Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 11317

Moody’s says overheating farfetched; FMIC, UA&P see Q1 growth past 7%

By Melissa Luz T. Lopez
Senior Reporter
THE PHILIPPINE ECONOMY is far from overheating, with growth poised to clock faster even as inflation quickens further, according to a global debt watcher and a monthly analysis released on Monday.
Moody’s Investors Service allayed fears that the Philippine economy could overheat, noting that growth can be expected to be sustained over the medium term as domestic activity is still robust.
“We believe that overheating risks in the Philippines are not yet material,” the credit rater said in a report on Monday.
“Our view is based on expectations that current inflationary pressures are in part due to transitory factors, infrastructure investment and favorable demographics will lift potential growth to meet rapid demand growth and the external position will remain roughly balanced.”
Moody’s kept its “Baa2” rating with a “stable” outlook for the Philippines in June last year, but aired concerns on whether the economy can absorb ramped up infrastructure spending under the “Build, Build, Build” program of the Duterte administration.
The debt watcher had said the P8-trillion infrastructure spending plan is “unlikely to be achieved in… entirety” but should still provide substantial boost to gross domestic product (GDP) growth.
Now, Moody’s said an increasing working-age population, rising productivity and better infrastructure should be able to “mitigate overheating risks” and boost long-term potential output.
Moody’s expects Philippine GDP to expand by 6.8% this year, faster than 2017’s 6.7% though still short of the government’s 7-8% target.
Faster price increases as well as double-digit credit growth can likewise be absorbed by strong GDP growth, as well as a sound and stable financial system.
Inflation averaged 3.7% for the first two months of 2018, factoring in higher fuel prices, a weaker peso, and the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Meanwhile, bank lending jumped by another 19.5% in February from 19% the preceding month, with the additional credit flowing to production activities.
“Currently, we do not believe that strong credit growth poses material financial stability risks for the Philippines given the banking system’s buffers, including high capitalization, reliance on deposit funding and benign asset quality,” the credit rater explained, while citing a measly share of non-performing loans despite the steady rise in borrowings.
FASTER GROWTH
Robust factory output and construction likely fuelled an above-seven percent GDP growth in the first quarter, analysts at the First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said in a separate report.
Record foreign direct investment inflows and the local infrastructure spending push gave a “strong start” to the Philippine economy, putting it on track to hit the government’s 7-8% growth goal for 2018.
“[W]e see GDP growth accelerating to beyond seven percent pace in Q1, given the strong multiplier effects of job growth, and robust manufacturing and construction sectors,” the economists said in the March issue of The Market Call.
This compares to The Market Call’s 7-7.5% forecast for the entire year.
The Philippine Statistics Authority is scheduled to report first-quarter GDP data in the morning of May 10, hours ahead of the central bank’s third monetary policy review for 2018.
Citing government data, FMIC and UA&P said 2.4 million jobs were created in January while manufacturing output surged by 21.9% year-on-year.
At the same time, they noted that concerns have since shifted towards faster inflation driven largely by the TRAIN which took effect this year.
They see inflation clocking 4.1% for March and April, which would mark fresh three-year highs if realized.
The central bank has said that monetary authorities expect prices to keep rising in the next few months, but noted that such pressures are seen to be temporary and do not warrant interest rate adjustments for now.

Revenue loss feared under 2nd tax reform

THE HOUSE of Representatives’ version of the second tax reform package could yield a net revenue loss for at least two years, a senior Finance official has warned.
Finance Undersecretary Karl Kendrick T. Chua noted that while the corporate income tax cut to 20% from 30% will be automatic though gradual, reduction of fiscal incentives deemed redundant will start only two years after the envisioned law takes effect.
House Bill No. 7458 filed on March 21 by Reps. Dakila Carlo E. Cua of Quirino; Aurelio D. Gonzales, Jr. of Pampanga’s third district and Raneo E. Abu of Batangas’ second district provides for a percentage point cut yearly without the Finance department’s condition that each cut be premised on a corresponding revenue increase from clipped perks.
“It will be a loss because the reduction in the corporate income tax rate is automatic. However, our rationalization in fiscal incentives begins two years later because of the two-year transition. So in the first two years, 2019 and 2020, it’s a definite loss,” Mr. Chua told reporters on Tuesday last week.
“Our estimate is P30 billion in 2019 and P67 billion in 2020,” Mr. Chua added.
“And then in 2021, the loss will be P113 billion. However the rationalization will kick in, so that loss will be much lower.” — EJCT

