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No more tax reforms to make it out of 17th Congress

By Charmaine A. Tadalan
Reporter

THE 17th CONGRESS will likely end with enactment of the anti-terrorism, the security of tenure and the expanded anti-wiretapping measures, but without any of the remaining tax reforms wanted by the Executive, Senate leaders signaled on Monday.

Lawmakers reconvened yesterday for the remaining session days of the 17th Congress spanning May 20-June 7. Any measure that fails to make it out of Congress by then will have to start from scratch in the 18th Congress that opens on July 22.

“We will try our best to pass the anti-terrorism bill, the security of tenure… Ito ‘yung mga (these will require just) finishing touches na lang; anti-wiretapping and possibly the lowering of the age of criminal responsibility,” Senate President Vicente C. Sotto III told reporters following a caucus with members of the Senate’s majority bloc on Monday.

“And then meron kaming mga iba pa, ‘yung (There is also the) NEDA (National Economic and Development Authority) charter (amendment that will strengthen the socioeconomic planner), baka kailangan maihabol ‘yan, (which we may have to rush) and then a number of local bills, napakarami (that are so many).”

Senate Bill No. 2204, or the proposed Anti-Terrorism Act is designed to amend Republic Act No. 9372, or the “Human Security Act of 2007,” by redefining terrorism acts punishable by law and easing restrictions for law enforcers; while SB 1826 , or the proposed Security of Tenure and End of Endo Act, will amend Presidential Decree No. 442, or the Labor Code of the Philippines, by expanding the list of banned forms of contracting.

SB 1210, or the proposed Expanded Anti-Wire Tapping Act, will expand coverage of the anti-wiretapping law by prohibiting use of electronic and other modern equipment to listen into or record private communications.

These measures await second-reading approval in the Senate, while their counterparts in the House of Representatives had been approved on final reading, except for the anti-terrorism bill which is still in a committee.

Senate Majority Leader Juan Miguel F. Zubiri said senators planned to question measures proposed by the Department of Finance, after President Rodrigo R. Duterte vetoed bills like the one establishing the Coconut Farmers and Industry Development Trust Fund and the reconstitution of the Philippine Coconut Authority, due to perceived insufficient Executive role, among others.

“Marami tayong kasamahan na medyo napikon sa na-veto na kanilang (We have many colleagues who were miffed by the President’s veto of their) measures, which were recommended by the Finance team. They all listed to debate and ask questions on the different Finance measures,” Senator Zubiri said in an interview on Monday.

Mr. Zubiri said the Senate hopes for better coordination with the Presidential Legislative Liaison Office to prevent recurrence of approval of bills that will only be vetoed by Mr. Duterte eventually. “Umaapila na kami sa (We are appealing to) Malacañang, we said that they have to come up with a more effective PLLO para masabihan ang chairman kung lulusot (so that committee chairmen can be told of the odds that measures will be signed into law by the President),” Mr. Zubiri said.

Senate President Pro Tempore Ralph G. Recto said he will oppose any more tax reforms in the remaining weeks of the current Congress. “My personal position was that all major issues, [will have to wait for the] next congress. No midnight session,” Senator Recto said in an interview on Monday. “I’m against any taxes in the next nine (session) days.”

Sought for comment, Finance Assistant Secretary Maria Teresa S. Habitan said via text message on Monday, “We remain hopeful.”

Mr. Duterte has signed into law Republic Act No. 10963, which slashed personal income tax rates and increased or added levies on some goods and services, and the RA 11213, which grants estate tax amnesty and amnesty on delinquent accounts that remained unpaid after being given final assessment. Other tax reforms pending in the Senate Ways and Means committee are bills proposing to reduce corporate income tax and remove redundant fiscal incentives; simplify taxes on financial instruments; centralize real property valuation and assessment; increase government share from mining revenues and excise taxes imposed on alcohol and tobacco products.

Trade department notes investors lured from China

By Janina C. Lim
Reporter

THE DEPARTMENT of Trade and Industry says the Philippines has been able to attract investors from China, which is in the middle of a trade war with the United States.

“More of Chinese investors. Before, only $50 million a year. Very small. Now almost $1 billion,” Trade Secretary Ramon M. Lopez said in a mobile phone message on Monday when asked for updates on the status of Philippine efforts to lure investors from China amid uncertainty due to its trade row with the United States.

