BUSINESS for manufacturers in the country improved just slightly in June, as a boost from “a solid rate of output expansion” was capped by “a softer increase in total new orders and the fastest drop in export sales” in the country’s three-and-a-half-year survey series, according to the latest Philippine monthly tracking IHS Markit conducts for Nikkei, Inc.
The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) edged up to 51.3 in June from 51.2 in March — marking a three-month high and the second straight month of increase coming from five consecutive months of contraction — although it was still lower than the year-ago’s 52.9.
The manufacturing PMI consists of five sub-indices, with new orders having the heaviest weight at 30%, followed by output with 25%, employment with 20%, suppliers’ delivery times with 15% and stocks of purchases with 10%. The 50 mark separates readings above it that signal expansion from the preceding month from those below it that denote contraction.
A news release summarizing survey results noted that “employment trends remained subdued, while firms continued to build stocks to avoid shortages” and “[s]entiment about the future… dipped to the second-lowest recorded by the series to-date.”
Noting that “Filipino manufacturers were facing a weakening growth environment in June”, IHS Markit Economist David Owen said the latest survey “suggests that there will be less incentive to raise output in the months ahead, unless firms see a strong inflow of new orders.”
“Many companies may switch to using up their inventories, in which case activity could dry up,” Mr. Owen said, adding that they “also face notable labor market problems as resignations were once again mentioned by a number of panelists.”
June results made the Philippines the third best among the seven members of the Association of Southeast Asian Nations (ASEAN) tracked by the survey, up from fourth place in April and May. The Philippines topped the region in January, but slid to second and then to third place in February and March, respectively.
Last month, the Philippines fell behind Myanmar — which has topped the region since February — which recorded a 53 PMI, followed by Vietnam — second since March — which posted 52.5. The Philippines’ 51.3 reading was better than ASEAN’s 49.7 in June that was down from 50.6 in May, marking the first regional slowdown in four months.
Sought for comment, Robert Dan J. Roces, Security Bank Corp. Treasury Group’s assistant vice-president and economist, said, “As PMI continues to expand, we see sustained production growth in the near term as local consumption is buoyed by manageable inflation levels.”
“We also hope that the modest recovery in April of the export sector is indicative of better things to come as new export orders may have also grown with improved sales from overseas, despite the US-China trade war.”
Michael L. Ricafort, head of Rizal Commercial Banking Corp. (RCBC) research division, said that the June index may “reflect slower growth in banking loans in recent months as some manufacturers wait for local interest rates to go down further before they become more aggressive in their borrowings to finance new manufacturing facilities and expansion projects amid the declining trend in both inflation and interest rates in the recent months.” — Reicelene J. N. Ignacio
PRESIDENT Rodrigo R. Duterte has approved the government’s new export development plan, short of a year after it was submitted to his office by the Cabinet Economic Development Cluster, providing a road map for improved performance of both service and merchandise exports at a time of challenging global demand conditions.
Malacañan Palace on Monday released Memorandum Circular No. 62, dated June 26, on Mr. Duterte’s approval of the Philippine Export Development Plan 2018-2022 and which requires agencies concerned to submit within 60 days of the circular’s effectivity to the Export Development Council (ExDC) and the Office of the President an inventory of relevant policies, programs and plans. “These agencies shall implement such policies, programs and action plans to boost export growth and ensure the free flow of goods…” the circular read, adding that the ExDC will conduct biannual review of the PEDP 2018-2022.
The new export development plan aligns more closely to the larger Philippine Development Plan that set the Duterte administration’s six-year socioeconomic development track.
TARGETS
Endorsed for Mr. Duterte’s approval on July 20 last year, the PEDP 2018-2022 targets total export revenues — consisting of goods and services — to reach $122-130.8 billion by 2022, when he ends his six-year term, from $74 billion in 2016.
That target entails a compound annual growth rate of 8.89-9.96%.
Export of goods are targeted to post a 6.11-6.46% CAGR to $61-62.2 billion in 2022 from $42.7 billion in 2016, while services are projected to post an 11.78-13.99% CAGR to $61-68.6 billion from $31.2 billion in 2016.
HISTORICAL GROWTH RATES
Those targets compare with actual total export growth rates of 8.13% in 2006-2012, 6.17% in 2012-2014 and -0.88 in 2014-2016, taking 2006-2016 growth to 5.88%.
That overall slowdown is reflected in the performance of merchandise exports in the same periods (7.1% in 2006-2012, 3.64% in 2012-2014 and -7.39% in 2014-216, taking 2006-2016 growth to 3.35%) as well as of services (10.17% in 2006-2012, 11.69% in 2012-2014 and 10.73% in 2014-2016, taking 2006-2016 growth to 10.95%).
Merchandise export sales dropped 1.8% to $67.488 billion last year from $68.713 billion in 2017, which had seen an increase of about a tenth, coming from a 2.42% drop in 2016. The four months to April saw foreign sales of Philippine goods fall by 2.1% to $21.921 billion, as electronic products which accounted for more than half of total merchandise shipments slipped by 0.6% to $11.948 billion.
Service exports, on the other hand, grew, but at a slower 8.9% pace last year, compared to 15.1% in 2017 and 15.3% in 2016.
