SMHCC to expand with 9 hotels after Lanson Place Mall of Asia opening

April 30, 2024 | 12:04 am

chambermaid-making-bed-hotel-room-[drobotdean] — DROBOTDEAN-FREEPIK

SM HOTELS and Conventions Corp. (SMHCC) has announced plans to expand with nine new hotels following the official opening of Lanson Place Mall of Asia.

The company launched the 390-key hybrid hotel and residences in Pasay on April 24, in partnership with Hong Kong brand Lanson Place.

“We have nine hotels underway; ongoing construction includes two hotels in Cebu. One is the Park Inn by Radisson and the other is the Radisson Hotel,” SMHCC Executive Vice-President Peggy E. Angeles said during a media briefing.

Ms. Angeles said SMHCC has allocated P16 billion for its capital expenditure for 2024.

She added that the planned hotels in Cebu are targeted to open in 2027, while the rest are scheduled to open in 2028 and beyond.

The company signed a master franchise agreement with Radisson Hotel Group last year to carry the Park Inn brand, Ms. Angeles said.

“Just last March, we also signed six other license agreements with Radisson. Five of which are Park Inns, and one is a Radisson Hotel,” she added.

“We are introducing a service apartment slash hotel at the back of the Park Inn Clark, which is going to be at Radisson. So that will be a hybrid hotel in Clark,” she added.

The company is also expanding its SMX Convention Center in Cebu, which aims to replicate the size of Mall of Asia in Pasay. “We also have an SMX in Iloilo, in Manila.”

LANSON PLACE MALL OF ASIA
Lanson Place Mall of Asia is the 10^th hotel property owned by SMHCC in the country.

“Today we stand before probably exceeded all expectations. What was once envisioned as the 250-room hotel has now blossomed into 390 hotel service apartment units,” Ms. Angeles said.

The project started in 2019 but was delayed by the COVID-19 pandemic, which halted the work of workers and the supply of construction materials.

“Our initial investment was multiplied, reaching P3.6 billion,” she added.

The hotel offers serviced residence rooms ranging from superior studio, deluxe studios, one-bedroom panorama suite, two-bedroom courtyard suite, executive suite, and more. Those rooms range from 38 to 77 square meters.

Some of the amenities include a rooftop infinity pool, fitness center, resident’s lounge, and a grand ballroom on the second floor.

Meanwhile, meeting rooms on the third floor cater to more intimate events with a view of Manila Bay.

Its proximity to SMX Convention Center Manila makes it ideal for business travelers, and those in need of meetings, incentives, conferences, and exhibitions (MICE) facilities, Lanson Place Mall of Asia Vice-President and General Manager Laurent Boisdron said.

Lanson Place Mall of Asia Chief Executive Officer Michael Hobson said the company looked at the supply and demand, particularly in Pasay, and saw a need for a landscaped place similar to what they have developed.

“A very personal guest experience comes from really understanding your customers and understanding their needs, wants, and preferences,” Mr. Hobson said on the property’s edge over its competitors.

He also added that its partnership with the SM Group was a big deciding factor in being able to partner with a “solid” owner.

Ms. Angeles said the company used to work with Lanson Group in Hong Kong and it started courting SM for possible projects and added if the company intends to expand its service department portfolio, Lanson’s “foot is already in the door.”

The Lanson Place, under Hong Kong-listed Wing Tai Properties Ltd., manages eight properties in Hong Kong, Shanghai, Chengdu, Kuala Lumpur, Singapore, and anticipates an opening in Melbourne in September. — Aubrey Rose A. Inosante

Pet Shop Boys say new album Nonetheless ‘one of our most melodic’

April 30, 2024 | 12:03 am

LONDON — British electro-pop duo Pet Shop Boys say their new album Nonetheless is one of their most melodic from their four-decade-long career, featuring songs about solitude, freedom, and looking for a new bohemia.

The record, which came out on Friday, is the 15^th studio album by the duo — singer Neil Tennant and keyboardist Chris Lowe — and was written during the various COVID-19 lockdowns.

“It’s one of the most melodic albums we’ve ever made … This may be less dancey than some of our (other) albums but … it’s very warm,” Mr. Tennant told Reuters.

“The lockdowns must have had some sort of influence because the first song’s called ‘Loneliness’ and the third song, ‘Why am I dancing?,’ is about why am I dancing when I am so alone? It was true, I did used to dance by myself sometimes.”

