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Amplifying office recovery (part 2)

PETR MAGERA-UNSPLASH

This is the second of a two-part article. Read the first part here: https://tinyurl.com/yqt6mpyk

Q3 TRANSACTIONS UP 15%
As of the first nine months of 2023, office space deals in Metro Manila reached 501,200 square meters (5.4 million square feet), up 2% year on year. We recorded 227,300 sq.m. (2.4 million sq.ft.) of office transactions from traditional occupants followed by outsourcing companies with 185,100 sq.m. (2.0 million sq.ft.) of closed deals.

In the third quarter of 2023 alone, we recorded 196,600 sq.m. (2.1 million sq.ft.) of office deals, up 15% quarter on quarter. Companies that employed flight-to-value strategies accounted for more than a third of closed deals during the quarter followed by expansion and new set-ups.

The Bay Area, Ortigas central business district (CBD) and Makati CBD dominated transactions in the nine-month period, accounting for 56% of total office deals in Metro Manila. Among the notable deals in the third quarter of 2023 include spaces occupied by Philippine Amusement and Gaming Corp. (PAGCOR) and TSA Group in the Bay Area, Bytedance in Fort Bonifacio, Greatwork in Ortigas CBD and Singa Ship Management in Makati CBD.

SUSTAINED PROVINCIAL DEALS
We continue to record office space deals outside of Metro Manila. In the third quarter of 2023, office transactions reached 66,200 sq.m. (712,300 sq.ft.), higher than the 56,100 sq.m. (603,600 sq.ft.) of deals posted in the second quarter of 2023. As of the first nine months of 2023, provincial deals reached 148,500 sq.m. (1.6 million sq.ft.), up 3%. Cebu accounted for nearly half of the total deals outside of the capital region followed by Pampanga (22%) and Laguna (8%).

Some of the notable transactions outside Metro Manila during the quarter include office space taken up by Foundever, Sansan Global Development and Kuehne & Nagel in Cebu, Ubiquity Global Services in Bacolod, and Afni Philippines in Laguna, the company’s first foray outside Metro Manila.

SUPPLY-DRIVEN VACANCY
The vacancy rate as of the third quarter of 2023 rose to 18.7%, up from 18.4% in second quarter of 2023 as we recorded the completion of 202,100 sq.m. (2.2 million sq.ft.) of new office space and new lease terminations from Philippine Offshore Gaming Operators (POGO).

By end-2023, we expect vacancy to rise to 21.2% as we still project the delivery of about 276,400 sq.m. (3.0 million sq.ft.) of new supply in the fourth quarter of 2023. In 2024, vacancy is still likely to remain elevated as we project new supply to continue outstripping demand.

Net take-up in the third quarter of 2023 reached 17,200 sq.m. (185,100 sq.ft.). Net absorption as of the first nine months of 2023 reached 154,000 sq.m. (1.7 million sq.ft.), up 50% from 102,500 sq.m. (1.1 million sq.ft.) a year ago. Colliers retains its projection of 220,000 sq.m. (2.4 million sq.ft.) net take-up in 2023.

RENTS TO DROP BY 2% IN 2023
In the third quarter of 2023, average office lease rates in Metro Manila dropped by 0.5% quarter on quarter.

While some business districts (i.e., Fort Bonifacio and Makati CBD) continue to see a recovery in rents, other submarkets with significant amount of available spaces such as the Bay Area and Alabang are likely to experience further decline in rents.

In 2023, we projected rents to drop by another 2%, after plunging by 37% from 2020 to 2022. Rental behavior is still dependent on a variety of factors including but not limited to building occupancy, landlord portfolio vacancy, size of the requirement, lease term etc.

 

Kevin Jara is associate director for office services – tenant representation at Colliers Philippines.

Cebu Manila Water ends supply contract with Metro Cebu Water District

CEBU Manila Water Development, Inc. (CMWD) has terminated its water supply contract with Metropolitan Cebu Water District after more than 10 years, Manila Water Co., Inc. announced on Monday.

In a disclosure to the stock exchange, Manila Water said that the termination became effective on Dec. 1.

The company did not provide additional details regarding the terminated contract.

CMWD is a joint investment of Manila Water Consortium, Inc. and the provincial government of Cebu. Manila Water Consortium, Inc. is a subsidiary of Manila Water Philippine Ventures, Inc., a wholly owned subsidiary of Manila Water.

