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DoubleDragon taps visa advisors for buyers of Hotel101-Madrid units

DOUBLEDRAGON CORP. has tapped advisory service providers to process the residency application of non-European unit buyers of its hotel project in Spain.

In a press release on Thursday, the company said its subsidiary, Hotel101 Global Pte. Ltd., signed master service agreements with Orience, PSI Consultants, and L&L RSM Law as exclusive advisors.

The agreements, signed on July 20, will help buyers in their residency application via investment option when they buy at least three units in Hotel101’s first European project — Hotel101-Madrid in Spain’s Valdebebas.

“It will be optional for the Hotel101 unit buyers if they wanted to apply for a golden visa with their purchase of the Hotel101 units,” said Edgar J. Sia II, chairman of DoubleDragon and Hotel101 Global.

Known as the Spain investor visa, the “golden visa” is a residence permit issued to non-Europeans who invest in Spain such as buying a real estate asset worth at least 500,000 euros.

“As we will be building a fresh inventory of units, it will not reduce the existing housing inventory in Spain, and will add economic activity through the purchase of land, salaries of construction team and the long-term recurring taxes that this project will bring in,” said Mr. Sia.

“We are excited for a long-term business endeavor, as Spain and Philippines have a very long history of cultural relationship and would bring long-term benefits to both Spain and the Philippines,” he added.

In the media release, DoubleDragon said visa applications are for evaluation and approval by Spanish authorities, at their discretion. But it said the purchase of Hotel101 units may be used by the foreign buyer to comply with the investment requirement.

The company placed the processing and advisory fee at about 6,000 euros which will be free for those who will buy three Hotel101 units in Madrid during the pre-selling period until Dec. 31, 2023, “or until the units are fully sold out, whichever comes first.”

DoubleDragon targets Hotel101-Madrid to become one of the top 5 largest hotels in Madrid. Hotel101 Global is the company’s subsidiary for its “worldwide hotel expansion.”

“Hotel101-Madrid is set to be the very first homegrown Filipino hotel chain to enter Spain,” it said.

DoubleDragon said its hotel venture is poised to “become world-class in all standards and create job opportunities to Filipinos who reside in the Philippines or abroad, and bring a pinch of pride and honor to each and every Filipino from anywhere around the world where Hotel101 will eventually locate and operate.”

It said the hotel is a three-minute walk to the Valdebebas Train Station, a four-minute walk to the IFEMA convention complex, a five-minute walk to Real Madrid Sports Complex, and about seven minutes away from the new Madrid Barajas International Airport.

DoubleDragon aims to list Hotel101 Global in the US and expects to derive more than 95% of its revenues outside of the Philippines.

On Thursday, DoubleDragon advanced by 0.67% or five centavos to P7.50 each share at the stock market.

Korean thriller The Killing Vote to premiere on Prime Video

SOUTH KOREAN drama The Killing Vote will be available on Prime Video worldwide starting Aug. 10.

Starring Park Hae-jin, Park Sung-woong, and Lim Ji-yeon, the K-drama is based on a popular webtoon that explores the meaning of justice and features a nationwide death penalty vote against vicious criminals.

The first two episodes of this 12-part series will land Aug. 12, with one weekly episode to follow every Thursday.

The story highlights a mysterious figure who carries out the death penalty according to the results of the vote, and the police who are pursuing them.

Prime Video is available in the Philippines for P149 per month.

The Ripple XRP verdict: Implications for businesses and investors

QUOTEINSPECTOR.COM

The recent verdict by Judge Analisa Torres of the US District Court of the Southern District of New York regarding Ripple’s XRP token sales has sparked both controversy and optimism within the cryptocurrency community. While the court deemed XRP a security for institutional sales, it upheld that the token was not a security for sales on public cryptocurrency exchanges. As a representative of the Blockchain Council of the Philippines, I see this ruling as a crucial step toward bringing clarity to the regulatory landscape of digital currencies.

The court’s decision highlights the significance of distinguishing between institutional and public sales regarding security classification. For sales to sophisticated investors, who understood Ripple’s speculative value proposition for XRP and its potential for profits, the court ruled that XRP qualified as an investment contract under federal securities law. This ruling reinforces the need for careful consideration and compliance with regulatory requirements in dealings with institutional investors.