Economists have noted that the trade war will benefit the Philippines and other countries near China that offer viable relocation sites for locators that want to dodge rising US tariffs.

But geographic proximity is just one consideration.

Philippine Economic Zone Authority Director General Charito B. Plaza had said that uncertainty amid current moves to streamline the country’s package of investment incentives by removing perks deemed redundant has been keeping prospective investors away.

In order to seize opportunities amid the US-China trade spat, the Foundation for Economic Freedom (FEF) said in a press release on Monday that “[t]he Philippines could become an alternative destination for thousands of these factories seeking to avoid the US-China trade war,” noting that the country “has a highly skilled, English-speaking workforce.”

‘NOT WITHOUT COMPETITION’
But “[t]he Philippines is not without competition in the contest to attract these China-based factories to relocate,” FEF said.

“Other countries such as Vietnam are moving aggressively and with lots of incentives to boot with more liberal foreign ownership laws and less onerous labor regulations,” the group noted.

“The government owes it to job-seeking Filipinos to seize this opportunity to attract thousands of factories to our shores.”

The group recommended prompt enactment of the bill that will cut corporate income tax rates and streamline fiscal incentives and the proposed Public Service Act amendment to remove restrictions to foreign ownership and participation in public transportation and telecommunications.

“The quality, cost and efficiency of transportation and telecommunications are inputs to the decision of companies whether to relocate here,” FEF noted.

“Therefore, we need more foreign investment in the strategic sectors of transportation and telecommunications to bring more competition, improve services, and lower prices.”

USE PPP MORE
The group also asked for implementation of the measure designed to further ease doing business and rejection of the bill that will further restrict labor contracting modes since this will hinder flexibility of businesses, especially in dealing with disruption caused by technology.

The FEF also asked the government to implement its “Build-Build-Build” infrastructure development program “seriously and quickly” in order to bring down logistics costs. “We recommend that the government shift to public-private partnership (PPP) where feasible but undertake projects under official development assistance or General Appropriations Act whenever there is no incentive for private participation. The government should also quickly make a decision on the rehabilitation and expansion of the Ninoy Aquino International Airport and the Davao airport by private companies.”

AGI earnings increase 21% in Q1

ALLIANCE GLOBAL Group, Inc. (AGI) delivered a 21% increase in attributable profit in the first quarter of 2019, driven by the steady growth of its property, liquor, and quick-service restaurant businesses.

In a regulatory filing, the holding firm of tycoon Andrew L. Tan said net income attributable to the parent hit P4.35 billion from January to March, against the P3.6 billion it generated in the same period a year ago.

This followed a 19% uptick in revenues to P41.05 billion.

Property unit Megaworld Corp. accounted for 36% of AGI’s revenues for the quarter, followed by liquor manufacturer Emperador, Inc. at 27%. Travellers International Hotels Group, Inc. (TIHGI) and Golden Arches Development Corp. (GADC) contributed 17% and 18%, respectively, while the remaining two percent came from other businesses.

“We will continue to offer our premium products and excellent services to the market as we remain optimistic of the opportunities that lie ahead… We are mindful of the challenges in the external environment, but we will strive to work harder to sustain such good results,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.

Megaworld’s attributable profit went up 16% to P3.8 billion, on the back of strong residential sales and leasing income. Reservation sales alone reached P48 billion, while rental income from the lease of office and commercial spaces grew 16% to P3.9 billion.

The listed property developer also benefited from the expansion of its hotel segment, as revenues surged 56% to P574 million for the quarter. It now has a total of 5,175 keys under its hospitality portfolio.

For Emperador, net income attributable to the parent improved 10% to P1.7 billion after revenues also rose 13% to P11 billion. The listed firm reported strong sales in the local market while increasing contributions from its international presence.

The growth in Megaworld and Emperador offset the slower performance of TIHGI, which owns and operates integrated resort and casino Resorts World Manila (RWM). The listed gaming firm saw net income drop 45% to P243 million, even as revenues jumped 46% to P6.9 billion.

TIHGI incurred higher finance costs for the period as it pursued its expansion, including the addition of three new hotels and the opening of another gaming area for RWM’s Grand Wing.

Meanwhile, GADC — the exclusive franchisee of the McDonald’s brand in the country — reported a 16% increase in net income to P382 million. Revenues also climbed 13% to P7.5 billion supported by same-store sales growth of 4.8%.

