Subic Bay named top sports tourism destination

July 11, 2019 | 7:54 pm

SUBIC BAY, Central Luzon’s top tourist destination, added a feather in its cap with the recent awarding of the “Destination of the Year” by the Philippine Sports Tourism Awards (PSTA).

The second in a row, the Freeport has consistently hosted sports events over the years and has helped position the Philippines as a competitive global sports tourism destination.

“There’s a variety of sports events held in Subic almost every month, and that’s really a plus factor. I hope Subic will continue to keep up the momentum, and we look forward to the nomination again of Subic for this year,” says PSTA chairman Charles Lim.

He added that Subic bagged the award after judges saw the consistency with which prestigious sports events were held in the Freeport.

He also noted that sports tourism is the fastest-growing component of the travel and sports industry.

Meanwhile, Subic Bay Metropolitan Authority chairman and administrator Wilma Eisma said the latest award shows that Subic remains the country’s most-preferred venue by local and international sports organizers.

“The award speaks well of the natural beauty and the unspoiled environment of Subic amid continuous economic development. It means that Subic had successfully harnessed the synergy of sports and tourism to make it to No. 1 for two consecutive years,” she noted.

The SBMA chief also pointed out that Subic won the gold award for best sports tourism destination in the 2017 Sports Industries Awards and Conference Asia (SPIA Asia) held in Thailand, and brought home the bronze award for the same category last year.

This year, it has hosted prestigious tournaments such as National Age Group Triathlon, NTT ASTC Subic Bay International Triathlon, Alaska Ironkids, Century Tuna Ironman 70.3.

It is also home to the annual Subic Bay Around Verde Island Passage Race, which is part of the elite Asian Yachting Grand Prix Circuit, and the Chairman’s Cup Regatta, the biggest assembly of sailboats and aquasports recreation in Philippine waters.

Down the road, it will be the venue of the 43^rd National Milo Marathon, the Subic International Marathon (SIM), the National Duathlon Championships, the Black Arrow Express 5150 Triathlon/Sunrise Sprint, and the Trek 100 Challenge-Cycling race.

The Freeport will also play host to some of the sports in the 30th Southeast Asian Games in November, mostly sailing and watersports, where Filipino athletes are expected to dominate.

Eisma expressed optimism that Subic can win a three-peat of the award with the long list of sports tournaments it will have for this year.

The PSTA was organized in 2015 by the Cebu-based Selrahco Management and Consultancy Services, with the support of the Philippine Sports Commission, the Department of Tourism, and the Tourism Promotions Board.

Parity

July 11, 2019 | 7:53 pm

Even in the end, Kawhi Leonard kept everybody guessing. As the most coveted player in free agency, he took his time making a formal decision on where to land, never mind that his heart lay with the Clippers, and that, behind the scenes, he strove to ensure that he would wind up as their marquee superstar. And if the five days he kept all and sundry on #kawhiwatch weren’t enough, yesterday served to underscore his position as master of his fate. The contract he affixed his Hancock to was, indeed, for the maximum salary, but guaranteed only through the 2020-2021 season.

The length of Leonard’s deal effectively keeps all the bargaining chips on his side of the table, and not simply because it allows him to tack on another year based on his preference. Significantly, it coincides with the duration of the terms fellow All-Star Paul George agreed to with the Thunder last year. In other words, he can choose to stay or bolt for greener pastures after two seasons, and with or without his handpicked partner by his side. Perhaps more significantly, it’s also for the same period, and player-centric conditions, Lakers top dog LeBron James is signed to. Which, in a nutshell, means he can, when the time comes, opt to keep playing at Staples Center, but in purple and gold instead of red and blue.

Leonard’s camp doesn’t have a lot of fans for the way it seems to conduct its business, but it has clearly earned its keep. All the criticism notwithstanding, it has delivered on its promise: put its principal in prime position to rule the league in the here and now — and, no less importantly, in the there and then, when James, the most heralded name in pro hoops over the last decade, exits stage left. And it bears noting that he has largely stayed insulated from naysayers’ assessments. For all his maneuverings, he even got praise for resisting the intrinsic lure and allure of forming the most formidable Big Three in history.

