ROBINSONS Land Corp. (RLC) recorded a 19% growth in attributable profit during the first quarter of the year, on the back of strong real estate sales and improving hotel revenues.
In a regulatory filing, the Gokongwei-led property developer said net income attributable to the parent reached P1.83 billion, higher than the P1.54 billion it posted in the same period a year ago.
Revenues, meanwhile, stood at P6.78 billion, seven percent higher than the P6.36 billion it realized in the first quarter of 2018.
“Robinsons Land continues to post strong earnings from organic growth as well as from our expansion programs. We look forward with much enthusiasm to the improvement of our performance in the coming months,” RLC President and Chief Executive Officer Frederick D. Go said in a statement.
The listed firm operates five divisions, namely commercial centers, residential, office buildings, hotels and resorts, and industrial and integrated developments.
The commercial centers segment accounted for 46% of RLC’s revenues at P3.14 billion, representing a nine percent year-on-year growth. This can be attributed to same-mall rental growth of seven percent, as well as the contribution of new malls such as Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao, and Robinsons Place Valencia.
RLC ended March with a total mall leasable space of 1.5 million square meters (sq.m.) housing more than 9,000 retailers.
For the residential segment, revenues dropped seven percent to P1.97 billion amid steady sales take-up of P3.7 billion. The company said the decline was due to the timing of revenue recognition. It plans to launch a total of four projects this year, namely Sapphire Bloc Phase 2, Galleria Residences Cebu’s third tower, and Cirrus and Sync Communities in Pasig City.
The office buildings division’s topline grew by 30% to P1.12 billion from revenues of P865 million in the same period a year ago. RLC had a total of 20 operational sites covering 523,000 sq.m. of net leasable area.
RLC’s hotels and resorts unit booked revenues of P521 million, boosted by the operations of Summit Galleria Cebu and Summit Hotels Magnolia in addition to the contributions of newly opened hotels.
Meanwhile, the industrial and integrated development division generated P30 million in revenues after turning over its first logistics facility in Sucat, Muntinlupa with a total leasable space of 33,000 sq.m.
RLC also noted that its project in China’s Chengdu province has already sold out all 795 units, with revenues seen to be recognized within the year.
The company spent a total of P3.6 billion in capital expenditures during the quarter, out of its P27-billion allocation for the entire year.
Shares in RLC fell 3.35% or 80 centavos to close at P23.05 each at the stock exchange on Thursday. — Arra B. Francia
THE SOCIAL Security System (SSS) disbursed more than P30.5 billion in salary loans in 2018, as it saw a jump in releases through electronic means.
In a statement on Thursday, the state-run pension fund said more than P30.5 billion in salary loans were released to over 1.8 million member-borrowers last year, 5.3% higher compared with the disbursements in 2017.
Of the total loan releases, about 166,000 members or 9.22% of the total received their loans through the Quick Card of UnionBank of the Philippines, Inc., more than triple the 55,835 borrowers in 2017.
“Over the years, we have seen that more members opt to receive their salary loan proceeds through electronic means since they do not have to wait for their checks to be delivered to their houses or offices and go personally to the bank to encash the check,” SSS President and Chief Executive Officer Aurora C. Ignacio said. “We have decided to further expand the program of salary loans through UBP Quick Cards by allowing more kiosks in additional branches nationwide.”
The pension fund’s Salary Loan Releases Thru-the-Bank Program allows UnionBank to release funds to member-borrowers through Quick Card, an automated teller machine card linked to a UnionBank savings account or through an existing checking or savings account.
A total of 16 SSS branches have been offering this disbursement program since 2015: Diliman, Makati-Gil Puyat, Pasig Shaw, Makati-Ayala, Kalookan, Mandaluyong, Manila, Alabang, Bacoor, Biñan, Dagupan, Baguio, Cebu, Iloilo, Davao, and Cagayan de Oro.
Our department head is an old jerk whose management style is command-and-control. He keeps a close watch on what we’re doing almost every day as if we’re a bunch of elementary kids. We hate our jobs that give us no fulfillment, enjoyment, or the freedom to be creative. Many of us are planning to leave, except that there are not too many opportunities around us. Please write something about command-and-control and I will find a way of putting a hard copy of your column in the suggestion box. — Being Hopeful.
The following story has been told so many times and in various ways from different sources, except for the ending. There is much speculation concerning what heaven and hell will be like. At times, we talk of hell describing both situations – being jobless and with a job but working in a hellish work environment.
In the story, a man who was allowed to see heaven and hell. He was first taken to hell and into a room in the middle of which there was a large pot of stew. The stew smelled delicious, but all around this pot there were people who were starving almost to death.
They all held spoons in their hands that had unusually long handles which reached all the way to the pot. But because the spoon handles were longer than their arms, they were unable to return the spoons filled with stew to their mouths.