Manila Water entered into a joint investment agreement with the provincial government of Cebu in 2012 for the development, operation, and maintenance of a bulk water system that will supply a minimum of 35 million liters per day of potable water.

Meanwhile, in an e-mailed statement, the company said that it has suspended its excavation activities in major access routes within its service area.

It said that this is in compliance with the memorandum circular issued by the Metropolitan Manila Development Authority, which orders the temporary suspension of road works in major roads in Metro Manila, such as road reblocking, pipe laying, and road upgrading activities “as part of the efforts to alleviate congested traffic during the Christmas season.”

“Despite this, Manila Water assures its customers that water service will remain 24/7, and the company will still be prompt in responding to their water supply and sanitation needs and concerns, as activities related to the installation of new water service connections and the conduct of emergency leak repairs are exempted in the said memorandum,” the company said.

At the local bourse on Monday, shares of Manila Water went down by P0.16 or 0.89% to close at P18.20 apiece.

The water concessionaire serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera

Justice for all or protection for one?

FLICKR.COM/PHOTOS/UN_PHOTO

Last Tuesday, Senator Risa Hontiveros filed a resolution in the Senate urging the administration to finally cooperate with the International Criminal Court (ICC) in its investigation of former president Rodrigo Duterte’s war on drugs. Resolution No. 867 says, “The Philippines has historically been at the forefront of advancing humanitarian law and international justice, and it is high time that we affirm our commitment to these values before the international community.”

To Senators Sonny Angara, Nancy Binay, Alan Peter Cayetano, JV Ejercito, Sherwin Gatchalian, Loren Legarda, Koko Pimentel, Grace Poe, Cynthia Villar, Migz Zubiri, and Joel Villanueva, the administration cooperating with the ICC’s investigation of the Duterte administration’s war on drugs would mean the resumption of, to use Sen. Cayetano’s words, the destruction of the image of our country, our economy, and the future of our next generation.

On Sept. 19, 2016, four days after the Senate Justice and Human Rights Committee chaired by Sen. Leila de Lima had held another hearing on President Rodrigo Duterte’s violent war on drugs, Sen. Cayetano delivered a privilege speech. He said:

“We have to save our nation from the efforts of a few people to destroy the image of our country, our economy, and the future of our next generation. The Senate is being used to mislead the public and the international media. (First, it was) to discredit the President and his efforts.

“Now… the effort (is to destroy) the image of our country abroad… Second, (it is to destroy) the image of the Senate as an institution, distracting us from more urgent work that needs to be done. And third, (it is to destroy) our long-honored traditions of collegiality, civility, of disagreeing but allowing the other person to speak freely.

“The President is fighting three wars… The War against poverty, which includes leveling a playing field that by and large only oligarchs grow and prosper, while the greater majority struggles just to survive; The War against crime, illegal drugs, and corruption; (and) The War on war, or the quest for a just and inclusive peace and an end to the decades-long communist insurgency as well as other rebellions in our country.

“In the end, we might all lose this war. But the biggest loser will not be President Duterte. It will be the economy, the political institutions, and the entire nation. So why sit by and just watch? Why should we allow our Institution to be used this way?

“There are 24 senators here. There are 30 committees. Sen. De Lima is a very talented senator, a very experienced lawyer, an efficient public servant, she can handle so many other committees, Mr. President.”

Following Sen. Cayetano’s speech, Sen. Manny Pacquiao, who had been elected to the Senate only in June of that year, moved that the Senate declare the chairmanship and membership of the Committee on Justice and Human Rights vacant. Sixteen senators voted “yes.” In effect, they ousted Sen. De Lima from the chairmanship of the committee.

Among the 16 senators who voted to oust Sen. De Lima are the 11 aforementioned senators. The five others — Richard Gordon, Gregorio Honasan, Panfilo Lacson, Tito Sotto, and Manny Pacquiao himself — are no longer in the Senate or in any branch of government. The same 16 senators also voted “yes” to the extension of martial law which President Duterte imposed in Mindanao in May 2017. That indicates that those senators based their decisions on the bidding of the power that be, belying what former Senate President Sotto often said, that the Senate is composed of 24 independent minds.

Reacting to the removal of Sen. De Lima from the chairmanship of the Justice and Human Rights Committee, Sen. Hontiveros rose to say, “There was no overwhelming reason to declare the chairmanship of the Committee on Justice vacant. If there were issues against Sen. Leila’s objectivity, the proper venue for this was the Committee on Ethics.”

