Agricultural output slumps in Q3

November 9, 2021 | 12:34 am

Industry experts said the Agriculture department’s growth target of 2% for this year may already be out of reach. — PHILIPPINE STAR/ MICHAEL VARCAS

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINES’ agricultural output shrank by an annual 2.6% in the third quarter as crops, livestock and fisheries production declined due to bad weather, the statistics authority reported.

The Philippine Statistics Authority (PSA) on Monday said the value of production in agriculture and fisheries slumped by 2.6% in the July-September period, a reversal of the 0.7% growth a year ago. The decline is also steeper than the -1.5% recorded in the second quarter.

“Production declines were noted for crops, livestock, and fisheries, while poultry grew during the period,” the PSA said in the report.

“At current prices, production in agriculture and fisheries was valued at P446.46 billion, an increase of 5.2% this quarter.”

Agriculture typically makes up around 10% of overall economic output, and a fourth of the country’s jobs. Third-quarter gross domestic product (GDP) data will be released today (Nov. 9).

For the first nine months of the year, the PSA said the value of production in the agriculture sector contracted by 2.5%, worse than the -0.2% recorded last year.

Agriculture Secretary William D. Dar said in a mobile phone message to BusinessWorld that the Department of Agriculture (DA) will have to do its best in the last two months to meet the 2% full-year growth target for sector.

Roy S. Kempis, Pampanga State Agricultural University professor, said the recent typhoons hampered agriculture production.

“Physical factors brought by weather-related events have continuously wreaked havoc on agriculture and food production. The weather elements and their destructive effects are known, but the DA should know the science on how to channel away the destruction with its own risk reduction measures,” Mr. Kempis said in a mobile phone message.

Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said in a mobile phone message that the DA should help farmers to recover faster from these typhoons.

“Recovery programs should be in place ahead of time especially during the typhoon season, such as provision of seeds, fertilizer, condonation of loans or crop insurance, and other support, so that they can help farmers immediately after the disaster,” Mr. Montemayor said.

Mr. Dar said the DA is already implementing programs to enhance the sector’s resiliency against typhoons.

“There is the early planting of rice, use of climate smart crop varieties, off-season planting of vegetables in greenhouses, and balanced fertilization strategy,” the Agriculture chief said.

CROPS OUTPUT FALLS
In the third quarter, crops production, which accounted for over half of the overall agricultural production, dipped by 0.2%. Palay or unmilled rice output went up by 6.7%, while corn production declined 18.6%.

“Crop damage caused by inclement weather in September also contributed to the overall struggles of the agricultural sector,” Nicholas Antonio T. Mapa, ING Bank N.V. Manila Senior Economist, said in an e-mail.

Based on DA data, agriculture damage caused by Typhoon Jolina reached P1.36 billion. The typhoon swept through Central Luzon, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon), Mimaropa (Mindoro, Marinduque, Romblon, and Palawan), the Bicol Region, Western Visayas, Central Visayas and Eastern Visayas.

The southwest monsoon enhanced by Typhoon Fabian also caused P698.53 million worth of farm losses.

Crops that posted lower production included abaca (-21.9%), cabbage (-18.1%), potato (-13%), onion (-8.1%), mongo (-7.6%), eggplant (-5%), coffee (-4.3%), ampalaya or bitter gourd (-3.8%), cacao (-3.6%), sweet potato (-1.4%), cassava (-0.3%), and banana (-0.2%).

On the other hand, higher production was recorded for sugarcane (110.8%), pineapple (13.1%), calamansi (8.3%), tobacco (3.2%), rubber (2.6%), coconut (1.9%), tomato (1.6%), and mango (0.6%).

ASF IMPACT
Livestock production, which made up 15.3% of the total, fell by 15.2% amid the prolonged outbreak of African Swine Fever (ASF).

PSA data showed lower production for hog (-17.8%), goat (-7.4%), dairy (-3.6%), and cattle (-2.5%), while carabao production improved by 9.5%.

Rolando E. Tambago, Pork Producers Federation of the Philippines, Inc. president, said the livestock subsector, particularly hogs, will continue to decline unless the government addresses issues such as the ASF outbreak.

“We expect the trend will continue even toward the end of the year unless the government will do something tangible to reverse the situation. One is the ASF outbreak, second is the low confidence of the hog industry to repopulate or increase production due to massive importation at low tariffs,” Mr. Tambago said in a mobile phone message.

To recall, President Rodrigo R. Duterte issued two executive orders that increased the allowable pork import volume and lowered the tariff rates of pork imports for one year.