On the other hand, for sales on digital asset exchanges to retail investors, where reasonable profit expectations were not tied to Ripple’s efforts, the court ruled that XRP did not qualify as a security. This distinction acknowledges the role of retail investors in the cryptocurrency market and offers much-needed clarity for token issuers and users.

At the Blockchain Council of the Philippines, we wholeheartedly applaud the court’s decision that Ripple Labs, Inc. did not violate federal securities law with its XRP token sales on public cryptocurrency exchanges. This landmark ruling sets a vital precedent for understanding the nature of certain digital assets, confirming that XRP sales on these exchanges were not offers of securities. The ruling brings clarity to the complex regulatory landscape of digital currencies, allowing businesses and investors to operate with a more secure and transparent understanding of the rules.

Moreover, the decision opens up an opportunity for Ripple and other digital currency companies to reassess their marketing strategies and align them with regulatory requirements. It serves as a wake-up call for the industry to adopt more cautious practices when dealing with institutional investors and institutional sales.

The positive sentiment surrounding this ruling within the crypto community reflects the predominant presence of retail investors who largely engage with the non-security side of the verdict. Asking around from our friends in the industry, they share their sentiments on this ruling.

Nichel Gaba, CEO of PDAX, welcomes the court’s decision, saying: “We believe this decision will usher in even more innovation around crypto and securities. While, clearly, the industry needs effective regulation to protect users, we look forward to seeing regulations develop in a manner that does not stifle innovation.”

Ray Babst, CEO of Direct Agent, says: “The July 13 ruling finally puts clarity on token issuance as an investment and as a utility. This will pave the way for guidelines on the issuance of stable tokens that can be used for remittances by our OFWs.”

Jay Ricky Villarante, chairman and CEO of Moneybees, says: “We at Moneybees believe that the outcome of the Ripple SEC case is a positive development that provides much-needed clarity and opens the opportunity to unlock the full potential of cryptocurrencies and blockchain technology. The decision can also serve as a guide for Philippine government agencies, including BSP and SEC, on working together with the blockchain companies — specifically VASPs — in their efforts to exercise more effective oversight while encouraging innovation in the industry.” 

The recent court ruling on XRP sales highlights the critical need to understand the regulatory implications for both institutional and public transactions. This distinction is crucial for businesses, investors, and regulators to strike a harmonious balance between driving innovation and safeguarding the interests of all involved in the dynamic realm of digital assets.

This verdict marks a significant step towards regulatory clarity by differentiating between institutional and public sales. Now, the responsibility lies with industry stakeholders to establish a comprehensive regulatory framework that fosters growth, innovation, and security in the ever-evolving landscape of cryptocurrencies and blockchain technology.

 

Dr. Donald Lim is the founding president of the Blockchain Association of the Philippines and the lead convenor of the Philippine Blockchain Week. He is also the Asian anchor of FintechTV.

AI-powered Homeqube aims to disrupt homebuilding

A tech firm using blockchain and artificial intelligence called Homeqube is aiming to disrupt the homebuilding industry.

Jose Paolo Calma, former chief executive officer of the Multi-Development and Construction Corp. (MDCC), has launched Homeqube, which aims to enable users to design their dream homes through its network of professionals.

MDCC is a multi-design and construction company in the Philippines whose clients include Okada Manila, Shangri-La Boracay, and Novotel Manila Interiors.

“Homeqube is designed to solve persistent problems within the industry, such as long lead times, staggering inefficiencies in the design process, the overreliance on human labor, unsustainable raw materials, and not to mention the huge gap between e-commerce and the sector,” Mr. Calma said in a statement on Thursday.

The platform will feature user-centric controls where various combinations can be created from basic system parts. These will allow users to explore cost, lifestyle and mobility metrics, which will help them make informed home design and building decisions.

The platform will also include optical character recognition, which will allow automatic lot area plotting, agile design and auto-generation of essential documents before move-in.

Homeqube will also have a token and gamification approach, which will allow users to earn tokens every time their created art and design are recognized and accepted by the system.

These designs could be later on sold by the users as non-fungible tokens (NFT) once they become community members.

