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Cebu property market strengthens anew as the PropertyGuru Philippines Property Awards marks 10th year

Richard Raymundo, managing director of Colliers Philippines and a member of the independent judging panel of the 10th PropertyGuru Philippines Property Awards

Cebu, the most affluent province in the Philippines, is piquing the interest of property seekers and investors anew, according to industry experts with the PropertyGuru Philippines Property Awards.

Upmarket residential developments are now commanding high price points in Cebu as the pandemic reinvigorates demand nationwide for homes with bigger cuts. The rise of transport infrastructure developments has also unlocked real estate values across Cebu.

Today, Cebu is the biggest real estate location outside Metro Manila, with more than 1.3 million square meters (sq.m.) of leasable office space alone, according to data from Colliers Philippines. It is also the wealthiest province in the Philippines in both pure and net assets, according to a recent report from the Commission on Audit (CoA).

Richard Raymundo, managing director of Colliers Philippines and a member of the independent judging panel of the 10th PropertyGuru Philippines Property Awards, said: “With more players getting into the market, projects have evolved and improved in Cebu. We have seen regional malls built as the consumer market and its spending power has increased. Residential developments have also evolved from simple house-and-lot developments to luxury high-rise projects in the city and Mactan. Aside from the local market, it is also attracting investors from the VisMin region and even buyers from Metro Manila that are looking to diversify.”

Transport infrastructure projects are poised to benefit the property sector in Cebu. The newly opened Cebu–Cordova Link Expressway (CCLEX) is boosting interest in SRP (South Road Properties) with projects by PropertyGuru Philippines Property award-winning companies Ayala Land, SM, Filinvest and Robinsons developing in the area. Meanwhile, the new international airport in Mactan has magnified capacity for domestic and international flights into Cebu province, leading to more investments in leisure developments.

Mr. Raymundo said: “Just like the experience in Metro Manila with infrastructure developments unlocking land values and property prices, the recently completed and planned infrastructure projects would bode well for the real estate industry in Cebu. The new Cebu-Cordova Expressway is unlocking values and easing traffic going in and out of the airport into Cebu City. Moving forward, you will see an increase in the critical mass in the area and greater variety in land uses.”

Condominium prices have risen from P132,000 per sq.m. in 2012 to more than P400,000 per sq.m. in some of the most expensive villas in Mactan, with several national developers already launching high-end projects in the popular resort destination, according to Colliers Philippines.

Mr. Raymundo added: “As a result of the high land values in Cebu, high-rise residential is also a familiar development in Cebu. This has attracted major developers like Ayala Land, Rockwell, Filinvest, Megaworld, Robinsons Land, ArthaLand and HTLand to landbank and launch projects. Homegrown developers like Cebu Landmasters, Innoland and BF Paray have also found their niche in the market.”

The Gold Standard of Cebu real estate

Riding on such momentum of reinvigorated consumer sentiment, organizers of the PropertyGuru Philippines Property Awards are searching this year for properties that represent the Gold Standard of real estate in Metro Cebu and the wider Visayas region.

For its landmark 10th edition in 2022, the PropertyGuru Philippines Property Awards program seeks to recognize the archipelago’s finest real estate companies and projects across 82 categories, including the sought-after title of Best Developer (Visayas). Other awards at stake include Best Luxury Condo Development (Metro Cebu), Best High End Condo Development (Metro Cebu), Best Affordable Condo Development (Metro Cebu), and Best Housing Development (Metro Cebu).

The program is also looking for worthy contenders from Cebu and other world-class outsourcing destinations in the country for Best BPO Office Development.

“Cebu’s strategic location as an education hub in VisMin has meant a pool of talent that has attracted major BPOs and KPOs,” said Mr. Raymundo. “Aside from Cebu Business Park and IT Park, expect expansions in fringes and new mixed-use developments from national and homegrown developers.”