Fisheries output, which accounted for 16.2%, slipped 0.4% in the third quarter.

A decline in production was seen for bigeye tuna (-41.1%), blue crab (-22.1%), frigate tuna (-21.1%), yellowfin tuna (-19.9%), threadfin bream (-19.1%), slipmouth (-12.4%), skipkack, (-11.8%), round scad (-11.8%), Indian mackerel (-7.8%), bali sardinella (-5.8%), and seaweed (-3.7%).

On the other hand, production increased for mudcrab (29.2%), milkfish (9.9%), big-eyed scad (9.7%), cavalla (9.4%), fimbriated sardines (7%), squid (5.7%), tilapia (5.7%), grouper (3.5%), and tiger prawn (1.6%).

“Aside from typhoons which made fishing more difficult, capturing fish in our seas is affected by the China factor that drives away our fishermen from their traditional fishing grounds,” Mr. Kempis said.

The Department of Foreign Affairs (DFA) said on Oct. 21 that it submitted 211 diplomatic protests since 2016 against China’s presence in the West Philippine Sea. However, Chinese vessels remain in the area.

Poultry was the only bright spot, growing by 1.3% in the third quarter. It accounted for 14.6% of the overall agricultural output. There was a drop in production of duck (-2.1%) and chicken (-1.4%), while an increase was seen in chicken eggs (8.1%) and duck eggs (7%).

“Broiler (production) declined because of poor demand, high input cost, high levels of frozen meat inventories both local and imported, and high arrivals of imports of chicken and pork,” United Broiler Raisers Association (UBRA) President Elias Jose M. Inciong said in a mobile phone message.

OUTLOOK DIMS
Industry experts said the DA’s growth target of 2% for this year may already be out of reach.

“It is definitely out of reach. The DA needs to recover too much ground before it can achieve the 2% target,” Mr. Montemayor said.

Mr. Kempis noted farm output in the fourth quarter would have been affected by Typhoon Maring, which caused up P2.26 billion in agricultural damage.

“With Typhoon Maring wreaking havoc in October, the growth for the fourth quarter of 2021 will be a challenge, making it difficult to achieve the 2% overall 2021 growth,” he said.

Q2 GDP growth higher than initially reported

November 9, 2021 | 12:33 am

face-mask-Public Market — PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Senior Reporter

ECONOMIC GROWTH in the second quarter grew at a slightly faster pace than initially reported, the Philippine Statistics Authority (PSA) said on Monday.

Gross domestic product (GDP) — the value of all finished goods and services produced in the country at a given period — rose by 12% in the second quarter, quicker than the 11.8% preliminary estimate.

Major contributors to the revision were higher growth rates in education (12.6% from 10%), financial and insurance activities (5.2% from 4.2%), and construction (27.1% from 25.7%).

However, the decline in net primary income (NPI) from countries abroad was faster than initially reported at -54.4% from -53.8%.

Gross national income — the sum of the country’s GDP and NPI received from overseas — was revised upwards to 6.8% from 6.6% previously.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the slight upward revision may be attributed to unusually low base effects from the height of mobility restrictions in the second quarter last year compared with more business activity this year.

Measures to reopen the economy benefited the construction sector along with financial and insurance activities, he said in a Viber message.

“The shift and the start of online learning may have benefited the education sector, compared to a year ago,” he added.

ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa said in an e-mail that revisions came mostly from services and construction, reflecting the improved mobility and consumer confidence that led to a quicker pickup in economic recovery.

“The lockdowns and poor sentiment (both consumer and business) have held back expansion, particularly in the services sector. This development also manifests in the recent labor market data that shows most of the challenges faced by the labor force are in services that oftentimes require face to face interaction,” he said.

The preliminary estimate for the third-quarter GDP will be released today (Nov. 9).

A BusinessWorld poll of 18 analysts yielded a GDP growth estimate of 4.7% in the third quarter, lower than the 12% jump in the second quarter of 2021 and a turnaround from the 11.4% decline in the third quarter last year.

The government cut its economic growth target for 2021 to 4-5% from 6-7% previously.

Mr. Ricafort said the data revision for the second quarter could have a slight positive impact on GDP growth estimates for the succeeding quarters as well as the full-year economic growth rate.

An economic rebound and curbing coronavirus disease 2019 (COVID-19) infections go hand in hand, Mr. Mapa said.

“Cutting corners and rushing reopening without properly addressing the healthcare crisis oftentimes leads to costly reversal in quarantine restrictions as COVID-19 infections surge,” he said.