Track “New London Boy” looks back at Mr. Tennant moving to London as a teenager and the uncertainties of young adulthood, while in “A new bohemia” he sings about looking for just that.

“Dancing star” was inspired by famed Russian dancer Rudolf Nureyev, who defected from the Soviet Union in 1961.

“In the ’60s you could feel a freedom, and I think around the world now in a lot of places we see the freedom being rolled back,” Mr. Tennant said.

“We all need to feel the freedom and think about a great dancer like Nureyev who wanted to feel the freedom.”

Other songs envisage the perspective of a bodyguard for former US President Donald Trump (“Bullet for Narcissus”) or focus on German pop music (“The schlager hit parade”).

Asked if he had a favorite, Mr. Lowe said: “You can’t have a favorite child, can you?

“We’ve always been prolific songwriters and that has always been the focus of what we do … and we enjoy doing it,” Mr. Tennant said.

The Pet Shop Boys, who formed in 1981, released their debut single “West End Girls” in 1984 and it became a smash hit with a re-mix a year later. They went on to release singles like “It’s a Sin,” “Heart,” and “Go West.”

“We don’t really examine it … We just go with it,” Mr. Tennant said when asked about the duo’s enduring successful musical relationship.

“We’ve shared … more than 40 years … here’s only the two of us been through it and we have a quite good sense of humor about it because a lot of it’s quite ridiculous … it’s created a sort of bond I suppose.” — Reuters

Three ways to solve plastic pollution

April 30, 2024 | 12:03 am

plastic waste — MARTIJN BAUDOIN-UNSPLASH

IF YOU THINK humanity’s addiction to fossil fuels is hard to shake, it’s nothing compared to the strength of our plastics habit.

In rich countries, per-capita carbon emissions and crude oil consumption have both fallen by about 15% since the turn of the millennium. That might seem slow, but at least it’s progress: When it comes to polymers, our usage has risen by 29% over the same period.

That imbues a certain fatalism into the negotiations due to wrap up in Ottawa on Monday. Representatives there are attempting to hammer out the skeleton of a global treaty on plastics pollution that will join similar United Nations pacts on climate change, ozone-depleting chemicals and biodiversity.

The main target of the UN Framework Convention on Climate Change is to eliminate net greenhouse gas emissions by 2060. That’s what boldness looks like. Even the most progressive of three projections for plastics laid out by the Organization for Economic Cooperation and Development forecasts waste will roughly double by 2060. The baseline scenario expects it to triple.

There’s an almost universal political and grassroots consensus that polyethylene, polyvinyl and the like — used in everything from packaging, to clothing, consumer appliances, medical instruments and paint — are a pressing issue that must be urgently tackled. The problem is that the sheer complexity and diversity of the industry is crippling ambition.

A simpler way of looking at it is to consider that plastics present the world with three separate major problems: litter, emissions and health. Each has different solutions, ranging from the straightforward, to the dauntingly difficult.

Litter is perhaps the easiest to tackle, as my colleague Adam Minter has written. Nearly two-thirds of the plastic trash flowing into the world’s oceans comes from just eight countries, mostly middle-income nations in Asia. The US, European Union and Japan put together account for just 0.7% of the total, a lower burden than Haiti.

This is essentially an issue of waste management. Fixing that might be easier said than done in developing countries where municipal authorities are overworked and cash-strapped, but there are plenty of examples of cities — from Tacloban and San Fernando in the Philippines, to Thiruvananthapuram and Chennai in India — that have made real progress.

There’s no shortage of laborers in such places seeking work as garbage-pickers. What’s missing is the money to pay and organize them properly. A global plastics treaty needs to mandate funding from rich nations. Developing countries can help themselves, too, by introducing producer-pays policies, under which manufacturers pay a fee for the disposal of their products. These have been highly effective in Europe, where about 40% of plastic packaging is recycled. They’re already being adopted in less wealthy parts of the world, particularly for electronic waste.

Emissions might seem more challenging, but the broader decarbonization of the global economy offers reasons for hope. Despite their high visibility, plastics represent a surprisingly small share of greenhouse gases — about 1.8 billion tons out of 49.8 billion tons in 2019, or about 3.6% of the total. About 90% of that footprint comes from manufacturing them, rather than composting and landfill.

Better waste management is part of the solution here, too. Most of those manufacturing emissions come from burning carbon-rich fuel to slice and dice hydrocarbon molecules into resin polymer pellets, and then burning more of it to heat, extrude, and blow them into finished goods such as car tires, refrigerator shelves, and shopping bags. The world is currently throwing away vast amounts of methane, however, by failing to capture the gas seeping from landfills, sewage, food scraps, and agricultural residues.