The suffering was terrible and continuous with no solutions in sight.
The man was then taken to heaven. Heaven was identical to hell. The room and the pot of stew in the middle was the same, and the spoons were the same. But the people in this room were well-fed and joyous. The visitor was perplexed. As he watched the people in this room, he immediately learned the difference. The people had spoons that would not allow them to feed themselves, so they fed each other.
What does this mean for your particular situation? If you and your colleagues are suffering in a difficult work situation, then what if — all of you cooperate with one another to take a united stand against the unreasonable command-and-control style of your boss? If you act as one, it would be difficult for your boss to refute all complaints.
“United we stand, divided we fall” is a familiar and oft-repeated phrase that can well apply to your case. Therefore, it’s better for all of you to act as one against your department boss. Arrange for a meeting with your boss and you as the facilitator. Organize a department meeting with your boss and all of your colleagues in attendance.
If this fails, then proceed to the next step.
If you are in a unionized work environment, use the grievance machinery of your organization to file a complaint against that particular department head. Otherwise, you can simply write a formal petition to the CEO giving specific details about the management style. That’s assuming that your company does not have a whistle blower program. Whatever approach you take, be clear about your complaint and that you have already exhausted all means to resolve the issue with the boss.
Be ready with particulars and all the reasons you think such a style is unhealthy in any organization. When you file a complaint, give specific examples on how you and your colleagues have been treated badly by your boss.
Of course, you can have a clipping of this article and have it deposited in your suggestion box so that management sees it. The trouble however is the suggestion box is operated by an equally-outmoded human resource department that may be at a loss on what to do with it. Further, the suggestion box is often treated as an ineffective form of receiving complaints, much less employee ideas. At times, you’ll get poison letters that accuse people in the organization without any concrete evidence.
Besides, command-and-control has been considered an ineffective management style since the end of the war, after it was used extensively by the military for practical reasons. John Landry, writing for Harvard Business Review, cites the case of Iron Mountain CEO Bob Brennan. In his article, “Breaking the Command-and-Control Reflex,” Landry writes: “(T)op-down leadership no longer works well for companies. But he (Brennan) believes that too many of his managers still operate in a ‘command-and-control reflex.’”
“They’re a lot like he was earlier in his career: good at holding subordinates accountable but bad at setting clear expectations. When subordinates aren’t sure what the boss really wants to accomplish, they don’t feel safe, and true delegation is impossible. Instead of acting autonomously, they hang around the boss and try to do whatever pleases him at the moment.
“To discourage the command-and-control reflex, Brennan puts a lot of energy into hiring. He looks for people who are open-minded and aware of their own foibles. Those are the ones more likely to encourage autonomy and collaboration even at the cost of control. He especially tries to screen out people who are self-centered. But he acknowledges the difficulty: ‘I’m interviewing people for positions of power. So there’s an alpha dimension to their personality that comes with the package.’”
In conclusion, there’s no other way but for you and your colleagues to take the bull by the horns. Be direct and to the point. But be courteous, diplomatic, and respectful to your boss, no matter how difficult it is. I can’t guarantee that he will change overnight.
What’s important is he has received the message and all of you are serious about it.
ELBONOMICS: Expect the best from worst people and prepare to be surprised.
TURKISH appliance brand Beko celebrates mothers with a free makeup session and tutorial, fresh baked pastries and coffee, and a lot of goodies on May 10 at Robinsons Magnolia. Beko aims to showcase its new products.
BGC
THIS Mother’s Day, celebrate mom and give her a very special treat she will remember on May 12. BGC is staging Hey, Momma! by Mommy Mundo to treat moms to a whole day of fun activities. Meanwhile, moms can nurture their kids’ passion for arts and music with fun activities at YouthStock!, a Coachella-inspired event for tweens, on May 11 and 12. It will be a weekend of art activities, musical performances, and loads of fun.
Shangri-La Plaza
THE Philippine Madrigal Singers will perform at Shangri-La Plaza.
SHANGRI-LA PLAZA mall has lined up three ways to celebrate Mother’s Day. First, share any photo or video with a heartwarming message for mom on the mall’s Facebook, Instagram and Twitter pages with the hashtags #ThankYouMom and #MomsDayAtShang, and tag @Shangri-La Plaza until May 10. Five promotion winners will get to give their mothers a pair of peach pearl earrings from Misaki Monaco and a skincare set from Adore. Then there is Isang Pasasalamat, a Mother’s Day series of tribute performances. The Consortium of Voices will be going around the mall at 11 a.m. and 5 p.m. At 7 p.m. at the Grand Atrium, enjoy a performance by the ABS-CBN Philharmonic Orchestra, led by musical director Gerald Salonga, and the Philippine Madrigal Singers with choirmaster Mark Anthony Carpio. Finally, there is the Mommy’s Day Out Shopping Exhibit at the East Atrium from May 10-12. Cookies from Tochi Desserts will be given away free from 12:30-3:30 p.m. and 5-8 p.m. on May 12. Take a souvenir photo to remember the moment at the special Mother’s Day photo booth at the 2/3 Level, East Wing. For inquiries, call 370-2597 or 98 or visit www.facebook.com/shangrilaplazaofficial.