SE Asia’s competition watchdogs train sights on Grab-Uber deal

MANILA/KUALA LUMPUR — The Philippines and Malaysia said on Monday they will look into whether Uber Technologies’ move to sell its Southeast Asian business to ride-hailing rival Grab hinders competition, days after Singapore began a probe into the deal on similar concerns.
The expanded scrutiny of the deal in Southeast Asia could pose a major hurdle to the US firm’s attempt to improve profitability by exiting its loss-making regional operation. It also comes as Grab is set to face tougher competition from Indonesian rival Go-Jek.
In a rare move, Singapore last week proposed interim measures to require Uber and Grab to maintain their pre-transaction independent pricing until it completes a review of the deal, saying it had “reasonable grounds” to suspect that competition had been infringed.
“The Grab-Uber acquisition is likely to have a far reaching impact on the riding public and the transportation services. As such, the PCC is looking at the deal closely,” the Philippine Competition Commission (PCC) said in a statement.
It said the deal will put Grab in a virtual monopoly in the ride-sharing market, and its review will determine whether the transaction substantially reduces competition, adding it would meet representatives of Grab and Uber on Monday.
Should anti-competitive concerns arise, Uber and Grab may propose commitments to remedy.
In the event they will not submit voluntarily, the commission could open a case that may block the deal, it said.
Malaysia also said on Monday that it will monitor Grab for possible anti-competitive behavior.
“We won’t take it lightly. We will monitor this because it is still early days and we don’t know what will happen next,” said government minister Nancy Shukri, whose portfolio oversees the public transport licensing authority.
“We have stressed that if there is any anti-competitive behavior, the Competition Act will come into force. We have spelt this out to them,” Ms. Nancy said, referring to a meeting with Grab representatives last Monday.
In Indonesia, the anti-monopoly agency said it can’t say yet whether it will investigate the deal, as there are 30 days after the deal is finalized to assess it.
ASSURANCES ON PRICING
Uber and Grab announced the deal a week ago, marking the US company’s second retreat from an Asian market. It earlier sold off its operations in China.
Ms. Nancy said Grab, which is valued at about $6 billion, had offered assurances during their meeting that there would be no unfair pricing, nor would it increase its fares for now.
After a costly market share battle in Southeast Asia, where Uber has invested $700 million, its move to exit the region is widely expected to give the US firm more firepower to focus on other markets including India.
But competition in the region is set to grow again, as Indonesia’s Go-Jek plans to launch its first expansion to another country in the region in coming weeks, according to an internal company email seen by Reuters.
Singapore’s Straits Times reported on Monday Go-Jek plans to launch its services in Singapore, the Philippines, Thailand and Vietnam.
Johannes Benjamin R. Bernabe, PCC commissioner, told Reuters that the Philippine government is processing at least three applications for ride-sharing services. It also caps the number of ride-sharing vehicles to 65,000 across all brands and reviews them every three months.
Grab, which operates in 195 cities in eight Southeast Asian countries, didn’t have immediate comment. — Reuters

Manila’s year in music: sold-out concerts, returning faves, and a diva finally arrives


