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Astoria Boracay gets upgrade

ASTORIA HOTELS & Resorts (AHR) said it has spent an additional P50 million for the intensive renovation and design enhancement of its Astoria Boracay resort in Station 1, Boracay island.
This brings the company’s total investment in the resort , which had its soft opening last January, to P500 million.
Cebu-based architect Ed Gallego and Atelier Almario’s interior designers Ivy and Cynthia Almario were tapped for the upgrade of Astoria Boracay’s interiors and exteriors.
Astoria Boracay now has a spaciously redesigned main lobby. Renovations are still on-going, but the resort’s 71 guest rooms will soon get new interiors.
The lap pool will be extended to 27 meters, while The White Cafe now has a pastry corner and bakeshop. A new all-day dining restaurant Soleggiato was added.
Also, a sewage treatment plant was built to comply with government guidelines for Boracay.

Construction of Maynilad’s WRF gets under way

THE group of Megawide Construction Corp. and MUL consortium said it has started constructing the P2.05-billion Las Piñas Water Reclamation Facility (WRF) of Maynilad Water Services, Inc.
The listed diversified engineering conglomerate said in a statement Monday that it broke ground for the WRF on Feb. 22.
Megawide and MUL Consortium, composed of Japan’s Toshiba Water Solutions Pvt Ltd. and Pasig-based construction firm LinkEnergie Industries Co. Inc., was tapped to design and build the project.
The Las Piñas WRF is set to be Maynilad’s largest wastewater treatment plant with a capacity of 88 million liters per day (MLD), and is seen to serve about 660,000 customers.
The group plans to complete the project by 2021.
“Once the Las Piñas WRF is operational, it will process raw sewage to conform to DENR standards of cleanliness. It will discharge only clean water into the river system that drains directly to Manila Bay,” LinkEnergie Chief Executive Officer Francisco B. Matias was quoted as saying in a statement.
Megawide noted that this is its first engineering project in wastewater treatment, since the company is mainly involved in engineering, procurement, and construction for residential and office properties as well as airport infrastructure.
“(W)e’re proud to be partner to Maynilad in this undertaking. Together with MUL, we are looking forward to delivering a first-world facility that meets the standards of Maynilad and benefits the greater community,” Megawide Deputy Head for Construction Frederick Tan said in a statement. — Arra B. Francia

Going Solo

Fan Meeting
2019 Park Ji Hoon Asia Fan Meeting
in Manila “First Edition”
March 15, 7 p.m., Araneta Coliseum
SINGERS breaking away from their band to kick off solo careers may find performing alone somewhat unsettling. From sharing the stage with 10 other members, to suddenly exclusively owning it with the expectation that he can carry a whole show by himself can be overwhelming.
But for Korean singer Park Ji Hoon, the 18-month journey with Wanna One was enough to give him the required confidence and the proper training to embark on a solo career.
Wanna One was a boy group formed by entertainment company, CJ E&M, mad up by the best performers from season 2 of Korean talent competition, Produce 101. The temporary team was launched in August 2017 and had its final concert last January. It has established a huge global following in barely two years, staging a sold-out worldwide tour and holding dozens of fans meetings and events in and outside of Seoul. Wanna One was unexpectedly phenomenal.
In a press conference preceding his fan meeting on March 15, the 19-year-old Mr. Ji Hoon admitted that stepping away from the shadows of Wanna One is a bit of a challenge.
“Coming from a group, it is very difficult to be alone. It could be burdensome, but I will try my best as a solo artist,” he said, adding he looks forward to holding a one-man concert soon and having more opportunities to meet his fans. He recently opened his own website, but the Internet site crashed due to the sheer number of users, a testament that his followers, who call themselves “Mays,” are committed to patronizing him.
Although disbanded, Mr. Ji Hoon, said Wanna One members support each other’s solo careers.
For his first fan meeting at the Araneta Coliseum, the former child actor opened with an intense dance to routine to Ed Sheeran’s “Shape of You,” then proceeded with a Question-and-Answer portion, played games with select members of the audience, and personally designed eco bags which were later raffled off, complete with bouquets of roses.
During the two-hour show, he also covered SHINee Taemin’s “Press Your Number” complete with the trademark hyper dance moves, as well as the ballad “Young Twenty.” He also performed a medley of “Wanna” and “11” and “Hide and Seek.” Considering that he was not the lead vocalist in Wanna One, he ably carried himself during the performance.
“I am happy to embark on this Asia tour and be with you,” he told the Araneta crowd.
The fans were waiting Ji Hoon to perform some songs from his upcoming solo album. However, since the release will not be until March 26, he requested that they wait until then.
“I prepared for a lot for this and I look forward to your support,” he said, while keeping mum on the concept and other details about his debut CD. He, however, said that he went to Prague to shoot the music videos.
With Produce X airing soon, Mr. Ji Hoon has this advice to this season’s reality show contenders: “Practice hard and practice well.” As he did. Now, he is reaping the rewards of his hard work as a solo artist. — Cecille Santillan-Visto