Cebu’s real estate and other major cities in the archipelago will be honored at the 10th PropertyGuru Philippines Property Awards, presented by Kohler and supported by Boysen Paints. Organized by PropertyGuru (NYSE: PGRU), Southeast Asia’s leading property technology company, the Philippines Property Awards will host its annual black-tie gala dinner and awards ceremony on Friday, Oct. 7, 2022 at the Fairmont Makati main ballroom.

Key dates for the 2022 edition:

5 August 2022 – Entries Close

22 August – 9 September 2022 – Site Inspections (physical)

5 – 9 September 2022 – Site inspections (virtual)

14 September 2022 – Final Judging

7 October 2022 – Gala Dinner and Awards Ceremony in Manila, Philippines

9 December 2022 – Regional Grand Final Gala Presentation

Nominations and entries are being accepted here: https://www.asiapropertyawards.com/en/nominations/.

A tradition of excellence

Founded on a tradition of excellence, the long-running program in the Philippines is part of the PropertyGuru Asia Property Awards series, now marking its 17th year.

For its 10th edition, the PropertyGuru Philippines Property Awards program is raising the Gold Standard of real estate with an array of new categories. They include the title of Best Luxury Developer, in addition to many never-before-presented Development categories: Best Completed Condo Development, Best Completed Housing Development, Best Connectivity Condo Development, Best Connectivity Housing Development, Best Waterfront Condo Development, Best Waterfront Housing Development, Best Branded Residential Development, Best Integrated WFH (Work From Home) Development, Best Pet-Friendly Residential Development, Best Health and Wellness Development, Best Eco-Friendly Condo Development, Best Eco-Friendly Housing Development, Best Eco-Friendly Commercial Development, and Best Smart Building Development.

Eligible entries to these and other categories are rigorously selected by an independent panel of judges, comprising industry experts in real estate consultancy, architecture and design, green building and sustainable development.

Marking its first decade of success, the most prestigious real estate awards program in the Philippines is chaired once again by Cyndy Tan Jarabata, president of TAJARA Leisure & Hospitality Group, Inc. She was the inaugural chairperson when the Philippines Property Awards debuted in 2013 and has remained on the judging panel since.

Supervised by HLB, the global network of independent advisory and accounting firms, the awards program makes full use of a professionally run and fully transparent judging system — establishing a reputation for fairness and transparency. The selection process this year is overseen by the team of Lloyd T. Tan, partner with Diaz Murillo Dalupan and Company — HLB Philippines, the official supervisor of the Awards.

Triumphant companies in Cebu

Cebu Landmasters, Inc. won 11 awards, including the titles of Best Developer (Visayas) and Best Developer (Mindanao), at the 9th PropertyGuru Philippines Property Awards in 2021. The Cebu-headquartered developer triumphed at last year’s Awards with a portfolio of innovative, ambitious projects across Metro Cebu, including Casa Mira Towers Mandaue, Patria de Cebu and Radisson Red.

The Suites at Gorordo, a project by Worldwide Central Properties, Inc. in Cebu, meanwhile clinched the coveted Best High Rise Condo Development (Philippines) award.

As part of the PropertyGuru Asia Property Awards series, main country winners of the 2022 PropertyGuru Philippines Property Awards may qualify to compete for regional honors at the 17th PropertyGuru Asia Property Awards Grand Final on Dec. 9 in Bangkok, Thailand.

Established in 2005, the PropertyGuru Asia Property Awards continue to reward high-calibre work within the industry, encompassing property development, construction, architecture, interior design, and sustainable building practices. The series has expanded over the years to cover the region’s dynamic property markets, including Australia, the Chinese markets, Japan, India, and Sri Lanka.

The PropertyGuru Asia Property Awards virtual gala series, which began streaming in 2020 and continued in 2021, has garnered around 1 million views to date across channels. The 2022 awards presentations are also scheduled to be streamed live on the same night as the physical gala dinners in each country.

The 10th PropertyGuru Philippines Property Awards is supported by platinum sponsor Kohler; gold sponsor Boysen Paints; official cable TV partner History Channel; official magazine PropertyGuru Property Report; official newspaper The Philippine Star; official PR partner FleishmanHillard Manila; media partners BusinessWorld, Esquire Philippines, and People Asia Magazine; official ESG partner Baan Dek Foundation; and official supervisor HLB.

