THE NATIONAL GOVERNMENT saw its budget deficit more than double in October as expenditure growth outpaced an increase in revenues, the Bureau of the Treasury reported on Monday. Read the full story.
CLARK FREEPORT ZONE — Representatives of businesses in regions outside Metro Manila submitted their list of concerns for government action during the third leg here of the regional Sulong Pilipinas-Philippine Development Forum 2018.
About 500 participants, mostly representing small and medium enterprises (SMEs), attended the consultative workshop and submitted 10 policy concerns to ranking government representatives: improve access to education, particularly for the poor; agricultural modernization through financial and technological support; no palakasan (influence peddling) system to secure approval of business permits by state regulators; improve peace and order by making the policemen visible 24/7; more flood control and environmental projects; ensure equal punishment for the rich and the poor for criminal offenses; more funding for export support services; improve access to health facilities in rural areas through bigger fund allocation; address migration to Manila to decongest traffic; and hasten implementation of infrastructure projects.
“We’re trying to have more and more SMEs. This is a way to asking them on what they need and also reporting back on what they asked (the government) to do. I think it’s working quite well. This is what accountability means: that we report directly to small and medium enterprises and to the business community what we have achieved and also what we have not achieved,” Finance Secretary Carlos G. Dominguez III said in a news briefing at the sidelines of the forum.
Mr. Dominguez and other economic managers committed to pursue the Duterte administration’s socioeconomic agenda, with the Finance chief saying: “We have an economic program… we have not changed that, we are still pursuing it.”
“We have met with some success, we have met some delays, but we’re pushing ahead quite well,” he added.
In the forum, Mr. Dominguez enumerated the government’s action on businesses’ recommendations since the first Sulong event in 2016, including the first of up to five planned tax reform packages, Ease of Doing Business Act and the national identification system that were enacted in December 2017, May and August, respectively.
At the same time, he said that elevated inflation has been the focus of “the most severe criticism” that the government has received so far, caused largely by developments beyond government control like the spike in world oil prices and US monetary tightening that weakened the peso.
The government “moved very quickly”, Mr. Dominguez said, by raising benchmark interest rates by a total of 175 basis points so far since May and issued administrative orders to boost food supply by unclogging distribution bottlenecks.
And while Dubai crude prices — Asia’s benchmark — have lately been on the way down, Malacañang has so far stood by its decision to hold off implementation of the additional P2 per liter fuel excise tax that should kick in starting January 2019.
“There’s a relief because prices are down. We are currently again reviewing it. This is a totally unexpected development although it’s a pleasant development. We are currently reviewing the situation especially now that prices have gone down to $55 per barrel, or thereabouts. So that’s going to have a big effect on the reduction in inflation,” Mr. Dominguez said.
“The President has approved it (fuel excise tax hike suspension) already, but again we have to look at the facts on the ground. But most likely we will do it. It will depend on the prices: supposing it will go up to $90? Everything is possible because we cannot project. Less than 60 days ago, we’re talking that we thought prices will go at that level, but we have a pleasant surprise. Sometimes the market is wrong.”
Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo and Budget Secretary Benjamin E. Diokno meanwhile said that the economy is expected to continue growing at a robust pace as macroeconomic fundamentals remain intact.
The central bank official dismissed concerns the economy may already be overheating — as evidenced partly by inflation that has lately been breaching the official 2-4% full-year 2018 target range — noting that credit growth has been growing parallel with economic growth and that inflation has already peaked.
He also noted that the growing current account deficit has been fueled by “strong appetite for imports due to economic growth,” as shown in the surge in imports of capital goods, raw materials, and intermediate goods, which will be “exports in the future, eventually alleviating the current account deficit.”
“I think we can expect that the economy will continue to grow based on the target of the government between 7-8% in 2019 and 2020. Now will this amount result in overheating? We don’t think so because inflation is derived from supply sources; when you have overheating, inflation comes from the demand side. Second both our liquidity and domestic credit growth are consistent with the growing economy, you expect both the growth of domestic credit and monetary aggregates to continue growing because the economy is expanding. Overheating is not relevant or a problem in the Philippines at this point,” Mr. Guinigundo explained.