THREE STRATEGIES
The government has adopted three strategies to achieve these targets.
The first strategy is to improve the overall climate for export development by removing regulatory impediments, enhancing trade facilitation, and fostering supply chain linkages.
Second is to exploit existing and prospective opportunities from trading arrangements, while the third involves development of comprehensive packages to promote select products and services.
Based on historical experience, the government identified three general product categories “with potentially wider spread and impact due to comparative advantages or in meeting global challenges”, namely: electronics; processed food, vegetables and beverages; and information technology.
“This does not mean three homogeneous products or services since obviously each one can be further broken down to many sub-products and related services,” the PEDP explained.
That focus compares to 10 product and service categories under the previous PEDP 2015-2017, which focused on diversifying markets and products, identifying and developing export capabilities where global market demand is growing fast, addressing bottlenecks that undermine export competitiveness as well as developing the potentials of goods and services where the Philippines could be competitive but have yet to attain comparative advantage.
“The different approaches followed by PEDP 2015-17 and PEDP 2018-22 are mutually reinforcing,” according to the new plan, explaining that “PEDP 2018-22 takes off from the analytical foundation of PEDP 2015-17 which remains valid for investigating the structural reasons for the weak performance of Philippine exports of goods and services.”
FINANCE SECRETARY Carlos G. Dominguez III reached out to lawmakers of the incoming 18th Congress on Monday, downplaying — in a forum to inform the public on government achievements midway into President Rodrigo R. Duterte’s six-year term — risks from supporting tax reforms.
Trade Secretary Ramon T. Lopez and Socioeconomic Planning Secretary Ernesto M. Pernia, for their part, asked the new Congress to focus on measures that will further open the country to foreign investments.
Mr. Dominguez sought to downplay the conventional wisdom that support for tax laws translates to fewer votes come election day. Lawmakers have been reluctant in sponsoring or supporting tax measures, drawing from the experience of current Senate President Pro Tempore Ralph G. Recto, who lost a 2007 senatorial bid after pushing for the increase in value added tax rate to 12% from 10%.
Saying that the Executive’s “confidence level is very high” when it comes to approval of future tax reforms — especially after the first three went through the eye of a needle since late 2016 in the recently concluded 17th Congress, Mr. Dominguez said in the 2019 Pre-State of the Nation Address Economic and Infrastructure Forum at the Philippine International Convention Center in Pasay City on Monday: “I’m very confident that… lessons in this last election, where no one who supported tax reform lost, will resonate in the minds of legislators.”
Mr. Dominguez cited the cases of Senator Juan Edgardo M. Angara, who placed fifth in the May 13 senatorial race and re-elected Albay 2nd district Rep. Jose Maria Clemente “Joey” S. Salceda, despite their sponsorship of Republic Act No. 10963, which cut personal income tax rates and increased or added levies on several goods and services.
“The message from the electorate is that if the tax reform is fair — if the money is not stolen and is used for their benefit, in infrastructure and education — they will win,” he said.
Also enacted was RA 11213, which grants estate tax amnesty and amnesty on delinquent accounts unpaid after being given final assessment; while the proposed gradual increase in excise tax on tobacco products to P60 per pack by 2023 from P35 currently awaits President Rodrigo R. Duterte’s signature.
Remaining tax reforms include measures to reduce the corporate income tax rate gradually to 20% by 2029 from 30% currently which is the highest in Asia, to streamline fiscal incentives by removing redundant ones and making perks performance-based and time-bound, to simplify taxes on investment instruments, to centralize real property valuation and assessment, as well as to increase government share from mining revenues and excise taxes imposed on alcohol products.
Messrs. Lopez and Pernia pushed removal of restrictions on foreign investments, such as amendments to the 82-year-old Commonwealth Act No. 146, or the Public Service Act; RA 7042, or the Foreign Investments Act of 1991; and RA 8762 or the Retail Trade Liberalization Act of 2000.
“Continuing reforms — … [on]the Public Service Act, the Retail Trade Law — will open up many more sectors; the review of… the Foreign Investment Negative List (FINL) to shorten the list… will again encourage and entice more investments in the broader range of industries that will now be open to greater foreign equity participation,” Mr. Lopez said.
The FINL outlines industries and activities reserved for Filipinos and those that are open to foreign investors in limited degrees.
Mr. Pernia pushed for the same measures, noting that the Philippines is the “most restrictive” Southeast Asian country in terms of entry of foreign investors and that even socialist Vietnam is more open to such capital. “Here in the Philippines, there are so many areas where foreign direct investment is only partially open to foreigners; so the legislature really should pass many of these bills, such as [amendments to] the Foreign Investment Act, the Retail Trade Act, Public Service Act, and with those three acts passed, liberalizing the economy, we could really expect much more foreign direct investments,” he said.
University of Santo Tomas political science professor Marlon M. Villarin said via text: “I think tax reform will continue to have… support in both houses… in the 18th Congress. We expect to have a super majority that will surely manifest legislative support for Pres. Duterte’s ‘Build Build Build’ program, where central to its realization are tax reform measures that will defray govt expenditures.”