For more information, email awards@propertyguru.com or visit the official website: AsiaPropertyAwards.com.

 


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Ukraine president expects Russia attacks to intensify with EU summit this week

President of Ukraine Volodymyr Zelenskyy/Flickr

 – Ukraine‘s President Volodymyr Zelenskiy predicted Russia will escalate its attacks this week as European Union leaders consider whether to back his country’s bid to join the bloc and Russia presses its campaign to win control of east Ukraine.

“Obviously, this week we should expect from Russia an intensification of its hostile activities,” Zelenskiy said in a Sunday nightly video address. “We are preparing. We are ready.”

Ukraine applied to join the EU four days after Russian troops poured across its border in February. The EU‘s executive, the European Commission, on Friday recommended that Ukraine receive candidate status. Read full story

Leaders of the 27-nation union will consider the question at a summit on Thursday and Friday and are expected to endorse Ukraine‘s application despite misgivings from some member states. The process could take many years to complete. Read full story

The EU‘s embrace of Ukraine would interfere with one of Russian President Vladimir Putin’s stated goals when he ordered his troops into Ukraine: to keep Moscow’s southern neighbor outside of the West’s sphere of influence.

Putin on Friday said Moscow had “nothing against” Ukraine‘s EU membership, but a Kremlin spokesperson said Russia was closely following Kyiv’s bid especially in light of increased defense cooperation among EU members.

On the battlefield, Russian forces are trying to take complete control of the eastern Donbas region, parts of which were already held by Russian-backed separatists before the Feb. 24 invasion.

A prime target of Moscow’s eastern assault is the industrial city of Sievierodonetsk. Russia said on Sunday it had seized Metyolkine, a village on the outskirts, and Russian state news agency TASS reported that many Ukrainian fighters had surrendered there. Ukraine‘s military said Russia had “partial success” in the area.

Luhansk Governor Serhiy Gaidai told Ukrainian TV that a Russian attack on Toshkivka, 35 km (20 miles) south of Sievierodonetsk, also “had a degree of success”.

In Sievierodonetsk itself, a city of 100,000 before the war, Gaidai said Russia controlled “the main part” but not the entire town after intense fighting. Reuters could not independently confirm the battlefield accounts.

Both Russia and Ukraine have continued heavy bombardment around Sievierodonetsk “with little change to the front line”, Britain’s Ministry of Defense said on Sunday.

In Sievierodonetsk’s twin city of Lysychansk, residential buildings and private houses had been destroyed by Russian shelling, Gaidai said. “People are dying on the streets and in bomb shelters,” he said.

 

‘WAR COULD LAST YEARS’

Analysts at the Institute for the Study of War, a Washington-based think tank, wrote in a note that “Russian forces will likely be able to seize Sievierodonetsk in the coming weeks, but at the cost of concentrating most of their available forces in this small area”.

NATO Secretary-General Jens Stoltenberg said the Ukraine war could last for years and urged Western governments to continue sending state-of-the-art weaponry to Ukrainian troops, Germany’s Bild am Sonntag newspaper reported. Read full story

“We must prepare for the fact that it could take years. We must not let up in supporting Ukraine,” Stoltenberg was quoted as saying.

Russia has said it launched what it calls a “special military operation” to disarm its neighbor and protect Russian speakers there from dangerous nationalists.

Ukraine and its allies dismiss that as a baseless pretext for a war of aggression.

In Ukraine‘s second-largest city, Kharkiv, northwest of Luhansk, Russia‘s defense ministry said its Iskander missiles had destroyed weaponry recently supplied by Western countries.

Russian forces were trying to approach Kharkiv, which experienced intense shelling earlier in the war, and turn it into a “front-line city”, a Ukrainian interior ministry official said. Read full story

The governor of Russia‘s Bryansk region said the border village of Suzemka had been shelled from northern Ukraine, and one person was wounded and a power station was damaged.

