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Whether you approve or not, Chinese-made cars are coming

Last year, when Volkswagen Philippines launched five new vehicles sourced from China, many people were livid. How could a German automaker with a rich heritage foist Chinese-made cars on them? Anywhere but China, commented some of these consumers. Much of the feedback was so negative that it was hard to tell whether customers were upset because they thought Chinese products were inferior or because they hated the People’s Republic for entirely political reasons.
Even as the distributor guaranteed that the quality was exactly the same as the brand’s European-manufactured vehicles — and explained that the business decision to source cars from China was mostly spurred by the lower 5% import duties courtesy of the ASEAN-China Free Trade Agreements — there still remained countless car buyers who stubbornly refused to even just consider the models in question. As far as they were concerned, anything from China was to be avoided. A sentiment they presumably shared on social media using their Chinese-made smartphones (yes, iPhones included).
And then last week, Kia Philippines — now under new management — officially unveiled its next bread-and-butter offering, a small sedan called the Soluto. What’s the relevance of this to our topic? The Soluto, you see, is actually the Pegas, a car that Kia had initially designed for the Chinese market. Indeed, the renamed vehicle for our territory is currently assembled in and imported from China.
The common denominator between Volkswagen and Kia in our market? Both are now distributed by Ayala Corporation, a highly reputable business organization whose excellent reputation no doubt played a role in the aforementioned car companies choosing it to become their local representative. I bring up good reputation because anyone hoping to sell Chinese-made cars in our extremely brand-conscious market will need an overabundance of it.
Now, if you’re 35 years old and above, chances are your mind is already made up when it comes to Chinese-made cars. You’ve long decided you won’t ever own one. That’s okay. The distributor probably knows that already. And they’re okay with it. You know why? You’re not the target market. And neither am I.
You see, consumers our age have biases that are now so ingrained in our consciousness that no slick marketing campaign can erase them. I remember helping my father shop for a new car in the US back in 2008. He was bent on getting a Ford Mustang. Meanwhile, I was doing my best trying to convince him to get a Japanese car instead. A Honda Accord or a Toyota Camry perhaps. The moment the names of those Nippon brands left my mouth, he gave me a weird look as though I had just suggested that we go rob a bank. That was because the thought of buying a Japanese car was inconceivable to him. Back in the 1960s, Japanese cars were the Chinese cars of my father’s generation. No matter how passionately I argued in favor of Japan’s present-day car-manufacturing superiority to American and European rivals, my old man would have none of it. He would rather walk than sit behind the wheel of such vehicles named Corolla and Civic.
China and its business partners aren’t aiming for us, my friends. We’re old. We’re on the way out. We’re retiring soon. They know that. And they don’t care. They’re going after the next generation, whose members are easily wowed by fancy and shiny gadgets. So whine all you want — it wouldn’t make a difference. Chinese-made automobiles will soon flood our market. Enjoy your Japanese ride now while you still can.
It is what it is.

December factory output decline steepest in 13 months – PSA

THE country’s industrial production posted a double-digit contraction in December – its biggest in 13 months, the Philippine Statistics Authority (PSA) reported this morning.
In its latest Monthly Integrated Survey of Selected Industries, the PSA said the volume of production index – a measure of factory output – contracted by 10.07% in December, a reversal from the revised 1.63% growth in November. This was also slower than the 6.1% decline posted in December 2017.
This was the sector’s worst performance since the -10.1% decline in November 2017.
This brought factory output volume to average 7.2% in full-year 2018 but was still better than the 0.5% slump recorded in 2017.
Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3% in December. Eleven of the 20 sectors registered capacity utilization rates of at least 80%.
“Ten out of 20 industry group registered annual declines, with two-digit decreases noted in the following major industry group: printing (-79.4%), chemical products (-28.9%), tobacco products (-22.1%), food manufacturing (-17.8%), basic metals (-16.7%) and machinery except electrical (-12.6%),” the PSA said. – Carmina Angelica V. Olano