True, Leonard’s decision to join the Clippers injects a level of parity not seen since the mid-2000s, when the Celtics hadn’t yet swung the fences for Kevin Garnett and Ray Allen, when the Lakers didn’t yet have Pau Gasol, when James hadn’t yet chosen to take his talents to South Beach, and when the Warriors didn’t yet add human “Get Out of Jail, Free” card Kevin Durant to an already-dynastic run. The aftermath of his free-agency foray figures to get as many as a third of the league harboring legitimate chances for the hardware. No clear-cut favorite, no apparent first among equals, no runaway choice for the first time in a long, long while.

Yet, if unpredictability is slated to become the main ingredient of the 2019-20 season, it isn’t because Leonard pushed for such. In fact, he angled to stack the odds in his — and, by extension, the Clippers’ — favor. And the upshot benefits the NBA because the acquisition of talent is a zero-sum exercise; a loss for the Lakers is a gain for everybody else. But for how long? And at what cost? The answers depend on predisposition, and are, therefore, subject to debate. Meanwhile, he’s being praised for having used the same blueprint that earned James opprobrium. Go figure.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Nation at a Glance — (07/12/19)

July 11, 2019 | 7:49 pm

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Gen Z’s potential and the opportunities ahead of them

July 11, 2019 | 9:42 am

BusinessWorld SparkUp’s Spark Series continues to explore the future of work as it recently held its 5th leg last July 5 at De La Salle University (DLSU) in Manila, where two industry experts shared insights to the students who gathered at the university’s William Shaw Auditorium.

Bianca Eleisse Eyales, an associate consultant at marketing consultancy firm Acumen Strategy Consultants, started the forum with sharing interesting findings from Acumen’s recent study on Generation Z (Gen Z), a distinct generation of people born between 1996 to 2014 who are approximately 6 to 22 years old.

Ms. Eyales noted that Gen Z grew up witnessing the significant rise of digital technology and social media. “During their lifetime, the world is no longer focused on building technology but rather on optimizing it for people,” she said.

Thus, Gen Z know only of a world that is fast, wireless, and highly connected, where digital media is fully integrated into their concept of being and consequently has become a fundamental aspect of their lives.

Given that context, Ms. Eyales described the Gen Z world as ultra-connected, hyper-speed, and big and expansive.

Gen Z’s ultra-connected world is described by their constant access to the Internet. As a result, it enables them to socialize simultaneously — even if they are alone — using multiple channels of interaction and new forms of expression such as emojis, memes, and graphic interchange format files (GIFs).

This steady connectivity has caused several problems. One is the rapid boredom Gen Zers get when they are not online. Another is the generational gap technology is causing in their personal and professional lives, coupled with a lapse in skills such as public speaking and communication skills.

As Gen Z view their world as hyper-speed, they want instant, fast, and easy access to everything, refusing to remain idle and waste time. They also demand immediate response and feedback.

Gen Z’s world is also big and expansive, having different worlds to interact with both physically and digitally. This makes their generation “hyper-empowered for learning”, finding that learning something new feels exciting.

Moreover, Ms. Eyales added that while the majority of Gen Zers are happy, they face challenges. Their hyper-speed and ultra-connected world exposes them to see the world’s various problems. Due to hyper-speed measures such as likes in posts or the ‘Seen’ in chats, they are bound to the experience of feeling ignored or not belonging. Gen Zers also sense the contrast between their world and their families’, since they feel their needs are not being met by their families.

Nonetheless, as they encounter these challenges, they approach life with a mature, hyper-empowered, and filtered mindset.

Their mature kind of mindset is expressed by their belief that enjoying life must come with a sense of responsibility.

As champions of change, they believe that amidst the bad that they see in the world, they can do something about it. Gen Zers want to go beyond unraveling issues by coming up with solutions to problems.

All these reflects in their choice of college and, eventually, their choice of career, wherein they don’t compromise their passion and interests merely for career’s sake.