Ortigas Malls
ORTIGAS Malls celebrate MOMents.
SHARE special MOMents with Mom for every minimum purchase wrth P2,000 from any Ortigas Mall establishment made from May 6 to 12. At the Greenhills VMall Lobby, there will be a spa party, a perfume making workshop, and a Sweet Serenade. At Tiendesitas, there will be a Super Mom Work Out, a soap-making workshop, and a Bazaar for Moms by Moms. At Estancia, there will be caricature sketching, a bento-making workshop, Mommy Talks and more.
Eastwood City
EASTWOOD CITY is holding Beautiful MOMents, a full month of beauty, shopping, wellness and dining offerings from participating establishments. Guests can also find gift ideas at the Mother’s Day Fair which is ongoing until May 12 at the Central Plaza. From May 10 -11 join Metro.Style’s Metro Mom’s Day Out full of empowering talks, activities and surprises at the Eastwood Mall atrium. On May 12, catch all-girl jazz trio Baihana at the atrium. For details, visit www.megaworld-lfiestylemalls.com.
Lucky Chinatown
AT Lucky Chinatown, there is the A Lot to Like Mother’s Day Fair and the Glow Like Mom wellness treats which is ongoing until May 12. On Mother’s Day, the mall will hold FurMama Love, an event for pet lovers with 1 Day Pet Pass registrations, Philippine Canine Club registration, and free vaccines for pets. The event will also feature the recital of Lucky Chinatown’s summer kiddie workshoppers dedicated to Mom. There will also be a performances by JBK Serenades. For details, visit www.megaworld-lfiestylemalls.com.
Venice Grand Canal
AT McKinley Hill’s Venice Grand Canal, Mother’s Day deals will be available from May 10 to 12. Then on May 12, Artsy MOMents will be held at the ground floor of Venice Cineplex, and Joey G will perform live at 7 p.m. at the Ponte de Amore Bridge. For details, visit www.megaworld-lfiestylemalls.com.
Uptown Bonifacio
AT Uptown Bonifacio, all kinds of mothers are being celebrated until May 12. Apart from All For Moms dining and shopping deals at partner establishments, there is the Weekend Market at the Parade from May 8-12, a Shop For Mom fair with gift ideas from May 9-11, and Moms Who Bloom flower pop ups from May 10-12. Then on May 12 catch the FoxLife Mother’s Day event called the League of Extraordinary Moms: Year 3. For details, visit www.megaworld-lfiestylemalls.com.
Forbes Town
FORBES TOWN celebrates Mother’s Day from May 10 to 12, starting with the All For Our Kween wellness and dining deals and the Mom’s The Bomb Weekend Fair. For details, visit www.megaworld-lfiestylemalls.com.
Southwoods Mall
SOUTHWOODS MALL’s Mother’s Day celebrations run from May 8-31, starting with the It’s A Mom Thing gifts and specialty fair at the Atrium. There are Mom’s Specialties with exclusive promos and discounts at participating establishments. Then on May 12 there will be a Do-It-Yourself workshop. For details, visit www.megaworld-lfiestylemalls.com.
San Lorenzo Mall
SAN LORENZO MALL is holding a Mom’s Favorite Fair until May 10 and offers Thank You Mom deals until May 12 at participating establishments. Grand MOMents, where inspiring moms share real-life stories on motherhood, will be held on May 12, 3 p.m., and at 5 p.m. there will be a Momma Ramps kiddie fashion show. Finally from May 17 to 28, mothers can attend the MOM-preneur fair for home based businesses. For details visit www.megaworld-lfiestylemalls.com.
Twin Lakes
AT Twin Lakes, discounts and promos from select establishments are being offered until May 12. Then from May 10 to 12, sweets, flowers and gift items can be found at the Mom’s Favorites fair. On May 12, Twin Lakes will host Mom’s Playlist at 5 p.m. onwards featuring live music. For details, visit www.megaworld-lfiestylemalls.com.
Festive Walk Mall
AT Festive Walk Mall in Iloilo, experts will be giving parenting tips on May 11 to 12, including a New Mom’s guide to postnatal life, the stages of motherhood, Mom’s self care tips, and Mompreneurship. For details, visit www.megaworld-lfiestylemalls.com.
