Now’s the time to welcome new beginnings at SMDC’s Dawn Residences

April 28, 2022 | 10:58 am

Start fresh and start now to maximize investment returns

Property consulting firm, Colliers Philippines, signaled optimism on the recuperation of the real estate industry, expressing its hope of a gradual “V-shaped” recovery expected to take off this year.

The group anticipates a bounce-back in residential demand on the strength of rising vaccination rates, macroeconomic recovery, and sustained remittances from Filipinos working abroad, among other factors. Supporting the rosy outlook is the Bangko Sentral ng Pilipinas’ Residential Real Estate Price Index, which showed an uptick in the price of residential formats, attributed to “stronger consumer demand, particularly [for] townhouses and condominium units.”

What this all adds up together is the perfect time to start tapping into properties positioned to yield lucrative returns. A prime example is SM Development Corporation (SMDC)’s newly launched development in Laguna, Dawn Residences. An idyllic vertical garden community, Dawn Residences presents residents and investors a chance at a new beginning, and a lease on a new life: the ‘Good Life.’

Capture a wide rental market with first-rate city offerings, and endless employment or business opportunities

When it comes to sustainable living, SMDC raises the bar with master-planned integrated communities that posit a convenient, low-carbon footprint lifestyle. Situated between “The Enterprise City of the Philippines,” Cabuyao, and “The Lion City of South Luzon,” Santa Rosa, Dawn Residences offers abundant employment and business opportunities, along with the much-coveted 15-minute city living.

Driving one’s kids to school in Santa Rosa, for instance, or reporting to work in Cabuyao for industry giants like Nestle and Procter & Gamble, are both quick 15-minute drives. Fifteen minutes, too, is what it takes to access South Luzon Expressway to either catch a flight at the Ninoy Aquino International Airport, or go to the beach for that much-awaited weekend with family.

With tons of career, livelihood, and social opportunities, in both Santa Rosa and Cabuyao, SMDC’s Dawn Residences is not only an agent of personal growth. It also unlocks a wide rental market that includes everyone — from established families to local upgraders.

Turn a new leaf at a promising location

The role of infrastructure development in the overall growth of a community cannot be overstated. Better infrastructure comes easier pathways to doing business, which drives economic development and, in turn, improves the locality’s quality of life.

Investors at SMDC’s Dawn Residences are set to benefit from Laguna’s manifold infrastructure projects in the pipeline. One of which is the Laguna Lakeshore Road Network Project on the western shore of Laguna de Bay, set to unlock more convenient connections between the southern areas of Metro Manila and Laguna.

The new road network is expected to provide a faster alternative to motorists, and likewise boost the economies of Laguna, Rizal, Quezon and Batangas. The project will have interchanges in Sucat, Alabang, and Tunasan in Muntinlupa, as well as in San Pedro, Biñan, Calamba, Santa Rosa, and Cabuyao in Laguna.

A new dawn rises with sustainable investment

SMDC’s expertise, unwavering commitment, and vision of a sustainable world founded on the three pillars — social, economic, and environmental — have, all together, made it an undisputed authority on community building. For Dawn Residences, this translates into features that pay importance to life’s smallest joys.

For one, the buildings’ thoughtful and nature-friendly design allows natural light and airflow to permeate throughout the development, providing residents a fresh and very comfortable life in their community.

Clear waters in the resort-style swimming pools invite you to refresh as the sunlight filters through the trees.

Sports and recreation amenities, on the other hand, give families opportunities to bond after a busy week.

Top that off with a vast expanse of greeneries, linear parks, and the rustic charm of Laguna — all entrancing residents, both young and old, to a realm that soothes the spirit and strengthens the mind and body.

With minimal capital investment and huge returns – especially as property prices rise, and pandemic-induced record-low interest rates surface – buying a home at Dawn Residences right now presents a fortuitous start. Its premium location, along with it being a complete and connected development, will surely command exceptional value and capital appreciation over time.

True to the title they hold, PropertyGuru Philippines Property Awards Best Developer, SMDC, provides comprehensive property management services and end-to-end leasing services to give you a worry-free investment experience.

Whether you decide to have your unit leased, to convert it as a serviced apartment, or to make it your new home, you are assured that it’s an investment to witness the many, many beginnings you have yet to have throughout the course of your life.

Follow SMDC on Facebook, Instagram, YouTube, and Twitter, or visit the SMDC website to learn more about Dawn Residences.

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Asticom bags three golds in 2022 TITAN Business Awards

April 28, 2022 | 10:06 am

Asticom Group of Companies, a wholly-owned subsidiary of Globe, bagged three golds in the recent 2022 TITAN Business Awards. The international awards recognize innovative excellence across all global businesses and enterprises from wide-ranging industries.