Inflation eases further in January

INFLATION continued to decelerate in January, the government reported this morning.
Preliminary data from the Philippine Statistics Authority (PSA) showed January inflation at 4.4%, slower than December’s annual rate of 5.1% albeit faster than the 3.4% print in January 2018.
The preliminary result was lower than the 4.5% median estimate in a BusinessWorld poll of 12 economists and analysts conducted late last week. It was, however, within the Bangko Sentral ng Pilipinas’ (BSP) 4.3%-5.1% range seen for that month.
The January reading marked the third straight month of decelerating inflation from a peak of 6.7% in September and October.
The annual January result was also the slowest since the 4.3% result in March.
The PSA attributed last month’s inflation rate to slower increments posted by the heavily weighted food and non-alcoholic beverages, which increased by 5.6% in January from 6.7% in December and 4.4% in January last year.
Core inflation, which strips the volatile food and energy items, was 4.4% last month versus December’s 4.7% and January 2017’s 2.6%.
The BSP sees full-year 2019 headline inflation to average 3.2%, slower compared to the 5.2% finish in 2018 and crawling back to the 2%-4% target band. – Mark T. Amoguis

Reclamation projects under Palace watch

MALACAÑANG — which has cracked down on businesses polluting Boracay and Manila Bay — has assumed closer oversight of reclamation projects by placing the agency responsible for them under its direct supervision.
Executive Order No. 74 — signed by President Rodrigo R. Duterte on Feb. 1 and distributed to reporters on Monday — repealed EOs 798 and 146 that had transferred the Philippine Reclamation Authority (PRA) to the Department of Environment and Natural Resources (DENR) from the Department of Public Works and Highways in 2009 and then, in 2013, transferred PRA powers to approve reclamation projects to the National Economic and Development Authority (NEDA) Board, led by the President, while allowing PRA to continue processing, evaluating and recommending the approval of such projects to the board.
Citing “a need to rationalize the approval process for reclamation projects towards economically and environmentally sustainable resource development” — taking into consideration their “environmental, social and economic impacts” — EO 74 transfers the PRA to “the control and supervision” of the Office of the President, with “the power of the President to approve all reclamation projects… delegated to the PRA Governing Board.”
“Such delegation, however, shall not be construed as diminishing the President’s authority to modify, amend or nullify the action of the PRA Governing Board,” the order read, adding that “all proposals for reclamation projects shall be evaluated by the PRA based on their cumulative impacts rather than on a specific project basis.”
“Every proposed reclamation project shall be accompanied by hydrodynamic modelling — except for relatively small reclamation projects of less than five hectares — and detailed horizontal and vertical development plans.”
For each project, the PRA will have to seek the opinions of NEDA to ascertain consistency with national and regional development plans and priorities, of DENR to ensure compliance with environmental laws and regulations, of the Department of Finance to ensure economic and financial viability and joint venture deals’ consistency with laws, as well as coordinate with affected local governments.
The order reiterated that the PRA cannot approve any project without the required area clearance and environmental compliance certificate from the DENR.
EO 74, which takes immediate effect, applies to all reclamation projects — including those initiated by local governments, government-owned or -controlled corporations and other state entities allowed by law to reclaim land — “for which there are no contracts/agreements yet executed between the government entity concerned and a private sector proponent prior to the effectivity of this order.”
That provision, Infrawatch PH Convenor Terry L. Ridon said in a press statement on Monday, “removes all pending Manila Bay reclamation projects from the ambit of the EO because all pending applications had already been subject, at the very least, to a memorandum of understanding (MoU) between the local government unit and a private proponent.”
“It is absurd, even unthinkable, to issue a new reclamation policy while exempting from its coverage the nation’s most controversial reclamation area. This only lends credence to lingering questions on the sincerity of government in rehabilitating Manila Bay.”
Sought for comment, Presidential Spokesperson Salvador S. Panelo said in a press briefing in Malacañan Palace: “Pag MoU pa lang, di wala pang kontrata… Iba ‘yung memorandum of agreement, kontrata ‘yun eh (An MoU is not a contract… whereas a memorandum of agreement is a contract).”
Asked for the reason behind Mr. Duterte’s change in tack on reclamation project approval, Mr. Panelo replied: “He feels na mas maganda kapag under the Office of the President, kasi pag under Office of the President mabilis ang takbo ng lahat ng ahensiya ng gobyerno eh (all government agencies will act faster on projects).” — Arjay L. Balinbin

