Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 5893

PDO launches township project in Batangas

PUEBLO DE ORO Development Corp. is developing a 42-hectare township in Malvar, Batangas. — COMPANY HANDOUT

THE PROPERTY development arm of the ICCP Group launched a 42-hectare township project in Malvar, Batangas.

In a statement, Pueblo de Oro Development Corp. (PDO) said Townscapes Malvar will complete the ICCP Group’s 212-hectare “live-work” community development in Batangas.

The project will be composed of exclusive residential subdivisions, five hectares of commercial area and an educational hub. The masterplan was done by architectural firm Pomeroy Studios, whose works include the Kallang Alive in Singapore and BSD Digital Hub in Indonesia.

PDO said Townscapes Malvar is adjacent to a 170-hectare industrial park for light manufacturing that is being developed by Science Park of the Philippines, Inc. (SPPI). SPPI is also a member of the ICCP Group.

“The goal of Pueblo de Oro is to create a landmark in the heart of Batangas, with a vibrant and green mixed-used township inspired by Southern Luzon’s urban charm,” PDO President and Chief Operating Officer Prim Nolido was quoted as saying in a statement.

Townscapes Malvar is accessible via the Southern Tagalog Arterial Road (STAR), just few minutes from Malvar Exit.

“Malvar, Batangas is also an ideal location because of its proximity to the Batangas International Port, which has attracted manufacturing and industrial companies to locate in the province, thereby providing employment opportunities,” Mr. Nolido said.

He noted areas south of Metro Manila have benefitted from the increasing number of families relocating from the capital during the pandemic.

PDO will develop the 15-hectare Pueblo de Oro Residences and 12-hectare Pueblo de Oro Townhomes within Townscapes Malvar. — Cathy Rose A. Garcia

Maynilad warns of water interruptions due to gov’t flood control project

CONSUMERS being served by Maynilad Water Services, Inc. are set to experience water interruptions later this month due to a flood control project of the government, the west zone concessionaire said on Monday.

Ronaldo C. Padua, Maynilad water supply operations head, said in a virtual briefing that the water interruption will range from 25 to 85 hours and will begin on Oct. 25 (11 a.m.) up to Oct. 28 (11:59 p.m.).

Affected customers will be those situated in parts of Las Piñas, Makati, Manila, Parañaque, Pasay, as well as parts of Cavite province such as Bacoor, Cavite City, Imus City, Kawit, Noveleta, and Rosario.

“Around 28% or 421,000 water service connections (WSC) of Maynilad’s total 1.5 million WSCs will be affected. This involves about 2.9 million customers. Of these, some 60,000 WSCs or around 420,000 customers in Sampaloc, Manila will have no water for three consecutive days,” he added.

Mr. Padua said the interruptions will be caused by the realignment of Maynilad’s existing pipeline along Sobriedad corner Cristobal St. in Sampaloc to give way for the government’s flood control project.

The project under the Department of Public Works and Highways (DPWH) involves the installation of a drainage line along Cristobal St. It aims to address flooding issues in Manila. “The affected pipeline will be cut and will be replaced with a cross-under pipe to allow the drainage line to be installed by the DPWH. Due to the massive size of the affected water pipeline, which is seven feet in diameter, its realignment will take almost four days or 85 hours,” Mr. Padua said.

Further, Mr. Padua said the water concessionaire will conduct other activities such as leak repairs and maintenance works in several pumping stations while the service interruption caused by the pipe realignment is ongoing.

Maynilad will deploy 60 mobile water tankers and install 14 stationary water tanks to serve customers in areas that will experience three straight days of interrupted water service.

It added that local government units and local fire bureaus were tapped to augment the number of water tankers that can deliver water to affected areas.

Maynilad also urged its customers to store enough water for the duration of the water service interruption to reduce inconvenience.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Salient points of HB 10107

HOUSE Bill 10107, or the Philippine Creative Industries Development Act, defines creative industries as “trades involving persons, whether natural or juridical, that produce cultural, artistic, and innovative goods, products, and services, where such goods and services originate in individual creativity, skill, and talent and have a potential to create wealth and livelihood through the generation and utilization of intellectual property.”

It also defined the creative industry domains as the following: audiovisual media, digital interactive media, creative services, design, publishing, and printed media, performing arts, visual arts, traditional cultural expressions, and cultural sites.

Section 3 of the measure mandates the creation of the Philippine Creative Industry Development Council which will be attached to the Department of Trade and Industry (DTI). The Council will be composed of 17 members: nine regular members from the private sector who will represent each creative industry domain, and eight ex officio members from government agencies — the Departments of Education (DepEd), Science and Technology, Tourism, Information and Communications Technology, and of Trade and Industry; the National Commission for Culture and the Arts (NCCA), Intellectual Property Office of the Philippines, and Commission on Higher Education (CHED).