The shared services group excelled in the Company & Organization category for its overall strategy and efforts to innovate and grow. It was also hailed in the Human Resources category as having the best health and wellbeing strategy. Lastly, Asticom’s technologies and systems were cited in the IT category for their efficiency in resolving issues in the organization.

“We’re honored to be recognized, along with many other distinguished organizations, for the work we do at Asticom. These awards further affirm the impact of our strategies and approaches in empowering our clients and the people who made these achievements possible. Asticom continues to pursue excellence relentlessly, so we can also continue improving more Filipino lives,” said Mharicar Castillo-Reyes, Asticom President and CEO.

TITAN Business Awards, hosted by the International Awards Associate (IAA), honors organizations, big and small, private and public, profit and non-profit, as well as people behind their success

This year, the awards received over 800 nominated entries from all across the globe, with participating countries numbering up to 50, including the United States, United Kingdom, Australia, India, Ireland, New Zealand, Netherlands, and Canada

Asticom is part of Globe’s ecosystem. It owns information technology and business services outsourcing company Asti Business Services Inc. (ABSI), HR and Digital solutions provider HCX Technology Partners Inc., engineering firm Fiber Infrastructure and Network Services Inc. (FINSI), and logistics provider BRAD Warehouse and Logistics Services Inc.

To learn more about Asticom, visit https://https://asticom.com.ph/.

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MultiSys launches online store builder Multistore for MSMEs, entrepreneurs

April 28, 2022 | 9:30 am

Multistore---phone-and-laptop-OL — Customize your own website with Multistore.

With Multistore, entrepreneurs can build their own online store in minutes and have everything they need to run a business in one platform

Recognizing the continuing challenge of micro, small and medium enterprises (MSMEs) in digitalizing their businesses amid the pandemic, leading software solutions company Multisys Technologies Corporation introduces an online store builder called Multistore, which entrepreneurs can use to start their own digital journey.

Multistore is an end-to-end online store for food and beverages, retail, groceries and market, and other services with door-to-door delivery and e-payment features. It is a product of integrating three MultiSys flagship platforms, namely Deliverybox, which supports pickup, delivery, and scheduled delivery services; Paybox, which enables cash-on-delivery (COD), e-wallets, and bank payments; and Storebox, which allows for marketplace and digital store management.

Multistore equips MSMEs, restaurateurs, suppliers of commercial and raw goods, and even large-scale enterprises to have their own online store, as well as run and oversee their business operations, anytime and anywhere, in one web portal—from product management, to delivery and logistics services, content management and marketing, customer support, procurement management and inventory tracking, to name a few.

Apart from presenting a dynamic and all-around online retailing and eCommerce marketplace, Multistore also provides a comprehensive forecasting metrics, live data trends, comparative reports, notifications and order tracking, collection and analytics dashboard in customizable timelines. These help entrepreneurs keep track of their company performance so that they are empowered to make timely and effective business decisions.

Various payment options, including Credit/Debit, online banking, e-wallets, and cash payment options, as well as flexible shipping options of leading logistics providers and delivery channels, are also in the platform for quality customer experience and convenience.

Entrepreneurs can easily utilize all these features by visiting and onboarding with http://www.multistore.ph/.

MultiSys CEO and founder David Almirol shares, “Today, business resiliency translates to being able to adopt and maximize available technologies to continue operations. We have developed Multistore so that entrepreneurs, especially those who feel financially and conceptually overwhelmed by technologies, are equipped and empowered to tap new markets in the digital realm, and run their business and reach their customers in one comprehensive, seamless platform.”

Multistore’s content management dashboard with tools to design and customize online stores

Multistore will be a key component of PLDT Enterprise’s BEYOND FIBER offering as one of its newest Curated Digital Solutions to enable MSME growth through a comprehensive e-commerce platform.

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NG budget deficit narrows in March

April 28, 2022 | 12:34 am

Workers are seen at a construction site in Manila. — PHILIPPINE STAR/ RUSSELL PALMA

By Tobias Jared Tomas

THE NATIONAL Government’s (NG) budget gap narrowed in March as revenue collection and spending grew by double digits, the Bureau of the Treasury (BTr) reported on Wednesday.

Data from the BTr showed the Philippines’ budget deficit shrank by 1.97% to P187.7 billion in March, from P191.4 billion in the same month in 2021.

Month on month, the fiscal gap widened from the P105.8-billion deficit in February.

Government spending accelerated by 18.14% year on year to P481.55 billion in March, due to higher national tax allocation releases and budgetary support for government-owned and -controlled corporations.