Complementing this profound discussion on Gen Z is a talk on financial technology (fintech) and its application in future work, delivered by Rey Battung, Project Management manager of financial services company Wells Fargo in the Philippines.

Mr. Battung started with highlighting that any technology or innovation, such as fintech, started “with a specific need or pain point”. For him, fintech addresses those needs using processes such as Service Oriented Architecture (SOA), Business Intelligence, and Robotic Process Automation.

Later on, he pointed out that as technologies are replacing human jobs, such as those in fintech, “it’s up to you, the next generation, to figure out what you will contribute once you join the corporate world.” Linking this thought with the “champions of change” mindset revealed by the previous presentation, he encouraged the audience to figure out what human input they can bring anew.

Mr. Battung also shared the various career opportunities in fintech open for the upcoming workforce, both for IT and non-IT graduates to consider and take. These opportunities include software engineer, business analyst, project management, business continuity, and information security.

Furthermore, Mr. Battung advised the audience to educate and update themselves from the business and technology perspectives, tapping on the vast information they can absorb.

The project manager also advised the participants to fearlessly challenge the norm when it comes to taking opportunities to innovate, drawing from the corporate world thought of “continuous improvement” and debunking the thought of “If it ain’t broke, don’t fix it.”

“If you still have that thinking, you will not go far. You will be left behind,” Mr. Battung said.

He further encouraged the participants to try to leverage all the resources that they have which might help them in incubating their ideas and jumpstarting their careers.

The 5th leg of Spark Series 2019 at De La Salle University Manila was presented by BusinessWorld SparkUp, Energy Development Corporation, and Wells Fargo; together with Acumen Strategy Consultants and J. Legaspi Computer Graphics (JLCG); in partnership with De La Salle University Junior Entrepreneurs Marketing Association; with media partners Philippine Star and ONE News.

Fostering a flourishing port sector

July 11, 2019 | 9:00 am

Ports continue to serve as an important component of trade and transport in the country, constantly contributing to the progress of the Philippine economy. Behind this progress is the hard work the Philippine Ports Authority (PPA) has been doing as the country’s port authority for more than four decades now.

With a gradually burgeoning port industry in the 1970’s composed of almost 600 national and municipal ports and 200 private ports, PPA was formed to address the foreseen need to create a separate agency which will oversee and regulate the industry, a function that was then performed jointly by the Bureau of Customs and the former Bureau of Public Works. In 1974, the PPA was created under Presidential Decree (PD) No. 505.

“Realizing that the establishment and operation of port authorities in other countries led to improved port operations, it was felt that the same benefits could be derived with a national port authority to administer and manage the country’s ports,” wrote PPA in its history published on its Web site.

Philippine Ports Authority (Sual, Pangasinan) seashore and port and pier beside the Sual Port — commons.wikimedia.org

The following year, PD No. 857 broadened the agency’s scope and functions “to facilitate the implementation of an integrated program for the planning, development, financing, operation, and maintenance of ports or port districts for the entire country.”

The agency’s charter was further enhanced in 1978 by Executive Order No. 513, granting PPA police authority within the ports it administers and providing it strengthened ties with the private sector through the formulation of the National Ports Advisory Council (NPAC).

As it marks its 45^th anniversary this year, the PPA continues to reap significant outcomes in fulfilling its role of managing and advancing “a rationalized national port system in support of trade and national development”.

According to a statement released by the PPA last May, the agency earned a “record-breaking” P9.41 billion in dividends and taxes to the national government for 2018.

The PPA remitted P3.51 billion in dividends. It is currently the highest dividend record in its history as it surpassed 2017’s P3.1 billion dividend, which was then the highest recorded dividend in the last 30 years.

In terms of taxes, the PPA paid P5.9 billion, which is more than 50% of the total taxes it paid in the last 10 years.

Total revenues, meanwhile, exceeded 2018’s target by 8.13%, amounting to P17.49 billion. It is also higher by 14% than 2017’s total revenues.

PPA General Manager Jay Daniel R. Santiago finds that PPA’s robust and stable performance will enable them to continue sustaining high-standard port services.