In turn, the platform will also feature a Solana-based launchpad and NFT marketplace for homebuilding needs, which makes it the first NFT marketplace that accepts a wide array of 3D printing files.

“Drawing on the principles of strategic information architecture and the power of peer collaboration, Homeqube revolutionizes the industry,” said Mr. Calma.

“There’s no need for traditional e-commerce ‘add to cart’ processes. With our platform, we introduce an innovative approach where commercial satisfaction can be achieved through engaging and interactive experiences. We’re also paving the way for seamless fiat ramping,” he added. — Justine Irish D. Tabile

Business groups balk at proposed P150 wage hike

PHILIPPINE STAR/ANDY G. ZAPATA JR.

BUSINESS GROUPS are asking the government to reconsider a proposed P150 wage hike, saying their companies need to remain competitive while being allowed time to recover.

“The industry was okay with the P40 approved increase but P150 seems high. That’s a 35% increase in wages, further increasing operating costs and reducing industry competitiveness,” Semiconductor and Electronics Industries in the Philippines Foundation, Inc. President Danilo C. Lachica said in a Viber message.

Senate President Juan Miguel F. Zubiri has been pushing to legislate a P150 wage hike for all daily wage earners.

The National Capital Region Tripartite Wages and Productivity Board approved last month a P40 increase in the minimum wage for workers in Metro Manila, which brought the floor on the daily wage to P610 from P570.

Ebb Hinchliffe, American Chamber of Commerce of the Philippines, Inc. executive director, said in a Viber message that the regional tripartite wage and productivity boards should determine wage level, not legislators.

“We suggest letting the tripartite decide that. Through this existing mechanism — where government, workers, and employers are amply represented — the needs of workers, the capability of enterprises, and varying conditions across industries and regions can be carefully balanced,” Mr. Hinchliffe said.  

Rosemarie B. Ong, Philippine Retailers Association chair, said in a Viber message that the proposal is “not in the best interest of the economy … due to the potential inflationary effects it may have. While we understand the concerns about declining purchasing power caused by inflation and the desire to support workers, it is crucial to consider the broader impact of such a measure.”  

Ms. Ong warned that such legislation could force some businesses to close.

“Approval of the wage increase could lead to difficult decisions for employers, such as adjusting prices, reducing the workforce, or even closing down. Only a small percentage of large firms have the financial capacity to accommodate the wage increase,” Ms. Ong said.  

“Rising inflation has already strained businesses, particularly micro, small, and medium enterprises (MSMEs), which have faced significant challenges due to the pandemic and may still be in the process of recovery,” she added.  

Inflation slowed to 5.4% in June from the 6.1% posted in May due to a slowdown in the increase of food, transport, and utility prices.  

Philippine Amalgamated Supermarkets Association President Steven T. Cua said in a Viber message that the proposed wage hike would be challenging for supermarkets.

“(Supermarkets) rely on the manpower support of suppliers’ merchandisers, promo- or push-girls and coordinators to help us monitor movement of stock on a daily basis. If wages keep increasing by leaps and bounds, manufacturers and distributors will not hesitate to cut their budget for supplemental manpower,” Mr. Cua said.  

“This will result in smaller chains fending for themselves in terms of merchandising these products which normally are market leaders for their categories; thus, basic necessities and prime commodities for shoppers. This will consequentially lead to less organized retailing, (less efficient) distribution and probably the shutdown of the weakest links in the food retail supply chain,” he added.  

Mr. Cua proposed staggered increases until 2025 if the measure becomes law.

“Best is to increase wages in agreeable installments over a period of time, so employers go slow on lay-offs and are amply prepared for additional costs given the certainty of the time intervals,” Mr. Cua said. — Revin Mikhael D. Ochave

Linya-Linya Land 2023 returns

LINYA-LINYA Land (LLL) marks a comeback with a lineup featuring some of the most notable names in music, comedy, and art.

Filipino singer-songwriters and bands Ebe Dancel, Johnoy Danao, Nica Del Rosario, Cheats, Autotelic, and DJ Ayel lead the bill, alongside standup comedians Victor Anastacio, Nonong Ballinan, GB Labrador, James Caraan, and Jeleen Cubillas.

Completing the non-performing headliners are comic artists like Manix Abrera, Rob Cham, and Pol Medina Jr., whose work will be exhibited at the art market. Muralists/illustrators Panch Alvarez and AG Saño will also bring uniquely infused art experiences to life.

LLL 2023 also offers a dedicated space for arts and crafts, side activities, fair-themed games, and lifestyle/wellness booth.

It will be held on Aug. 26 at 123 Block in Mandaluyong City, from 3 p.m. onwards.

This event is presented by Linya-Linya and GNN Entertainment Productions. Tickets are available online at P900 bit.ly/linyalinyaland23 for Early Bird Regular (includes a raffle stub and general admission) and P1700 for Early Bird VIP (includes general admission, a raffle stub, a swag bag, and a limited-edition poster). Physical tickets will be sold in select Linya-Linya stores in Metro Manila. For more information about the event, check out the social media pages of Linya-Linya.

The Earth is dancing too close to a temperature tipping point

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BETWEEN this summer’s biblical floods, apocalyptic fires and life-threatening heat domes, people are starting to wonder whether we’ve lurched over some sort of climate tipping point. Climate scientists and ecologists who study tipping points say what we’re seeing are merely extreme events amplified by global warming. But they’ve been warning about the risk of climate tipping points for years. Now people are listening.

Research published last year in Science suggests the risk of a global tipping point that triggers accelerated climate warming starts to become significant once average worldwide temperatures rise 1.5C above pre-industrial levels. That’s likely to happen in the 2030s.

In popular usage, tipping points refer to anything that changes suddenly. In science, it usually refers to a straw-that-broke-the-camel’s-back phenomenon, where a small change in input makes a big difference in outcome.

When climate scientists talk about tipping points, they’re looking at a shift in feedback loops — the disruption of stabilizing feedback loops and the start of new ones that amplify change. Physicists refer to this as a positive feedback loop, but from our standpoint it won’t be beneficial.

Scientists have documented dozens of regional and local climate tipping points. And long ago, the Earth experienced planet-wide tipping points when the climate whiplashed from an ice-free hothouse to a snowball and back again.

Looking at some of that long-term history for an Earth Day column a few years ago, I talked to scientists who marveled that Earth has been habitable for almost its entire existence — nearly 4 billion years — thanks to stabilizing feedback loops. Even so, for most of that history, there was no complex life — only bacteria. And sudden shifts in climactic feedback loops did roil the planet. After the advent of complex life, some of these led to mass death and extinction.

And one more reason to be concerned today: The rate of change we’re imposing on the planet is “geologically unusual,” as planetary scientist Andy Knoll told me then.

What scientists are most worried about now are regional changes that tip into global catastrophes. Timothy Lenton, chair in climate change and earth system science at the University of Exeter, refers to “tipping elements” — systems of glaciers, forests and coral reefs whose collapse could trigger a form of global warming that feeds on itself. He and colleagues first identified a number of these in a 2008 study, but he said they’re generating much more interest now.

He also led a more recent review of studies highlighting the tipping elements that pose the most immediate threat — the destruction of the West Antarctic and Greenland ice sheets, the thawing of the permafrost and the destruction of the world’s coral reefs.

He said the extreme events making the news this summer might represent an early warning sign he calls flickering — a brief visit to the other side of a tipping point. “A complex system can sometimes start to sample a different regime or state before it takes a more permanent shift into that state,” he said. “I hope it’s not the case.”

The tipping point phenomenon has led to the collapse of local ecologies before, said Simon Willcock, an interdisciplinary researcher at Rothamsted Research in the UK. One good example is the Sahara Desert, which has gone from lush to dry in cycles, the most recent one possibly helped by humans.

In a paper published last month in Nature Sustainability, he and colleagues created complex models of ecosystem collapse, using two examples where tipping points happened in relatively recent history — the Chilika Lagoon in India, where fish populations collapsed, and Easter Island, where deforestation and other environmental stress led to extinction of the local human population.

What he found, he said, was that ecological tipping points can happen much faster than previous models had shown, once they took into account multiple stresses — not just temperature changes, but factors such as overgrazing, deforestation, agricultural runoff and overfishing.

Natural fluctuations — noise — also make tipping points more likely. Think of standing on the edge of a cliff, he said, with random gusts buffeting you toward and away from the brink. And consider someone nearby in still air on a similar cliff. “Who’s going to fall off the cliff first?” he asked. “It’s obvious, right?”

He also worries that too much clearing of the Amazon might dry things out just enough to start a massive fire. That would make the region drier, killing more trees, fueling more fire and lofting more carbon into the atmosphere, making the climate warmer and drier, and accelerating forest loss in a vicious cycle.

Our civilization is delicate — our dense population centers dependent on agriculture and lots of clean water. Although humanity survived shifts from ice ages to warm interglacial periods, our species has enjoyed an unusually quiescent period for the last 12,000 years, the point when we settled down and started farming.

A climate tipping point could make life a lot harder for our species. We’re not yet over the cliff, but we’re dancing dangerously near the edge.

BLOOMBERG OPINION

Asiana Airlines marks its first flight to Bohol ahead of twice-weekly schedule

BOHOL-PANGLAO International Airport welcomed Korean carrier Asiana Airlines’ maiden flight on Thursday, said the Civil Aviation Authority of the Philippines (CAAP).

Anghelo B. Ibañez, acting airport manager of Bohol Panglao International Airport, said the airline, which carried 177 passengers from Incheon, South Korea, will be having a twice-weekly flight to Bohol.

“Asiana Airlines will fly to Bohol every Wednesday and Saturday and will aim to ramp up direct flights to Bohol in the near future,” Mr. Ibañez said in a statement.

The entry of the airline is on track with the continued increase in the number of flights at Bohol Panglao International Airport, according to CAAP.

It said the continued increase in the number of flights at the airport particularly for international flights “signifies the increase in demand for passengers and tourists visiting the province which will eventually result in a boost in economic activities.” 

Before the entry of Asiana Airlines, Bohol-Panglao International Airport caters to six international commercial airlines, which are Philippine Airlines, Royal Air, Jeju Air, Air Busan, Korean Air, and Pan Pacific.

The airport is currently servicing seven domestic commercial airlines, which are AirAsia or Zest Air, CebGo, Cebu Pacific, Philippine Airlines, AirSwift, AirJuan and Royal Air.

In a separate press release, the CAAP said that it has released the notice to airmen C0669/23, which declares the closure of a portion of Dipolog Airport’s runways that is undergoing repair.

The notice will be valid from 11:45 p.m. on July 18 to 7:50 a.m. on October 19.

CAAP Spokesperson Eric B. Apolonio said Philippine Airlines will be continuing with its daily flight of Manila-Dipolog-Manila while the notice is effective as airport operations will remain normal. — Justine Irish D. Tabile

How the Philippines performed in UNDP’s women Empowerment and Gender Parity Indices

The Philippines scored 0.618 (out of 1) in the Women’s Empowerment Index (WEI) while it scored 0.772 (out of 1) in the Global Gender Parity Index (GGPI) based on the twin indices report by the United Nations Development Program (UNDP). The report, which uses data for 114 countries, expands the measures for women and girls to exercise their potential, their opportunities, and the choices available to them. For WEI, the Philippines scored below the East and Southeast Asia average of 0.661 but above world average of 0.607. Meanwhile, the country was better than the GGPI averages of both regional and global at 0.741 and 0.721, respectively.

Supreme Court affirms URC worker’s firing not commensurate to violation

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THE Supreme Court has affirmed, with modifications, a ruling that found Universal Robina Corp. (URC) liable for the illegal dismissal of a machine operator.

In a 10-page decision dated July 6 and made public on July 20, the tribunal upheld a Court of Appeals (CA) ruling that found the dismissal of Roberto De Guzman Magalang to be disproportionate since he had only stolen a bottle of ethyl alcohol worth P60.

“The court finds that the penalty of dismissal is not proportional to Roberto’s misconduct,” Associate Justice Mario V. Lopez said in the ruling.

“His preventive suspension was a sufficient penalty for the misdemeanor.”

As a machine operator, the employee did not occupy a position of trust and confidence which would greatly affect URC’s operations, the tribunal said.

Citing the Labor Code, the tribunal ruled Mr. Magalang was not entitled to back wages since his employment was terminated in good faith.

“Believing that Roberto committed serious misconduct under the Labor Code, URC acted in good faith in dismissing him. For these reasons, Roberto is not entitled to back wages,” it said, also denying him legal fees on the same basis.

The court remanded the case to the labor arbiter to determine separation pay due to the former machine operator.

The incident happened in 2015 when a security guard found a bottle of ethyl alcohol that belonged to the company in Mr. Magalang’s bag.

The machine operator was charged with criminal theft and was detained at a police station for five days, which led to a 60-day suspension imposed by URC.

URC issued a notice to Mr. Magalang informing him of his termination.

The CA had granted the former employee separation pay and back wages, instead of reinstatement due to strained relations between the parties.

The High Court said that “the penalty of dismissal is not commensurate to his infraction.” — John Victor D. Ordoñez

NCCA starts accepting application for accreditation

THE NATIONAL Commission for Culture and the Arts (NCCA) is now accepting applications for accreditation of civil society organizations, peoples’ organizations, indigenous peoples’ organizations, individuals, local government units, government agencies, state universities/colleges, and public schools.

The NCCA grants program is competitive in nature, with project proposals passing through a rigorous and confidential evaluation process based on merit.

Under its charter, the commission is authorized to give grants to artists and cultural groups dedicated to the promotion and development of Philippine arts and culture. Applications are accepted year-round, but accreditation shall be valid for a period of one year from the date of approval.

For more information, visit www.facebook.com/NCCAOfficial and www.ncca.gov.ph or email accreditation@ncca.gov.ph.

BPI posts higher income in Q2

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BANK of the Philippine Islands (BPI) saw its net income rise by 4.5% year on year in the second quarter amid an increase in revenues.

The lender’s second-quarter income stood at P13 billion, BPI said in a disclosure to the local bourse on Thursday.

The modest year-on-year increase came amid a one-time gain seen in the same quarter in 2022, it noted.

“Without the effect of the prior year gain from property sale, quarterly net income would be higher by 49.3% from the same quarter last year,” it said.

“Total revenues reached P33.9 billion for the quarter, up 4.9%, owing to the decline in non-interest income offsetting the increase in net interest income,” BPI added.

Its financial statement was not available as of press time.

The bank’s second-quarter performance brought its first-half net income to P25.1 billion, up by 23% year on year.

This translated to a return on equity of 15.5% and a return on assets of 1.92%.

“Total revenues for the first semester of the year ramped up 13.8% to P65.6 billion, on the back of the 27.4% increase in net interest income to P50.1 billion, attributable to average asset base expansion of 9.2% and net interest margin widening by 56 basis points to 4.03%,” BPI said.

“This was tempered by the 15.4% decline in non-interest income to P15.5 billion due to the property sale gain recognized in the prior year. Removing the impact of this one-off transaction, non-interest income would be higher by P2.2 billion or 16.3%, led by the increase in fees from credit cards, various service charges, and securities trading,” it added.

Meanwhile, the bank’s operating expenses rose by 21.4% to P31.4 billion in the first semester amid higher spending due to salary increases and investments in digitalization programs, among others.

As a result, its cost-to-income ratio stood at 47.9%.

BPI’s loans expanded by 10.5% to P1.7 trillion in the first half, driven by growth in its corporate (8%), credit card (42.7%) and auto (20.4%) portfolios.

Despite the rise in loans, BPI said asset quality “remained robust,” with its nonperforming loan (NPL) ratio at 1.88% at end-June.

Its NPL coverage ratio was at 167.44%. It set aside P2 billion in provisions in the period, down 60% from the P5 billion seen a year prior.

On the funding side, total deposits grew 7.6% year on year to P2.1 trillion.

BPI’s low-cost current and savings accounts (CASA) ratio stood at 70.2%.

The loan-to-deposit ratio stood at 80.2%.

The bank’s total equity was at P336.1 billion at end-June, with its common equity Tier 1 ratio at 15.5% and capital adequacy ratio at 16.4%, both above the regulatory minimum.

Its total assets grew by 8.9% year on year to P2.7 trillion as of June.

BPI’s shares rose by P1.10 or 0.97% to close at P114.50 apiece on Thursday.