Makati subway project secures tax perks

November 9, 2021 | 12:32 am

THE FISCAL Incentives Review Board (FIRB) has approved the grant of tax incentives for the rail operations of the P81-billion subway project in Makati City.

According to a Finance department statement, the Makati subway project will be given four years of income tax holiday followed by five years of duty exemptions for imports of goods related to building and maintaining the project.

Rail operations set to start in January 2026 could increase economic productivity by P24.4 billion each year.

“This will be monitored, along with the other projected benefits, in accordance with the principle of granting incentives based on merit or performance embodied in the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law,” the Department of Finance (DoF) said.

Trade Secretary and FIRB Co-Chair Ramon M. Lopez said the productivity boost would offset foregone revenues.

The CREATE Law or Republic Act No. 11534, overhauls the tax incentives system to make them more performance-based and timebound.

Finance Secretary Carlos G. Dominguez III, who co-chairs the FIRB, said the incentives only apply to the Makati subway’s rail operations.

Other business activities related to the subway, such as the leasing of retail areas and advertising, will be subject to the regular income tax rate.

Philippine Infradev Holdings, Inc. is developing the Makati subway under a joint venture agreement with the Makati City government. Philippine Infradev is led by President and Chief Executive Officer Antonio L. Tiu and Chairman Ren Jinhua.

Mr. Dominguez also said that the Makati City government and the Department of Transportation (DoTr) should “work out the details” of connecting the proposed subway to the National Government’s Metro Manila Subway Project.

Excavation work for the Metro Manila Subway Project is expected to start in the first quarter next year, the DoTr said in September.

Shares in Philippine Infradev rose 1.72% to P1.18 each on Monday. — Jenina P. Ibañez

PHL ranks last in Asia-Pacific economic integration

November 9, 2021 | 12:31 am

THE PHILIPPINES has fallen behind in economic integration in the Asia-Pacific region as it registered the poorest performance in an index measuring 17 economies’ performance in 2019.

The Pacific Economic Cooperation Council (PECC) in its State of the Region Report 2021-2022 released on Monday said the Philippines’ integration performance “still has the biggest gap behind the regional average, and its convergence ranking remains the lowest amongst all 17 economies in both 2015 and 2019.”

The index measures the degree of economic integration in the region based on trade of goods, investment, and tourism. It also measures convergence in gross domestic product (GDP) per capita, the share of non-agriculture to GDP, the urban resident ratio, life expectancy, and share of education expenses in the gross national income.

“The process of economic integration is commonly defined as the intra-regional freer movement of goods, services, labor, and capital across borders,” PECC said.

The Philippines scored -11.35 in the composite index, behind the 15.61 regional average.

The report said the rankings should not be read as league tables, given that lower rankings may imply that an economy is more oriented globally than regionally.

Recent figures show increasing integration indicating a more frequent exchange of goods, capital, and people among some economies in the Asia-Pacific.

Singapore, Hong Kong, Thailand, Vietnam, and Korea performed best in the 2019 index.

“As the freest business harbors, Singapore and Hong Kong (China) benefit the most from economic integration in trade, investment, and tourism,” PECC said.

PECC said intra-regional trade flows have improved among some economies, including the Philippines.

“Compared to 2015, in 2019 only six out of the 17 included economies show an increase in their intra-regional trade shares: the Philippines, Vietnam, Mexico, Canada, Australia, and New Zealand,” it said.

“Meanwhile, major trading economies, such as China, the United States, Japan, and Korea, have nontrivial decreases, which mainly occurred in 2018 and 2019.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said relatively poor Philippine integration might in part have been brought about by restrictions on foreign ownership preventing the country’s regulations from aligning with the region.

“There are also some constraints on the further integration of financial markets such as the need to further harmonize financial market/banking regulations,” he said in a Viber message.

“Competitiveness (is) also relatively lower such as the ease of doing business relative to the other countries.”

UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the Philippines has been more integrated with the Association of Southeast Asian Nations (ASEAN) than before.

“If we indeed have fallen behind, then, this is the most wonderful opportunity to improve integration efforts (because there are literature affirming the impact of economic integration on economic growth),” he said on Viber.

“This said ‘falling behind’ should be known and heard by our (presidential) candidates so that they will know how to help the country and incorporate it in their respective platforms.” — Jenina P. Ibañez

Fruitas to acquire Surehealth in foray into healthcare business

November 9, 2021 | 12:07 am

FRUITAS Holdings, Inc. will buy 100% of shares of Surehealth Multi-Specialty and Diagnostic Clinic Corp. — FACEBOOK.COM/SUREHEALTHCLINICS

LISTED food and beverage store operator Fruitas Holdings, Inc. entered an agreement to acquire 100% of shares of its healthcare provider, Surehealth Multi-Specialty and Diagnostic Clinic Corp. to take advantage of the growing demand for healthcare services in the Philippines.

Fruitas will acquire 100% of Surehealth under the agreement, which will include its assets like medical equipment, specialized manpower, and a physical clinic at Sta. Mesa in Manila.

“The transaction is subject to execution of definitive agreements and closing is expected within two months. Consideration will be paid thru cash and is below 10% of the total assets and book value of Fruitas as of June 30, 2021,” the company said in a disclosure to the stock exchange on Monday.

Fruitas said its chief financial officer and treasurer, Juneil Dominic P. Torio, was “not involved in the evaluation of the potential acquisition” as his mother Maxima Torio is the president and a shareholder of Surehealth Clinic.

“The acquisition enables Fruitas to provide medical diagnostic services apart from the current products we offer,” Fruitas President and Chief Executive Officer Lester C. Yu said in a statement on Monday.

“We are extremely excited to enter the healthcare industry to further encourage a healthy lifestyle among our customers,” he added.

Surehealth, which was established in 2007, is a private medical and diagnostic clinic providing services for firms in the airline support industry, construction, and logistics through medical pre-employment packages, annual physical examinations, and medical laboratory tests for its clients’ work force.

It is also the listed company’s health service provider amid the pandemic.

“With Surehealth’s services, Fruitas has not had a single case of local transmission and had zero COVID-19 (coronavirus disease 2019) casualty since day one of the pandemic,” Mr. Yu said.

“Fruitas has also established its own quarantine and isolation facility to aid its work force during these trying times and we were successful against the dreaded virus.”

Fruitas shares closed unchanged at P1.35 apiece on Monday. — Keren Concepcion G. Valmonte

Robinsons Land net profit up 38% in Q3

November 9, 2021 | 12:06 am

GOKONGWEI-LED Robinsons Land Corp. (RLC) said its net income in the third quarter improved by 38% year on year to P990 million on the back of improved operating conditions.

“We sustained business recovery despite the reimposition of stricter quarantine restrictions in August,” RLC President and Chief Executive Officer Frederick D. Go said in a statement on Monday.

“As we head into the last quarter of the year, we are encouraged by the waning number of COVID-19 (coronavirus disease 2019) cases in the country, the progress of the government’s vaccination program, and increased mobility,” he added.

RLC’s net profit surged 47% to P6.44 billion in the first nine months, while its consolidated revenues climbed 41% to P30.88 billion from P21.94 billion year on year.

The company said its malls business is “gaining momentum,” with third-quarter revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) improving by 8% and 14% year on year, respectively, due to the “improving business environment.”

RLC launched Robinsons Place La Union in September, which is the company’s 53^rd lifestyle center and its third in the Ilocos Region. Meanwhile, Robinsons Place Tacloban was reopened after its rehabilitation.

Robinsons Malls booked revenues worth P6 billion in the first nine months, while its EBITDA totaled P2.84 billion.

Meanwhile, Robinsons Offices’ third-quarter revenues grew by 10% year on year to P1.56 billion. RLC said it “sustained its stable topline results,” with a 5% increase year on year to P4.66 billion in the first nine months.

In the first nine months, Robinsons Offices completed Cyber Omega in Pasig’s Ortigas Center and Bridgetowne Campus One, which is located at RLC’s Bridgetowne Destination Estate. The company said two more projects, Cybergate Iloilo 1 and Cybergate Galleria Cebu, are expected to be completed by yearend.

RLC had an office portfolio spanning 649,000 square meters (sq.m.) in net leasable area at end-September, 93% of which are leased.

On the other hand, revenues from Robinsons Logistics and Industrial Facilities grew by 24% to P187 million, owing to the current e-commerce market and the “steady demand” for warehousing facilities. It currently has five industrial facilities, which are located in Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando in Pampanga, and Calamba in Laguna.

“Encouraged by the consistent performance of this business, RLC is looking to infuse select industrial assets including land into its wholly owned subsidiary Robinsons Logistix and Industrials, Inc., or RLX, via a tax-free property-for-share swap,” RLC said.

Meanwhile, its property development business sold over 2.6 hectares of its 31-hectare Bridgetowne Destination Estate to Shang Robinsons Properties, Inc. and RHK Land Corp.

“The investment from the two of the most respected and recognized real estate names in Asia, during this time of economic uncertainty, exemplifies a vote of confidence in the estate’s future growth prospects,” Robinsons Land said.

RLC’s hospitality business saw revenues surge 60% year on year in the third quarter, generating P314 million. The company also launched its Grand Summit Hotel General Santos last month.

Robinsons Hotels and Resorts is “capitalizing” on the demand for quarantine facilities and long-stay accommodations.

Meanwhile, for its China business, RLC realized revenues worth P10.51 billion from its Chengdu Ban Bian Jie project after handing over condominium units from the first phase. It has also recovered 89% of its invested capital in the project with the repatriation of $200 million.

The company said the project is already 95% sold out.

Robinsons Land said it has spent 89% of its capital expenditure budget earmarked for the year, which were used for its malls, offices, hotels, industrial facilities, destination estates, residential projects, and for land acquisition.

The company plans to boost capital spending using proceeds from the P23.5-billion initial public offering of its real estate investment trust (REIT), which made its market debut in September.

REIT UNIT BOOKS PROFIT
RLC’s REIT, RL Commercial REIT, Inc. (RCR), booked a net income of P633.79 million in the first nine months ending September, a reversal of the net loss worth P18,950 incurred a year ago.

“This net income surge is mainly attributable to the earnings generated from two months of commercial operations covering Aug. 2 to Sept. 30, 2021,” RCR said in a separate disclosure to the exchange.

“[This is after] the infusion by the sponsor to the company of 12 office assets via [a] property-for-share swap and from the Cybergate Center Buildings under a building lease arrangement with the sponsor,” it added.

RCR booked a topline of P719.49 million for the period. Rental income accounted for the majority of its revenues at P585.55 million.

RCR currently has an asset size spanning 425,315 square meters (sq.m.) of gross leasable area (GLA).

RLC, its sponsor, plans to infuse one or two assets yearly into RCR. RLC previously said it is eyeing to add 40,000 to 100,000 sq.m. of GLA into RCR’s portfolio in the next 18 months. Its potential pipeline for infusion stands at approximately 422,000 sq.m. of GLA. RCR will also consider third-party assets for its growth and expansion.

Shares of RLC went up by 2.77% or 0.52% on Monday to close at P19.32 each, while RCR stocks declined by 1.80% or 13 centavos to end at P7.08 apiece. — Keren Concepcion G. Valmonte

Gov’t makes full award of T-bill offering at slightly higher rates

November 9, 2021 | 12:05 am

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it auctioned off on Monday even as rates inched up amid improved economic prospects as coronavirus disease 2019 (COVID-19) cases drop.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it offered on Monday as total tenders reached P42.52 billion, almost triple the initial offer and higher than the P41.78 billion in bids logged in the previous auction.

Broken down, the BTr raised P5 billion as planned via the 91-day debt papers from P14.53 billion in bids. The three-month T-bills fetched an average rate of 1.143%, up by 1.3 basis points (bps) from the 1.13% seen at last week’s offering.

The BTr also borrowed P5 billion as programmed from the 182-day securities it offered on Monday as tenders reached P15.26 billion. The average yield of the six-month debt paper rose 0.6 bp to 1.401% from 1.395% fetched last week.

Lastly, the government made a full P5-billion award of the 364-day T-bills as the tenor attracted bids worth P12.73 billion. The average rate of the one-year instrument stood at 1.616%, up by 0.3 bp from the 1.613% a week ago.

At the secondary market prior to the auction, the 91- 182- and 364-day T-bills were quoted at 1.2164%, 1.4427% and 1.655%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that the BTr did not see a significant rise in rates after inflation decelerated.

She added that there was no market tantrum after the US Federal Reserve’s taper announcement last week.

Headline inflation in October settled at 4.6%, slower than the 4.9% median estimate of 21 analysts in a BusinessWorld poll.

The October figure was slower than the 4.8% in September, but faster than 2.5% a year earlier. Still, this was the third straight month inflation exceeded the 2-4% target of the Bangko Sentral ng Pilipinas (BSP) for the year. Inflation has topped the BSP target this year except in July.

This brought headline inflation for the first 10 months to 4.5%, faster than the 4.4% forecast by the central bank for the year.

Meanwhile, the Fed last week announced the start of the reduction of its $120-billion monthly asset purchases at $15 billion per month.

Fed Chairman Jerome H. Powell added they could stay patient and keep rates low to support the economy as the job market remains weak.

On the other hand, a bond trader said demand for T-bills remained strong but waned compared with tenders seen in the last few months.

“The rise in short term yields may be attributed to better economic prospects as more industries reopen given the drop in COVID-19 cases onshore,” the trader said in a Viber message.

“So with the economic reopening, some of the excess liquidity in the system that were placed in the short end of the curve during the lockdown may have been deployed to riskier or higher yielding assets…with the continued threat of an elevated inflation backdrop,” the trader added.

The Department of Health on Sunday reported 2,605 new COVID-19 infections. Daily cases could fall below 1,000 by the end of the month, OCTA research said.

On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and eight months.

The Treasury plans to raise P200 billion from the domestic market in November: P60 billion via weekly T-bill auctions and P140 billion from weekly offers of T-bonds.

The government wants to borrow P3 trillion from local and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez

SM Prime books higher net income in Jan.-Sept.

November 9, 2021 | 12:05 am

SM Prime Holdings, Inc. booked a net income of P15.6 billion in the first nine months of 2021, up by 9% from the P14.4 billion logged in the same period last year despite lower consolidated revenues.

The company’s topline for the period inched down by 6% to P56.8 billion from last year’s P60.7 billion, it said in a disclosure to the stock exchange on Monday.

Its residential business, which is led by SM Development Corp. (SMDC), accounted for 56% of SM Prime’s consolidated revenues with P32.1 billion. However, this is lower by 6% compared to its P34.2-billion contribution last year.

SMDC’s reservation sales got a boost from its improved online presence and continued construction of projects, resulting in a 14% increase to P76.3 billion in the nine-month period from P66.7 billion last year.

Meanwhile, its Philippine mall business logged revenues worth P15.8 billion, making up for 28% of SM Prime’s consolidated revenues. SM Prime said this is 14% less than its nine-month contribution worth P18.3 billion last year after the government reimposed strict mobility restrictions.

Its China mall business, on the other hand, posted a 28% revenue increase to RMB0.59 billion from last year’s RMB0.46 billion.

SM Prime’s commercial properties logged P3.8 billion, while its hotels and convention centers recorded a P900-million revenue in the period.

“SM Prime continues to develop new ways and solutions in its businesses by developing sustainable programs that provide safe and secure environment for all of its stakeholders,” SM Prime President Jeffrey C. Lim said in a statement. “This is in line with our anticipation of welcoming more people in our establishments, primarily in our malls and other commercial facilities… this coming [holiday] season.

Shares of SM Prime went up by 0.83% or 30 centavos to close at P36.30 apiece on Monday. — Keren Concepcion G. Valmonte

Red Notice: Twists and turns, comedy and a little dancing

November 9, 2021 | 12:05 am

NETFLIX’S new action-comedy Red Notice is a story of odd bedfellows starring Dwayne “The Rock” Johnson, Gal Gadot, and Ryan Reynolds — who not only jumped at the chance to work with old friends, he wrote jokes for the film.

It follows FBI’s top profiler John Hartley (played by Mr. Johnson) who finds himself forced to partner with the world’s greatest art thief, Nolan Booth (played by Mr. Reynolds), in order to go after the world’s most wanted art thief called “The Bishop” (played by Ms. Gadot). The adventure takes the trio around the world, where they are trapped in a secluded prison, in a coliseum dungeon, and a jungle.

At an online press conference with media from Asia on Nov. 5, Ryan Reynolds said that he jumped at the chance to work with old friends in the industry.

“I got to jump in the sandbox with some friends I’ve known for a long time and have fun,” Mr. Reynolds said. “It’s not every day that you get to do that. And sometimes you forget this job is fun.”

In the film, the Canadian actor plays a witty con artist who tries to outsmart the most wanted art thief to take possession of an Egyptian artifact.

“I love his mischief. I love that he’s a rascal, and I love that you never can’t ever trust him,” he said of his character.

Mr. Reynolds’ involvement in the film goes beyond acting in front of the camera, he actually wrote jokes for the movie. “I write eight or nine options for each joke, and I leave it to the editor and the director just to decide which ones they feel are suitable for the movie. So, I like to give them a whole bunch of options,” he said.

But writing jokes is not an easy task.

“I think humor and wit in movies are byproducts of personal pathos. I think you can’t really have any understanding of the dynamics of comedy unless you sort of understand its opposite…,” Mr. Reynolds said.

“Comedy is very challenging art form and I have a great deal of reverence and respect for it. I think I always will. I’m always trying to grow and learn more. I really, really do owe a lot, a huge debt of gratitude, to those who’ve come before me and [when] I grew up,” he added, citing comedians such as Steve Martin, Eddie Murphy, and Gene Wilder.

Israeli actress Gal Gadot liked the idea of playing a villain — something different from most of her roles.

“As an actor, you want to be able to explore different colors and different qualities in the characters that you play. And this one certainly gave me this opportunity. I super enjoyed portraying The Bishop,” Ms. Gadot said in a separate online press conference with Asian media alongside Mr. Johnson.

Ms. Gadot and Mr. Johnson highlighted a dance scene as one of the memorable sequences in the movie to shoot.

“And I kept on telling [Mr. Johnson], we [have to] practice we’re [going to] rehearse. And he was super cool. [He] kept on calming me down saying, ‘Don’t worry. This is going to be great.’ And of course, that just made me more nervous. But then he showed up and this guy is a ballerina,” Ms. Gadot said.

“It all comes down to the dance partner you have,” Mr. Johnson remarked afterwards.

Alongside the action and comedy are surprise twists and double-crosses.

Giving credit to the film’s writer and director Rawson Marshall Thurber, Ms. Gadot said, “I think that [Mr. Thurber] really managed to re-engineer this type of heist movie. He managed to make it [his] own, as much as he got inspirations from different movies from the past.”

“We wanted to make a great movie and I think a lot of times with something like this, the content of the script really will dictate a lot of times what the set is [going to] feel like,” Mr. Johnson said. “The movie is big, [it’s] fun, [it’s] ambitious. As Gal said, with some twists and turns and surprises and but we had a great time.”

The cast also includes Ritu Arya and Chris Diamantopoulos.

Red Notice premieres on Netflix on Nov. 12. — Michelle Anne P. Soliman

New regional green bond index rules to take effect in March 2022

November 9, 2021 | 12:04 am

NEW RULES on green bond investments will take effect in March next year. — BW FILE PHOTO

MEMBERS of the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) will adopt new rules on green investments through the Asian Bond Fund (ABF) by March 2022 to boost sustainable investments in the region.

“The EMEAP believes this initiative will help catalyze further deepening of local currency-denominated bond markets, in particular green bond markets in the region,” EMEAP said in a statement.

EMEAP members include the Bangko Sentral ng Pilipinas (BSP), Reserve Bank of Australia, People’s Bank of China, Hong Kong Monetary Authority, Bank Indonesia, Bank of Japan, Bank of Korea, Bank Negara Malaysia, Reserve Bank of New Zealand, Monetary Authority of Singapore and Bank of Thailand.

Earlier this year, the group tapped IHS Markit, the index administrator of the iBoxx ABF Index, to review the rules of the Index to promote the inclusion of green bonds.

In response, the IHS Markit clarified the definition of green bonds depending on whether they are recognized as such by the Climate Bonds Initiative or are self-labeled and externally reviewed as green in alignment with the Green Bond Principles of the International Capital Market Association.

The review also resulted in IHS Markit setting a lower minimum outstanding notional threshold for sub-sovereign green bonds issued in different markets.

Lastly, IHS Markit revised the sub-sovereign issuer limit to 10% per issuer in each single market index, from the current limit of 5 bonds per issuer.

These new rules will be effective by March 22, the EMEAP said.

“The EMEAP believes this initiative will help catalyze further deepening of local currency-denominated bond markets, in particular green bond markets in the region,” it said.

Based on the review, weights of markets in the region under the iBoxx ABF indices were also recalculated.

The market weight of the Philippines under the iBoxx ABF Pan-Asia index for 2021 effective Oct. 31 is at 6.65%, up by 5 basis points (bps) from 6.6% in 2020. Despite the increase, this is still the smallest among markets that include China (25%), Hong Kong (8.15%), Indonesia (8.24%), Malaysia (11.49%), Singapore (15.76%), South Korea (15.18%), and Thailand (9.53%).

The Philippines market weight in 2021 under the iBoxx Asia ex-Japan index also up by 5 bps from last year at 6.57%, also effective Oct. 31.

“The EMEAP will continue to explore ways to further contribute to the development of the local currency denominated bond market,” it said.

The BSP is continuing its push for a regulatory framework that supports sustainability. Earlier this month, it released Circular 1128, the second phase of its sustainable finance framework launched in 2020, which directs banks to monitor their environmental and social risks in their credit exposures and business operations.

BSP Governor Benjamin E. Diokno said the central bank’s investment in green bonds could reach $1 billion in the next two years.

To date, it has poured in $550 million into the green bond fund of the Bank for International Settlements, of which $200 million was placed earlier this year. — L.W.T. Noble

Kia planning to bring electric vehicles into the country soon

November 9, 2021 | 12:04 am

KIA Philippines is planning to bring electric vehicles (EVs) into the country in the near term.