Fish Port Complex (Philippine Fisheries Development Authority, Sual, Pangasinan) — commons.wikimedia.org

“The streamlining of port processes coupled with strategic port development and modernization have greatly contributed to this strong performance as we aim for our operations to be on par with global standards,” Mr. Santiago said.

Port activities continue to be vibrant, with remarkable increases in PPA’s port statistics in 2018 found on its web site. Total ship calls totaled 468,439, an increase of 350.8% from 2017. Cargo throughput amounted to 260.95 million metric tons, higher by 368.3%; while container traffic marked 7.57 million twenty-food equivalent units, increasing by 370.4%. Passenger traffic amounted to 76.8 million, higher by 381.4%; and RoRo (roll-on, roll-off) traffic garnered 7 million, an increase of 420%.

In terms of projects, PPA has facilitated 168 commercial port projects from 2016 until the present, according to a statement by the Department of Transportation (DoTr), under which PPA is attached.

One of PPA’s projects that has recently materialized is the passenger terminal building (PTB) of the Port of Cagayan de Oro. According to a report from the Philippine News Agency, it is set to be inaugurated on July 15.

This new facility, which was completed last April, is presented as the biggest PTB in the country, with the capacity of accommodating 3,000 passengers daily and a total floor area of 5,597 square meters.

DoTr Secretary Arthur P. Tugade commended the agency for “the immense work they have done in building and rehabilitating commercial seaports.”

“With the ease of movement of people and goods, economic growth is not far behind. This is the power of transport infrastructure. It can truly lead to a better, more comfortable life for Filipinos,” he added.

Mr. Santiago, meanwhile, said that the PPA is just in the middle of their journey as it aims to finish more projects in the years to come. — Adrian Paul B. Conoza

Philippine trade year-on-year performance (May 2019)

July 11, 2019 | 12:33 am

THE COUNTRY’s trade-in-goods deficit narrowed in May as a slight export growth steadied while imports contracted, the Philippine Statistics Authority (PSA) reported on Wednesday. Read the full story.

Trade-in-goods gap narrows in May

July 11, 2019 | 12:33 am

THE COUNTRY’s trade-in-goods deficit narrowed in May as a slight export growth steadied while imports contracted, the Philippine Statistics Authority (PSA) reported on Wednesday.

Preliminary PSA data showed May’s trade deficit at $3.275 billion, compared to a $3.88-billion gap in the same month last year.

Merchandise export sales grew by a percent to $6.155 billion in May, matching the pace recorded in April albeit lower than the 1.7% growth in May 2018.

On the other hand, import payments contracted 5.4% year on year to $9.43 billion during the month, worsening from a 1.9% decline observed in April. This also marked a reversal from the 17.4% growth in May 2018.

The import decline was the biggest since the 5.8% contraction recorded in April 2015.

Meanwhile, the country’s total external trade in goods — the sum of export and import goods — went down three percent to $15.584 billion in May.

To date, merchandise exports were down 1.3% to $28.106 billion against the six-percent growth target of the Development Budget Coordination Committee (DBCC) for full-year 2019.

On the other hand, payment for import of goods grew one percent to $44.613 billion on a cumulative basis against the DBCC’s nine-percent projection for 2019.

That brought the year-to-date trade balance to a $16.508-billion deficit, bigger than the $15.682-billion shortfall in 2018’s comparable five months.

In an e-mail, ING Bank N.V. Manila senior economist Nicholas Antonio T. Mapa ascribed the narrowing trade gap to “slower demand for capital goods, raw materials and energy” as well as to growth of exports, particularly electronics.

“Given the heft of electronics in the entire export portfolio, the decent performance in this sector carried overall outbound shipment growth,” Mr. Mapa said.

ELECTRONICS SALES BUOY TOTAL
Exports of manufactured goods, which contributed 82.6% to total export sales in May, dipped 0.4% to $5.083 billion from $5.102 billion in the same month last year.

The decline in manufactured goods was partially capped by sales in electronic products as these grew 6.2% year-on-year to $3.45 billion in May. Electronics accounted for 56.05% of total overseas sales of goods and 68% of manufactured goods.