The company opened 14 new stores and closed down one branch during the quarter, bringing its total store network to 633 by end-March.

Shares in AGI slipped 0.72% or 10 centavos to close at P13.80 each at the stock exchange on Monday. — Arra B. Francia

DoTr prepares to award rolling stock contract

THE Department of Transportation (DoTr) is set to award the contract to provide train sets for the Tutuban-Malolos segment of the North-South Commuter Railway (NSCR) project by end-May or early June.

Transportation Undersecretary for Railways Timothy John R. Batan said the Japan International Cooperation Agency (JICA), which will finance the project through a P777.55-billion loan together with the Asian Development Bank, is currently conducting financial evaluation of the bid submitted by the tandem composed of Sumitomo Corp. and Japan Transport Engineering Co. (J-TREC).

“Mag-aaward na tayo nyan if not this month, by next month. Nag-bid submission kasi tayo nyan noong Abril, ’yung financial evaluation report ay nasa JICA na for concurrence. Pagkalabas ng concurrence ng JICA ay mag-iissue na tayo ng award, pipirma ng kontrata at mag-issue ng notice to proceed (We are set to award the contract if not this month, by next month. The bid submission was in April and the financial evaluation report is now with JICA. After JICA’s concurrence, we will issue the notice of award, sign the contract and issue the notice to proceed),” he said during a briefing on Monday.

The contract set to be awarded to Sumitomo-J-TREC is for the procurement of 13 train sets with 8 cars each.

On Monday, the DoTr awarded the construction contract to DMCI Holdings, Inc. and Japanese firm Taisei Corp. for the civil works for six train stations of the Tutuban-Malolos railway, also called the Philippine National Railway (PNR) Clark Phase 1.

Actual construction also started after the contract signing, and is targeted to finish by end-2021.

The NSCR project is composed of three main railway segments that will link Clark, Pampanga to Calamba, Laguna: a 56-kilometer line from Calamba to Tutuban, a 38-kilometer line from Tutuban to Malolos, and a 53-kilometer line from Malolos to Clark.

The 147-kilometer project is expected to be fully operational by 2023.

Aside from the rolling stock package for the Tutuban-Malolos segment, the NSCR project also involves two more rolling stock packages that will be bid out eventually. These are for the 38 train sets for the Malolos-Clark and Tutuban-Calamba segment of the railway project, and the seven train sets for the airport commuter service.

“’Yung pangalawa nating rolling stock package, ’yung 38 na train sets, ’yan ay for publication nitong third quarter of 2019 [The call for bids for the second rolling stock package involving the 38 train sets is for publication by the third quarter of 2019],” Mr. Batan said.

The last package is for the airport express trains, which are high-speed trains that could run up to 160 kilometers per hour, making the travel time from the Clark International Airport to the would-be station in Buendia run in 55 minutes. — Denise A. Valdez

Manila’s most expensive condo costs P550,000 per square meter

A LUXURY condominium project is now pre-selling at a whopping P550,000 per square meter (sq.m.), making it the most expensive in Metro Manila, according to Colliers International.

“Strong demand in the pre-selling market has continued to raise residential prices, with the most expensive condominium project now priced at approximately P550,000 ($10,400) per sq.m.,” Colliers said.

While Colliers did not identify the project, it is reportedly The Estate Makati, a high-end condominium in the heart of Makati central business district (CBD) along Ayala Avenue across from Rustan’s Makati. It is being developed by SM Development Corp. and Federal Land.

“With the dearth of developable land, the most expensive pre-selling project along Ayala Avenue in Makati CBD is very attractive among investors; it being the last opportunity to own a pre-selling property in the Philippines’ primary business district,” Colliers said.

Luxury residential projects have been growing over the past three years in terms of take-up and launches. Colliers noted there is strong appetite for these projects, as developer continue to launch high-end condominiums in Fort Bonifacio, the so-called Bay Area and Makati CBD.

CONDOMINIUM STOCK
For the overall residential market, Colliers reported 3,700 units in Metro Manila were completed during the first quarter. This pushed Metro Manila’s condominium stock to 122,500 units as of end-March, from 118,900 units as of end-2018.

Nearly half of the new condo units delivered during the January to March period are in the Bay Area. About 1,800 units were turned over after Shore Residences Building 4 was completed.