Customs tops target for January collection

THE BUREAU of Customs (BoC) surpassed its revenue target in January, sustaining strong collections from 2018’s record year.
The bureau collected P48.153 billion for the month, surpassing the P45.626-billion goal by 5.5%. The latest amount was likewise up 17.9% from the P40.83 billion collected in January 2018, according to preliminary data released on Monday.
In a statement, the BoC attributed the increase in revenues to bigger cash collections from duties, taxes and fees levied on goods entering Customs ports nationwide.
The bureau reported that 14 of its 17 collection districts met their respective targets for the year, with the exception of the Manila International Container Port, the Port of Manila and the Port of Ninoy Aquino International Airport, which nevertheless still brought in the biggest collection.
CONTINUING IMPROVEMENTS
Customs Commissioner Rey Leonardo B. Guerrero said that the bureau is counting on a tighter watch over imports and import values of shipments as part of “continued process improvements” in the agency.
Mr. Guerrero, a former armed forces chief-of-staff who assumed office in October 2018, laid out a 10-point priority plan for this year to improve the bureau’s collection efficiency.
The changes include streamlining the organization, adopting new technology for automation and filling vacant positions.
The agency will also improve cargo clearance and examination protocols, plus capabilities in intelligence and enforcement, Mr. Guerrero has said.
The BoC collected P585.542 billion in total revenues last year, slightly above the P584.881-billion target and 27.8% higher than the preceding year’s P40.83-billion take. The bureau reported that it surpassed monthly collection targets from February to September last year.
For 2019, the bureau aims to collect P662.2 billion, a target set by the Development Budget Coordination Committee in July last year. The target reflects a 13% rise from 2018 collection to help support increased public spending by the administration of President Rodrigo R. Duterte. — Melissa Luz T. Lopez