Araneta Center
ACTRESS Jodi Sta. Maria will take part in MOMentous: A Memorable Mother’s Day at the Araneta Center on May 12 at the Gateway Mall activity area. Ms. Sta. Maria will perform a special number and join a cooking demo facilitated by Professional Academy for Culinary Education. Among the activities for this weekend is a talk on “The Solo Parent Act of 2000” with Carina Javier, president of Federation of Solo Parents in Luzvimin Inc. — United Solo Parents of the Philippines (FUSPP), at the Gateway Mall. Participating mothers will also get free skin analysis, hair styling, and foot and hand massage. The “Solo Mom’s Bazaar,” which will showcase products like organic rice and coffee, will be held at the Gateway Mall from May 12 to 18 as part of Araneta Center’s CSR activity in partnership with FUSPP. For details visit Araneta Center’s website.
MANILA WATER Co., Inc reported a 27% fall in first-quarter net income to P1.23 billion, in part as the water concessionaire factored in the impact of the water supply shortage within its service area starting in March.
“In all, Manila Water net income margin for the period stood at 24%,” the Ayala-led company said, adding that excluding the effects of the water supply shortage, core net income grew 22% to P2.1 billion.
Revenues rose by 8% to P5.1 billion, driven by the higher tariff during the quarter in its Metro Manila east zone concession along with the improved growth of its business outside the Philippine capital, Manila Water told the stock exchange on Thursday.
“However, this growth was partially offset by the voluntary, one-time Bill Waiver Program to help alleviate the inconvenience of all customers and to those severely affected by the water shortage in the Manila concession,” the company said.
Operating expenses jumped by 39% to reach P2.5 billion, driven by higher costs and expenses. This was due to the provision for the financial penalty imposed by the Metropolitan Waterworks and Sewerage System (MWSS) amounting to P534 million, which the company has decided to pay.
Manila Water said it continues to make progress on its service recovery efforts.
As of May 8, the company has achieved 98% water availability of at least 8 hours at 7 pounds per square inch (psi), or at ground floor level. It has also reached 72% 24-hour water availability at 7 psi.
The company’s continuing work on various distribution solutions seeks to address pocket areas of less than 8 hours of supply.
Its Cardona water treatment plant has been producing 50 million liters per day (MLD) and deep wells have augmented the Angat Dam water supply with production of 30 MLD. Cross-border flows are at 16 MLD, the company said.
Outside the Manila concession, its subsidiary Manila Water Philippine Ventures, Inc. (MWPV) reported a 7% rise in first-quarter profit to P174 million. Growth in this segment was led by MWPV’s business-to-business arm, Estate Water, which recorded gains in its customer base through the takeover of new estates and key accounts.
Estate Water’s net income stood at P93 million, 166% more than the previous year. But other domestic subsidiaries in Clark, Laguna, and Boracay registered lower earnings for the period due to a slowdown in demand and higher operating costs.
Manila Water Asia Pacific Pte. Ltd. (MWAP), which houses the company’s investments in the region, more than doubled its earnings to P135 million with the full recognition of the acquisition of Eastern Water Resources Development and Management Public Co. Ltd., or East Water, in Thailand, coupled with additional income from MWAP’s industrial park water supply operations at PT Sarana Tirta Ungaran in Indonesia.
The operating subsidiaries in Vietnam, namely Thu Duc Water and Kenh Dong Water, posted lower income contribution due to lower demand.
On Thursday, shares in Manila Water dropped by 2.27% to close at P21.55 each. — Victor V. Saulon
Technology is becoming a key component of many organizations nowadays as a response to disruptions coming from start-ups and other emerging competitors. This is compounded by the emergence of the “true digital native consumers,” the Generation Z, who were born wielding and using only digital tools.
But technology is not perfect. In March 2018, the first reported fatal crash involving a self-driving Uber car killed a woman on a street in Tempe, Arizona. Artificial intelligence (AI) such as an autonomous vehicle can indeed go wrong, and it raises the question of who to blame for such mishap.
If autonomous cars become the norm in the coming years, whose responsibility is it when an accident happens? The AI software provider could be liable for buggy software, car manufacturers for faulty design, the service center for poor servicing of the vehicle, or even the owner of the autonomous vehicle for failing to update the software from the manufacturer.
Take another example — the recent report of CNN which headlined that “AI is hurting people of color and the poor.” It cited several examples like: “A recent study by Joy Buolamwini at the M.I.T. Media Lab found facial recognition software has trouble identifying women of color. Tests by The Washington Post found that accents often trip up smart speakers like Alexa. And an investigation by ProPublica revealed that software used to sentence criminals is biased against black Americans.”
Bias in these situations stems from how the writers of the algorithms forget certain variables such as race or gender. Hence, I agree that “Addressing these issues will grow increasingly urgent as things like facial recognition software become more prevalent in law enforcement, border security, and even hiring.”