THE PHILIPPINE capital has been steadily making a name for itself as a must-go destination for big name foreign acts as the past few years saw Manila welcome the likes of Katy Perry (who performed in her third Manila concert for her Witness The Tour yesterday), Ariana Grande, Britney Spears, and Coldplay among many others.
The rest of this year proves no different as a host of musical artists are set to come to Manila. Here’s a rundown of some of them:
APRIL
Los Angeles-based pop band LANY is returning to Manila for a third time after its successful 2017 series of mall shows and performing in the Wanderland music festival the same year. This time around, the group — known for hit singles such as “ILYSB” (I Love You So Bad) and “Bad, Bad, Bad” — is performing at the Araneta Coliseum on April 5 and 6, 8 p.m. The show is already sold-out.
British crooner Ed Sheeran is finally continuing his Asia Tour, which includes a stop in Manila, which had been suspended because of health issues. Originally scheduled for Nov. 7, 2017 at the Mall of Asia Concert Grounds, Mr. Sheeran’s 2018 World Tour concert featuring songs from his latest album Divide, has been rescheduled for April 8 at the same venue at 8 p.m. Tickets are scarce but are still available at smtickets.com.
For the fourth time, Irish rock band The Script (“The Man Who Can’t Be Moved,” “For the First Time”) is playing in Manila on April 14 at the SM Mall of Asia Arena to promote its newest album, Freedom Child. Tickets are still available at smtickets.com.
MAY
Best known for being a member of British boy group One Direction, Harry Styles is currently making a name for himself as a solo artist with the 2017 release of his self-titled debut album which spawned hits such as “Sign of the Times” and “Two Ghosts.” Mr. Styles is scheduled to perform on May 1 at the Mall of Asia Arena. The show has already sold out.
American singer Bruno Mars is bringing his 24K Magic to the Philippines for a two-day sold-out concert at the Mall of Asia Arena on May 3 and 4. So for those who managed to score tickets, hold one to them as you prepare to dance your way to hits like “Finesse” and “That’s What I Like.”
JUNE
American rock band Boyce Avenue, known for singing covers of songs such as “Closer” by the Chainsmokers, will be singing in Manila on June 1, 8 p.m. at the Smart Araneta Coliseum in Quezon City. The Manzano brothers — Alejandro Luis, Fabian Rafael and Daniel Enrique — will be joined onstage by Filipino singer Moira dela Torre, known for songs like “Malaya” and “Titibo-tibo.” Tickets are available at ticketnet.com.ph.
Meanwhile, Air Supply has made Manila a stop on its Over Asia 2018 tour. The show will be held on June 1, 8 p.m., at the Newport Performing Arts Theater at Resorts World Manila. Tickets are available at ticketworld.com.ph
Another member of One Direction who has embarked on a solo career, Niall Horan, is following the lead of Harry Styles as he will also perform in Manila on June 10 at the SM Mall of Asia Arena as part of his Flicker World Tour 2018, to promote his debut album Flicker, and its songs including “This Town” and “Too Much To Ask.” Tickets are available at smtickets.com.
Japanese rock band, SCANDAL, is performing on June 24 at the SMX Convention Center at the SM Mall of Asia. The concert promoting its newest album, Honey, will be preceded by a fan meet on June 23. SCANDAL is known for singing songs of popular animes such as Fullmetal Alchemist Brotherhood (“Shunkan Sentimental”) and Bleach (“Harukaze”). Tickets are still available on smtickets.com.
JULY
The much-anticipated concert of Canadian diva Celine Dion, will have two performances on July 19 and 20 at the SM Mall of Asia Arena. Ms. Dion was supposed to visit Manila in 2014 but the death of her husband, Rene Angelil, put a stop to those plans. Now, after four years, Filipino fans who grew up singing “My Heart Will Go On” and “The Power of Love” among many others will now have a chance to hear her sing in person. While the July 19 concert tickets are completely sold out, tickets to her July 20 performance are still available.
AUGUST
American singer Halsey is bringing her Hopeless Fountain Kingdom tour to Manila on Aug. 10 at the Smart Araneta Coliseum. Known for songs such as “Closer” which she sung with American duo The Chainsmokers, Halsey is promoting her second album Hopeless Fountain Kingdom which introduced songs such as “Bad at Love.” Ticket prices and availability are to be announced soon on ticketnet.com.ph so keep your eyes — and wallets — open.
American rock band Paramore will be holding its rescheduled Manila concert on Aug. 23. The original Feb. 18 show was canceled after lead singer Hayley Williams suffered from a throat and upper respiratory tract infection. The tour promotes the group’s newest album, After Laughter, which includes the singles “Fake Happy” and “Rose-Colored Boy.” The rescheduled show has already sold out.
“We were so ready to get back to Manila because every show we’ve played for our Filipino friends has been a wild time. We’re coming back for you so please hang on ’til August,” said Ms. Williams in the concert postponement announcement posted on the SM Tickets website.
OCTOBER
English balladeer Sam Smith, the man who made millions of people cry with his latest hit single “Too Good at Goodbyes,” is coming back to the Philippines (he first visited Manila in 2015) for the Thrill of it All tour promoting his second album of the same name. Tickets will be available starting April 11, 10 a.m., at smtickets.com.