India could use such biomethane to meet about 10% of its natural gas demand today and spend less money than it pays for imported LNG, according to the International Energy Agency. By 2040, that share rises to about two-thirds. There’s a long road to reach that target: Globally, such biogas only accounts for about 1.2% of the energy we produce from fossil gas right now.

Several recent studies have argued that process improvements using such biogenic gas could make plastic production almost or entirely carbon-free. That’s not going to happen unless global rules impose costs and mandates on the 800-odd oil refineries where our resin pellets are produced, however.

All this suggests there’s grounds for progress. The situation with health, however, is more demoralizing, and confusing.

Part of the problem is that we just don’t know how much damage plastics are doing. Despite alarming evidence of the way they accumulate in oceanic flotsam, the guts of animals, and even the internal tissues of people and fish, we’re still in the dark about the true scope of the problem, or whether it’s a health problem at all.

Even so, a precautionary principle seems sensible. Microbeads, the tiny polymer particles used in many cosmetics, are banned in many (but not all) countries. That should be extended worldwide.

The health effects of phthalates (a ubiquitous group of additives that make plastics more flexible) and bisphenol A (which makes them tougher) are the subject of ongoing scientific debates. Minimizing usage of each chemical on a global scale would be worthwhile. Beyond that, we should set a long-term global cap on plastics production, and give each country a target share, as we now do with carbon emissions.

For the most part, we worry too much about plastics, and underestimate how useful and beneficial they are. We’re not going to be able to turn the clock back on the fact that modern society is built on complex chemicals.

Nonetheless, we should tackle this issue head-on. More than half of the toxic mercury in our soils, waters, and air today was emitted before 1900. Plastics, similarly, don’t easily flush themselves out of the environment. If we delay too long before acting, we may be left with a legacy that will take generations to solve.

BLOOMBERG OPINION

AllDay Marts income rises 22.4%

April 30, 2024 | 12:03 am

VILLAR-LED AllDay Marts, Inc. saw a 22.4% growth in its net income last year to P369 million from P302 million in 2022.

Revenue surged 4.4% to P10.19 billion in 2023 from P9.76 billion in 2022, AllDay Marts said in a statement on Monday.

AllDay Marts operates AllDay Supermarket and caters to the mid-premium segment.

The company’s gross profit increased by 3% to P2.06 billion, while earnings before interest, taxes, depreciation, and amortization grew by 10.3 % to P995 million.

“AllDay was successful in growing its business in 2023 and has taken clear strides to elevate the supermarket experience for the Filipino. We believe our performance reflects this in 2023,” AllDay Chairman Manuel B. Villar, Jr. said.

“With a market still clearly hungry for experiences in the country’s full return to normalcy, our supermarket concept is still well-received,” he added.

AllDay said it bolstered the company’s position in the premium supermarket market through improvements in importation.

“Aside from our constant thrust to innovate on AllDay’s in-store experience, we take heed of our market’s preference for experiences and flavors they experience abroad. I am confident in saying AllDay’s range offering carries a much stronger imported selection, which strengthens our overall elevated supermarket experience,” AllDay Vice-Chairperson Camille A. Villar said.

AllDay Supermarket’s President and Chief Executive Officer Frances Rosalie T. Coloma said the company previously opened four new minimart locations, including Camella East and Ponticelli in Bacoor, Maia Alta in Antipolo, and along Governor’s Drive in Dasmariñas.

In a separate statement, AllHome Corp. said it recorded a net profit of P797 million in 2023, down by 15% from P934 million in 2022, as consumer spending shifted away from home retail.

Net revenue reached P12.06 billion, while gross profit margins rose to 38% in 2023 from P36.8% in 2022.

“Though current consumer spending has been diverted from home retail to less essential expenses like fashion, health and beauty, entertainment, and travel, AllHome remains committed in delivering value to our stakeholders,” AllHome President and Chief Executive Officer Benjamarie Therese N. Serrano said.

“We have steadily increased our margins, both in gross and net terms, ending 2023 with a gross margin of 38%. We also continue to seek out operational efficiencies, especially as we face unusually high inflation and increased utilities costs,” she added.

Ms. Serrano remains upbeat about AllHome’s performance moving forward, citing a Euromonitor 2023 report that projects the country’s home retail sector to have a compound annual growth rate of 6.2% from 2024 to 2028.

“The long-term fundamentals of the home retail sector in the Philippines remain sound, and we look to take advantage of this with AllHome reclaiming its position as a premium home retailer that enjoys the unique synergy of self-sustaining retail ecosystems, buoyed by synergies with Vista Land, the country’s largest home builder, as well as with its sister companies under the AllValue umbrella,” she said.

On Monday, AllDay shares rose by 3.08% or P0.004 to P0.134 per share while AllHome stocks dropped by 1.01% or one centavo to 98 centavos apiece. — Revin Mikhael D. Ochave

Baguio turns to data science, AI to support smart city objectives

April 30, 2024 | 12:03 am

By Aubrey Rose A. Inosante

THE CITY GOVERNMENT of Baguio said it is implementing Project MINERVA (Monitoring of Indicators for Efficient Redevelopment and Value Assessment) to address urban decay and promote smart city development.

“With the project’s ultimate goal of driving predictions and monitoring models for air quality, water quality, urban mobility, and tourism management, we’re able to use technology to advance our goal of becoming a truly smart city by 2027,” Baguio City Mayor Benjamin B. Magalong said during a turnover ceremony on April 15.

Mr. Magalong referenced a 2019 National Economic and Development Authority (NEDA) commissioned study on urban carrying capacity, which identified urban decay in the city.

The study warned that if not addressed within 25 years, the effects would be irreversible. Urban decay refers to the city regressing to a lack of employment opportunities, infrastructure, and resources.

In 2014, the World Health Organization rated Baguio’s air, which had 49 micrograms of particulate matter (PM) per cubic meter, as the most polluted air in the Philippines.

Mr. Magalong said Baguio was the first city in the country to commit to reducing its carbon, greenhouse, and gas emissions by as much as 50% by 2050.

“With all these systems, we were able to significantly improve our air quality. Minerva gave us the confidence to continue the pedestrianization program of Session Road,” Mr. Magalong said regarding the criticized closure of a portion of Session Road during Sundays to ease pollution.

In a presentation by Project MINERVA Senior Data Scientist and Chief Data Specialist Christopher P. Monterola, he said almost all of Baguio’s barangays had safe levels of PM 2.5 in 2023.

The LGU (local government unit) can forecast the impact of pollution for up to nine days using cross-convergent mapping.

Mr. Monterola noted that the tourism index score of Baguio, the summer capital of the country, is 4.0, higher than the score of the Philippines, which is 3.7.

Baguio has a daytime population of 380,000, with 600,000 tourists and workers, totaling up to 1.2 million, he said.

Mr. Monterola also said that air quality is compromised every time there is a spike in events and holidays but does not affect traffic, according to the nighttime imagery from the satellite used in the daily resolution of the project’s urban carrying capacity in 2023.

Meanwhile, Mr. Magalong acknowledged the system’s failure to detect the January diarrhea outbreak, attributing it to incorrectly installed sensors.

“University of the Philippines (UP), together with the Asian Institute of Management (AIM), was able to develop an improved sensor. We want to improve the air quality, the water quality so that our diarrhea outbreak will not happen again,” he said on the focus of Project MINERVA pending Phase two.

These are gathered through 588 sensors handled and attached to taxis, jeepneys, and volunteers spread across the city.

The Project Minerva utilizes artificial intelligence (AI) and data science. One implementation is its ability to detect parking violators, with cases ranging from 980 to 1050 on a daily basis.

“The inclusion of six local government units from the Cordillera Administrative Region, Lagayan in Abra, Santa Marcela in Apayao, Atok in Benguet, Tabuk in Calinca, Alfonso Lista in Ifugao, and Bapu in Mountain Province underscores our commitment of developing at least one pilot smart and sustainable community per province,” Department of Science and Technology (DoST) Secretary Renato U. Solidum, Jr. said.

Mr. Solidum said the biometric-secured command center will be monitored and operated by city administrators and data scientists, focusing on various aspects of the city such as traffic patterns, mobility, environmental data, emergency response, and rescue efforts.

The P25-million project was funded by the DoST Philippine Council for Industry, Energy and Emerging Technologies Research and Development and developed by the Asian Institute of Management.

K-Pop group ITZY showcases individuality on second world tour

April 30, 2024 | 12:02 am

NEW YORK — Members of the K-pop supergroup ITZY are looking to show a new side of themselves as the band takes its Born to Be tour to fans around the world.

The tour, which sees the girl band perform in 18 countries across Asia, Australia, New Zealand, Latin America, Europe, and North America this year, takes its name from the group’s third studio album, released in January.