THE DEPARTMENT of Public Works and Highways (DPWH) said a significant easing of traffic along Epifanio Delos Santos Avenue (EDSA) can be expected by the end of the year as it anticipates completion of several road projects that should help reduce significantly the volume of cars on Metro Manila’s main thoroughfare.
Public Works and Highways Secretary Mark A. Villar said at the 2019 Pre-SONA Economic and Infrastructure Forum in Pasay City on Monday that road projects now under way are expected to take out about 300,000 vehicles from EDSA each day.
“Ang pangako ni Presidente ay tatapusin niya ang traffic sa EDSA (The President has promised to put an end to EDSA traffic)… In order for us to do that, we computed: we need to take out 250,000-300,000 cars from EDSA daily in order to revert it back to acceptable level of traffic,” he said.
“The (Metro Manila Skyway Stage 3), once it’s completed, will reduce the traffic count by 100,000. When we finish the (North Luzon Expressway-South Luzon Expressway Connector Road), that is likely to reduce at least 50,000. When we finish the (Southeast Metro Manila Expressway C6), we will reduce another minimum of 50,000. When we build the bridges across Pasig, (the Santa Monica-Lawton Bridge), that will reduce another 50,000… When all these are finished, we would be able to bring back EDSA to its former state which is acceptable traffic.”
Asked how soon motorists could expect the reduction of traffic along EDSA, Mr. Villar replied: “We’ll see major improvements as early as late this year, and then it will continue next year up to the point that we finish the other projects.”
“Definitely before the end of the term of the President, malaki ang improvement sa traffic, lalo na sa Metro Manila (there will be significant improvement in traffic, especially in Metro Manila),” he added.
Data from the Metro Manila Development Authority (MMDA) show about 385,000 vehicles use EDSA every day at any given hour, against its capacity of 240,000-250,000 vehicles a day.
Mr. Villar said the partial operations of new roads within the year — the 18.68-kilometer Skyway Stage 3 that will connect Gil Puyat Ave. in Makati City to the Balintawak area in Quezon City; the 7.7 km C5 South Link that will connect R-1 Expressway to C5; and the 2.6 km R-10 exit ramp of North Luzon Expressway Harbor Link Segment 10 that will connect C3’s stretch in Caloocan City to the R-10 segment in Navotas City — should help decongest EDSA.
Meanwhile, the DPWH issued an updated list of 10 public-private partnership (PPP) projects as of June in a newspaper bulletin yesterday. These are the Central Luzon Link Expressway; Quezon-Bicol Expressway; Davao-Digos Expressway; North Luzon Expressway East, Phase II; Metro Cebu Expressway operation and maintenance (O&M); Davao Bypass O&M; Mindoro-Batangas Super Bridge; Delpan-Pasig-Marikina Expressway; Batangas City-Bauan, Batangas Toll Road Project and Pacific Eastern Seaboard Expressway.
Mr. Villar said the DPWH has completed its feasibility study for the 220 km Quezon-Bicol Expressway that will link Lucena and Camarines Sur. The cost of the project will be determined by the Investment Coordination Committee (ICC) of the National Economic and Development Authority (NEDA). “The ICC requisite documents were submitted to NEDA for review and approval,” Mr. Villar said, saying that once this road is completed, “travel time between Tayabas, Quezon and San Fernando, Camarines Sur will be reduced by 2 hours.”
ALLIANCE Global Group, Inc. is allocating a capex of P410 billion for 2020 to 2024.
ALLIANCE Global Group, Inc. (AGI) plans to spend P410 billion in capital expenditures (capex) over the next five years to sustain the expansion of its property, liquor, gaming, restaurant, and infrastructure businesses.
In a statement Monday, the holding firm of tycoon Andrew L. Tan said the budget for 2020 until 2024 is higher than the P377 billion it allocated from 2015 to 2019. This is also almost double the P218 billion it spent from 2010 to 2014, the same time it expanded internationally.
“Our five-year capital spending program signals our ongoing thrust to pursue an aggressive but organic growth strategy for our various businesses. It is our intention to continue to reinvest in these businesses to sustain our growth pace,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.
Listed property unit Megaworld Corp. cornered 73% of the spending, as the firm embarks on the further development of townships across the country. Its townships feature a mix of residential, office, lifestyle malls, and hotel projects.
Megaworld earlier said its capex for the 2020-2024 period is at P300 billion, 35% of which will be used for future land acquisitions. By 2020, the company targets to add 2,000 hectares of land to its existing holdings of about 4,700 hectares.
About 15% of the budget will go to Travellers International Hotel Group, Inc. (TIHGI), the owner and operator of Resorts World Manila. This will mainly be used for the development of Westside City Resorts World, its second integrated resort and casino project inside the state-owned Entertainment City complex in Parañaque.
The gaming firm will start construction of the casino and mall once piling works are completed on the 30.5-hectare property.
Meanwhile, around five percent will be spent for Golden Arches Development Corp. (GADC). The exclusive licensee of the McDonald’s brand in the Philippines hopes to add about 50-60 stores every year, in addition to its current network of 633 stores.
Part of the expansion for GADC is to roll out more modern stores under the NXTGEN concept, featuring self-ordering kiosks, modern menu boards, and card payment acceptance. The company currently has 62 such stores across the country.