Ukraine‘s general staff said Russia had deployed an anti-aircraft missile division in Bryansk and had up to three battalion tactical groups were covering the border in the Bryansk and neighboring Kursk regions.

Towards Kharkiv, the Russians were trying to stop Ukrainian forces from advancing to the border, it added.

In southern Ukraine, Western weaponry had helped Ukrainian forces advance 10 km (6 miles) towards Russian-occupied Melitopol, its mayor said in a video posted on Telegram from outside the city.

Australia’s defense ministry said it had sent the first four of 14 promised armored personnel carriers to Ukraine, part of a $200 million aid pledge.

An EU decision in favor of Kyiv’s ultimate membership would put Ukraine on track to realize an aspiration that would have been out of reach for the former Soviet republic before the Russian invasion.

“Whole generations fought for a chance to escape from the prison of the Soviet Union and, like a free bird, to fly to European civilization,” the speaker of Ukraine‘s parliament, Ruslan Stefanchuk, said in a statement. – Reuters

China keeps lending benchmarks unchanged, wary of policy divergence risks

 – China stood pat on its benchmark lending rates for corporate and household loans, as expected, on Monday, with global central banks’ rate increases making it tough for Beijing to stimulate a weak domestic economy by lowering rates.

Markets widely believe that Chinese policymakers are wary of risks that the yuan will depreciate and capital outflows will be triggered if they embark on further monetary easing to underpin a COVID-19-hit economy at a time when other major economies are tightening their rates policies.

The one-year loan prime rate (LPR) CNYLPR1Y=CFXS was kept at 3.70%, and the five-year LPR CNYLPR5Y=CFXS was unchanged at 4.45%.

“Perhaps there is some reluctance in loosening monetary policy to support economic activity, which could reflect some caution in moving in the opposite direction to other central banks, particularly the Federal Reserve,” said Stephen Innes, managing partner at SPI Asset Management.

“It seems a matter of time, however, before there are larger liquidity injections and measures to boost credit.”

Central banks across Europe raised interest rates last week, some by a level that shocked markets, in the wake of the Fed’s 75 basis point hike to combat high inflation. Read full story

“While the PBOC has little to fear from a weaker currency – the renminbi remains extremely strong – the last thing it wants is to have to defend against a sharp, potentially destabilizing sell-off,” economists at Capital Economics said in a note earlier.

“That could plausibly happen if it lowered rates now when almost every other major central bank has turned much more hawkish.”

Divergent Sino-U.S. policies have wiped out China‘s yield advantage in April, triggering a record monthly tumble in the yuan CNY=CFXS. And a deeper inversion of U.S. and Chinese government-bond yields US10YT=RRCN10YT=RR could revive such depreciation pressure on the Chinese currency.

About 90% of traders and analysts in a Reuters survey last week expected China to keep both rates unchanged. Read full story

China lowered the five-year LPR, the benchmark reference rate for mortgages, by an unexpectedly wide margin last month, in a bid to revive the ailing housing sector to prop up the economy. Read full story

Most new and outstanding loans in China are based on the one-year LPR. The five-year rate influences the pricing of mortgages. – Reuters

Macau shuts most businesses amid COVID outbreak, casinos stay open

STOCK PHOTO | Image by Kon Zografos from Pixabay

 – The world’s biggest gambling hub Macau began its second day of mass COVID-19 testing on Monday after dozens of locally transmitted cases were discovered over the weekend, with most businesses shut but casinos remaining open.

The testing of Macau‘s roughly 600,000 residents is expected to end on Tuesday as the Chinese-ruled former Portuguese colony adheres to China’s “zero COVID” policy aiming to eradicate all outbreaks at just about any cost.

Most residents are asked to stay home, restaurants will be shut for dine-in and border restrictions have been tightened, meaning casino revenue is likely to be close to zero for at least a week and likely the coming weeks, analysts said.

Shares of Macau casinos tumbled on Monday morning with Sands China 1928.HK leading the slide falling over 8% the biggest decline since March 15.