Virtual reality meets big screen in Ready Player One

LOS ANGELES — In Steven Spielberg’s new movie Ready Player One, disgruntled citizens in the year 2045 don virtual reality headsets to enter a digital universe where they can dance at hot clubs or race fancy cars through the streets of New York.
Back in the real world in 2018, VR enthusiasts hope the fast-paced action movie which entered worldwide theaters last week will spark new interest in the technology and help boost what is now a niche market.
Ready Player One, based on a novel by Ernest Cline, features a group of teenagers who spend their days in VR goggles, suits and gloves to maneuver their avatars through a computerized wonderland called the Oasis. It is filled with infinite possibilities for working, learning, and socializing.
“You have a choice to spend all your time there, or make connections in the real world with real people, real eye contact,” Spielberg told Reuters in an interview. “In a way, our story is a cautionary tale as well as a great adventure.”
The movie’s hero, Wade Watts (Tye Sheridan), visits the Oasis to escape his miserable life in an Ohio trailer park. As his refuge comes under threat, Watts joins other avatars in a contest that could give them the power to protect the virtual world.
Existing VR capabilities are far more limited than what is portrayed in the film. For entertainment, VR’s most prevalent use is in gaming, where players can battle in 360-degree settings seen through headsets from Facebook’s Oculus unit, HTC Corp. and others.
Spielberg was among VR’s early adopters. He had been toying with a headset at home before he made Ready Player One, and he incorporated the technology behind the scenes. To appear in the Oasis, the actors had to perform in a nearly empty white room wearing motion-capture outfits so their movements could be transferred to digitally created sets. Spielberg had the Oasis sets re-built in VR.
“Everybody had a chance to put on the headsets, and suddenly, wow, there you are in the set itself,” he said. “It gave a kind of orientation so they weren’t just acting in the abstract.”
The film, which is being distributed by Time Warner, Inc.’s Warner Bros., is shown on a traditional movie screen, no headset required. VR supporters hope Ready Player One, filled with special effects and backed by an upbeat 1980s rock soundtrack, thrills audiences and piques their curiosity.
Several related VR experiences, such as a trip inside the movie’s dance club, will be offered on the HTC Vive headset through an official partnership with the film. People who do not own the equipment can head to VR arcades to try out the technology.
“We are really are excited to show people VR is not something futuristic,” said JB McRee, HTC Vive’s senior manager of product marketing. “It really is something that exists now.”
Actress Lena Waithe, who plays an auto mechanic in the Oasis, said she enjoys VR but encouraged limits to time spent in a virtual world.
“It’s fascinating, but it can be a little dangerous if you play in it too much,” she said. “There needs to be a bit of balance. I think that’s the message we are trying to get through with the film.” — Reuters

MetroPac Water gains a foothold in Vietnam

METRO PACIFIC Investments Corp. (MPIC) has expanded its footprint in Vietnam with the acquisition of a significant interest in a water company.
In a disclosure to the stock exchange on Monday, the infrastructure conglomerate announced that subsidiary MetroPac Water Investments Corp. executed a share purchase agreement (SPA) to secure 49% of Tuan Loc Water Resources Investment Joint Stock Co. (TLW) for P1.988 billion.
The completion of the transaction is subject to certain closing conditions. Under the SPA, the parties have until June 30, 2018 to close the deal.
One of the largest water companies in Vietnam, TLW has an operating capacity of 310 million liters per day (MLD) and a billed volume of approximately 87 MLD as of end 2017. Majority of its capacity is supplied to industrial parks.
TLW’s main project assets are treatment plants in Dong Nai Province, the manufacturing satellite of Ho Chi Minh City and the location of the new Long Thanh International Airport, and Nghe An Province, the largest province in Vietnam by area and has a population of about 3.1 million people.
The investment allowed MPIC to expand its business in Vietnam where it acquired a 45% stake in water company BOO Phu Ninh Water Treatment Plant Joint Stock Company (PNW) for P615 million last November.
Metro Pacific, with the expertise of its unit Maynilad Water Services, Inc., has been looking to expand its water venture in Southeast Asia.
The local conglomerate has been broadening its presence in the region, led by the tollways group which has invested in Thailand, Vietnam and Indonesia in line with plans to establish a Pan-ASEAN company.
MPIC reported a 17% rise in consolidated core net income to P14.1 billion last year from P12.1 billion in 2016 despite regulatory uncertainty as a result of delays in tariff hikes.
Earnings got a boost from an expanded power portfolio following further investment in Beacon Electric Asset Holdings, Inc., significant traffic growth on all roads held by Metro Pacific Tollways Corp.; and continuing growth in the hospital group.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.
Shares in MPIC added 11 centavos or 2.10% to settle at P5.35 each. — Krista Angela M. Montealegre