AGI’s liquor manufacturing arm Emperador, Inc. will get about four percent of the planned capex, primarily to maintain its operations. Given its large investments in 2014, Emperador said it is focused on an organic growth strategy that will boost its whisky products under Whyte and Mackay, as well as Spanish brandy products under Bodegas Fundador.
“The company is also expanding its product mix in the domestic market with the recent introduction of The Bar Premium Gin, while it maintains market leadership in the brandy segment with its flagship Emperador Brandy,” AGI said.
The remaining three percent will be spent for the infrastructure projects of Infracorp Development, Inc. The newest of AGI’s business units is currently awaiting regulatory approval for its proposed two-kilometer Skytrain connecting Fort Bonifacio to Makati. It is also part of the consortium that wants to rehabilitate the Ninoy Aquino International Airport.
AGI’s net income attributable to the parent jumped 21% to P4.35 billion in the first quarter of 2019, after gross revenues also went up 19% to P39.47 billion.
Shares in AGI slipped 0.13% or two centavos to close at P15.42 apiece on Monday. — Arra B. Francia
CENTURY Pacific Food, Inc. (CNPF) is setting aside P2 billion for capital expenditures (capex) this year to expand its capacity, as it targets to grow its bottom line at a double-digit pace.
CNPF Executive Chairman Christopher T. Po said about half of the budget will finance the construction of a new tuna cannery in General Santos City. Scheduled to be operational by the fourth quarter of 2019, the cannery will add 100 metric tons to CNPF’s capacity.
The listed canned goods manufacturer earlier said its existing tuna canneries have been running at full capacity of 300-350 metric tons per day, prompting the need to expand. The new facility is expected to satisfy CNPF’s requirements for the next three to five years.
The remaining capex will be spent on investments that will boost CNPF’s efficiency.
“There are also cost reduction or efficiency capex, where we invest in new equipment, automation, to make our operations more competitive, and then just run of the mill repairs and maintenance,” Mr. Po told reporters after the company’s annual shareholders’ meeting in Pasig City yesterday.
The company’s capital spending this year is 11% higher than the P1.8-billion capex in 2018.
Meanwhile, Mr. Po noted how there have been improvements in the business environment such as easing inflation, stronger peso, and lower tuna prices, helping the firm see better results for the year.
“We just finished the first half. The peso’s stronger, interest rates are lower, so our interest expense should come down. Also our key raw materials, tuna prices are also down so we’re still as a management team going for double-digit growth this year,” Mr. Po explained.
In the first quarter of 2019, CNPF reported an eight percent increase in net income attributable to the parent to P792.54 million, following a 10% uptick in gross revenues to P9.85 billion.
Branded tuna products currently account for 32% of CNPF’s business, followed by milk at 20%. The company’s brands include Century Tuna, 555, Blue Bay, Fresca, Lucky 7, Argentina, Birch Tree, Kaffe de Oro, and Home Pride, among others.
The company is set to launch more products within the year, although Mr. Po declined to disclose further details.
Mr. Po said they also remain on the lookout for acquisition opportunities that will further expand the company’s portfolio.
“If we find something that fits our strategy, we know how to run it, and the valuations are reasonable, then we will definitely consider it…Our preference would be domestic, there’s enough happening in the Philippines, especially if it’s acquisition, we don’t have to stray too far from our home market,” Mr. Po said.
Shares in CNPF rose 0.13% or two centavos to close at P15.04 each on Monday.
AN ULTRA-LUXURY residential condominium being developed in the heart of Makati is grabbing headlines for its eye-watering price tag of around P600,000 per square meters (sq.m.).
But price is no object for the uber-wealthy individuals being targeted for The Estate Makati — the first building in the Philippines designed by award-winning British architectural design and engineering firm Foster + Partners.
A project of ST 6747 Resources Corp. — the joint venture between Sy-led SM Development Corp. and Ty-led Federal Land), The Estate Makati is expected to become the “crowning jewel” of Ayala Avenue.
Hans “Chico” Sy, Jr., president of SM Engineering, Design and Development, said they knew early on that they wanted to create a something unique, a statement piece, that the market will sit up and take notice of. This was why Foster + Partners, known for such architectural gems such as the Hearst Tower in New York City, 30 Saint Mary Axe Building (also known as The Gherkin) in London and HSBC Building in Hong Kong, was the number one choice for the project.
“When we started The Estate, the biggest question was: what was it about apartments today that don’t really appreciate very well in market value? Unlike Forbes Park… The challenge was simple: find out what was it about residential lots that made it escalate in value. We challenged each other on that point. What was it we can do to ensure that this was not just another residential project, that this was really a true investment,” he said during a briefing in Makati City last June 24.
Mr. Sy said they studied what the Forbes Park living experience was, and sought to recreate that same sense of privacy and exclusivity with The Estate Makati.
“Residents truly appreciated the exclusivity, the privacy. No matter what, inside those gated walls, they were safe… One of the things we looked for in approaching The Estate was the giving the sense of exclusivity,” he said.
Michael John V. Espiritu, managing director at environmental design consultancy firm Crearsis, said the entrance will have a variety of native trees creating a canopy that provides residents with privacy — and evoke the same feeling Forbes Park residents get when they enter the exclusive village.