“There are our solo songs (on the album). So I think that’s a very big difference (from the previous world tour) … we have our own song (on) stage,” band member Ryujin told Reuters, in a joint interview with fellow members Yeji, Chaeryeong, and Yuna.

“(Working) on our own songs … really helped to express ourselves.”

ITZY debuted in 2019 and has built a loyal fan base — called MIDZY — with a blend of vibrant pop, hip-hop, and EDM influenced songs and messages of self-love and empowerment.

“Every K-pop group has their speciality… Our group’s… is, first of all, performance and also, we have a main message that (is) to love ourselves,” Ryujin said.

One of the band members, Lia, has been taking a break for health reasons since September, the group’s label has been quoted saying in media reports.

“She’s trying hard to come back really, really soon and she’s doing great nowadays, we meet each other and hang out,” Ryujin said.

The Born To Be concert tour began in Seoul in February and wraps in Hong Kong in August. — Reuters

Privatize assets to cut debt

April 30, 2024 | 12:02 am

There have been some good reports on the Philippines’ fiscal situation early this year. See these recent stories in BusinessWorld: “Debt service bill falls by 22% in Feb.” (April 22), “Budget deficit narrows in March” (April 25), and “NG gross borrowings fall in March” (April 29).

I checked the cash operations report released last week by the Bureau of the Treasury (BTr) for the first quarter (Q1) of 2024, then compared it with first quarter data of 2019 to 2023. Here are some of the highlights.

HIGHER REVENUES, DECLINING DEFICIT
1. For the first time, revenues have breached the P900 billion mark this year. The Bureau of Internal Revenue (BIR) collected nearly P600 billion, but the Bureau of Customs has been a laggard, with a nearly flat performance as in 2023.

2. The interest payment is high at nearly P200 billion, no thanks to the huge public debt stock of P14.97 trillion as of end-2023 and P15.18 trillion as of February this year, and the high interest rate policy of the Bangko Sentral ng Pilipinas.

3. The budget deficit was flat at the 2023 level, which is good as the deficit/GDP ratio should be lower. Again, thanks to the high revenues.

4. Financing or borrowing has dipped to below P800 billion, and this is good (see Table 1). In non-crisis years, borrowings should be kept to a minimum and higher revenues should be devoted to reducing the public debt and not creating new spending, like the lousy proposal to buy submarines, new battleships, and other paraphernalia of war.

In a social media post, Budget Secretary Amenah F. Pangandaman emphasized the role of fiscal transparency and discipline, the priority expenditures on human capital, infrastructure development, and digitalization of government transactions to improve our people’s productivity, government spending efficiency, and ease of doing business in the country.

When social and hard infrastructure spending is efficient, the overall productivity of the economy will increase, revenues will improve, and the need for new borrowing will also decline. Continue this path, Madame Secretary.

Finance Secretary Ralph G. Recto reiterated this in his Keynote speech during the Philippine Dialogue in Washington DC on April 17, saying, “In 2023, our fiscal deficit continued to narrow down to 6.2% of GDP from its peak of 8.6% at the height of the pandemic… attributed to the consistently higher government revenue collections and improved expenditure management, which prioritizes massive infrastructure projects and social services.”

HIGH REVENUES/GDP RATIO
Last week, this column presented data on government expenditures as a percentage of gross domestic product (G/GDP ratio) across countries from 2004 to 2023. Today I will present government revenues as percentage of GDP (R/GDP ratio).

The Philippines has a high R/GDP ratio of 20%, considering National Government revenues alone. If revenues by local government units (local business taxes, fees and charges) are added, this will increase to about 23%. Meanwhile, Hong Kong, Taiwan, Singapore, Vietnam, Malaysia, and Indonesia have R/GDP ratios of below 19% (see Table 2).

HIGH TAX/PROFIT RATIO
Table 2’s data for the Philippines may not look good for investors, local and foreign. Recall the World Bank’s annual Doing Business (DB) reports, especially on “Paying Taxes.” The Philippines has a high total tax and contributions as percentage of profit, 47% in the DB 2006 report and 41% in the DB 2020 report. Meanwhile, Vietnam and Malaysia have 38%, and Hong Kong and Singapore have only 16% and 19% respectively in the DB 2020 report (see Table 3).

The WB discontinued this project in 2021 after reports of data irregularities for DB 2018 and DB 2020 and they reviewed the audits and methodology. Nonetheless, the trend is there to see so that despite reported data irregularities in the 2018 and 2020 reports, there is consistency in the numbers. This will guide the current Philippines economic team on how to further improve the ease of paying taxes, and the President to discipline tax-hungry LGUs that discourage instead of encourage more business competition and dynamism in their localities.

In his first 100 days review as Finance Secretary, Mr. Recto highlighted that “Together with the Development Budget Coordination Committee (DBCC) economic managers, we recalibrated the government’s medium-term macroeconomic assumptions, fiscal program, and growth targets… the government’s revenue performance will continuously increase from P4.27 trillion (16.1% of GDP) in 2024 to P6.08 trillion (16.4% of GDP) in 2028… the fiscal deficit will decrease (from) 5.6% of GDP in 2024 to only 3.7% in 2028.”

Push for the privatization of some large government assets and corporations too, Mr. Recto. While higher revenues from higher GDP growth and more business activities will do this, revenues from privatization will greatly help and should be used entirely to reduce the public debt. Then tax revenues can be devoted to infrastructure instead of debt servicing for principal plus interest payments.

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

minimalgovernment@gmail.com

Gov’t fully awards T-bills as yields drop

April 30, 2024 | 12:02 am

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as rates mostly decreased amid easing tensions in the Middle East and steady US inflation.

The Bureau of the Treasury (BTr) raised P15 billion as planned from the T-bills it offered on Monday as total bids reached P51.204 billion, or nearly thrice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P16.16 billion. The three-month paper was quoted at an average rate of 5.869%, 1.9 basis points (bps) lower than the 5.888% seen last week. Accepted rates ranged from 5.835% to 5.889%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P18.59 billion. The average rate for the six-month T-bill stood at 5.988%, down by 1.4 bps from the 6.002% fetched last week, with accepted rates at 5.97% to 6.013%.

Lastly, the Treasury raised P5 billion as planned via the 364-day debt papers as demand for the tenor totaled P16.454 billion. The average rate of the one-year debt inched up by 0.1 bp to 6.081% from the 6.08% quoted last week. Accepted yields were from 6.065% to 6.10%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.9018%, 6.0201%, and 6.0508%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

T-bill yields mostly dropped week on week on Monday amid easing tensions between Iran and Israel, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Iran’s foreign minister said the crew of a seized Portuguese-flagged ship linked to Israel have been granted consular access and are expected to be freed, Iranian media reported on Saturday, Reuters reported.

Iran’s Revolutionary Guards seized the container vessel MSC Aries with a crew of 25 in the Strait of Hormuz on April 13, days after Tehran vowed to retaliate for a suspected Israeli strike on its consulate in Damascus. Iran had said it could close the crucial shipping route.

On Monday, Brent fell 0.9% to $88.70 a barrel, while US crude similarly edged 0.8% lower to $83.17 per barrel, as news of a potential Gaza ceasefire also eased fears of supply constraints.

A Hamas delegation will visit Cairo on Monday for talks aimed at securing a ceasefire, a Hamas official told Reuters on Sunday, as mediators stepped up efforts to reach a deal ahead of an expected Israeli assault on the southern city of Rafah.

“The awarded rates went lower today following the mild US PCE (personal consumption expenditures) inflation reading last Friday,” a trader said in an e-mail on Monday.

US monthly inflation rose moderately in March, but stubbornly higher costs for housing and utilities suggested the Federal Reserve could keep interest rates elevated for a while, Reuters reported.

The PCE price index increased 0.3% last month, matching the unrevised gain in February, the Commerce department’s Bureau of Economic Analysis said.

In the 12 months through March, inflation rose 2.7% after advancing 2.5% in February. The increase in inflation last month was broadly in line with economists’ expectations.

There had been fears that inflation could exceed forecasts in March after the release of the advance gross domestic product report for the first quarter on Thursday showed price pressures heated up by the most in a year.

The spike in inflation occurred in January. The PCE price index is one of the inflation measures tracked by the US central bank for its 2% target. Monthly inflation readings of 0.2% over time are necessary to bring inflation back to target.

Fed policy makers are expected to leave rates unchanged this week. The central bank has kept its benchmark overnight interest rate in the 5.25%-5.5% range since July. It has raised the policy rate by 525 bps since March 2022.

Excluding the volatile food and energy components, the PCE price index increased 0.3% in March after rising by the same unrevised margin in February. Core inflation increased 2.8% on a year-on-year basis in March, matching February’s advance.

Monday’s T-bill offering was the last for this month. The government raised P77 billion from the short-term papers in March, above the P75-billion program, as it upsized one auction award amid strong demand.

On Tuesday, the BTr will offer P30 billion in reissued 20-year Treasury bonds with a remaining life of seven years and two months.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.6% of gross domestic product this year. — A.M.C. Sy with Reuters

Urban living redefined by collaborative genius

April 30, 2024 | 12:02 am

The-Observatory-Sora-Tower-(Artist's-Perspective)-OL — The Observatory Sora Tower (Artist's Perspective)

In the bustling metropolis of Metro Manila, keeping up with the urban environment requires a blend of adaptability, resourcefulness, and a willingness to navigate the intricacies of living in a fast-paced city.

Utilizing its strong and equal Filipino and Japanese partnership, Federal Land NRE Global Inc. (FNG) aspires to be the market leader of the real estate industry while redefining urban living through its developments.

Fusing Japanese innovation with Filipino sensibility, FNG is guided by its sustainability principles and forward-thinking design in the development of its new projects. The joint venture between the Philippines’ Federal Land Inc. and Japan’s Nomura Real Estate Development brings carefully defined brand pillars and a visionary approach aiming to reshape urban living.

Well-thought-out design, architecture, and features are also integrated into FNG’s projects. The importance of Japanese identity in their property developments is underscored in their properties’ ample living spaces, modernized amenities, and nature-inspired landscapes.

As a company built on a partnership, collaboration lies at the heart of FNG’s successful ventures, enabling innovation, growth, and progress. Through shared expertise, resources, and vision, this partnership supersedes cultural and geographical boundaries, bringing together different perspectives and skills helpful in developing properties.

With FNG placing the people at the heart of its vision, they take a comprehensive approach to understanding people’s needs and striving to build sustainable urban communities that foster thriving families.

FNG’s masterplanned communities are designed to cater to every aspect of life. They offer residents the opportunity to live, play, socialize, work, and settle down, all within the confines of a carefully curated environment with convenient proximity to transportation hubs and employment opportunities

These features, amenities, and principles are all showcased in some of the company’s most noteworthy projects that embody a distinct vision for modern living and urban life. Through partnership and a commitment to excellence, these developments serve as examples of what collaborative efforts can achieve in redefining the landscape of urban living.

Yume at Riverpark, a residential neighborhood within Federal Land’s Riverpark community in General Trias Cavite, is a haven of Japanese inspiration tailored to starting families. This residential enclave fuses the Japanese culture and design with sensible Filipino family requirements. A diverse range of residential options, with lot sizes ranging from 300 to 527 square meters (sq.m.) ensure home-buyers find their ideal home within Riverpark’s thriving community.

For residents seeking an escape from the busy streets of Manila, Yume at Riverpark offers relaxing and rejuvenating features such as a wellness spa, a jacuzzi, and a sauna. For more active residents looking to break a sweat, outdoor fitness zones, multipurpose court, and jogging paths provide ample opportunities to engage in invigorating workouts.

Family-friendly amenities perfect for bonding are present in the township as well. Features such as their open lawn, multipurpose hall, function room, and lounges are perfect for family celebrations while their clubhouses, pocket parks, and kids’ play areas are enjoyable for children.

The Observatory in Mandaluyong City caters to the different preferences of its residents for a contemporary retreat from the metropolis. The property integrates modernity with an inviting retreat, promising a holistic urban living experience.

The 4.5-hectare mixed-use development is strategically located in close proximity to major Central Business Districts in the country. The Observatory in Mandaluyong will offer a spectrum of unit sizes spanning from compact studios at 28-33.5 sq.m. to expansive penthouses at 155.5-205 sq.m.

These noteworthy projects aspire to create a serene and rejuvenating environment for Filipinos to thrive in. The properties are also located in areas with escalating land values as evidenced by Colliers data, highlighting the area’s investment potential and offering residents not just a home, but a sound investment for the future.

FNG also has additional projects spanning various locations across the archipelago pipelined for the coming years. Developments in Cebu and the Manila Bay area are expected to usher in a new era of contemporary living in these locations.

From lavish amenities for relaxation and recreation to family-friendly spaces perfect for bonding, FNG properties provide a holistic living experience that brings their residences to the next level. With a commitment to connectivity, technology, and community-building, FNG is reshaping urban landscapes and fostering sustainable and thriving communities where residents can truly thrive.

As Federal Land and Nomura Real Estate Development continue their partnership under the banner of FNG, they remain dedicated to their shared vision of enhancing lives and redefining urban living, one development at a time.