Tobacco tax hike measure gains ground in Senate body, mining bill struggles

By Camille A. Aguinaldo
Reporter
PROPOSALS to increase the excise tax on tobacco products gained ground as the Senate ways and means committee on Monday concluded public hearings on the measures.
The committee on Monday also tackled bills reforming the fiscal regime for mining, with industry representatives saying they were amenable to the tax hike proposed in the version of the House of Representatives if only to lift a moratorium on new permits that has dragged for more than six years, while the Department of Finance (DoF) preferred the Senate version.
Finance Undersecretary Karl Kendrick T. Chua said Malacañang was sure to certify the additional tobacco tax hike as an urgent measure.
Lawmakers of the 17th Congress are about to take a Feb. 9-May 19 break and will have only May 20-June 7 to approve any bill. Measures that do not make it out of the legislative mill — via ratification — by then will have to start from scratch in the 18th Congress that begins in late July.
“Once we have the committee report number, it will be (certified as an urgent measure), because they’re waiting for the committee report,” Mr. Chua when asked on the tobacco tax measure.
Senator Juan Edgardo M. Angara, chairman of the Senate Ways and Means committee, last week said he aimed to submit the measure for plenary approval on Wednesday, Feb. 6. “We’ll do our best to do the committee report this week,” he said during the hearing.
House Bill No. 8677, which bagged third-reading approval last Dec. 3, provided a tobacco tax rate increase to P37.50 per pack from the present P35. Meanwhile, Senate Bill No. 1599 proposes a P60 tax rate, Senate Bill No. 2177 proposes a P70 tax, while Senate Bill No. 1605 sets it at P90.
In Monday’s hearing, Federation of Philippine Industries chairman Jesus L. Arranza warned that further raising the excise tax on tobacco products may be counterproductive since “[i]f we increase the tax, we are giving incentives to smugglers and small factories to do scams instead of paying taxes in our country.”
In response, Mr. Chua said the Bureau of Customs intensified operations last year against smugglers, while its supervising department, DoF, added security features to cigarette tax stamps.
Asked on the bill giving the government a bigger share in mining revenues, Mr. Angara said in a mobile phone message that it was still “hard to tell” if the measure will be approved before the 17th Congress ends.
For his part, committee vice-chairman Senator Joel J. Villanueva said committee members remain optimistic that Congress still has enough time in May to approve the mining measure.
“However, the ultimate challenge is to agree on the framework for taxing mining: Do we want to incentivize the industry to attract additional investments or to regulate it and ensure the government gets the fair share from the extraction of resources? Agreeing on this will decide on whether we will have a new law or not,” Mr. Villanueva said in a text message.
During the hearing, Chamber of Mines of the Philippines (CoMP) Chairman Gerard H. Brimo questioned the imposition of more taxes on mining, but said his group prefers House Bill No. 8400 if only to pave the way for the lifting of the moratorium on new mining permits.
“If it is necessary for the industry to pay additional taxes… you would come to the conclusion that there’s really no need, but because we’re stuck with this problem of a moratorium on mining permits until a new tax structure is legislated under EO (Executive Order) 79, HB 8400 is a lot more reasonable and is workable than the other pending structures,”Mr. Brimo said.
HB 8400, which bagged third-reading approval last Nov. 12, reduces the royalty imposed on large-scale mining within mineral reservations to three percent from five percent currently based on gross output. It will also levy a 1-5% margin-based royalty on all large-scale mining outside mineral reserves.
Meanwhile, small-scale mining will be levied a royalty equivalent to one-tenth of one percent of gross output, whether or not the contractor is operating within or outside mineral reservations, under the House bill.
Meanwhile, Senate Bill No. 1979, introduced by Senate President Vicente C. Sotto III, sets the royalty fee a five percent based on gross output, whether large-scale or small-scale mining within mineral reservations. The bill also imposes an initial three percent royalty based on gross output on mining outside mineral reservations for the first three years of implementation, which will increase to four percent in the fourth year and to five percent in the fifth year.
Holcim Mining and Development Corp. President Renato A. Baja said the additional taxes on nonmetallic mining will push the cement producer to raise prices on aggregates and other construction materials, which he said might affect the government’s “Build, Build, Build” infrastructure program. He also noted that their prices have already soared due to the suspension of new mining activities.
“This is not healthy business already. If we’re going to survive, we need to pass this on to this on to consumers,” he said.
Finance Assistant Secretary Teresa S. Habitan said the department opposed the House version and that the Senate bill, which was similar to the DoF proposal, was “superior.”
Asked by Mr. Angara if the tax structure proposed by all the bills were better than the current regime, Ms. Habitan replied: “Not the House bill.”
She also noted that DoF estimates that construction prices following the new mining tax structure will have minimal increase.
“We estimate that the proposed royalty on nonmetallic mining could raise construction prices by about 0.4% and we believe that this is quite minimal compared to rapid economic growth and rising property prices,” she said.

DoF implements Meralco refund tax reduction under TRAIN

THE DEPARTMENT of Finance (DoF) has approved lower tax rates for refunds to be paid to customers of the Manila Electric Co. (Meralco), implementing a provision of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act (TRAIN).
In a statement, the agency said Finance Secretary Carlos G. Dominguez III has signed a new revenue regulation (RR) providing for the reduction of the withholding tax rate for the Meralco refunds covered by a Supreme Court decision over 15 years ago.
This refers to the high court’s April 9, 2003 decision that the power distributor must refund customers who were overcharged in the period spanning February 1994 to February 1998 as the utility firm passed on its income tax payments through customers’ monthly electric bills.
Previous reports pegged the excess collections at P10.8 billion, but Meralco pegged the amount at P28.15 billion.
“Under the existing RR issued by the Bureau of Internal Revenue (BIR), the creditable withholding tax for the refund paid to Meralco is 25% for customers with active contracts and 32% for those with terminated contracts,” the DoF said in a statement sent yesterday.
“These rates will be cut under the new RR approved by Dominguez to a flat 15% effective Jan. 1, 2019 as provided under Section 17 of TRAIN.”
The petition for the Meralco refund came from the now-defunct Energy Regulatory Board, which has been replaced by the Energy Regulatory Commission.
The power distributor has been gradually settling the refund payments since.
The tax rate for refunds covering meter deposits for retail and general service customers will be retained at 10%, Finance Undersecretary Antoinette C. Tionko also clarified.
The new revenue issuance also covers the withholding tax on the interest income derived from other debt instruments, which went down to 15% from 20% previously. However, the RR had yet to be posted on the BIR Web site as of Monday afternoon.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Melissa Luz T. Lopez

Power plant outages to push Meralco rates higher in February

By Victor V. Saulon, Sub-editor
MANILA ELECTRIC Co. (Meralco) expects electricity rates to rise in February in part because of the power plant outages in the latter part of January, which resulted in an increase in the power prices at the spot market, an official of the company said.
“During the second half of January, there were many power plants on outage,” Lawrence S. Fernandez, Meralco vice-president and head of utility economics, told reporters after a Senate hearing on Monday.
“More than 3,300 megawatts of capacity went on outage, both forced outage and due to scheduled outages,” he added.
Mr. Fernandez said the power plant that went offline triggered a rise in the prices at the wholesale electricity spot market.
Tumaas ‘yung spot market prices during the second half of January. That might also affect the generation charge in February,” Mr. Fernandez said.
He also said that as in the past two to three years, the reduction in the generation charge in January prompted a “normalization” in February. He noted prices in January reflected the reduced capacity fees for the outage allowance reconciliation for the power supply agreements (PSA).
“If power plants do not use their outage allowance for the year, then by December they charge us lower or with no capacity fees. And that leads to the lower generation charge in January,” Mr. Fernandez said.
“Since we have a new calendar year starting January, then the capacity fees go back to normal. And that will be reflected in the January generation charge,” he added.
In January, Meralco announced a decrease in the overall electricity rates to P9.835 per kilowatt-hour (/kWh), down P0.3418 per kWh from the rate in the earlier month, mainly due to the lower cost of power from its PSA.
The generation charge for January went down to P4.9119 per kWh, a decrease of P0.4184 per kWh from P5.3303 per kWh in December.
The decrease is largely the result of a P1.2293-per-kWh reduction in the cost of power from Meralco’s PSAs, the share of which was at 40% of the utility’s requirement for January.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

Cuaron wins at Directors Guild for Roma, Cooper empty-handed

LOS ANGELES — Alfonso Cuaron was named best director by his peers on Saturday for his semi-autobiographical film Roma, cementing his front-runner status ahead of the Oscars in three weeks time.
In one of the last major Hollywood ceremonies before the Feb. 24 Oscars, the Directors Guild of America (DGA) awarded its top prize to the Mexican director for his critically acclaimed black and white movie about a domestic worker in 1970s Mexico.
Roma has 10 Oscar nominations, including best director and best picture.
The Directors Guild of America (DGA) award is one of the top indicators of Oscar glory. All but seven of the DGA winners since 1948 have gone on to win the best director Oscar, and often the top prize of best picture.
The DGA ceremony proved another disappointing night for Bradley Cooper, the actor-turned director of musical romance A Star is Born.
Mr. Cooper made his directorial debut with the movie, as well as acting in it, but on Saturday he lost both the DGA award for best feature film as well as the prize for first time feature film director. The first time director award went to Bo Burnham for young adult drama Eighth Grade.
A Star is Born has garnered multiple nominations, including eight Oscar nods, but neither Cooper nor lead actress Lady Gaga have secured major awards so far.
Hollywood’s long awards season has often proved contradictory and inconsistent this year.
The Screen Actors Guild (SAG), many of whose voters are also members of the Academy of Motion Picture Arts and Sciences, last month selected musical Bohemian Rhapsody for its top award. But Roma and British historical comedy The Favourite, which also has 10 Oscar nominations, were not among the SAG choices.
The Producers Guild, also a reliable bellwether of Oscar success, in January chose 1960s road trip movie Green Book as its top movie.
The Directors Guild also handed out prizes for television directing, with Adam McKay chosen for corporate family drama series Succession, Bill Hader for comedy series Barry, and Ben Stiller for limited TV series for Escape at Dannemora. — Reuters