Year-to-date, electronics sales steadied at $15.396 billion from $15.401 billion in 2018’s first five months.

Also dragging exports were petroleum products, which decreased by 76.6% to $2.924 million from $12.493 million previously.

Agro-based products, which accounted for 7.4% of total exports, saw a 9.6% growth to $453.934 million in May from last year’s $414.337 million. Exports of mineral and forest products likewise increased by 10.5% and 44.2%, respectively, to $458.155 million and $32.340 million.

On the import side, payments for mineral fuels, lubricant and related materials dropped 17.2% to $1.183 billion from last year’s $1.428 billion. This was followed by a 10.7% decline in imports of raw materials and intermediate goods to $3.569 billion from $3.996 billion and a largely flat decline in capital goods at $2.975 billion.

Purchases of consumer goods abroad were up 5.9% to $1.613 billion in May from $1.523 billion last year.

ING’s Mr. Mapa attributed the increase in consumer goods imports to “staunch revitalized household consumption” amid an environment of easing inflation.

“The ill effects of the delay in the passage of the 2019 budget coupled with still elevated borrowing costs hurt demand for both capital goods and raw materials… With government and private sector’s plans for expansion on hold, capital goods and raw materials dragged overall imports lower,” he said in a separate note to reporters.

Union Bank of the Philippines, Inc. (UnionBank) chief economist Ruben Carlo O. Asuncion shared this assessment, saying May’s import decline was “not surprising.”

“UnionBank’s Economic Research Unit (ERU) expected imports to be softer as a direct result of lower government spending from January to April due to the delayed passage of the 2019 budget,” he said in an e-mail.

To recall, the government operated on a reenacted 2018 budget from the start of the year until April 15, when President Rodrigo R. Duterte signed the latest general appropriations into law, but vetoed P95.3 billion in appropriations, slashing this year’s national budget to about P3.662 trillion. Running on a reenacted budget plus a 45-day ban on public works leading to the May 13 midterm elections had left new projects unfunded in most of the first semester.

Meanwhile, Mr. Asuncion attributed the rebound in exports to “pocket opportunities” brought by an improving perception on the prospects of global economic growth.

Mr. Asuncion expects the country’s trade performance to improve in the coming months.

“ERU expects growth in imports to recover in the second half of 2019 as the government starts to play catch-up on its spending on infrastructure and other government expenditures,” Mr. Asuncion said.

“With this, exports are anticipated to continue to incrementally improve as the trade spat between the US and China moves to more positive and improving direction.”

For ING’s Mr. Mapa, “[w]e could see capital goods and raw materials recover in [the second half] on BSP (Bangko Sentral ng Pilipinas) rate cuts and the budget passage, but perhaps we may not see the blow up in the trade deficit as forecasted by some analysts.”

“The peso could see some weakening pressure on this account, but given that the trade gap may not balloon, the depreciation pressure may be less pronounced,” he added.

In a statement, the National Economic and Development Authority (NEDA) expects merchandise trade to be “better in the second half of 2019” given the country’s economic outlook remaining positive for the year.

“Global economic outlook for 2019 remains subdued as policy uncertainties and some geopolitical tensions continue to pose risks to many economies,” NEDA quoted its director-general, Socioeconomic Planning Secretary Ernesto M. Pernia, as saying in the statement.

“But amid these external developments, the country’s economic outlook remains upbeat.”

The United States was the Philippines’ top export market in May with a 17.6% share at $1.081 billion followed by China’s 14.6% ($896.95 million) and Japan’s 14% ($862.15 million) market shares.

The same month saw China as the Philippines’ top source of imports with a 22.8% share at $2.145 billion followed by Japan’s 8.7% ($822.32 million) and South Korea’s eight percent ($750.06 million). — Marissa Mae M. Ramos

FDI net inflows drop for second consecutive month in April — BSP

July 11, 2019 | 12:32 am

FOREIGN direct investment (FDI) inflows fell year-on-year on a net basis for the second straight month in April — which nevertheless posted the biggest net inflow in nearly a year — due to a significant cut in equity inflows that offset increases in reinvested earnings and intercompany lending, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

April saw $961 million in FDI net inflows that was the biggest amount since May 2018’s seven-month-high $1.625 billion, even as the latest tally was down 11.8% from April 2018’s six-month-high $1.089 billion.