Added supply also came from completion of the 490 units of Lincoln Tower of the Proscenium at Rockwell in Makati City, the Sandstone at Portico Tower 1 in Ortigas Center with 370 units, Verve Residences in Fort Bonifacio with 560 units, and Escala Salcedo and Two Roxas Triangle in Makati CBD with 430 units.

By 2021, Colliers expects Metro Manila’s condominium stock to reach about 142,000 units, with the Bay Area and Fort Bonifacio accounting for 75% of the new supply.

FLAT RENTAL GROWTH
Colliers also noted average rents for prime three-bedroom units in Makati CBD, Fort Bonifacio and Rockwell Center inched up 0.8% quarter-on-quarter.

“In 2019-2020 we see rents in the three business districts rising by an average of 0.6% due to the delivery of more units before rising to an average increase of 1.0% in 2021 as the completion of new units slows,” it added.

Capital values are also rising, with the average prices of prime three-bedroom units in the secondary market in Makati CBD, Rockwell Center, and Fort Bonifacio ranging between P139,000 and P350,000 ($2,600 and $6,600) per sq.m., 6.7% higher quarter-on-quarter.

“We expect prices to increase by an annual average of 6.3% from 2019 to 2021 as we factor in the new supply,” Colliers said.

At the same time, Colliers said leasing demand for residential condominiums was “firm” in the first quarter, especially in hubs where Chinese offshore gaming companies have set up shop.

“We recommend that developers with several ready-for-occupancy (RFO) units offer creative leasing models such as co-living, highlight features of projects such as landscaping, retail options, and accessibility; and launch more mid-income units,” Colliers said.

For investors, Colliers said they should cash in on the potential capital appreciation of condominiums, as the government starts work on rail projects in the greater Metro Manila area. — V.M.P.Galang

Huawei assures continued security support for Android smartphones

By Denise A. Valdez, Reporter

HUAWEI TECHNOLOGIES Co., Ltd. on Monday said it will continue to provide security updates and services for its smartphones and tablets, after Alphabet, Inc.’s Google said it would restrict the Chinese technology giant from updates to the Android operating system.

“Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally,” the company said in a statement.

“We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally,” Huawei said, noting it has “made substantial contributions to the development and growth of Android around the world.”

PLDT, Inc. and wireless unit Smart Communications, Inc. said they are working with Huawei to address concerns on firmware and software updates on devices purchased through the two companies.

“In light of the recent trade ban of the United States government on Huawei products, PLDT and Smart wish to assure its customers who have availed of Huawei handsets and devices via its official channels that said products will continue to function normally on the PLDT-Smart network,” the companies said in a statement.

Globe Telecommunications, Inc. said in a separate statement that it has gained assurance from Huawei that it will “continue to provide security updates and after sales services to its device users using the Globe network.”

“We wish to assure our customers that the current situation at Huawei will not impact its network services,” Globe said.

Reuters reported that Google is withdrawing Huawei’s license to use its Android operating system. This means that Google services relating to the transfer of hardware, software and technical services will no longer be available to Huawei devices, except those available through Android’s open source license.

It also means future Huawei devices that are powered by Android will lose access to Google applications such as Google Play Store, Gmail and YouTube.

However, existing Huawei devices will not lose access to Google, as Reuters reported Google Play and the security protections it provides will still be available on existing Huawei phones.

On its website, Smart is currently offering 13 Huawei phones — Huawei P30, P30 Lite, P30 Pro, Mate 10, Mate 10 Pro, Mate 20, Mate 20 Pro, Nova 3i, P20, P20 Pro, Y6, Y6 Pro and Y7 Pro.

For Globe, the company offers nine Huawei phones, namely: Huawei P30, P30 Pro, P30 Lite, Nova 3i, Y6 Pro 2019, Mate 20 Pro, Nova 3, Y3 2018 and Y7 Pro 2019.

Google’s decision to sever ties with Huawei came after the United States government included the Chinese tech firm in its trade blacklist last week.

Aside from selling Huawei phones, both PLDT-Smart and Globe have deals with Huawei for the rollout of their fifth generation (5G) network this year.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.

How the Philippines saved more than a thousand Jews from Hitler

A LESSER-KNOWN historical event that took place during the administration of President Manuel L. Quezon is the topic of the film Quezon’s Game. Directed by Matthew E. Rosen and produced by ABS-CBN’s Star Cinema, it will be released nationwide on May 29.