Anchor Land bullish on Binondo

By Arra B. Francia, Reporter

ANCHOR LAND Holdings, Inc. developed Mandarin Square, a 39-storey luxury condominium along Ongpin Street in Binondo. — HTTP://ANCHORLAND.COM.PH/

ANCHOR LAND Holdings, Inc. (ALHI) is bullish on the Binondo area this year, where it plans to build an office building and an “alternative accommodation” project to take advantage of the high purchasing power of residents in the country’s first business district.
ALHI President Digna Elizabeth L. Ventura said the company has a residential building and an office project lined up in the Chinatown area, banking on the younger generation who would like to conduct their businesses there.
“We’re reviving in fact the Manila CBD (central business district). And, also old Chinatown has to be revived… Because we see the next generation still wanting to do business in the area because that’s where they’re traditionally, culturally more comfortable,” Ms. Ventura told reporters on the sidelines of a press conference by online real estate portal Lamudi Philippines in Makati last week.
Binondo is touted as the center of trade and commerce in Manila, where several Filipino-Chinese businesses are currently located. Other financial districts in the country, such as the Makati CBD and Bonifacio Global City, have however overtaken its development over the decades.
Ms. Ventura said the office spaces, which will be up for sale, will have facilities and amenities that will cater to the younger generation.
The listed property developer will also be developing residential units designed as “alternative accommodations.” Comparable to online hospitality service provider AirBnB, ALHI will be selling fully furnished residential units that will be ready for lease upon turnover.
“We named it ‘alternative accommodation’ because the setup in the unit is already provided: fully furnished and there’s a digital lockset… So whatever the way of renting later on for the convenience of the unit owner is there,” Ms. Ventura explained.
The ALHI executive noted that they enjoy “very good returns” for projects in Chinatown, since most buyers pay in cash instead of going through banks. Meanwhile, investors can get yields of about 11-12% annually.
“The (price) per square is getting better. Less complaints, because it’s just a small community. We’re able to address concerns easily, so easier operations, selling, more profit,” Ms. Ventura said.
The alternative accommodation units will be similar to the company’s project in Davao called 202 Peaklane, which Ms. Ventura noted has received strong interest. Following its launch in December last year, the company has already sold about 200 units in the 28-storey development.
With the strong demand for 202 Peaklane in Davao, ALHI is assessing the development of another project in the city moving forward.
The company will also develop an alternative accommodation project in the Bay Area, located across integrated resort and casino City of Dreams Manila and the soon-to-rise Ayala Malls Bay Area. With this, ALHI will have more than 4,300 units in the Bay Area alone.
ALHI’s net income attributable to the parent slipped 15% to P377.4 million in the first nine months of 2018, as gross revenues also went down by 10% to P3.63 billion during the same period.
Shares in ALHI dropped 4.5% or 50 centavos to close at P10.60 each at the stock exchange on Monday.

