Nissan strengthens foothold in Mindanao with new showrooms

October 12, 2017 | 12:01 am

DAVAO CITY — Nissan Philippines, Inc., through its partner Gateway Motors Group, is boosting its presence in Mindanao with the opening of a major showroom in Tagum City and the groundbreaking for a similar but bigger dealership in Davao City.

“This (Tagum) dealership is what we call NREDI (Nissan Retail Environment Design Initiative showroom), it has a new design and all our dealers in the next two years will adopt this… This is the first one in Mindanao, the fifth in the Philippines,” Ramesh Narahimsan, president and managing director of Nissan Philippines, Inc., said in an interview in Tagum last week.

Mr. Ramesh said a market study indicated a strong purchasing power among Tagum consumers, “which give us the confidence that Tagum is a viable market.”

Markane C. Goho, president of Gateway Motors, the largest multi-brand car dealership in Cebu, said, “When we bought this almost one hectare property, we planned to use one fourth of it and the rest is for future use. But because the city of Tagum is very rich, Nissan already instructed us to expand even before we inaugurated construction.”

The Tagum showroom has a total area of 781 square meters

Meanwhile, construction for the Davao City NREDI showroom is expected to be in full swing within the first half of 2018.

“With a land of 5,000 square meters, the (Davao) Matina showroom is bigger because the Davao market is bigger,” Mr. Goho said.

Michael C. Goho, Gateway Motors executive vice-president, said the overall goal is to increase Nissan visibility and strengthen its foothold in Mindanao and continue expanding nationwide.

“We look forward to more expansion in the country… We have gotten a feel of the market and it is very positive,” he said.

Mr. Ramesh said Nissan Philippines’ saw a 40% growth in the first half of this year. — Maya M. Padillo

Real GDP: select emerging and developing Asian economies

October 12, 2017 | 12:00 am

THE PHILIPPINES will likely remain a growth leader in Southeast Asia, the International Monetary Fund (IMF) and regional think tank ASEAN+3 Macroeconomic Research Office (AMRO) said, pencilling a 6.6% forecast for 2017 compared to 2016’s 6.9%. Read the full story.

How PSEi member stocks performed — October 11, 2017

October 12, 2017 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, October 11, 2017.

Nation at a Glance — (10/12/17)

October 12, 2017 | 12:00 am

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

‘City of Flowers’

October 12, 2017 | 12:00 am

STUDENTS of the Pasonanca National High School pose with bougainvillaea plants that they are propagating as the local government and the Department of Tourism revive the city’s old tag as the ‘City of Flowers’ through the “Mi Ciudad Limpio y Floriao” (My Clean and Beautiful City) campaign, launched this week as part of the ongoing Zamboanga Hermosa Festival 2017.

The new COSO ERM framework

October 12, 2017 | 12:00 am

Whenever we talk about risk management, what often comes to mind are worst-case scenarios, additional capital requirements, and crisis-management plans; the kind of things that keep management and the board of directors up at night. Risk management, as seen by many, is driven by value preservation and loss prevention which, at worst, stifle business growth. What we don’t usually consider is the good side of risk — as part of the value creation process and as a source of advantage.

THE CHALLENGE
In the 2017 PwC Management Association of the Philippines (MAP) Philippine CEO Survey, 46% of business leaders plan to expand their current business operations by taking opportunity of the tremendous growth and potential of the ASEAN region. However, a majority is cautious about the increasing complexity, volatility, and uncertainty of the business environment.

Taking their cue from the PwC Good Governance Advocate & Practitioners of the Philippines (GGAPP) survey on Corporate Governance, 78% of the respondents, representing directors, compliance, and corporate governance officers, indicated that they have implemented risk management systems to capture the organization’s risk exposures. However, the robustness of these systems and the quality and degree of implementation that influence the board’s and management’s ability to manage known and emerging risks remain a challenge.

Business leaders are looking at the risk management function to give them greater confidence in managing risks to achieve their strategy and business objectives. However, according to the 2016 PwC Global Annual Corporate Directors Survey, many boards are not receiving the risk information they need. Risk practitioners in these businesses are often seen as restrictive and worried, giving only warnings and information on negative consequences.

What if risk practitioners provide the opposite, that is, provide information that improves management’s and the Board’s confidence in achieving their strategy and business objectives? In short, providing insights to improve performance thus helping create, realize, and maintain value through a systematic way of managing risk.

THE UPDATED RESPONSE
In 2001, the Committee of Sponsoring Organization of the Treadway Commission (COSO) issued Enterprise Risk Management (ERM)-Integrated Framework which became one of the world’s most widely used risk management framework. However, since its issuance, the market has evolved, the business environment became more complex, technology-driven, and global in scale, and risk discussions have become more prominent at the board level.

Responding to these challenges, COSO unveiled its new ERM framework, Enterprise Risk Management- Integrating with Strategy and Performance on Sept. 7. PwC, having led the development of the 2001 Framework is also the principal author of this new Framework.

The Framework is applicable to organizations of all sizes and industries. Particularly for the financial services industry, the timing is ideal as the Bangko Sentral ng Pilipinas (BSP) recently issued BSP Circular No. 971 Guidelines on Risk Governance requiring BSP-supervised financial institutions to establish a risk governance framework that should be applied on an enterprise-wide level.

THE FRAMEWORK
During the process of strategy formulation and selection, organizations seek to optimize a range of possible outcomes, such as revenue and/or profitability. Since strategy selection involves making choices and accepting trade-offs, it only makes sense to apply risk management at the onset of strategic planning. However, current practices indicate that risk is evaluated only on a strategy that is already determined and risk management functions monitor risk on already-rolled-out strategy. The downside is that it raises the possibility that the chosen strategy may not be aligned with the organization’s mission and vision in the first place. The implications of this misalignment could have significant impact on the value creation process.

This is one of the areas the new COSO ERM Framework addresses. The updated Framework provides guidance to the board and senior management in integrating ERM with strategy and performance. The updated Framework now defines ERM as: The culture, capabilities, and practices, integrated with strategy-setting and performance, that organizations rely on to manage risk in creating, preserving, and realizing value. The Framework provides increased emphasis on the following:

Strategy. The Framework elevates the discussion of strategy where risk management should be considered during the strategic planning process. This not only enhances strategy discussions but also provides the organization foresight into the risks associated with each strategy option. This way, risk advantage is achieved as organizations will be able to plan even better taking those risks into consideration during strategy selection to maximize desired outcomes.

Performance. The Framework enhances the integration of performance and ERM by exploring how organizations identify and assess the amount and type of risk taken in pursuit of its performance goals, including considerations on over- and under-performance. It facilitates the discussion about the relationship between risk appetite, risk profile, and performance and how risk changes with changes in performance.

Culture. The new definition of ERM puts culture upfront, which did not exist in the old one. ERM is more of a culture than a process or function. It is not risk culture but a culture’s consideration of risk. It is about having risk awareness and mindset in the organization starting with an effective tone-from-the-top from the board and management. The Framework considers and examines the role of culture and its relationship with conduct, ethics, and behavior.

Controls. The Framework delineates ERM from Internal Control. These two frameworks are distinct and provide different focus and therefore, complement each other. They do not compete; rather, they work together with the view of achieving performance objectives. Internal control provides assurance that objective are met while ERM provides confidence to business leaders in their strategic planning process and decision making.

The new Framework consists of five components and 20 principles that align to the business lifecycle of an organization from governance to monitoring, making the risk conversation more intuitive. These components are governance and culture, strategy and objective-setting, performance, review and revision, and information, communication and reporting. These components were developed from the viewpoint of the business to enable the integration, acceptance, and adoption of ERM by the business.

The Framework also emphasizes that risks arise and must be managed at all levels of the organization. Risk frameworks should ensure existing risk identification and assessment practices account for risks at different levels of the organization because risk responses may change at different altitudes within the organization.

THE WAY FORWARD
ERM should no longer focus principally on preventing the erosion of value and minimizing risk to an acceptable level (value preservation due to risk disadvantage) but in creating, preserving, and realizing value (value creation due to risk advantage) through effective risk management. ERM is now viewed as integral and critical to strategy setting and identification of opportunities to create and maintain value, making it a dynamic and integral part of managing an entity throughout the value chain.

As organizations navigate risk and uncertainty, always watchful for growth opportunities, they need to formulate strategies and regularly adjust these to meet the ever-changing business landscape. It is therefore vital to find, adopt, and apply a practical framework for optimizing strategy and performance.

Integrating ERM in strategy setting makes good business sense. Integrating ERM in strategy selection and implementation helps organization accelerate growth and enhance performance. All these add up to enable the organization gain and maintain competitive advantage.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.

Ian T. Gonzales is a manager with the Risk Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.

+63 (2) 845-2728 ext. 3233

jesther.ian.gonzales@ph.pwc.com

5 things to keep in mind when negotiating your first salary

October 11, 2017 | 10:41 pm

So, you finally made it, you’re so close that you could almost see the finish line or the light at the end of the tunnel. The recruitment process is almost over save for one last step—signing the contract. You’re as ready as can be to sign and start immediately, however, there’s a slight problem. The salary is lower than what you originally thought.

Fret not, young fresh graduate, you’re not obligated to accept the proposal up front. You can negotiate. Unsure how? Let us help you. Check out these important things that you should keep in mind when bargaining for your first salary.

It literally pays to be likable

According to JobStreet.com’s 2017 Fresh Graduates Report, attitude is the foremost factor that affects the hiring chance of a fresh graduate. Suffice to say, a candidate coming off with a less‑than‑desirable attitude will most likely miss the meeting where he signs something, preferably a contract.

Think of the field you’re entering

Not all fields are created equal. Salary‑wise, that is. Do you research first about the field that you are entering and then manage your expectations. For a list of the top ten fields with the highest rates for fresh grads according to JobStreet.com’s 2017 Fresh Graduates Report, click here.

Know the going rate for the position

To get an idea how much a position earns, you can consult JobStreet.com’s Salary Report. Keep in mind, though, that the figures on that online tool are just the mean averages based on extensive market research. Your employer might have a limited budget or they might really want you on board that they’ll offer a much higher rate than the figures you’ve seen online.

Be firm but reasonable

Once you get an idea with regards compensation, set a minimum that you’re willing to accept, one that you can live off reasonably well. Write the reasons why this is as low as you’ll settle. Keep a calm and collected head while speaking to the recruiter and remember not to give out ultimatums.

Your alma mater may still matter

JobStreet.com’s 2017 Fresh Graduates Report states that several industries have a preference of their sources of fresh graduate hires. For example, BPOs, retail, real Estate, manufacturing, and food and beverage companies favor fresh graduates from PUP, UP, and AdMU. Meanwhile, IT employers prefer fresh grads from UP, AdMU, and DLSU. Lastly, schools prefer graduates from UP, Philippine Normal University, and PUP.

Negotiations are a tricky business. The key here is practice. Practice what you’ll say and think of all the counter-arguments that can be made. Now, think of your reasons too. While this won’t make you a master at negotiating, at least you have an inkling as to what answers you can give or reason out. That way, you won’t get caught flat‑footed when the topic of expected salary eventually comes out.

About JobStreet.com

JobStreet.com is a leading online job board presently covering the employment markets in Malaysia, Singapore, Hong Kong, Thailand, the Philippines, Indonesia and Vietnam. JobStreet.com currently services over 230,000 corporate hirers and over 15 million jobseekers in its database. To view jobs, click this link.

For more information about this article, or to schedule an interview with JobStreet.com Philippines, please call Mark Nichol Turija, Content Marketing Specialist, at 286-6222.

July flows worsen FDIs’ year-to-date fall

October 11, 2017 | 12:32 am

By Melissa Luz T. Lopez
Senior Reporter

NET foreign direct investment (FDI) inflows fell for the first time in three months in July to the smallest amount in over a year, according to central bank data yesterday that also showed investors rebalancing to equity capital from debt instruments.

Net FDI dropped to $307 million for the month, less than half June’s $674-million inflow and down 37.9% from July 2016’s $493 million. It was the smallest net inflow since a $238-million haul in June 2016.

In a statement, the Bangko Sentral ng Pilipinas (BSP) attributed July’s net FDI inflow drop to foreigners’ move to scale down investments in debt papers of their Philippine affiliates that “outweighed the more-than-fivefold increase in net equity capital.”

FDIs are a key source of capital for the economy that, in turn, generates jobs for Filipinos as these fuel business expansion.

Equity capital investments recorded a $131-million net inflow in July, turning around from June’s $72-million net withdrawals and more than fivefold the year-ago $23 million.

July saw foreigners investing $170 million in equity capital — up more than threefold from a year-ago $46 million — and pulling out $39 million that was 70.7% more than $23 million a year ago.

The Philippine Stock Exchange index returned to the 8,000 level in July following President Rodrigo R. Duterte’s second State of the Nation Address and the US Federal Reserve’s decision to keep interest rates steady.

Companies also chose to reinvest more funds this time, with $71 million in foreign capital retained in the country, 11.5% higher than the $63 million recorded a year ago.

Foreign firms also lent $105 million to their units here in order to support operations and expansion. However, the amount was 84% less than June’s $674 million in intercompany borrowings and is just a fourth of the $407 million invested a year prior.

The July haul placed the seven-month net FDI tally at $3.904 billion, down 16.5% from the $4.677 billion capital that entered the country during the comparable year-ago period.

The seven-month drop was bigger than the first semester’s 14% fall.

Bulk of equity capital infusions in the seven months to July came from Singapore, the United States, Japan, Hong Kong, and the Netherlands, the central bank said. The funds were channelled to companies engaged in real estate; manufacturing; financial and insurance; electricity, gas, steam and air conditioning supply; as well as wholesale and retail trade activities.

One economist described the latest FDI figures as “relatively poor,” while another noted that the shift in investment platforms likely signalled a greater degree of comfort in betting on the Philippines.

“Foreign investments in debt instruments for July were subpar, as it is the lowest monthly level for the year and is below the January-June average,” Angelo B. Taningco, economist at Security Bank Corp., said in an e-mail.

“I think FDIs attaining $8 billion for the full year is still doable, but its chances have gone down in light of relatively low July figure,” Mr. Taningco added, referring to the central bank’s 2017 forecast.

For Ruben Carlo O. Asuncion, chief economist of Union Bank of the Philippines, Inc., the shift in preference to equity capital from debt may reflect improving confidence in local prospects.

“This may be an indicator that investors are no longer in wait-and-see mode, compared to the first six months of 2017,” Mr. Asuncion said.

“The scaling down of placements in debt instruments and favoring equity placements may mean investors are more comfortable in the existing investment climate. Although there are structural reforms that are on line, the general investment sentiment is positive, lending credence to the robust Philippine economic growth story.”

Reacting to the first semester’s net FDI inflow drop, the National Economic and Development Authority yesterday cited 2016’s high base, especially in terms of net equity capital. The socioeconomic planner also assured that work continues to improve the local business climate, with efforts to further ease restrictions on foreign ownership by amending the Foreign Investment Negative List that will be released via an executive order before yearend.

IMF, AMRO see slower PHL growth for this year

October 11, 2017 | 12:31 am

The IMF expects Philippine gross domestic product (GDP) to expand by 6.6% this year, according to its World Economic Outlook (WEO) published yesterday. The multilateral lender retained the tempered outlook that it gave during its annual health check last August.

“The 6.6% growth forecast for 2017 is the same as we released during the recent Article IV consultation. We see continued robust domestic demand driven by investment and consumption, and fiscal policy is supportive of growth; hence, no change to our forecast,” Yang Yongzheng, IMF’s new country representative, said in an e-mailed response to reporters’ queries. Growth was expected to clock 6.8% back in April.

IMF representatives who visited Manila on July 26-Aug. 9 said the Philippines is poised to enjoy “very strong” growth in the coming years, supported by the passage of the first of up to five tax reform packages now being tackled at the Senate as well as the government’s “rightfully aggressive” spending plans on infrastructure.

If realized, the IMF growth forecast means the Philippines will be able to hit the 6.5-7.5% growth goal the government has set for the year.

Philippine GDP grew by 6.4% last semester, with economic managers expecting faster growth this semester as more infrastructure projects are rolled out and with the onset of the Christmas season. Central bank Governor Nestor A. Espenilla, Jr. has said the government’s growth target remains “attainable” so far.

The Philippines will lead ASEAN-5 this year, the IMF said, closely followed by Vietnam with 6.3%; Malaysia, 5.4%; Indonesia, 5.2% and Thailand with 3.7%.

“In the rest of emerging market and developing Asia, growth is expected to be vigorous and marginally higher than in the April 2017 WEO,” the IMF said, projecting Asian economies to grow 5.6% this year, faster than 2016’s actual 5.4%.

The Washington D.C.-based multilateral lender sees China leading Asia growth this year with 6.8%, followed by India with 6.7%.

Philippine inflation is expected to remain manageable, averaging 3.1% this year and 3.0% in 2018, falling within the 2-4% target band set by the central bank.

For 2018, the IMF expects Philippine GDP to grow 6.7%, slower than the 6.9% estimate announced earlier this year and missing the state’s 7-8% goal.

Yesterday also saw AMRO cutting its Philippine growth outlook for this year and 2018 due to a slower rise in investment and consumption.

“The Philippine economy is expected to grow by 6.6% this year before quickening to 6.8% in 2018 as public sector infrastructure spending gains pace while domestic consumption and exports remain buoyant,” AMRO lead economist Sumio Ishikawa said in a statement.

However, these projections are slower than the 6.8% and 7.0% initially pencilled for 2017 and 2018, respectively, in AMRO’s maiden Regional Economic Outlook report published in May.

“After the boost from election-related spending in 2016, the pace of economic expansion moderated to 6.4% in the first half of 2017 as fixed investment decelerated. Private consumption growth also slowed but nonetheless remained robust, supported by gains in employment and sustained remittance inflows,” the statement read.

At the same time, “[b]oth private consumption and exports are expected to remain buoyant going forward, while hurdles to budget execution are also gradually being overcome.”

However, AMRO flagged that delays in the planned infrastructure buildup “could dampen investment activity and undermine growth prospects.”

“The economy continues to have sound macro fundamentals, which should make it less vulnerable to shocks,” the statement read.

“However, AMRO notes that failure to accelerate infrastructure investments through the ‘Build, Build, Build’ program owing to, among others, absorptive capacity constraints of the government and private sector participants could dampen investment activity and undermine growth prospects,” it added.

“A delay in infrastructure projects execution also risks having the additional revenues from the comprehensive tax reform program being diverted to other expenditure items with little growth potential.”

The expected infrastructure rollout pickup, AMRO said, may widen the current account deficit in the next three years which, in turn, could “put strong depreciation pressures on the peso.”

“Likewise, brisk fiscal spending adding to an already buoyant domestic demand, rapid credit growth and rising inflation could give rise to overheating pressures in the near term, although this risk may diminish over the medium term as the economy’s productive capacity improves.” — Melissa Luz T. Lopez and Elijah Joseph C. Tubayan

Catering to changing tastes

October 11, 2017 | 12:30 am

The Entrepreneur Of The Year Philippines 2017 has concluded its search for the country’s most inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each finalist for the Entrepreneur Of The Year Philippines 2017.

The Entrepreneur Of The Year Philippines 2017

Octavia Hizon
CEO
Hizon’s Restaurant & Catering Services, Inc.

CELEBRATING life’s milestones and important events is made special with excellent food and great company.

The desire to help her friends make their celebrations more memorable may be part of the reason why Octavia Hizon, 61, started a small food business out of her own kitchen.

However, Ms. Hizon’s more pressing motivation was the realization that after the birth of her fifth child, she needed to increase her income to help her husband support their growing family. She eventually transformed her small operation into a full-scale catering business.

While she completed a Bachelor’s degree and Master’s degree in Psychology and Guidance Counseling, Ms. Hizon’s true passion and focus were for food and catering.

At the start, she did all the cooking herself, from her own home, which allowed her to perfect signature recipes that are still part of the company’s menu today.

Applying hard work, determination and innate thriftiness, Ms. Hizon led Hizon’s Catering to achieve its own milestones over the years that include building a commissary, pioneering new catering concepts, establishing design and styling departments and eventually developing relevant value-added offerings to support the main catering business.

Ms. Hizon also established standard operating procedures to streamline operations and enhance efficiency for every aspect of the business — from kitchen activities to food serving. She hired food safety officers to implement safety procedures and uphold food quality.

However, the focus on helping clients enjoy unforgettable milestone celebrations remains at the core of Hizon’s services. For Ms. Hizon, catering does not end when customers finish their dessert. Knowing that clients book caterers for events such as birthdays, weddings and anniversaries, among others, she believes that it is important to build relationships with them.

Hence, she trains her people to make sure clients always get the best experience possible. “Giving them the best is giving yourself,” she said. “It’s also good for repeat business in the long run.”

Because of this desire to strengthen relationships, Ms. Hizon welcomes feedback. When some clients commented on a lack of design, Mrs. Hizon established a styling department and design library to provide clients with attractive, tasteful event themes and concepts.

The same openness permeates the entire company.

Ms. Hizon sees her people as family and listens to their ideas and what they have to say. “My people bring different skill sets and experiences to the table,” she explains. “I encourage them to always contribute ideas. The ones with potential, I even send to culinary schools.”

Ms. Hizon’s openness to new ideas and innovations has also resulted in several firsts for the company. It claims to have pioneered the concept of the dessert buffet for a celebrity wedding. While attending a conference in the United States, Ms. Hizon was inspired to bring back chocolate fountains to the Philippines. She claims that Hizon’s Catering was the first to incorporate these features into dessert buffets. Other innovations she introduced included the use of modern equipment like food warmers that can maintain proper temperature for over eight hours. The company also installed a global positioning system in all its catering vehicles to better manage time, efficiency and delivery.

From helping people celebrate family and personal milestones, Ms. Hizon expanded the business to also support corporate events, building up a roster of corporate clients. Hizon’s Catering now has the capacity to cater for up to 21 events a day, including corporate events with as many as 15,000 guests.

Realizing that some clients need more support beyond food and service, Ms. Hizon and her son diversified offerings. In addition to food, Hizon’s Catering now also gives its clients access to stylists, more than 300 accredited venues, as well as value-added services like floral arrangements, invitation printing and bridal car rentals.

Despite how much Hizon’s Catering has grown from a one-woman operation into a leading name in the catering industry, Ms. Hizon has never forgotten to give back to the community. In addition to providing development opportunities for her people, Hizon’s Catering has also conducted feeding programs as well as provided donations and food to the victims of typhoons Ondoy and Yolanda.

Ms. Hizon is an entrepreneur who leads by example. She balances being a mom, wife and entrepreneur. Throughout the success of her company, she has not forgotten to prioritize her family.Throughout the many milestones in her life and that of her company, Ms. Hizon’s philosophy has been constant which she shares with aspiring entrepreneurs: “When you start a business, you have to put your whole heart into it. Always ask the Lord for guidance and love your people.”

The official airline of the Entrepreneur of the Year Philippines 2017 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. Banquet sponsors are Bench; Bounty Fresh Food, Inc.; CDO Foodsphere; Fiori Di Marghi; First Metro Investment Corp.; Global Ferronickel Holdings, Inc.; Hyundai Asia Resources, Inc.; Intermed Marketing Phils., Inc.; Jollibee Foods Corp.; LB; SteelAsia and Universal Harvester, Inc.

The winners of the Entrepreneur Of The Year Philippines 2017 will be announced in an Oct. 18 awards banquet at the Makati Shangri-La hotel.

The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2018 in Monte Carlo, Monaco in June 2018.

The Entrepreneur Of The Year program is produced globally by Ernst & Young.

Peso hits two-month low

October 11, 2017 | 12:15 am

THE PESO dropped on Tuesday to close at its worst in nearly two months due to weaker-than-expected data and strong demand for the dollar.

The local unit closed at P51.44 versus the greenback, down 19.5 centavos from Monday’s P51.245-per-dollar finish. This is the peso’s weakest finish since its P51.59-a-dollar close last Aug. 18.

The peso opened on a stronger note at P51.20 per dollar, and even hit at a peak of P51.16. Its intraday low was at P 51.46 against the greenback.

Dollars traded stood at $929.3 million, up from the $657.8 million recorded the previous trading session.

A trader said the drop was due to trade data that the Philippine Statistics Authority released yesterday.

“The trade data was worse than expected. We’re at a deficit. The dollar weakened against major and regional currencies, but when trade data came out, we saw the dollar strengthen against the peso,” the trader said in a phone interview.

The Philippine Statistics Authority on Tuesday released data on August exports and imports. Exports in the eight months to August rose 13.3% to $42.11 billion from a year ago, while imports were up 8.2% at $59.15 billion from a year ago.

The trade deficit of $2.41 billion in August was wider than the previous month’s $1.65 billion gap.

Another trader said the drop was mainly due to strong dollar demand because of maturing non-deliverable forwards (NDF).

“There was a couple of NDF maturity that needs to be covered. Basically, that’s the only reason why the dollar went up,” the second trader said in a separate phone interview. “When the NDF matures, there’s going be a strong demand for dollars. All matured simultaneously overseas.”

Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines, meanwhile said the decline was unexpected amid rising tensions between US and North Korea.

“The peso unexpectedly depreciated today due to safe-haven buying amid reports about another missile testing in North Korea and continued expectations of one more US rate hike this year,” Mr. Dumalagan said in an e-mail on Tuesday.

For today’s session, traders shared mixed views on the peso-dollar pair’s movement.

“I don’t think it will go high. That is already enough, the there is no more demand. So it could already correct,” said the first trader.

Meanwhile, the second trader noted that the peso may weaken further. “I expect New York will be coming back from a holiday, you might see the dollar strengthen, with the peso to further test the year-to-date resistance of P51.63.”

Mr. Dumalagan also said that the peso may weaken “due to likely hawkish speeches from [Minneapolis Fed President Neel] Kashkari and [Dallas Fed President Dennis] Kaplan.”

The first and second traders expect a range of P51.20-P50.70 and P51.30-P50.60, respectively, for today’s session, while Mr. Dumalagan expects the peso to trade within P51.20 to P51.50 against the dollar. — EJCT with Reuters

Phinma Properties plans 2nd project in Davao City

October 11, 2017 | 12:15 am

By Maya M. Padillo, Correspondent

DAVAO CITY — Phinma Property Holdings Corp. (Phinma Properties) is planning a horizontal residential development as its second project in Davao City, to be located within the vicinity of the mid-rise condominium complex it is developing in the Sasa district.

“It’s a different product. Though still in studying stage, but we are looking (at) 150 units. We think that there are a lot of developments that are on-going now in the vertical side and nobody is really doing a horizontal anymore, unless you are in the Diversion Road,” Pete B. Felix, Phinma Properties vice president for Urban Housing Division, told BusinessWorld.

Mr. Felix said the company has a 2.5-hectare property for the new project, which will likely be developed in two phases beginning the latter part of 2018.

Phinma Properties is now constructing the fifth of the 12 buildings for the Arezzo Place Davao, a complex of five-storey condominiums.

“Our sales are ahead of our construction… If we can sell everything tomorrow, we will construct the sixth building in maybe about two to three years’ time,” he said.

The company is targeting to have all the condominium units sold by 2020.

“I was talking to the country head of (online real estate marketplace) Lamudi, who in fact told me that they monitored a 25% pick up in sales here in Davao from January to today… that’s a very big increase in sales,” he said.

“There’s a lot of development here… and I think influx of demand will be far greater than what can be supplied at this point in time,” he added.

Meanwhile, Phinma Properties is also scouting for potential areas in Cagayan de Oro (CdO) City for both horizontal and vertical projects.

Mr. Felix said their socialized housing division is already preparing to start a project there.

“That is one of the reasons also why our (urban) division is looking to go to CdO because our sister division is already there… It makes practical sense that both divisions are in the same location,” he said.

Phinma Properties’ socialized housing division, in turn, will also be looking for potential projects in Davao after it launches the Cagayan de Oro development.

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