Quezon’s Game tells the story of Quezon’s role in helping more than a thousand Jews escape the Holocaust by persuading American authorities to issue Philippine visas to the refugees.

“President’s Quezon’s compassion has been compared to Oskar Schindler, the German industrialist who inspired the Oscar Best Picture Schindler’s List (1993),” according to a press release.

It was in the late 1930s that Adolf Hitler systematically massacred six million Jews during the Holocaust. While other world leaders ignored the plight of Jewish refugees, Quezon — despite opposition — created an open-door policy which was meant to welcome more than 10,000 Jews to the country though he had originally planned to welcome thousands more.

The Philippines initially issued 10,000 visas but plans were halted when Japan invaded and occupied the Philippines during the Second World War. In the end, only about 1,200 Jews reached the country’s shores.

The film’s trailer includes this exchange between Vice-President Sergio Osmena, Sr., played by Audie Gemora, and Quezon, played by Raymond Bagatsing:

“Mr. President, why are you doing this? It’s not that we’re belittling the Jews but should the Filipinos be concerned about this?”

“I can’t turn a blind eye, Sergio. … This is the Philippines. We will stand against Hitler.”

Aside from Mr. Bagatsing and Mr. Gemora, the film’s cast includes Rachel Alejandro who plays Aurora Quezon, the President’s wife; David Bianco as Dwight Eisenhower; and Billy Ray Gallion and Tony Ahn as Alex Frieder and Herbert Frieder, two brothers who were instrumental in helping Jews escape to Manila.

Quezon’s Game opens nationwide on May 29. — Zsarlene B. Chua

Nova Group completes NEX Tower in Makati

By Francis Anthony T. Valentin
Special Features Assistant Editor

PROPERTY DEVELOPER Nova Group has completed the development of NEX Tower, a 28-storey office building along Ayala Avenue in Makati City, and tenants are beginning to move in.

The structure, aimed at multinational companies, financial institutions and leading local firms, is already “about 65% leased out,” Ricardo Cuerva, managing director of Nova Group, told BusinessWorld after leading members of the press and other guests on a tour of the property last May 8.

Among the tenants are an insurance company, a real estate consultancy, and a Chinese technology firm.

“There’s a lot of interest ever since we finished the building. And we’re confident that more will be leased out very soon,” Mr. Cuerva said. A typical floor area is 1,400 square meters, and the floor-to-ceiling height is three meters or nearly 10 feet. The rent can go for P1,600 per square meter.

Nova collaborated with the international architectural and engineering firm Skidmore, Owings & Merrill (SOM) on NEX Tower. SOM designed Burj Khalifa, currently the world’s tallest building, located in Dubai, United Arab Emirates, and the One World Trade Center in New York City.

“SOM is really well known for office towers… We just thought that if we’re building a premium corporate office building, SOM is certainly one of the best companies to work with,” Mr. Cuerva said, adding that NEX Tower is their first project with SOM.

NEX Tower has a “crystalline” exterior and a “unique slice” design affording wide views of the environs. It features common areas landscaped with greenery, multilevel parking for hundreds of vehicles and a soaring lobby with a 16-meter floor-to-ceiling height.

Designed to be energy- and resource-efficient, the tower uses highly efficient air conditioners available on the market, low-flow fixtures and double-pane curtain wall with low emissivity. According to a press release, it is pre-certified for a gold-level LEED certification by the U.S. Green Building Council.

2GO swings to net loss in first quarter

2GO GROUP, INC. swung to a P291-million loss in the first quarter, as expenses ballooned due to rising fuel and commodity prices.

In a regulatory filing, the listed shipping and logistics provider posted an attributable net loss of P290.74 million in the January to March period, from an attributable net income of P38.44 million in the same period last year.

2GO reported an 11% increase in revenues to P5.89 billion during the three-month period, but cost of services and goods grew by 20% to P5.66 billion.

“Costs of services and goods sold increased 20%, primarily driven by rising fuel and commodity prices and increased sales of inventory from our distribution business. Fuel prices increased 19% compared to the 1st quarter of 2018, which resulted in a negative price variance of P134 million,” the company said in a regulatory filing.

2GO attributed the group’s higher revenues to “the gross presentation of certain revenue streams in 2019 as required by the new revenue accounting standard (PFRS 15, Revenue from contracts with customers).”