An 85.5% drop in net equity other than reinvested earnings to $39 million in April from $272 million a year ago weighed on the overall picture, with a 49.8% fall in placements to $144 million from the year-ago $287 million adding to the negative impact of a sevenfold hike in withdrawals to $104 million from just $15 million the past year.

The BSP said equity capital placements in April came largely from Thailand, the United States, Singapore, Hong Kong and Japan and went mainly to the construction; manufacturing; real estate; financial and insurance; as well as electricity, gas, steam and air-conditioning supply industries.

At the same time, April saw a 12.6% year-on-year increase in foreign parents’ investment in Philippine affiliates’ debt instruments to $830 million from $737 million, while reinvested earnings grew 14% annually to $92 million from $80 million.

YEAR-TO-DATE FLOWS
April brought year-to-date net inflows to $2.903 billion, 14% less than the $3.377 billion recorded in 2018’s first four months.

This year’s first four months saw equity other than reinvested earnings drop 71.1% annually to $335 million from $1.159 billion, as withdrawals grew threefold to $377 million from $124 million while placements fell by 44.5% to $712 million from $1.283 billion.

Equity capital placements in the first four months came mostly from Japan, the United States, China, Singapore and South Korea and went primarily to manufacturing, real estate, financial and insurance, transportation and storage, as well as administrative and support service industries.

Intercompany lending grew 16.32% to $2.242 billion as of April from $1.927 in 2018’s first four months, while reinvested earnings rose by 12.07% to $326 million from $291 million.

Sought for comment, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said FDI net inflows’ “decline may have been due to the negative investment sentiment brought by continuing US-PRC (People’s Republic of China) trade tiff during the period covered.”

“In addition, the government’s fiscal reform proposal or the move to rationalize investment incentives for foreign companies is hanging like a dark uncertain cloud over plans and potentials to invest in the Philippines.”

For Nicholas Antonio T. Mapa, senior economist at the ING Bank Manila, the increase in reinvested earnings and investment in debt instruments showed that “firms have chosen to stay and plow back their earnings to already profitable ventures in the Philippines.”

At the same time, “the pullback in… fresh FDI may be tagged to some firms awaiting clarity on the election and maybe on possible legislation after the election.”

Robert Dan J. Roces, Security Bank Treasury Group assistant vice-president and economist, said revived global demand from improved Sino-US trade ties and an economic growth push from increased government spending after the four-month delay in national budget enactment should put “FDIs… on the upside in the second half of the year.”

Last year saw $9.802-billion FDI net inflows — below the central bank’s $10.4-billion projection for 2018 — that was 14.05% less than 2017’s record-high $10.256 billion. As of March, the central bank had kept its projection of $10.2-billion FDI net inflows for this year, an estimate first pencilled in November 2018. — Reicelene Joy N. Ignacio

BoI OK’s 27% more investment pledges

July 11, 2019 | 12:31 am

THE BOARD of Investments (BoI) approved 27.4% more committed investments last semester from a year ago, fueled especially by power projects, the agency said in a press release on Wednesday.

BoI, which accounts for bulk of such pledges among the seven major state investment promotion agencies tracked by the Philippine Statistics Authority, said it approved P304.4 billion worth of such proposed projects last semester, compared toP238 billion in 2018’s first half.

Investment pledges are different from foreign direct investments tracked by the central bank which represent actual capital flows.

Domestic investments made up more than three-fourths of the total value of projects approved by BoI at P235.6 billion, up five percent from P223 billion a year ago, while foreign pledges grew nearly fivefold to P69 billion from P14 billion.

Singapore remained the biggest source of foreign pledges with P35.4 billion, followed by the Netherlands with P9.2 billion, Thailand’s P8.5 billion, Japan’s P5.8 billion and the United States’ P2.4 billion.

Power projects accounted for bulk of BoI-approved committed investments last semester at P192.4 billion, 77.8% more than the year-ago P108.2 billion.

