to avert a crisis.

World Bank president Robert Zoellick declared that the world “is in a danger zone.”

For her part, International Monetary Fund managing director Christine Lagarde said the economic risks have increased and called on countries to come up with an action plan.

Recent international developments are also seen to affect the Philippines’ economic growth, which posted a lower-than-expected 3.4 percent expansion in the second quarter.

The modest 3.4 percent growth was way below the government’s 4.5 to 5.5 percent and private analysts’ average projection of 4.9 percent.

“Global downside risks could hamper our growth prospects,” said Socioeconomic Planning Secretary Cayetano Paderanga Jr. in an earlier statement.

To mitigate the effects of a slower global economy, economic managers have vowed to boost domestic demand, fast-track fiscal spending, and take advantage of the benefits of the countries’ ties with its Southeast Asian neighbors.

Bidding in award of mining permits pushed

Thursday, September 22, 2011

THE Department of Environment and Natural Resources (DENR) is proposing that awarding of mining permits be done through tendering or bidding.

“The new approach in awarding mining tenements would deter corruption,” DENR Secretary Ramon Paje said in a statement furnished Sun.Star Thursday.

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The current scheme in awarding mining permits is through the “first come, first served” basis.

He said some of the permits granted to mining companies “are being used for speculative trading or sold to other companies without generating revenue for the government.”

“This is not the kind of mining we want to encourage. The government is allowing mining operation in the country because we want to generate revenue for the government and the people and to fuel the country’s economic development,” he explained.

Aside from the proposed new approach, the DENR is also pushing to increase the current revenue sharing in mining.

“The two percent excise tax, which is the share of the government according to the Mining Act, is not enough to pay for the environment cost, considering that mining is an extractive industry. This is the reason why the DENR is pushing for the payment of five-percent royalty by mining companies,” the agency said.

Mines and Geosciences Bureau regional offices (ROs), meanwhile, have been tasked to immediately submit their respective final reports on the implementation of the DENR’s “use it or lose it” policy for mining tenements.

This came after the MGB’s Mining Tenements Management Division noted that only ROs VIII and XII have so far achieved a 100 percent accomplishment with regard the cleansing of idle or abandoned mining applications.

ROs VI, the Cordillera Administrative Region and IX have the lowest accomplishment rates at 65 percent, 64 percent and 58 percent, respectively.

“DENR-MGB is bent on cleansing the mining industry of ‘wang-wang’ or undesirables prior to resuming the granting of mining permits in the country,” Paje said. (CGC)

Published in the Sun.Star Bacolod newspaper on September 23, 2011.

Trade office to conduct village entrepreneur training

By Cheryl G. Cruz

Thursday, September 22, 2011

THE Department of Trade and Industry, in coordination with the Philippine Center for Entrepreneurship and the Center for Future Leadership, will hold the first Negosyo sa Barangay entrepreneurship development training to develop the “entrepreneurial Pinoy.”

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The four-day training aims to change mindsets and introduce entrepreneurship as a viable and sustainable source of income in barangays; enable barangay and SK officials to facilitate, improve and increase businesses in their respective areas by implementing entrepreneurship development programs; tap resources and products in their respective localities to be channeled into money-making enterprises; impart information vital in starting a business; build networks and linkages with various government agencies, private institutions and experts to help them realize their goals as starting entrepreneurs or as entrepreneur-enabler; and empower barangay residents through entrepreneurship.

Training schedule for Visayas participants, which is expected to include the Liga ng mga Barangay (LnB) and Sangguniang Kabataan provincial, city, municipal chapter and federation officials, was tentatively set April next year.

The Interior and Local Government, in Memorandum Circular 119-2011, is encouraging local chief executives to allow the LnB and SK officials to participate in said training.

"Payment of applicable travel expenses and registration fee of P7,400 per participant... may be authorized, chargeable against local funds, subject to the availability, accounting and auditing rules and regulations," the memorandum stated.

DILG, however, stressed the traveling expenses and registration fees shall not be charged against the 20 percent development fund of from other sources that could prejudice poverty reduction efforts.

Published in the Sun.Star Bacolod newspaper on September 23, 2011.

Insurance firm auctions P28.5M assets of closed banks

THE Philippine Deposit Insurance Corp. (PDIC) recently sold nine properties of closed banks through public bidding for a total amount of P28.5 million.Friday, September 23, 2011

These properties consisted of six residential and three commercial properties.

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During the public bidding, PDIC offered 54 properties of 15 closed banks for sale, with total estimated value of P92.2 million.

The properties are composed of 50 residential, commercial and subdivision lots valued at P91.1 million and four vehicles with a total estimated value of P1.1 million.

PDIC will also accept offers to buy the remaining properties under negotiated sale basis and will evaluate these in line with government-prescribed guidelines.

The firm will also auction its acquired assets with estimated total value of P266.8 million, composing of 59 residential, eight mixed use and two industrial/agricultural properties on October 25, 2011.

The auction will be held at the PDIC Training Room, 9/F SSS Building, Ayala Avenue, Makati City.

PDIC announced that it is also showcasing various assets for disposal, as an exhibitor, during the 6th Housing Fair organized by the Housing and Urban Development Coordinating Council (HUDCC) from September 30 to October 2, at the SM Mega Trade Hall 1 in Mandaluyong City.

Interested parties may likewise coordinate with the PDIC-Asset Disposal and Administrative Department (Adad) at email address cbropa@pdic.gov.ph or at telephone number 841-4730.

The list of assets for negotiated sale, together with their descriptions, can be requested from Adad and may also be accessed at the PDIC website, www.pdic.gov.ph.

PDIC, as liquidator of closed banks, is tasked to dispose of the closed banks' assets to settle claims of the closed banks' creditors. (PR)

Published in the Sun.Star Davao newspaper on September 24, 2011.