MGM China 2282.HK, Wynn Macau 1128.HK, Galaxy Entertainment 0027.HK, Melco 0200.HK and SJM Holdings 0880.HK dropped between 4%-7%.

Macau‘s government relies on casinos for over 80% of its income, with most of the population employed directly or indirectly by the casino industry.

The latest outbreak came suddenly and has been spreading rapidly with the source still unknown, Macau‘s chief executive Ho Iat Seng said in a statement on the government’s website.

Macau‘s previous coronavirus outbreak was in October last year. An outbreak in the neighboring Chinese territory of Hong Kong this year saw more than 1 million confirmed infections, and more than 9,000 deaths, swamping hospitals and public services.

While Hong Kong has seen an increase to over 1,000 daily cases in the past week, officials have said they are unlikely to further tighten restrictions as the pressure on medical services has not increased.

Macau only has one public hospital and its services are already stretched on a daily basis. The territory’s swift plan to test its entire population comes as it keeps open the border with mainland China, with many residents living and working in the neighboring Chinese city Zhuhai.

China in contrast has not opened its borders to Hong Kong, with the financial hub largely isolated from the mainland and the international world.

Macau‘s legislature is this week due to approve an amended gaming law which will lay the groundwork for what is required from the multibillion dollar casino operators to continue operating. Read full story

“Depending on how quickly Macau is able to get the newest outbreak under control, there is risk of delay to finalization of the gaming law amendments and subsequent concession

tender process,” said Vitaly Umansky, analyst at Sanford C Bernstein. – Reuters

BusinessWorld Roundtable: “The View from the Starting Line”

On June 20, 11 a.m., BusinessWorld, the country’s most trusted business newspaper and multimedia content provider will be airing the virtual BusinessWorld Roundtable: “The View from the Starting Line” featuring the incoming Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla.

Listen to Mr. Medalla’s answers to the questions of BusinessWorld editors and journalists about BSP policy directions under the new administration, his plans and outlooks, and other important issues.

The BusinessWorld Roundtable: “The View from the Starting Line” will be shown for free on BusinessWorld’s Facebook page.

#BusinessWorldRoundtable is presented by BusinessWorld, with sponsors Metrobank, Tonik, Philippine Business Bank, Home Credit Philippines, Maybank Philippines, and Maya Bank.

Australian domestic airline demand strong but fuel prices a concern, bosses say

 – Qantas Airways QAN.AX and Virgin Australia have not seen any dent in domestic bookings from higher inflation and interest rates, but fares must rise to help them recover some of the cost of elevated oil prices, their chief executives said on Sunday.

Australia’s two biggest airlines are operating domestic capacity above pre-pandemic levels as demand rebounds, but Qantas has trimmed some flights for July and August to try to boost fares and could take more action, its chief executive said on the sidelines of an industry conference in Doha.

“We are seeing really strong demand internationally across the board and that is helping us recover oil prices in the international market,” Qantas Chief Executive Alan Joyce told reporters. “In domestic, we may need a little less capacity in the market to get that recovery and we are working through that at the moment.”

Virgin Australia Chief Executive Jayne Hrdlicka said her airline had put through two fare increases, but was warier of cutting capacity before it reached its target of 33% domestic market share, especially when demand was strong.

“Most months we’re 33% revenue share, but not quite 33% capacity share,” she told Reuters in an interview. “We’ll be carefully balancing a combination of capacity management and price increases.”

Virgin Australia was bought by U.S. private equity firm Bain Capital in 2020 and is no longer listed publicly.

Hrdlicka said it had returned to a profit in April and an IPO was likely as early as 2023, but the timing would depend on market conditions.

“Equity markets, as you know, are not in a great place at the moment,” she said. “So it will just depend on when there’s a good opportunity from a market standpoint.” – Reuters

[B-SIDE Podcast] Into the metaverse

Follow us on Spotify BusinessWorld B-Side

The metaverse, a virtual world that relies on technologies like artificial intelligence (AI) and blockchain, is seen as the next big thing by companies like Meta, as it is seen to change the way we work and connect with each other.