AboitizPower creates company for solar rooftop business

ABOITIZ Power Corp. (AboitizPower) is entering the solar rooftop business and has put up a new company that is considering projects in Luzon and Visayas this year, the power generation and distribution company told the stock exchange.
“We have been in the power industry for more than 80 years. This gives us a wealth of knowledge and technical capability that we can share to our customers who want to go into solar,” said AboitizPower President Antonio R. Moraza in a statement.
The new company, named Aboitiz Power Distributed Energy, Inc. or APX, is looking at completing several projects in 2018, “with a target to integrate it closely with the group’s existing open access customers,” the parent company said.
AboitizPower said APX is aimed at further expanding the group’s renewable energy portfolio under its renewable energy brand Cleanergy.
“The positive response from customers affirms our view that distributed energy technology such as rooftop solar complements existing products and services that the AboitizPower group provides,” said APX General Manager Jose Rafael M. Mendoza in a statement.
AboitizPower’s foray into solar energy came in 2016 with its 59-megawatt peak (MWp) San Carlos Sun Power, Inc. (Sacasun) project San Carlos City, Negros Occidental.
The company said it has 1,272 MW of net sellable capacity, together with its partners, through its Cleanergy brand.
AboitizPower’s renewable energy plants include its geothermal, run-of-river hydro, and large hydropower facilities all over the country. The company said it is pushing for a balanced mix strategy by maximizing the Cleanergy brand while taking advantage of the reliability and cost-efficiency of thermal power plants.
APX’s planned integration with AboitizPower’s open access customers comes as competition in the business segment is heightened by the continued suspension of rules that are meant to allow retail electricity suppliers to serve those whose average monthly consumption is 750 kilowatts or less.
In 2017, AboitizPower reported a 2% rise in net income to P20.4 billion, as its bottom line was affected by its decision to halt operations of Aseagas Corp. The company’s core net income grew 13% to P23.3 billion in 2017. — Victor V. Saulon

