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Business booms for plastic giants as change beckons

PARIS — It’s the worst enemy of environmental campaigners, but people around the world use mountains of plastic every day and business is booming for manufacturers.
Much to the chagrin of activists, an increasingly restrictive regulatory environment appears to have put little dent in the industry’s power so far.
That is changing, however, and plastic giants are starting to adapt.
From 2006 to 2016, global plastic output rose from 245 million to 348 million tons, according to the PlasticsEurope trade association. Production rose by 3.9% in 2017. In 2016 the growth rate stood at 4.0%, and in 2015 at 3.5%.
Demand for thermoplastics alone — which includes the most common kinds of plastic, such as PET used in water bottles, polypropylene, polyethylene and PVC — has soared by 4.7% yearly from 1990 to 2017.
“Is this going to continue in the coming years? We can assume it will,” said Herve Millet, technical and regulatory affairs manager at PlasticsEurope.
“The reasons why plastic (production is) growing worldwide are not just going to go away all at once.”
The growth of the plastics industry goes hand-in-hand with economic development, Mr. Millet said.
The more an economy grows, the more plastic is used in construction, infrastructural development, electrical and electronic industries, and transport.
Single-use plastic packaging — the nemesis of environmental activists — is also in strong demand in developing countries.
Even in Europe, where anti-plastics campaigning has been especially vigorous, packaging accounts for 40% of consumption.
But the world’s leading producer of plastic is China. Today it holds a whopping 29% of the market share, up from 15% just a decade ago.
European, US and Japanese plastic manufacturers have meanwhile seen their market share shrink.
Where Western producers are doing especially well is in the development of so-called specialty plastics used in the construction, automobile, medical and other industries.
New polymers are also being used in the aviation and space industry, as well as in the creation of specialty athletic footwear.
Pierre Gadrat, who heads the chemicals and materials division of France-based consulting firm Alcimed, said this sector “is just as dynamic, if not more, than before”.
The growth of the plastic industry defies concerted efforts from activists around the world, as well as an increasingly hostile regulatory environment.
Under pressure from campaigners, the European Union, Britain, India and even fast food giants like McDonald’s have all made some headway towards bringing the use of disposable plastic straws to an end.
Plastic bags are also being phased out in countries around the world, while France is set to introduce a ban on plastic plates, cups and cutlery in 2020.
Emmanuel Guichard of French plastic packaging federation Elipso said the drive to end the use of single-use plastic “does not weigh massively on growth in the sector”.
However, “with all these regulatory measures coming into force, we can’t imagine that they won’t have an impact at some stage”, he added.
As public awareness grows about the terrible harm plastic pollution causes to the world’s oceans and seas, manufacturing giants are starting to worry about their image.
“Plastic as a whole is becoming stigmatized,” Mr. Millet of PlasticsEurope said.
In a bid to keep their names clean, plastic industry leaders are recycling more, following the lead of product manufacturers.
“Under regulatory pressure, plastic waste could potentially become… less seen as waste and more as a valuable raw material,” Mr. Gadrat said.
Producers of other raw materials such as metals, glass and cardboard have already fully integrated waste into their production cycles.
“This is the future of plastic: a scenario where the industry manages its raw materials and its recycled resources,” said Paris-based waste management company Citeo’s chief scientist Carlos de Los Llanos.
“It will probably take a few years,” he said, adding: “It takes learning how to do it.” — AFP