Infrastructure projects to boost Central Luzon property market

By Vincent Mariel P. Galang
Reporter
CENTRAL LUZON, particularly Clark in Pampanga, is emerging as a real estate hotspot, with the numerous infrastructure projects and industrial development in the region.
“The usual suspect outside of Metro Manila is Central Luzon,” Michael R. Mabutol, president and managing director of Pinnacle Real Estate Consulting Services, Inc. told reporters after the company’s media briefing on Jan. 23.
In particular, Clark is expected to reap the benefits of the infrastructure that will improve connectivity among the provinces in the area and beyond.
For instance, Clark International Airport is undergoing an expansion which will increase its capacity to eight million passengers a year, while the Subic-Clark Cargo Railway which will provide freight service between the two economic zones.
Pinnacle also noted the proposed New Manila International Airport in Bulacan. Once completed, the airport will be able to accommodate 100 million passengers a year.
With increased connectivity in Central Luzon, Pinnacle noted the area will be more attractive for developers given the possible price appreciation as a result of these projects.
“It improves physical connectivity, thereby, stimulating economic activities and opening up new opportunities… Another benefit… is capital appreciation. As we may know, maraming infrastructure projects sa Central Luzon [there are many infrastructure projects], and most… ng land doon [of the land there] is agricultural, so can just imagine ‘yung [the] price appreciation which can happen in the short term because of the infrastructure projects,” Leo C. Doplito, director for research and consulting of Pinnacle said during the briefing.
A major project that is being developed is Clark Global City. The 177-hectare development is being undertaken by businessman Dennis A. Uy’s Global Gateway Development Corp. (GGDC). Mr. Uy’s group secured the government’s approval for the lease rights of Clark Global City for a total of 75 years. This came after the group’s $1-billion acquisition of the growing logistics hub in 2017.
GGDC’s parent, Udenna Development Corp., earlier said it plans to invest $6 billion for the development of Clark Global City. This includes the construction of more office buildings, residential developments, hotels, hospitals, schools, transport terminal, sports center, and a casino and entertainment complex.
With the public and private projects being rolled out in the region, Pinnacle said the benefits will be felt not just in Central Luzon but nearby areas.
“When we say Central Luzon, it does not only focus on Pampanga alone. Development in Bulacan, in Clark. It will spill over to other areas such as Tarlac, Pangasinan, and La Union,” Mr. Mabutol said.

Spotify commissions covers of OPM love songs


FILIPINOS love Original Pilipino Music (OPM) and they also love love — that was one of the observations made by Spotify regional executives which led them to launch their newest campaign, Spotify Jams: OPM Love Songs, where popular singers and bands cover classic Filipino hits from yesteryears.
“OPM is big for us, we have close to 10 billion streams [globally of the genre],” Gautam Talwar, managing director of Spotify Southeast Asia (SEA) said during the launch event on Jan. 31 at Shangri-La at the Fort, Bonifacio Global City, Taguig.
OPM is also the most streamed genres in the Philippines, he said before adding “OPM streams more than doubled in the last year.”
But that wasn’t always the case as Chee Meng Tan, head of artists and labels at Spotify SEA, said in the same event that “for the longest time the only OPM track that was on the Philippines Top 15 was Up Dharma Down’s ‘Tahanan.’”
“But now seven out of the Top 10 are OPM songs,” he said adding that IV of Spades’ “Mundo,” Ben & Ben’s “Kathang Isip” and Moira dela Torre’s “Tagpuan” were included in the top five most streamed songs of 2018 in the Philippines.
Acknowledging the popularity of the genre and in part to celebrate the streaming service’s 5th year in the country, Spotify is set to release several classic Filipino love songs sung by Rey Valera, Jose Mari Chan, and Regine Velasquez, to name a few, on the platform as covered by Ms. Dela Torre, Sarah Geronimo, and bands like IV of Spades, juan karlos, Ben & Ben, and Silent Sanctuary.
“At Spotify, we realize that helping you discover new music wasn’t enough: we wanted to have a hand in celebrating OPM content of the past and the present. For the launch of this campaign, we wanted to work with some of the top OPM artists of today and get them to cover their favorite OPM love song of the past. We understand the importance of OPM here in the Philippines and we want to celebrate this beautiful genre with our fans,” Mr. Tan said.
Among the songs given new interpretation by the new crop of singers are Mr. Valera’s “Naalala Ka,” sung by Ms. Dela Torre, and Mr. Chan’s “Beautiful Girl,” played by Ben & Ben.
The songs will be released throughout the month via the service’s flagship Filipino playlist, Tatak Pinoy: Feb. 8 for Moira dela Torre and juan karlos; Feb. 14 for Sarah Geronimo and Silent Sanctuary; and Feb. 22 for Ben & Ben and IV of Spades. — Zsarlene B. Chua