“Yes, there is a plan to bring two general types of vehicles, on top of the regular models that we have, which are the purpose-built vehicles and EVs. The EVs are of high interest now,” Kia Philippines President Emmanuel A. Aligada said in a virtual briefing on Monday.

Mr. Aligada said the introduction of EVs into the country will depend on the development of the infrastructure and ecosystem that will support these vehicles, such as charging stations.

“It is very simple from a technology standpoint. But it is the support capabilities that are needed. It is not going to happen immediately. We are looking probably at some level of development next year and the pace of introduction for our EV models will depend on the development of that ecosystem,” Mr. Aligada said.

“EVs cannot be plugged into just any outlet. That is the kind of technology we hope to bring into the country. We have technical people outside of Kia Philippines that will be working with us on this,” he added.

Kia Philippines Product Strategy and Planning Director Josh Altarejos said the purpose-built vehicles the company is planning to bring into the country will focus on moving cargo or people.

“These will be all new. These will not be based on any current model. The purpose-built vehicles are focused on looking from the customers’ perspective based on their needs,” Mr. Altarejos said.

Mr. Aligada added that the purpose-built vehicles do not have a definite design and can be configured based on the preferences of consumers.

“There are models that can be configured but there is no definite design. It will be applicable to the requirements for the purpose of the vehicle,” he said.

Meanwhile, Mr. Aligada said the company is confident of future market demand, citing the ongoing reopening of the economy.

“Things are getting better now. We hope the usual fourth quarter run-up will continue and that should continue until 2022. There is also an important event in May 2022, which is usually characterized by active economic activity,” Mr. Aligada said.

During the same virtual briefing, Kia Philippines also launched the all-new fourth generation Kia Sorento and the Kia Stonic Style Edition.

The company said the price of the new Kia Sorento starts at P2.398 million while the Kia Stonic Style Edition is priced at P895,000.

Kia Philippines also introduced a new logo, look, and slogan dubbed “Movement that inspires” for a new brand philosophy.

“Our brand’s purpose is to create spaces that will inspire consumers through our product design. To create more time for consumers so they can focus on what inspires them, and what they aspire for. To create innovative experiences that can influence people and today’s culture,” Mr. Aligada said. — Revin Mikhael D. Ochave

‘A self-portrait in songs’: Paul McCartney looks back on his lyrics

November 9, 2021 | 12:04 am

LONDON — From looking for inspiration on the bus to finding titles in dreams, Paul McCartney looks back on his life in a new book recounting how he wrote some of the world’s most famous songs.

Described as “a self-portrait in 154 songs,” The Lyrics: 1956 to the Present spans Mr. McCartney’s eight decades of songwriting — as a teenager, a member of the Beatles, his time with rock band Wings, and as a successful solo artist.

Released this week, the two-tome set is arranged alphabetically, with lyrics to songs like “Hey Jude,” “A Hard Day’s Night,” and “Penny Lane” accompanied by their inspiration.

“Once I’ve finished a song, then you release it to the world so I don’t worry what happens to it,” Mr. McCartney said on Friday at an event to discuss the book.

“I’ve come to terms with the fact that not everyone is going to get it like the meaning I had, they’re going to put their own meanings on it and I think you have to accept that.”

Both the late Beatle John Lennon, with whom Mr. McCartney wrote songs, and his first wife Linda McCartney, who died in 1998, feature heavily in the book.

“It was always great to work with John from the very first time … We just developed a way of working with each other and trusting each other that grew and grew,” he said.

“We grew up together. It was like walking up a staircase and we both went side by side… It is great to just realize how much I loved this man.”

Considered one of the greatest songwriters of all time, Mr. McCartney penned his first composition, “I Lost My Little Girl,” as a 14-year-old after his mother died in 1956.

Years later, it was dream of her comforting him that inspired the title for “Let It Be.”

“She was just sort of saintly … just saying to me ‘it’s going to be ok, just let it be’,” he said.

“It was very warming to have that dream, I felt great when I woke from it and then thought that’s a great title.”

The book recalls his hometown Liverpool and inspiring family members. Edited by poet Paul Muldoon, it is also filled with pictures, handwritten drafts, and letters.

Mr. McCartney recently said it was Mr. Lennon who had instigated the world’s most famous group to split in 1970, not him.

“The biggest misconception at the end of the Beatles was that I’d broken the Beatles up and I lived with that for quite a while,” he said.

Asked about the price of fame, Mr. McCartney, 79, said; “Your privacy … I had to cope with what (fame) brought. That’s still what I’m still doing, coping.” — Reuters

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