One by one, bond markets around the world are flashing same warning

JUST MONTHS after rising bond yields spooked markets, they’re now tumbling to the lowest levels in years to underscore concerns about slowing global growth.
Yields in Australia and New Zealand dropped to record lows, after a closely watched part of the US curve inverted on Friday as investors wager that a recession is coming. Trading volumes in Treasury future were more than double the norm in the Asian morning, while Japan’s 10-year yields fell to the lowest since 2016.
“Bond markets globally, along with dovish central banks, have been telling us a slowdown is on the way,” said Jeffrey Halley, senior market analyst at Oanda Corp., in Singapore. “Some parts of the world will be better equipped than others to handle this. The US can at least cut rates and apply monetary tools, while things could be worse for Europe and Japan, where they cannot.”
Treasuries have led a global debt rally amid bets that a recession and a rate-cutting cycle are coming. The spread between yields on three-month US bills and 10-year notes inverted for the first time since 2007 amid reports showing economic weakness in the US, France and Germany.
Money markets are pricing around a 90% chance that the Federal Reserve will cut rates by 25 basis points by December, followed by another reduction in September 2020. This comes after the central bank projected no hikes this year at its policy meeting last week.
Open interest, a measure of outstanding positions across Treasury bond futures, jumped Friday as the yields on the 10-year cash bond dropped 10 basis points to 2.44%. Hedge funds and other speculators have also cut shorts in 10-year futures after holding record positions as recently as September, according to the latest Commodity Futures Trading Commission data.
“Data is deteriorating globally,” said Tano Pelosi, portfolio manager at Antares Capital in Sydney. “It’s very unlikely that the Fed will hike again for some time.”
Australia’s 10-year bond yields fell as much as eight basis points to 1.756%. New Zealand’s dropped to 1.899%, a record low in data compiled by Bloomberg since 1985. In Japan, the benchmark fell 1.5 basis points to minus 0.095%. Yields on German debt fell below zero for the first time since 2016 last Friday.
Australian bonds have rallied since central bank Governor Philip Lowe pivoted to a neutral stance last month from a long-held view the next move in rates would be up. The local yield curve flattened further, with the difference between three and 10 years narrowing by two basis points to 38 basis points.
The nation’s bond curve will flatten more, Goldman Sachs Group Inc. strategists including Praveen Korapaty wrote in a note. “The RBA may eventually be drawn into a cutting cycle should data deteriorate from here,” they said. “Relative to current pricing we think risk-reward favors curve flatteners.”
EMERGING STRESS
The flight to safety is spurring sell-offs in some parts of emerging Asia. Yields on Indonesian debt due in 10 years climbed five basis points to 7.66% as investors ditch high-beta assets.
The inverted yield curve in the world’s biggest bond market is sending a negative signal for developing-nation assets, according to Win Thin, global head of currency strategy at Brown Brothers Harriman & Co. in New York.
“If sustained, it would signal a likely US recession in the next six to 24 months,” he said. “This is hardly conducive to risk and EM assets, which we see remaining under pressure this week.” — Bloomberg

PPA says unsolicited proposal for Port of General Santos still under review

THE Philippine Ports Authority (PPA) said it is still reviewing the unsolicited proposal by a Davao-based private terminal operator to rehabilitate the Port of General Santos.
“In terms of GenSan, we’re still sorting out ’yung sa engineering also. Because what we want to happen is… make sure na ’yung proposal ng mga proponents [the proposals of the proponents] will be compliant with the (PPA’s) long-term development plan,” PPA General Manager Jay Daniel R. Santiago told reporters in a Mar. 15 chance interview.
Last year, Mr. Santiago said Kudos Trucking Corp. submitted to the PPA an unsolicited proposal to rehabilitate and improve the General Santos Port and add new equipment such as cranes.
“Pag na-submit ’yung engineering, and convinced ’yung engineering group namin doon sa feasibility nung design at compliance nung design sa development plan ng PPA, [Once they submit the engineering, and our engineering group is convinced with the feasibility of the design and its compliance to the development plan of the PPA], then we can now proceed to evaluating it for original proponent status (OPS),” he said, noting they don’t have a target timeline for awarding OPS until Kudos Trucking submits its revised engineering plan.
The PPA is currently reviewing two unsolicited proposals from private groups for government-owned ports, the other being Chelsea Logistics Holdings Corp.’s P11.2-billion plan for the Sasa Port in Davao.
Aside from the two, International Container Terminal Services, Inc. (ICTSI) also submitted last year a letter of intent to the PPA to modernize, operate and maintain the Iloilo Port Complex and the Port of Dumangas in Iloilo.
Mr. Santiago said they are still waiting for the company to submit the financial, technical and legal provisions of its proposal.
“Nag-submit sila ng letter of intent for Iloilo [They gave a letter of intent for Iloilo], but they have yet to submit the meat of the proposal,” he said.
The Razon-led port operator disclosed to the stock exchange last year it is investing P5 billion for the project. — Denise A. Valdez

DMCI’s Kai Garden Residences generates P13-B sales

DMCI HOMES said its Japanese architecture-inspired condominium development in Mandaluyong has posted P13.3 billion in reservation sales as of Feb. 28.
The three-tower development, located along M. Vicente Street, is already 88% sold with only 383 units left from its inventory.
“The robust sales of Kai Garden Residences is encouraging. It inspires us to continue to come up with new products that prioritize the discriminating taste and preferences of our customers,” DMCI Homes Senior Vice President for Sales Florante Ofrecio was quoted as saying in a statement.
Condo units’ gross floor area ranges from 28 to 81.5 square meters, with prices starting at P4.6 million.
DMCI Homes targets to complete the Sugi building by January 2023, Icho building by January 2024, and Hinoki building by June 2024-January 2025.
Kai Garden Residences offers open spaces patterned after a traditional Japanese garden.
“It’s a Japanese-inspired design which seeks to provide a seamless transition from the outdoors to the indoor environment. The Sky Patios and Atriums are strategically positioned so that light and air can naturally flow within the building,” DMCI Homes Senior Architect Fe Moselina said.

Domestic market capitalization of select stock exchanges in Asia Pacific (February 2019)

Domestic market capitalization of select stock exchanges in Asia Pacific

How PSEi member stocks performed — March 25, 2019

Here’s a quick glance at how PSEi stocks fared on Monday, March 25, 2019.

 
Philippine Stock Exchange’s most active stocks by value turnover — March 25, 2019.

Chambers back privatization gains for water

THE Makati Business Club (MBC) said the privatization of water delivery in the Philippines resulted in “indisputably better” services, with the process “considered a model around the world.”
In a statement, the MBC defended the concession system for water delivery even as it joined in the call for “accountability” for the water crisis as well as “long-term solutions” to ensure sustainable water supply for Metro Manila, on both the supply and demand side and measures to speed up the approval process for water projects.
“Makati Business Club supports the efforts that (Metropolitan) Waterworks and Sewerage System, other authorities, and Manila Water Co. are taking to investigate the water shortage that occurred this month in order to alleviate the situation, take steps to avoid or limit a repeat, and determine accountability and responsibility,” it said in a statement.
“MBC recognizes that it is critical for the government, the concessionaires, and other stakeholders to develop long-term solutions for both supply and demand. MBC stands ready with other business organizations to gather business sector inputs and support for these efforts. The most important among these solutions are to prioritize the development of and streamline the approval process for new water sources, but also include more efficient usage.”
“MBC reiterates its confidence in public-private partnerships in general and, in particular, the privatization of Manila’s water system, which is considered a model around the world. Our members suffered with the rest of public, from the shortage of water in our homes and our businesses. But service is indisputably better than before privatization. We are confident in the resolve of the concessionaires and regulators to make all efforts to improve reliability in the months and years ahead.”
The club’s statement was one of two issued Monday by major business groups on the water crisis, after services started to fail in early March in the east zone of Metro Manila, the concession granted to Ayala-controlled Manila Water Co.
In a joint statement issued Monday and signed, among others, by the American Chamber of Commerce, Inc. (AmCham) and the Foundation for Economic Freedom, whose members consist of retired technocrats and economic managers, business groups said they “welcome and fully support the directive of President Duterte to solve the water service disruption in the east zone concession within 150 days.”
“Accordingly, we are encouraged and confident that these interim measures will adequately resolve the water shortage and bring relief to consumers in the shortest possible time,” they added.
The signatories to the statement also included the Asia Pacific Real Estate Association; Financial Executives Institute of the Philippines; the Institute of Corporate Directors; the Management Association of the Philippines; and the Philippine Institute of Certified Public Accountants.
The signatories also noted that the privatization model in the water sector remains a “good” scheme, citing the huge improvement from nearly two decades when the water services were privatized.
“The volume of water saved from leakage is said to be equivalent to the output of a dam such that the great expense in constructing one in the past to cover that same volume was rendered unnecessary. Happily, gone are the waterless days of old. In fact, this privatization is being regarded as a good model before the international community for others to emulate,” they said.
They also urged the government to secure a secondary water source to address the growing needs of Metro Manila and its surrounding areas.
“Many lessons can be learned from this unfortunate episode and, hopefully, they will be employed to further improve the service and avoid a recurrence in the future,” they added. — Janina C. Lim

Budget saga nearing conclusion; bill may be with Palace next week

By Charmaine A. Tadalan
Reporter
THE House of Representatives and the Senate plan to transmit the P3.757-trillion national budget to the Office of the President this week, as agreed during a Monday meeting intended to resolve the budget impasse.
“That’s the common agenda, that’s the bilateral objective — to have this 2019 National Budget sent to Malacañang for the President’s signature, the soonest possible time without any further delay,” Albay-1st district Rep. Edcel C. Lagman told reporters in a chance interview after the meeting.
“The dialogue is in progress. We’re going to meet again tomorrow night at 7:00 p.m. The Senate panel will have to talk with the Senate President. Hopefully, by tomorrow night, we can resolve the impasse. As long as we’re talking there’s light at the end of the tunnel,” he added, noting Senate President Vicente C. Sotto III was not at the meeting.
In a “last-ditch effort” to break the deadlock, the House on March 20 “physically retrieved” the printed copies of the national budget, signed by Speaker Gloria Macapagal-Arroyo, which were transmitted to the Senate on March 11.
House Appropriations Committee chair Rolando G. Andaya, Jr. of the 1st district of Camarines Sur said aside from agreeing to do away with a reenacted budget, the House contingent also explained the budget process to the Senate.
“There are no more contentious points. We had a very lively conversation. We were able to explain both our sides in a very conducive manner for understanding at hopefully, maybe tomorrow, we’ll be able to come to an agreement,” Mr. Andaya said in a chance interview on Monday.
On the issue of lump sum appropriations, he said: “We explained to each other the history of what we did. There was some re-visiting of practices (from similar situations) in 1987,” he said.
The lump sums underwent a process of “itemization” by members of the House after the bicameral conference committee ratified the document, which became a point of contention between both chambers. The Senate is insisting on the version agreed by its representatives in bicameral session, while the House claims the itemization of lump sums minimizes corruption.
Also present during the meeting were San Juan Rep. Ronaldo B. Zamora and Senators Panfilo M. Lacson and Loren B. Legarda. The latter chairs the Finance committee. Mr. Andaya noted that Mr. Lagman and Mr. Zamora were chosen for the chamber’s three-man team for their experience in budget legislation.
He said the panel hopes to transmit the budget to President Rodrigo R. Duterte “before the 29th.”
The Executive branch, meanwhile, was also represented at the meeting by the Department of Budget and Management. “We were with the DBM earlier and we were asking for their opinion about the best time to pass the Budget and they said we need to take advantage of the good weather window (for construction),” Mr. Andaya said.
The Senate has alleged that the House realigned parts of the budget of the Department of Public Works and Highways and the Department of Health, amounting to P79 billion and P15 billion, respectively, after the Feb. 8 ratification.
Mr. Andaya said the Senate also made P75 billion in “post-bicam realignments.”
The budget impasse has resulted in the reenactment of the budget for the first quarter of 2019, which prompted the Development Budget Coordination Committee to slash its growth forecast for 2019 gross domestic product (GDP) to 6-7% from 7-8%. The National Economic and Development Authority, meanwhile, said GDP growth will decline to 6.1-6.3% if the budget is reenacted until April and 4.9-5.1% if until August.