Another unique feature of The Estate Makati is that the building will rest on a plinth at least one storey from street level.
“We’re the only building on Apartment Ridge that arrives on Ayala Avenue… Imagine you drive up, arriving at one storey high, above the buses of Ayala Avenue, overlooking the street,” Mr. Sy said.
‘HOME IN THE SKY’
For The Estate Makati, Foster + Partners created a cross-shaped building in order to minimize the exposure to the sun’s rays.
“As the sun in the Philippines is quite strong, we designed the windows to be angled a certain way so that it doesn’t spill into the unit but still provides enough light — without compromising the breathtaking views of the Makati skyline,” Luke Fox, Foster + Partners head of studio and senior executive partner, was quoted as saying in a statement.
The 53-storey building offers 188 units, ranging from 151 square meters (sq.m.) two-bedroom flats to the multi-level 763 sq.m “super penthouse” suites. Prices start at P90 million.
There will only be four units to a floor, with each floor having a sequestered lift lobby. It will have one of the most generous elevator arrangements of two private lifts for every unit.
Another feature that sets The Estate Makati apart is that it uses double-slab technology. With utilities, plumbing, and electricals concealed in between double slabs of concrete, the unit layout can be customized by the homeowner.
Federal Land General Manager Thomas F. Mirasol, W.V. Coscolluela & Associates Senior Partner Gary L. Coscolluela; SM Engineering, Design, and Development President Mr. Hans “Chico” Sy, Jr.; and Crearsis Environmental Design General Manager Michael V. Espiritu discussed what makes The Estate Makati project stand out from the rest in a recent media briefing.
“If we wanted to make sure this unit would stand the test of time, you would have to be able to change it up to your will. How can we make it so flexible?… That’s how double-slab technology came in. It’s not a new technology, but it’s new in its application to the residential market. We think this is one of the first global applications on a residential level. That’s why Fosters was so tickled about it,” Mr. Sy said.
The building also has a stain-resistant facade, and uses double-glazed windows for insulation and noise control.
“No unit is ‘weak,’ we took into account every unit and asked ourselves is this unit ‘weak’? What would make people think this unit is subpar compared to the others? Making sure every aspect was considered. Level of detail of this project is far, fare more developed than your typical project… Fosters is involved in every detail of this building. We expect to deliver a building that is truly world-class,” Mr. Sy said.
Another key strength of The Estate Makati’s units is the views — either Ayala Avenue or Apartment Ridge Road side (facing Urdaneta Village).
To ensure privacy, windows in each unit will use “privacy glass” and will be angled in such a way to prevent neighbors in nearby buildings from getting a peek inside.
PRIVACY A MUST
Instead of a grand main lobby, The Estate Makati will have private lounges where residents can entertain guests.
“The sense of privacy was key to the lobby design… We wanted to deliver facilities and amenities that residents would feel that this relates to me, this makes sense to me. This is why instead of a normal grand reception… we decided to create different spaces and let residents decide on their favorite spot. Even if you’re a resident, sometimes you just feel like you want to be part of the community,” Mr. Sy said.
For the elevated pool on the second level, there will be an overhanging canopy to protect the residents from prying eyes.
“We’re blocking the view from the outside, street level but when you’re in the pool area, you can still see between the trees and enjoy the view,” Mr. Espiritu said.
Residents can also have access to private function rooms as well as gym and yoga facilities for one-on-one sessions. There is also a wine lounge, which offers bottle keep services for residents.
While the units do not have balconies, there is a Sky Garden on the 25th floor.
“The amenities are spread out not just on the lower floors but on the mid-floors as well so people from the low and high zones can meet in the middle part, with a nice view area,” Gary L. Coscolluela, senior partner at W.V. Coscolluela & Associates and local architect consultant for The Estate Makati, said.
Mr. Coscolluela said The Estate Makati is aiming to be the first LEED Gold Version 4-certified residential building in the country.
“The Estate, like anything else, is a reflection of who you are… From the moment that you arrive, it’s already saying something about the people who live there, what their values are. The nice thing about this project is that it is so specifically designed for a certain clientele in mind, they appreciate these things. There’s something great about being in a high-rise condo, you want all of that but you want that privacy. You can be part of something amazing but feel like you are the only person there,” Thomas F. Mirasol, general manager of Federal Land, Inc., said. — Cathy Rose A. Garcia
ROBINSONS Land Corp. (RLC) is partnering with sister firm Gokongwei Brothers Foundation, Inc. (GBFI) for a new company to be valued at P5 billion.
In a disclosure to the stock exchange on Monday, the listed property developer said its board of directors has approved the creation of a joint venture (JV) firm that will be involved in the property sector.
“RLC and GBF, through a joint venture company, shall purchase, lease, and develop real properties,” the company said.
RLC said the JV firm will be managed by its own board of directors with five members.
GBF was established in 1992 by Gokongwei brothers, John, Johnson, Henry, and James through donations from their shares of stock in holding firm JG Summit Holdings, Inc. The foundation collaborates with educational institutions to extend scholarships to students as well as learning facilities for a number of universities.
The foundation is managed by members of the Gokongwei family.