If they truly believe that investigating the former president’s war on drugs would be destructive, then Senators Angara, Binay, Cayetano, Ejercito, Gatchalian, Legarda, Pimentel, Poe, Villar, Zubiri, and Villanueva will vote to junk Sen. Hontiveros’ resolution. If they decide on the basis of the prompting of the powers that be as they have done in the past, then they will adopt Sen. Hontiveros’ resolution as President Ferdinand Marcos, Jr. seems to be leaning towards cooperating with the ICC.

Three resolutions similar to the one filed by Sen. Hontiveros were adopted last Wednesday by the House of Representatives joint committee on Human Rights and Justice. The adoption of all three resolutions indicates the President’s position on the issue as the overwhelming majority of the members of the two committees belong to the administration party. After all, when President Marcos Jr. was a senator in 2011, he voted for the ratification of the Rome Statute that created the ICC.

Also, he must have realized that his many expensive foreign sorties to attract investments into the country would only be productive if he did some “housecleaning.” This year, the President has spent, as of September, P480 million on travel. Former National Economic and Development Authority Secretary Ernesto Pernia said in September that the President’s foreign trips had not boosted foreign direct investments (FDIs). The Bangko Sentral ng Pilipinas reported that net inflows of FDIs declined by 3.9% year on year.

In February, the Human Rights Committee of the European Parliament called on the Philippines to improve its human rights record. European Parliament Sub-Committee on Human Rights Vice-chair Hannah Neumann said, “We called on the authorities to ensure a safe and enabling space: free from threats, harassment and attacks. In this regard, they encouraged a swift adoption of an ambitious legislation on the protection of human rights defenders.”

Ms. Neumann and her colleagues, Isabel Wiseler Lima, Ryszard Czamecki, Miguel Urban Crespo, and Karsten Lucke, also paid a visit to former Senator Leila de Lima, who was then in detention due to trumped up drug-related charges.

In March, European Union Special Representative for Human Rights Eamon Gilmore said during his visit here, “We will continue to …bring about justice and accountability and other programs in the Philippines needed to improve human rights.” He also paid a visit to Ms. De Lima.

In exchange for the improvement of the human rights situation in the Philippines, the European Parliament and the European Council will support a European Commission proposal for a “rollover of the existing European Generalized Scheme of Preferences Plus (GSP+) for another four years.”

When President Marcos Jr. met with US President Joseph Biden in the White House last May, he pitched for the renewal of the US GSP to boost trade. The inclusion of Justice Secretary Crispin Remulla in the President’s entourage on that trip suggests that the renewal of the US GSP may have been discussed in relation to the investigation of human rights violations in the Philippines.

The United Nations Human Rights Committee has also called on the Philippine government to comply with international human rights mechanism and to cooperate with the ICC’s drug war probe.

After all, Senators Cayetano, Legarda, Pimentel, and Zubiri also voted in 2011 for the ratification of the Rome Statute that created the ICC. So, did Senators Chiz Escudero, Pia Cayetano, and Jinggoy Estrada, among the current senators.

Sen. Legarda, chairperson of the Senate Foreign Relations Committee in 2011, sponsored the ICC Ratification bill which was approved by 17 senators. When the Philippines deposited its Instrument of Ratification with the UN Office of Legal Affairs in New York on Aug. 31, 2011, Sen. Legarda manifested that this “is a step in the right direction, considering that the Philippines is a thriving and robust democracy. This will strengthen our stand in protecting human rights, including the right to human life and dignity, and will bring a strong message that we will never tolerate impunity.”

So, Senators Legarda, Cayetano, Pimentel, Angara, Binay, Ejercito, Gatchalian, Poe, Villar, Zubiri, and Villanueva, what will you vote for — justice for all or protection for one?

 

Oscar P. Lagman, Jr. has been a keen observer of Philippine politics since the late 1950s.

New book reignites British royal race row

LONDON — Almost three years after Prince Harry and his wife Meghan’s interview with Oprah Winfrey sent shockwaves through the British monarchy, their most sensational claim which provoked a royal race row has been reignited by a new book.

In the dramatic interview with the US talk show host in 2021, Meghan, whose mother is Black and father is white, said while she was pregnant with son Archie there were “concerns and conversations about how dark his skin might be when he’s born.”

The couple declined to say which unnamed royal had made the remarks, although Winfrey later clarified it was neither the late Queen Elizabeth nor her husband Prince Philip.

The furor led Buckingham Palace to issue a statement on behalf of the queen which pointedly said “recollections may vary,” and a denial the family were racist from now heir Prince William. Harry, the younger son of King Charles, said in a subsequent 2023 TV interview, neither he nor Meghan had accused anyone in their family of racism.

But a new book about the royals written by journalist Omid Scobie has brought the issue back to the fore, making front page news again Britain this week.

In his book Endgame, Scobie says the names of two figures involved were identified in private letters between Charles and Meghan following the Winfrey interview, but said he was prevented from naming them by UK laws.

However, on Tuesday, Xander Uitgevers, the Dutch publisher said it had temporarily removed the book from sale because of “an error” in the country’s edition in which the two royals were indeed named, although that particular paragraph does not appear at all in the English version.

“I edited and wrote the English version, there’s never been a version that I produced that has names in it,” Scobie told Dutch broadcaster RTL Boulevard this week.

KING IN DUBAI
In his TalkTV show on Wednesday, the royals allegedly involved were also named by British broadcaster Piers Morgan, a vocal critic of Harry and Meghan.

He described Scobie, who earlier this year referred to the former tabloid editor when he appeared as a witness for Harry in a phone-hacking court case, as the couple’s “lickspittle.”

Charles, who has campaigned on climate change and sustainability for more than 50 years, made no reference to the row when he kicked off a visit to Dubai where he is meeting world leaders and will be delivering the opening address to the COP 28 U.N. summit.

“I’m all right thank you very much, just about, having had a rather ancient birthday recently, recovering from the shock of that,” the monarch, who celebrated his 75th birthday earlier this month, joked when he met Nigeria’s President Bola Tinubu.

A spokesperson for Harry and Meghan declined to comment.

Neither Buckingham Palace nor any of the royal family’s offices have commented on the book, but the Daily Mail said officials were considering all options, including legal action.

“However, the key thing for them is his majesty responding in the most eloquent way possible by getting on with business and not letting it distract from vastly more important issues regarding the future on the planet and bilaterals with other world leaders,” the paper quoted an unnamed source as saying. — Reuters

Luxury residential price growth in Manila now faster than in Dubai

A VIEW of buildings in Makati City. — PHILIPPINE STAR/MICHAEL VARCAS

PRICES of luxury residential units in Metro Manila grew by 21.2% this year, the fastest in the world, according to Knight Frank’s Prime Global Cities Index.

Rick Santos, chairman and chief executive officer of Santos Knight Frank, said investor confidence in the Philippines under the Marcos administration has lifted the real estate market despite high interest rates.

“The luxury residential space is one of several sectors where we’re seeing encouraging market activity. Pent-up demand for prime properties, the return of the residential leasing market, and the tight supply of developments have contributed to significant price appreciation especially in central business districts,” he said in a statement.

Knight Frank’s Prime Global Cities Index showed prime residential prices in Metro Manila surged by 21.2% year on year, and by 19% in the last six months.

This is faster than Dubai, where luxury residential prices increased by 15.9% in the 12-month period and 12.3% in the six-month period.

In Shanghai, prices jumped 10.4% in the 12-month period while prices went up by 6.5% in Mumbai and 5.5% in Madrid.

Prices have not been dampened by the Philippine central bank’s aggressive tightening campaign that brought interest rates to a 16-year high.

According to Santos Knight Frank data, the most expensive residential project in Metro Manila is Banyan Tree Residences by TransAsia at P800,000 per square meter (sq.m.). Balmori Suites by Rockwell Land is the second-most expensive at P600,000 per sq.m.

At the same time, Santos Knight Frank said local buyers are expected to continue looking for second homes, mostly in leisure properties in Metro Luzon.

As of the third quarter, 41% of condominium units sold in Luzon were leisure developments mostly in tourist destinations such as Tagaytay, and Batangas.

The remaining 59% were traditional condominium units in urban areas in Luzon.

Government partially awards Treasury bills

STOCK PHOTO | Image by RJ Joquico from Unsplash

THE GOVERNMENT made a partial award of the Treasury bills (T-bills) it offered on Monday as demand dropped from the previous week’s level, causing rates to rise.

The Bureau of the Treasury (BTr) raised P9.685 billion via the T-bills it offered on Monday, short of the P10-billion program, even as total bids reached P34.732 billion or more than three times the amount on the auction block.

Broken down, the Treasury made a P4.2-billion award of the 91-day T-bills, above the P3-billion program, as tenders for the tenor reached P15.512 billion. The three-month paper was quoted at an average rate of 4.996%, 24.3 basis points (bps) above the 4.753% seen last week. Accepted rates ranged from 4.875% to 5.073%.

Meanwhile, the government raised just P2.5 billion through the 182-day securities, short of the planned P3 billion, despite bids for the paper reaching P9.26 billion. The average rate for the six-month T-bill stood at 5.267%, up by 8.6 bps from the 5.181% quoted for a full award last week, with accepted yields ranging from 5.175% to 5.5%.

Lastly, the BTr borrowed P2.985 billion via the 364-day debt papers, below the P4-billion program, even as bids reached P9.96 billion. The average rate of the one-year T-bill slipped by 0.5 bp to 5.732% from 5.727% fetched for last week’s full award. Accepted rates were from 5.5% to 5.988%.

At the secondary market on Monday, the 91-, 182-, and 364-day T-bills were quoted at 5.3645%, 5.6329%, and 5.7766%, respectively, based on PHP BVAL Reference Rates data published on the Philippine Dealing System’s website.

T-bill yields corrected higher on Monday following their plunge last week amid strong demand, with this week’s auction bids also normalizing, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The higher rates for this week reflected investors’ demand for better yields after T-bill rates declined substantially last week,” a trader added in an e-mail.

Last week, total bids for the BTr’s P10-billion offer reached P72.215 billion. The government made a full award of the papers on the auction block, with rates for the 91-, 182-, and 364-day papers last week falling by 137 bps, 133.2 bps, and 83.3 bps, respectively.

T-bill rates rose ahead of the release of November inflation data, Mr. Ricafort added.

A BusinessWorld poll of 15 analysts conducted last week yielded a median estimate of 4.4% for November headline inflation, hitting the midpoint of the Bangko Sentral ng Pilipinas’ (BSP) 4% to 4.8% forecast for the month.

If realized, last month’s consumer price index would be slower than 4.9% in October and 8% seen last year but would mark the 20th straight month of inflation breaching the BSP’s 2-4% target.

The Philippine Statistics Authority will release the November inflation report on Tuesday.

“The partial award may have to do with the recent debut $1-billion Sukuk bonds and P15-billion maiden one-year tokenized Treasury bonds, both of which gave the ability to reject relatively higher bid yields,” Mr. Ricafort said.

Last week, the government raised $1 billion from its maiden sale of 5.5-year Sukuk bonds. The notes, which will have a Ijara and Wakala structure with a Commodity Murabaha aspect, were priced at 5.045%.

Meanwhile, the BTr last month raised P15 billion through the country’s first-ever offering of tokenized bonds, with demand reaching P31.426 billion or more than three times the target issue size of P10 billion. The bonds were priced at 6.5%.

On Tuesday, the government will offer P20 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and eight months.

The BTr wants to raise P60 billion from the domestic market this month, or P20 billion via T-bills and P40 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy

Ayala group’s Rene Almendras named MAP president for 2024

THE Management Association of the Philippines (MAP) has named Ayala-led AC Logistics Holdings Corp. President and Chief Executive Officer Jose Rene D. Almendras as its president for 2024.

“Mr. Almendras has vast experience in the private and the public sectors,” the business group said in a statement on Monday.

Aside from his role at AC Logistics, Mr. Almendras also serves as the public affairs group head and senior managing director of Ayala Corp.

He also serves as a board director in other Ayala group companies, including AC Energy and Infrastructure, Light Rail Manila Holdings, Inc., Entrego, and Air21 Holdings, Inc.

He also spent 13 years with the Citibank group, during which he attained his first chief executive officer position as president of City Savings Bank.

MAP said that Mr. Almendras was recognized by the World Economic Forum as a sustainability champion for his efforts as president of Manila Water Company, Inc (MWCI). 

“During his stint as its president and chief operating officer, MWCI received multiple awards and was recognized as one of the Best Managed Companies in Asia, Best in Corporate Governance, one of the Greenest Companies in the Philippines, and hailed as the world’s Most Efficient Water Company,” the business group added. 

In terms of public service, Mr. Almendras has served as Secretary of Energy, Cabinet Secretary, and Secretary of Foreign Affairs.

In June 2016, he was awarded the Order of Lakandula, Rank of Gold Cross Bayani, a Presidential award and the highest honor given to a civilian by the government of the Philippines.

“The award was President Benigno Aquino III’s recognition of his exemplary service during his administration,” MAP said.

The other members of the MAP 2024 Board of Governors are KPMG R.G. Manabat & Co. Vice Chair and Chief Operating Officer Emmanuel P. Bonoan as vice president; HSBC Philippines Treasurer and Head of Markets and Securities Services Maria Corazon D. Purisima as treasurer; GCash President and Chief Executive Officer Martha M. Sazon as assistant treasurer; and CEO Advisers, Inc. Partner Karen V. Batungbacal as secretary.

Other MAP governors are Du-Baladad and Associates Founding Partner and Chief Executive Officer Benedicta Du-Baladad, Center For Excellence In Governance Vice Chair Rex C. Drilon II, PLDT Inc. President and Chief Executive Officer Alfredo S. Panlilio, and P&A Grant Thornton Founder Benjamin R. Punongbayan. — Justine Irish DP. Tabile

Stabilizing growth via peace and order and free trade

(Part 3)

This piece will cover three topics, so we go straight to them.

First is the growth of the top 40 largest economies.

Here is an update in GDP growth for Q1-Q3 of 2023, taking off from part 2 of this series, “Stabilizing growth of the fastest growing major economy in the world” (Nov. 14). I looked at the top 40 largest countries in terms of GDP size in 2022 at purchasing power parity (PPP) values. Four countries were not included in my analysis — Pakistan and Bangladesh (there is no quarterly data), and the United Arab Emirates and Egypt (which released Q1 data only). So I looked at 36 economies.

The Philippines, with 5.6% growth in Q1-Q3, is now the second-fastest growing economy in the top 40 largest economies in the world next to India. The economies which are contracting are Ireland, Sweden, Germany, and Poland (see Table 1).

Again, kudos to this administration’s economic team, the entrepreneurs and workers of the country, and overseas Filipino workers who kept working despite a worsening global economic environment, despite the negativism and brickbats of the naysayers.

BARMM INCOME AND THE MARAWI BOMBING
The poorest region in the country in terms of gross regional domestic product (GRDP) is the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Last Sunday, Dec. 3, a morning mass was bombed at the Mindanao State University (MSU) gym and four young people were killed and 50 others injured. The photos I saw were gruesome. I felt bad and weak because I kept writing about economic growth in this column and we see heinous crimes and killing like this which have outright negative impact on investor and consumer confidence.

Budget Secretary Amenah F. Pangandaman, whose family comes from Marawi City and who had just returned from a trip to South Korea that morning, immediately made this statement:

“As Chairperson for the National Government of the Inter-governmental Relations Board with the BARMM, this is a great setback to our efforts for lasting peace. As a daughter of Mindanao, it breaks my heart to see my hometown of Marawi as the setting of the explosion. I extend my heartfelt condolences to the families of the victims of the bombing. Rest assured I will be working very hard with the corresponding officials — both from the National Government and BARMM — to ensure peace and security especially in this area of Mindanao is restored.”

I send my condolences to the families of the dead. I still feel weak remembering the photos of the victims. And I feel deep anger at the perpetrators of the crime. Marawi City has not recovered yet from 2017’s “flatten the city”-all-out war between the Islamic militants and the Duterte administration.

The BARMM regional GDP of P280 billion in 2022 is even lower than the regional income of the Cordillera Administrative Region (CAR). Compared to the income of the top four largest regions, it makes only 1/22 of what the National Capital Region (NCR) has, 1/10 of Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon), 1/8 of Central Luzon, and 1/6 of Central Visayas (see Table 2).

The BARMM in general, and Lanao del Sur including Marawi City in particular, need more peace and order to attract more investors and job creators. With such a low regional economic base, sustained annual growth of 8% or higher is possible — provided that peace and order prevail, the perpetrators of the Marawi bombing are caught, and potential troublemakers in the region are convinced to drop whatever evil plans they have.

EARTHQUAKES AND FREE TRADE IN CONSTRUCTION MATERIALS
Also in Mindanao, a strong earthquake hit last Saturday, killing four people and injuring many others.

The Philippines experiences an average of about 30 earthquakes every day, 365 days a year, although we do not feel most of them and only instruments can detect them because they are weak (intensity 3 or lower), are very brief, or they occur under the sea. Last Sunday alone, the US Geological Survey listed 83 earthquakes in the Philippines with magnitudes of 4.5 to 6.9. If earthquakes with magnitudes of 4.4 or weaker were counted, there may have been 200+ that day alone.

With this high frequency of earth movement in the Philippines, people should build strong houses, buildings, and gyms. People should not scrimp in the use of steel because prices are high. Major construction materials like steel and cement should be cheap, not expensive, through more domestic production plus the abolition or the drastic reduction of import tariffs and other taxes.

Free trade in construction materials is pro-business and pro-poor. Cement and steel protectionism is fatal. Saving more lives and properties should prevail over protectionist corporate and political interests.

See also previous pieces in this column on cement free trade: “Cement tariff and the consumers” (Jan. 31, 2022), and “Inflation, cement importation, and electricity concerns” (June 13, 2022).

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers.

minimalgovernment@gmail.com

All of Us Strangers dominates British Independent Film Awards

LONDON — Drama All of Us Strangers was the big winner at the British Independent Film Awards (BIFA) on Sunday, taking home seven awards, including best British independent film and best director.

Actors and makers of some of this year’s most talked-about movies, including Jodie Comer and Celine Song, attended the gala ceremony in London.

All of Us Strangers, a mystery drama about love and loss, stars Andrew Scott as Adam, a writer living in a near-empty London high-rise. Adam’s loneliness is alleviated when he meets Harry, one of his few neighbors, and visits his childhood home to find his parents living there, despite their death decades earlier, as if no time had passed.

Directed by Andrew Haigh, the movie is based on Taichi Yamada’s 1987 novel Strangers and also stars Paul Mescal as Harry and Claire Foy and Jamie Bell as Adam’s parents.

“It has this very audacious idea at its center, which is: what might you say to your parents after their death that you didn’t get to say to them before they died. And it’s very beautiful and it’s got a metaphysical aspect to it, but it’s also just about love. It’s a movie about love and we’re so proud of it,” Scott told Reuters on the red carpet.

How to Have Sex star Mia McKenna-Bruce scooped the best lead performance prize for her role in the film, while her co-star Shaun Thomas shared the best supporting performance award with Mescal. The provocatively titled film follows three British teen girls who go on holiday with the aim of drinking, clubbing, and hooking up.

“It’s a dream come true just to be in this room, let alone have this in my hands. It’s just insane, I can’t believe it,” McKenna-Bruce, 26, said.

Actors George Mackay and Nathan Stewart-Jarrett picked up the best joint lead performance award for Femme, an intense revenge porn thriller-tragedy by Sam H. Freeman and Ng Choon Ping.

French filmmaker Justine Triet’s Palme d’Or-winning movie Anatomy of a Fall was named best international independent film. — Reuters

NREA to introduce new officers

RED J. ROSALES, president of the National Real Estate Association

THE National Real Estate Association (NREA) will introduce its new officers at a meeting on Dec. 7.

NREA’s new national president Red J. Rosales will deliver speech outlining his plans and programs for 2024.

Aside from Mr. Rosales, the association’s officers-elect for 2024 include Imelda C. Magtoto, board chair; Ruth Marie Atienza, board vice chair; Ma. Lorena Sales, executive vice-president; Jovi Francis Tupaz, VP-internal; Ador Tolentino, VP-external; Zeny Fruto, VP-chapters; Loudette Carlos, secretary general; Nicole Choa, treasurer; Jeffrey Bongat, auditor; and Christian Mulingbayan, PRO.

Rafael M. Fajardo, board member of the Professional Regulatory Board for Real Estate Services, will be the special guest and resource speaker at the meeting.

The meeting will be held from 11 a.m. to 2 p.m. at the Makati Sports Club in Salcedo Village, Makati City.

UnionBank raises P18.168B from dual-tranche bonds

BW FILE PHOTO

UNION BANK of the Philippines, Inc. (UnionBank) has raised P18.168 billion from its offerings of 1.5-year and three-year senior bonds held last month, its largest peso-denominated issuance under its current fundraising program.

“Strong demand” from both private and public investors led the listed bank to upsize its offer from the initial combined issue size of at least P2 billion, or P1 billion for each tenor, the Aboitiz-led bank said in a disclosure to the local bourse on Monday.

Broken down, UnionBank raised P10.3385 billion via the 1.5-year senior fixed-rate Series F bonds due 2025 with an interest rate of 6.5625% per annum.

Meanwhile, the lender raised P7.8295 billion through the senior fixed-rate three-year Series G bonds due 2026 that carry a yield of 6.68% per year.

The amount raised included proceeds from UnionBank’s bond exchange offer, under which it allowed holders of its fixed-rate Series C bonds maturing on Dec. 9 to sell them back to the lender in exchange for their subscription to any of the new bonds.

“Fueled by our passion to address the needs of our customers, we introduced the bond exchange program to provide a reinvestment option for existing investors,” UnionBank Treasurer and Head of Global Markets Johnson L. Sia said.

“We are grateful for the support of our investors as their confidence in the bank allowed us to raise our largest peso bond issuance to date,” Mr. Sia added.

The papers are part of UnionBank’s P50-billion bond program. They will be issued, settled, and listed on the Philippine Dealing & Exchange Corp. on Tuesday.

ING Bank N.V. Manila Branch and Standard Chartered Bank were the joint lead arrangers and bookrunners for the transaction. They were also the selling agents for the offer, along with UnionBank.

UnionBank saw its net income drop by 58.99% year on year to P1.65 billion in the third quarter as the bank set aside more loan loss provisions versus the prior year.

The bank’s shares declined by 25 centavos or 0.44% to close at P56.50 apiece on Monday. — AMCS

Taiwan’s Wellell looks to forge PHL partnerships for medical mattresses

By Beatriz Marie D. Cruz, Reporter

TAIPEI — Wellell, Inc., a Taiwan-based medical solutions provider, is seeking Philippine distributors for its new adjustable hospital mattresses, designed to protect bedridden patients from injuries and reduce nurses’ workload, a company official said at the weekend.

“We have been trying to attract a distribution partner who has been doing business with Philippine hospitals, and we would like to [partner] with them,” Wellell Project Director Gustavo Kao told BusinessWorld on the sidelines of the Healthcare+ Expo in Taipei.

Since its founding in the ’90s, Wellell has been a supplier of patient-care mattresses in several countries, including the Philippines.

He noted the company’s latest versions of mattresses were produced in consultation with caregivers, who often experience professional injuries such as back pain after assisting bed-ridden patients in switching positions every two to three hours.

Patients may also suffer pressure injuries from laying in bed all day, he said.

“[An] efficient way to help the caregiver [change a patient’s position] easily and, at the same time, make sure that the patient laying on the mattress doesn’t develop any pressure injuries is to have a very comfortable area to lie upon,” he said. 

The mattress, the company said, is composed of “air cells” that are inflated, deflated, and adjusted according to changes in a patient’s lying position.

Patients lying on an Optima Prime mattress can easily reposition their heads amid tubes connected to them, as well as protect themselves from facial injuries, Mr. Kao said.

He added that lying in a prone position would help coronavirus patients with acute pneumonia, for example, whose lungs had accumulated liquid.

“During the COVID time, you see a lot of patients in a prone position because [in] that position, they can breathe easily,” he said.

 Using the Optima Prone mattress could trim down the number of nurses needed to assist a patient, he said.

 On the other hand, the Optima Turn mattress — also called the rotating mattress — automates the 30° turn and helps patients angle their bodies in lateral positions.

 “According to the literature, the 30° is the best-optimized angle [for patients,]” Mr. Kao said.

 The mattresses have been sold at hospitals in Taiwan, Australia, New Zealand, Thailand, and China.

 “We try to stand in their [caregivers’] position and discuss what kind of product can help reduce their pressure reduce their [need for] attention [to patients…] so that’s why we developed two very innovative mattresses,” Mr. Kao said.

 He added that the costs of the mattresses could be more easily handled by hospitals, which may still opt for rentals to cut costs.

 Recognizing that their existing market in the Philippines is on at-home patient care mattresses, Wellell is also looking into manufacturing mattresses that are cheaper and home-based.

 “We will, in the long term, maybe design another more economical mattress but right now because hospitals has a huge demand [for our new mattresses,] we’ll try and launch this first,” he said.

In the Philippines, hospital bed sufficiency is still a “widespread challenge,” according to a 2022 study by the Philippine Institute for Development Studies, as  27 provinces have less than 0.5 in median hospital bed capacity for every population of 1,000.

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