SMC Global Power to raise P15B from bond offer

SMC Global Power Holdings Corp. intends to raise P15 billion from the issuance of fixed rate bonds to refinance debt.
In a statement over the weekend, Philippine Rating Services Corp. (PhilRatings) said it assigned SMC Global Power a PRS Aaa rating for its proposed bond offering, which represents the last tranche of its three-year shelf registration of up to P35 billion.
PRS Aaa is the highest credit rating under the local debt watcher’s long-term issue credit rating scale. This indicates that SMC Global Power has an “extremely strong” capacity to meet its financial obligations.
The proposed bonds were also given a stable outlook, which means that the rating is unlikely to change in the next 12 months.
The power generation arm of diversified conglomerate San Miguel Corp. (SMC) has so far issued P20 billion worth of bonds from its shelf registration program, with P15 billion issued in July 2016 and P20 billion last December. Both outstanding issuances retained their PRS Aaa rating.
In coming up with the ratings, PhilRatings took into account SMC Global Power’s market position, support from SMC, stable earnings and cash flows, as well as its capacity to expand.
“SMC Global Power benefits from the extensive network, keen understanding of the Philippine economy and management expertise of SMC. Furthermore, SMC provides management and support services to SMC Global Power, in areas such as human resources, corporate affairs, legal, finance, treasury and other functions,” the debt watcher said.
SMC Global Power currently has a combined capacity of 4,153 megawatts (MW), sourced from a diversified mix of fuel supply including natural gas, coal, and hydropower. Its existing portfolio includes the 218-MW Angat Hydroelectric Power Plant, the 450-MW greenfield power plant in Limay, Bataan, the 300-MW greenfield power plant in Malita, Davao, and the 640-MW Masinloc power plant in Zambales.
It also acts as the Independent Power Producer Administrator (IPPA) for the Sual, Ilijan, and San Roque power plants.
The company’s combined capacity comprises 19% of the power supply in the National Grid, 25% of the Luzon grid, and 9% of the Mindanao grid.
“SMC Global Power is well-positioned to take advantage of the robust electricity demand outlook, in line with the country’s continuing economic growth. SMC Global Power’s existing capacity is still below the power market share limitations set by the Energy Regulatory Commission, giving the company enough room for portfolio expansion,” according to PhilRatings.
The debt watcher also noted it will be monitoring the legal dispute between SMC Global Power’s subsidiary, South Premier Power Corp. and the Power Sector Assets and Liabilities Management Corp. on the Ilijan IPPA agreement. The two parties have differing interpretations on certain provisions on generation payments from the facility.
The case is now pending with the Court of Appeals.
“Amidst the ongoing dispute, SPPC continues to be the IPPA of the Ilijan power plant. PhilRatings shall continue to monitor developments in relation to this case and its subsequent resolution,” it said. — Arra B. Francia

2 firms keen on bidding for Zamcelco contract

By Albert F. Arcilla, Correspondent
ZAMBOANGA CITY — Financially troubled Zamboanga City Electric Cooperative, Inc. (Zamcelco) is aiming to finally award an investment management contract (IMC) by Aug. 2 after two bidders submitted letters of intent.
“As of the moment, two bidders are interested to participate in the bidding, the Aboitiz Power Corp., and the Crown Investment Holding, Inc.,” Zamcelco President Omar A. Sahi said in an interview with the local media here last week.
Among the companies that earlier backed out of a potential IMC is Manila Electric Co.-Comstech Integration Alliance, Inc. (Meralco-Comstech), Zamcelco announced last week.
A dialogue held last week was attended by local officials and representatives of Zamcelco and its suppliers to discuss the cooperative’s “ailing financial condition,” according to a statement from the Zamboanga City government.
During the meeting, one of the suppliers, the Alsons Group’s Western Mindanao Power Corp. (WMPC), vowed not to cut supply as Zamcelco has started paying outstanding dues of more than P258 million.
WMPC supplies 50 megawatts to Zamcelco.
The electric cooperative’s other suppliers are the Power Sector Assets and Liabilities Management Corp., Enfinity Philippines, and San Miguel Power Corp. with total payables reaching P948.5 million.
Zamcelco officials said their projected monthly collection is P370 million, operating at a system loss rate of 22%.
Edgardo F. Ancheta, Zamcelco general manager, said while “the cooperative is intensifying anti-pilferage campaigns and pursuing restructuring schemes to meet its obligations,” the IMC “is the best move” to resolve its financial difficulties.
“Every month, Zamcelco is losing roughly P20 million due to system loss,” Rikki Lim, one of Zamcelco’s board members, said.
Zamboanga City Representative Celso L. Lobregat, meanwhile, said in a radio interview here that two important issues need to be included in Zamcelco’s new attempt for an IMC.
“The new ruling of the ERC (Energy Regulatory Commission) should be included in the terms of reference and the bidders should have the track record on running a power distribution,” Mr. Lobregat said.
In February this year, the ERC announced it has reduced the allowable percentage of system loss for electric cooperatives to a range of 8.25% to 12%.
The Zamboanga Chamber of Commerce and Industry Foundation, Inc. (ZCCIFI) has proposed that the National Electrification Administration (NEA) immediately take over Zamcelco to curb further problems.
ZCCIFI President Pedro Rufo N. Soliven said Section 31 of the Electric Power Industry Reform Act of 2001 authorized NEA to step in to provide institutional, financial, and technical assistance to cooperatives in trouble.
“To ensure the economic and financial viability and operation of all electric cooperatives: restructuring ailing electric with the end in view of making it economically and financially viable,” Mr. Soliven said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by 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.

