Bullish on the Philippines

Did you know 1: Manila Water Co. president and chief executive officer Antonino Aquino makes it a point to look at the weekly results of 500 water samples taken in different areas of Metro Manila’s east zone.

The red flag (read: possible contamination) is always the depressed community of San Andres in Sta. Ana, Manila, where water service is not yet 24/7. Basically, the pipes are really old and cannot be easily replaced because there are just too many people in the community, most of whom don’t pay anyway for the water they use.

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Did you know 2: There’s talk that Bangko Sentral Governor Rafael Buenaventura may not even bother to return home this July to formally turn over the job to governor-nominee Amando Tetangco Jr. Coincidentally, Say Tetangco is the current officer-in-charge, based on the rotation of the deputy governors when the governor is abroad.

Paeng Buenaventura is not in the hospital, of course, but he seems to truly enjoy the slower lifestyle of an almost-retired CEO in California.

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Splash Holdings, Inc. chairman and chief executive officer Rolando Hortaleza is eyeing a 2007 initial public offering.

By then, a new subsidiary called Splash Pharmaceuticals – which will be launched in July 2005 – will have been in the local market for two years.

Basically, Splash Pharmaceuticals will be entering the P5-billion herbal business in the country (read: those health supplements which are mostly labeled, "with no therapeutic claims"), gunning for a 40-percent market share.

Right now, the local herbal industry is largely made up of kitchen-based operations, which cannot substantiate the medical claims of their products. In contrast, Splash will use the 20-man Splash Research Institute, which personally reports to Rolan Hortaleza, an inventor in his own right.

Once it has market leadership, Splash Pharmaceuticals will be eyeing the lucrative markets of the United States and Europe, which account for the bulk of sales of the $8-billion industry.

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J.P. Morgan Chase has big plans for its Philippine operations, including the opening of a $10-million to $15-million call center (initially three floors at the Philamlife Tower along Paseo de Roxas, Makati) that will handle the credit card and mortgage backroom requirements of the American market.

Here are two reasons.

One, senior country officer Roberto Panlilio has been kind of promoted to chairman while Frederick DyBuncio takes over the bank’s day-to-day operation effective next week. In his new role, Bobbit Panlilio – an investment banker who spent years with Citbank – will have more time to sell the bank to both government and corporate clients. Meanwhile, Ricky DyBuncio spent most of banking career with Chemical Bank, which purchased Chase Manhattan.

For another, J.P. Morgan Chase has already gotten approval from the Philippine Stock Exchange chaired by Peter Favila to reenter the equities market. The bank is currently awaiting the approval of the Securities and Exchange Commission chaired by Fe Barin.