Ready Player One more-than-ready atop box office

LOS ANGELES — Steven Spielberg’s latest blockbuster topped the domestic box office over the four-day holiday weekend.
Warner Bros.’ Ready Player One debuted in line with recent projections of $53 million from 4,324 locations. The film opened Thursday, getting a head start over its fellow weekend releases, Tyler Perry’s Acrimony and God’s Not Dead: A Light in Darkness.
The virtual reality fantasy, which currently holds an A- CinemaScore and 76% on Rotten Tomatoes, released internationally with $128 million since it opened on Tuesday, bringing its worldwide total up to a solid $181.2 million. The film based on Ernest Cline’s novel stars Tye Sheridan, Olivia Cooke, Ben Mendelsohn, Mark Rylance, Simon Pegg and T.J. Miller.
Critics have suggested that Ready Player One — in which Wade encounters 1980s pop culture icons including Freddy Krueger — is something of a cinematic autobiography for Spielberg, the veteran director of a number of successes including E.T. and Jaws.
Tyler Perry’s Acrimony — Tyler Perry’s 19th collaboration with Lionsgate — secured second place with $17 million in 2,006 locations. The film stars Taraji P. Henson as a vengeful wife.
Meanwhile, the third installment of the God’s Not Dead franchise premiered with $2.6 million in 1,693 locations.
Marvel’s Black Panther remains a powerhouse in the No. 3 slot, taking in $11 million in 2,988 locations. The Marvel smash hit, starring Chadwick Boseman, Michael B. Jordan and Lupita Nyong’o, had already overtaken The Avengers (2012) as the highest-grossing superhero film in US history. Telling the story of Wakanda’s King T’Challa, Black Panther was also the first film since Avatar (2009) to notch five consecutive top spots. The blockbuster crossed the $650-million mark at the North American box office, making it the fifth-highest release in the US of all time. It looks to shortly become the fourth-highest release after it passes Jurassic World, which made $652 million. Currently, Titanic is at No. 3 with $659 million.
Over the Easter weekend, the Christian drama I Can Only Imagine stayed strong in fourth place with $10.5 million in 2,648 locations, totaling $55.3 million in its three weeks of release. Another faith-based film, Paul, Apostle of Christ saw $3.5 million at 1,473 locations. In two weeks, the film has made $11.5 million.
Rounding out the top five is Universal’s Pacific Rim Uprising with $9.2 million in 3,708 locations. The sci-fi actioner, which held the top spot last weekend, has taken in $45.6 million domestically. On par with its first weekend, the sequel to 2013’s Pacific Rim had an impressive international turnout with $22.2 million in 63 markets, bringing its international total up to $96.6 million.
Continuing its limited release, Wes Anderson’s Isle of Dogs made $2.9 million for a per screen average of $17,420 after expanding to 165 locations. Fox Searchlight Pictures’ stop-motion animation has grossed $5.9 million and looks to cross the $6 million mark in the upcoming week. Next weekend, Isle of Dogs will spread to between 450 and 500 locations.
In total, the box office is down 21.2% compared to the same weekend last year, while the 2018 North American box office is down 3.8% from 2017.
However, Paul Dergarabedian, a media analyst at comScore, says Ready Player One looks to have promising playability at the box office ahead of the debuts of Blockers and A Quiet Place next week and Avengers Infinity War at the end of April.
“After a rough month of March at the box office, down 24.1% vs. last year, Ready Player One will hopefully portend bigger and better things to come at the April box office,” he said.
Rounding out the top 10 were: Sherlock Gnomes ($7 million); Love, Simon ($4.8 million); Tomb Raider ($4.7 million); A Wrinkle in Time ($4.7 million); and, Paul, Apostle of Christ ($3.5 million). — Reuters/AFP

Megaworld planning offshore bond issuance

MEGAWORLD CORP. is planning to tap the offshore bond market, announcing on Monday a series of road shows in Singapore and Hong Kong.
In a disclosure to the stock exchange, the Andrew L. Tan-led firm said it has engaged American investment bank and financial services firm J.P. Morgan as sole book runner “to arrange a series of fixed income investors meetings” in Singapore and Hong Kong. The road shows will start today (April 3).
The listed property developer is looking to issue Regulation S dollar-denominated securities after the road shows.
“A proposed Regulation S USD denominated securities offering may follow, subject to market conditions,” Megaworld said.
Regulation S refers to securities that are not required to be registered under the United States Securities Act, and may be offered in the Eurobond market. The securities may not be offered or sold in the US.
This offering will mark Megaworld’s return to the offshore bond market after five years. The company had raised $250 million from an offshore bond sale in 2013. The 10-year bonds had a coupon rate of 4.25% per annum, and were listed at the Singapore Exchange Securities Trading Ltd.
Prior to this, Megaworld also raised $200 million worth of seven-year bonds in the offshore bond market in 2011. The issuance had an interest rate of 6.75% per annum.
The company has committed to spend P60 billion in capital expenditures this year, the bulk of which will go to the development of more residential, office, and commercial projects inside its townships.
Megaworld currently has 23 integrated estates across the Philippines, including the Maple Grove in General Trias, Cavite, Capital Town in San Fernando, Pampanga, and McKinley Hill, McKinley West, Uptown Bonifacio, and Forbes Town all in Taguig City.
Residential sales account for 70% of Megaworld’s revenues, while the rest are from office and commercial leasing, and the leisure segment.
By 2020, the firm targets to book P20 billion in annual rental income, split between offices and commercial space leasing. To achieve this, Megaworld is ramping up the development of lifestyle malls to bring its total network to 28 from the current 15 in the next two years.
Megaworld delivered a 12.7% increase in its net income attributable to the parent to P12.8 billion in 2017, on the back of a 7.7% climb in revenues to P50.4 billion. The firm is the property arm of Alliance Global Group, Inc., which also has core interests in liquor, gaming, and quick service restaurant.
Shares in Megaworld climbed 10 centavos or 2.13% to close at P4.79 apiece at the Philippine Stock Exchange on Monday. — Arra B. Francia

Gov’t partially awards Treasury bill offer

THE GOVERNMENT made a partial award of the Treasury bills (T-bill) it planned to raise on Monday, rejecting all bids for the longer tenors, as investors expect faster inflation print in March.
The Bureau of the Treasury’s auction yesterday was met with tenders worth P13.63 billion, which left the total P15-billion offering undersubscribed.
Broken down, the government borrowed just P3.265 billion in 91-day bills, below the programmed P5 billion even as total bids reached P8.725 billion. The paper fetched an average yield of 3.191%, up from the 2.995% quoted at last week’s auction.
However, the Treasury rejected all the bids put up for the 182-day tenor which totalled P2.663 billion, also short of its P4-billion offer.
The government likewise rejected all bids for the 364-day T-bills as the offer attracted only P2.243 billion in demand, below the programmed borrowing of P6 billion.
At the secondary market before the auction, the three-month papers were quoted at 3.3332%, while the six-month tenor fetched 3.4614%. The yield on the one-year T-bill was at 4.1329%.
As trading closed, the 91- and 182-day tenors saw their yields inch down to 3.0554% and 3.169%, respectively, while the rate of the 364-day T-bill finished steady.
National Treasurer Rosalia V. De Leon told reporters shortly after the auction that the government decided to reject bids for the three-month and six-month papers as investors priced in their expectations for the March inflation print scheduled to be released on Thursday.
A BusinessWorld poll of nine economists showed that inflation likely quickened to 4.2% last month. This compares to the 3.9% rate logged in February and the adjusted 3.1% for March 2017.
If realized, this would settle above the 2-4% target range set by the Bangko Sentral ng Pilipinas (BSP), but will fall within the 3.8-4.6% forecast given late last week.
“[With the] median forecast of 4.2%, they’re expecting the next policy rate from the BSP will move,” Ms. De Leon said, adding that investors also priced in the volume to be offered by the central bank under its term deposit facility this week.
Meanwhile, a bond trader said by phone that the Treasury rejected bids for the six-month and one-year papers because of its “very good cash position.”
“[T]hat has been supported by the tax reform law. They essentially have the flexibility to look at the auctions and pick out which is the optimal rate and volume for them,” the trader said.
“On the other end, the reason why investors asked for higher rates is that they’re trying to find the proper price for the additional supply, especially for the short date. And of course, we still have concerns about inflation. — Karl Angelo N. Vidal

