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DoubleDragon on track to have 100 malls by 2021

By Arra B. Francia
Senior Reporter

DOUBLEDRAGON Properties Corp. said it is on track to have 100 malls under its portfolio by 2021, as it moves to secure all lots for the projects within the year.

“We’re still on target to have 100 malls by 2021…We have almost secured all lots, hopefully by end of this year, we’ll secure them,” DoubleDragon Chairman and Chief Executive Officer Edgar J. Sia II told reporters after the company’s annual shareholders’ meeting in Pasay on Friday.

Mr. Sia noted that only the construction of the malls will be completed by then, with operations to start soon after since they may experience delays with tenants.

The listed property developer is set to end the year with 51 malls, from its current network of 39.

“We’ll end this year with 51. So we’ll have to open 12 more. We build the same thing all the time, so it’s faster,” Mr. Sia said.

DoubleDragon’s mall business carries the CityMall brand, which is primarily located in second and third tier cities in the provinces. This aims to meet the demand for malls in provincial areas, while also avoiding competition from more mature players in key cities in the country.

CityMall is 66% owned by DoubleDragon. The remaining 34% is owned by Sy-led SM Investments Corp., which by itself is the country’s largest mall operator with 72 malls in the country and seven in China.

The company is counting on its commercial mall business to help boost recurring revenues by 2021, alongside its three other segments namely office leasing, industrial warehouses, and hotels.

It aims to have 1.2 million square meters (sq.m.)of leasable space across the four segments by 2020, around double its current 603,000 sq.m. This further supports its goal of hitting P10.8 billion in recurring revenues by 2021, after which the company will start declaring cash dividends worth about 30% of their net income to shareholders

This year alone, Mr. Sia said they expect to generate P4 billion in recurring revenues, and is seen to rise to P5.4 billion by 2020.

With more than one million sq.m. of leasable area under its portfolio by next year, the company is also eyeing to place its assets under a real estate investment trust (REIT) once regulators come out with the final rules.

“In the meantime, we’re just building more and maturing out leasable space. If the rules get delayed, the effect of that is we will just be able to raise higher amounts. But as soon as it’s ready, and it looks okay, we will go,” Mr. Sia said.

The company earlier said it wants to raise up to P15 billion from a REIT offering in early 2020, while its entire portfolio could potentially raise up to P59.4 billion

DoubleDragon’s net income attributable to the parent jumped 104% to P1.52 billion in the first half of 2019, after gross revenues surged 54% to P5.59 billion.

Reforms boost PHL banking sector

THE BANKING SECTOR remains robust following “sound and strategic” reforms by the central bank and cooperation from lenders, according to the 2020 Fiscal Risks Statement (FRS) prepared by the Development Budget Coordination Committee.

“The Philippine banking system sustained its growth trajectory and continued to operate in a safe and sound manner due to the sound and strategic reforms the Bangko Sentral ng Pilipinas (BSP) has implemented through the years, involving prudent regulations, risk-based supervision, and earnest cooperation from the banking sector,” the FRS said.

Early this year, the Republic Act No. 11211, an Act Amending Republic Act No. 7653, or the New Central Bank Act was signed into law, updating the central bank’s Charter as well as strengthening its monetary and regulatory functions.

Among the reforms included are the higher fines on banks and financial firms who violate regulations, as well as the authority of the central bank to suspend or revoke licenses of financial firms.

The new law also restored BSP’s authority to issue debt papers which gives it “greater flexibility” in deciding the timing of monetary operations.

“Several regulatory measures have been put in place to improve corporate governance and risk management standards, including the adoption of Basel reforms, promotion of the integrity and transparency of the financial system, and advancement of the financial inclusion agenda,” the statement added.

Meanwhile, domestic consumption is expected to remain as the main driver of expansion next year amid easing inflation and global oil prices.

Household spending in the second quarter still accounted for the bulk of the 5.5% gross domestic product (GDP) expansion, the FRS said. GDP growth in the April-June period slowed from the previous quarter’s 6.1%.

“In real terms, GDP is targeted to grow by 6.5 to 7.55% in 2020, with domestic demand seen to remain as the country’s main driver of economic growth. Household consumption is deemed to recover in the near term, as inflation is anticipated to revert back to the 2.0 to 4.0% target of the government,” it said.

Construction by both public and private sectors is likewise seen to boost investment while government spending is also expected to pick up next year, it said.

The FRS also said the Foreign Investment Act will allow the government to open up the economy and further boost investments next year.

“Reforms in the area of public utilities and retail trade should be prioritized. The amendment of the Foreign Investment Act is likewise important to increase foreign investments in both domestic- and export-oriented enterprises,” it said.

The FRS aims to present risks to the government’s fiscal position and aid in the formulation of necessary policies and plans of action.

It outlines the country’s exposure to fiscal risks stemming from various channels such as the projections used for budgetary purposes, public debt dynamics, operations of local governments and government corporations as well as public-private partnerships, contingent liabilities and the mechanics of the financial sector. — B.M. Laforga

Tracking Toyota’s ‘pure sports car’Kicking into Supra mode

Text and photos by Kap Maceda Aguila

THE DECISION to pull the trigger on releasing the all-new GR Supra locally surely makes a lot of sense for Toyota Motor Philippines (TMP) from both emotional and business standpoints.

An iconic nameplate now cycling on its fifth iteration, the Supra has made a reputation for itself as a capable sports car, with each succeeding generation pushing the limits of the performance bar its time. But it must be said that its allure has gone up steadily as a result of a prolonged absence of 17 years since the last Mark 4 rolled out of the production line.

Speaking of the Mark 4 or A80, it bore an SJZ-GTE 3.0-liter DOHC turbo inline six good for 320hp and 427Nm. It had a body extensively made of aluminum. A 0-to-60mph rate of 4.6 seconds is remarkable even by today’s standards, yet that Supra’s biggest claim to fame was a 70-0mph stopping distance of 45 meters — a world record that stood for more than 15 years.

Toyota Motor Corporation Technical Adviser David Lovett remarked to the group of regional motoring media at the Sportsland Sugo track in Miyagi Prefecture, Japan, that the Mark 4 truly enabled the Supra to “push (towards) world-class sportscar models.”

Cognizant of the Supra’s undeniably rich history, Toyota believes it has released a worthy inheritor of the badge. That said, the GR Supra is expected to key TMP’s entry into the local specialty passenger car segment — currently able to move 60 to 85 units a month.

The “GR” prefix stands for Gazoo Racing, which “embodies Toyota’s commitment to overcoming every limit to make even better cars by forging new technologies and solutions under the extreme conditions of motorsports.” Made in the Magna Steyr plant in Graz, Austria, the GR Supra shares a heart with the BMW Z4. The two vehicles also have a common transmission (a ZF eight-speed automatic), dampers, and steering rack.

There are two engine options available: the four-cylinder, 2.0-liter B2001 supplying 255hp and 400Nm, and the 3.0-liter, inline-six B30M1 blurting out 335hp and 500Nm. The Philippine market gets the more potent power plant, while the other is earmarked for territories more heavily taxing powerful engines.

The first leg of the GR Supra drive took us from Sugo to the Kamafusa Dam in Kawasaki. The scenic, undulating route proved an appropriate way to acquaint ourselves with the car. Sticking to the speed limit and ascertaining lower-rev poise allowed assessment of its everyday drivability. The car doesn’t seem anxious even when merely coasting along.

Much torque satisfyingly comes low on the rev range. Mr. Lovett had indeed noted earlier how one can realize maximum torque at 1,500rpm — a value helped along by the Supra’s 11:1 compression ratio — allowing the twin-scroll turbo to spool up even faster.

Engaging the Sport mode yielded an eagerness to rev up. “It’s an additional measure to enhance driving pleasure,” said Mr. Lovett. The car let out hearty “pops and burbles,” reaffirming what the Supra is really all about — heightened performance. That pleasing sound, helped along by the GR Supra’s sound system, isn’t artificial at all because the car’s advanced system actually doesn’t go into “fuel cut” when Sport is engaged, hence the real backfire.

On the outdoor, serpentine closed course of the Sportsland Sugo, we got a chance to stretch the legs of the GR Supra even more. After taking speed even through corners, the vehicle revealed excellent rigidity and poise — facilitated by a low center of gravity and an ideal 50/50 weight distribution ratio.

Inevitably, on the Fédération Internationale de l’Automobile (FIA)-accredited track of Sugo, the GR Supra appeared and felt most at home. It is a track weapon, after all. Toyota also wanted to highlight its straight-line ability. But the GR Supra shines most around corners. It has a rear that won’t quit — keeping firmly planted even when much is asked of its front wheels.

The GR Supra stretches 4,379mm, is 1,854mm wide, and towers 1,294mm. By comparison, the Toyota 86 is 4,240mm long, 1,775mm wide, and 1,320mm high. But despite being larger than 86, the GR Supra’s wheelbase is shorter by 100mm. In tandem with a wide track width, it achieves what its chief engineer Tetsuya Tada calls a “golden ratio” of 1.55 (computed by dividing the wheelbase with the track width). The lower the number, the more the car adheres to a go-kart experience as far as easy cornering goes. Still, one cannot go too far down this number as straight-line stability suffers. For comparison, the previous-generation Supra had a 1.67 value.

The front-mid engine configuration in the new Supra was achieved by moving the engine as far back as it could to be entirely behind the front axle. Alternative materials such as aluminum (for the hood, front side members, suspension towers, and doors) and resin (for the trunk lid) were used to save on weight. There’s no vestigial back seat like the 86’s.

And true to the vision of the Supra, Mr. Tada had been adamant about the Supra being accommodating to modifications and customizations. “He wants people to modify. He wants them to get excited about cars again,” underscored Mr. Lovett.

Speaking of exciting, Velocity asked Mr. Tada about the possibility of a manual-transmission Supra. “If enough people ask for it,” he said with a smile.

Davao gears up for RAPID Growth project rollout

DAVAO CITY — Micro and small enterprises involved in coffee, cacao, coconut, and processed fruits and nuts in the Davao Region will be among the first beneficiaries of the Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth) project.

The program, funded mainly by the International Fund for Agricultural Development’s (IFAD) and implemented by the Department of Trade and Industry (DTI), will cover 17 provinces in Mindanao and three in Eastern Visayas.

DTI-Davao Assistant Regional Director Edwin O. Banquerigo said the “market-driven program” would boost the income of farmers by helping them develop value-added products and linking them with buyers.

Mr. Banquerigo, also RAPID Growth project director, said the target is to start implementation within the last quarter of the year.

“We are still in the initial stage of preparations,” he said.

The total budget for the 20 provinces is P4.78 billion, or about $91.6 million.

Some $62.9 million will come from IFAD in the form of loans and another $3 million as grant. The rest will be covered by the national government, local government units, and the project beneficiaries.

According to a RAPID Growth briefer, the products supported by the program “have strong domestic and international market potential.”

The targeted commodities also involve “large numbers of rural farmers with high final value adding potential” and “a good number of cooperatives and SMEs (small and medium enterprises) in processing and trading segments, serving as anchor firms.”

More sectors may covered by the program later on based on “jobs, livelihoods, income generating potential and market considerations.”

The beneficiary provinces in the Eastern Visayas Region are Northern Samar, Leyte, and Southern Leyte. In Mindanao, the 17 provinces are: Compostela Valley, Davao Oriental, Davao del Sur, and Davao del Norte in the Davao Region; Agusan del Norte, Agusan del Sur and Surigao del Sur in Caraga; Misamis Oriental, Bukidnon and Lanao del Norte in Northern Mindanao; Cotabato, Maguindanao, Sultan Kudarat and Sarangani in the south-central portion of the island; and Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay in Zamboanga Peninsula. — Carmelito Q. Francisco

Wake up and smell the coffee: from your Ukrainian sunglasses

KIEV — Ukraine’s innovative OCHIS eyewear brand is getting customers to literally smell the coffee — by making sunglasses out of coffee waste.

Driven by an ambition to create eco-friendly yet fashionable sunglasses, OCHIS COFFEE CEO Maksym Havrylenko experimented with various herbs like mint, parsley, and cardamom, before he found the right natural material in coffee waste.

Green industries already use coffee waste to produce furniture, cups, printing ink, and biofuel, but Havrylenko is a pioneer in using it to make sunglasses, which smell of the freshly brewed beverage.

“First, coffee is black which is a classic color of sunglasses which suits everything. Secondly, there are lots of coffee grounds in the world. There are millions of tons of coffee grounds in the world,” Havrylenko told Reuters.

A worker makes eco-friendly sunglass frames from coffee waste in workshop near Kiev, Ukraine on May 13.

Havrylenko, who comes from a family of opticians and had 15 years of experience in the eyewear industry, had to dump some 300 samples before creating what he said were perfect OCHIS COFFEE sunglasses that are now available for $78 to $89.

The main advantage of sunglasses made of coffee grounds and flax glued by vegetable oil is that if disposed, they turn into a fertilizer after 10 years, he said.

OCHIS COFFEE’s first fund raising effort on crowdfunding platform Kickstarter raised $13,000, surpassing an initial $10,000 target and attracted customers from the United States, western Europe, Japan, and Australia. Havrylenko said only 10% of clients were from Ukraine.

“Our super goal is to promote at least in Ukraine and in the entire world, first, the idea of production of clean products and, second, proper waste disposal,” he said. — Reuters

Peso may strengthen vs dollar on slower Aug. inflation print

THE PESO is likely to perform stronger this week amid expectations of a slower August inflation print.

The local unit closed at P52.05 against the greenback on Friday, 13 centavos stronger than the P52.18-to-a-dollar finish on Thursday, ahead of the implementation of the first tranche of the planned 15% tariffs by the United States on some $125 billion worth of Chinese goods.

On a week-on-week basis, the peso went up by 22 centavos from its P52.27-per-dollar finish last Aug. 23.

“There seems to be a consensus that August inflation further slowed down. This will weigh and may strengthen the peso further as inflation numbers are set to be revealed [this] week,” Ruben carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said in an e-mail late last week.

“If and when we hear something to be announced over the weekend regarding the trade agreement between the US and China, we’ll see a continuation in the improvement in the risk tone or risk sentiment of the market players,” a currency trader said separately on Friday.

A BusinessWorld poll of 12 economists late last week yielded a median inflation estimate of 1.8% for August, settling above the midpoint of the 1.3-2.1% forecast range provided by the Bangko Sentral ng Pilipinas’ Department of Economic Research.

If realized, this would mark the third straight month of slower inflation from June’s 2.7%.

This reading would also be lower from 2.4% in July and 6.4% in August last year.

The estimate matches October 2016’s 1.8% print and would be the slowest reading in 35 months or since the 1.7% pace recorded in September 2016.

The Philippine Statistics Authority is scheduled to report August inflation data on Sept. 5.

Meanwhile, the US was set to begin collecting 15% tariffs on more than $125 billion worth of Chinese imports, including smart speakers, Bluetooth headphones and many types of footwear starting yesterday.

No grace period will be provided on those tariffs for goods in transit, the US Customs and Border Protection agency said on Friday.

As part of its retaliation, China will begin imposing a 5% tariff on US crude oil also from Sept. 1, the first time US oil has been targeted since the world’s two largest economies started their trade war more than a year ago, Reuters reported.

Tariffs have been imposed on $250 billion of Chinese products so far since the trade war began in 2018, and US trade groups and manufacturers have criticized the policies for hurting profits.

This week, UnionBank’s Mr. Asuncion expects the peso to trade between P51.90 and P52.20 versus the dollar, while the trader sees the local unit moving from P52.00 to P52.50. — Mark T. Amoguis

AboitizPower’s P12-B fixed-rate bond issue secures top credit rating

LOCAL DEBT watcher Philippine Rating Services Corp. (PhilRatings) assigned the highest credit rating for Aboitiz Power Corp.’s (AboitizPower) fixed-rate bonds worth up to P12 billion.

In a statement, PhilRatings said it gave AboitizPower an issue credit rating of PRS Aaa, which indicates the company’s “extremely strong” capacity to meet its financial obligations.

The rating was also given a stable outlook, which means that it is unlikely to change in the next 12 months.

AboitizPower looks to sell P10 billion worth of bonds, with an over subscription of up to P2 billion. The bonds will have a tenor of seven years, maturing in 2026. This is the third tranche from its P30-billion shelf registration at the Securities and Exchange Commission.

The company expects to push through with the offering in the fourth quarter. The bonds will then be listed at the Philippine Dealing and Exchange Corp.

Proceeds from the offering will be used for repayment of short term loans and general corporate purposes. AboitizPower obtained the loan from Metropolitan Bank & Trust Co. from May 2018 to April 2019, to partially finance its acquisition of AA Thermal, Inc., according to a prospectus posted on its website.

The company engaged BDO Capital & Investment Corp. and First Metro Investment Corp. to be the offering’s joint issue managers. The two firms will work with China Bank Capital Corp., SB Capital Investment Corp., and PNB Capital & Investment Corp. to be joint lead underwriters.

At the same time, PhilRatings also maintained the PRS Aaa rating for AboitizPower’s outstanding bonds worth P23.2 billion.

The debt watcher said it took into account AboitizPower’s significant level of cash flow and financial flexibility, adequate capital structure, diversified portfolio, and its experienced management team in coming up with the ratings.

“PhilRatings’ ratings are based on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to AboitizPower and may change the rating at any time, should circumstances warrant a change.”

AboitizPower ended the first half of 2019 with 3,349.7 megawatts (MW) of attributable net sellable capacity. It has interests in hydroelectric, geothermal, solar, coal-fired, and oil-fired power plants.

The company targets to add 133 MW within the year, and 935 MW in 2020, in a bid to reach its target of having 4,000 MW of attributable net sellable capacity by next year.

AboitizPower’s net income attributable to the parent slipped 2% to P5.02 billion in the second quarter of 2019, on the back of a 4% decline in gross revenues to P34.86 billion.

For the first half, its attributable profit dropped 7% to P8.65 billion, while gross revenues were lower by 2% to P63.96 billion. — Arra B. Francia

2020 Mazda3: The Masterpiece

Text and photos by Ulysses Ang

THERE ARE two kinds of car enthusiasts in the world. The first is content to sit behind his desk (or phone), happy to debate about numbers — curb weight, power, acceleration; the other simply says, “forget about the numbers,” gets in, buckles up, and drives off with a huge smile on his face. The 2020 Mazda3 is all about the second: it transcends what’s written in black and white; it’s simply made to be driven.

In creating the Mazda3’s new platform, engineers didn’t seek out the competition. Instead, they sought the help of psychologists and ergonomists to find out how the human body behaves, and how things like color, material, sound, and movement elicits feelings of joy and happiness. It’s come to a point that Mazda’s gotten it down to a mathematical formula; a formula so accurate that when they did decide to drive the competition, they managed to come out on top.

Now, admittedly, the first few kilometers behind the wheel didn’t feel spectacular. As a matter of fact, the ride can come across as firm, especially when going through the various cracks and potholes that dot EDSA after weeks of rain. It’s only when you drive (or ride) it some more when you realize what’s going on.

Traditionally, engineers reduce the suspension rebound to improve the ride; in the Mazda3, it’s all about controlling it. By unifying the development of the body, suspension, tires, and even seats, it reduces secondary shake and vibration to near zero. Anyone would be skeptical at first, but try this simple exercise: read the contents of the heads-up display, or as a passenger, your text message or Facebook status update — you’ll find that you actually can without getting dizzy. Why? Because the head is kept steady. It’s similar to walking — you never get dizzy when walking to the nearest third-wave coffee shop, simply because your body balances itself. It’s this sense of innate balance that the Mazda3 taps into.

This same sense of balance happens when you drive it spiritedly. Again, it’s not about power or even overcoming a power deficit against its competition; rather, it’s about predictability. In a straight line, a handful of compact cars will smoke it; heck they might even be faster around a racetrack. That said, you’ll be fighting tooth and nail for every advantage, sawing the steering wheel, or issuing an unplanned mid-corner correction. Not so with the Mazda3.

It’s all about natural progression. For one, the steering is precise and linear. Then, the chassis is also willing to rotate, with no traces of float and no excess lateral motions from the rear. It even has torque vectoring control, but unlike in other applications, it’s not here to maximize traction; rather, it’s there to smooth out cornering, specifically the transitions between roll and pitch. As a result, it’s easy to know when you’re at the Mazda3’s limit, and even when you go beyond it, it’s always easy to catch. A caveat is that the chassis engineers have done it so well that they’ve eliminated the forward pitching during heavy braking resulting in a rather wooden brake feel.

Keyboard pundits will surely zone in on the Mazda3’s power, or rather lack of it. On paper, the Skyactiv-G engine doesn’t pull off mega numbers: 154 horsepower for the 2.0-liter. In reality though, it’s pleasant and refined — perfect for the impressive NVH even at speeds in excess of 100 km/h. Dig deeper through and it’ll be more than happy to sing at wide-open throttle its entire life. The 6-speed automatic is a willing accomplice, happily revving the snot out of the engine, while staying smooth and intuitive. It always seems to know that you’re about to behave badly, and will downshift through multiple gears to keep the pace up. Paddle shifters and a Sport mode are standard, but they’re almost always unused. Interestingly, when it comes to fuel economy, the Mazda3 achieves 11.90 km/L in city traffic, and 18.5 km/L on the highway — impressive stuff.

Mechanically impressive as it is, the level of craftsmanship in the Mazda3 is simply unmatched. Everything is padded and premium-feeling — down to the consistent tactility of the switchgear, and how the perforations in the leather seats are sized and spaced to absorb NVH. Heck, engineers even considered how the human eye perceives the color white, and they took it upon themselves to torture their suppliers to make it consistent throughout the entire cabin — down to its illuminance.

Open the door, set yourself down, and the interior surrounds and cradles you, a reminder that you’re driving something unique. The seating position is low, with the cabin designed to cocoon around you. Despite the high dash and thick C-pillar, visibility is never an issue and even through tight confines, front and rear sensors and high-res 360-degree camera help. The steering wheel is squarely in front, your back supported by the seats, your hips low, and your legs slightly bent (but not bunched up). It’s posture-perfect, resulting in fatigue-free driving even after long stints behind the wheel. Even more surprising, the same supportive seat design is present for all passengers, even the rear ones. That said, those seated in the back will have to be content being squished by the lack of knee- and headroom; and that’s after getting their heads banged up upon entry.

Interior space may be tighter this time around, but on the flipside, the Mazda3 does up the premium features. Aside from the 360-degree camera, the 2.0 Premium model comes with adaptive LED headlights, rain-sensing wipers, leather seats, a sunroof, dual zone climate control, 10-way power adjustable driver’s seat with memory, 12-speaker Bose sound system, and Mazda i-Activsense which bundles radar-based Active Cruise Control, Blind Spot Monitoring, front and reverse smart brake support, and front Cross Traffic Alert — all for P1.495 million to P1.590 million.

The Internet debate will surely continue as to why Mazda opted to go with a “puny” naturally-aspirated engine or a torsion beam rear suspension, but the truth of the matter is, you shouldn’t care. Any true enthusiast will see that the 2020 Mazda3 is the result of engineers focusing on the important things, or even the smallest if you consider the cabin lighting or positioning of the speakers. In the end, it’s all about coming up with a masterpiece, regardless of the ingredients found underneath. It’s like a piece of music — anyone can assemble an orchestra, but only Mozart can create Mozart.

Chocolate maker training suppliers in halal food-handling practices, signs Malaysia deal

DAVAO CITY — MS3 Agri-Ventures Corp., which makes halal chocolate and other products, is training its cacao suppliers and processors to meet halal standards Islamic food preparation.

Neil Q. Santillan, the company’s chief executive officer and director, said the company has organized the Davao City Chocolate Processors Association to ensure the protocols are efficiently transferred.

“Our association has different clusters and each cluster were taught how to properly ferment that is halal-compliant, para at least walang (so that at least there will be no) contamination,” he told BusinessWorld in an interview.

The group also financed facilities like solar dryers and fermentation boxes that will be used by the farmers.

“Kailangan naming mag-produce ng halal na pagkain kasi kakaunti lang ang nag-produce ng halal na pagkain dito sa Pilipinas (We need to produce halal food because there are not many halal producers in the country),” he said.

He added that Muslim entrepreneurs have an “obligation” to introduce halal processes “from harvest to post-harvest to end-product.”

MS3 Agri-Ventures was established as a livelihood project for overseas Filipino workers (OFWs) like Mr. Santillan, who used to be employed in Qatar.

“Nagtayo kami ng (We set up the) livelihood project… as an investment of OFWs,” he said, noting that some partners are Catholics and from indigenous communities.

“Nagkakaisa kami dito para makatulong sa mga (We are united here in helping the) farmers,” he said.

In July, MS3 Agri-Ventures signed a memorandum of understanding (MoU) with a Malaysian company that will market its products.

“I signed an agreement there na sila ang magtitinda sa halal na produkto na gagawin namin sa Pilipinas (That they will sell the halal products that we produce here in the Philippines),” he said.

The MoU also paves the way for a planned joint venture agreement with the Malaysian firm processing the ingredients and the finished product carrying the MS3 brand.

He added that members of the Malaysia Chamber of Commerce have visited the company’s factory in Bunawan, Davao City and some investors have offered to assist in ensuring halal compliance. — Maya M. Padillo

HK artist offers free protest-themed tattoos

HONG KONG — A Hong Kong artist is offering free protest-themed tattoos to people who want to show their support for pro-democracy demonstrations in the Chinese territory.

The geometric tattoo combines an umbrella — the symbol of 2014 street protests — with the Bauhinia flower, the floral emblem of Hong Kong.

“The idea is the umbrella is protecting the flower and Hong Kong,” Zada Lam, 28, told Reuters at his Kowloon shop where 200 people have received the tattoo since the latest protests began in June.

The city is grappling with its biggest political crisis since its handover to Beijing in 1997 and Communist Party authorities have sent a clear warning that forceful intervention is possible to quell the violence.

Protests have seem fierce clashes between police and demonstrators since the protests began over a now-suspended extradition bill that would have allowed Hong Kong people to be sent to mainland China for trial.

One customer said the tattoo is a reminder of what protesters are fighting for.

“Just like everything that happened in Hong Kong recently, it is the same as the tattoo, which is difficult to be erased,” said the customer, who declined to be named. — Reuters

Julius Baer decides to keep Kairos after strategic review

ZURICH — Lender Julius Baer has decided to keep its Italian subsidiary Kairos after completing a strategic review and as the asset and wealth manager’s performance improves, Switzerland’s third-largest listed bank said on Friday.

Julius Baer had put Kairos under strategic review after it suffered outflows on the heels of poor fund performance in 2018. It said in July it was considering options including divesting the unit, forming a partnership or keeping it and trying to improve profitability.

“Our review has clearly shown that Julius Baer is the best owner for Kairos, which offers significant potential for us to build out our position in the attractive Italian wealth management market,” European head Yves Robert-Charrue said in a statement.

“After a difficult 2018, the performance of Kairos funds in the first half of 2019 has markedly improved.”

Italy’s Mediobanca was considering acquiring Kairos.

Baer now intends to more closely align Kairos’ wealth management business serving clients based in Italy with its own, including better access to the its products and services, the bank said.

“Over the coming months, these conclusions will be developed into a detailed implementation plan to realize the further growth potential of Kairos and additional revenue synergies,” it said.

Kairos’ assets under management had more than doubled to over €9 billion ($10.03 billion) since the start of the strategic partnership in June 2013, it noted. — Reuters

Philippine property stocks may rise after Duterte’s China visit

PHILIPPINE property stocks may rebound from a seventh straight weekly loss as President Rodrigo Duterte nears the end of his trip to China with no indication that he would ban online casinos that cater to Chinese gamblers.

Based on official statements from Mr. Duterte’s meeting with Chinese President Xi Jinping, a crackdown by the Philippines seems unlikely, according to David Leechiu, chief executive officer of Leechiu Property Consultants. He expects office demand from Philippine offshore gaming operators, or POGOs, to continue to grow and drive the nation’s property market.

“It doesn’t seem like we have something to worry about given what’s happened: the things that have been said and not said,” Mr. Leechiu said in an interview in Manila on Saturday. “Because there is no anti-POGO statement and no clear policies made, it looks like the industry will keep growing.”

Investors have dumped Philippine property stocks amid concern Mr. Duterte will impose a crackdown after China said it wants the Philippines to ban all forms of online gambling that service its citizens. The Philippine Stock Exchange Property index has dropped almost 10% in seven weeks on fears a ban will result from Mr. Duterte’s meeting with Mr. Xi, and hurt office demand and home sales.

Philippine property stocks escalate fall as China seeks online casino ban

“I think POGOs will continue to expand in the Philippines unless there is a clear indication that they will pull out,” Mr. Leechiu said. “This is good for the property sector and the overall economy.”

Mr. Leechiu sees online casinos overtaking providers of outsourced business services as Manila’s top source of office demand.

He said POGOs account for 1.06 million square meters of office space, or about 9% of the nation’s 12.74 million square meters of office space, and contribute $219 million in annual rental.

The online gambling industry spends about $641 million a year in home rentals to house its 440,000 workers, who are paid $8.3 billion in annual salaries, he said.

Should a ban materialize on POGOs serving China, the property sector will get hurt but won’t crash, Mr. Leechiu said. POGOs pay a security deposit equivalent to 12 to 24 months of rent, giving landlords a buffer should they pull out. The offices they lease are mostly located in prime areas which can be rented out to call centers and business process outsourcing companies, he said.

China accounts for as much as 70% of the Philippine offshore gaming sector, while the rest cater to other markets including Macau, Singapore, Malaysia, Japan and the US, he said.

“The POGO industry will buy some time for the property market,” Mr. Leechiu said. “If this will be switched off, we will get hurt. It will be painful but it won’t be a disaster. We will see a soft landing.” — Bloomberg

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