NG budget gap widens in May

June 28, 2024 | 12:33 am

THE NATIONAL Government’s (NG) budget deficit widened in May as spending growth outpaced revenues, the Bureau of the Treasury (BTr) said.

The NG’s budget gap ballooned by 43.1% to P174.9 billion in May from P122.2 billion in the same month a year ago.

Month on month, this was a reversal of the P42.728-billion surplus in April.

“The higher deficit resulted from an acceleration in government spending, pushing disbursement growth for the month to 22.24%, as against revenue expansion of 14.59%,” the BTr said.

In May, state expenditures jumped by 22.24% to P557 billion from P455.7 billion a year ago.

The BTr said this was due to the implementation of capital outlay projects of the departments of Public Works and Highways and National Defense and the social and health programs of the departments of Social Welfare and Development and Health.

“The higher National Tax Allotment shares of LGUs and increased budgetary support to GOCCs (government-owned and -controlled corporations) also contributed to the notable growth of disbursements in May,” it added.

Broken down, interest payments climbed by 47.78% year on year to P61.1 billion due to “additional debt incurred last year and higher interest rates of both domestic and foreign borrowings.”

Primary spending — which refers to total expenditures minus interest payments — rose by 19.69% year on year to P495.9 billion.

Meanwhile, revenues jumped by 14.59% to P382.1 billion in May from P333.4 billion in the same month in 2023.

“The robust outturn for the month was underpinned by higher nontax collections,” the BTr said.

Nontax revenues nearly doubled to P78.2 billion in May from P39.4 billion a year prior.

BTr income surged by 181% to P70.2 billion “due to higher collections from interest on advances from GOCCs, guarantee fees, and the NG share from Philippine Amusement and Gaming Corp. (PAGCOR) income.”

On the other hand, revenue from other offices declined by 44.38% to P8 billion in May.

“The collections from other offices (nontax) including privatization proceeds and fees and charges for May dropped by 44.38% due to the reclassification of accounts from the previous months’ transactions,” it added.

Meanwhile, tax revenues went up by 3.35% to P303.9 billion in May from P294 billion a year ago.

The Bureau of Internal Revenues (BIR) collections increased by 2.79% to P219.2 billion “due to higher tax collections on value-added tax (VAT), taxes on net income and profit (withholding at source and on wages of personal income tax), and miscellaneous tax,” the BTr said.

The Bureau of Customs (BoC) revenues rose by 4.33% to P81.3 billion, amid “improved revenue collection performance (due to) the continued monitoring of the values and classifications of imported commodities, as well as intensified border control and improved trade facilitation.”

FIVE-MONTH DEFICIT
Meanwhile, the budget deficit in the January-May period widened by 24.06% to P404.8 billion from P326.3 billion a year ago.

Government spending rose by 17.65% to P2.26 trillion as of end-May from P1.92 trillion in the same period a year ago.

Interest payments surged by 40.08% to P321.6 billion while primary spending went up by 14.6% to P1.94 trillion.

Meanwhile, five-month revenues stood at P1.85 trillion, up by 16.34% from P1.59 trillion a year earlier.

Tax revenues increased by 11.18% to P1.59 trillion as BIR revenues rose by 12.81% to P1.19 trillion while BoC collections went up by 6.01% to P380.9 billion.

Nontax revenues jumped by 60.58% to P267 billion as BTr income rose by 151.09% to P206.5 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the wider budget deficit may be due to higher inflation that bloated government expenditures.

Inflation picked up to a six-month high of 3.9% in May from 3.8% in April. This brought average inflation to 3.5% in the January-May period.

“Wider deficits would increase the urgency for tax reform measures and other fiscal reform measures, at least intensified tax collections from existing tax laws, among others,” he said.

“At some point, if inflation stabilizes further, there could be some need for higher taxes and new taxes, as a final option,” he added. — Luisa Maria Jacinta C. Jocson

DA to allow 200,000 MT of refined sugar imports

June 28, 2024 | 12:32 am

By Adrian H. Halili, Reporter

THE Department of Agriculture (DA) said it is planning to allow imports of around 200,000 metric tons (MT) of refined sugar to fill a projected supply gap during the off-milling season.

“We will have an importation of sugar by September. We will have an arrival of at least 200,000 MT of refined sugar,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters late on Wednesday.

He said the amount of imports “can be a little bit more” to address the expected supply deficit before the harvest and refining season.

Mr. Tiu Laurel said the Sugar Regulatory Administration (SRA) is expected to issue a sugar order by next month.

“The current stocks will decrease by August or September. We have a gap for 200,000 MT by September or October, then milling will continue again,” he added.

SRA data as of June 9 showed the national sugar inventory rose by 29.3% for raw sugar during the 2023-2024 crop year to 436,229 MT from 337,286 MT in the previous crop year. Stocks of refined sugar jumped by 14.1% to 492,985 MT during the current crop year from 432,215 MT in the previous crop year.

Separately, SRA Administrator Pablo Luis S. Azcona said in a Viber message that Sugar Order No. 2 (SO2) allowed stakeholders to pre-qualify for importation if they had purchased local sugar.

The program called for the voluntary purchase of domestically produced sugar to stabilize farmgate and retail prices. Participants were eligible to avail themselves of an allocation for a future import program.

Mr. Azcona said the agency had already pre-qualified and pre-allocated participants based on their support for local sugar farmers.

Last year, farmgate prices for raw sugar dropped to about P2,300-P2,500 per 50-kilogram (kg) bag, well below the SRA’s trading estimate of P3,000 per 50-kg bag.

Mr. Azcona said that after SO2 was issued, farmgate prices rose to around P2,700-P2,800 per 50-kg bag, which drove retail prices to P73-P100 per kilo of sugar.

As of June 26, the retail price of refined sugar in Metro Manila markets stood at P74 to P92 per kilo, while brown sugar was between P62 and P92 per kilo, according to the DA’s price monitoring bulletin.

“We will activate an import plan should the trigger stock level be reached to ensure a stable supply and stable price for our retail and industrial consumers, as well as to ensure that our farmers will not be affected,” Mr. Azcona said.

President Ferdinand R. Marcos, Jr. had recommended maintaining sugar stocks at 185,000 MT to 200,000 MT, equivalent to a two-month buffer.

Mr. Azcona said the SRA will meet with the Agriculture secretary by the first week of July to determine the need to activate the importation plan.

“We also have to bear in mind that the five million farmers, farm workers, their families, and people dependent on the sugarcane industry are also 100% retail consumers,” Mr. Azcona said.

Manuel R. Lamata, president of the United Sugar Producers Federation of the Philippines, said that the sugar imports could potentially plug any shortages before the harvest season.

“Harvest this coming crop year will be delayed due to El Niño and when we were consulted about this matter, we approved the proposal,” Mr. Lamata said in a Viber message.

Ateneo de Manila economics professor Leonardo A. Lanzona said sugar production was affected by the El Niño weather event, which necessitated the importation of refined sugar.

“However, the overall policy of plugging supply gaps and taming prices through imports is fundamentally unsustainable. Unless we can export other products, we may not have enough foreign currency to pay for these imports,” Mr. Lanzona said in a Facebook Messenger chat.

The US Department of Agriculture projected that Philippines’ raw sugar production would be flat this year at 1.85 million MT due to the effects of El Niño.

The regulator had said that El Niño has greatly damaged the sugarcane crops for the October 2024 season.

It added that the areas of Batangas, Southern Negros, and Mindanao have reported extensive sugarcane damage due to the dry conditions.

Federation of Free Farmers National Manager Raul Q. Montemayor said that agencies should validate the needed volume, timing, and manner of distribution for sugar imports through consultations with stakeholders.

DBCC keeps growth targets until 2028 despite external headwinds

June 28, 2024 | 12:31 am

Ferry boat-Pasig river-sunset — A ferry passes through Pasig River at sunset in Manila, Philippines, July 6, 2023. — REUTERS

ECONOMIC MANAGERS on Thursday retained their growth targets for this year until 2028 despite external headwinds.

The Development Budget Coordination Committee (DBCC), which sets official macroeconomic assumptions and fiscal program, maintained its Philippine gross domestic product (GDP) growth target at 6-7% this year, and at 6.5-7.5% in 2025.

“Despite external headwinds, we are expected to continue surpassing most emerging economies,” Budget Secretary Amenah F. Pangandaman, who heads the DBCC, told the briefing.

“This robust growth momentum is expected to continue over the medium term, with GDP growth reaching 6.5-8% from 2026 to 2028 while considering anticipated domestic and external risks and the latest monetary and trade assumptions of the Bangko Sentral ng Pilipinas (BSP),” she added.

The DBCC also revised the fiscal targets, which Ms. Pangandaman said were “realistic, practical, and adaptive to external and domestic developments.”

Economic managers raised the deficit-to-GDP ceiling for 2025 to 5.3% from 5.2% previously.

The DBCC kept its deficit ceilings for 2026 to 2028, but revised its revenue and expenditure programs.

“The new deficit path will decline more realistically and sustainably, from 5.6% of GDP in 2024 to 3.7% of GDP in 2028, allowing sufficient fiscal space for the government to invest in infrastructure development and other growth-enhancing programs and projects,” the DBM chief said.

Revenue targets were raised to P4.644 trillion (from P4.583 trillion previously) for 2025; to P5.063 trillion (from P4.957 trillion) for 2026; to P5.627 trillion (from P5.487 trillion) for 2027; and to P6.25 trillion (from P6.078 trillion) for 2028.

“On average, revenues are expected to grow by 10.3% every year from 2024 to 2028, reaching P6.25 trillion (16.9% of GDP) by the end of the administration,” Ms. Pangandaman said.

The revised revenue targets will be supported by “enhanced tax administration reforms” and improved collection efficiency, she added.

Finance Undersecretary and Chief Economist Domini S. Velasquez said there is no need to introduce new taxes to meet the revised revenue targets.

“For the rest of the medium term, we actually expect tax revenues to increase…this is largely due to the double-digit increase in the Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC),” she said.

“We’re currently doing a lot of tax efficiency improvements in both the BIR and the BoC. This includes digitalization, regulations to capture e-commerce transactions, and also Customs modernization.”

DBCC also expects expenditures to remain at an average of about 21% of the GDP from 2024 until 2028.

The 2025 spending target was increased to P6.182 trillion (from P6.074 trillion); while spending for 2026 was set at P6.54 trillion (from P6.433 trillion). Expenditures for 2027 were raised to P7.027 trillion (from P6.887 trillion), and for 2028 to P7.621 trillion (from P7.45 trillion).

“We will maintain high investments in infrastructure, which will be between 5% and 6% of GDP from 2024 to 2028. This is expected to create a multiplier effect on the economy, reduce the cost of doing business, support the creation of quality jobs, and ultimately transform the economy,” Ms. Pangandaman said.

The DBCC said it expects the debt-to-GDP ratio to decline from 60.6% this year to 56% in 2028. The threshold considered by multilateral lenders to be manageable for developing economies is 60%.

Economic managers also expect inflation to settle at 3-4% by end-2024, and return to the 2-4% target range from 2025 to 2028.

Foreign exchange assumptions were adjusted to P56-P58 per US dollar this year from P55-P57 previously. The peso is still expected to stabilize to P65-P85 a dollar from 2025-2028.

The DBCC upgraded its exports growth estimate to 5% for this year from 3% previously. Import growth assumption was lowered to 2% from 4% earlier.

It also revised its Dubai crude oil price assumptions to $70-$85 per barrel for this year, from $70-%90 per barrel previously. For 2025 until 2028, the Dubai crude oil assumptions were kept at $55-58 a barrel. — B.M.D.Cruz

Condominium living further on the rise

June 28, 2024 | 12:15 am

SF_paper-style-building-with-trees_FREEPIK-OL — Photo from Freepik

Condos are redefining modern living, becoming the new favorite among Filipinos living in the urban jungles of Metro Manila. Much of the reason can be attributed to the rise of mixed-use developments that offer a balanced lifestyle of live, work, and play that is well-suited to the demands of daily life today.

As urban centers grow more congested and land prices soar, developers are responding to the increasing demand for residential spaces that offer not just a place to live, but a lifestyle. This trend is especially evident in major cities like Metro Manila, Cebu, and Davao, where high-rise condominiums are becoming a prominent feature of the skyline.

Leading real estate developers are developing condo projects within townships, providing a complete package of retail shops, hospitals, churches, and offices right near home. Moreover, these developers are elevating the game with resort-themed, smart homes, and eco-friendly buildings, offering high-quality living spaces in bustling cities.

According to professional services firm Colliers, an additional 9,620 new condominium units will complete construction in 2024, marking the largest completion in five years. Approximately two-thirds of these new units will be located in Metro Manila’s Bay Area.

“Given the delivery of sizable number of new condominium units in Metro Manila this year, Colliers encourages developers to continue offering attractive leasing promos especially for local employees that are returning to traditional office setup,” Colliers advised in their Property Market Report in February.

Interestingly, this has also been accompanied by an increase in interest for leisure condominiums outside the metro.

“An increasing number of Filipinos expressed a heightened interest in acquiring second homes, particularly in residential leisure condominiums in Metro Luzon,” property experts Santos Knight Frank wrote in their Philippine Real Estate Outlook for 2024.

“Tagaytay emerged as the favored location for second homes, with Pampanga and Batangas (Laiya and Nasugbu) tailing behind. In April 2023, San Juan, Batangas saw 689,000 domestic travelers, Nasugbu had 268,022, and Tagaytay welcomed 436,508 tourists. These figures emphasize thriving tourism and widespread appeal, but residential selling rates reveal more evident demand, with 42% of units sold in Metro Luzon classified under residential-leisure.”

Meanwhile, Pampanga leads in the Metro Luzon with a selling rate of P126,374/square meter (sq.m.), followed by Tagaytay at P122,500/sq.m. and Laguna at P117,269/sq.m. Bulacan, Cavite, and Laguna exhibit the lowest average unit prices: P3.7 million for Laguna, P2.9 million for Bulacan, and P2.8 million for Cavite.

“The residential real estate sector in the Philippines has demonstrated consistent growth in recent years, and all signs point towards further advancement in 2024. This growth is attributed to several key factors, including the ongoing process of gentrification in nearby provinces, a recalibrated transportation system, and the turnover of new infrastructures, which will greatly improve interconnectivity between provinces and cities,” Anjo Sumait, manager of Residential Services at Santos Knight Frank, said in the report.

“The idea of gentrification in nearby provinces is influencing the real estate landscape, providing opportunities for development and investment outside of traditional urban centers. This presents a promising prospect for both developers and potential homeowners, as it offers the potential for new urban centers to emerge, thereby spreading economic activities and real estate development.”

Convenience at the forefront

One of the primary reasons for the surge in condominium living is the convenience it offers. Modern condominiums, particularly those designed as a mixed-use development, are designed with the needs of urban dwellers in mind, providing amenities that make day-to-day life more comfortable and efficient. These include fitness centers, swimming pools, co-working spaces, and even retail outlets within the building, offering a self-contained lifestyle all without the need of a commute.

Accessibility is another key factor driving the popularity of condominium living. The mixed-use platform is the most practical choice for real estate developers in Metro Manila particularly because of several factors: the problems of traffic congestion, uneven transportation links and facilities, an excessive concentration of economic activity in traditional central business districts, and the cutthroat competition for real estate.

Stand-alone residential developments or commercial operations have inherent disadvantages, particularly if they are not connected to main thoroughfares or train stations. Hence, developers are strategically making their projects in locations that are well-connected to major thoroughfares, business districts, and transportation hubs. This proximity to key areas reduces the daily commute time for residents, allowing them to spend more time on productive and recreational activities.

There is also the matter of the growing preference for homes that require minimal maintenance, as more and more Filipinos enter into the workforce. Condominiums, often with their professional property management services, cater to this need by taking care of upkeep and security, allowing residents to focus on their careers and personal lives.

The pandemic, of course, also played a part in this shift. According to management consultants McKinsey & Company, the hybrid lifestyle — one where remote working and working from home are staple models for many office jobs — is here to stay.

“If we look at neighborhoods which were very office-dominated, the first main impact is simply fewer people in those offices. That, in turn, means fewer people on those streets, fewer people in the shops or just anywhere in the neighborhood. That, combined with the rise of online commerce, is creating a big challenge for those downtown retail spaces and public spaces in those office-intensive areas,” McKinsey Senior Partner Jonathan Woetzel said.

“The other obvious impact is on residential usage. As people are closer to home, we’re seeing demand for those homes rise. And then around those homes there’s a minor resurgence of retail. So we see the shopping and commerce patterns shifting as the people shift.”

Mr. Woetzel added that the residential mixed-use neighborhood is “alive and thriving,” as people have generally kept innovations from the pandemic that proved successful. “That’s a tribute to what people want: this notion of a walkable, livable environment.”

Aditya Sanghvi, senior partner at McKinsey, said, “The neighborhoods that are performing better are the ones that are pedestrian-friendly, that have great green spaces, and have a mix of office, retail, and experiences. They’re sort of an ecosystem of everything that one might want in their life all sort of in one place.”

As urbanization continues to accelerate, the demand for convenient, accessible, and well-designed residential spaces is expected to rise. Condominium living, with its myriad benefits, is well-positioned to meet this demand, reshaping the way Filipinos live in the urban jungle. — Bjorn Biel M. Beltran

Key trends reshaping the condominium segment

June 28, 2024 | 12:13 am

SF_smart-home-3653454_1920_PIXABAY-OL — Photo by Gerd Altmann from Pixabay

The urban landscape is evolving, and living spaces have become magnets for work, leisure and lifestyle. Condominiums, for instance, are redefining modern living by seamlessly blending convenience and style into living spaces.

Real estate players and companies share the trend and innovation seen in condominiums, highlighting how it is embracing inclusivity, modernity, and sustainability within communities.

In recent years, condominiums have become extremely popular, especially for homebuyers; since living in a condo brings many benefits, providing a secure living environment, convenient locations, cost-effectiveness, less maintenance to worry about, and enhanced security features, among others.

Thus, more urban dwellers are opting for condominium living as it provides a more comfortable, secure, and sustainable living environment.

Smart home technology

When talking about convenience, condos are becoming a top choice, especially with most condos centering living spaces with smart home technologies. Such technologies are connected to a network that can be managed remotely using smartphones, tablets, or other devices. With technology being essential in daily life, it is upgrading living spaces as well. For instance, having a personalized voice assistant that can adjust your lighting or play your favorite show on the television.

Integrating smart home technology and appliances is all about modernity, making daily routines much easier, and curating experiences that align with people’s dynamic lifestyles, with time to spare to do your hobbies or relax and spend the rest of the day with your loved ones. From light automation to washing machines, residents can control everything within the tip of their fingers easily and more conveniently.

Lifestyle amenities

Beyond modern design and technology, another trend in condominium living is the lifestyle-centric amenities that turn into a resort-style experience. With condominiums now designed to seamlessly integrate work, life, and improve well-being, it’s all about finding the perfect balance.

As more people look for ways to improve their health and well-being, having wellness amenities within the reach of condominiums has become more essential. Today, most condominiums offer wellness amenities, including fitness gyms, jogging paths, swimming pools, clubhouses, and playgrounds for residents to enjoy. Most condominiums are centered in supporting an active and healthy lifestyle, providing residents with simple access to a wide range of health and wellness services.

Alongside wellness amenities, condominiums also boast rooftop decks and sky gardens with beautiful scenery. These decks are designed with lush greenery and a picturesque view, perfect for unwinding, watching the sunset, or even stargazing.

Flexible workspaces

Adapting co-living and flexible workspaces in residential properties has driven significant transformations, even in the post-pandemic era. Behind the continued rise of remote work, demand for co-living spaces and workspaces increased in condominiums. Adapting to this demand, flexible home office setups, ergonomic workspaces, and communal workspaces are among the features commonly seen in modern condominiums.

Working from a condo not only offers a convenient workspace for remote workers but also easy access to amenities that enhance the remote work setup. Today, many condos feature work-conducive amenities and workspaces equipped with essential resources like internet connectivity, printers, scanners, private meeting rooms, and quiet study lounges.

With these, condominium living is becoming a game-changer when it comes to work productivity and better work-life balance. Residents get the best of both worlds with convenient workspaces and easy access to lifestyle amenities that can help remote workers relax and de-stress.

Sustainable features

With the environment at the tipping point, sustainability has become an essential feature in the living condominium lifestyle. Sustainability begins in living spaces, and condominiums are maximizing such opportunities. One feature is using solar energy, which promotes green energy within condominiums. Other features, including LED lighting and energy-efficient appliances for heating and air-conditioning, tend to have long-term durability and sustainability.

By utilizing renewable energy sources like solar panels, condominiums, not only lessen dependence on harmful sources, but also reduce carbon footprints, which aligns to decarbonization efforts of the real estate sector.

Also, bringing a touch of nature into condominiums are green roofs, building rooftops covered in plants and vegetations. The use of green roofs serves multiple purposes, like reducing carbon emissions, improving air quality, mitigating urban heat, and water management efficiency. By incorporating green roofs, condominium living promotes a more sustainable and eco-friendly lifestyle.

Another rising feature is incorporating sustainable designs such as the use of eco-friendly materials and putting a touch of modernity to unit designs. For example, many condominium designs focus on bringing sustainable furniture. Bamboo, for instance, is a great option for flooring and furniture because they are durable and long-lasting. It also brings a natural charm inside the condos.

From technological innovation, sustainable design features, and access to many lifestyle services and amenities, these trends make condominium living a worthwhile investment for homeowners and families alike. After all, condominiums are transforming urban lifestyle by blending comfort and modernity within a single living space. — Angela Kiara S. Brillantes

The Philippine condominium market in review

June 28, 2024 | 12:11 am

SF_19199439-OL — Photo by vectorjuice on Freepik

Over the past decade, condominiums have grown in popularity among Filipinos seeking new homes partly because of their versatility as a residential property and as a potential source of income. As more Filipinos move to Greater Manila and as developers build more projects vertically, the condominium market presents golden opportunities for developers and investors alike.

According to the Bangko Sentral ng Pilipinas (BSP), while real estate prices of various types of new housing units in the Philippines contracted by 3.6% in the fourth quarter of 2023, the market did rise by 6.5% year on year. Although condominium prices also declined by 8.6% in the fourth quarter of 2023, it saw a massive increase of 15.6% in the said quarter and saw a modest 4.1% growth overall for the whole year.

There is also an indication of the steady preference of Filipinos for condominiums as residential property. Data from the BSP suggests that 42.6% of Filipinos utilized their residential real estate loans (RREL) to purchase condominiums, the same percentage as those who bought single houses. Additionally, 14.7% opted for townhouses, while duplexes accounted for a meager 0.1% of the transactions.

Condominiums as second homes near tourist destinations are becoming a trend among homebuyers too. Real estate agency Santos Knight Frank mentions that a growing number of Filipinos are showing heightened interest in acquiring leisure condos outside of Metro Manila with the favored locations for these second homes including areas like Tagaytay, Pampanga, and Batangas.

Colliers’ Property Market Update for 2024 shows that the condominium markets in urban centers in Laguna, Cebu, and Cavite are improving as well with selling rates of P129,700 per square meter (sq.m.), P150,300/sq.m., and P150,400/sq.m., respectively. The same report says that the compound annual growth rate of condominium prices in those areas grew by 11.1% in Laguna, 6.9% in Cebu, and 12.4% in Cavite.

Additionally, Colliers’ Q1 2024 Metro Manila Residential Report suggests that close to 3,000 condo units were purchased in the region’s pre-selling market. This growth in demand was fueled by buyers from the lower and upper mid-income brackets, who collectively comprised nearly half of the total units sold during this timeframe, in areas like Mandaluyong, Quezon City, and Alabang-Las Piñas.

Meanwhile, the same report says that the number of pre-selling condominium launches in Q1 2024 totaled 2,600 units, a 59% decrease compared to the same period in the previous year. A potential reason for this cautiousness by developers may be due to “elevated mortgage rates, continued increase in prices of construction materials, surging land values in Metro Manila, and lengthened remaining inventory life.”

The Philippine condominium market is still a cornerstone for urban living amongst Filipinos looking to move to the metro. As the market adapts to evolving consumer demands and market conditions, developers innovate and expand their portfolios to accommodate more Filipinos and investors. The condominium’s role in Metro Manila as a symbol of urban life is set to endure and shape the future landscape of Philippine real estate. — Jomarc Angelo M. Corpuz

Unveiling Banyan Tree Manila Bay

June 28, 2024 | 12:10 am

Luxury living redefined with sustainability at heart

With the recovery and rising prices of units in the real estate market, there is an opportunity for further growth and investment not only for those seeking homes but also for those seeking profitable ventures in the property market. Luxury housing, in particular, is rapidly emerging as a lucrative business for many developers who are eager to capitalize on the demand for high-end properties and the potential for substantial returns on investment.

Known for its fusion of elegant luxury residences and sustainable practices, the Banyan Group is set to debut its first residence in the Philippines with Banyan Tree Manila Bay. Overlooking the beautiful basin of the country’s capital, the first phase of the group’s first venture will be located in Parañaque City, ensuring easy access to major business districts, cultural attractions, and entertainment hubs.

In an interview with BusinessWorld, Banyan Tree Manila Bay Chief Operating Officer Martin Taylor revealed that the initial discussions to develop the Banyan Tree Manila Bay Development Project happened more than five years ago and resulted in the construction of the project. Development commenced even before their grand launch at the Cove Manila in Parañaque last June 25.

“We actually purchased the land towards the end of 2018, quite a while before the pandemic. We started looking at how we could develop it, who we could partner with, and who we could talk to. We were actually very fortunate that Banyan Tree showed an interest in coming to the Philippines, so we were able to make the connection. And they liked the location because of the famous Manila Bay Sunset,” Banyan Tree Manila Bay Technical Director Anthony James added.

With luxury units offering panoramic views of the bay and the city’s skyline, Banyan Tree Manila Bay will also feature sustainable high-end finishes as well as modern and luxurious amenities such as 24-hour concierge services, a rooftop garden with stunning views, infinity pools, and water features, state-of-the-art fitness center, and children’s play areas, among others.

True to the Banyan Tree’s brand, the residence will be constructed using where possible Indigenous local-purchased materials along with energy-efficient designs. Mr. James noted that most of the materials used in the development will be locally sourced to help other Filipino brands.

“Everything we do inside the units to the comfort rooms will be brought in such a way that everything is bought in the Philippines and supports the Philippines. Even the doors will be made with patterns on them by local artists. Within the corridor spaces, for example, we would make sure that there are designs and artwork designed by local artists.”

Mr. James also noted that the residence exhibits eco-friendly features such as high-efficiency air-conditioning, wastewater recycling, rainwater harvesting, greenery planted inside the development, environmentally friendly cleaning materials, energy-efficient lights, and many more sustainable practices.

He hopes that these initiatives will allow Banyan Tree Manila Bay to attain a platinum certification from the Banyan Tree’s Manila Bay partner for sustainable design certification, EarthCheck, which adopts the most relevant and rigorous global framework for benchmarking and certifying sustainable operations.

Future owners of residential units in the development will also experience Banyan Tree’s renowned hospitality and service, diverse dining options including signature Banyan Tree restaurants, and the Philippines’ first Banyan Tree Spa and Gallery.

Ownership at Banyan Tree Manila Bay will also come with exclusive benefits and privileges through the Sanctuary Club which includes streamlined access to a global network of Banyan Tree resorts and spas.

“We realized that providing the City Hotel is for those who enjoy staying and enjoy the comfort of the Banyan Tree brand… but you can actually own a residence. So that attraction is certainly something that is expanding around the world with regards to Banyan Tree. Their residential developments are increasing, and that combination is a big positive factor with regards to residents and those wanting to enjoy the brand around the world,” Mr. Taylor said.

Banyan Tree Manila Bay is also expected to have commercial units for its residents’ convenience. Like other high-end mixed-use developments in the country, the residence will have upscale retail spaces featuring premium brands and lifestyle concepts, along with spaces for dining, entertainment, supermarkets, and other services. With its meeting rooms and ballroom, the residence will also have Meetings, Incentives, Conferences, and Exhibitions features in their hotel segment.

The Banyan Tree Manila Bay will offer a wide range of unit sizes suitable for a Filipino family’s needs, from two- and three-bedroom units ranging from 140 to 260 square meters (sq.m.) to spacious penthouses with a size of around 900 sq.m.

“We are very confident with regards to [completing] the project. With regards to other developers here at the moment, they are moving towards the higher end of the residential spectrum. With that, we are confident that with the Banyan Tree brand, we can deliver something more,” Mr. Taylor said.

Bedroom living and dining area suite phase 1

Given its status being a prestigious brand with a global chain of luxurious hotels and resorts, Banyan Tree Manila Bay offers an exceptional investment opportunity, promising strong potential for capital appreciation and rental income with the safety and stability associated with one of the world’s most renowned hospitality brands.

Banyan Tree Manila Bay has even partnered with luxury residential and commercial brokerage firm Nest Seekers International to market its brand’s residential towers to a wider international network. Nest Seekers International’s Chief Marketing Officer and Regional Director — Asia Andy Regalado expressed his excitement to work with the residence, in a press release for the grand launch of the property.

“As Manila has become the hottest market globally for prime residential properties, it’s high time that a project like this rises in the city. Not only will it satisfy our clients’ demand for true luxury, such a project will also pave the way for more branded luxury properties to invest in the Philippines, making for a more vibrant luxury real estate market,” Mr. Regalado shared.

Concerning their next ventures in the Philippines, Mr. James said that their focus, for now, is to finish the Banyan Tree Manila Bay. However, he also said that there are already discussions with different parties regarding potential future projects.

The luxury hospitality brand’s debut venture in the country figures to be one of the premier luxury real estate developments in the Philippines. With its commitment to local craftsmanship and eco-friendly practices, the residence promises to be a model of responsible development that supports local communities and ecosystems while still offering world-class features and amenities.

As the project continues its development, Banyan Tree Manila Bay is set to symbolize a compelling investment opportunity bolstered by the prestige and global recognition of the Banyan Tree brand.

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Navigating global financial challenges and opportunities

June 28, 2024 | 12:08 am

tech-daily-ztYmIQecyH4-unsplash-OL — Photo from Unsplash / Tech Daily

Globalization has facilitated the flow of capital across borders, allowing companies and governments to access funding from diverse sources. This has fueled economic growth and development in many regions, but it has also exposed financial markets to contagion risks. For instance, the 2008 financial crisis demonstrated the rapid transmission of market stress and the interconnectedness of global financial institutions.

Moreover, the continuous globalization of financial markets has led to the integration of different economies, resulting in complex interdependencies. Changes in monetary policy by major central banks can have far-reaching effects on currencies, interest rates, and asset prices worldwide.

The International Monetary Fund (IMF) has projected that the world economy will grow at no more than 3% in 2024. The Organization for Economic Co-operation and Development (OECD), meanwhile, stated that the projected global gross domestic product (GDP) growth is weaker than what was seen in the decade before the global financial crisis, but it is close to the currently estimated potential growth rates in both advanced and emerging market economies.

This slower growth compared to the pre-global financial crisis era highlights the long-term impacts of recent disruptions, such as the COVID-19 pandemic. According to the IMF, geopolitical tensions are also taking a toll, contributing to financial fragmentation, disruptions in cross-border payments, and more limited opportunities for international risk diversification.

Advanced economies are also dealing with slower productivity gains and demographic shifts, while emerging markets are facing challenges like capital outflows and commodity price volatility.

The IMF also projects that global inflation will decrease to 5.2% in 2024 from its peak of 8.7% in 2022. They also expect that inflation will likely remain higher than targeted rates in nearly all countries, indicating an ongoing struggle to control rising prices across the board.

Factors contributing to this scenario include supply chain disruptions, tight labor markets, and fluctuating energy prices. Central banks are likely to maintain a cautious stance, aiming to balance the need for economic support with efforts to curb inflationary pressures.

On the other hand, the increase in interest rates has been particularly beneficial for the banking sector. Recent bank earnings indicate that banks’ net interest margins (NIMs) may have already reached their highest point, with US and European banks expected to see a decrease in net interest margins in 2024. In contrast, Asia-Pacific (APAC) banks are likely to experience stronger net interest income, especially in the face of higher and potentially increasing interest rates in many developing countries.

In addition, digital transformation is reshaping the banking sector, driven by consumer demand for convenience and technological innovation. The global digital banking market size was valued at $803.8 billion in 2018, and is expected to reach $1,610 billion by 2027, at a compound annual growth rate (CAGR) of 8.9% during the forecast period.

The rise of fintech firms and the increasing integration of artificial intelligence (AI) and machine learning in banking operations are reshaping customer experiences and operational efficiencies.

One of the most significant trends is the rapid adoption of generative AI, which is expected to transform nearly every aspect of banking and financial services. IBM also stated that generative AI is expected to be the most influential trend that will penetrate the entire financial services sector this year. However, successfully implementing AI will require banks to not only leverage cloud and data capabilities, but also rethink their workforce and talent strategies.

Cybersecurity and fraud mitigation also remain top priorities in the global finance industry. Solutions such as AI-driven predictive analytics and real-time monitoring systems, according to IBM, are expected to be used as tools in identifying and mitigating risks before they escalate into full-blown crises.

Also, sustainable finance is emerging to promote sustainable economic development, mitigate climate change risks, and address social inequalities. According to the Global Sustainable Investment Alliance (GSIA), global sustainable investment assets reached $35.3 trillion in 2020, representing a 15% increase from 2018.

As a result, major financial institutions are increasingly incorporating sustainability into their core strategies. For instance, banks are not only financing renewable energy projects but also implementing policies to reduce their own carbon footprints. Investment firms are also launching environmental, social, and governance (ESG)-focused funds that screen investments based on sustainability criteria. — Mhicole A. Moral

Zhangjiajie: A land of other-worldly terrain

June 28, 2024 | 12:08 am

Tianmen Cave — TIANMEN CAVE, which is also called the ‘Gateway to Heaven.’ — JUSTINE IRISH DP TABILE

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By Justine Irish D. Tabile, Reporter

IN THE northwestern part of Hunan Province in China, there is a city known for its natural landscapes — tall sandstone pillars and mountains and deep canyons, all surrounded by greenery.

The city, Zhangjiajie, is home to the first national forest park in China which also happens to be a United Nations Educational, Scientific, and Cultural Organization (UNESCO) World Heritage Site.

The Zhangjiajie National Forest Park, part of the Wulingyuan Scenic Area, is home to over 3,000 quartzite sandstone pillars with heights that can reach over 200 meters, according to multinational travel service provider Trip.com.

These pillars, whose features resulted from years of erosion and weathering, were the inspiration behind the other-worldly floating mountains of James Cameron’s science-fiction movie Avatar.

In fact, one of the sandstone pillars had been named Avatar Hallelujah Mountain in honor of the film. This is the name of the floating mountains in the movie.

Aside from the pillars, the park is also known for its 7.5-kilometer Golden Whip Stream, where the protected Chinese giant salamanders make their home. The stream, which boasts crystal-clear water, is named after one of Zhangjiajie’s 10 Wonders, the 350-meter-high Golden Whip Rock.

A VIEW FROM ABOVE THE CLOUDS
But if a visitor goes to the park on a rainy day, as this writer did, they might have a hard time seeing the tall pillars from the ground as most of them will be covered by fog. Which emphasizes the importance of Huangshi Village, the largest natural viewing deck of the Zhangjiajie National Forest Park.

With an elevation of over 1,000 meters, Huangshi Village, also known as Yellow Stone Village, is where visitors can have a scenic view of the park even as it is enveloped in seas of clouds and mist.

Aside from the view, visitors will also be welcomed by wild animals, including wild monkeys, sometimes with their babies, who just hang around the area.

Once visitors arrive at the top through a cable car, they can walk along the loop road to appreciate the scenic view. There are two routes that visitors can take: the small loop, which will take around 50 minutes to traverse, and the large loop, which takes around two hours.

CABLE CARS AND ESCALATORS
Zhangjiajie is not only known for its “floating mountains” but also for its highest mountain — Tianmen Mountain.

Located south of the city, the mountain has an elevation of around 1,500 meters. To get to its top, tourists have to ride one of the world’s longest cableways, the Tianmen Shan Cable Car, which is over seven kilometers long.

From the cable car, passengers can see the 99 bends of Tongtian Avenue and Zhangjiajie’s second national forest.

Visitors who have a problem with heights can opt to get to the top of the mountain through a shorter cable car trip, and by taking tunnel escalators to the mountaintop.

The Tianmen Mountain Escalators are among the world’s longest mountain escalators. Divided into 12 segments, they start at the foot of the mountain and end at the mountaintop.

AIRPLANES AND SKYWALKS
One of the highlights of a visit to the mountain is seeing its natural karst arch called the Tianmen Cave, or “Gateway to Heaven.” It is a natural archway located at the top of a 999-step stairway.

The cave’s opening is among the highest natural arches in the world and garnered global attention when an aerobatic pilot, Peter Besenyei, flew through in 1999, the first pilot to fly an airplane through a natural cave.

Today the cave is known for wingsuit flying and is the site of a wingsuit performance competition.

Tianmen Mountain also has several glass skywalks built along the cliffside: the Eastern and Western Lines of the Tianmen Mountain Glass Skywalk, and the Coiled Dragon Cliff Glass Skywalk which is the longest of the three. The 100-meter glass bridge hugging the mountain is just 1.6 meters wide.

Looking down at the bottom of the bridge, one will be able to see the 99-Bend Road, but taking pictures in the area is a bit hard during peak hours as guides usher the guests to walk faster.

With its height, Tianmen Mountain is also where locals pray to deities and tie ribbons around the tree branches as offerings.

Between the otherworldly floating mountains and the majestic Tianmen, one can feel very close to Heaven when visiting Zhangjiajie.

Disney Cruise Line to launch first ship from Asia in 2025

June 28, 2024 | 12:07 am

AFTER two years of working on a cruise ship designed specifically for the Asian market, the Disney Cruise Line (DCL) is set to debut the Disney Adventure in 2025, with Singapore as its home port.

It will mark the first family holiday cruise destination that is entirely Disney-themed, with some Pixar and Marvel stories incorporated in the ship.

“Consumers in this region have shown such strong affinity for Disney, and we are thrilled to bring an unparalleled Disney Cruise Line vacation to their backyard,” Sarah Fox, DCL Vice-President and Regional General Manager for Asia, said in a virtual press conference on June 26.

Personalized touches unique to Asia include “global cuisines and retail offerings carrying a distinct local flavor.”

“There will be a vast array of food, from fast casual to family-friendly to gourmet dining, including vegetarian and halal options,” Ms. Fox said.

The cruise ship will be designed for three-night and four-night voyages, filled with immersive storytelling and entertainment.

SEVEN AREAS
There are seven uniquely themed areas in total aboard the Disney Adventure, a first for all of DCL’s ships. They are:

The Disney Imagination Garden, an enchanted valley, garden, open-air performance venue, and gateway to the rest of the ship that channels sorcerer Mickey, Moana on the high seas, and Mowgli in the jungle.

The Disney Discovery Reef, where families can shop and dine in an underwater retreat that evokes Disney and Pixar aquatic stories like The Little Mermaid, Lilo & Stitch, Finding Nemo, and Luca.

San Fransokyo Street, inspired by Big Hero 6, a family entertainment area and vibrant street market with an assortment of interactive games and activities, shops, and cinemas.

Wayfinder Bay, a Pacific Islands-inspired open-air oasis under the sun based on Moana, with exclusive entertainment paired with views of the sea and sky.

Town Square, a celebration of Disney princesses filled with shops, lounges, cafes, restaurants, and entertainment venues. It will have nods to Tangled, Cinderella, Frozen, Snow White and the Seven Dwarfs, The Princess and the Frog, and more.

The Marvel Landing where larger-than-life Avengers offer all-new attractions and experiences that showcase imaginative representations of superhero adventures.

Toy Story Place, a whimsical and interactive playland with themed food venues and water play areas, where the world of Pixar’s Toy Story comes to life.

“Every design detail of the venue takes its cues directly from our films. Imagine a ship laid out like a treasure map with incredible stories that come to life for you as you explore, each chosen because they resonate strongly in this region,” said Laura Cabo, Walt Disney Imagineering’s portfolio executive creative director, at the press conference.

“It’s a layering of entertainment, experiential design, and cutting-edge technology that our team has worked hard on for over two years.”

The Disney Adventure is good for families, with dedicated spaces and clubs for children and lounge and spa experiences for adults. There will be character encounters, stage shows, films, karaoke, and game shows. The ship also features spacious staterooms and concierge accommodations.

The ship will sail from the Marina Bay Cruise Centre for at least five years, in partnership with the Singapore Tourism Board. Its estimated capacity is approximately 6,700 passengers, with around 2,500 crew members.

More details about the maiden voyage and onboard experiences will be announced later through this page: https://disneycruise.ph/adventure. — Brontë H. Lacsamana

Ayala Corp. board OKs up to P15-B preferred shares offering

June 28, 2024 | 12:07 am

AYALA Corp. has received board approval to issue up to P15 billion worth of peso-denominated preferred shares, aimed at supporting its capital raising efforts, the listed company announced on Thursday.

The proposed offering includes a base amount of P10 billion with an option to oversubscribe for an additional P5 billion, pending regulatory approvals, Ayala Corp. said in a disclosure to the stock exchange.

The conglomerate did not disclose detailed terms of the issuance.

“Appropriate disclosures shall be made once the terms have been finalized,” it said.

The conglomerate has allocated P284 billion for its capital expenditure (capex) budget this year, marking a 14% increase from the previous year.

The capex budget focuses on expanding the operations of its energy arm ACEN Corp. and property unit Ayala Land, Inc.

In May, Ayala Corp. sold its remaining stake in east zone concessionaire Manila Water Co. to Razon-owned Trident Water Co. Holdings, Inc. for $252 million. The deal is part of the conglomerate’s divestment plan to raise P50 billion, which will be used for financing future investments and reducing debt.

For the first quarter, Ayala Corp. saw a 28% jump in its attributable net income to P13.07 billion while consolidated revenue increased by 10.5% to P87.27 billion. The conglomerate said the growth came from its banking and property segments.

Ayala Corp. shares climbed by 1.38% or P8, closing at P588 per share on Thursday. — Revin Mikhael D. Ochave

Culinary family drama The Bear serves up 3^rd season

June 28, 2024 | 12:06 am

Emmy-winning series premieres on Disney+

IN THE world of fine dining, chefs and restaurateurs must push themselves hard and work out every single detail to elevate their establishments to the highest level. Maintaining this high level is another problem.

The first two seasons of TV show The Bear saw the intensely driven Carmen “Carmy” Berzatto (played by Jeremy Allen White) working with his ragtag crew to transform the family-run beef stand The Beef into the fine dining restaurant The Bear — but now they must navigate the struggles of actually running it.

At his side are his talented sous chef and business partner Sydney Adamu (played by Ayo Edebiri) and his stubborn cousin-turned-maître d’, Richard “Richie” Jerimovich (Ebon Moss-Bachrach). Season Three of The Bear follows their battle keeping their Chicago restaurant afloat in their quest for culinary excellence, all while working through feelings of grief and family trauma.

The first season garnered the show an Emmy for Outstanding Comedy Series while Mr. White, Ms. Edebiri, and Mr. Moss-Bachrach earned acting Emmys for their roles. Following the acclaim of its second season, The Bear season three premiered on June 27 on Disney+, with 10 episodes in total.

The half-hour series also stars Abby Elliott, Lionel Boyce, Liza Colón-Zayas, and Matty Matheson, with Jon Bernthal playing Michael “Mikey” Berzatto, Carmy’s older brother who killed himself before the events of the show.

While the story of The Bear is fictional, it is inspired by real-life stories of restaurants and chefs with a passion for the cutthroat culinary industry, particularly in Chicago, according to executive producer Matty Matheson, who also plays the minor role of Neil Fak.

“More little tidbits are gonna come out. Chris [Storer, the showrunner] loves Chicago very much and the rest of us have all fallen in love with it dearly,” Mr. Matheson said at a press conference on June 25 that was livestreamed from the United States.

The Beef was inspired by an actual Italian beef restaurant in River North called Mr. Beef, founded by Joe Zucchero in 1979. The sibling duo at the helm of The Bear — creator Christopher Storer and culinary producer Courtney Storer — encourage the cast and crew to immerse themselves in Chicago’s food scene.

On portraying an intensely focused head chef, Jeremy Allen White said that the effect is having a newfound “hypersensitivity to how restaurants work.”

“Carmy continues to do what he does best, which is be incredibly avoidant of all the issues he has going on. We’ll see more of that this season. He sort of buries himself in his work and tries to challenge himself; in doing so, it really makes him become challenging to be around,” he said.

For Ayo Edebiri, whose character is the only newcomer to the restaurant after the death of Mickey Berzatto who used to handle it, the inherent darkness in the show makes the comedy more poignant.

“Grief touches them all in different ways. It’s one of the connecting threads of the show, how people deal with it throughout the seasons. This show is dark, but it has really beautiful and light moments too, and you get to take that with you,” she said.

Both Mr. White and Ms. Edebiri were asked if their characters would develop a romance in addition to being business partners, to which they responded with a resounding no.

The latter explained: “Sydney really looks up to Carmy but is in the thick of being in a business with him, something she now realizes she idealized before they started working together.”

Ebon Moss-Bachrach, whose character grew from the impulsive loser cousin to the eager maître d’ over the course of the first two seasons, said that all the characters’ growth is “forward and back; not a clear, one-direction path.”

“I think Richie is in a place where he’s been exposed to a more evolved way of being, and he sees a path to head towards. But it’s one thing to see a path and another thing to walk it,” he explained.

“Grief is the river that runs through all of us and it’s one of the common things we share in the human experience. Everyone deals with it in their own way.”

Meanwhile, Mr. Matheson said that those who watch The Bear to see how they depict delicious, potential Michelin-starred dishes onscreen will not be disappointed.

“Courtney [Storer] handles a lot of menu development and ideation of what Carmy and Syd would be thinking, how the food they make can reflect who they are. An entire team of chefs bring that to life. We’re just trying to make thoughtful food and push the envelope,” he said.

The Bear was created by Christopher Storer, who acts as executive producer alongside Josh Senior, Joanna Calo, Cooper Wehde, Tyson Bidner, Matty Matheson, and Hiro Murai. Courtney Storer serves as a co-executive producer and culinary producer. The series is produced by FX Productions.

Its third season is out now on Disney+. — Brontë H. Lacsamana