RLC has been partnering with several firms this year to facilitate its expansion. In February last year, the company agreed to establish a JV company with Hong Kong Land International Holdings Ltd. and its subsidiary Ideal Realm Ltd. for a property in Bridgetowne East, Pasig City.
The company then teamed up with DMCI Project Developers, Inc., also known as DMCI Homes, for a multi-tower residential condominium in Las Piñas City. It also has partnerships with listed developer Shang Properties, Inc. for a mixed-use development in Bonifacio Global City and Frabelle Fishing Corp. for the development of properties in Cavite.
RLC plans to launch P12 billion worth of residential projects this year, mostly in Metro Manila. It will also spend P27 billion in capital expenditures to support its expansion.
The property firm grew its net income attributable to the parent by 19% in the first quarter of 2019 to P1.83 billion. Gross revenues improved by seven percent to P6.78 billion.
Shares in RLC added 0.19% or five centavos to close at P26.40 each at the stock exchange on Monday. — Arra B. Francia
MULTI-AWARDED English musician Gordon Thomas Matthew Sumner, better known by the mononym, Sting, is coming to Manila to perform in a concert on Oct. 2 at the Smart Araneta Coliseum in Cubao, Quezon City. This is part of his ongoing international tour, My Songs.
On May 24, Mr. Sumner released a new album, My Songs, which features contemporary interpretations of his most celebrated hits. He then commenced on a multi-city tour to promote the album.
“[Mr. Sumner’s] My Songs Tour consists of a rollicking, dynamic show featuring his most beloved songs spanning the 18-time Grammy Award winner’s prolific career with The Police and as a solo artist,” said a press release.
Mr. Sumner, the man behind the hits such as “Englishman in New York,” “Shape of My Heart,” “Every Breath You Take,” and so much more, started his career in 1977 as part of British rock band The Police where he was the songwriter, lead singer, and bassist.
Sting has performed several times in the Philippines, first back in 1994 at the Ultra Outdoor Stadium, and most recently during his Sting Back to Bass Tour Manila concert at the Smart Araneta Coliseum in 2012, and with Chris Botti in 2016 at the Marriott Grand Ballroom.
As a member of The Police and as a solo musician (he embarked on a solo career in 1985) he has received a total of 17 Grammy Awards, Rolling Stones’ Song of the Year for “Every Breath You Take” in 1983, three Brit Awards including Best British Male Artist in 1994, a Golden Globe, an Emmy, and four nominations for the Academy Award for Best Original Song.
In 2002, he received the Ivor Novello Award for Lifetime Achievement from the British Academy of Songwriters, Composers, and Authors. In the same year, he was also inducted into the Songwriters Hall of Fame.
The Police was inducted into the Rock and Roll Hall of Fame in 2003. The same year, Sting received a Commander of the Most Excellent Order of the British Empire (CBE) from Elizabeth II for his contributions to the music industry.
As an actor, he has appeared in more than 15 films and starred in the 1989 run of The Threepennny Opera on Broadway.
One of his most recent awards was the 2019 BMI award for “Every Breath You Take” which is considered the “most played song in radio history.”
Throughout his decades-long career, Mr. Sumner has sold close to 100 million albums from his combined work with The Police and as a solo artist.
Following his critically acclaimed album, 57th & 9th (2016) his first rock/pop collection in over a decade, Mr. Sumner and reggae star, Shaggy (real name: Orville Richard Burrell) released a collaborative, island-influenced album, entitled 44/876 (2018) that draws from the many surprising connections at the heart of their music.
With its title referencing their home country codes, 44/876 honored the duo’s mutual love for Jamaica: Shaggy’s homeland, and the place where Mr. Sumner penned such classics as “Every Breath You Take.” The release debuted at No. 1 in Germany and Top 10 in the UK. It spent over 20 weeks atop Billboard’s Reggae Album chart in the US, earned Gold certifications in Poland and France and received the Grammy Award for Best Reggae Album.
In 2020, he will headline a Las Vegas residency, My Songs, set to open at The Colosseum at Caesars Palace Friday, May 22, 2020. The show will present a compendium of his songs with dynamic, visual references to some of his most iconic videos and inspirations.
My Songs in Manila will be on Oct. 2 at the Smart Araneta Coliseum. Tickets will go on sale starting July 3, 10 a.m., on www.buytickets.asia and www.ticketnet.com.ph. Members of Mr. Sumner’s fan club will be able to purchase pre-sale tickets on July 1 to July 2 by visiting www.sting.com. Ticket prices range from P2,640 to P20,595. — ZBC
ILOILO CITY — Metro Pacific Water (MPW) and Metro Iloilo Water District (MIWD) formally started of operations of their joint venture company Metro Iloilo Water (MIW).
MIW covers the water distribution system in Iloilo City and its neighboring municipalities.
MPW, the wholly owned water infrastructure investments subsidiary of Metro Pacific Investments Corp. (MPIC), and MIWD signed a 25-year concession deal for the expansion and improvement of the water distribution system as well as wastewater management facilities of MIWD.
The water distribution system will now be handled by MIW, while MIWD will be monitoring the performance of MIW with regards to the service contract agreements.
“The commencement of this new joint venture marks the start of the improved living conditions among the Ilonggos. Access to potable water is a basic human right and as experts in the water industry, it is incumbent upon us to address the water needs of our countrymen and ensure proper waste sanitation through proper waste management,” MPIC President and Chief Executive Officer Jose Maria K. Lim said in his opening speech.