Similar to AI, the ethical consequences of blockchain technology can be just as diverse and wide-ranging. The growing popularity of blockchain as a digital distributed ledger technology has the potential to provide secure and immutable digital identities of distributed and sequenced information or transactions in various industries such as financial services, logistics, and healthcare. But these digital identities open important questions about control and privacy of data.
The newness of blockchain with its most popular use case, cryptocurrency, and the lack of regulatory oversight opens this technology to scams and unscrupulous businesses. One high profile case is Onecoin which was exposed as a Ponzi scheme and reportedly stole millions from duped investors who believed they were getting in early on what would become the “next Bitcoin.”
While the novelty of blockchain technology may give rise to certain groups taking advantage of people’s ignorance, other technologies intentionally lure its users by using entertaining applications only to capture personal data. This can be gleaned from how Filipinos are willing to give their detailed information just to be entertained.
Many apps, once downloaded and accepted, reads your browser history, checks your phone calls, remembers your location, listen to your microphone, and watches you through the camera — a blatant breach of your privacy. The same goes for most entertaining apps such as those that tell your celebrity look-alike or quiz apps that tell you what your super powers are.
While these technologies and other emerging ones present huge benefits for society, there are patently ethical issues that come out faster than how regulators and industry groups can react. There is a need for an ethical framework that will guide in the design and usage of these new technologies.
We propose a three-step Technology Ethical Design Framework. The first step is to understand the desired outcome of the use of the technology and clearly define the approach to achieve the outcome.
The second step is to design and simulate implementation of the technology in multiple scenarios to reveal the impacts of design alternatives on the defined outcomes and on the people affected by the design.
The final step is the maintenance phase that involves periodically revisiting the first two steps to ensure that the technology is still achieving its objectives and desired outcomes.
This governance model which can be implemented by regulators and industry groups should be inclusive and community-based and may involve other professions and experts other than technologists. Experts in the field of philosophy should be an integral member of the governance committee to allow thorough questioning of the technology’s potential societal impact, such as ethical dilemmas posed by AI.
Ultimately, the governance of emerging technologies should consider the desired outcomes to people and society while mitigating the ethical risks.
Reynaldo C. Lugtu, Jr. is President & CEO of Hungry Workhorse Consulting, a digital and culture transformation firm. He is the Chairman of the Information and Communications Technology Committee of the Financial Executives Institute of the Philippines. He teaches strategic management in the MBA Program of De La Salle University. The author may be emailed at rey.lugtu@hungryworkhorse.com
In recognition of their exemplary performance in the previous year, hundreds of Insular Life (InLife) financial advisors and agency leaders across the country were recognized recently at its annual awards night at Shangri-La at the Fort in Bonifacio Global City in Taguig City.
This year’s awards ceremony was inspired by a popular Latin phrase called “Ad Astra per Aspera,” which means “to the stars through hardship.” This reflects what InLife financial advisors have gone through in order to achieve greatness. They persevered and allowed themselves to grow through hardship. They surpassed their limits to reach high enough to graze the stars with their wings.
In her opening remarks, InLife President and Chief Executive Officer Mona Lisa B. de la Cruz likened the awardees to stars that were formed after overcoming great disturbances and turbulence. “You are here tonight because you battled many obstacles along the way, and emerged victoriously after. You are stars in your own right, formed as a result of the hardships you had to conquer,” Ms. de la Cruz said.
InLife Executive Chairman Nina D. Aguas likewise expressed her gratitude to the awardees for their achievements, noting that the said awards night is a fitting tribute and a clear testament to their blood, sweat and tears.
During the event, those who made it to the Chairman’s Guild of Excellence, President’s Circle of Producers, and Master Agency Builder and Consistent Agency Builder Honor Roll were recognized, together with over a hundred Million Dollar Round Table (MDRT) qualifiers.
Top agents and agencies were also honored in various categories, including General Agents and Managers Association (GAMA) International Management Award, Consistent Agency Builder Honor Roll, Centurion Award, Consistent Weekly Producers National Level, InLifers Guild, and Insular Life Quality Award.
Kristina T. Monsanto, one of the President’s Circle of Producers awardees under the Rookie Underwriters’ Category, told BusinessWorld in an interview that being an InLife financial advisor comes with a sense of fulfillment, knowing that she has been able to help Filipino families be financially secured. “It’s been my desire to really help other people,” Ms. Monsanto said. “I realized that being a financial advisor is also a way to help other people. It’s helpful by educating Filipino families about life insurance, savings, and the right kind of investments.”
Ms. Monsanto joined InLife as a part-time financial advisor in 2017. After realizing the benefits of the profession, she decided to resign from her job and work at InLife full time.