If the shoe fits


By Joseph L. Garcia,Reporter
FOR A human to be in a state of nudity is to allow one’s self to be vulnerable. You are literally exposing yourself for another person, or the world, to notice your imperfections; the things you hide under layers and layers of clothing.
Rem D. Koolhaas, a nephew of esteemed architect Rem Koolhaas, created his first shoe in 1999 when he was an architectural student. He called the brand the shoe gave birth to United Nude — which meant “working together in total transparency,” he said during the launch of the first United Nude store in the Philippines, located in Resorts World Manila in Pasay City.
He created his first shoe after a heartbreak (though he has since found love, and is now happily married and with children). In a way, a heartbreak is like being in a state of embarrassed nudity — you’ve exposed your deepest self to a person, only for someone to reject what they’ve seen. When asked how heartbreak fuels creativity, he said, “It’s an emotional state of mind where you want to break out of something, and break through something. Therefore, you can end up finding yourself, or pushing yourself into doing something that maybe you haven’t done before,” Mr. Koolhaas told BusinessWorld.
During this period, he said, he scaled down to “the most vulnerable scale level of architecture, which is a woman’s foot.” When asked to define this vulnerability, he said it is something smaller than a human being; something that a human can easily crush. “A large building is not very vulnerable; it’s not very sensitive. Architecture is quite often about humans, but also about something bigger than a human being,” he said.
Asked about how shoe design is related to architecture, he said, “They’re both structural. They’re both functional; [they] accommodate human beings in their own way.”
It’s not mere coincidence that Mr. Koolhaas was studying architecture: as mentioned, he’s related to the great architect Rem Koolhaas, whom he refers to as “The Other Rem.” Their family is, apparently, chock full of designers and architects. “When you grow up looking at things by your parents being invested in looking at things, you already start your education in design.”
He also credits his avant- garde line of thinking to being Dutch, citing the country’s geopolitical positioning in history. The Netherlands was constantly fighting against the sea, which was why the nation built dikes. And in a land constantly fighting against the sea, it wasn’t too easy for much to grow and prosper, which was why the Dutch went out and sailed to build an empire based on trade and commerce. “You have to be innovative to survive,” he noted.
AVANT-GARDE
United Nude constantly teeters towards the avant-garde, which is its selling point. When he created his first shoe, the Mobius, no fashion designer would touch it as it was too unique and was not always in line with what they did. They did, however, encourage him to make his own brand, and market his own shoe.
If one takes a look at United Nude’s offerings, one notices optical illusions which make the shoe unique: there is, for example, a shoe made in collaboration with architect Zaha Hadid which follows the lines of a skyscraper. Mr. Koolhaas’ own creations, meanwhile, unite a shoe’s vamp with the heel in a seamless structure, implying the infinity symbol. A shoe’s heel, meanwhile, could be based on a chair, or else the entire shoe is made by simply folding one part of the material over the other.
“Shoes are the only independent structural garment piece. Clothing hangs on the human body, whereas shoes carry the human body,” he said. “What makes high heels so powerful is that it changes the very posture of a woman’s body, and makes it way more erotic, in a way. That’s what makes it so interesting.”
Not too many designers philosophize on the meaning of a shoe, so if a woman is looking out for a shoe that’s both smart and pretty, this is their brand.
“I would like to tick as many boxes as possible when we create anything,” he said when asked about creating shoes that were both, in a way, smart and pretty. “I want something to be comfortable, beautiful, smart, pretty, durable, inspiring — the more boxes it can tick, the more successful a shoe is for me.”

AlloyMTD plans gov’t center-business hub in Bataan

THE AlloyMTD Group is in talks with the local government to develop a P3.6-billion government center and business hub in Bataan.
Patrick Nicholas P. David, president for AlloyMTD Holdings Philippines, said the company has started negotiations with the local government of Bataan for the project.
“We have a bigger budget for Bataan. I think the total cost is P3.6 billion. The area we’re developing is 10 hectares,” Mr. David told reporters at the Philippine Economic Zone Authority (PEZA) headquarters in Taguig City on Friday.
The Bataan project is also envisioned to have a business hub where export-oriented industries can be established.
Mr. David said the company is looking to replicate the project in other provinces, citing Ilocos Norte, Ilocos Sur, Batangas and Surigao as viable areas.
“[I]t’s ease of doing business that we were lacking. With this, we hope it improves. We don’t have to spend time and money to go around cities, or from one city to the next or from one town to the next just to get documents. We are envisioning that when opening a business, you go to one building and everything is there,” Mr. David said.
AlloyMTD is currently developing the Palayan City Government Center and Central Business Hub in Nueva Ecija. The three-hectare property will feature government offices, as well as business process outsourcing companies. It has been declared as an information technology park and special economic zone.
The project will have a BPO center with two to three IT buildings that can accommodate between 5,000 to 6,000 seats.
Sutherland Global Services, a global business process outsourcing (BPO) company, is setting up shop at the Palayan City business hub. The firm will commence operations in September and is expected to create at least 1,000 jobs.
Palayan City Mayor Adrianne Mae J. Cuevas said more BPO firms have expressed their intent to locate in the business hub after it was declared a special economic zone. — JCL

T-bills to fetch higher rates due to thin demand

By Karl Angelo N. Vidal, Reporter
TREASURY BILLS (T-bills) on offer this week will likely fetch higher yields amid lower demand as the market expects the local central bank to raise its policy rates anew following the faster-than-expected June inflation print.
The Bureau of the Treasury (BTr) is offering P15 billion worth of T-bills at its auction today. Broken down, the Treasury will raise P4 billion and P5 billion via three- and six-month papers, respectively, and another P6 billion from the one-year debt papers.
Traders said over the weekend that yields on the shorter-termed papers will likely pick up, with one saying rates could rise by about 10 to 15 basis points across the board from the previous auction.
Last Monday, the government partially awarded the T-bills it placed on the auction block, raising just P11.9 billion out of the P15 billion it wanted to borrow.
Broken down, at that auction, the BTr accepted P4 billion as planned in the 91-day tenor, fetching an average rate of 3.404%, lower by eight basis points from the previous auction.
The Treasury however partially awarded the 182- and 364-day papers, borrowing just P3.04 billion and P4.029 billion, respectively. The rate of the six-month bills climbed 6.4 basis points to 3.937%, while the yield on one-year securities also rose to 4.566% by 13.7 basis points.
At the secondary market on Friday, the three- and six-month debt notes fetched 3.2639% and 3.8254%, respectively, while the one-year papers were quoted at 4.5625%.
The trader said the T-bills on auction today “will see weaker demand” from investors.
“I don’t think people are inclined to buy at this point,” the trader said in a text message on Saturday, noting the market is expecting the Bangko Sentral ng Pilipinas (BSP) to hike its interest rates again following higher inflation last month.
The government reported on Thursday that headline inflation accelerated to a fresh five-year high of 5.2% in June.
Last month’s inflation print surged from May’s 4.6% figure and was faster than the 4.7% median in a BusinessWorld poll.
The latest figure also exceeded the 4.3-5.1% estimate range by the Bangko Sentral ng Pilipinas and the 4.9% estimate of the Department of Finance.
Price increases in June were led by alcohol and tobacco (20.8%), transport (7.1%), as well as food (6.1%).
BSP Governor Nestor A. Espenilla, Jr. said the uptick in inflation was “a setback.”
“We will review and update our situational assessment and forecast inflation path,” Mr. Espenilla said last week. “This will shape the strength and timing of our next monetary policy response to firmly anchor inflation expectations.”
“The market may start pricing in another rate hike from BSP after the inflation data,” the bond trader added.
The BSP has already raised its rates twice this year, with borrowing costs now within a 3-4% range.
The Treasury is set to raise P300 billion from the domestic market this quarter through auctions of securities, offering P195 billion in T-bills and another P105 billion in Treasury bonds.
Aside from this, plans for another dollar bond float as well as yen-denominated “samurai” papers are also being finalized.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product.

Gaultier lights up Paris fashion week with provocative ode to smoking


PARIS — With sultry tuxedos and a gown that appeared to waft down the catwalk like cigarette smoke, French designer Jean Paul Gaultier celebrated smoking in all its forms on Wednesday in a fashion show filled with tongue-in-cheek digs at overly rigid attitudes.
Reinterpretations of “Le Smoking” — or tuxedos for women popularized by late French couturier Yves Saint Laurent in the 1960s — dominated the Haute Couture collection, with black and white combinations of jackets and ruffled dresses for instance.
The designer took smoke as his inspiration for a see-through dress decked out in swirling embellishments, or a wedding gown with a featherlight, waspy train that looked like it could vanish into thin air as it twirled on the runway.
Gaultier, the self-style “enfant terrible” of the fashion world, was also deliberately harking back to a period when smoking was more widely acceptable.
“I don’t smoke, but I was always surrounded by people that were smoking,” Gaultier said after the show in Paris.
“I don’t say ‘don’t smoke or smoke,’ it’s only that people should do what they want.”
Smoking was banned in public places in France in 2006, echoing clampdowns in many other countries by authorities for health reasons.
FREE THE NIPPLE
The flamboyant designer showed his support for a Florida teenager who was made to cover her nipples in bandages at her high school for not wearing a bra under her sweatshirt. Lizzy Martinez, 17, made headlines in April when she said teachers told her to wear a second shirt and put plasters on her nipples after they claimed other students had been distracted by her breasts.
Gaultier said it was a “scandalous” that a girl should be treated that way, and used his collection to support her.
He told AFP that if “men had the right to go bare-chested why not women?”
And to hammer home the point he had a barechested male and female model walk the catwalk, each wearing see-through police visors with the legend, “Free the nipple” in French and English.
“You can see the nipples and the jewelry but you can’t touch,” he said. “I don’t say that you must bare your breasts. I am very much for corsets and bras, clearly I like them,” said the designer who came up with Madonna’s famous conical bustiers. “But a woman should be allowed to not to wear a bra under her T-shirt,” he added.
Gaultier played with nipple visibility in four other looks in his autumn-winter collection that was a typically playful celebration of liberty and transgression.
“We are living in a quite policed world, and I was looking for a pretext to show freedom for all,” he said. “I wanted to show that you can walk around with bare breasts without be attacked or aggressed. It’s all about freedom to enjoy yourself and not take life too seriously.”
Gaultier’s couture brand is owned by private Spanish fashion and fragrance group Puig.
Paris Haute Couture Week — where a select club of fashion houses present their one-of-a-kind creations and showcase some of their most elaborate styles — ran until July 5. — Reuters/AFP

Growers seek to tap China demand for frozen durian

DAVAO CITY — Growers and exporters are meeting later this month at the 2nd Durian Summit, in a bid to find ways to meet Chinese demand for frozen durian.
Davao City Durian Industry Council (DCDIC) President Candelario B. Miculob said Chinese traders were in town in May and wanted more frozen durian than what was available.
“They did not set a limit for the quantity. The only problem is we have limited processing capacity. The Chinese want frozen durian… it is easier to export and it is also advantageous for us,” Mr. Miculob said during the Habi at Kape media forum last week.
He said that while the Philippines has a much smaller area planted to durian compared with three other southeast Asian countries, the August to October harvest period here coincides with the off season in these other exporting nations.
Thailand has the biggest durian farming area at more than 96,000 hectares (ha), followed by Malaysia with more than 70,000 ha, and Indonesia with around 50,000 ha. The Philippines, on the other hand, only has 16,000 ha, mainly in Mindanao.
“We have the opportunity to supply because in August, September and October, there is no production in other countries. These are the opportunities that we hope to take advantage of,” he said.
Apart from increasing production and expanding processing capacity, the industry also needs to address the declining area planted to durian due to rapid land conversion.
“We want to share the current developments of the durian industry and the market opportunities available today. We would like also to raise lots of issues during the summit,” Mr. Miculob said.
Among those expected to attend the summit on July 19-20 as speakers, resource persons and participants are representatives from China, the Department of Trade and Industry, Department of Science and Technology, farmers, and processors.
The industry is also preparing for the Durian Festival on Aug. 10 to Sept. 25, which forms part of Davao City’s annual Kadayawan Festival.
“We are expecting a lot of production this year, unlike last year the volume of fruits were limited (due to rains). Mangosteen is coming also as well as lanzones and rambutan. There’s a lot of fruits this year, luckily,” Mr. Miculob said.
Mr. Miculob said growers are expecting a harvest of around 48 metric tons of durian during the Kadayawan season.
“We have different (durian) varieties because almost all the varieties really bore fruit. We have a survey involving durian growers of the region and almost everybody said that all trees bore fruit,” he said.
In the Davao Region, which has four processing centers, up to 70% of the harvest usually goes to the export market.
“In 2015 there was so much durian, but in 2016 we were hit by drought and there was so much rainfall in 2017. We are recovering this year,” he added. — Maya M. Padillo

Top Japan fashion site bets big on private brand, body scanning

THE KEY to a perfect fit with Start Today’s new clothing line hinges on the Zozosuit, a polka-dot studded bodysuit that lets users measure their proportions with a smartphone camera.

JAPAN’S largest e-commerce company is betting that it has found the key to selling clothes online: a size-measuring bodysuit and its own line of clothing.
Start Today Co., which runs a shopping site in Japan called Zozotown that’s popular with younger consumers, unveiled its own made-to-fit private label T-shirts, jeans, and business suits as it pushes deeper into web-based apparel sales. The clothes are meant to be sold to customers using a body-scanning suit and app developed by the company, which is renaming itself Zozo Inc. from October.
Selling clothing online has been a big challenge for web retailers because sizes, colors, and looks are hard to gauge on the web. Sellers often offer free returns to spur purchases, but that also drives up costs and risks alienating customers. Start Today’s billionaire founder Yusaku Maezawa is betting that his strategy of offering made-to-fit apparel will help it expand overseas and quintuple its market capitalization in the next decade.
“Anyone in the world can relate to worries about clothing size,” Maezawa, 42, said in an interview. “When we looked overseas, we couldn’t find any companies that were offering lower-cost clothing that fit well. There was a need for that.”
Amazon.com Inc., which has been making an aggressive push into online apparel, last year bought Body Labs, a 3-D body-scanning start-up that lets people create a digital avatar of themselves to try on virtual clothes. In response to Start Today’s announcement of private brand men’s business suits and dress shirts — offered at a discounted ¥24,800 ($225) for a limited time — shares of Japanese suit sellers Aoyama Trading Co. and Aoki Holdings Inc. fell on Tuesday last week.
The key to a perfect fit with Start Today’s new clothing line hinges on the Zozosuit, a polka-dot studded bodysuit that lets users measure their proportions with a smartphone camera. Sales initially started with T-shirts and jeans, and the company added men’s business suits to its lineup. It also announced that the service and private brand would be available in 72 countries including the US by the end of July.
“If they can build a successful apparel-selling platform based on body measurements data, it can be huge,” said Akira Iwasaki, an analyst at Iwai Cosmo Securities Co. in Tokyo who has a buy rating on Start Today.
The growth plan is a big bet for a company that gets about 90% of its sales by providing a marketplace for clothing by other brands. Maezawa said Start Today is looking at potential acquisitions that could improve its measuring technology and production capabilities. While Rakuten Inc. is often seen as Japan’s home-grown e-commerce pioneer, Start Today is bigger, with a market capitalization that’s 25% higher at ¥1.3 trillion.
The company created a unit Start Today Research this year to acquire ideas and technologies related to fashion and clothing fit. It also made headlines in Japan in April when it offered annual salaries of as much as ¥100 million to find employees specializing in fields such as artificial intelligence, robotics and cryptography. — Bloomberg

GERI expects P1.2 billion in sales from residential condo in Laguna

GLOBAL-ESTATE Resorts, Inc. (GERI) expects to generate P1.2 billion in sales from its newly launched residential property in Southwoods City in Laguna, following the strong take-up for its first project in the estate.
The leisure and tourism subsidiary of Megaworld Corp. said in a statement over the weekend that it will be launching Tulip Gardens, a 22-storey residential condominium project in Southwoods City in Biñan, Laguna.
The development will offer studio units covering up to 28.5 square meters (sq.m.) and one-bedroom units reaching up to 41 sq.m., for a total of 372 units spread out over five mid-rise buildings.
Amenities include jogging paths, picnic areas with cabanas and pavilions, indoor playroom, two outdoor playgrounds, a fitness center, a lap pool, a kiddie pool, and a multipurpose hall.
Some units will also have their own lanai which can give residents a view of Southwoods City, Laguna, and Cavite.
“Tulip Gardens is an innovation in residential high-rise living, where leisure and relaxation take center stage in a community setting. We are providing more amenities so that our residents will feel like they live in a resort,” Megaworld Global-Estate, Inc. Vice-President for Sales and Marketing Mary Rachelle I. Peñaflorida said in a statement.
The newest development inside Southwoods City will be located near the newly opened Southwoods Mall and the Sto. Niño de Cebu Parish, and can be accessed through the Southwoods exit of the South Luzon Expressway.
The listed firm targets to complete the project by 2023.
Tulip Gardens is GERI’s second residential project in Southwoods City, following the launch of Holland Park back in 2014. The company said Holland Park has so far sold P2.7 billion worth of units from its four towers.
“The spike in the demand for residential condo units in Southwoods City was a big surprise considering that the township has been known for its vast horizontal residential villages like Pahara,” Ms. Peñaflorida said, referring to the 26-hectare upscale residential village inside Southwoods City that was launched in 2014.
The GERI executive added that they have so far sold out more than 600 units of Holland Park, and that “the demand for more units continues to grow.”
Southwoods City is a 561-hectare township of GERI’s sister firm Megaworld, which is being positioned as the next central business hub outside Metro Manila.
GERI booked P406.9 million in net income attributable to the parent during the first quarter of 2018, up by a fourth than the P325.8 million it realized during the same period a year ago. Revenues, meanwhile, were flat at P1.66 billion.— Arra B. Francia

Peso to move within tight range after positive US data

THE PESO will likely move sideways against the dollar this week on the back of likely mixed economic data in the United States and as well as potentially weak Philippine trade figures.
The peso ended the week at P53.42 against the greenback, flat from its close on Thursday.
Week on week, Friday’s closing rate was however weaker than the P53.34-per-dollar finish on July 1.
“We’re expecting the peso to continue to trade within a very tight range this week as the market will take cue from the US unemployment data,” a trader said in a phone interview on Friday.
The US economy added 213,000 jobs in June, data released on Friday showed, versus the 195,000 market expectation in a Reuters poll.
However, unemployment rose to four percent in the same month as more people sought new jobs.
“The latest US labor reports were strong enough to confirm the health of the US economy, but not excessively upbeat to fuel speculations of even more aggressive moves from the US Federal Reserve,” Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said in an e-mail.
Despite the mixed labor report, analysts said trade concerns will continue to weigh on market sentiment.
The $34 billion worth of tariffs on Chinese goods slapped by US President Donald J. Trump took effect on Friday. In return, China said imported US goods including cars, soybeans and lobsters facing 25% levies, Reuters reported.
“While the trade war between the US and China could support safe-haven demand, the dollar might not fully benefit from it…as investors over the weekend focused their attention more on the possible negative impact of the trade war on the US economy,” Mr. Dumalagan said.
Toward the end of the week, Mr. Dumalagan noted the dollar might rebound against the local unit due to possibly strong US reports on producer and consumer price inflation and a potentially wider local trade deficit.
“While the possible widening of the Philippine trade deficit is a reflection of the country’s upbeat investment spending, some market participants might interpret the report negatively, looking at its subtractive role in the expenditure approach in computing gross domestic product,” he said.
For this week, the trader sees the peso to move between P53.30 and P53.55, while Mr. Dumalagan gave a wider P53-P53.60 range. — Karl Angelo N. Vidal

DoTr: China’s Dalian should pay for technical adjustments on MRT trains

THE Department of Transportation (DoTr) insisted that Chinese firm CRRC Dalian Co. should pay for the cost of any technical adjustments required to accommodate the 48 new trains for the Metro Rail Transit Line 3 (MRT-3).
Transportation Secretary Arthur P. Tugade met with officials from Dalian last week to discuss the results of the audit conducted by certifier TUV Rheinland of the train sets.
“Dahil doon sa pag-uusap na iyon, nagkasundo ‘ho na kung may mga dapat gawin at dapat lamang na gawin, kung gusto natin gamitin, lahat ‘ho ng gastusin na iyon ay a-absorb-in ng Dalian without a single cent of expense from the Philippine government [Because of that discussion, we have agreed on what to do if we want to use the trains. All the expenses for that would be absorbed by Dalian without a single cent of expense from the Philippine government],” Mr. Tugade said in a statement.
The DoTr referred to the results of the audit, which showed Dalian trains could still be used on the MRT-3 if adjustments are made.
“Kapag nirepaso mo ’yung evaluation, para bang sinasabing pag ito’y naisaayos sa tamang pamamaraan, puwede mo pang magamit ’yung bagon at tren without sacrificing the safety, the security and life of the passengers and the system [If you review the evaluation, it seems to say when the issues are fixed properly, the coaches and trains could still be used without sacrificing the safety, the security and life of the passengers and the system],” Mr. Tugade added.
He noted the problems concern variations in the measurements and weight of the new trains.
Despite this, Mr. Tugade said the work needed to be done on the Dalian trains is “manageable.”
The governments of the Philippines and China will meet on Aug. 20 to specify the details of the adjustments needed to be done by Dalian.
The trains from Dalian were purchased by the Aquino administration, meant to be additional coaches on the MRT-3. The DoTr earlier said the trains could not be used because of incompatibility with the system, and ordered an independent audit by TUV Rheinland. — Denise A. Valdez

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