To discover more about FNG and its projects, visit www.fng.ph.

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PCC clears JV between Mitsui and KDDI subsidiaries

April 30, 2024 | 12:02 am

THE Philippine Competition Commission (PCC) on Monday said the proposed joint venture (JV) between Mitsui & Co., Ltd. and KDDI Corp. subsidiaries does not pose a competition threat in the relevant market.

The joint venture between Mitsui’s Relia, Inc. and KDDI’s KDDI Evolva will not result in “substantial lessening, restriction, or prevention of competition in the relevant market,” the PCC said in a statement, citing a decision dated April 13, 2023.

If realized, the joint venture will result in the merger of Relia and KDDI Evolva, with KDDI Evolva as the surviving entity.

Relia specializes in business process outsourcing services, while KDDI Evolva offers information and communications technology solutions.

“The joint venture aims to combine Mitsui’s strategic capabilities with KDDI’s telecommunications expertise, focusing on digital solutions and innovation in areas such as contact center services and IT solutions through KDDI Evolva, the resulting entity,” the PCC said.

The PCC said that it has assessed the provision of Secure Access Service Edge (SASE) for integrated network solutions on a global scale as the relevant market for the transaction.

This solution, the PCC said, keeps networks safe and connected by using security tools like firewalls and networking technology to let people access applications and data securely anywhere.

“While there is a vertical relationship between the parties involving the resale of SASE licenses, this relationship does not significantly impact competition due to the presence of alternative providers and services in the market,” the PCC added.

Under the Philippine Competition Act, the PCC is mandated to review mergers and acquisitions to ensure fair market competition. — Justine Irish D. Tabile

Hybrid work, new supply to drive 22% office vacancy rate this year — JLL

April 30, 2024 | 12:02 am

HYBRID working arrangements and new office spaces are expected to contribute to a 22% vacancy rate by the end of the year, according to JLL Philippines.

“By end 2024, what we forecast for vacancy levels is to reach around 22% and the reason for that is to expect an additional 500,000 square meters (sq.m.) of all stock on demand,” JLL Philippines Head of Research and Strategic Consulting Jan-Loven C. de los Reyes said during a press briefing on Thursday last week.

“That would apply supply pressure on the market, considering that we have heavy vacancy levels that are in the double digits across cities,” he added.

JLL said the first quarter vacancy level eased to 19.9% from 20.3% in the fourth quarter of 2024.

However, this vacancy level is still higher than 17.8% in 2023.

According to Mr. De los Reyes, overall, this was due to the reduction in new supply, coupled with a good take-up rate of around 75%. Manila had the highest vacancy rate at 38.1%, followed by Parañaque at 50.4%, and the lowest in Bonifacio Global City at 9.1%.

He also noted a “double whammy” that contributes to the high vacancy level, citing the exit of the Philippine Offshore Gaming Operators and the emergence of hybrid work arrangements.

JLL projected approximately 582,234 sq.m. of stock for the end of 2024, followed by 456,219 sq.m. in 2025, and 227,749 sq.m. in 2026. Additionally, there will be 43,066 sq.m. for both 2027 and 2028.

Regarding take-up, JLL noted a rise in leasing volumes to 149,172 sq.m. in the first quarter from 81,785 sq.m., attributed to the spillover of deals from the fourth quarter of 2023.

But year on year, this was slower and fell by 30% to 213,707 sq.m. The cities of Taguig and Makati led the transaction activities.

Per sector, the share of business process outsourcing (BPO) in total leasing activity stands at 68.9%, while corporate occupiers account for 31.1%.

Mr. De los Reyes said leasing volumes are anticipated to remain moderate over the next quarters but are still significantly below the levels seen during the pandemic.

He noted that the easing conditions are due to office demand being tempered by hybrid working.

“Select BPO companies have been releasing spaces but have not taken out additional spaces by improving their headcount,” he said. “There are also going to be companies who are taking up space, keen to have employees return to the office, and this may come from the financial services segment.”

For the first quarter, JLL said the released office space rose to 97,365 sq.m.

The BPO sector pullout in Muntinlupa City amounted to 3,400 sq.m., while the corporate occupier pullout in Taguig City totaled 1,000 sq.m.

JLL also said that Metro Manila’s overall rents remained unchanged at P1,004 per sq.m. in the first quarter. — Aubrey Rose A. Inosante

Republic Glass Holdings Corp. to hold regular annual meeting of stockholders on May 21

April 30, 2024 | 12:01 am

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