The nine private sector representatives must be nominated by private sector groups to the Department of Trade and Industry (DTI) through valid endorsement letters signed or attested to by the group’s members and/or officers. The DTI will then create a shortlist from which the President of the Philippines will appoint the private sector representatives in the Council.

The obligations of the Council include defining each creative industry’s economic goals and performance monitoring, and maintaining a database about the sector.

Among its functions, the private sector representatives shall oversee the promotion, distribution, and export of the creatives’ outputs, protection of their intellectual property, endorsement to the DTI of prospective multi- and bi-lateral international trade agreements, and the issuance of guidelines and criteria in identifying the persons and stakeholders for aid from the State in times of national emergency.

Under Sec. 5, the creation of a Creative Workers’ Welfare Committee which is a standing committee attached to the Council which “shall ensure that creative freelancers and creative workers have access to sustainable and dignified livelihood in the creative industries.”

“The Creative Industries in the bill are defined broadly enough to cover all workers and freelancers in the sector. Thus, all the programs institutionalized in the bill are envisioned to benefit them as well,” the bill’s backer, Pangasinan 4th District Rep. Christopher “Toff” de Venecia, said in an e-mail to BusinessWorld.

“It should be noted though that most of the programs in the bill are reserved for members of business support organizations and/or creative workers associations. This means that freelancers and workers must belong to at least one creative organization to receive the proposed benefits and incentives,” he explained. “This was an intentional principle behind the bill since the authors believe that creative stakeholders must band together in groups for purposes of representation, mutual aid, and enjoying other forms of support.”

Meanwhile, Sec. 18 states the establishment of a Creative Educational Plan by the National Government Agencies such as the DepEd, CHED, and Technical Education and Skills Development Authority (TESDA) for education, scholarships, and technical skill development programs in the arts and creative sectors.

Through the House Bill’s The Creative Industry Development Fund, Special Account in the General Fund with the National Treasury shall be established. Referred to as the Fund, it is for the purpose of for research and development, marketing and trade promotion, human resource development, programs for the welfare of artists, workers and other stakeholders through accredited business support organizations and creative workers associations.

An appropriation of P5 billion in the House Bill’s earlier drafts was removed and its budget will be allotted in accordance with the annual General Appropriations Act to ensure that the programs in the measure have a legal basis for funding.

“As an attached office to the DTI, the Council will be given its chance to propose its annual budget to the Department of Budget and Management (DBM) for inclusion in the National Expenditure Program, and then to lobby to Congress during budget deliberations,” Mr. De Venecia said. — MAPS

SMDC plans to unveil 5 more projects before end-2021

SM Development Corporation President Jose Mari Banzon

SM DEVELOPMENT Corp. (SMDC) is expected to launch five new developments by the end of the year, as it bets on strong demand from young workforce and overseas Filipino workers (OFWs).

In a statement, SMDC President Jose Mari Banzon said there will be “no letup” in the company’s commitment to invest heavily in projects that address the needs of the market.

Despite the pandemic, he noted the real estate industry’s growth will continue to be driven by the current housing shortage and demand from young workers and OFWs.

“SMDC developed residential features designed to meet the multi-faceted needs of young Filipinos. The residential designs of our developments include powerful connectivity, shared working spaces, accommodating towards ride-sharing services and many features geared towards wellness, safety, and security — hallmark features of any modern living space,” he said.

Since the pandemic began last year, SMDC has launched ten projects located in central business districts such as Makati and the Mall of Asia (MOA) complex, and in growth centers around the country. These include a residential-office development known as ICE Tower, and SMDC JOY Residences, a garden community with four-floor residential buildings.

SMDC, which accounts for 60% of listed SM Prime Holdings, Inc.’s consolidated revenues, saw an 8% improvement in its operating income to P10.4 billion in the first half of 2021 from P9.7 billion a year ago.

Six-month revenues for SMDC jumped by three percent to P24.55 billion, as net reservation sales rose by 30% to P55.1 billion.

“Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the National Government,” the listed company said in an August statement.

Gov’t makes full award of T-bills

BUREAU OF THE TREASURY FACEBOOK PAGE

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as rates moved sideways after the country’s central bank chief said the regulator is unlikely to hike borrowing costs anytime soon.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Monday as total tenders reached P36.088 billion, more than double the initial offer but lower than the P46.594 billion in bids logged in the previous auction.