Starting this year, local government units are given a bigger share in national tax collections, alongside the transfer of basic services, due to the Mandanas ruling.

The BTr said expenditures also increased as the Department of Education and the Commission on Higher Education released funds for scholarship programs, while the Department of Public Works and Highways and the Department of National Defense implemented capital outlay projects.

Primary expenditures, or spending net of interest payments, went up by 18.35% to P426 billion in March.

Interest payments increased by 16.54% to P55.5 billion.

Meanwhile, state revenues jumped by 35.96% to P293.9 billion year on year in March, as the economy gradually reopened after pandemic restrictions eased.

During the month, tax revenues rose by 28.69% to P244.1 billion, and nontax revenues surged by 88% to P49.8 billion.

Metro Manila and other areas were downgraded to the most lenient alert level starting March, as coronavirus infections plunged.

The Bureau of Internal Revenue (BIR) collected P170.4 billion, up by 27.76% year on year, while the Bureau of Customs (BoC) collected P70.8 billion, up by 29.33%.

The Treasury reported P33.4 billion in revenues in March, surging by 107% from a year ago, due to higher dividend remittances, income from bond sinking fund investments and the National Government share from the Philippine Amusement and Gaming Corp.’s income.

Q1 DEFICIT
For the first quarter, the budget deficit shrank by 1.44% to P316.8 billion, from P321.5 billion during the same period in 2021.

Year to date, revenues jumped by 12.62% to P784.4 billion, while expenditures increased by 8.18% to P1.10 trillion.

Tax collections rose by 11.73% to P697.2 billion in the January to March period, thanks to the 7% increase in collections by the BIR to P502.8 billion. The BoC’s collections went up 26.39% to P188.6 billion in the three-month period.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the reopening of the economy enabled the government to increase tax collections in the first quarter. He noted government spending on the pandemic response may have declined after the implementation of granular lockdowns.

“Measures to further reopen the economy towards greater normalcy such as the proposed nationwide Alert Level 1 would further help improve the government’s tax revenue collections,” Mr. Ricafort added.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said that the uptick in spending was due to “last minute” expenditures before the election ban on infrastructure projects began last March 25.

“Revenue growth can be tied to the 107% increase of borrowing (BTr) linked to a retail treasury bond issuance and the 70.8% jump in BoC due to more expensive fuel,” Mr. Mapa said.

Mr. Ricafort said sustaining the improvements in fiscal performance would depend on the next administration’s ability to assemble a “credible and competent” economic team, intensified tax collections, and good governance.

These measures will be needed in order to pay for the debt incurred since the pandemic started, he added.

The country has borrowed P1.31 trillion and received grants worth P2.7 billion for its COVID-19 response from 2020 to Jan. 14, 2022.

“In the coming months, and with the changeover in leadership, the new administration must look to walk the very thin line of fiscal prudence at a time when the economy may be in need of support. The incoming president will be inheriting a substantial debt pile, which will impact his or her ability to hit the ground running,” Mr. Mapa said.

The government has set a budget deficit ceiling of P1.65 trillion for 2022 equivalent to 7.7% of gross domestic product.

ASIA-PACIFIC
Meanwhile, Fitch Ratings said it expects general government deficits in many Asia-Pacific economies, including the Philippines, to narrow this year, although still significantly higher than pre-pandemic levels.

“Subdued economic recovery in a large part of Asia is a key reason for the sustained high deficits, as emergence from pandemic-related headwinds has been slower than in other regions. Political tolerance for higher deficits may also be greater, for instance, in Australia and Korea, which had robust economic rebounds,” Fitch said in a note on Wednesday.

It noted the sharp increase in commodity prices may pose a “rising risk” to fiscal consolidation.

“Some governments have raised implicit or explicit subsidies to cushion the impact on households… Revenue growth could also be more subdued to the extent commodity prices dampen economic performance,” Fitch said.

Asia-Pacific will also have to deal with rising interest payments as borrowing costs go up amid monetary policy tightening from major central banks like the US Federal Reserve, it added.

Fitch said limited debt reduction in Asia-Pacific will be likely, as many economies return to high growth in the next few years. However, this may not be enough to sharply reduce debt incurred during the pandemic.

“Debt trajectory uncertainties drive our negative outlook in India. They are also a factor in the Philippines, in combination with potential medium-term growth challenges,” it said.

The government has been preparing a fiscal consolidation plan to manage the national debt.

The country’s outstanding debt stood at P11.73 trillion as of end-2021. This pushed the debt-to-gross domestic product ratio to a 16-year high of 60.5%, slightly beyond the 60% threshold considered as manageable by multilateral lenders for developing economies.