Calabarzon, just south of Metro Manila, continued to be the number-one investment location with P201.2 billion, followed by Central Luzon (P27.7 billion), Metro Manila (P11.3 billion), Cagayan Valley (P8.7 billion) and Central Visayas (P7.7 billion).

Traffic crisis measure filed anew in the Senate

July 11, 2019 | 12:30 am

A MEASURE that will give President Rodrigo R. Duterte “emergency powers” to address worsening traffic and congestion in key cities for up to two years has been filed anew in the Senate.

Senator Francis N. Tolentino — a former chairman of the Metropolitan Manila Development Authority — has filed Senate Bill No. 213, or the proposed “Special Emergency Powers Act,” to authorize Mr. Duterte, through a traffic crisis czar, to declare “a national emergency” amid worsening traffic and congestion in Metro Manila, Metro Cebu, Davao City and Cagayan de Oro among other highly urbanized cities.

‘A NATIONAL EMERGENCY’
“The traffic congestion crisis must be considered a national emergency due to its detrimental effects on life, economy and productivity,” Mr. Tolentino said in the bill’s explanatory note.

Mr. Tolentino consulted Transportation Secretary Arthur P. Tugade on the matter on Wednesday.

“Na-file na natin. ‘Yung dating bill, sa pakikipag-ugnayan sa kagalang galang na secretary, nalagyan natin ng ibang detalye na wala dati (We have filed the bill. Upon consultation with the honorable secretary, we have added details that were not in the previous measure),” Mr. Tolentino told reporters following his meeting with Mr. Tugade.

Mr. Tolentino said that the new provisions he introduced in his version included a push for alternative work arrangements like flexible work hours even in government offices in hopes of reducing the need to use streets at peak hours.

The proposed law is among the 28 legislative priorities pitched by the Legislative-Executive Development Advisory Council to the 17^th Congress that ended last month. The House of Representatives was able to pass its proposed “Traffic Crisis Act of 2017. Makiisa. Makisama. Magkaisa.” on third reading, while its counterpart in the Senate failed to get second- and third-reading approval by the June 3 adjournment.

If enacted, the bill will designate the Transportation secretary as traffic crisis czar for up to two years. Among others, he will be authorized to engage in direct contracting, repeat order and other alternative modes of procurement for priority projects during that period.

Moreover, the government will have authority to take over the operation of public utility vehicles — even as franchises will remain with owners — and open private roads for public use while the law is in force.

Local governments, for their part, may implement, construct, repair, restore, rehabilitate, improve or maintain land-based transportation infrastructure projects approved by the traffic czar under this law. — Charmaine A. Tadalan

POGOs, BPOs to fight for limited office space in Metro Manila

July 11, 2019 | 12:10 am

THE Philippine Offshore Gaming Operators (POGOs) industry is expected to unseat the Information Technology and Business Process Management (IT-BPM) sector as the top office space occupier in Metro Manila by the end of the year, according to Leechiu Property Consultants (LPC).

In a press briefing on Wednesday, Leechiu President and Chief Executive Officer David Leechiu said that the POGO industry is projected to take up 450,000 square meters (sq.m.) of office space in Metro Manila by the end of 2019.

This will be driven by faster site selection process and the effect of Administrative Order No. 18, which noted that applications for office space within Metro Manila with tax incentives for BPOs will no longer be considered.

“We think that the POGO industry will overtake the BPO (Business Process Outsourcing) sector. For the first time in 19 years, the BPO sector is going to be number two,” Mr. Leechiu said.

In the first half of 2019, the IT-BPM still led the demand for office space in Metro Manila at 244,000 sq.m., with POGO take-up at 242,000 sq.m.

“Even with this moratorium in Manila, everyone now is scrambling to fight to lease the last 150,000 sq.m. of PEZA space in the market and right now, especially in Makati, they are competing now… for the same space,” Mr. Leechiu said, identifying the building as Century Diamond Tower owned by Century Properties Group, Inc.

At the current pace that the industry is growing, Mr. Leechiu said demand from the POGO industry is seen to grow at a faster pace compared to BPOs.