Real-life couple Cecile C. Gurrea and Mercedita F. Gurrea, who received the President’s Circle of Producers Non-Rookie – General Agencies’ and the Non-Rookie – Underwriters’ Awards, respectively, shared other advantages of being a financial advisor, including the freedom of time and the opportunity to travel across and outside the country.Both of them have very interesting stories before entering the insurance industry, with Mr. Gurrea as a former seminarian and Ms. Gurrea as a former fish vendor. Through trainings and testimonies from other agents, they both realized how beneficial it is to become a financial advisor.
The three said awardees belong to one agency, Agila Financial Team General Insurance Agency, Inc., headquartered in Cebu City. It was founded by Mr. and Ms. Gurrea in 2014 to serve as their legacy for their children when they get old. From its inception with only 15 agents, the Agila Financial Team now boasts of more than 100 agents. It turned out as a successful family business, according to Ms. Gurrea, with the help of their top financial advisors and underwriters. The agency takes good care of its members as proven by the awards it has garnered over the years.
Although Agila Financial Team only started five years ago, Mr. and Ms. Gurrea have an extensive experience in the insurance industry, working as InLife financial advisors for 16 and 23 years now, respectively.Over the years, the couple was able to witness how the industry has changed. As Ms. Gurrea said, “Compared to 20 years ago, mas maganda ngayon kasi ang tao aware na sila dahil sa social media, sa mga news (the industry is much better now because the public is more aware on what insurance is through social media and news). Aware na ang mga tao na ang insurance ay part ng family (The public is now aware that insurance must be part of the family.”
Mr. and Ms. Gurrea said that their lives have improved because of the profession. Working as a couple has given them an additional advantage to easily gain clients’ trust. “Nakikita nila kung gaano kami ka-sincere. (They see how sincere we are). Mapagkakatiwalaan kami kasi nga dalawa kami (They trust us more because we are two),” Mr. Gurrea said.
Asked what made them stay in InLife, Mr. Gurrea said that InLife is like a family. Ms. Gurrea agreed, pointing out that all the people she has met in the company are very friendly, supportive and family-oriented. She added that InLife has never disappointed her since all its promises are always delivered on time.
In light of all the changes primarily brought by advances in technology and the changing market, financial advisors like Ms. Monsanto and Mr. and Ms. Gurrea have undergone trainings for free to keep them updated with all the trends and developments in the insurance industry.Moreover, Ms. Monsanto believes that InLife’s recent rebranding is the company’s other means of empowering its financial advisors amid the challenges of the digital world.
“InLife is very much committed to bringing a lifetime for good to Filipino families. We now live in a very technological age and people nowadays are into social media and the like – especially millennials. With InLife’s adaption to the new age, to the technological era, it really helps us reach out to more Filipino families,” Ms. Monsanto said.
Insular Life adaption to the digital age is reflected in its reenergized brand identity. With InLife as the refreshed brand name, the 108-year-old insurance company wants to show its dynamism and capability to deliver insurance and financial solutions, as appropriate for its market and in a manner that is most convenient for them.
THE MAKABAYAN bloc, led by Senate candidate Neri J. Colmenares, asked the Supreme Court (SC) to issue a Temporary Restraining Order (TRO) against the loan agreement with Export-Import Bank of China worth $211.2 million for the Kaliwa Dam project, claiming it violates the Constitution.
In a 54-page petition, the legislative bloc said the loan agreement for the Kaliwa Dam project contained a “confidentiality clause” which is prohibited by the Constitution.
“That the national interest is primordial and paramount in any dealings involving the national economy and patrimony is absolute. The Filipino people are going to pay for these loans and it is absurd why they should not allowed to have access to a loan agreement that they, the next generations of Filipinos, are burdened to pay,” it said.
It also noted that Mr. Colmenares has requested a copy of the Kaliwa Dam Project Agreement from the government but Metropolitan Waterworks and Sewerage System (MWSS) Administrator Reynaldo V. Velasco did not act on the request.
“(T)he language of the Constitution on the right to information on foreign loans obtained or guaranteed by the government is complete, plain, clear and unambiguous. Any circumvention thereof shall be considered inimical to the national interest, and shall be dealt with accordingly as the law provides,” it added.
The bloc also said that the government has ignored the Constitutional requirement of prior approval from the Monetary Board (MB) before entering into loan agreements and has also assured China that the approval of the MB “will be forthcoming, thus forcing the hand of the Monetary Board to issue its approval.”
It also noted that nearly six months after the signing of the agreement, the MB has yet to approve of the loan.
It also claimed that the loan agreement was awarded to a “pre-selected Chinese contractor” which violates the rule on preference to qualified Filipinos as stated in the Constitution and other procurement laws.
Makabayan also said that the government agreed to submit any dispute that would arise in the agreement to the Hong Kong Arbitration International Center which it claimed is a tribunal that advocated for the Belt and Road Initiative of the government of China.
“By doing so, respondents swept aside the Constitution and gravely abused their discretion. It is clear that the choice of proper law of the Loan Agreement and the choice of tribunal are manifestly and grossly disadvantageous to the Philippines and one-sided in favor of China,” it said. “Under these circumstances, it will be impossible for respondents to defend the lack of impartiality or neutrality expected of a tribunal in arbitration proceedings.
The Kaliwa Dam Project was originally proposed for a Public-Private Partnership valued at P18.5 billion, which was approved by the National Economic Development Authority (NEDA) Board in May 2014. MWSS submitted the project to NEDA for funding under Official Development Assistance from China on Jan. 17, 2017.
The Makabayan bloc in March also filed a petition to the high court questioning the constitutionality of the Chico River Irrigation Project loan with China for $62 million. — Vann Marlo M. Villegas
THE METRO MANILA office sector’s capacity is expected to grow by 1 million square meters a year between 2019 and 2021, with demand for such space driven by the speed of the Philippine Economic Zone Authority’s (PEZA) investment application approvals for incentives, Colliers International said.
“We have 11.1 million square meters of total leasable space in Metro Manila as of first quarter of 2019. It is higher by 0.1 million sq.m…. because of the completion of a few buildings in Quezon City, the Makati fringe, Makati CBD (Central Business District),” Joey Roi H. Bondoc, senior manager for research at Colliers International said during the company’s Q1 2019 Property Market Briefing Thursday in Makati City.
In the first quarter, an additional 151,500 sq.m. of office space became available in Metro Manila, with 48% in the Makati CBD. This is due to the completion of Ayala North Exchange Tower 2 by Ayala Land, Inc. and NEX Tower by the Nova Group, which are both located along Ayala Avenue.
Between 2019 and 2021, he said the average expansion in office space will be one million sq.m. of new completions a year, much higher than the historical average of 400,000 to 500,000.
The positive outlook is supported by the infrastructure projects across the country, which is pushing developers and locators to expand their footprint.
Some projects outside of Metro Manila noted in the report were Clark Railway, due to be completed in the fourth quarter of 2020 for Phase 1 and September 2022 for Phase 2; the Cavite-Laguna Expressway set for completion in July 2020; the Mindanao Railway due for completion in 2021; and the Davao Airport expansion due for completion in December 2021.
Mr. Bondoc noted that PEZA approvals may affect the investment decisions of locators, especially outsourcing companies seeking to expand.
“It largely depends (on) PEZA approvals because, as I mentioned, once a building is PEZA-approved, that will easily be taken up by locators… Vacancies might increase is lack of PEZA (proclamations),” Mr. Bondoc told BusinessWorld after the briefing.
According to the Colliers report, vacancies in the first quarter were at 5.4%. PEZA-registered office space was at 446,000 sq.m., with 72% of the total in Metro Manila, and the remaining in Davao, Iloilo, Pampanga, and Cavite.
Mr. Bondoc added: “We are optimistic because this is a pretty good figure for the first quarter, and it’s spread across the country, although the bulk is still in Metro Manila. But look at the provinces that got PEZA approvals. We are optimistic more will be approved soon.”
Meanwhile, office space in the so-called Bay Area along Manila Bay is expected to exceed 1 million sq.m. by 2020, four times its 2016 level, just before a surge in demand from Chinese offshore gaming companies.
Colliers noted that 50% of the space due to be completed in the next three quarters has been pre-leased to offshore gaming companies.
Overall, demand largely came from other occupiers like government agencies, other companies, and firms offering flexible working space, accounting for 35% of the 72,000 sq.m. net take-up recorded during the quarter. Gaming companies accounted for 29%, knowledge process outsourcing (KPO) companies 23%, and Voice companies 13%.
Rent is expected to increase by about 5% annually from 2019 to 2021. “We see faster acceleration of rent in the Bay Area and the fringes of Makati and Ortigas due partly to offshore gaming operations, but this should be offset by slower acceleration in sub-markets with higher vacancy,” Colliers said. — Vincent Mariel P. Galang
THE Philippines has become a preferred destination for Chinese investors, according to the new report released by real estate advisory firm Santos Knight Frank.
The report, “New Frontiers: Prospects for Real Estate Along the Belt and Road Initiative” by the firm’s partner Knight Frank, aims to evaluate opportunities provided by the Belt & Road Initiative (BRI), specifically in Southeast Asia’s industrial and logistics sectors.
“The Philippines is increasingly becoming a much-sought after destination for Chinese capital, helping push the country’s infrastructure development and expand industrial, logistics, manufacturing, residential and tourism sectors. Improvements in accessibility and infrastructure are key to driving growth in the provincial areas and sustain the economic growth of the Philippines,” Rick M. Santos, chairman and chief executive officer of Santos Knight Frank said in a statement.