The debt watcher in February kept its negative outlook on the investment grade “BBB” rating of the Philippines. This means a credit downgrade still remains a possibility within the next 12 to 18 months. — with LWTN

BSP to scale back policy support as economy recovers, Diokno says

April 28, 2022 | 12:33 am

Fresh fish products are up for sale at the Marikina Public Market, April 13. Economic activity improved in the first quarter as mobility curbs eased in Metro Manila and other areas. — PHILIPPINE STAR/ WALTER BOLLOZOS

THE PHILIPPINE central bank will take into account the pace of economic recovery as it pursues monetary policy normalization.

“The Bangko Sentral ng Pilipinas (BSP) is mindful that as the economy recovers and gradually returns to normal, the extraordinary measures will need to be scaled back,” BSP Governor Benjamin E. Diokno said in a speech at the virtual Philippine Singapore Business Investment Summit on Wednesday.

“The timing and conditions of BSP’s exit strategy for its pandemic interventions will continue to be guided by the inflation and growth outlook over the medium term, the state of public health, and domestic and global risks to the economy,” he added.

Mr. Diokno on Monday told Bloomberg the central bank may consider increasing policy interest rates at its June 23 meeting as the economy likely expanded by around 6-7% in the first quarter.

First-quarter economic data will be released on May 12.

BSP officials previously said they will assess the need for a rate hike in the second half of 2022.

Last month, the BSP kept policy rates untouched at record lows even as it raised its inflation forecast for 2022 to a beyond-target at 4.3% as oil and commodity prices surged.

Mr. Diokno previously said he would want to see about four to six quarters of consecutive economic growth before adjusting policy rates.

If Philippine gross domestic product (GDP) expands in the first quarter, this will mark the fourth successive quarter of economic growth following the pandemic-induced recession.

“Recent key economic developments give us confidence in the country’s ability to sustain recovery in the near term,” Mr. Diokno said.

“Growth will be supported by the implementation of the 2022 national budget, the ‘Build, Build, Build’ projects, the Corporate Recovery and Tax Incentives for Enterprises law, as well as amendments to the Retail Trade Liberalization Act, the Foreign Investment Act, and Public Service Act,” he added.

Mr. Diokno acknowledged uncertainties caused by the Russia-Ukraine war on the outlook for trade, investments, and remittances, but emphasized the limited economic linkages to the countries involved.

He said the country’s external position is still a source of strength for the economy.

“The country’s robust external accounts and structural foreign exchange inflows are expected to mitigate potential negative impacts from advanced economies’ monetary tightening, as well as headwinds from the Ukraine-Russia conflict,” he said.

Gross international reserves worth $108.5 billion as of end-March are equivalent to 9.6 months’ worth of imports of goods and payments for services and primary income.

Mr. Diokno said external debt is also relatively low at 27% of the GDP as of end-2021, compared with approximately 60% in mid-2000s.

Philippine GDP rose by 5.7% in 2021 after the record 9.6% contraction in 2020. Economic managers expect GDP to rise by 7-9% this year.

Mr. Diokno has said policy interventions to support the economy during the pandemic infused over P2.2 trillion into the financial system. This is equivalent to about 11.1% of GDP.

Earlier this month, the BSP extended another P300-billion zero-interest loan to the National Government in March, payable until June 12. This was the sixth time the central bank extended budgetary support to the National Government.

The central bank chief also significantly lowered purchases of government securities. — Luz Wendy T. Noble

BSP to launch digital currency pilot project

April 28, 2022 | 12:32 am

A token of the virtual currency Bitcoin is seen placed on a monitor that displays binary digits in this illustration picture, Dec. 8, 2017. — REUTERS

THE BANGKO SENTRAL ng Pilipinas (BSP) is currently working on a pilot project that will test the use of wholesale central bank digital currency (CBDC) for large-value financial transactions among selected financial institutions.

“The pilot project covers the experimentation of the CBDC’s use to transfer large-value financial transactions on a 24 [hours] by 7 [days] basis, across a limited number of financial institutions but possibly covering both banks and nonbank institutions,” BSP Governor Benjamin E. Diokno said in his speech at the Alliance for Financial Inclusion Policymakers’ Roundtable at the 2022 International Monetary Fund-World Bank Spring Meetings held on Tuesday.

Project CBDCPH is a major step for the country’s central bank and the finance industry “to better understand the opportunities and risks of wholesale CBDCs,” Mr. Diokno said.

He said wholesale CBDCs may have value in addressing some pain points, particularly in large cross-border foreign currency transfers done through the national payment system.

“We believe that we need to address this issue by reducing transaction costs, shortening processing times, and enhancing the transparency of such transfers,” Mr. Diokno said.