SSS angling for new contribution hikes to fund maternity benefits

THE Social Security System (SSS) said the net impact of expanded maternity benefits will subtract a year from its actuarial fund life, and proposed a new round of hikes in member contribution rates to fund its increased commitments.
In a news conference on Monday, the pension fund said fund life is now estimated to run to 2044 if SSS pays out expanded maternity benefits under the new law if it does not access new sources of funding.
“Without funding, if the social security fund absorbs the cost, it… will shorten our fund life by one more year, so we’re now at 2044,” SSS Senior Vice President and Chief Actuary Edgar B. Cruz said on Monday.
He added that the fund will have to disburse P13.5 billion during the first year of implementation of the expanded maternity benefits, more than double the P6 billion allotted in previous years.
Republic Act (RA) No. 11210 or the Expanded Maternity Leave (EML) Law was signed by President Rodrigo R. Duterte in February, increasing paid maternity leave to 105 days from the current 60 days.
Under the new law, qualified members will receive P70,000 worth of maternity benefits regardless of the means of the child’s delivery, from the previous P32,000 for normal delivery.
Aurora C. Ignacio, SSS officer-in-charge, said the fund is “hopeful” it will be allowed to increase contributions rates again beyond the latest round of adjustments hiking member contributions.
“What we hope for after the number of years that we will be allowed to give the one [percentage point increase] every other year is to increase to cover the maternity benefits,” Ms. Ignacio said. “We were also allowed to do actuarial evaluation every three years. For now, we will try to cover with whatever we have.”
She added that the SSS can conduct an actuarial study earlier than the scheduled one in 2021 to determine whether the pension fund should increase contributions to fund the additional benefits.
According to its estimates, the pension fund will have to increase contributions by half a percentage point to cover for the expanded maternity benefits.
“We can’t increase benefits without a corresponding increase in contributions. If we don’t the fund life will suffer,” Mr. Cruz said.
RA No. 11199 or the Social Security Act of 2018 was signed by Mr. Duterte on Feb. 7, allowing the Social Security Commission or the policy-making body of the SSS to increase the contribution rate without the approval of the president.
The contribution rate will be increased by a percentage point starting April to 12%, until it hits 15% by 2025, from the current 11%.
It also gradually raises the minimum and maximum monthly salary credits (MSC) every other year starting next month at P2,000 and P20,000, respectively, to P5,000 and P35,000 by 2025, from P1,000 and P16,000 currently.
The increased contribution rate and MSC are expected to increase the actuarial life of the SSS to 2045 from 2032.
Voltaire P. Agas, SSS senior vice president and chief legal counsel, said the implementing rules and regulations (IRR) of the EML Law are being drafted by the SSS together with the Department of Labor and Employment.
“We hope they can provide the IRR by Labor Day,” he said. — Karl Angelo N. Vidal

Palace: Normal to pledge resources in China loan, default unlikely

MALACAÑANG said on Monday that many features of a loan agreement with China to fund the P3.6-billion Chico River Pump Irrigation Project were “standard” for such deals, including the pledge of Philippine natural resources as security for the loan.
Nevertheless, it expressed confidence that the security will never be foreclosed on because the Philippines is unlikely to default on the loan.
The President’s Spokesperson Salvador S. Panelo made the statement at a news conference Monday after Supreme Court Senior Associate Justice Antonio T. Carpio aired concerns about the loan security.
Mr. Carpio has said, citing the agreement, that if the government defaults on its loan, China can seize Philippine assets in the disputed West Philippine Sea, including the gas and oil-rich Reed Bank.
“The onerous conditions that some are saying incorporated in the contract is a standard between the lender and the borrower,” Mr. Panelo said when asked about the use of natural resources as collateral.
Mr. Panelo said there was “nothing wrong” with using the country’s natural resources as collateral.
“I don’t see anything wrong because I know it will never happen. That is precisely why I am saying that perhaps the economic managers who entered into a contract know that it will never happen,” he said.
“Just like bank institutions when they lend they impose terms to make sure na mababayaran sila (that they will be paid). Eh siguro itong mga pumasok diyan, mga (Maybe when they agreed to the loan) economic managers (thought that default) never namang mangyayari (will never happen), kaya binigay nila, (which is why they agreed to the terms).”
He said that the Philippines is “known for paying its loans.”
“Number one, bakit naman tayo magde-default? (why will we default?) We never defaulted on any obligations to any international organization with respect to loans of our country,” he said.
Mr. Panelo also reiterated that the Philippine government “cannot do anything” about China’s moves in the West Philippine Sea.
“We can only protest like any other (claimant) country, like Vietnam and others… You want us to declare war against them?” he said following reports that Filipino fishermen have been harassed in the West Philippine Sea.
Mr. Panelo added that the government will not go along with China’s treatment of fishermen. “If there is a violation, then we will have to go back to them (and point out violations),” he said.
Mr. Panelo also questioned the filing of a complaint by former Foreign Affairs Secretary Albert F. del Rosario and former Ombudsman Conchita Carpio-Morales against Chinese President Xi Jinping and other officials before the International Criminal Court (ICC) for “crimes against humanity” allegedly committed in the West Philippine Sea.
He said Mr. Del Rosario “did not make noise while he was in office, but is now acting when he is out of power.”
On Ms. Carpio-Morales’ involvement, Mr. Panelo said: “I have no problems with her. She filed it out of righteous indignation.” — Arjay L. Balinbin

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