Broken down, the BTr raised P5 billion as planned via the 91-day debt papers from P8.68 billion in bids. The three-month T-bills fetched an average rate of 1.113%, up by 1.8 basis points (bps) from the 1.095% seen at last week’s offering.

The BTr also borrowed P5 billion as programmed from the 182-day T-bills as the tenor attracted tenders worth P16.868 billion. The average yield of the six-month instruments slipped 0.1 bp to 1.39% from 1.391% a week ago.

Lastly, the government made a full P5-billion award of the 364-day securities it offered on Monday as bids reached P10.54 billion. The average rate of the one-year T-bills stood at 1.604%, up by 1.7 bps from the 1.587% fetched last week.

It also opened its tap facility to raise an additional P3 billion via the one-year instruments.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that T-bill rates moved sideways after Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said over the weekend that raising rates “too early” would harm economic recovery.

On Monday, Mr. Diokno said in an interview with ANC that “there will be no policy adjustments between now and end of year.” The BSP has two meetings left this year.

Mr. Diokno added that the elevated inflation seen in recent months is transitory and is because of low supply.

Headline inflation stood at 4.8% in September, easing from the 4.9% recorded in August. For the first nine months, inflation averaged at 4.5%.

A trader added that T-bill yields were mixed on Monday due to Mr. Diokno’s comments about inflation.

“Mr. Diokno is clearly on the transitory side in terms of inflation, and he believes that inflation will remain manageable in the medium term,” the trader said.

“In fact, BSP expects inflation to be at midpoint of their 2% to 4% target in 2022 and 2023. That said, I think that gives them some room to keep their policy rates steady at least until this year to support the country’s fragile economic growth,” the trader added.

The BSP expects inflation to return to the 2-4% range and average at 3.3% and 3.2% in 2022 and 2023.

Meanwhile, a second trader said in a Viber message that T-bill rates moved sideways on the back of sustained demand as investors prefer to park their funds in short-term papers.

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

The BTr is looking to raise P200 billion from the local market this month: P60 billion from weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

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

2GO offers perks to vaccinated passengers

FACEBOOK.COM/2GOTRAVEL

TO BOOST domestic tourism, 2GO Group, Inc.’s 2GO Travel is offering a “free room upgrade” to fully vaccinated individuals.

2GO Travel, the group’s brand for its passage business, said in an advisory posted on its official Facebook page that it is offering “room upgrade promo” to all fully vaccinated passengers who will book and travel with the company.

“[2GO believes] that the key to local tourism recovery is for us to achieve herd immunity by getting vaccinated,” 2GO Travel said.

“We want to reward you for it,” it added.

Despite the pandemic crisis, 2GO Travel said it continues to connect Manila to all the major ports in Visayas and Mindanao.

2GO Group is also engaged in the cargo business through its brand 2GO Freight.

The listed company’s freight revenue for the first half of the year hit P1.58 billion, up 15.3% from P1.37 billion in the same period a year ago.

Meanwhile, travel revenue dropped 68.6% to P221.84 million from P706.50 million in the same period last year.

“Given the restricted mobility in and out of the country and the curtailed economic activities affecting demand not only in the Philippines but in other countries, 2GO experienced a decline and gradual recovery in sales/revenue volumes as aforementioned quarantine measures were slowly relaxed,” 2GO said in its second-quarter report. — Arjay L. Balinbin

China home sales plunge as Evergrande crisis deters buyers

REUTERS

CHINA’S residential property slump dragged on last month as the debt crisis at China Evergrande Group spread to other developers, keeping buyers away.

Home sales by value tumbled 16.9% in September from a year earlier, following a 19.7% drop in August, according to Bloomberg calculations based on National Bureau of Statistics data released Monday.

The property slowdown is one of many headwinds facing the Chinese economy, which saw growth slow last quarter, separate figures showed. Government efforts to curtail developers’ leverage has exacerbated a cash crunch at Evergrande that’s now spreading to other firms, prompting buyers to think twice about putting down deposits for homes that are yet to be built.

The sales slump may fuel a vicious cycle by worsening the cash shortage at developers and forcing them to offer bigger discounts. That in turn could reduce home prices in a country where people keep a large chunk of their wealth in real estate.

China’s central bank broke its silence on the Evergrande crisis last week, saying risks to the financial system stemming from the developer’s struggles are “controllable” and unlikely to spread. At a virtual meeting of the Group of 30 on Sunday, People’s Bank of China Governor Yi Gang said Evergrande’s liabilities were spread across “hundreds” of entities in the financial system so that there is “not much concentration.”