The report noted that since the start of the current administration, there has been a pivot towards Chinese-funded infrastructure projects and investments made in the country, which is in line with the government’s goal to boost infrastructure spending, thus fueling the economy. Some of the Chinese-funded projects noted by Santos Knight Frank are the Manila-Bicol railway project worth $270 million with China Railway Engineering and the Davao land reclamation project worth $200 million with China Communications Construction.
“However, things have been slow to get off the ground with only $6.7 billion of Belt and Road Initiative-related investments completed since the change in government, out of the roughly $25 to 30 billion in pledges secured,” Knight Frank said in the report.
One reason for this could be the Philippine rules restricting foreign ownership. The House of Representatives has approved House Bill No. 8764, which proposed to relax restrictions contained in Republic Act No. 7042, or the Foreign Investments Act of 1991 (FIA), on final reading on Jan. 14; while its counterpart measure, Senate Bill No. 2102 remains pending at the committee level.
Both Senate President Vicente C. Sotto III and Senator Sherwin T. Gatchalian, chair of that chamber’s economic affairs committee, committed to prioritize passage of the bill in the remaining days of the 17th Congress.
“Nonetheless, with the rapid infrastructure push, developers are once again warming up to the industrial sector,” it said. Developers have been moving out of the capital and are establishing their presence in emerging cities across the country due to rising fuel prices, and the shift of demand for such spaces to fringes of Manila.
Major e-commerce firms have entered the Philippine market. Alibaba’s Lazada brand set up its largest warehouse in Southeast Asia in Cabuyao, Laguna in late 2017, with plans of putting up five more facilities in over three to five years.
“Going forward, with the government forecasting the economy to expand between 6.5 to 6.9% in 2019 mainly via the strong and consistent delivery of its infrastructure investment agenda, the outlook for the industrial sector does look bright and expectations are for 2019 to at least maintain the growth momentum from last year,” it noted. — Vincent Mariel P. Galang
THE German government said Thursday that it has concerns about the Philippines’ compliance with the terms of its continued participation in a European Union (EU) preferential trade arrangement.
“Concerns are not a bad thing in itself… It has been known, we have never been unclear about that we do have worries about the state of certain issues going on in this country, but this is to say not that this is the only thing we are focusing on. It’s among many things that we talk regularly about with Filipino government representatives,” Roland Schissau, the German Embassy’s Charge d’Affaires told reporters at a briefing Thursday for the Mabuhay Germany business event this year.
He declined to elaborate, adding that discussions to resolve the issues are ongoing in their “dense and good-spirited conversations with the government.”
Under the EU’s Generalized Scheme of Preferences plus (GSP+), 6,274 Philippine products enjoy zero-tariff entry to the EU on the condition that the government signs on to 27 core international conventions that cover human and labor rights, environmental protection and good governance, among others.
The EU’s 2018 GSP assessment report, which monitored 2016 and 2017 compliance, noted progress in the Philippines’ enforcement of international norms for gender equality, trafficking in persons, labor rights, health, education, social-economic rights, the fight against corruption and protection of the environment.
However, extrajudicial killings arising from the government’s war on illegal drugs was flagged “a serious concern,” as well as the proposals to reintroduce the death penalty and the lower the age of criminal responsibility.
Ceferino S. Rodolfo, Undersecretary for the Trade department’s Industry Development and Trade Promotion Group, has said that previous concerns were raised again at the third EU-GSP+ Monitoring Mission in late 2018 but expressed confidence that the country will receive a positive assessment overall.
The German embassy’s Mr. Schissau also touted the benefits of an integrated market under a free trade agreement (FTA) between the EU and the Association of Southeast Asian Nations (ASEAN), although he said such a deal may take a while with both sides not moving quickly to further trade talks.
“The European Union has one big advantage for us which is that we have a fully harmonized market for 28 member countries. The ASEAN economic community though in place already a few years is not yet there. I think it has harmonized only around 90%. So to gain the best advantage for all involved would, in our opinion, would be having an EU-ASEAN free trade agreement,” Mr. Schissau said.
“These things do take time with decision making a bit slow on both sides,” he added.
Negotiations for the region-to-region FTA were launched in 2007 but paused in 2009 when EU members agreed to deal with individual ASEAN countries bilaterally.
The EU concluded its first FTA with an ASEAN country, selecting Singapore, and a deal is set to be in force soon. Vietnam is expected to follow with a trade and investment agreement now under the EU Council’s review.
The European Commission (EC), in its March 2019 schedule of trade negotiations, set a date with Indonesia while noting the need for further talks with Malaysia, Thailand and Myanmar.
As for the Philippines, the EC had said it is focused on the government’s implementation of commitments in relation to the GSP+.
The next GSP monitoring report is due for release early next year. — Janina C. Lim