Mr. Lim, also a director at MPW, said MPIC brings with it the technical capacity and experience of Maynilad Water Services, Inc., one of the two concessionaires in the capital and neighboring areas.
“Maynilad has dedicated itself in improving the lives of 9.5 million people within its concession. This is the role we also see MIW planned for the people of Iloilo, supplying the Ilonggos with sustainable water while helping them protect the environment though the treatment of waste water,” he said.
MIW President Eriberto R. Calubaquib, for his part, said their priority would be to meet the demand of the existing 40,000 customers in Iloilo City and municipalities of Oton, Maasin, Cabatuan, Sta. Barbara, Leganes, and San Miguel.
“Right now, we have 40,000 service connections and the supply of service is not consistently 24/7 since the water is being rationed. The first approach is really to satisfy the existing customers that they get sufficient water before we do the expansion to other consumers,” he said.
Mr. Calubaquib added that in the next five years, they target to expand their serviced household population from the current 20% to 35%.
“Right now, we have a population served at 20%. Our plan is in the next five years, this 20% that are being served today in a ration basis, they will get 24/7 supply and then we increase the population from 20% to 35% of the population,” he said.
Amaryllis Josephine C. Castro, officer-in-charge of the MIWD Office of the General Manager, added that they are aiming to reduce non-revenue water to 35% from 50% over the 25-year concession as well as expand service in the Molo and Arevalo districts.
“We will be going through a lot of adjustments and there is an adjustment period that is happening now, but for sure the consumers will experience improved water services in the metro,” she said.
Meanwhile, Ms. Castro called on existing MIWD customers to sign their new water contracts under the new distribution company.
“More than 60% of the MIWD customers have already transferred to MIW and we would like to appeal to those who haven’t processed yet to please do so. We target to finish it by September 30,” she said.
MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Emme Rose S. Santiagudo
DURING its first four years, Tinder, the popular dating and hookup-facilitating smartphone app, largely ignored everything west of the Pacific. Tailoring the service to varied local dating rituals in Asia was deemed too challenging for the fledgling company. For example, premarital sex is frowned upon in the Philippines, arranged marriages are commonplace in India, and “sogaeting” (blind dates arranged by friends) is the norm in Korea.
But that has changed. As Tinder’s explosive subscriber growth has started to wane in North America, its parent company, IAC/Interactive Corp.’s Match Group Inc., has done what so many companies have done before: it’s looked to Asia.
Over the past two years, the company has been strategizing a way to expand in the region, where millions of single people have never tried a dating app. To win over Asia, Tinder is reinventing itself.
SOUTH KOREA
In South Korea, the company is trying to shed its reputation as a hookup app — instead, it’s selling itself as a place to find new friends. In university towns, new billboards have emerged for Tinder: “New Year, New Friends, New You.” In Seoul, illuminated cubes adorn subway stations with models blowing chewing gum bubbles while asking if “anyone is down for a quick chit-chat.” Famous South Korean pop star Seungri signed on as the local face of Tinder, telling his fans that many of his friends around the world use the app. The strategy seems to be working. In the past two years alone, Tinder’s user base has more than doubled. In 2015, Tinder didn’t even feature in the top five dating apps by downloads on iOS or Google Play in South Korea, according to analytics firm App Annie, but now it’s ranked No. 1 for both downloads and monthly active users in the country.
A generation ago, women in South Korea were pressured to get married and start having children in their early 20s. It was typical for families to spend small fortunes on match-making gurus to set their child up with someone from an equal socio-economic background.
“During my parent’s generation, women got married straight after college graduation,” Jieun Choi, 26, said. “People in our generation were raised by such parents who expected us to go through that rite of passage.” Her parents began urging her to date in her early 20s and even her chiropractor weighed in, suggesting a love life could help ease her back pain. “Being a single, you’re kind of considered incomplete,” she said.
The way young Koreans have traditionally found romantic partners is sogaeting, where a mutual friend sets two people up on a blind date, or meetings where groups of friends all hang out together and pair off. “There’s no casual meetup that happens spontaneously in Korea. Friends introduce you to friends,” Choi said.
The atmosphere is changing, though. After leading an independent life while studying abroad in Hong Kong, Choi moved back to Seoul recently and said the old-fashioned match-making traditions felt inapt.
About five years ago, a number of Korean entrepreneurs were watching the meteoric rise of Match in the US and noticed a gap in their market. Homegrown apps like Amanda and Sky People started attracting millions of subscribers.
Lyla Seo, 35, saw this as an opportunity when she became Tinder’s first general manager in South Korea in July 2017. At the time, Tinder had no marketing strategy to court the tech-savvy Korean population, and so she partnered with a research agency to conduct interviews with local users.
Her most significant discovery was the lack of awareness about Tinder and how it should be used. Seo found young Koreans were desperate to meet new people and hang out. So Tinder invited hundreds of young men and women to roller skating discos, secret concerts with pop singers and all-day surfing clubs. Tinder advertisements are everywhere: TV, Facebook, buses, movie theaters.
Those familiar with Tinder’s more transactional reputation in the West are bemused. “Tinder is so tied into American culture, the thought that it could hide its identity in Korea is kind of absurd,” said University of Michigan Professor Fred Feinberg, who has studied the marketing behind online dating apps.
NUANCES
Match’s foray into Asia stretches beyond South Korea. Match Chief Executive Officer Mandy Ginsberg is betting big on this corner of the world, spending more money on marketing in Korea, India, and Japan than anywhere else in the world, despite the Asia Pacific region only pulling in 12% of Match’s revenue last year. In May, she told analysts this would increase to 25% by 2023.
In an interview, Ginsberg recalled recently attending her nephew’s wedding in India and when she was speaking to a group of his friends who live in the country, she asked if anyone thought they might meet their significant other through an arranged marriage. “They all started laughing at me and said, ‘that ended with our parents’,” Ginsberg said. “This generation is different.”
If anything is going to upset Ginsberg’s plan, it’s the cultural nuances. In America, Tinder profiles tend to be overrun with selfies and swimsuit shots, while profiles in South Korea include pictures of users’ favorite food, pets or hobbies. In India, religion, language, and caste are important features in a potential mate. In Japan, it’s typical for prospective suitors to list their blood type, or ketsuekigata, on their dating profiles as a hint at their personality type, alongside their salary and an often inflated height.
To understand all these intricacies, Match has been seeking local managers with knowledge of local customs. In India, Match has a new general manager, Taru Kapoor, who is working to improve the chances of matching people with compatible cultural views by asking new users to disclose their thoughts on the #MeToo movement and whether women should continue working after marriage. Junya Ishibashi was elevated to general manager for Match in Japan and Taiwan. He is trying to lobby the government to backtrack on strict regulations enforced in the 1990s that ban marketing dating products on television, near public transit stations or on Google. Match is also targeting Indonesia, Singapore and Vietnam.
The recent announcement of Tinder Lite, an app targeted towards emerging markets, will certainly help with Match’s expansion eastward, said Cowen analyst John Blackledge. Tinder Lite will be smaller to download and take up less space on smartphones to make it more effective in remote regions where data usage comes at a premium. “If localization is what’s needed, that’s the direction they will go,” he said. “They want to win.” — Bloomberg
By Francis Anthony T. Valentin Special Features Assistant Editor
BOUTIQUE property developer Arthaland Corp. recently broke ground for Sevina Park, a mixed-use development spanning 8.1 hectares in Biñan, Laguna.
Situated near the Laguna Boulevard interchange of the under-construction Cavite-Laguna Expressway (CALAX), Sevina Park is Arthaland’s first township project. It is also touted as the first in the Philippines to be registered for a Leadership in Energy and Environmental Design (LEED) certification for neighborhood development, which is awarded by the U.S. Green Building Council.
“It’s consistent with the commitment of Arthaland that all of its developments will be green and sustainable,” said Jaime C. Gonzalez, vice-chairman, president and chief executive officer of Arthaland. “For me, it’s one of the more exciting projects that we have.”
Around 60% of Sevina Park will be green and open space. The development will also have its own sewage treatment plant, as wells as storm drains and catch basins for water conservation purposes.
As part of Arthaland’s partnership with World Wide Fund for Nature, endemic and endangered trees were planted around the property.
“Just like what we did with Arya Residences, we were leading the way for sustainability in residential development, we’re leading the way again, this time for a township development,” said Leo T. Po, executive vice-president and treasurer of Arthaland. Arya Residences is a LEED-certified two-tower condominium project of Arthaland in Taguig City.
“By integrating all the principles of LEED into a community, we’ll be able to further push the envelope in terms of sustainability. Because not only are we focusing on making one building LEED. We’re making an entire community LEED. That means that the units will have optimized energy consumption, optimized use of water. We will minimize waste and maximize the resources that we have available to us,” he said.
Construction on Sevina Park’s 108 villas, which have between two to four bedrooms, is underway. All these villas will be energy efficient.
The four-bedroom “villa 170 unit type” will have additional features: a provision for solar power systems, a mechanical exhaust and a Forest Stewardship Council-certified wood. These features are said to qualify the villa to be the first LEED-certified home in the country.
Arthaland aims to finish putting up all the villas in 2021 and start turning them over to buyers in the same year.
It has pegged the introductory price of a villa at around P110,000 per square meter. “Because the major infrastructure that’s upcoming, the CALAX highway, will soon open… all of you know what happens the moment a major highway infrastructure happens in correlation to real estate prices. So our introductory price is really good,” said Christopher G. Narciso, executive vice-president for business development of Arthaland.
The developer is targeting families in Laguna, Cavite and southern Metro Manila, and executives at industrial parks nearby.
There’s already a 348-bed student dormitory operating in Sevina Park. Arthaland will also build low-rise condominiums and offices.
Arthaland currently has nearly 50 hectares of landbank, including in the cities of Calamba and Tagaytay and in Batangas, that it may “activate when the time is right,” Mr. Po said.
“We continue to be out there looking for properties to acquire,” Mr. Gonzalez said.
“We’re looking for more properties obviously here in the CALABARZON area because we’re already here,” Mr. Po said. “But we’re also looking at other growth areas and key cities around the country.”