Mr. Diokno said in the same consultations that “government spending will continue to boost economic activity.”
“Our expansionary fiscal policy is prudent, sustainable and supportive of medium-term development objectives,” the Budget chief said, noting that government disbursements had exceeded targets in the first nine months of the year.
“This is clear proof that the ‘Build Build Build’ program is firing on all cylinders.”
Mr. Dominguez said that the state spending program has been “moving ahead of schedule,” and the “old problem of absorptive capacity has been solved.”
He also sought to allay nagging worries about a debt trap as the government taps China for development funds.
The government, the Finance chief said, availed of “soft loans at the lowest possible interest rates and the longest possible term arrangements,” estimating that China debt will account for just 0.65% of the overall debt burden this year and 4.5% in 2022, while the debt burden with Japan amounts to 8.90% this year and 9.5% in 2022.
“So there is no danger of us being drowned in Chinese debt. We borrow with great prudence, aware that it is the taxpayer who ultimately pays for the debt. In the past administration, there was a big scandal involving Chinese financing. And the reason for that, is that administration allowed the Chinese state-owned enterprises to dictate what projects are going to be done here. In our case, we have told the Chinese that it is only us who will determine what projects we will embark on without any interference from them,” said Mr. Dominguez.
“And in a recent case, there was one of the funding agencies that made an offer that we thought was too high, and we said we will not get it from them, we will get it from the ADB (Asian Development Bank). Immediately, they dropped their costs. So we ask them to compete for the projects.”
Mr. Diokno meanwhile remained confident that the government’s infrastructure program will remain intact despite risks of a reenacted budget for 2019.
“As far as the 75 major projects are concerned, I know that they will not be disrupted because we have multi-year obligational authority — that’s the nature of the big projects. But it’s the small projects that will suffer,” he said.
The House of Representatives approved the P3.757-trillion 2019 budget last week, but the Senate said that leaves it with little time to approve the same.
“A reenacted budget is only a fall-back position so that there will be no disruption in government. So at any time, we can have a new budget, it can be January or March or later. They (legislators) have until the end of the year. They can work holidays,” said Mr. Diokno. — Elijah Joseph C. Tubayan
By Melissa Luz T. Lopez
Senior Reporter
THE CENTRAL BANK is banking on the peso’s recovery against the greenback to rebuild its foreign exchange reserves, a senior official said.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said monetary authorities are looking to replenish gross international reserves (GIR) which have declined for the most of 2018. “Bit by bit, we will try and build up the reserves without leaning against the wind,” he said in a recent interview.
The country’s reserves dropped to $74.773 billion in October from $74.939 billion in September. That was the lowest level in seven years since July 2011 and marked a second straight month of decline, according to latest central bank data.
The current GIR level remained below the BSP’s $80-billion forecast for the entire year and is less than the $81.57-billion reserves as of December 2017.
The BSP employs “tactical intervention” and uses the reserve stash to intervene and smoothen changes in day-to-day currency trading in order to keep the peso stable.
In terms of import cover, October’s level slipped to 6.8 months versus 7.7 months when the year opened, though still well above the three-month global standard.
The peso has pared its losses over the past month to return to the P52 level versus the greenback, coming from its weakest levels in 12 years back in September. It was 4.8% weaker year-to-date on Monday compared to about eight percent two months ago.
“These last three months of 2018, we will see some turnaround in the peso. More (dollars) are coming in: remittances, BPO (business process outsourcing) payments and more people are coming in from tourism,” Mr. Guinigundo said.
“The accumulation of foreign exchange can see a high point within the last three months and it continues to happen.”
The central bank official also pointed out that more dollars are headed to the Philippines ahead of Christmas, giving BSP more resources to beef up reserves.
“If there are opportunities, we will do so because there is excess supply of dollars in the market especially if doing so will provide additional liquidity to the system,” he added.
“Even if you release a few pesos here and there and build up your GIR, it will not unduly upset the stability of the fundamentals.”