China’s government has been trying to rid the property sector of excess debt, based on the notion that homes are for living in rather than speculation. Yet carrying out that task is a delicate exercise in a country where the broader property sector makes up about 23% of gross domestic product, according to estimates by Goldman Sachs Group, Inc. 

Regulators have begun easing restrictions on home loans, a move that could help first-time buyers and boost transactions following an unprecedented cap on banks’ exposure to the real estate sector. Officials told some major banks last month to accelerate approval of mortgages in the fourth quarter, Bloomberg reported last week.

China’s developers have faced a wave of credit rating downgrades and now account for about half of the world’s distressed debt, according to data compiled by Bloomberg. Contagion fears intensified over the past two weeks after a surprise default by Fantasia Holdings Group Co. and a warning from Sinic Holdings Group Co. that its default was imminent. — Bloomberg

Quasi-banks’ NPL ratio hits 10.4%

BW FILE PHOTO
QUASI-BANKS’ nonperforming loan ratio rose year on year. — BW FILE PHOTO

SOURED DEBT held by quasi-banks picked up to P14.593 billion as of end-June for a 10.4% nonperforming loan (NPL) ratio, based on data from the Bangko Sentral ng Pilipinas.

These bad loans climbed 87.7% from the P7.776 billion seen in the same period of 2020. Quasi-banks’ NPL ratio as of end-June 2020 was at 5.8%.

Meanwhile, the gross loan portfolio of these quasi-banks increased 5% to P139.979 billion as of end-June from the P133.367 billion a year earlier.

Their nonperforming assets (NPA), which include real and other properties acquired, likewise rose 81.9% to P16.055 billion from the P8.825 billion a year ago.

Meanwhile, their restructured loans stood at P2.065 billion as of end-June, more than four times (360%) the P449 million seen in the same period of 2020. This brought their share in their entire loan book to 1.5% from 0.3% a year earlier.

As asset quality deteriorated, quasi-banks beefed up their loan loss reserves to P5.259 billion in the first half of the year, increasing by 90% from the P2.768 billion in the same period of 2020. These buffers are equivalent to 3.8% of their entire loan portfolio, up from 2.1% a year ago.

With this, their NPL coverage ratio stood at 36% as of end-June, improving slightly from the 35.6% a year earlier.

Meanwhile, quasi-banks’ allowance for NPAs reached P5.432 billion in the first semester, jumping 85.9% from the 2.923 billion in the same period of 2020.

This brought NPA coverage to 33.8% as of end-June, a tad higher than the 33.1% a year earlier.

Financial institutions with quasi-banking functions include financing companies and investment houses. — L.W.T. Noble

Premiere Horizon, LDA complete share deal

PREMIERE Horizon Alliance Corp. (PHA) on Monday said it received P71.54 million from global investment group LDA Capital Ltd. for its subscription to PHA’s shares.

The company said the subscription agreement was inked on Oct. 15.

“The funds will be used for the expansion of its projects in real estate through subsidiaries West Palawan Premiere and Goshen Land Capital, as well as new investments in fintech and mining,” PHA said in a disclosure to the exchange.

In July, PHA’s board of directors approved the put option agreement with LDA Capital to provide PHA up to P2.5 billion in committed equity capital within the next 36 months, which may be accessed through exercising put options. Premiere Horizon issued a put option notice on Aug. 12.

“LDA has remitted to PHA a total of P71,543,350 as full payment for the subscribed shares,” Premiere Horizon said, adding that LDA Capital’s investment “confirms its belief in the growth prospects of PHA.”

LDA Capital has subscribed to 70.835 million new PHA primary shares with a par value of 25 centavos for P1.01 apiece. The subscription price is said to be 90% of the average volume-weighted average price of PHA shares during the pricing period.

On Monday, PHA shares at the stock exchange went down by 2.47% or two centavos, closing at 79 centavos apiece. — Keren Concepcion G. Valmonte

Hollywood film-crew union reaches tentative deal, averting strike

NATHAN DEFIESTA/UNSPLASH

LOS ANGELES — A union that represents about 60,000 behind-the-scenes workers in film and television reached a tentative deal with producers on Saturday, averting a strike that threatened to cause widespread disruption in Hollywood, negotiators said.

The International Alliance of Theatrical Stage Employees (IATSE), which includes camera operators, make-up artists, sound technicians and others, said negotiators agreed to a new three-year contract.

“This is a Hollywood ending,” Matthew Loeb, president of the union, said in an e-mailed statement. “Our members stood firm. They’re tough and united.”

Shutdowns from the coronavirus disease 2019 (COVID-19) pandemic had caused a production backlog that led to crews working up to 14 hours a day to feed programming to streaming services.

