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Feb. Philippine factory growth slowest in SE Asia

THE PHILIPPINES contributed to an overall improvement of Southeast Asian factory business in February, though it bared the weakest performance among five economies in the region that registered growth, according to the Nikkei ASEAN Manufacturing Purchasing Managers’ Index (PMI) released on Monday.

The Philippines’ 50.8 PMI reading last month reflected continued improvement from January, but it was the slowest growth compared to Vietnam (53.5), Myanmar (52.6), Indonesia (51.4) and Thailand (50.9).

A PMI reading above 50 suggests improvement in business conditions from the previous month, while a score below that signals deterioration. The manufacturing PMI — a composite index designed to provide a snapshot of the health of the manufacturing sector each month — is composed of five sub-indices, with new orders having the biggest weight of 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).

Malaysia and Singapore signaled contraction with PMI readings of 49.9 and 46.8, respectively.

The Philippines’ reading was just slightly better than the 50.7 of covered members of the Association of Southeast Asian Nations (ASEAN).

“February data continued to show a relatively broad-based upturn, with five of the seven countries covered by the survey reporting an improvement in business conditions, unchanged from the start of the year,” the report read, noting that “[e]xpansions in output, new orders and employment were all faster than in January.”

It noted, however, that “the Philippines dropped to fifth place as tax reforms continued to limit growth”.

And while February saw manufacturers across the region facing “higher input costs, which saw them passing on some of the increase to customers… [t]he Philippines saw the strongest rate of cost inflation across the region as new excise taxes pushed up input prices.”

The first of up to five planned tax reform packages, Republic Act No. 10963 — also known as the Tax Reform for Acceleration and Inclusion Act (TRAIN) that took effect on Jan. 1 — cut personal income tax rates in a bid to give households more money to spend and more than made up for estimated foregone revenues by adding taxes on cars, fuel, minerals, coal, sugar-sweetened drinks, tobacco products, some investment products, cosmetic surgery and a host of other items, besides removing value added tax exemptions of several sectors.

The entire program is geared towards shifting the tax burden to those who can afford to pay more, while adding to collections.

But it has been widely expected to spur inflation and dampen consumption of affected items, although the Finance department estimates the increment to inflation capped at about 0.7 of percentage point in the first year of TRAIN’s implementation.

Headline inflation clocked four percent in January — the fastest clip in more than three years that compared to the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target range and 4.3% forecast average for full-year 2018 — and is expected by BSP to have sped to 4-4.8% last month, while a BusinessWorld poll of economists late last week yielded a 4.2% median.

Output in Southeast Asia grew “at the strongest rate in 10 months”, fueled by higher new orders, and “the rate of job creation was the strongest recorded for 20 months,” read the report of IHS Markit, which conducts the monthly survey for Nikkei, Inc.

The Nikkei Philippines Manufacturing Purchasing Managers’ Index released on Friday last week showed the reading at its lowest in five months in February, matching that of September last year and the second-slowest pace — after August 2017’s 50.6 — since at least August 2016. IHS Markit began the Philippine leg in January 2016. The Philippine PMI clocked 53.6 in February last year.

The latest Philippine data, collected last Feb. 12-21, showed faster increases in output and new orders that were offset by “the first drop in staffing levels since September 2017… at the steepest pace in the [Philippine] survey history.”

Cigarettes, alcoholic drinks led February price hikes — DoF

HIGHER PRICES of cigarettes and alcoholic drinks likely drove inflation faster in February, the Department of Finance (DoF) said.

The DoF said prices overall may have edged higher to 4.1% last month, against January’s four percent climb and the 3.3% recorded in February 2017.

The estimate compares to the 4-4.8% range given by the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research and the 4.2% median of BusinessWorld poll among 14 economists.

February is expected to log another three-year high since a 4.3% rate in October 2014.

“While the 4.1% forecast may seem to have breached the higher end of the inflation target range, it is largely on account of the price increase of ‘sin’ products,” the DoF said in its economic bulletin published yesterday.

“These are non-essential and are even harmful products which we want the general public to steer clear away from on health reasons.”

The DoF sees inflation rate for alcohol and tobacco products at 16.4% from the previous year, picking up from the 12.3% increase recorded in January. This contributed 0.4 of a percentage point to headline inflation, according to the department’s estimates.

Signed into law in December as Republic Act No. 10963, the Tax Reform for Acceleration and Inclusion (TRAIN) law introduced additional taxes on fuel, cars, coal, sugar-sweetened drinks and many other items, taking effect on Jan. 1.

The TRAIN raised the excise tax on cigarettes to P32.50 this year, with succeeding increases provided annually. Meanwhile, prices of alcoholic drinks went up by another four percent, as provided under the ‘sin’ tax reform law of 2012.

“The latter may be explained partly by price increase due to sin tax hikes and partly by the appropriate price adjustments of Mighty Corp. following its paying the right amount of taxes,” the DoF added, referring to bigger taxes remitted by the cigarette producer as Japan Tobacco International, Inc. took over its operations late last year.

This is followed by a 5.5% rise in prices of electricity and fuel products, although slower than the previous month’s 7.2% increase. Transport fares also picked up by 4.1% year-on-year in February, rising from 3.2% a month ago.

The TRAIN also imposed an additional P2.50 excise tax per liter of diesel and P3/liter for kerosene, which comes at a time of three-year highs for world crude prices.

On the other hand, food inflation likely steadied at 4.4% last month, versus January’s 4.5% increase and the 4.1% pace tallied in February 2017.

Cost of dining in restaurants and availing of miscellaneous services rose by roughly 3.7% in February, the DoF said.

The Philippine Statistics Authority will report February inflation data today. — Melissa Luz T. Lopez

Young population puts Philippines at the top of investors’ minds — US News & World Report

By Melissa Luz T. Lopez
Senior Reporter

THE PHILIPPINES topped 80 countries as the best investment destination, according to the US News & World Report, noting that its young population will attract more firms looking for a good labor force.

The US News & World Report named the Philippines the “Best Country to Invest In” in its 2018 Best Countries report.

“In contrast to declining inflows of foreign direct investment (FDI) to Southeast Asia as a whole, the Philippines continued to perform well, according to United Nations data,” read the report, which was published online.

“In years to come, the country is expected to receive more FDI from within the region from powerhouses like China that are looking to utilize available labor in developing nations.”

Net FDI inflows to the Philippines reached $8.725 billion in the 11 months to November 2017, already surpassing the $8-billion forecast of the Bangko Sentral ng Pilipinas for the entire year.

KEY ASSET
Sought for comment, Finance Secretary Carlos G. Dominguez III said the Philippines’ “young and hardworking workforce” plus an “excellent” inclusive growth momentum likely helped the country snag the top spot.

The Philippine economy grew by 6.7% in 2017, slower than the previous year’s 6.9% but still one of the fastest-growing major economies in Asia.

Mr. Dominguez also identified an expanding middle class, a “politically stable” environment, a stable monetary policy, an “achievable” infrastructure program and a strong anti-corruption drive as other factors that likely buoyed the country’s scores.

Indonesia, Poland, Malaysia and Singapore completed the top five best investment sites, followed by Australia, Spain, Thailand, India and Oman.

“Southeast Asia is home to many of the countries business decision-makers find financially attractive,” read the report, which was based on a survey of “more than 6,000 business decision-makers”.

Countries were gauged on eight equally weighted attributes, namely: corrupt, dynamic, economically stable, entrepreneurial, favorable tax environment, innovative, skilled labor force and technological expertise.

US News & World Report drew up the list in partnership with Y&R’s BAV Group and The Wharton School of the University of Pennsylvania.

The wider Best Countries ranking factors in 65 attributes which are the subject of a survey conducted among over 21,000 people across the globe.

“The more a country was perceived to exemplify a certain characteristic in relation to the average, the higher that country’s attribute score and vice versa,” the report read.

Across all indicators, the Philippines ranked 49th out of 80 countries, lower than the previous year’s 43rd place.

The country ranked best in terms of adventure at the 16th spot, while its lowest ranking was 55th in terms of citizenship and power.

The Philippines stood at 37th in terms of quality of life, and 34th in terms of being “open for business.”

Switzerland was named the best country overall, followed by Canada, Germany, the United Kingdom, and Japan.

Megaworld set to open P240-M school in Cebu

MEGAWORLD Corp. is marking its foray into the education sector with the opening of the P240-million Newtown School of Excellence within its Cebu township in time for school year 2018 to 2019.

The Andrew L. Tan-led firm consulted with the Lasallian Schools Supervision Services Association, Inc. (LASSSAI) for the Newtown School of Excellence, which will be offering primary classes in the coming school year.

The institution is located along the entrance of the 30-hectare Mactan Newtown along the Mactan Circumferential Road. The school targets to attract students from the township, as well as residents of Lapu-Lapu City and nearby areas.

“We will also cater to the children of the expat community and residents of Lapu-Lapu City and nearby towns and cities as well as the children of those working in nearby businesses and business process outsourcing (BPO) companies,” Megaworld Cebu Properties, Inc. President Noli D. Hernandez was quoted as saying in a statement.

The Newtown School will have two main buildings, with the first catering to the Kindergarten level and consists of three classrooms, a library, playground, and multi-purpose hall. The second building will have five floors with a total of 21 classrooms, audio-visual rooms, computer rooms, music room, home economics room, and an auditorium, among others.

Megaworld said the school curriculum will be technology-based.

“Being inside The Mactan Newtown, the school will also have access to its own beachfront, allowing the institution to conveniently utilize the beach facilities for school activities. With the improvement of the quality of life of the future generation as its primary goal, this school will provide an exceptional educational program through the reputable brand of LASSSAI,” Mr. Hernandez said.

Megaworld has committed to spend P30 billion for the development of Mactan Newtown from 2013 through 2023. Also set to rise within the township are residential condominiums, office towers, hotels, mall and commercial centers, as well as a beach club along with beachfront facilities.

The Mactan Newton township is among the company’s 23 integrated communities being developed by Megaworld across the country. This includes the 640-hectare Eastland Heights in Antipolo, Rizal and the 35.6-hectare Capital Town in Pampanga where Megaworld will spend P30 billion in the next 10 years.

The listed property developer booked an 11% increase in attributable profit to P9.98 billion in the first nine months of 2017, pushed by the 5% uptick in revenues to P35.4 billion during the period. — Arra B. Francia

Torre Lorenzo mulls IPO between 2020 and 2023

By Arra B. Francia, Reporter

PROPERTY developer Torre Lorenzo Development Corp. (TLDC) is considering a initial public offering (IPO) between 2020 and 2023 to ensure its future growth prospects.

TLDC Chief Financial Officer Emmanuel A. Rapadas said the company would have to look at raising capital from the public to help it grow as fast as other players in the property sector in the following years.

“We will probably go public, there’s a good chance within the next five years… Anywhere between 2020 and 2023. Depends on a lot of factors. One is the market, (next is) if we have built a credible business story, a growth story, and our readiness,” Mr. Rapadas told BusinessWorld in an interview last week.

The company current has four residential condominium projects targeting college students, namely Torre Lorenzo 1 and 2 Torre Lorenzo, both beside De La Salle University along Taft Avenue; Torre Sur near University of Perpetual Help in Las Piñas; and Torre Central near the University of Santo Tomas in España Boulevard, Manila.

TLDC has three more residential condos in the pipeline, with a third Torre Lorenzo along Taft Avenue currently under construction, a condominium near the Philippine General Hospital in Manila, and another one near the Ateneo de Manila in Katipunan, Quezon City set to be launched within the first quarter.

The property developer primarily serves the upper middle to high-end market, building projects with resort-like amenities. This includes a hotel-like lobby, study areas, and leisure and sports spaces, among others.

Aside from student residences, TLDC has also recently ventured into the hospitality business after partnering with international hotel brand Dusit Thani.

With tourism’s increased contribution to the Philippine economy, Mr. Rapadas said the hotel and resorts business is becoming one of the most attractive segments in the property space.

The company expects to have four hotels under its portfolio in the next five years. TLDC is set to open Dusit Thani Residence Davao and dusitD2 Hotel, a luxury complex in Davao City, Dusit Thani Hotel at Lubi Plantation, and Dusit Princess Lipa Hotel in Batangas.

TLDC is also studying options to build more hotels in Baguio, Bohol, and Palawan, but has yet to find partners in these areas.

Entering the hospitality business will likewise boost the company’s recurring income, with TLDC earlier stating a quarter of revenues will likely come from hotel operations by 2020.

While an IPO will give the company access to public capital to help accelerate its expansion, Mr. Rapadas said it will also push the firm to be compliant with good corporate governance practices.

“We’d like to have the policies and the structures in place to ensure there is smooth succession as you hand over the reins of the corporation to the next, and it’s only if you have the right policies in place that it will continue to grow and it will continue to be profitable,” the TLDC executive said.

This year, the company looks to book P2.4 billion in reservation sales, 38% higher than what the P1.8 billion it generated in 2017. TLDC currently has a P6.2-billion inventory for student residences.

Court extends halt order vs implementation of CDO on Pagbilao project

PAGBILAO ENERGY Corp. (PEC) has secured a 20-day extension of the temporary restraining order (TRO) against the implementation of a directive issued by Pagbilao town officials halting the company’s operations, its parent firm Aboitiz Power Corp. said.

“PEC advised [AboitizPower] that the Court extended the effectivity of the TRO issued on Feb. 28, 2018 from 72 hours to 20 days (counted from the date of the original issuance of the TRO),” the energy company told the stock exchange on Monday.

The TRO issued by the Regional Trial Court of Lucena City, Branch 57, keeps the Pagbilao cease and desist order (CDO) at bay until the third week of March. The TRO was in response to PEC’s court filing for an injunction and declaration of nullity against a resolution issued by the Sangguniang Bayan.

AboitizPower said the town officials’ order came during the course of PEC’s application for a business permit for calendar year 2018 from the municipality of Pagbilao.

The company said Pagbilao officials had required PEC to execute a memorandum of agreement (MoA) implementing its corporate social responsibility programs for an amount above the company’s approved budget.

AboitizPower said the municipality refused to issue the business permit without the executed memorandum, and instead issued the CDO against the operations of the power plant in Pagbilao.

It said PEC filed the application for injunction to prevent the municipality from implementing what it called an “unwarranted CDO.

PEC maintained that the execution of a MoA with Pagbilao is not part of the published and legal requirements for the issuance by the municipality of a local business permit.

AboitizPower said the PEC plant had received all the necessary endorsements required from the relevant local government units, namely: the Quezon provincial government, the municipality of Pagbilao, and the host barangay of Ibabang Polo.

“All clearances and endorsements from national government agencies, such as the Department of Energy, and the Department of Environment and Natural Resources, among others, have also been secured,” AboitizPower previously said.

PEC is a joint venture company between Therma Power, Inc. and TPEC Holdings Corp. Therma Power, a wholly owned subsidiary of AboitizPower, is the holding company its investments in non-renewable energy.

AboitizPower said the potential delay in the commercial operations of PEC’s power plant would render it unable to perform its commitments to its suppliers, customers, and to the Luzon grid. — Victor V. Saulon

The Shape of Water triumphs at nail-biting Oscars

HOLLYWOOD — The Shape of Water on Sunday won top honors at the Oscars including the coveted best picture statuette, bringing the curtain down on a Hollywood awards season overshadowed by scandal over sexual misconduct in showbiz.

Guillermo del Toro’s fairy-tale romance led the charge going into the show with 13 nominations, and took home best picture — the top prize of the night — as well as best director and statuettes for production design and best original score.

In a night of honors being shared fairly evenly among several candidates, Martin McDonagh’s dark crime comedy Three Billboards Outside Ebbing, Missouri had to settle for best actress for Frances McDormand and best supporting actor for Sam Rockwell.

Christopher Nolan’s World War II thriller Dunkirk also picked up three awards, but in the less glitzy technical categories, while several movies ended the evening with two trophies.

“I am an immigrant,” an emotional Del Toro said in collecting his first prize of the night, praising the power of filmmaking to “erase the line in the sand” between people of different countries and cultures.

“I want to dedicate this to every young filmmaker — the youth that is showing us how things are done. Really, they are, in every country in the world,” said

“I thought this could never happen. It happens. And I want to tell you, everyone that is dreaming of using fantasy to tell the stories about the things that are real in the world today — you can do it.”

‘LONG OVERDUE’
Hosted for the second straight year by late night funnyman Jimmy Kimmel, the 90th Academy Awards capped a difficult few months during which the industry has declared war on the pervasive culture of sexual impropriety unearthed by the downfall of movie mogul and alleged serial sex attacker Harvey Weinstein.

Kimmel set the tone by targeting Weinstein in his opening monologue, describing the disgraced producer’s downfall following dozens of allegations of sexual harassment and assault as “long overdue.”

“We can’t let bad behavior slide anymore. The world is watching us. We need to set an example,” he said.

McDormand, a winner throughout the awards season for her scintillating turn as a grieving, rage-filled mother in Three Billboards, took home her second Oscar, 21 years after winning for Fargo.

In a statement about the need for inclusion in the industry, she got all of the female nominees in the room to stand to highlight their work.

“We all have stories to tell and projects we need financed,” she said to enthusiastic applause.

Her Three Billboards co-star Rockwell kicked off the night by claiming best supporting actor for his acclaimed turn as a racist, violent police officer.

Best actor went to runaway favorite Gary Oldman, who sat in make-up for three hours a day to disappear entirely into the role of British wartime prime minister Winston Churchill for Darkest Hour.

Allison Janney won best supporting actress for her turn as the cold, sardonic mother of disgraced figure skater Tonya Harding in I, Tonya — capping a sparkling awards season which saw her sweep the major prizes.

“My fellow nominees, you represent everything that is good and right and human about this profession. You are all extraordinary,” the statuesque 58-year-old Janney, the overwhelming favorite, enthused at the podium.

ACTIVISM
With the #MeToo and Time’s Up campaigns against sexual misconduct and gender inequality dominating the 2018 awards circuit, this year’s Oscars gala was seen as an opportunity for Tinseltown to support female filmmaking.

Greta Gerwig, only the fifth woman in Oscars history to be nominated for best director — for comedy/drama Lady Bird — however went home empty-handed, despite other nominations for best picture and best screenplay.

There was also the first nod in history for a female cinematographer — Rachel Morrison, who shot Dee Rees’s racial drama Mudbound — although the award ended up going to Roger Deakins on his 14th attempt, for Blade Runner 2049.

The Time’s Up initiative was not as visible as at the Golden Globes in January, with no coordinated protest — like the striking Globes red carpet “blackout.”

But towards the end of the show, Salma Hayek fronted the presentation of a video of stars advocating for women’s rights and racial equality, including Ava DuVernay, Chadwick Boseman, Lee Daniels and Geena Davis.

“This entire fall, (through) the #MeToo, the Time’s Up movements, everyone is getting a voice to express something that has been happening forever, not only in Hollywood, but in every walk of life,” said Mira Sorvino (Mighty Aphrodite).

In another nod to the women’s movements, the Academy of Motion Picture Arts and Sciences tapped past winners Jennifer Lawrence and Jodie Foster — on crutches — to present McDormand’s best actress Oscar.

Traditionally, the previous year’s best actor winner would present that statuette, but Casey Affleck, who triumphed in 2017 for Manchester by the Sea, withdrew under a cloud of sexual harassment accusations he denies.

PRESENTERS ATONE FOR 2017 FLUB
Other winners included Pixar’s Coco for best animated feature and A Fantastic Woman — a love story from Chilean director Sebastian Lelio with a much-praised star turn from transgender actress Daniela Vega — in the foreign film category.

And Jordan Peele won the award for best original screenplay for his highly acclaimed debut film, horror satire Get Out.

Organizers were looking to rebound after last year’s flubbed announcement by Warren Beatty and Faye Dunaway of the best picture winner — the trophy was initially given to La La Land, when the actual winner was Moonlight.

In a surprise turn of events, Beatty and Dunaway were tapped to present the same prize this time around, and the presentation went without a hitch.

“It’s so nice seeing you again,” joked Beatty, to laughs from the audience. — AFP

THROWBACK SUNDAY: The first Hispanic actress to win an Oscar, Rita Moreno returned to the red carpet on Sunday. “This is the gown I wore in 1962 when I won my Oscar” for West Side Story, said the 86-year-old Moreno, showing off her strapless black gown with a ballooning skirt printed with dramatic gold graphics. The gown was by the great Filipino couturier Pitoy Moreno. She is seen here with director Sebastián Lelio as they pose in the press room with the Oscar he won for Best Foreign Language Film.

And the Oscar goes to…

• Best Picture — The Shape of Water

• Best Director — Guillermo del Toro, The Shape of Water

• Best Actor — Gary Oldman, Darkest Hour

• Best Actress — Frances McDormand, Three Billboards Outside Ebbing, Missouri

• Best Supporting Actress — Allison Janney, I, Tonya

• Best Supporting Actor — Sam Rockwell, Three Billboards Outside Ebbing, Missouri

• Best Animated Feature Film — Coco

• Best Foreign Language Film — A Fantastic Woman

• Best Documentary — Icarus

• Best Documentary Short — Heaven Is a Traffic Jam on the 405

• Best Short Film (Live Action) — The Silent Child

• Best Short Film (Animated) — Dear Basketball

• Best Adapted Screenplay — James Ivory, Call Me By Your Name

• Best Original Screenplay — Jordan Peele, Get Out

• Best Cinematography — Blade Runner 2049

• Best Original Score — The Shape of Water

• Best Original Song — “Remember Me” from Coco

• Best Production Design — The Shape of Water

• Best Makeup and Hairstyling — Darkest Hour

• Best Costume Design — Phantom Thread

• Best Visual Effects — Blade Runner 2049

• Best Film Editing — Dunkirk

• Best Sound Editing — Dunkirk

• Best Sound Mixing — Dunkirk

Oscars red carpet winners

HOLLYWOOD — After a Hollywood awards season of statement red carpets including “blackouts” at the Golden Globes and Baftas, the movie industry’s finest embraced a rainbow of color Sunday at the Oscars.

From classic white to fire engine red, with shades of teal, fuchsia, powder blue, and lavender mixed in, here are some highlights of the style parade on Tinseltown’s biggest night:

WHITE-HOT
White is associated with the suffragette movement, and on Sunday, many of Hollywood’s top stars embraced it.

Get Out star Allison Williams was one of the first stars on the red carpet and her look was killer — a cream beaded Armani princess gown with sheer cap sleeves that earned raves in the Twitterverse.

Jane Fonda also embraced the ice princess look, looking fabulous at age 80 — !! — in a sculpted white Balmain gown with a geometric neckline.

Laura Dern — who joined the Star Wars family last year in The Last Jedi and was to present an award on Sunday with her co-stars — wowed red carpet watchers in a Calvin Klein gown with a large tie draped over one shoulder.

And Mary J. Blige — the first person to be nominated for acting and song writing for the same film, Mudbound — wore a white gown with a glittering bodice and an asymmetrical neckline. She performed during the gala.

LADIES IN RED
Allison Janney — seen as the favorite to take home the Oscar for best supporting actress for her searing portrayal of figure skater Tonya Harding’s mom LaVona in the biopic I, Tonya — looked ready for her close-up.

The statuesque actress was red-hot in a show-stopping fire engine red Reem Acra gown with flowing sleeves, a plunging neckline — and plenty of diamonds to fill the gap.

“This is my first time at the Oscars,” she told E! television. “It’s pretty overwhelming.”

Three-time winner Meryl Streep also wore red — a simple gown with a deep-V neckline and three-quarter-length sleeves. She is again a nominee this year, for Pentagon Papers drama The Post.

US OLYMPIC MEDALISTS KICK BACK
Some of America’s top Olympians graced the red carpet, including bronze medalist figure skaters Mirai Nagasu — in an ethereal powder blue Tadashi Shoji gown — and Adam Rippon, sporting a curious black bondage-inspired harness jacket.

Skier Lindsey Vonn, who earned bronze in the downhill competition, bared some skin in a sheer black sequined lace gown with flapper fringe.

CLASSY WITH A TWIST
Hollywood’s men tried to look classic and make a statement at the same time.

Oscar nominee Jordan Peele — who wore a snappy red jacket to Saturday’s Spirit Awards, where he took home the top prize for horror satire Get Out — went for a white dinner jacket on Sunday.

The star of his film — Britain’s Daniel Kaluuya, also a nominee — wore a striking brown jacket with black lapels.

One of Kaluuya’s competitors, Timothee Chalamet (Call Me By Your Name), went for an all-white suit and the best accessory — his mom.

And Call Me screenwriter James Ivory paid Chalamet the ultimate compliment — wearing a shirt with the actor’s face on it. — AFP

Upscale builder Alveo Land is on a roll

By Bjorn Biel M. Beltran,
Special Features Writer

SALES swell for Ayala Land, Inc.’s (ALI) upscale property brand Alveo Land. And foreign businessmen from countries like China and Hong Kong are behind it.

There’s huge demand for high-end residential, commercial, and office developments in the country, Alveo Land told reporters in a media briefing on Feb. 28.

The upscale builder’s properties offered in 2017 were mostly sold out in less than a day from launch, said Alveo Land President Jennylle S. Tupaz.

“Twenty-six percent of our sales last year was attributable to international sales. That’s a growth of two percentage points from 2016’s 24%,” Ms. Tupaz said. “The top three sources would be Mainland China, accounting for 25% [of international sales]; Hong Kong at 18%; North America at 16%; and Taiwan at 8%.”

Alveo Land recently concluded its 15th year performance with a remarkable sales take-up of P45.6 billion, surpassing its initial target for 2017 of P40 billion, and reflecting a 20% sales growth from the P38 billion recorded in 2016.

The company introduced signature properties within ALI’s sustainable estates with launches in areas like Makati, Ortigas-Pasig, Quezon City, Cavite and Taguig. These include developments in Circuit Makati, Alviera in Pampanga, Vertis North in Quezon City, and Evo City in Cavite, among others.

Sales take-up of Alveo Land’s residential and office projects rose in the past year, especially in Circuit Makati. The company’s properties in the area include condominium developments Solstice and Callisto, as well as the office-for-sale The Stiles Enterprise Plaza.

The signature subdivision The Residences at Evo City in Cavite was sold out completely in one day, making it the fastest and highest-selling lot subdivision in the company’s history.

Ms. Tupaz admitted that the company was seeing such strong demand that it had to start limiting the number of properties that a single buyer, local or foreign, could purchase.

“We can’t give all the floors to a bulk buyer,” she said. “Sometimes for residential properties, we put a cap to the number of lots that one can buy or consolidate. Some people will want to buy blocks because they really can afford it, but what we want is a balanced and growing community.”

“I guess it’s a function of the confidence of consumers and investors today,” Rufino Gutierrez, Alveo Land vice-president and group head for project development, sales and marketing, said of the demand. “The market is very strong. The demand is strong every time we launch [a property].”

Mr. Gutierrez said that foreign nationals are locking in investments, optimistic that the Philippines will be one of the top 20 economies in the world by 2050. The effect of such high demand is an increase in prices, but even surging price points are not deterring buyers, he added.

Real estate prices in the Philippines, especially within the Makati, Bonifacio Global City, and Ortigas central business districts — as well as at its outskirts — have skyrocketed in the last decade, Ms. Tupaz said.

“Serendra’s a good example. We launched Serendra in 2004. We launched it at a price point of about P80 to P85,000 per square meter, and today, Serendra is going for about P200,000. That is, if anyone is willing to sell at all,” she shared.

“Our growth trajectory is just beginning. I think what it tells us is that the market has faith in the future of the country. For the economy over the long term, they continue to be optimistic,” Ms. Tupaz added.

Cinema Rehiyon X and the future of PHL cinema

WHAT STARTED as a small film festival at the Cultural Center of the Philippines (CCP) with 28 delegates, 46 short features, and six full-length films, has grown considerably through the years to today’s 10th edition with 160 delegates, 66 short features, and 12 full-length films.

Cinema Rehiyon X Festival was held from Feb. 25 to 28 with the theme “One Country. One Cinema. One Future.” The festival showcased films by amateur and student filmmakers from various regions around the country. Aside from film screenings in universities and the FDCP Cinematheque Manila Center, workshops and forums were also held in different venues around Metro Manila.

Cinema Rehiyon is a non-competition film festival and the flagship project NCCA’s National Committee on Cinema which showcases short feature and full-length films from regions outside Metro Manila.

“[This year’s theme is] One Cinema because Cinema Rehiyon has been going on for 10 years. We’re a special festival because we show films depicting stories that we normally do not get to see for us who are based in Manila. The kind of film and media that we have is usually very Manila-centric and focus on the Tagalog speaking region… What we’ve been missing for 100 years of filmmaking are stories coming from the regions and Cinema Rehiyon is a platform for getting all these stories in one venue,” NCCA Cinema Committee Chairperson Teddy Co told BusinessWorld at the festival’s opening.

“We at the NCCA (National Commission for Culture and the Arts) help organize and fund some of these regional film festivals. They’re now numbering over 20. The Film Development Council of the Philippines (FDCP) under Ms. Liza Diño also has been very active in helping these efforts,” he said.

Film selection for the festival is done per region. “These regional film festivals organize their own little film competitions in the provinces. From there, they already help us to select which to include in the festival. We usually have a selection of 70 to 100 titles,” Mr. Co said. The full-length films, on the other hand, are selected from major festivals such as Cinemalaya, Cinema One Originals, and Sinag Maynila. The festival remains a non-competition as Mr. Co noted that turning the festival into a competition would “instead of promoting Philippine cinema, [we] might start promoting regionalism.”

“All these efforts (film festivals) are designed to develop an alternative cinema — not to replace the mainstream [films] because it will always be there — but to provide a venue for other voices to be heard and other kinds of filmmaking,” Mr. Co said of the Filipinos film viewing preference. “When you put all of these (films) together, it creates such a rich tapestry that shows the diversity of what the Philippines is all about.”

THE STORYTELLER AS AN EXPLORER
During the festival launch on Feb. 25 at the Evia Lifestyle Center in Las Piñas City, an industry forum titled Cinema X: The Future of Philippine Cinema was held with the participants. Director Jerrold Tarog discussed the duty of filmmakers as storytellers.

“As storytellers, we have a big responsibility to make sure that the way we make money from our films is a byproduct of telling new and exciting stories. That we’re not just making money because we are feeding our audiences the same thing over and over, Mr. Tarog said.

“If you’re the audience, [you] don’t pay us (filmmakers) to show you something that you’ve seen before… [Of course], it can always be argued that at least people forgot their problems for two hours, but that’s doing a disservice to the power of storytelling.

“A good transaction would be you — the audience — paying storytellers to take you to places you don’t normally go to in your everyday life… places inside your head or heart contained in stories that make you think differently, and ask questions about the important things in life that let you feel other feelings in a new way or make you feel entirely new emotions.”

Mr. Tarog encouraged producers and directors to take risks in creating films that connect audiences regardless of their regional hometown. “If we are to grow as a nation, we are to have more stories that paint a complete picture of the Filipino, not just the Manileño. If stories are part of identity formation, then our identity is incomplete without the stories from the regions.”

PUSHING THE INDUSTRY FORWARD
FDCP Chair Liza Diño noted in her speech that the first element considered in filmmaking is knowing the different needs of every region. “The needs and the understanding in terms of our own respective cinemas is very different from each other,” she said, adding that the FDCP is continuing to develop film training programs free of charge or for a minimal fee for filmmakers in various regions.

Ms. Diño said that the industry and audiences should be able to embrace regional cinema alongside films with stories set in context in Manila. “Philippine cinema has been very Manila-centric… [I think] there has to be a focus and special attention given to regional filmmakers… These are the things we should show outside that is a representation of who we are.”

In the effort to make film education available, the FDCP film development division in charge of education will offer programs to the public focusing not only on filmmaking but also its marketing and distribution. “This year, we (FDCP) have basic workshops which will not only include the elements of filmmaking, script writing, and production design. We will also introduce distribution and marketing workshops,” Ms. Diño said, adding that knowledge in film distribution would help target film festivals around the country and abroad.

The FDCP is also currently negotiating the showing of regional films and documentaries in cinematheques once a week to increase awareness and viewership, as well as establishing more cinematheques around the country. — Michelle Anne P. Soliman

SunAsia to build Pangasinan solar farm

SOLAR FARM developer SunAsia Energy, Inc. has lined up a total of 135 megawatts (MW) of new capacity for 2019 to add to its 112-MW existing and ongoing projects this year, its top official said.

“We’re building 20 MW in Pangasinan… in [the municipality of] Santa Barbara,” Theresa “Techi” C. Capellan, SunAsia president and chief executive officer, told reporters when asked about the company’s first project for this year.

The solar farm is being developed in partnership with Dagupan Electric Corp., one of the oldest power distribution utilities in the country, and businessman Jose “Joey” P. De Venecia III.

“It will be the first in Pangasinan,” Ms. Capellan said.

SunAsia has three existing solar farms with a capacity of 60 MW, 30 MW and 2 MW, respectively. The latest project, which will break ground in May, will bring the company’s total installed capacity to 112 MW by the end of the year.

For next year, SunAsia Energy has a pipeline of 135 MW, of which 115 MW will be in Mindanao. Its projects in Mindanao are composed of two 50-MW solar farms, and two with a capacity of 12 MW and 3 MW, respectively.

The remaining 20 MW for next year will be in Luzon, Ms. Capellan said.

As a rule of thumb, she said the cost to build a megawatt of solar power has dropped to $850,000, although the estimated price is for projects that are at least 50MW in capacity.

For the Pangasinan project, she said the cost would be higher at $950,000 per megawatt or a total of $19 million. A bigger scale project, such as the two solar farms lined up for Mindanao, will be more cost-effective for SunAsia, she said.

Ms. Capellan said during the time that the second round of solar feed-in-tariff (FiT) was awarded, the price per megawatt was at about $1.6 million.

The existing price trends for solar allows new developers to price the power they produce at a price lower than the FiT rate of P8.96 per kilowatt-hour because of their lower development cost, the SunAsia official said.

The lowest price offered by a new proponent has dropped to as low as P2.98 per kWh.

“Ang aking Toledo, $1.6 million [per MW] ’yon (My Toledo project was at $1.6 million per MW),” she said.

She was referring to the company’s 60-MW Toledo City project in Cebu, which allows co-location with the existing livestock operations. The modules are raised off the ground to allow small animals to roam the grazing area underneath. — Victor V. Saulon

Island Cove embraces tech in race for leisure property market share

By Mark Louis F. Ferrolino,
Special Features Writer

SURGING DEMAND for travel promos and new attractions posted on social media is amping up competition in the local leisure property business.

“With the advent of piso fares, all the travel sales and all these other places like Tagaytay, it’s becoming very competitive,” Gilbert C. Remulla, managing director of Island Cove Hotel and Leisure Park, told BusinessWorld in a Feb. 23 interview.

“Because of the Internet, people are seeing the latest offerings. People are now more sophisticated because they are exposed to the Internet and social media.”

To cope with demand, Mr. Remulla said the leisure property business is now allocating bigger amounts for online advertisements and continuously adding new attractions and upgrading facilities that cater to the changing needs and wants of the market.

At Island Cove, Mr. Remulla said the resort operator is striving to stay ahead of the game by offering something fresh all the time.

Recently, the hotel and leisure park opened a 3,200-square meter animal zone called Island Aviary. It houses different species of birds and offers child-friendly activities such as rabbit and ostrich feeding. Visitors could also hold and carry the 200-pound Burmese python.

In addition to its inventory of function areas, the Island Cove developed a 170-seater function room, the Bayside Deck. It is an air-conditioned events place with views overlooking the Manila Bay.

Last year, the now 20-year-old hotel and leisure park renovated its accommodation facilities, while still maintaining its Mediterranean feel. Rooms were installed with USB charging ports, Wi-Fi Internet connectivity, flat screen televisions and modern bathrooms.

As an additional attraction, Island Cove is introducing new activities including go-karting and mermaid swimming lessons.

“We have to keep on investing and reinvesting in facilities and in people. You really have to keep up with the times or else people will not go to you anymore,” Mr. Remulla said.

He shared that leisure is such a diverse business: what is leisure to one is not leisure to the other. Thus, businesses have to find their niche or figure out the market they want to tap. Island Cove decided to be a family-friendly destination, specifically catering to families with young kids, 10 years ago.

“The advantage of Island Cove is there’s always something for everybody here — you can swim, enjoy nature or take a short break — almost everything is here,” Mr. Remulla said, adding that it is also a perfect venue for weddings, meetings and conferences. “We try to satisfy the different aspects of the market.”

The 36-hectare hotel and leisure park has two main ballrooms, air-conditioned function, meeting rooms, and non-air-conditioned pavilions and function areas.

It also houses various outdoor facilities including swimming pools, a paintball arena, a basketball court, a tennis court, a 1.4-kilometer jogging path, playgrounds, and a giant chess set.

Businesses like hotels, leisure resorts and parks are difficult to manage, Mr. Remulla said. “We are brick and mortar. We build something to make our money back (sic) after building facilities,” he explained. It’s not easy to keep up with the competitors’ latest offerings or with the trending attractions that the market sees in the social media. Adding new facilities calls for new investments,” he pointed out.

Despite the challenges, Mr. Remulla said Island Cove is growing. “It’s growing and we just have to find better ways of growing our business. Whether it’s through efficiency or tapping new markets,” he said.

“After 20 years, there’s definitely something new that we are planning,” Mr. Remulla said.

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