“Second is the settlement risk exposure arising from the use of commercial bank money in our equities market. We intend to mitigate this risk with CBDC, being a central bank money,” he added.

The BSP governor said wholesale CBDCs may also ease challenges related to the intraday liquidity facility which is not yet automated end-to-end.

The central bank said the pilot project will develop its capacity in operationalizing CBDCs. The project covers areas including policy and regulatory considerations, technological infrastructure, governance and organizational requirements, legal matters, payment and settlement models, reconciliation procedures, and risk management.

External advisers from multilateral institutions and international standard-setting bodies have also been tapped for the project.

The BSP chose to focus on the wholesale aspect of CBDCs as it assessed that it will have bigger impact compared with retail use cases.

“There is minimal value added of the use of retail CBDC in the Philippines in the short term given the progress in our widespread implementation of retail payment digitalization and financial inclusion reforms,” Mr. Diokno said.

He has become more open to exploring CBDCs, in contrast to earlier statements that the central bank is not in a hurry to implement CBDCs.

The BSP has previously said it sees opportunities from CBDCs in terms of additional options for monetary policy action, boosting competition and innovation among financial industry players, as well as broader financial inclusion. — Luz Wendy T. Noble

Poor nations face four times more climate change risk, S&P warns

April 28, 2022 | 12:31 am

POORER COUNTRIES’ economies will be four times more exposed to climate risks than richer peers by 2050, according to an S&P Global Ratings analysis.

Around 12% of low to lower middle-income nations’ economic output will be under threat, compared with 3% for high and upper middle-income states, the ratings agency said in a report based on a “moderate” scenario. South Asia is particularly at risk — 10 times more so than Europe — due to its exposure to storms, floods and rising sea levels.

Countries located around the equator and small island states, typically more exposed to physical climate risks, also tend to have poorer, less diversified economies and weaker institutions. That means their economic losses are likely to be higher and more persistent given they have less capacity to adapt, S&P found.

“Climate finance is needed to help build resilience of developing countries to climate change to which they have contributed relatively little,” said authors including Marion Amiot. “International cooperation and support can help the most vulnerable countries to finance a rising adaptation gap.”

Bond markets have already been adapting to the threat of climate change, with borrowers issuing record volumes of green bonds and investors often paying a so-called “greenium” in the rush to grab them. Progress has been slower in quantifying the climate risks for individual nations, and in any case models may be of limited use given many sovereign bonds won’t mature for decades.

S&P does not consider this analysis as part of its base case for sovereign ratings, citing the uncertainty of the projections. The S&P analysis does not assess so-called transition risks, which refer to the economic costs of moving toward a greener economy, or associated governments and communities’ adaptation efforts.

“It’s quite difficult to quantify the impacts of adaptation methods currently,” said Paul Munday, primary analyst on the report. “That being said, it is reasonable to assume countries will try to adapt to issues such as rising sea levels.”

The study is mainly based on a scenario that projects an average temperature increase of 1.8°C, versus the Paris Agreement’s aim of limiting a temperature rise to “well below” 2°C. — Bloomberg

Thailand is opening for business

April 28, 2022 | 12:07 am

1 of 2

It targets 10 million international tourists by the end of the year

THE THAI government had among of the strictest pandemic-related requirements to enter its country: formerly, it had required one RT-PCR test upon arrival to the country, and having to wait for the result at a hotel, and a second test performed five days later, as well as applying for a Thailand Pass.

Things are now loosening up.

On April 21, Thailand’s Deputy Governor for International Marketing for Asia and South Pacific Tanes Petsuwan announced, “From the first of May, the RT-PCR test (requirement) would be lifted in Thailand.” An antigen test would suffice, and getting the Thailand Pass would still be required. “Then you are free to visit Thailand.” He added that he expects that in the next two months, the Thailand Pass requirement would be lifted as well.

“Thailand is now open, and we aim that by the end of this year, perhaps, we set the target of 10 million international tourists,” said Mr. Petsuwan.

He said all this during a press conference at the Conrad Hotel, last week, on the side of the World Travel and Tourism Council Global Summit in Manila. “We have learned that so many countries offer more relaxed restrictions for the tourists when they plan to enter each country,” he said.

Mr. Petsuwan presented Thailand’s tourist numbers from before and after the pandemic, and explained how they plan to recoup tourist arrivals.

The tourism industry forms 20% of their country’s gross domestic product (GDP), he said. In 2019, which he said saw one of the “best performances of the Thai tourism industry,” the country welcomed approximately 40 million international tourists, with 500,000 coming from the Philippines. In the two years of the pandemic, this had dropped by about 80%. On the other hand, his data from the first quarter of 2022 shows about 500,000 tourist arrivals, with the visitors from the United Kingdom and Germany topping the list at 55,000 and 51,000 respectively. The Philippines added 5,000 tourists to the Q1 (first quater) total.

To hit the target of 10 million tourists, Thailand is ramping up its infrastructure efforts as well as promoting new spots, and tapping new markets.

“During the past two years, we see a lot of infrastructure… a lot of galleries, restaurants (opened),” Mr. Petsuwan said.

Bangkok saw the opening of the Grand Railway Station, which will connect Bangkok to the rest of the country, as well as a new underpass for the Grand Palace (the walkway was built in consideration of crowding at the tourist spot, mindful of COVID-19 social distancing efforts). Mr. Petsuwan also reported the construction of a new expressway, which will connect Bangkok to more rural areas.

As for tapping new markets, he said, “What we concentrated on is the new generation: the digital nomad.”

Work from home (or anywhere) arrangements were normalized during the pandemic, and facilities like co-working spaces have become more visible.

In a fact sheet provided to the media, other segments they plan to tap include “bleisure” (business and leisure), millennials, and LGBTQ.

“New areas of potential markets will be set to attract quality segments (e.g. Luzon island in Philippines), and to seek new partners especially corporate or incentive group in the market,” the fact sheet said.

“We have announced already that this is going to be the Visit Thailand year again,” Mr. Petsuwan said. “This year, you will see new names… of tourist places of Thailand come to the market.” — Joseph L. Garcia

AEV posts lower net profit

April 28, 2022 | 12:07 am

ABOITIZ Equity Ventures, Inc. (AEV) reported a 64% drop in core net income to P3.2 billion in the first quarter as its business units registered slower growth during the period.

Including one-off items, consolidated net income fell by 54% to P3.9 billion in the first three months of 2022, it added.

“The company recognized nonrecurring gains of P766 million during the period, primarily due to foreign exchange gains from the revaluation of dollar-denominated assets, compared to the P211 million in nonrecurring losses for the corresponding period in 2021,” AEV said in a disclosure on Wednesday.

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) was also lower by 28% to P13 billion year on year.

Excluding extraordinary items such as liquidated damages, business interruption claims, Typhoon Odette, advanced outages, as well as extraordinary trading gains, net income for the first quarter would have been lower by 4% compared with the same period in 2021.

“2022 started with a strong sense of optimism coming out of the pandemic with the reopening of borders, resumption of travel, and reduction of cases through vaccination — all resulting in economic recovery in the first quarter,” AEV President and Chief Executive Sabin M. Aboitiz said in a statement.

Mr. Aboitiz said that although new global disruptions emerged with the continuing conflict in Ukraine, the group is prepared to deal with uncertainties through its “agile and resilient mechanisms and mindsets that were deeply embedded in our organization long before the pandemic.”

AEV’s energy company, Aboitiz Power Corp., accounted for 41% of total income contributions from business units, followed by financial services at 36%, food at 14%, real estate and infrastructure at 4% each.

AboitizPower’s net income for the quarter went down by 53% to P2.9 billion from P6.2 billion in the similar period a year earlier.

The energy unit recognized nonrecurring losses of P22 million during the period, primarily due to the revaluation of dollar-denominated liabilities, compared with the nonrecurring losses of P29 million in the same period in 2021.

The firm noted that its core net income a year ago included liquidated damages for the delay in the construction of GNPower Dinginin Ltd. Co. and business interruption claims for the plant outages of GNPower Mariveles Energy Center Ltd. Co.

“AboitizPower was also hit during the first quarter of 2022 with outages related to Typhoon Odette and had to advance planned outages in anticipation of the country’s 2022 national elections,” AEV said.

It added that if AboitizPower excluded these nonrecurring items and events “the first quarter of 2022 would have resulted in only a 4% decline in consolidated net income compared to the same period in 2021.”

In the first quarter, the generation and retail electricity supply businesses were down 47% to P3.2 billion, accounting for 81% of AboitizPower’s total income contribution.

Capacity sold for the period increased by 1% to 3,534 megawatts (MW) compared with the 3,558 MW sold in the same period last year.

Meanwhile, energy sold decreased by 1% to 6,055 gigawatt-hours (GWh) for the first quarter, compared with 6,130 GWh in the same period last year.

AboitizPower’s distribution business segment recorded an income of P742 million, or 32% down in the first quarter. The segment accounts for 19% of total income contributions.

Meanwhile, AEV’s banking and financial units also posted lower growth.

UnionBank of the Philippines and its subsidiaries recorded a net income of P2.6 billion in the first three months, 45% lower year on year.

“This was due to extraordinary trading gains recorded in the first quarter of 2021,” AEV said.

Meanwhile, recurring income grew to P9.4 billion, 21% higher year on year due to higher net interest income and fee income. Net interest income grew 12% to P8.1 billion due to higher yields in earning assets, coupled by lower cost of funds from the expansion of its current account and savings account or CASA deposits.

“Fee income, on the other hand, grew on the back of higher InstaPay and interchange fees,” AEV said.

Loan-loss provisions went down by 78% to P504.5 million while the nonperforming loan or NPL ratio remained stable at 5.2% as of end-March this year.

UnionBank’s earnings performance for the first quarter resulted in a return on equity of 9% and a return on assets of 1.2%.

AEV’s non-listed food subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp,, and Pilmico International Pte. Ltd. reported lower net income during the period.

The agribusiness segment, which consists of the regional animal nutrition businesses, reported a net income of P211 million or 37% lower than the P334 million recorded in the same period in 2021.

AEV said that the decrease was due to the recognition of unrealized foreign exchange losses from the devaluation of the Sri Lankan rupee.

In the real estate segment, Aboitiz Land, Inc. and its subsidiaries along with Lima Land, Inc. reported a 48% rise in consolidated net income to P390 million.

At the stock exchange, AEV shares went down by 2.85% or P1.60 to P54.50 apiece. — Luisa Maria Jacinta C. Jocson

Coffee, tea and nagging at Japan’s anti-procrastination cafe

April 28, 2022 | 12:06 am

2022-04-26T010057Z_146763513_RC2GRT92O05T_RTRMADP_3_JAPAN-CAFE — CUSTOMERS work on their manuscripts at the Manuscript Writing Cafe, which is designed for writers who are working on a deadline, in Tokyo, Japan, April 21. — REUTERS/KIM KYUNG-HOON

TOKYO — Writers facing deadlines go to Tokyo’s Manuscript Writing Cafe with an understanding — they can’t leave until their work is done.

Oh, and there’s prodding thrown in to make sure they buckle down and finish.

The clean, well-lit place in western Tokyo has 10 seats reserved for writers, editors, manga artists, and anybody else grappling with the written word and deadlines. Coffee and tea are unlimited and self-serve, and high-speed Wi-Fi and docking ports are installed at every seat.

Customers enter, write down their names, writing goals and the time they plan to finish. They can also ask for progress checks as they work, with “mild” just asking them if they have finished as they pay and “normal” being a check-in every hour.

Those choosing “hard” will feel silent pressure from staff standing frequently behind them.

Owner Takuya Kawai, 52 and a writer himself, said he hoped the strict rules would help people focus.

“The cafe went viral on social media and people are saying the rules are scary or that it feels like being watched from behind,” the genial Mr. Kawai said, displaying a board with the names of customers who completed their tasks and left.

“But actually instead of monitoring, I’m here to support them … As a result what they thought would take a day actually was completed in three hours, or tasks that usually take three hours were done in one.”

The cafe charges ¥130 ($1.01) for the first 30 minutes and then ¥300 ($2.34) every successive hour. Though a few people have stayed past the official closing time, they have all eventually gotten their work done.

Emiko Sasaki, 37 and a blog writer, said she relished the chance to be free of pesky social media and phone calls.

“It’s good to be able to concentrate on writing,” she said, completing her goal of three blog articles in three hours.

The cafe, originally a livestreaming space, was hit badly by the coronavirus pandemic, but Mr. Kawai is now hopeful as word of mouth spreads about its new format.

“I don’t know what kind of work might be born, but I’m proud to be able to offer my support so that things written here can be published to the whole world,” he said. — Reuters

Wilcon Depot net income up 41% as new stores help boost sales

April 28, 2022 | 12:06 am

WILCON Depot, Inc. on Wednesday reported a 40.7% growth in net income to P851 million in the first quarter of 2022 as sales jumped, partly with the help of new stores.

“We are pleased with our strong start for the year as our customers trooped back to our stores when the Omicron variant surge receded in February,” Wilcon Depot Chief Executive Lorraine Belo-Cincochan said in a statement.

She said that comparable sales declined in January at the height of the virus’ surge, but the company managed to reverse the downward trend to end the quarter with an 8.6% growth and a 14.6% total net sales growth.

“We remain focused on our store network expansion, especially with this very encouraging first quarter results,” Ms. Belo-Cincochan added.

The depot format stores’ sales were up 15% to P7.5 billion, which accounted for 97.5% of total net sales, while its smaller format store Home Essentials’ sales declined by 1.3% to P138 million.

The home improvement company said that project sales contributed the balance of P53 million, increasing by 11.3% year on year.

Operating expenses increased by 13.8% to P1.77 billion, attributable mainly to expansion-related expenses in outsourced services, trucking, utilities, salaries, depreciation and amortization.

Including lease-related interest expense or rent expense, total operating expenses totaled P1.9 billion.

Operations-related other income grew 42.7% to P84 million due to increased collection of supplier support and delivery fees in view of the higher business volume.

Non-operating other income, comprising interest income and foreign exchange gains, dropped to P3 million from P10 million due to lower investible funds.

“We are on track to achieve our 100-strong branch network by the end of 2025 goal. We opened our 74^th branch in March and we will be opening seven more this year. We are hoping that the return to our pre-pandemic growth path will continue unhampered,” Ms. Belo-Cincochan added. — Luisa Maria Jacinta C. Jocson

Nespresso cleans up after itself

April 28, 2022 | 12:05 am

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Makes recycling the name of the game

COFFEE makes the world go ’round, apparently, but coffee pods litter the earth, making for an imbalanced trade-off.

On Earth Day (April 22), Nespresso presented its sustainability commitments at Robinsons Magnolia, showing off a booth that displayed artwork made from ex-Nespresso coffee pods, as well as more practical applications.

In a partnership with Nespresso, young emerging artists from For the Future PH were commissioned to create original artworks that integrate materials including aluminum and coffee grounds from used Nespresso capsules. All proceeds are in support of the organization’s ongoing reforestation efforts with the Yangil Tribe in Zambales, one of the areas affected by the eruption of Mt. Pinatubo in 1991. Another partnership was formed with the Artisans of Hope project of the Negrense Volunteers for Change Foundation (NVC) which provides livelihood to vulnerable individuals and feeds undernourished children. Volunteers train people with limited income opportunities to create art from discarded materials like eggshells, leftover tiles, and Nespresso capsules. Much of the pods’ shredded aluminum is upcycled into mosaic-style decorative art. All proceeds from the artworks sold are used to support NVC’s feeding program for children in need.

Most of these efforts may seem small in scale, but Millet Valdez, Head of Commercial and Marketing for Nespresso distributor in the Philippines, Novateur Coffee Concepts, Inc., pointed to a great big aluminum ingot, about the size of three adult arms, in the booth. This ingot was made with the aluminum pods of Nespresso capsules, smelted by the Katipunan Metal Corp., and delivered for use to become car parts and cookware, among other applications. “We deliver tons and tons,” said Ms. Valdez, and the majority of the ex-pods go to industrial applications like these.

Customers are encouraged to deliver their used coffee pods to Nespresso stores (in Rockwell, Podium, and Robinsons Magnolia). These are also collected during e-commerce transactions. Customers are given incentives to do this: for example, getting a gift after giving away three bags of used capsules. “Just to make it more exciting, and just to keep it top of mind,” said Ms. Valdez of the incentives.

The remaining grounds are then separated from the capsules and then used as organic compost. “It makes the soil quality better,” said Ms. Valdez, since coffee grounds are rich in nitrogen, potassium, and phosphorus. The grounds are sent to local organic farms like Nutriganics Farm in Cavite, Saret Organic Farmville in Bulacan, and Palaya Farm in Rizal.

Ms. Valdez pointed to items made with ex-coffee pods in industrial applications: a Victorinox Swiss Knife, and a pen from Caran d’Ache, proving Switzerland-based Nespresso makes sustainability a global effort.

According to her, in markets closer to Nespresso manufacturers, the coffee pods are remade into coffee pods anew. “We are really required to have a recycling program in place to operate. It’s really part of their DNA,” said Ms. Valdez, speaking about the Philippine operations, despite not being directly managed by Nespresso in Switzerland.

The secret is in the material: “Aluminum is completely and infinitely recyclable,” she said.

Almost all Nespresso coffee capsules are made from 80% infinitely recyclable aluminum, which requires less energy to produce than raw materials. “The reason why they use aluminum for their capsules in the first place — apart from it being a material that protects the coffee effectively — is the fact that it’s recyclable — unlike plastic.” Nespresso has been using new packaging for its machines since March 2020, which makes use of 95% recycled material.

To guarantee overall proper waste management of Nespresso in the country, the company has partnered with Geocycle Philippines and Envirocycle. The former is part of the global waste management business of LafargeHolcim Group, which envisions a zero-waste future by actively developing and promoting innovative, customized, and safe environmental waste management solutions. Meanwhile, the latter is a full-service e-waste recycling company that aims to prevent the disposal of potentially polluting electronic equipment into landfills. Instead, these are to be reused or recycled through fully licensed and accredited channels. These would include corporate waste like paper and electronics.

“The goal is to really be 100% sustainable,” said Ms. Valdez. “It should span not just our products, but also our internal processes as an organization.” — J.L. Garcia