On a comparative basis, 2GO Group’s revenues rose 4% to P5.886 billion this year from P5.65 billion a year ago.

The bulk or 64% of revenues came from non-shipping business. 2GO saw a 10% improvement in its non-shipping business, brought by the “growth in courier, e-commerce, coldchain and isotanks and distribution businesses.”

Shipping revenues, account for 26% of the total, fell 6% as competition in the freight segment intensified.

2GO has three core business units, namely, 2GO Freight, 2GO Travel, and 2GO Supply Chain.

For 2019, 2GO said it is looking to expand its service offerings.

“The Group plans to achieve this through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices from its new shareholders. Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” 2GO said in the regulatory filing.

Shares in 2GO rose 20 centavos or 1.71% to P11.90 each on Monday. — D.A.Valdez

Game of Thrones reaches its end, with one or two shocks left

By David Gaffen

(Warning: This story contains spoilers for the final episode of Game of Thrones.)

AFTER eight seasons and 73 episodes, HBO’s long-running smash series, Game of Thrones, wrapped up on Sunday (Monday morning in Manila), with one more shocking demise and an unlikely character named as king.

The last episode of the medieval fantasy based on the novels of George R.R. Martin ran roughly an hour and 20 minutes to conclude the storyline of more than a dozen characters and intertwining plots.

The fierce competition for the fictional Iron Throne — the seat for the show’s ruler, made of hundreds of swords — ended with a death and an unexpected choice to rule the fictional kingdom of Westeros.

The series had become the cornerstone of HBO’s primetime offerings, but its final season was also its most divisive, with both fans and critics finding specific plot twists, particularly the handling of one primary character, troubling.

HBO says the record-breaking final season drew 43 million viewers on average for each episode in the United States alone, an increase of 10 million over Season 7 in 2017.

Most notable in fans’ criticism was the malevolent turn by Emilia Clarke’s Daenerys Targaryen, the “Dragon Queen,” who used her dragon to lay waste to the show’s fictional capital after her enemies had surrendered.

The move angered fans, as the episode, titled “The Bells,” now garners the weakest ratings of all episodes in the eight-season run on Rottentomatoes.com, which aggregates critics’ reviews.

Brutal acts by Ms. Clarke’s character in previous seasons were similar to those of other leaders, but many viewers saw the decision to kill tens of thousands of innocent people as too drastic, based on her previous actions.

The final episode features her death at the hands of Jon Snow, her lover (and nephew, among numerous incestuous relationships portrayed), played by Kit Harington, who kills her, fearing her tyranny merely mirrors that of predecessors.

Her last living dragon then burns the Iron Throne, melting it down with his fiery breath.

Without a ruler, numerous members of the show’s noble houses eventually make an unexpected choice of king, settling on Brandon Stark, played by Isaac Hempstead Wright.

In the premiere episode in 2011, Brandon was pushed from a high tower, crippling him, but awakening mystical powers that eventually allowed him to see the past and the future.

Some critics viewed the final episode’s choice as odd, since Stark’s abilities implied he foresaw the events, including the deaths of thousands, that would leave him ruler.

“He’s got the whole history of Westeros stockpiled in his head, so how is he going to be able to concentrate on running a kingdom?” wrote Rebecca Patton on Bustle.com.

From its ragged beginnings — its original pilot was never aired, instead undergoing substantial re-shoots and recasting of several characters — the series became a cultural phenomenon.

Its budgets grew, with the last season’s cost running as high as $15 million per episode, Variety says. It also won numerous primetime television Emmy Awards, including three for “Best Drama.”

It became known for unexpected, nerve-wracking moments, including the first season’s death of Eddard Stark, the nobleman played by Sean Bean, highlighted in a marketing campaign, and Season 3’s “Red Wedding,” a massacre in fictional wars that author Martin based on medieval Scottish history.

HBO, owned by AT&T’s WarnerMedia, is already planning a prequel series, set thousands of years earlier, while creators Dan Weiss and David Benioff are scheduled to make the next series of Star Wars films. — Reuters

Empty Bangkok condominiums make buyer’s market as foreigners flee

A GLUT of condominiums as Thailand’s economy wavers and stricter mortgage-lending rules kick in is creating a buyer’s market in Bangkok.