The union had threatened to strike starting Monday if it was unable to reach an agreement with the Alliance of Motion Picture and Television Producers (AMPTP).

A strike would have shut down film and television production around the United States in the biggest stoppage since the 2007-2008 strike by Hollywood screenwriters. It would have hit a wide range of media companies including Netflix Inc., Walt Disney Co., and Comcast Corp.

IATSE was seeking to reduce working hours and raise the pay of members who work on shows for streaming platforms, where lower rates were set 10 years ago when online video was in its infancy.

IATSE, in its statement, said the proposed contract addresses those issues, including rest periods, meal breaks, a living wage for those on the bottom of the pay scale, and significant increases in compensation to be paid by new-media companies.

The new labor agreement is subject to approval by IATSE’s membership. —  Reuters

Most Asia-Pacific employees unaware of firms’ green initiatives — survey

A GROWING number of companies are undertaking sustainability efforts in the Asia Pacific region, but a survey recently found most workers are unaware of their employers’ green initiatives.

According to JLL Asia-Pacific’s “Sustainability in the built environment: An employee perspective” report, 65% of the respondents are not aware of their companies’ carbon reduction goals, and 60% said the companies do not involve them in green initiatives.

Around 70% of employees believe that offices can be highly impactful in reducing carbon emissions, while 90% see residential buildings as a “catalyst to enhance urban greenery.”

The online survey covered 1,200 employees, aged between 21 and 45, in the Asia-Pacific region.

“In their pursuit of sustainability, businesses in Asia Pacific must ensure that their corporate goals are closely aligned with the goals of their employees,” Anthony Couse, chief executive officer for JLL APAC, said.

According to the survey, seven in 10 employees believe that sustainability initiatives are a “must” for businesses, and 75% expect companies to adopt sustainable business practices.

“Sustainability has always been at the forefront of our business agenda in the Philippines. Our journey towards a work set up that combines freedom and flexibility started ahead of the curve, and we have long acknowledged that our efforts need to be centered on engagement, emotional well-being, and mental health,” Christophe Vicic, country head of JLL Philippines, said.

Bank of Japan’s extra goals help it play down inflation target, ex-official says

WIKIPEDIA.ORG

THE BANK of Japan (BoJ) will continue to diversify its goals so it can place less emphasis on achieving its price target, according to a former BoJ executive director.

“It’s become crystal clear that reaching the goal won’t by itself get the economy in its most desirable state,” Hideo Hayakawa, the former executive, said in an interview. “The target has become just one of a number of things the bank should be aiming for.”

The BoJ’s foray into supporting climate mitigation measures by companies is one example of the BoJ looking to fulfill new objectives while it struggles to generate price growth, Hayakawa said.

Mr. Hayakawa’s comments reflect both the continued failure of the central bank to achieve its inflation goal and the greater priority the BoJ has placed on stabilizing markets and keeping struggling firms in business during the pandemic. The remarks underscore the bank’s lack of appetite to go beyond its current measures to hit its inflation target.

The central bank is expected to keep policy on hold at a meeting ending Oct. 28, ahead of a general election. The BoJ will also release quarterly economic forecasts and is likely to consider sharply cutting its price forecast for the year ending in March, according to people familiar with the matter.

As European and US policy makers grapple with higher inflation, Japan’s weak price movements around zero stand out from other major nations, especially after more than eight years of Haruhiko Kuroda’s massive easing campaign, Mr. Hayakawa said.

While Mr. Kuroda has insisted that the bank remains completely committed to achieving 2% inflation target with aggressive stimulus, Mr. Hayakawa said it’s better to watch the bank’s actions rather than its words.

The BoJ has dramatically reduced the amount of asset purchases since the height of the pandemic crisis last year. It has bought only 873 billion yen ($7.6 billion) of exchange traded funds so far this year, about a quarter of what it purchased a year ago.

“The BoJ has been very clear if you look at what it’s doing,” said Mr. Hayakawa. “They are using quantitative easing to stabilize financial markets only when they get volatile in moments of crisis.”

The stimulus it employs to spark inflation, meanwhile, has been discreetly scaled back over the years with the March policy review that helped reduce ETF purchasing an example of the paring back, he said.

Mr. Hayakawa also said Japan’s consumer prices could rise above 1% next year once the heavy drag from cheaper cell phone fees falls out of inflation calculations. Even if inflation tops 1%, the BoJ is unlikely to declare victory and look to end its stimulus as he suggested it should, back in 2014. — Bloomberg

1...5,8925,8935,894...12,788Page 5,893 of 12,788
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube