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Millions without power as cyclone Remal pounds Bangladesh and India

STOCK PHOTO | Image by StockSnap from Pixabay

 – Strong winds and heavy rain pounded the coastal regions of Bangladesh and India as severe cyclone Remal made landfall late on Sunday, leaving millions without electricity after power poles fell and some trees were uprooted by gusty winds.

The storm crossed the coastal regions of Bangladesh’s Mongla port and the adjoining Sagar Islands in India’s West Bengal state with wind speed measuring up to 135 kmph (about 84 mph), the India Meteorological Department (IMD) said.

The storm will gradually weaken into a cyclone during the morning on Monday and then move northeast and gradually weaken further, the IMD said in its latest weather update.

The landfall process began around 9 pm local time in India on Sunday and continued for about five hours, the regional meteorological office in Kolkata said.

One person was killed in the major metropolitan city of Kolkata when concrete chunks fell on him during the peak of the storm, police said. Roofs of thatched huts were blown away while mud houses were flattened in the coastal areas of both countries as authorities waited to ascertain the full scale of losses.

The low-lying coasts of South Asian neighbors Bangladesh and India have experienced frequent severe storms in recent years as climate change forces a rise in sea surface temperatures. Remal is the year’s first cyclone in the region.

Bangladesh moved about 800,000 people from the port areas of Mongla and Chittagong and nine coastal districts to storm shelters from Sunday morning. As many as 110,000 people were also taken to shelters in India.

Dhaka set up nearly 8,000 cyclone shelters and mobilized 78,000 volunteers ahead of the storm while the Indian navy said it had kept ships, aircraft, divers and medical supplies on standby for deployment if required.

While early warnings and timely evacuations helped both countries avert major casualties from the storm, there was a heavy toll on power infrastructure.

Authorities in Bangladesh shut down electricity supply to many areas in advance to avoid accidents while many coastal towns were left in the dark as fallen trees and broken lines disrupted supply, power ministry officials said.

“We have no electricity since night, my mobile battery will run out anytime. By the grace of Allah, the cyclone was not as violent as we thought,” said Rahat Raja, a resident in the coastal district of Satkhira in Bangladesh.

Reports of at least 356 uprooted electricity poles and damage to scores of transformers were received during the first hour of the landfall process, Arup Biswas, the minister for power in West Bengal government, said.

More than 50 international and domestic flights had to be cancelled in Kolkata city as operations were suspended from Sunday noon. Bangladesh also suspended operations at Mongla and Chittagong ports.

“Normal airport operations will resume from 9 am,” said C Pattavi, the director of the Kolkata airport, adding that the airport’s operational areas were clear from waterlogging.

River embankments in the Sundarbans delta, the largest mangrove forest in the world, shared by India and Bangladesh, also suffered heavy damage with high tides breaching protective embankments at many places.

Kolkata, like the state’s coastal belt, was also lashed by heavy rains with water logging in many areas, television footage showed. At least six trees were uprooted, which blocked roads, while there were also reports of wall collapses, police said.

The cyclone also brought heavy rains to Bangladesh capital Dhaka, causing flooding of roads and severely impacting commuters. – Reuters

North Korea plans to launch satellite between May 27 and June 4, Japan Coast Guard says

MICHA BRANDLI-UNSPLASH

 – North Korea has notified Japan it planned to launch a rocket carrying a satellite toward the Yellow Sea and east of Luzon Island between May 27 and June 4, the Japan Coast Guard said on Monday.

The South Korean government said later that the North had issued a notice of a military reconnaissance satellite launch. If successful, it would be Pyongyang’s second spy satellite in orbit.

The notice comes ahead of a trilateral summit meeting between Japan, South Korea and China scheduled for Monday.

Officials from the United States, Japan, and South Korea held phone talks in response to the notice and shared a view that a North Korean satellite launch using ballistic missile technology would violate U.N. resolutions, Japan’s Foreign Ministry said.

The officials agreed to demand that North Korea cancel the planned launch, the ministry said in an email.

The South Korean government said the North should call off the launch, noting that it would violate U.N. Security Council resolutions and pose a grave threat to regional security.

Its military said separately that the “so-called military reconnaissance satellite launch” would be a provocative act.

“Our military will be taking measures that show our strong capabilities and will,” Joint Chiefs of State spokesman Lee Sung-jun said at a news briefing, without elaborating.

North Korea launched its first military spy satellite in November, putting it in orbit after two earlier failed attempts in 2023.

The country claimed the satellite had taken surveillance photographs of the US White House, the Pentagon and South Korean military installations, but it has not published any pictures.

North Korea has vowed to launch three more spy satellites this year.

The successful launch in November came after the leaders of North Korea and Russia met at a space launch facility in the Russian Far East, where President Vladimir Putin said Moscow would help Pyongyang build satellites. – Reuters

What investors expect from India’s election outcome

STOCK PHOTO | Image by jorono from Pixabay

 – India’s six-week long national election, the world’s largest, has entered its final stage with votes scheduled to be counted on June 4, and investors are gearing up for Prime Minister Narendra Modi’s widely expected third term in office.

However, the margin of victory may be smaller than earlier expected, analysts and informal betting markets are speculating.

Here are the main themes and comments from over 10 fund managers Reuters spoke to on their expectations based on different scenarios.

 

HOW WILL MARKETS REACT?

Indian equities outperformed most major markets in 2023 and are trading at expensive valuations. Yet, they could see a short term boost if the Modi administration comes back to power in a rare third consecutive term for any Indian government, fund managers said, as it would suggest policy continuity and political stability.

The benchmark BSE Sensex Index is up 4% so far this year, with a Reuters poll of equity analysts indicating the index could double the gains by the end of the year.

Foreign investors poured in a net $20.74 billion into Indian equities last year, the most in emerging markets in Asia, but have pulled back this year ahead of the election.

A lower margin of victory for Modi could lead to short-term volatility, fund managers said, while a win for the opposition could lead to a sharper correction due to policy uncertainty.

“The market is looking at continuity, so a coalition government or another party winning is not the expectation,” said Mittul Kalawadia, senior equity fund manager at Mumbai-based ICICI Prudential Mutual Fund.

“There can be a knee-jerk reaction if the last scenario builds up,” Mr. Kalawadia said.

 

POLICY CONTINUITY

A third term for a Modi-led government will allow for continuity of policies, including improved fiscal management and keeping the currency stable.

“In the last couple of years, India had a good amount of stability in terms of the current account gap and fiscal discipline, and inflation has been in check,” said Ashish Gupta, chief investment officer at Mumbai-based Axis Mutual Fund, who expects the focus on macroeconomic stability to continue.

“This has led to, both on debt as well as equity side, India’s risk premium coming down,” Mr. Gupta said.

Investors also expect the Modi government to continue focusing on turning the country into a manufacturing hub.

Modi’s government has courted foreign companies, including Apple and Tesla, to set up in India as they diversify their supply chains beyond China.

A clear electoral mandate and a government perceived as pro-business and investor-friendly will likely attract foreign investment inflows, said Vivek Bhutoria, co-portfolio manager at Federated Hermes’ global emerging markets equity fund, based in London.

 

TAX STABILITY

The election campaign has seen India’s largest opposition party, the Congress, hint at policies aimed at addressing income inequalities in India but investors remain wary of such moves.

“We would like the BJP to stay away (from) over-reliance on welfare schemes,” said Gary Tan, portfolio manager at Allspring Global investments in Singapore.

Overdependence on such schemes can stress public finances and disrupt India’s macro stability narrative, Tan said.

Local media reports have also suggested the government may consider changes in capital gains tax, which the current administration has denied.

Nilesh Shah, chief executive officer of Kotak Mahindra Asset Management, does not expect the government to go down that route and instead introduce policies to deepen capital markets.

 

SECTORS IN FOCUS

With the current government focused on spending on infrastructure and pushing manufacturing, fund managers are leaning towards sectors that benefit from these policies.

Power, autos and infrastructure are some of the sectors that investors are positive on.

“We are constructive on beneficiaries from India’s focus on manufacturing such as capital goods firms, automotives and metals,” said Sanjay Bembalkar, co-head of equities at Mumbai- based Union Asset Management Company. – Reuters

China’s premier hails ‘new beginning’ with US-allied South Korea, Japan

FREEPIK

 – Chinese Premier Li Qiang praised what he called a restart in relations with Japan and South Korea as he met their leaders for the first three-way talks in four years on Monday in Seoul, striving to revive trade and security dialogues hampered by global tensions.

Mr. Li, South Korean President Yoon Suk Yeol, and Japanese Prime Minister Fumio Kishida will adopt a joint statement on six areas including the economy and trade, science and technology, people-to-people exchanges and health and the aging population, Seoul officials said.

They may also agree to resume three-party free trade agreement negotiations, which have been stalled since 2019, according to Japanese media reports.

At the summit, Mr. Li called for the comprehensive resumption of trilateral cooperation with an open attitude and transparent measures, China’s official Xinhua news agency reported.

He said relations between the three nations had not changed despite profound global transformations.

“Our meeting today, first in more than four years, is both a restart and a new beginning,” Mr. Li said, according to a post on X by China’s foreign ministry.

China and US-allied South Korea and Japan are trying to manage rising distrust amid the rivalry between Beijing and Washington and tensions over democratically ruled Taiwan, which China claims as its own.

Mr. Yoon and Mr. Kishida have charted a closer course with each other and to Washington, embarking on unprecedented three-way cooperation with the United States on military and other measures.

Monday’s summit comes a day after the leaders met separately for bilateral talks with each other.

In those meetings, Mr. Li and Mr. Yoon agreed to a diplomatic and security dialogue and resume free trade talks, while Kishida and the Chinese premier discussed Taiwan and agreed to hold a new round of bilateral high-level economic dialogue.

Mr. Yoon also asked China to play a constructive role with its partners in North Korea, which is expanding its nuclear weapons and missile arsenal in defiance of United Nations Security Council resolutions.

North Korea has notified Japan of its plan to launch a rocket carrying a space satellite between May 27 and June 4, the Japan Coast Guard said on Monday.

Officials from the United States, Japan, and South Korea held phone talks in response to the notice and demanded that North Korea cancel the launch because it would use ballistic missile technology in violation of the U.N. resolutions, Japan’s Foreign Ministry said.

 

TRADE RELATIONS

The trade relationship between China, South Korea and Japan has evolved over the past decade to become increasingly competitive.

Those ties have been further tested by US calls for its allies to shift their supply chains for key products, such as semiconductors, away from China.

Officials and diplomats from South Korea and Japan have set a low bar for the summit, saying it is uncertain whether there will be major announcements but that just gathering will help the three countries revive and reinvigorate their strained relations.

The three leaders are also due to attend a forum with top business executives.

South Korea, Japan and China held 16 rounds of official negotiations over a three-way FTA after they first kicked off in 2012.

At their last negotiation in November 2019, the three countries agreed on liberalization at a level higher than the Regional Comprehensive Economic partnership (RCEP), of which they are all members, encompassing areas from trade of goods and services to investment, customs, competition and e-commerce. – Reuters

CDO Funtastyk celebrates special day for moms

CDO Funtastyk showered mothers with love and pampering at the Funtastyk Mom’s Day event on May 19, 2024 in Quezon City. The event was a delightful escape for moms, offering relaxation, delicious food and a chance to connect with each other.

Moms were treated to a pampering session that included nail art, hairstyling, makeup and rejuvenating foot massages.

This was followed by a mouthwatering brunch featuring everyone’s favorite CDO tocilog and other delectable treats. Laughter filled the air as moms and their children bonded over shared activities and formed new friendships.

CDO Marketing Manager Ice Galangan kicked off the event with a heartwarming message: “Today, we celebrate all of you, moms! You’re the incredible superheroes who make life delicious and bright. Being a mom is no easy feat, so we commend you and everything you do.”

Mom Ambassador

Dimples Romana, mom ambassador of CDO Funtastyk, together with her son Alonzo

Celebrity mom Dimples Romana, together with her son Alonzo, graced the event as mom ambassador of CDO Funtastyk. Dimples spoke about the importance of creating cherished family mealtime traditions with CDO products.

“Memories are built on experiences,” she said. “Having a simple and affordable CDO product on your table becomes a reminder of those special moments shared with loved ones.”

The event transcended a simple brunch, fostering a sense of community among moms. It provided a platform for them to connect, share experiences and learn from each other.

Dimples offered valuable insights on motherhood, resonating with the audience through anecdotes and advice. The highlight for many was the opportunity to chat, take photos and receive personalized tips from Dimples herself.

Attendees received special gift bags to share with their families.

Fun Experience

“Always remember to find strength and beauty within yourselves,” Romana said in her closing remarks. “You are worthy, loved, and valued, even when you don’t hear it. Thank you for joining us, and I hope the CDO family provided everything you needed today.”

The Funtastyk Mom’s Day event with Dimples Romana was a resounding success. It showcased CDO Funtastyk’s dedication to families and creating joyful experiences.

Filled with fun, informative sessions, and pampering moments, the event left attendees feeling relaxed, appreciated and with a renewed sense of joy for motherhood.

 


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ABS-CBN Corp. to conduct 2024 Annual Stockholders’ Meeting on June 20

 


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Gross borrowings drop 31% in April

BW FILE PHOTO

THE National Government’s (NG) gross borrowings fell in April as domestic and external debt declined, data from the Bureau of the Treasury (BTr) showed.

BTr data showed that the NG’s total gross borrowings dropped 31.3% to P89.202 billion in April from P129.906 billion in the same month a year ago.

Month on month, gross borrowings slumped by 57% from P207.265 billion in March.

Domestic borrowings accounted for the bulk or 92% of overall gross debt during the month.

Gross domestic debt dropped by 14.3% to P82.36 billion in April from P96.127 billion in the same month in 2023.

Broken down, domestic borrowings were composed of P67.258 billion in fixed-rate Treasury bonds and P15.102 billion in Treasury bills.

Meanwhile, gross external debt plunged by 79.7% to P6.842 billion during the month from P33.779 billion a year ago.

In April, gross external borrowings were entirely composed of new project loans.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the boost in tax collections in April offset the need for the government to resort to borrowings.

The Bureau of Internal Revenue collections rose by 12.65% to P378.5 billion during the month. This as the deadline for the filing of annual income tax returns and first-quarter value-added tax returns was in April.

“Relatively lower amount of matured National Government debt in April also reduced the need to borrow to fund maturing debt,” Mr. Ricafort added.

Meanwhile, in the January-April period, gross borrowings rose by 7.9% to P1.16 trillion from P1.08 trillion in the year-ago period.

Gross domestic borrowings jumped by 38.7% to P1.04 trillion in the first four months from P749.113 billion a year earlier.

Domestic debt consisted of P584.861 billion in retail Treasury bonds (RTBs), P377.258 billion in fixed-rate Treasury bonds and P76.822 billion in Treasury bills.

In February, the government raised a record P584.86 billion from its offering of five-year RTBs.

On the other hand, gross external debt plummeted by 62.3% to P124.099 billion as of end-April from P328.883 billion a year ago.

This was made up of P95.435 billion in program loans and P28.664 billion in new project loans.

“Future government borrowings would also be a function of the budget deficit performance for the coming months,” Mr. Ricafort said.

The NG posted a P42.7-billion budget surplus in April, though this was 36.03% smaller than the P66.8-billion surplus a year ago.

In the January-April period, the budget deficit widened by 12.66% to P229.9 billion from the P204.1-billion gap a year earlier.

“Government borrowings for the coming months would also be timed with possible Fed and local policy rate cuts later in 2024 and 2025,” Mr. Ricafort said.

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. has signaled that the central bank could begin its policy easing cycle as early as August this year.

The Monetary Board kept its benchmark rate at a 17-year high 6.5% for a fifth straight meeting earlier this month.

The central bank has raised borrowing costs to a cumulative 450 basis points (bps) from May 2022 to October 2023.

The government’s borrowing program is set at P2.57 trillion for 2024, of which 75% will come from domestic sources.

The government borrows from local and external sources to help fund a budget deficit capped at 5.6% of the gross domestic product this year, equivalent to P1.48 trillion. Luisa Maria Jacinta C. Jocson

‘High incidence’ of money laundering seen in gaming

A woman holds a Philippine flag at a store in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES is likely to exit the “gray list” of the Financial Action Task Force (FATF) soon despite a “high incidence” of money laundering, mainly in the gaming sector, Moody’s said.

Choon Hong Chua, Moody’s senior director and head of the Financial Crime Practice Group for Asia and the Pacific and the Middle East, said that the Philippines is “on track” to exit the gray list.

“It is clear the country is committed to strengthening anti-money laundering and counter financing of terrorism (AML/CFT) controls and has implemented more stringent requirements,” he told the BusinessWorld in an e-mail interview.

The Moody’s Grid database showed that from 2018 to 2023, the Philippines was among the top five countries in Southeast Asia with money laundering activity events added over the five-year period.

“From 2022 to 2023, the number of money laundering events added in the Philippines increased 45%,” it added.

Mr. Chua said that there has been a “high incidence” of money laundering events in the country related to gaming activities, citing online gambling, casinos and betting centers.

“Besides these activities, a large proportion of money laundering activity in the region is also linked to organized crime and complex scam operations, some of which are set up in the Philippines,” he added.

The Philippines has been on the FATF’s list of jurisdictions under increased monitoring for dirty money activities since June 2021.

The FATF Plenary, which is the organization’s decision-making body, usually meets in February, June and October.

“We have seen the current regime take an active step to improve the level of AML competency in the banking sector — from the implementation of new regulations to active communications with the covered entities. This stemmed from some of the weaknesses observed,” Mr. Chua said.

He noted the government’s ongoing initiatives to “implement stricter controls, reporting requirements, and enforce compliance within the financial sector.”

Early this year, President Ferdinand R. Marcos, Jr. ordered all concerned government agencies to hasten efforts to help the country exit the gray list as soon as possible.

The Anti-Money Laundering Council  also earlier said it is working to increase the investigations and prosecutions related to dirty money this year.

“The private sector also has a part to play by adhering to the requirements promptly to lift the Philippines out of the gray list. This requires a concerted effort and engagement from both the public and private stakeholders,” Mr. Chua said.

“The private sector will also need to invest to build capabilities that enable a shift towards a faster, more efficient, digitized system.”

Financial institutions and the overall private sector must “participate in anti-money laundering efforts.”

Mr. Chua also recommended measures to boost the private sector’s capacity to combat money laundering activities and strengthen third-party risk management capabilities to help institutions mitigate various risks.

Emerging technologies such as artificial intelligence (AI) and machine learning (ML) can also be used to strengthen financial crime detection and reporting, Mr. Chua said.

“AI and ML can enhance Know Your Customer (KYC) workflows when it comes to the screening, onboarding, and due diligence processes for compliance,” he said.

“KYC workflows can be enhanced with access to trusted internal and external datasets. Embedding an AI capability, such as a chat interface or copilot tool, within a client lifecycle management platform, can also help highlight critical information and provide more datapoints to make an informed decision.”

Mr. Chua said there must still be humans involved in the compliance teams to maximize the potential of these technologies and workflows as well as “ensure a fair, quality outcome.”

Mr. Chua said AI can be used in screening technologies to “reduce false positives in the name matching process.”

“True alerts can be prioritized to reduce time-to-decision when assessing risk,” he added.

‘Most exciting chapter’ for PHL yet to come — WEF

The Philippine economy is expected to be one of the fastest-growing economies in the region this year. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Beatriz Marie D. Cruz, Reporter

THE Philippines could become one of the drivers of global growth in the future, if the government continues to ease foreign ownership restrictions and ramp up partnerships with the private sector, according to a World Economic Forum (WEF) executive.

“We feel that the most exciting chapter of the country is yet to come. So, we remain very hopeful that there would be ongoing collaboration with both the government and private sector going forward,” Joo-ok Lee, head of the Regional Agenda, Asia-Pacific at the WEF, said on the sidelines of the BusinessWorld Economic Forum last week.

Mr. Lee said there is “robust” interest from the private sector and investors towards the Philippines.

“In the medium and longer term, we feel very optimistic that there’s a lot of opportunities for the country… There are many things that Philippines has going for, the economy, the demographic dividend, but also the regulatory kind of reforms and changes that we’re seeing,” he said.

“As long as the current trend continues, investments in key sectors and infrastructure as well as emphasizing the need for public-private collaboration, I think the Philippines will emerge as one of the stronger players in driving global growth.”

The Philippines is expected to be one of the fastest-growing economies in the region this year with the government targeting 6-7% gross domestic product growth.

The Philippines can become a $2-trillion (around P116-trillion) economy in the next decade, WEF President Børge Brende said in March.

However, geopolitical tensions like the trade war between the United States and China, as well as territorial dispute in the South China Sea, may pose threats to the outlook.

“The geopolitical tensions between superpowers, especially in the setting of the Philippines, poses some threats because you don’t want to be in a situation where you’re forced to take sides,” Mr. Lee said.

The Philippines must ensure a “strategic balance and ongoing constructive relationship” with the US and China, he added.

“It further emphasizes the need to remain resilient, to have an open economy that can adapt towards the changing environment,” he added.

Hansley A. Juliano, a political science professor at the Ateneo de Manila University, said the Philippines must strengthen its trade partnerships with other countries like Japan and Australia amid heightened tensions between the US and China.

“It would be good to increase their share in our balance of trade or potentially crowd out Chinese economic activity in the Philippines,” he said in a Facebook Messenger chat.

Meanwhile, WEF’s Mr. Lee also cited the need to ease economic restrictions in the 1987 Constitution to allow foreign ownership in more sectors.

“We understand that some of the regulations are there for a reason,” he said. “But purely looking at it from an outsider’s perspective, the easing of those regulations would be perceived as being more inviting for foreign investors to claim a stake and also be a partner rather than just a player.”

In March, the House of Representatives passed a proposal to lift foreign ownership limits in the 1987 Philippine Constitution.

The Senate has yet to continue deliberations on the proposed Charter change.

“The Constitutional amendments are necessary but are not sufficient. We still need to transition the current extractive institutions into efficient and inclusive ones,” Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said in a Facebook Messenger chat.

Government eyes sale of assets to GSIS, SSS

DOF.GOV.PH

THE FINANCE department is aiming to raise around P100 billion from the sale of government assets, mainly to the Government Service Insurance System (GSIS) and the Social Security System (SSS).

“We need to privatize a lot but we’re going to sell them most likely to GSIS. We’re offering them to GSIS and SSS so it’s government to government transactions,” Finance Undersecretary Catherine L. Fong told BusinessWorld on the sidelines of the Asia Pacific Loan Market Association Loan Market Conference on May 9.

The Department of Finance (DoF) is hoping to close a deal with GSIS before midyear to help reach the P100-million target.

Ms. Fong said the amount raised so far this year from sales and dividend income were “not substantial yet.”

“Well, there’s the NAIA (Ninoy Aquino International Airport) upfront payment which will be released. It’s currently in escrow, so it will be released around September,” she said.

A consortium led by San Miguel Corp. won the P170.6-billion project to rehabilitate the NAIA. The group paid P30 billion upfront when the contract was signed in March.

Ms. Fong said GSIS is “very liquid” and could maximize the value of the assets.

“I mean, we could bid the assets out. Some assets are very lucrative, but it takes time just to procure an appraisal. I’m sure the private sector will be interested… but since we’re kind of in a hurry, it will likely be sold to the GSIS,” she said.

Meanwhile, Ms. Fong said the Philippine Amusement and Gaming Corp. (PAGCOR) is still planning to sell its casinos.

“PAGCOR thinks that they need a charter amendment to allow them to sell the casinos. According to them, they’re still willing to sell it so I’ve already followed up with [PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco], but he says their charter is currently, I think, in Congress for PAGCOR’s extension of life,” she said.

The DoF’s Privatization and Management Office is working with PAGCOR on its plan to privatize the 45 casinos that it operates by 2025.

PAGCOR is transitioning to become a purely regulatory agency from its current dual role as a regulator and operator.

Finance Secretary Ralph G. Recto also said earlier this month the DoF was exploring ways to raise more revenue without imposing new taxes.

Mr. Recto said the DoF was looking to sell the government’s stake in the Subic-Clark-Tarlac Expressway to state pension funds to boost revenues.

“This is an innovative way to sell especially profitable assets of the government that would also benefit the pension funds, using surplus funds, while allowing the National Government to have one-time proceeds to help narrow the budget deficit and also reduce the need to borrow and curb the increment of the NG outstanding debt,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The government aims to borrow P2.57 trillion from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message that it would be more ideal to improve tax collection and efficiency as it would translate to higher recurring income.

“Selling government assets only results in one-time gains and will never occur again. So, if the government can efficiently use the asset and give substantial returns, (enough to cover cost and a little income return of 5-10%) that is good,” he said. — Aaron Michael C. Sy 

3 German firms considering PHL expansions, PEZA says

THE Philippine Economic Zone Authority (PEZA) said three German companies in the automotive, semiconductor, and pharmaceutical industries are planning to expand their Philippine operations.

In a statement Sunday, the investment promotion agency (IPA) said it found out about the expansion plans after business-to-business meetings on a visit to Germany this month.

PEZA did not disclose the names of the companies but added that one of the companies is already preparing to apply for registration with the IPA.

“We (will) announce the identities of these companies once they file their application with PEZA,” PEZA Director General Tereso O. Panga said.

One of the companies, PEZA said, makes automotive safety sensors in the Philippines.

“They mentioned their plans to expand their operations (and are currently testing) their new products,” PEZA said.

The second company is one of “the world’s largest manufacturers of discrete semiconductors and passive electric components” with automotive, industrial, computing, military, aerospace, and medical applications.

“(It) discussed with PEZA plans to expand its operations in the Philippines to cater to their new products,” the IPA said.

PEZA also met with a German company that makes pharmaceutical laboratory and medical equipment calibrating devices, which is now preparing its application with PEZA.

“PEZA was also able to secure a meeting with one of the world’s biggest pharmaceutical companies that is into life sciences, healthcare, and electronics and with one of the world’s leading car makers headquartered in Germany,” it added.

PEZA was in Germany for a week-long investment mission on May 13–17, during which it attended the IFAT Munich 2024 trade show.

“This event is important to PEZA as we are transforming our ecozones into smart and sustainable locations for investments,” Mr. Panga said.

Citing a report by Sumitomo Mitsui Banking Corp., PEZA said that German companies primarily consider demographics and the availability of supply chain networks when investing in the Philippines.

It added that German companies are also testing the waters on locating outside of China.

“Given this positive outlook for the Philippines, we remain aggressive in our efforts to promote the country as a smart high-tech manufacturing hub and as an enviable investment destination in Asia,” Mr. Panga said.

To date, PEZA houses 37 locator companies with German equity, which accounted for P30 billion in investment and 20,000 jobs. — Justine Irish D. Tabile

Megaworld allots initial P5B for 150-ha beachside golf estate

LISTED property developer Megaworld Corp. said it has earmarked an initial P5 billion to develop a Batangas beachside golf estate in the next ten years.

The company, through its subsidiary Global-Estate Resorts, Inc. (GERI), is developing the 150-hectare ha) Lialto Beach and Golf Estates in Lian town, Batangas, marking its 32nd township development, Megaworld said in an e-mailed statement over the weekend.

Lialto Beach and Golf Estates will include a residential village, an 18-hole golf course by the bay, a beach clubhouse featuring a 20-meter tall lighthouse, landscaped gardens, and nearly one kilometer of coastline.

The residential village of the property will offer lots ranging from 300 square meters to 1,200 square meters in size, including those situated along the fairways and on elevated areas.

“We designed this development for people who want to be surrounded by the beautiful vistas of the beach and the sea, while also enjoying an unparalleled golf lifestyle,” Megaworld Global-Estate, Inc. Vice-President of Sales and Marketing Javier Romeo K. Abustan said.

The property’s beach clubhouse will be exclusive to property owners and their guests. It will feature a modern, resort-inspired reception lobby, swimming pools with cabanas and lounge areas, changing rooms, children’s playground, a multi-purpose covered court, outdoor tennis court, yoga area, pocket parks and open spaces, and a viewing deck.

“Lialto came from the words ‘Lian,’ which is the municipality where the development is located, and ‘Alto,’ which means high altitude or height, a vivid description of how this development stands on an elevated area in this side of Batangas,” Mr. Abustan said.

The property will also have solar-powered streetlights. It will also adopt a mangrove area along the beach that will become the community’s protected marine sanctuary, the company said.

The project is approximately 2.5 hours away from Metro Manila and about 45 minutes away from Tagaytay.

From Makati or Taguig, it can be accessed via the South Luzon Expressway and the Cavite-Laguna Expressway leading to the Calatagan-Lian Highway.

Other GERI communities include Eastland Heights in Antipolo, Rizal; Twin Lakes in Laurel, Batangas; Boracay Newcoast in Boracay Island; The Hamptons Caliraya in Lumban-Cavinti, Laguna; Sta. Barbara Heights in Iloilo; Arden Botanical Estate in Trece Martires-Tanza, Cavite; Southwoods City in the Laguna-Cavite boundary; and Sherwood Hills in Trece Martires, Cavite.

Megaworld shares were last traded on May 24 at P1.85 apiece. — Revin Mikhael D. Ochave