POGOs continue to prefer the Bay Area, with 139,000 sq.m. of office space taken up in the first half. These companies also took up office space in Makati City (46,000 sq.m.), Quezon City (40,000 sq.m.), Ortigas (9,000 sq.m.) and Alabang (8,000 sq.m.).

Mr. Leechiu said once supply in the Bay Area is depleted, POGOs are seen to move to Quezon City, competing with IT-BPM industry.

Outside Metro Manila, POGOs have expanded to Laguna, occupying 46,000 sq.m. of space; 37,000 sq.m. in Cebu; 34,000 sq.m. in Clark, Pampanga; and 13,000 sq.m. in Cavite. Total employee count is currently at 354,000, bulk of which are Mainland Chinese.

The increase in Chinese workers has also fueled the leasing demand for residential condominiums in Metro Manila.

““Rental rates have seen an increase of up to 80% from three years ago in the Bay area. Prices of Studio units have increased from P18,000 in 2015 to P32,000 per unit per month in 1H 2019. One bedroom units have gone from P25,000 back in 2015 to P55,000 per unit per month while a two bedroom unit’s price rose from P55,000 to P90,000 per unit per month,” the LPC report stated.

Phillip Anonuevo, LPC executive director for commercial leasing, said they expect the POGO industry to add around 50,000 employees every year — “that is probably 10,000 to 15,000 units of apartments.”

On the POGOs’ growth forecast, Mr. Leechiu said that it will depend on government policies on regulating the industry.

“Depends how fast we allow them to grow here. The problem is not them, the problem is us. We’re the ones slowing them down because we need to regulate, we need to understand what it means, we need to see who they are, who need to know them, but the moment we have this familiarity with them, we will embrace them,” he said. — Vincent Mariel P. Galang

SMPC seeks lifting of cease order on coal trading

July 11, 2019 | 12:09 am

SEMIRARA Mining and Power Corp. (SMPC) said on Wednesday that it is in talks with the Energy department for the lifting of the cease and desist order on its coal trading activities after issues arose when a buyer failed to produce the required accreditation.

“Kindly be advised that today and in order not to interrupt SMPC’s ongoing operation and renege on its contractual commitments to its coal buyers, SMPC have requested reconsideration of the DOE Order and that the implementation thereof be held in abeyance pending resolution of the alleged violation, and allow SMPC to proceed and continue its current trading activities and operations,” the Consunji-led listed company told the stock exchange.

This was in reply to the stock exchange’s query on July 9, 2019 relating to the letter of the Department of Energy (DoE) dated July 4, 2019.

It said the DoE letter reminded the company about a department order dated June 4, 2019 citing a violation of Department Circular No. DC2012-05-0006 or Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users.

SMPC was directed by the DoE to submit its verified answer allegedly for illegal coal trading operation in Pulupandan Port, Pulupandan, Negros Occidental within 30 days from receipt of the order or until July 7, 2019.

It was also ordered to cease and desist its coal trading activities and operations until further notice by the DoE.

The company narrated the background of the case, which started on May 23, 2019 with the supply of Semirara coal to a buyer. The trial shipment of 4,768.73 metric tons (MT) was aimed at tapping additional market with representation on the part of the buyer that it has submitted and applied for a coal accreditation certificate with the DoE on April 5, 2019.

Under the rules, the DoE will issue the certificate of accreditation and/or registration or reject the application within 15 working days from receipt.

“Unfortunately, on shipment date, the buyer was unable to submit the said accreditation as it was still pending” with the DoE, SMPC said. “Thereafter, SMPC discontinued its supply and any trading with said buyer.”

On July 5, 2019, SMPC said it had submitted its verified answer to the DoE with a prayer for the immediate lifting of the cease and desist order/suspension and for the non-imposition of any administrative fine.

It added that an ongoing discussion with the DoE seeks to have the matter resolved immediately.

On Wednesday, shares in SMPC closed lower by 1.08% at P23 each. — Victor V. Saulon

1...10,74810,74910,750...14,230 Page 10,749 of 14,230