Some 65,000 new apartments were added to the city last year, an 11% increase over 2017 and the most since 2009. Demand, however, is tepid with developers reporting take-up rates of just 55% and average asking prices decreasing 6% year-on-year, a Knight Frank report shows.

It’s a chance to get into the market as home builders look to clear excess stock at lower prices, according to Aliwassa Pathnadabutr, a managing director of CBRE Group Inc. in Thailand.

“The overall condominium market will be slower this year but there are still opportunities in some locations with the right product at the right price,” she said. “We believe the market is entering an equilibrium stage where prices will be adjusted to a more realistic level.”

Thailand’s Finance Ministry cut its economic growth forecast last month, predicting the slowest expansion in three years as the country grapples with moderating exports and heightened political risk after disputed elections. Revised mortgage-lending rules that came into effect in April may also limit the appeal of real estate because they restrict how much money some second-home buyers can borrow.

The Southeast Asian nation’s capital is also being impacted by a drop in Chinese visitors. Chinese investors have historically made up the bulk of foreign property buyers in Thailand but their presence has waned as China’s economy slows and capital controls limit outflows.

CBRE said in a 2019 real estate market outlook report that it was concerned about Thailand’s high reliance on foreigners. “Most of the recent foreign buyers are investors and CBRE doubts they will live in the units they have bought. Foreign sales are highly sensitive to economic conditions of the buyer’s home country.”

And it isn’t just Bangkok that’s hurting. A total of 454,814 residential units across the country were left unsold last year, with a value of $41 billion, according to Sopon Pornchokchai, president of the Agency for Real Estate Affairs Co.

Still, some developers remain sanguine. Sansiri Pcl says it continues to see “real demand” from foreign purchasers despite recent challenges, adding they account for as much as 30% of the firm’s sales.

Knight Frank believes the glut and falling prices may be short lived, citing Bangkok’s resilience and planned infrastructure projects that will renew the city.

“Ask anyone who’s been in property how many times they’ve heard the bubble will burst?,” the firm’s Bangkok-based head of residential, Frank Khan, said. “I’ve heard this more than 10 times, but in my last 15 years, it’s never burst.” — Bloomberg

Emperador aiming to grow whiskey’s revenue contribution to 30% in 5 years

By Arra B. Francia, Senior Reporter

EMPERADOR, Inc. looks to increase the contribution of its whiskey business to overall revenues moving forward, banking on the company’s stronger presence overseas.

“We are planning that whiskey will go up a bit in terms of ratio or business share. It will go up a bit year on year. Once we properly implement our global strategy, the brandy will grow as well,” Emperador President and Chief Executive Officer Winston S. Co told reporters after the company’s annual shareholders’ meeting in Quezon City on Monday.

Mr. Co said the whiskey segment could grow its topline contribution to 30% within five years from 28% in 2018. Its brandy business accounted for 72% of revenues last year.

Emperador’s top executive noted that this is part of the company’s five-year plan, but declined to give further details due to the competitive market.

Emperador is also focusing on growing its malt products to 80-85% of the whiskey business, from its 2018 contribution of 65-70%. The company’s malt brands include Shackleton, Tamnavulin, Jura, Fettercairn, and Dalmore, priced from P1,250 to P3,580.

For the brandy business, Emperador wants to continue the introduction of more high-end products such as Fundador Supremo priced at P12,800. The company introduced the product in the travel retail market in Europe and Asia, and has recently been made available in the Philippines.

Fundador Supremo is significantly more expensive than its existing brandy products, such as Emperador, Tres Cepas, and Fundador Light which have a price range of P120 to P350.

“We believe that the Philippines five years from now will be very different. The consumption pattern will change so much because of the affluence that is coming to our growing middle class. We believe that this will change the landscape of the Filipinos’ consumption,” Mr. Co explained.

This is part of the company’s strategy to boost its high-value and high-margin products.

“The direction is to go for high- value, high-margin, fast-growing segment of the market. And we are using our global distribution strength behind this as well. Collectively, Whyte and Mackay, Fundador, we are in more than 100 countries. If we are in more than 100 countries, we can have new products, innovation, and go through the pipeline,” Mr. Co said.

Emperador’s net income attributable to the parent rose 10% to P1.74 billion, after revenues also grew 13% to P11 billion.

Shares in Emperador were unchanged at P7.49 each at the stock exchange on Monday.

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