These purchases will likewise help boost peso liquidity in the market, spurring money supply growth after easing in the last few months.
Emilio S. Neri, Jr., lead economist at the Bank of the Philippine Islands, has cited the need for the BSP to “build up” the country’s reserves after the peso’s depreciation eroded this buffer for much of the year.
Credit raters have been citing GIR as a source of strength for the Philippines, providing sufficient buffer against external shocks which could unduly weigh on the country’s ability to service foreign obligations.
THE World Bank’s sister organization International Finance Corp. (IFC) and IFC Emerging Asia Fund are investing $40 million in PLDT, Inc.’s technology unit Voyager Innovations, the telecommunications giant said on Monday.
In a statement on Monday, PLDT said it signed an agreement with IFC and the fund managed by IFC Asset Management Company for the subscription of $40 million worth of newly issued shares in Voyager.
The two companies join investment firm Kohlberg Kravis Roberts & Co. (KKR) and Chinese tech company Tencent Holdings Ltd. as foreign investors in Voyager. KKR and Tencent earlier announced a consolidated investment of $175 million in PLDT’s digital innovations arm.
The four foreign partners will now have a total combined investment of $215 million in Voyager, which handles the PayMaya Philippines, Inc., mobile remittance brand Smart Padala, online loaning platform Lendr, financial technology arm FINTQ, and free mobile browsing app Freenet.
PLDT said its ownership stake in Voyager would be reduced to below 50% once the deal is closed, which is expected before the year ends. However, PLDT will remain the single largest shareholder in the tech company.
“We at PLDT are quite happy to welcome the investment… Through its Global Innovative Retail Payments Program, IFC aims to make financial services much more accessible and affordable to the world’s low-income population by supporting innovative financial services. That is precisely the goal that PLDT is pursuing through Voyager’s platforms,” PLDT Chairman, CEO and President Manuel V. Pangilinan was quoted as saying.
Mr. Pangilinan had earlier said selling stakes in Voyager was intended to help PLDT regain losses from the unit, which stood at P1.8 billion during the first three quarters of the year. He estimated that PLDT’s investment in Voyager since 2013 is at around P9 billion to P10 billion.
Voyager’s closest competition in the Philippine market is Globe Telecom, Inc.’s GCash, which also took a minority investment from Ant Financial Services Group of Chinese billionaire Jack Ma last year.
MULTISYS INVESTMENT
In a separate disclosure to the stock exchange, PLDT said it had also signed the agreement for its investment in information and IT solutions provider Multisys Technologies Corp., which it announced earlier this month.
“PLDT’s investment involves the acquisition of new and existing shares of Multisys equivalent to a 45.73% ownership stake. As part of the Investment Agreement, PLDT will infuse P1.6 billion fresh capital into Multisys subject to the fulfillment of the prescribed conditions to complete such investment,” the company said.
In its earlier announcement, PLDT said Multisys will help PLDT Enterprise, ePLDT and Voyager offer custom-made solutions for its customers.
“This investment positions PLDT as a telecoms and digital services provider with core software development capabilities,” Mr. Pangilinan was quoted as saying then.
For the first nine months of 2018, PLDT’s attributable income dropped 26% to P16.27 billion from P21.87 billion a year ago due to accelerated depreciation of P4.5 billion related to its network assets.
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. — Denise A. Valdez
By Maya M. Padillo, Correspondent
DAVAO CITY — The Floirendo-owned Damosa Land Inc. (DLI) is constructing a third building within the Damosa IT Park in the central-western side of Davao City and is now in talks with locators.
DLI Vice-president Ricardo F. Lagdameo, in an interview with BusinessWorld, said groundbreaking for the 15-storey Davao Diamond Tower is being planned before the end of November and the target completion date is early 2020.
“We are talking to a few locators already, meaning we already showed them the project. These are the people we have been talking to for quite sometime already and these are people that have office space already with us and need to expand,” Mr. Lagdameo said.
The new building will have a total floor area of 20,000 square meters (sq.m.).
Among the current locators at the Damosa IT Park, a Philippine Economic Zone Authority-accredited facility, are global office space provider Regus, business process outsourcing (BPO) firm Concentrix and various information technology companies.
Mr. Lagdameo said about 90% of their locators are not from Davao City.
“But it is not only BPO inside Damosa IT Park, I would say 50/50, 50% is BPO the other 50% are traditional offices, accounting offices, shipping lines, and the Regus business center,” he said.
Mr. Lagdameo said among those they are talking to for the new tower are some of the Regus clients who are now planning to set up a permanent office in the city.
At the same time, he said they are considering opening another Regus center at the Davao Diamond Tower.
The 1,600-sq.m. Regus Davao center, currently 100% occupied, was opened in September 2016. It has 346 stations, 52 offices, and three conference rooms.
Regus, meanwhile, is opening another Davao branch at the Felcris Centrale BPO building, located at the central-south part of the city.
“We are opening at Felcris Centrale on December 1,” Regus Davao General Manager Cherrilyn Casuga said during the Energy Smart Mindanao 2018 forum organized by the European Chamber of Commerce of the Philippines last Nov. 22. The Damosa IT Park is located within the Damosa District, one of the first mixed-use complexes in Mindanao. It houses the headquarters of the Floirendo’s holding firm Anflo Management and Investment Corp., the Damosa Gateway with dining places and retail shops, Damosa Market Basket, and Damosa Business Center. — with a report from Marifi S. Jara
FOLLOWING a successful first run last year, the National Commission for Culture and the Arts’ (NCCA) ASEAN Tingin Film Festival returns for a second a year and presents a selection of films from ASEAN countries and Taiwan, running until Nov. 29 at the Gateway Cineplex in Cubao, Quezon City.
“This festival will once again encourage meaningful discussions and collaborations with our colleagues and friends in Southeast Asia. In this Post-Truth era where fake news is threatening to become the norm, the stories we tell each other (through film) may be perhaps our best and most effective line of defense,” Teddy O. Co, NCCA commissioner for the arts and the head of the subcommission on the arts, said in a press release.
Among the films included in this year’s festival is Dain Said’s Dukun (2018) from Malaysia, a legal horror-thriller loosely based on the true story of the gruesome murder of a former Malaysian politician by a once mildly popular Malaysian singer-turned-witch doctor who was convicted in 1993.
Also in this year’s lineup are two films by Filipino director and newly minted National Artist for Film Kidlat Tahimik — Perfumed Nightmare (1979), about a jeepney driver who rejects the rapid encroachment of technology coupled with a fascination with the US Space Program, and Who Invented the Yoyo, Who Invented the Moon Buggy (1982) which is a spiritual successor about the fascination with going to space.
Aside from presenting his two films, the festival will also feature a lecture, “The Art of Kidlat Tahimik,” on Nov. 28.
The Philippine documentary Yield (2018), directed by Victor Tagaro and Toshihiko Uryu, which documents lives of nine children living in dire Third World conditions, also made its way to the festival and is to be screened on Nov. 27. Mr. Tagaro will also be holding a master class before his film is screened.
From Indonesia comes A Copy of My Mind (2015) by Joko Anwar, which tells the story of a cheap salon worker and a pirated DVD subtitle maker falling in love amidst turbulent presidential elections in Indonesia.
Lao PDR’s Vientiane in Love (2014) by Anysay Keola, Xaisongkham Induangchanthy, Phanumad Disattha, and Vannaphone Sitthirath is an anthology of five love stories in various forms.
From Myanmar comes The Monk (2014) by Maw Naing Aung and The Maw Naing which tells the story of a youth who enters a monastery in the hope of understanding how he wants to live his life.
The Singaporean film Hush (2010), by Jeremiah Oh, follows a woman who is unsure of her sexuality who navigates life feeling trapped by her passions and morals, her family, and her friends.
Another documentary, this time from Thailand, is Homogenous, Empty Time (2017) by Thunska Pansittivorakul and Harit Srikhao. It explores the spread of nationalism to try to discover what foundation the country is built upon.
The Vietnamese film Big Father, Small Father and Other Stories (2015) by Phan Dang Di tells the story of a photography student who, armed with a camera given to him by his father, discovers the seedier part of Saigon and his sexuality.
Finally, a film from Taiwan, The Road to Mandalay (2016) by Midi Z, follows a young Burmese girl headed to Bangkok to pursue a better life who takes a detour and ends up in Taiwan while searching for better opportunities. The film premiered at the 73rd edition of the Venice Film Festival where it took the Fedeora Award for Best Film.
The ASEAN Tingin Film Festival runs until Nov. 29 at the Gateway Cineplex in Cubao, Quezon City. For more information and screening schedule, visit the festival’s Facebook page. — ZBC
DAVAO CITY — A more stable and bigger volume of water supply is expected to be delivered to the city within the first half of 2021, upon completion of the P12.6-billion bulk supply project of the Aboitiz-led Apo Agua Infrastructura, Inc.
The project will tap the Tamugan River as source and deliver 300 million liters (MLD) per day to the Davao City Water District (DCWD).
DCWD Spokesperson Bernardo D. Delima, Jr. said the completion of the project will allow the water utility to improve service to areas that currently have fluctuating supply as well as expand alongside the city’s growth.
“We will be able to service all those (urban areas) 100%,” Mr. Delima said during the press conference at yesterday’s groundbreaking ceremony at the project site in Tamugan.
Submitted as an unsolicited proposal in 2013, the project was awarded to AAII after a Swiss challenge in 2014.
Apo Agua is 70%-owned by Aboitiz Equity Ventures Inc. and the remaining 30% under JV Angeles Construction Corp. (JVACC).“As a long standing partner of Davao City for over 70 years, we at Aboitiz are excited to be working with JVACC in order to provide current and future generations of Davaoeños with a sustainable, safe, and dependable source of bulk water supply,” Roman V. Azanza III, Apo Agua president, said.
The water supply project was originally targeted for completion by 2019, but permits and other documentary requirements from government agencies faced delays.
Apo Agua General Manager Cirilo C. Almario said the projected capital expense, originally set at P10 billion, has gone up to P12.6 billion due to the delays.
Under the contract with DCWD, the company is not allowed to sell water to any other buyer, and it will pay a six percent penalty if it fails to deliver the committed volume.
Mr. Delima said DCWD will buy water from Apo Agua at P12.25 per cubic meter (cu.m.), excluding value added tax, in the first year, which is lower than the utility’s current production cost of about P18/cu.m.
“Although there will be an increase in the years to come, but not on the first year,” he said.
He also noted that rates for consumers will not be lowered as DCWD is embarking on network expansion.
At present, the water district has about 61% of the city’s more than one million population covered.
In 2019, DCWD expects demand at 245 MLD while current supply, sourced from groundwater wells, is only about 238 MLD.
Once the bulk water supply facility starts operations, DCWD will be able to rest its wells for at least 25 years.
The agreement also provides that should Apo Agua default on its obligations, DCWD will take over the bulk water supply facilities. — Carmelito Q. Francisco
THE SHANGHAI stock exchange expanded its punishment of Chinese actress Zhao Wei over irregularities related to a failed 2016 takeover bid, underscoring the widening scrutiny of the finances of wealthy celebrities in the country.
Ms. Zhao, who has served on a jury at the Venice Film Festival and owns a wine chateau in Bordeaux, is prohibited from acting as a senior executive for any listed companies for five years, the bourse said in a statement last Tuesday.
The penalty applies as well to Ms. Zhao’s husband Huang Youlong, who was also found to have joined Ms. Zhao in misleading investors and breaching disclosure rules regarding a proposed takeover by Tibet Longwei Culture Media Co., which the couple controlled. Ms. Zhao and Mr. Huang couldn’t be immediately reached for comment.
The bans come as high compensation, poor compliance and hidden income for celebrities have stoked public outrage and heightened government scrutiny over the past year of what’s already one of the world’s most regulated entertainment markets. A tax evasion scandal that erupted earlier this year led to back taxes and penalties totaling about $129 million for superstar Fan Bingbing and companies she’s affiliated with.
Ms. Zhao and Mr. Huang were already prohibited from buying shares in Shanghai for five years, the penalty announced earlier this month along with fines of 1.2 million yuan ($173,000) on the couple and Tibet Longwei Culture Media.
The 42-year-old actress, also known as Vicki or Vicky Zhao, first shot to fame in China in the late 1990s as a star in the TV series My Fair Princess. She also received critical accolades for her leading roles in feature films such as Dearest and her directing debut So Young.
She has also built up a fortune through investments including an early stake in Alibaba Pictures Group. Mr. Huang had also partnered with e-commerce billionaire and Alibaba Group Holding Ltd. founder Jack Ma on a private equity deal in 2015. — Bloomberg
BEFORE the popularity of LED Christmas light displays which families and friends use as a background for selfies, there was a prominent holiday attraction of moving mannequins whose indelible images were imprinted on childhood memories.
Manila C.O.D, a small department store located along Avenida Rizal in Manila, opened in 1948. In 1952, businessman Alex Rosario, Sr. spearheaded “Christmas on Display” — an attraction featuring moving mannequins to attract more customers to the department store during the holidays.
“The first display was in Avenida Rizal. It was a can-can dancer made of plaster. Our motors (for the mannequins) were electric fan motors only,” Rey Rosario, CEO and president of Rosario Animated Display — and son of Alex Rosario, Sr. — told BusinessWorld last week, recalling the first display.
The popularity of “Christmas on Display” led to the growth of the business. In 1966 the department store and its seasonal display relocated to Quezon City’s Cubao area where the display was set up yearly until Manila C.O.D ceased operations in 2002.
But the animated display, which through the years tackled everything from astronauts and Sputnik to Filipino life on the farm, did not disappear with the demise of the department store. It instead transferred to the Greenhills Shopping Center where the display was set up on the giant canopy sheltering pedestrians walking from Ortigas Ave. to the shopping. The display was set up yearly until 2016.
Now, 16 years after its last appearance on the facade of the C.O.D Department Store, “Christmas on Display” returns to Quezon City, this time at the Araneta Center. Fittingly, this year’s theme is “Christmas is Home.”
Set up at Araneta Center’s Times Square Park at the corner of Times Square and Gen. Roxas Aves. — a stone’s throw from C.O.D’s original location along General Romulo Ave. — the attraction features more than 40 moving mannequins and a replica of the buildings of the present Araneta Center.
According to Mr. Rosario, the conceptualization for the display began in January and construction started in August.
The latest “Christmas on Display” showcases a homecoming of a Filipino family after 10 years abroad who reunite their relatives for the holidays. The show incorporates nostalgia through the older characters who reminisce about Christmas traditions and the beginnings of the Araneta Center, stories they tell the younger characters.
The display, which opened formally on Nov. 23, has 15-minute shows running from 6 to 10:30 p.m. daily from Sunday to Thursday, and from 6 to 11:30 p.m. on Fridays and Saturdays, until Jan. 6, 2019.
“I hope that it clicks, then it could be a yearly thing. I hope that coming back to Cubao would prolong my father’s legacy and give happiness to children,” Mr. Rosario told BusinessWorld during the launch. — Michelle Anne P. Soliman
EEI CORP. valued its investment in food manufacturer Biotech Japan Corp. at P81 million, as part of the company’s diversification strategy.
In a disclosure to the stock exchange on Monday, EEI said it will acquire 60% of the outstanding shares in Biotech JP, or 181,818 shares priced at P445.50 each.
The Yuchengco-led construction firm will make the payment by Nov. 30, which will be held in trust until such time that Biotech JP increases its authorized capital stock to 303,030 common shares. The company noted that Biotech JP will amend its articles of incorporation to reflect the increase in authorized capital stock.
“The investment is in line with the corporation’s diversification strategy and contribution to the sustainability goals of the country,” EEI Said.
Based in Niigata, Japan, Biotech JP manufactures food products using Japanese patented bacteria technology for preserving and packaging rice. Its off-the shelf rice products includes Echigo Protein rice, Insta-Rice pre-cooked packed rice, Gohan Lite calorie reduced precooked rice, and Rice-to-go ready to eat rice.
Biotech JP further has patented bacteria technology that allows it to increase yields of rice plants, while eliminating fertilizers with phosphate that pollute farmlands and bodies of water.
Incorporated in 1931, EEI started out as a machinery and mills supplier for the mining industry before expanding into construction services. The company is now involved in the installation, construction, and establishment of power generating facilities, oil refineries, chemical production plants, cement plants, and food and beverage manufacturing facilities, among others.
EEI is part of the Yuchengco Group of Companies, which has interests in banking, financial services, and property development.
EEI’s net income attributable to the parent climbed 36% to P690.31 million in the first nine months of 2018, driven by a 51% surge in gross revenues to P15.85 billion.
Shares in EEI jumped 1.18% or 10 centavos to close P8.56 apiece at the stock exchange on Monday. — Arra B. Francia
By Vincent Mariel P. Galang
WHEN planning to build a house, some people think they only need to hire a civil engineer or a contractor, but not an architect. For some, hiring an architect is seen as expensive, unnecessary or prolonging the construction process.
The United Architects of the Philippines (UAP) is hoping to change the seemingly widespread perception that architects are not important when building a house or any structure at all.
UAP President Benjamin K. Panganiban, Jr. emphasized the importance of a architect, noting the professional can combine beauty, functionality, and stability in a structure.
“Just imagine… if you do not get an architect, who has the educational background already of doing all these vertical structures and all of these vertical buildings. Instead, you are just getting an amateur trying out his experimentation on a hospital, and that is something you cannot afford, the client cannot afford,” Mr. Panganiban told BusinessWorld in a recent interview.
Architects are taught and trained on the art and science of a structure. At school, architecture students learn about different international building codes, local laws, relationship of buildings to environment, among others.
After graduation, they will still undergo a two-year apprenticeship under an architectural firm before taking the licensure exam.
All this ensures that an architect will have the knowledge and experience to plan and design a house and other vertical structures.
“You can get somebody who may know how to build a house, but is he properly oriented? That is not their learning that is the learning of the architect. In a residence, maybe that amateur or the allied professional will put the building facing the sun where every day you sleep, you feel very hot, while the architect does a relationship of a bedroom in relation to the orientation, so that is something not taught to other allied professionals,” Mr. Panganiban said.
“Anthropometry, the sizing of the structures in relation to the person living in that residence. All of these are taught well in advance to the architect, so that when a client enters a certain room or his residence he will not find it out of proportion,” he added.
ADVOCACY
Formed in 1975 as the integration of three architecture organizations — League of Philippine Architects (LPA), Association of Philippine Government Architects (APGA), and Philippine Institute of Architects (PIA), the UAP now has 44,800 member architects around the country.
This year, the UAP is intensifying efforts to educate the public on the role of architects through their advocacy — “For your plans and designs, get an architect.”
“In this advocacy, we want to reach out to everyone… that we are the specialist in this field of work,” Mr. Panganiban said
Architects also have to battle the perception that only the “rich” can afford their services.
Mr. Panganiban said that an architect can adjust the project based on the client’s needs and budget.
He noted for instance, an architect will not build a five-storey chapel made of concrete and steel for a fishing community.
“The architect comes into the picture not for the… money involved, but for the proper functional flow of a certain area. He will relate all the activities of the certain fisher folk community in relation to the chapel… He will not go beyond the limitations also of the client,” the UAP president said.
ONLINE PLANS
Because of these misconceptions about architects, Mr. Panganiban noted some have resorted to looking for ready-made house plans available on the Internet.
But Mr. Panganiban noted it is still better to consult an architect because he will know if the structure a client wants is feasible.
He said the plans available on the Internet should only serve as a reference, and architects will still have adapt these plans according to local conditions.
“Modern technology today has provided for plans to be in the internet… It is a difficult part on the architects because apparently the clients can have the opportunity and at their fingertips, plans offered in the internet. Then again, these plans whether it looks beautiful or not, may not fit into the lot of the client. These plans presented in the internet may not be at tuned to the climatic conditions in the Philippines,” Mr. Panganiban said.
“Plans on the internet, the client feels it looks cheap but actually in the construction it may not come out cheap, and lastly, plans on the internet may be beautiful to look at, but in reality as it is built, it may not come out to be at the liking of the client. So, this is where the architect comes in, and it cannot be removed from the architect this ability, creativity. Architecture is an art and a science,” he added.
The UAP has recently launched the second phase of its advocacy to educate the public on different specializations of architects. These include conceptual designs, liturgical architecture, heritage conservation, housing and human settlements, design and build services, material specifications on buildings, commercial and mixed-used buildings, and urban and community design.
For anyone planning to build any structure, Mr. Panganiban offers this piece of advice: “To plan, you design well… To spend your resources better, get an architect.”
LOS ANGELES — Disney’s Ralph Breaks the Internet dominated the Thanksgiving box office, generating a massive $84.6 million at 4,017 locations over the five-day holiday period and $56 million for the weekend.
Propelled by solid word of mouth, the Disney animated sequel now ranks as the second-best Thanksgiving debut ever, behind another Disney title, Frozen, which earned $93.6 million during its first five days. Ralph Breaks the Internet carries a hefty $175 million production budget, so it will need to keep up momentum worldwide to turn a profit. Ralph Breaks the Internet sees John C. Reilly and Sarah Silverman reprise their roles from Wreck It Ralph as the video game villain and his best friend navigate the Internet. The original film picked up $49 million over its first three days of release.
“Whenever we look at sequels, they have to be additive,” Cathleen Taff, Disney’s president of global distribution, said of Ralph Breaks the Internet’s impressive opening. “The filmmakers built this world out with such attention to detail that people were ready to come back and enjoy these characters. We’re really excited about the momentum as we head into the holidays.”
Ralph wasn’t the only sequel to thrive this weekend. MGM and New Line’s Creed II was a knockout as the boxing drama earned $55 million from 3,350 venues over the five days and $34 million for the weekend. That marks the best debut for a live-action film during the holiday frame. Those numbers also top the start of Creed, which launched with $29 million over the three-day frame. Creed II stars Michael B. Jordan as Donnie Creed, the son of heavyweight champ Apollo Creed. Sylvester Stallone returns as Rocky Balboa.
“It’s a thrill to see both its legacy and new generation of audiences continue to respond to Rocky Balboa and Adonis Creed in this time when we need uplifting stories,” said Jonathan Glickman, president of MGM’s motion picture group.
The crowded Turkey Day didn’t just bring back solid receipts, it set a new record, according to Comscore. This five-day outing surpassed $314 million, exceeding the record set in 2013 with $294 million.
Unfortunately, it’s not all holiday cheer at the box office. Lionsgate’s Robin Hood pocketed an tepid $14.2 million at 2,715 venues for the five-day period and $9 million for the weekend, a potentially disastrous result given the live-action adventure’s roughly $100 million production budget. Taron Egerton and Jamie Foxx lead Robin Hood in the latest rendition of the swashbuckling bandit.
As new releases swarmed multiplexes, a number of holdovers still managed to draw crowds. Warner Bros.’ Fantastic Beasts: The Crimes of Grindelwald picked up $43.3 million for the five-day outing and $29.2 million its sophomore frame. That brings its domestic tally to $116.5 million.
Universal’s The Grinch is still doing formidable business in its third week of release, and the family-friendly film will duke it out with the Fantastic Beasts sequel for third and fourth place once final numbers come in Monday. The animated adaptation of the Dr. Seuss holiday classic stole another $42 million for a Stateside haul of $180 million.
Rounding out the top five is Fox’s Bohemian Rhapsody. The Queen biopic drummed up another $19 million during the five-day holiday, bringing its North American total to $151 million. — Reuters