Seeing HK as the locals do

HONG KONG has always been a favorite out-of-the-country haunt of Filipinos and the numbers prove it: from December to January 2017, 894,489 Filipinos visited “Asia’s World City,” a 13.1% increase from its year-to-date numbers.
The Philippines is the city’s sixth largest market (excluding mainland China) according to the most recent statistics by Hong Kong Tourism Board (HKTB). (In total, Hong Kong welcomed 58.47 million tourists in 2017.)
But beyond its most famous sites — Hong Kong Disneyland and Ocean Park Hong Kong, among others — the HKTB is making a push for tourists to see Hong Kong through the eyes of a local, and that’s what model/blogger Kelly Misa experienced during a trip with her family upon the invitation of HKTB.
“Hong Kong is very much like my second home. That’s why I found it so surprising because even though I’ve lived there for so long, I discovered so much during the trip,” Ms. Misa told BusinessWorld in a phone interview on February.
She worked as a model in Hong Kong and was in and out of the city for much of 2004 until 2010 but she said she didn’t have time to explore the locale as much as she did on this latest trip.
“It’s funny because even though I lived in Hong Kong before, I was still too touristy [then]. I never really got to experience Hong Kong like a local,” she said.
Ms. Misa told how she dined in one of the oldest tea houses in Hong Kong, Lin Heung Tea House which opened in 1962, located in 162 Wellington St. There, she experienced eating dimsum the traditional way — choosing a dimsum from a cart which passes around the store.
But Ms. Misa isn’t the only one seeing Hong Kong through the eyes of the local as the HKTB is making a push towards promoting popular destinations for Hong Kongers in order to “connect better with today’s travelers,” Simon Wong, regional director for Southeast Asia of the HKTB, told BusinessWorld via e-mail in March.
“While Hong Kong continues to be a destination of choice for shopping and entertainment, we also hope to connect better with today’s travelers, who constantly seek local authenticity and new experiences. It is crucial for us to identify and communicate the local uniqueness of Hong Kong. With this in mind, we developed and continue to develop strategies that highlight the different dimensions this remarkable city has to offer,” he explained.
While known for its theme parks and for its singular shopping choices, Mr. Wong said there is so much more to see in the city.
“The city’s vibrant food scene, fascinating cosmopolitan life and efficient infrastructures juxtaposed against the backdrop of its ancient templates and breathtaking natural wonders, offers visitors a delightful contrast of experiences,” he said.
One of the examples of the vibrance of the food scene is Lan Fong Yuen, a cha chaan teng (café) which opened in 1952 located in 2 Gage St. which serves — among others — a traditional Hong Kong breakfast: noodle soup with luncheon meat on top and Yuenyeung tea, a combination of coffee and milk tea. The beverage is called kopi cham in Malaysia.
Another less well-known place (for tourists) that’s worth visiting is the Sai Wan swimming shed in the Hong Kong Harbor. The shed was used mostly in 1960s and ’70s when locals would go down and use the facilities to swim in the harbor. Nowadays, it has become a popular place for photographers although locals living in the area is still use it for swimming.
Mr. Wong said that since the millennial contingent has matured, Hong Kong needed to “engage [this market] through offering authentic experiences in local districts and urging them to discover hidden gems and artsy spots.”
“People may have visited Hong Kong so many times but there’s still so much to see. I never get tired of going there,” said Ms. Misa. — Zsarlene B. Chua

Maynilad to spend P1.7B on wastewater projects

MAYNILAD WATER Services, Inc. has earmarked P1.7 billion for its 2018 wastewater projects, which are aimed at increasing the company’s sewerage coverage while maintaining the reliability of its wastewater network.
“It is a challenge for us to facilitate the completion of wastewater projects, given the impact to traffic of laying new conveyance systems. Nonetheless, these projects are important so we can catch harmful effluents before discharge to the environment,” said Ramoncito S. Fernandez, Maynilad president and chief executive officer, in a statement.
“We need the support of local government and the communities to accelerate sewerage coverage expansion,” he added.
About P1.4 billion of this year’s wastewater budget will be used to lay around 35 kilometers of conveyance systems in Las Piñas and Muntinlupa.
Maynilad said these systems will catch wastewater generated by households and send it to the company’s three sewage treatment plants (STP). The plants in the area have a combined treatment capacity of 148 million liters of wastewater per day and serve about one million residents when fully completed, it added.
The company said P260 million of the 2018 wastewater budget had been allocated for sewer network repairs and installation of new sewer service connections. The remaining P70 million will be spent for the maintenance and operations of wastewater facilities.
This year, the company is scheduled to complete the construction of a new STP in Parañaque. It has recently started commissioning its newest STP in Pasay City.
Maynilad’s wastewater infrastructure network includes three septage treatment plants, 19 sewage treatment plants, 40 pumping stations, 22 lift stations, and more than 500 kilometers of sewer lines.
Maynilad serves certain portions of the cities of Manila, Quezon and Makati. It also covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon in Metro Manila.
Outside the Philippine capital, it serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.
Maynilad, the largest private water concessionaire in the Philippines in terms of customer base, is an agent and contractor of the state agency Metropolitan Waterworks and Sewerage System for the west zone of the greater Manila area.
Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three 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 interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

1...11,31611,31711,318...12,742Page 11,317 of 12,742
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube