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Security Bank starts peso bond offer

BW FILE PHOTO

SECURITY BANK Corp. is targeting to raise at least P5 billion from its offering of five-year peso-denominated bonds launched on Monday.

The notes have a tenor of five years and one month and are priced at 5.7% per annum, Security Bank said in a disclosure to the local bourse.

The bank has the option to upsize the issue, it added.

“We’re excited about this peso bond offering, which will support our strategic initiatives and diversify our funding sources. We’re confident this offering will deliver value to our clients looking to invest in a high-quality instrument with attractive returns,” Security Bank Executive Vice-President and Financial Markets Segment Head Arnold Q. Bengco said.

Proceeds from the issuance will be used for lending and expansion of Security Bank’s funding base, the lender added.

The bonds will be issued out of the bank’s P200-billion peso bond and commercial papers program.

Security Bank will offer the bonds at a minimum investment amount of P100,000 with additional increments of P10,000.

The offer period began on Monday and will run until Aug. 13, unless adjusted by the bank. The lender said it will list the bonds on the Philippine Dealing and Exchange Corp. on Aug. 20.

Philippine Commercial Capital, Inc. and SB Capital Investment Corp. were tapped as the joint bookrunners, joint lead arrangers, and selling agents for the issuance.

Security Bank last tapped the domestic bond market in July 2023, where it raised P18.5 billion from the issuance of fixed-rate corporate bonds due in 2025.

The bonds were priced at 6.425% per annum.

Proceeds from the issue will be used to diversify the bank’s funding sources and support its lending activities, the listed lender earlier said.

Security Bank’s net income rose by 11.4% year or year to P2.63 billion in the first quarter amid growth in the bank’s retail and micro, small, and medium enterprise businesses.

Its shares closed at P62.75 apiece on Monday, declining by 25 centavos or 0.4% from the previous day’s finish. — AMCS

Safeguarding funds for national defense

BW FILE PHOTO

ACCORDING to a working paper from the Ateneo Policy Center entitled, “Toward Increased and Stable Investments in National Security in the Philippines”: “Policymakers tacitly accepted that with the US presence in the country, coupled with the PH-US Mutual Defense Treaty; America has assumed the role of our security guarantor against a potential external adversary.”

This ironclad dependence on the United States (US) is deeply ingrained in how Filipinos conceive of national security and has fostered complacency amongst its political leaders with regards to national defense. Indeed, over-reliance on the former colonial master has made establishing a self-reliant defense force extremely challenging.

Pertinently, the paper also asserts that, “The departure of the American forces revealed the Philippines’ poor external defense capability. This was underscored when the Chinese took over the Philippine-occupied Mischief Reef in 1995, which compelled President Fidel Ramos to push for the Republic Act 7898 or the AFP Modernization Act.”

The modernization of the Armed Forces of the Philippines (AFP) is an ongoing project. Significantly, President Ferdinand “Bongbong” Marcos, Jr., in his keynote address at the Shangri-La Dialogue in Singapore a few weeks ago boldly declared:

“Under our Comprehensive Archipelagic Defense Concept, we shall develop our capacity to project our forces into areas where we must, by constitutional duty and by legal right, protect our interests and preserve our patrimony.”

At this point, it must be emphasized that according to Article II, Section 3 of the 1987 Constitution:

“The Armed Forces of the Philippines is the protector of the people and the State. Its goal is to secure the sovereignty of the State and the integrity of the national territory.”

The urgency of the AFP Modernization program is obvious given the troubles in the West Philippine Sea. And President Marcos’ declaration could not have come at a better time as this initiative has been significantly slowed down by economic crises and recurring political turmoil. But for the upgrading process to really take a massive step forward, graft and corruption in the military must be confronted directly.

In 2011 the Philippine Center for Investigative Journalism (PCIJ) ran a three-part series on corruption in the AFP. This passage from the first part aptly summarizes this grim problem:

“But reforming the military has proven to be an even more difficult task. In the last few weeks, in fact, the stigma of corruption has hung over the armed forces, with the highest levels of command accused as the predators, and troops of the lowest ranks and taxpayers, their prey.”

Corruption in the military was so rife then that the late Senator Miriam Defensor-Santiago sarcastically rebranded the AFP as “predators of the people and the State” in a privilege speech, a scathing twist on the constitutional prescription cited earlier. Unfortunately, the specter of corruption has hounded the AFP ever since.

During the administration of President Benigno “Noynoy” Aquino III, top defense and military leaders were accused of scuttling a weapons deal that was meant to be the Philippines’ primary defense against Chinese incursion in the West Philippine Sea, in favor of purchasing helmets, night goggles, body armor, and radios to be used in the counter-terrorism effort.

A close aide of then President Rodrigo Duterte became the subject of a legislative inquiry on allegations that he intervened to favor a supplier of a combat management system for the two navy frigates to be purchased by the government. Nothing was proven and no cases were filed, and the aide was elected to the Senate.

It must be stressed however, that the rapacious appetite of public officials to steal from the public coffers wreaks havoc in every nook and cranny of the government. As per the seminal paper, “Grand corruption scandals in the Philippines”:

“Despite governance reforms through decades of restored democracy, many government institutions are still easily influenced by powerful vested interests.”

This extract from part two of the PCIJ series is a painful reminder of the AFP’s vulnerability to these “powerful vested interests”:

“But the Philippines’ post-1986 presidents not only tolerated the corruption in the AFP, friends and associates of some of them are said to have even pushed some big, questionable contracts onto the military.

“Beginning 1986, vested political interests started cornering AFP projects particularly in the acquisition of aircraft, boats, munitions, vehicles, and communications equipment.”

Unfortunately, the long list of government corruption scandals just naturally engenders fear that the funds dedicated for national security will be compromised. And even though corruption in the military may no longer be as rampant as it was during the administration of President Gloria Macapagal-Arroyo, severe anxiety still hounds the $35-billion budget that President Marcos has set aside for the modernization program.

Clearly, the operational and logistical decisions on how this money will be spent must be geared towards improving the AFP’s capability to defend an archipelagic state like the Philippines and to protect a potentially high yielding maritime economy. Therefore, the procurement process, no matter how protracted, must never deviate from this goal. Otherwise, the Philippines stands to lose more than its battle to defend the West Philippine Sea.

The reality is Beijing will continue to display its naval superiority. And it will not cease employing dangerous and unprofessional maneuvers in the West Philippine Sea. But this fact should not be used as a justification for reviving our over reliance on the US for external defense. In fact, the Mutual Defense Treaty should serve as an uncomfortable reminder of the failure of successive administrations to establish a self-reliant defense posture for the Philippines.

The primary objective must unequivocally be to become a maritime powerhouse in the region. Every major state staking a claim in the South China Sea has a robust and respectable naval force, except the Philippines. If this does not change, then malicious and aggressive incursions by foreign ships in the West Philippine Sea will persist.

The David versus Goliath metaphor that is constantly being used to rationalize the disparity between the navies of China and the Philippines is really not helpful. The David in the current context will never beat Goliath with just smarts and unshakeable faith. He must be a Goliath himself to secure the victory he so desperately needs.

Thus, today Filipinos face the supreme challenge of making sure that the military leadership make decisions based on national defense requirements and nothing else. And, of course, that gargantuan task of protecting the AFP Modernization program from graft and corruption. Voters must take to heart that the failure to do so would be utterly catastrophic for future generations of Filipinos.

 

Michael Henry Yusingco is a law lecturer, constitutionalist, and senior research fellow at the Ateneo Policy Center.

A woman who blindly conformed or feisty creator of her own story? What we know about the real Lady Jane Grey

“HISTORY REMEMBERS Jane as the ultimate damsel in distress — known for her death, rather than her life. Fuck that! What if history were different?”

So says the promo for My Lady Jane, an alternative history about Lady Jane Grey who was Queen of England, France and Ireland for little more than a week in July 1553. (The series is currently showing on Amazon Prime Video. — Ed.)

This avowedly “alt-universe of action, history, fantasy, comedy and steamy romance” series, as the press release calls it, takes all sorts of liberties, but in some ways, it may be closer to the mark than we might imagine. These fictional women are almost as feisty as the historical Jane and her cousin, Mary, who would become Queen Mary I.

Jane has often been portrayed as a tragic figure. In this, the French painter Paul Delaroche has a lot to answer for. His 1833 visual melodrama, The Execution of Lady Jane Grey, remains a powerful image attached to her history.

Delaroche’s romanticized vision seemed to capture the pathos of a young woman blindly following expectations and sacrificed to dynastic politics — establishing its own influential alt-history.

SO WHAT DO WE KNOW ABOUT LADY JANE GREY?
The great-granddaughter of Henry VII and great-niece of Henry VIII, Jane had access to an unusually rich humanist education for a woman of her time and demonstrated an exceptional ability to make use of it, writing letters in Latin and Greek and learning Hebrew. This made her the talk of Protestant Europe.

For Jane, studying seemed an escape from the pressures of her parents. She told one scholar she found studying with her tutor a relief from being in the presence of an exacting mother and father, time when “I think myself in hell.”

Jane’s commitment to Protestantism saw her writing to one of continental Europe’s leading reformers, Zurich-based Heinrich Bullinger, before she was 14.

But Protestantism in England was under threat. By mid 1553, 15-year-old King Edward VI was dying. Edward’s heir was his Catholic, older half-sister Mary, who, if she were to reign, looked set to undo the Protestant kingdom.

At stake for Mary and Jane, two strong-willed women, were competing visions of faith for the kingdom of England. Under Mary, England would return to the Catholic Church. Under Jane, England would continue along the course of Protestantism, launched by her great-uncle Henry VIII.

Edward’s solution was to disinherit his sisters, and to pass the crown to Jane and her future male heirs.

But Edward’s draft plan for his succession suggests there was some uncertainty about whether placing Jane as queen was the right idea. After all, England had no history of successful ruling queens. He had first written that the crown would go to “L Janes heires masles,” and then amended it to read “L Jane and her heires masles.”

When Edward died on July 6, 1553, the letters patent issued regarding his will bore the signatures of more than 100 of the kingdom’s leading men. Supporters of the Protestant vision for England held almost all key positions of power.

On July 9, Jane, aged only 15 or 16, was informed of Edward’s death and her new status. On July 10, she was proclaimed Queen, signing herself “Jane the Quene” on official documents.

But Mary was not giving up. She had been gathering supporters in the days before Edward’s death. On July 10 she wrote to the Privy Council, England’s leading body of men advising the monarch, informing them she was queen and expected their obedience. She had gathered a large army behind her, and what likely sealed her success was the work of a faction combining Catholics and conservatives in the Privy Council who flipped the council’s allegiance to Mary.

Jane’s support rapidly collapsed. The kingdom’s powerful men must have weighed their prospects in the two regimes, and most could likely find a place to operate in either.

WINNER TAKES ALL
As she took the throne, Mary needed a way to explain away Jane. She was to be tried for high treason, but she was also a relative.

A Jane misguided by others was a convenient version of history.

At first, Mary spared the execution warranted by the guilty verdict for both Jane and her equally youthful husband, Guildford Dudley. But further attempts at rebellion in January 1554, led by Jane’s father, pushed Mary to carry out the sentences.

Even then, Mary postponed Jane’s execution date to allow her time to convert to Catholicism. Jane refused, expressing her resolve for the same beliefs that had guided her decisions and actions.

On Feb. 12, 1554, Jane stood on the scaffold. She gave a speech that claimed both her innocence and her guilt.

Perhaps, as she saw Mary’s version of history increasingly take root, she wanted to assert her own.

And so we are left with a story of the tragic teen queen vs bloody Mary. As the promo says: “there is always power, if you know how to play the game” — and this game didn’t end with Jane’s death.

 

Susan Broomhall is the Director of the Gender and Women’s History Research Center, Australian Catholic University. She receives funding from the Australian and Swedish Research Councils.

Allied Care Experts (ACE) Malolos Doctors, Inc. to conduct Annual Stockholders’ Meeting on July 29

 

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Robinsons Land eyeing to launch 2 residential projects in second half

GOKONGWEI-LED property developer Robinsons Land Corp. (RLC) will likely launch at least two new residential projects in the second half of the year, a company official said on Monday.

“We’ll probably launch one to three projects for the rest of the year, depending on the location,” said RLC Senior Vice-President and RLC Residences General Manager John Richard B. Sotelo on the sidelines of the Economic Journalists Association of the Philippines-San Miguel Corp. Economic Forum 2024.

Mr. Sotelo said the company is considering launching two to three towers in Cainta, Rizal as it has already launched four towers.

“So we’re thinking of launching maybe two to three more because demand has been very good. If we launch another one after that, we’ll see. Depends on how the market goes,” he said.

Mr. Sotelo said the company is considering launching two to three towers in Cainta, Rizal, having already launched four towers.

“Demand has been very good. If we launch another one after that, we’ll see. It depends on how the market goes,” he added.

He also said that RLC is optimistic about the prospects of the residential market following its sales performance of approximately P21 billion worth of projects launched in the past four months.

“We just launched the second tower of Le Pont last July 4… If you combine that with Mira, which we launched in April, we’ve already launched roughly P21 billion worth of inventory in the past four months,” Mr. Sotelo said.

“The market response has been good, which honestly, we expected to be good but not this good. Because, whatever you say, it’s still a high-interest-rate environment, and inflation is still a bit high, but the response has been quite good,” he added. — Sheldeen Joy Talavera

FMIC appoints Ocampo as president, director

FIRST METRO Investment Corp. President Antonio R. Ocampo, Jr.

FIRST METRO Investment Corp. (FMIC) has appointed Antonio R. Ocampo, Jr. as its new president and director effective July 1, it said on Monday.

Mr. Ocampo succeeds Jose Patricio A. Dumlao, who retired from the Metrobank Group’s investment banking arm on June 30 after heading it for four years, FMIC said in a statement.

“We are delighted to welcome Anthony Ocampo at First Metro. With Anthony’s extensive experience in investment and corporate banking and deep understanding of relationship management, we are confident that he can steer the company to achieve sustained growth and develop robust relationships with our clients,” FMIC Chairman Mary Mylene A. Caparas said.

Mr. Ocampo has over 30 years of experience in corporate and investment banking, FMIC said. He was previously president and director at ORIX METRO Leasing and Finance Corp., ORIX Rental Corp., and ORIX Auto Leasing Philippines Corp. He also led Metropolitan Bank & Trust Corp.’s (Metrobank) Corporate Banking group.

ORIX METRO is a joint venture between Metrobank and Japan’s ORIX Corp. that provides leasing and financing services for movable equipment.

Meanwhile, before he joined the Metrobank Group, Mr. Ocampo was Global Network Banking head at Deutsche Bank AG’s Corporate and Investment Bank group. He also had other relationship management roles at Deutsche Bank, International Exchange Bank, and Equitable PCI Bank, FMIC added.

FMIC’s listed parent Metrobank saw its net income rise by 14.45% year on year to P11.997 billion in the first quarter.

The bank’s shares climbed by 10 centavos or 0.15% to close at P65.10 apiece on Monday. — AMCS

Entertainment News (07/09/24)

BINI releases new single with Puregold

FILIPINO girl group BINI, known for their chart-topping hits, has released a collaboration with Puregold. The group took on the supermarket chain’s theme song, “Nasa Atin ang Panalo,” following a music video featuring local musicians SB19, Flow G, SunKissed Lola, and BINI themselves. “When we decided to feature and work with our country’s leading musical artists, we knew we had to collaborate with BINI,” Puregold President Vincent Co said in a statement. BINI is also set to be one of the main acts at Puregold’s Nasa Atin ang Panalo Thanksgiving concert on July 12 at Araneta Coliseum in Quezon City.

SB19 debuts on The First Take

POPULAR Japanese live music channel The First Take recently featured five-member Filipino boy group SB19. In the video, they performed their song “Gento,” which became a hit on TikTok for its addictive tune and memorable dance moves. As with all musicians who appear on the channel, they performed and recorded the song in a studio in one take, hence the series’ name. “It was a true first take, so we were very nervous and overwhelmed, but it was fun and an amazing experience,” the group said in a statement. The video can be watched on The First Take’s YouTube channel.

Barbie Almalbis drops avant-pop track

AFTER collaborating with indie-folk band Munimuni on the song “Tupa” and co-headlining the Mist Music Festival in Canada, Barbie Almalbis has unveiled a new sound with her latest track, “Desperate Hours.” Produced by La Ball’s resident arranger and studio whiz Nick Lazaro, the song serves as the first official single off Ms. Almalbis’ upcoming 5th studio album, to be released at the end of the year. It is a track taking after the avant-pop music of Bjork, Melanie Martinez, and St. Vincent, using unconventional guitar riffs and loose structures in the usual pop format. “Desperate Hours” is out now on all digital music streaming platforms.

Dixie Sheikhs to close Jeepney Jazz series

TO cap off this season’s Jeepney Jazz sessions, Dixie Sheikhs will be bringing playful mash-ups on July 13, 8 p.m., at the Ayala Museum in Makati. Presented by the Filipinas Heritage Library (FHL) in partnership with Purefoods Deli, the series of concerts centered on the uniquely Filipino jazz sound and will welcome the group’s Dixieland classics. The band’s repertoire will include famous tunes of early jazz in America and experimental and contemporary Filipino songs presented in the musical style of the 1920s and 1930s. Ronald Tomas, arranger and Dixie Sheikhs band leader, aims to draw parallels between the airwaves of pre-war Philippines and today’s Pinoy popular songs. Tickets — which are P1,500 for regular, P1,200 for students and Ayala employees, and P1,000 for seniors and PWDs — will include food and drinks and are now available at FHL’s website.

Belle Mariano releases EP ahead of sold-out concert

ACTRESS-SINGER Belle Mariano is back with a new extended play (EP) called BELIEVE, a collection of tracks about accepting one’s fate, overcoming pain, and making big dreams. It serves as a prelude to her sold-out concert of the same name happening on July 13. The mini album has five songs, all produced by StarPop label head Roque “Rox” Santos. While the concert will be at The Theatre at Solaire in Parañaque, fans can also catch a livestream via iWantTFC mobile app and website or through iWantTFC Tickets for P599. Joining Ms. Mariano as her special guests are Donny Pangilinan, Moira dela Torre, Denise Julia, and Martin Nievera. BELIEVE is out now on all digital music streaming platforms.

Spotify releases data on Filipino podcasters

MORE and more Filipinos are turning on their mics and bringing their ideas to life via podcasts, according to a recent study unveiled by music platform Spotify. It showed that “podfluencers” have come about from the growth of podcast creation and consumption in the Philippines. Podcast creators grew more than tenfold, with 72% of podcast consumption in the country coming from local shows, the platform said. Its study is now available to view online.

STAYC unveils debut full-length album

K-POP group STAYC has released their debut full length album Metamorphic, following their mini-album TEENFRESH in 2023. It is produced by Black Eyed Pilseung (B.E.P.), with the goal of capturing the six-member girl group’s vibrant energy and quirky musical energy. The title track, “Cheeky Icy Thang,” is set to a runway strut in the summer, setting the tone for the group’s album. Metamorphic is out now on all digital music streaming platforms.

Actor Kim Ji Soo debuts in PHL in Black Rider

KIM JI SOO, a South Korean actor, has made his Philippine debut as a cast member of GMA 7’s hit primetime series Black Rider. Known for his roles in popular K-dramas like Moon Lovers: Scarlet Heart Ryeo, Strong Girl Bong-soon, and My First First Love, the actor will portray Adrian Park, a half-Filipino, half-Korean professional killer. In the show, he displays his handgun skills alongside Yassi Pressman’s character, Vanessa Romero.

Hanabishi launches BT21 Mini Jumbo Fans

HANABISHI Appliances is set to release a Special Edition Mini Jumbo Fan Collection featuring the characters of BT21. BT21 is a new IP co-created by Line Friends and the K-pop group BTS. Rather than simply creating avatars of the physical appearance of the band, BT21 consists of eight different characters created by the members of BTS. Since its launch in 2017, BT21 has come out with varied products bearing the designs of the “BT21 Universe” Available in candy colors and featuring a different character for each fan, the Hanabishi special edition mini jumbo fans are not just practical but also collectible items. The cartoon characters — Koya, RJ, Shooky, Mang, Chimmy, Tata, and Cooky — will have their own seven-inch mini jumbo fan. All the fans have a three-speed option control, 90-degree tilt function, thermal fuse protection, powerful airflow, and turbine grill. Each fan will retail for P1,299. The Hanabishi special edition mini jumbo fans featuring BT21 will be available this month.

Allied Care Experts (ACE) Medical Center-Palawan, Inc. to hold Annual Meeting of Stockholders on Aug. 2

 

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The Philippines’ public debt stock and debt transparency

I am tackling two topics in this piece, so let us go straight to the numbers.

Our public debt is approaching P16 trillion.

Last week the Bureau of the Treasury (BTr) announced the public debt stock for May 2024. The actual debt was P15.35 trillion, 68% of it — or P10.44 trillion — is domestic debt. If guaranteed debt is included, our total public debt is P15.7 trillion.

I compared the numbers with those of recent years, all during May for consistency of comparison. The biggest increase in actual debt was P2.18 trillion from May 2020 to May 2021, or a 24.5% increase in just one year. There are two emerging trends.

One, there is a declining expansion in debt, from 24.5% in 2021 to only 13% in 2022 and 2023, and only 9% in 2024. This is good.

Two, there has been continued high expansion in external loans, with an average 18.4% annual increase from 2020 to 2024. We are borrowing more from the multilaterals (see Table 1).

The main cause of the continued expansion of our public debt despite high GDP growth is that National Government expenditures keep rising fast, and the high interest rates that push our interest payment even higher. For instance, the interest payment (principal amortization not included yet) of our public debt was P502 billion in 2022, P582 billion in 2023, and is projected to be P670 billion this year. The actual interest payment from January-May 2024 was already P321.6 billion, or an average of P64 billion/month. If this rate continues, our full year 2024 interest payment would be P770 billion, much larger than the P670 billion target. We need to grow 6-7% yearly so that revenues expand in step with GDP expansion.

Department of Finance (DoF) Secretary Ralph G. Recto noted the link between growth and fiscal targeting. At the Economic Journalists Association of the Philippines (EJAP)-SMC Economic Forum yesterday, July 8, Mr. Recto said that “Since fiscal goals are anchored to growth targets, setting high GDP targets amidst external headwinds risks a revenue shortfall. This would strain our deficit and potentially increase borrowing. But tempering these targets does not diminish our commitment to fiscal consolidation. Instead, it reflects a confident and conservative approach to fiscal policy-making.”

Department of Budget and Management (DBM) Undersecretary and Principal Economist Joselito R. Basilio agreed with this assessment and made an optimistic note that “The current trajectory, maturity profile, and currency mix of both debt level and Debt-to-GDP ratio remain consistent with the planned fiscal consolidation of the government. If macroeconomic conditions continue to improve, Debt-to-GDP ratio should peak in the next two to three years. Debt levels should peak within the decade.”

Very well, gentlemen. And I really wish that the economic team can persuade the Bangko Sentral to reverse and cut that behemoth of a high interest rate policy very soon. It is a cruel chain that is dragging money from our pockets to the National Treasury direct to the lenders.

PHILIPPINES TOPPED THE DEBT TRANSPARENCY REPORT
Also last week, the Institute of International Finance (IIF) released the “IIF 2024 Investor Relations and Debt Transparency Report.” The IIF is a global association of private finance and investment companies based in Washington, DC. Some 23 factors were considered in the report, and 50 countries were covered. The result is good — the Philippines ranked first in both Investor Relations (maximum score is 13) and Debt Transparency (maximum score is 50) components. Indonesia also scored high, but not the other ASEAN countries (see Table 2).

The DoF highlighted this in their website and social media press releases. Mr. Recto said that “It is very encouraging to see that the Philippines is setting a global benchmark in investor relations and debt transparency… Transparency is most important, especially regarding government debt. We release data regularly to clearly show the public where their taxes and our borrowings go.”

I agree that the Philippines is very transparent when it comes to budget and public debt data. I particularly like the DBM’s Budget of Expenditures and Sources of Financing (BESF) report that they submit to Congress yearly, usually in August. One table there, on “Budget sensitivity to macroeconomic parameters,” shows that a 1% increase in GDP growth can lead to a P33 billion increase in revenues and budget balance.

It is important to have sustained high growth, and an expansion in GDP size which should outgrow the expansion in public debt stock. And the Bangko Sentral should help by abandoning its high interest rate policy.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Priming Philippine property hotspots

PHILIPPINE STAR/MICHAEL VARCAS

(Conclusion)

THIS is the conclusion of my piece on the ideal property investment destinations outside of Metro Manila and Metro Cebu.

PAMPANGA: A SIZZLING AND ASCENDING INVESTMENT DESTINATION
Colliers believes that Pampanga is ripe for more property development  projects. This is already evident given the entry of national developers launching massive vertical and integrated communities. The development of more townships and infrastructure projects will likely further raise the attractiveness of new office, residential, and hotel projects in Pampanga. The completion of big-ticket infrastructure projects in the next 12 to 48 months such as the NLEX-SLEX connector, Central Luzon Link Expressway (CLLEX), and Manila Clark Railway should also partly lift land values and property prices in the province.

Pampanga is ready for more industrial park developments given the presence of the newly modernized and expanded Clark Airport. This should further be supported by a cargo rail project in the province and  nearby urban areas. Pampanga is part of central Luzon which remains an attractive hub for manufacturers and other industrial locators. In our view, the expansion of industrial space in central Luzon especially in Pampanga will only result in a more vibrant industrial sector in the region.

We see Pampanga retaining its stature as one of the most competitive and attractive property development sites in central Luzon. National developers have expansive projects in the province. Colliers sees more aggressive development outside of key areas such as Angeles, San Fernando, Mabalacat, and Porac. The province also continues to attract foreign firms planning to develop horizontal residential projects catering to a growing end-user market. Some of these foreign companies have expressed interest to firm up joint ventures with homegrown property players in Pampanga.

LAGUNA ENJOYING A GENEROUS SLICE OF PROPERTY INVESTMENT PIE
Colliers believes that Laguna remains an attractive option among investors and end-users who plan to live and invest in less dense communities, especially given its proximity to Metro Manila. Colliers sees the entry of national players further raising average condominium prices in Laguna. We are likely to see more developers further testing Laguna’s market for more upscale and luxury projects.

The growing residential demand in the province should be supported by the completion of major infrastructure projects such as the North-South Commuter Railway, NLEX-SLEX Connector Road and Cavite-Laguna Expressway (CALAX).

BATANGAS’ SHARP AS A RAZOR ABILITY TO CAPTURE PROPERTY INVESTMENTS
Residential demand  should  be supported by the further expansion of industrial activities in Batangas. Industrial take-up in Batangas is heavily driven by manufacturing companies particularly engaged in  electronics and packaging. The continued development of infrastructure projects around Southern Luzon especially Batangas  and stable inflow of industrial investments should raise residential land and property values in the province.

In our view, Batangas is viable for more masterplanned projects. Several developers are looking at the province not just for horizontal but also for vertical residential projects. The expansion of industrial activities in the province should further stoke interest in Batangas’ property landscape.  Developers should explore the viability of launching golf communities in the province.

BACOLOD: VISAYAS’ PROPERTY SWEETSPOT
Bacolod City is attracting national players and we see this resulting in the development of more township developments and a further expansion of the city’s residential stock. The entry of national developers is also raising the prices of vertical projects, indicative of property firms’ confidence in the purchasing power of Bacolod city’s investors and end users.

Developers should further assess Bacolod market’s reception for upscale projects, especially in light of newly launched residential towers by national developers. In our view, property firms are likely to further test the market by introducing new investment products (i.e., condotels, commercial lots, serviced apartments.)

Colliers believes that residential demand will also be supported by the development of integrated communities in the city. Bacolod should also benefit from the upcoming Panay-Guimaras-Negros Link Bridge. Construction  will begin in 2025.

CAVITE: A  PROPERTY DYNAMO
In our view, Cavite’s improving connectivity to Metro Manila as well as the aggressive launch of mixed-use communities should raise land and property values in the province and this is likely to compel developers to launch more upscale and luxury residential units.

Cavite is part of Region IV-A, one of the most progressive and dynamic regions in the Philippines. In our view, continued regional economic expansion, improving infrastructure network, and residents’ rising purchasing power should positively influence the appetite for upscale and luxury condominium units in Cavite.

 In our opinion, the completion of the LRT-1 Cavite Extension should boost residential  and leisure-related developments in the province. Once operational, the LRT-1 Cavite Extension is expected to cut travel time between Baclaran and Bacoor to 25 minutes from the current 1 hour and 10 minutes. The extension will also increase LRT-1’s capacity from 500,000 to 800,000 passengers daily.

ZAMBOANGA’S VIBRANT POTENTIAL
Colliers Philippines believes that the development of key cities outside of Metro Manila plays an important role in helping the government achieve inclusive growth. The development of vertical residential projects aside from the construction of the typical horizontal units also signifies a gradual shift in residential preferences, paving the way for a more diverse residential offerings in the market.

Zamboanga Peninsula’s economy grew by 7.8% in 2023, higher than the national growth. Meanwhile construction rose by 17.2% during the period, up from 13.1% in 2022 and after an 18.5% contraction in 2020. Given these indicators, developers should further explore Zamboanga’s viability for more residential projects. Zamboanga already features a condominium project. Property firms should be on the lookout for more development opportunities in the city beyond 2024.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

PPA seeks bidders for P495.41-M Port of Balbagon project

PPA

THE PHILIPPINE PORTS Authority (PPA) said it is inviting bidders for the development of the P495.41-million Port of Balbagon, Camiguin cruise ship port. 

Interested parties may participate and bid for the construction of the Port of Balbagon, Mambajao, Camiguin cruise ship port by the end of month, PPA said.

The invitation to bid, available on the PPA website, states that any bids exceeding the approved contract amount will be rejected during the bid opening.

Eligibility is limited to bidders with prior experience in similar projects.

The selected contractor will have 720 days, or nearly two years, to complete the project.

PPA has scheduled a pre-bid conference for the project on July 16, with the bid opening slated for July 31.

Last month, PPA awarded a contract worth P743.98 million to Iloilo-based construction firm IBC International Builders Corp. for the construction of the Port of Alegria in Buruanga, Aklan.

PPA previously announced plans to enhance its port facilities, including the development of dedicated ports to bolster cruise tourism.

According to information on PPA’s website, the Ports of Currimao in Ilocos Norte, Salomague in Ilocos Sur, Manila, Bohol, and El Nido in Palawan are currently equipped to accommodate cruise vessels. — Ashley Erika O. Jose

Singapore is making life tougher for global talent

TUSIK ONLY-UNSPLASH

IT IS EMPLOYMENT PASS renewal season in Singapore, and the new regime is dominating the conversation at after-work cocktails on Fridays. From September, overseas employees on a work visa will need to fulfil the city-state’s new points-based system, and earn a minimum salary threshold to stay in their jobs. While this mirrors what happens in other countries, it risks turning foreign companies away, and could tarnish the nation’s image as a global business hub.

The program was announced in 2022 to assess an employment pass’s complementarity with the local workforce. Points are awarded for how a candidate’s salary compares to Singaporean peers, along with their education and skills, and whether their nationality improves the diversity of the firm. It puts the onus on employers to prove why they need to hire foreigners.

The government knows that catering to the local population on jobs is important. In 2020, resentment over foreign workers led to the worst showing since independence for the ruling People’s Action Party. It is undergoing the biggest leadership transition in its history, and elections are expected by the end of the year. The issue is a vote winner, a convenient political tactic that both the opposition and ruling party raise whenever polls come around.

Safeguarding jobs for citizens is not unusual. Many countries — including the UK and Canada — do this, to strike a balance between the foreign and local workforce. For many sectors, it makes sense to hire Singaporeans: The population is extremely well-educated and regularly scores among the highest in the world in math, reading, and science. It has historically struggled with instilling a culture of creativity in the exam-driven curriculum, but there are efforts to change that. Still, for a government that trumpets an open and free economy, the perception that it’s restricting jobs for foreigners, after a history of being relatively easy, could do more harm than good.

The new rules are more transparent, says Hsien-Hsien Lei, chief executive officer of the American Chamber of Commerce in Singapore, though she cautions that they have made it harder for US firms to find suitable candidates. “At times we do feel that the talent in Singapore may not be ready for senior level jobs,” she told me. “Those require different levels of exposure and specific skill sets. It’s a small country, with a limited and shrinking workforce.”

Data from AmCham’s 2023 Manpower survey supports this. The new framework provides predictability, certainty and transparency, the survey notes, but companies have expressed lower confidence and increased uncertainty about whether it will allow them to access the talent they need.

There are other factors to consider. The new regulations could have an impact on companies making the decision to set up their regional headquarters here, recruitment firms have told me. Singapore is also no longer a place where foreign talent can start or develop their careers, the way it used to be about a decade ago. Entry-level and the middle of the market jobs are being reserved for the resident population.

For many locals, this is a long overdue adjustment. Some have told me they have felt like second-class citizens in their own country, passed over for jobs they know they are capable of doing. There has been rising frustration with what is seen as a preference to recruit foreigners. Many want the government to implement policies that encourage hiring Singaporeans and see the new guidelines as way to address this discontent and growing income disparity.

The changes seem to be working. In the first quarter of 2024, employment growth for residents was higher than in previous quarters. Meanwhile, non-resident employment contracted for the first time since the third quarter of 2021, driven mainly by jobs in construction and manufacturing sectors.

It is a tricky balance for the government to get right — keeping the economy open, yet also helping the local workforce achieve their career aspirations. The Ministry of Manpower, in an e-mailed statement, pointed to the number of work permits that are available for foreign staff, including the Overseas Networks and Expertise (ONE) Pass, created for what it calls top talent. It also notes the number of people granted the permission to work has continued to grow, as has overseas investment and the number of foreign firms looking to set up regional headquarters.

The reality is that the government’s focus on foreign talent will soon fade. It is an easy fix for a ruling party that has enjoyed enviable political support over almost six decades since Singapore’s independence. Citizens could instead ask that their leaders address the higher cost of living, income inequality and a brutally competitive education system. The bogeyman of overseas talent may well win votes, but in the longer term it won’t fix fundamental issues within Singaporean society.

BLOOMBERG OPINION

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