“It’s the virtual equivalent of being together. It’s going to be as close as possible to that,” John Rubio, country director of Meta Philippines, said at the BusinessWorld Virtual Economic Forum on May 26. “Imagine a world where you could go back to a different place in a different time and actually experience that. Imagine how immersive that could be.”

Carrying the theme “Revolutions 2022: Navigating the Changed World,” the two-day event highlighted the changes shaping the world after the pandemic.

This B-Side episode features the audio recording of Mr. Rubio’s fireside chat. Read the related story: “Metaverse touted as means to democratize access to technology.

Produced by Earl R. Lagundino and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

Uplifting the country’s SMEs and homegrown brands

In photo (L-R) are Lucien C. Dy Tioco, executive vice-president of PhilSTAR Media Group; Ramon M. Lopez, Secretary of the Department of Trade and Industry; host RJ Ledesma; Ara Mina of Hazelberry Café; Carrie Nakpil of Paymongo; Tim Yap of Yaparazzi; James Gasara of Rush Technologies; and Miguel G. Belmonte, president and chief executive officer of PhilSTAR Media Group, during the launch of “Nakakalocal: Love Local, Grow Global” at Casa Buenas in Newport City last June 15.

PhilSTAR Media Group launches ‘Nakakalocal’ initiative

By Josielyn Luna-Manuel, Special Features Editor

With the micro, small and medium enterprises (MSMEs) comprising 99.51% of the Philippines’ business enterprises which also employ about 63% of the country’s workforce, MSMEs are considered the backbone of the Philippine economy.

Aiming to put the spotlight on the country’s SMEs and proudly-made Filipino products, PhilSTAR Media Group (composed of The Philippine STAR, BusinessWorld, The Freeman, and Pilipino Star Ngayon) officially launched last June 15 its year-long advocacy program dubbed as “Nakakalocal: Love Local, Grow Global.”

“The COVID-19 pandemic greatly challenged almost all industries including the SME segment. But with determination, creativity and diskarte, Filipino SMEs have been striving to rise above the crisis and continue to keep their businesses alive and serve their customers in the best way they know,” said Lucien C. Dy Tioco, PhilSTAR Media Group’s executive vice-president.

He added, “As the country’s biggest print-based multimedia company, we in the PhilSTAR Media Group believe in the power of local SMEs to drive our economy forward and continue building our nation. We value the important role they play, we are so inspired by their extreme passion even amid a crisis, and we are in awe of their unmatched resilience. Through Nakakalocal, we are honored to use our multimedia platforms to give back to our SMEs, to empower them, to help them grow further, and to lead them to doors of many possibilities.”

This June and in the coming months, the PhilSTAR Media Group has prepared an exciting lineup of events that will encourage everyone to support the country’s SMEs and homegrown businesses, and provide learning opportunities for them. These include online features, fun bazaars, enriching talks, e-convention, and business pitching and mentoring, among others.

Department of Trade and Industry Secretary Mr. Ramon M. Lopez also graced the event and expressed support to the Nakakalocal initiative. He shared that there are 2.3 million registered and an estimated seven million unregistered MSMEs in the country and projects like DTI’s Go Lokal! and PhilSTAR Media Group’s Nakakalocal will definitely boost the Filipino MSMEs.

“Micro [enterprises] should not remain micro forever. Let’s help them grow bigger. There’s bayanihan now especially during the pandemic,” Mr. Lopez said, adding that private-partnership is really vital to help MSMEs bounce back from the challenges brought by the COVID-19 pandemic.

Celebrity entrepreneurs Tim Yap, founder of Yaparazzi Event + PR; and Ara Mina, founder of Hazelberry Café; as well as Carrie Nakpil, relations manager of fintech startup Paymongo; and James Gasara, chief growth officer of loyalty and eCommerce software service company Rush Technologies, participated in a panel discussion moderated by entrepreneur and host RJ Ledesma.

Panelists shared their entrepreneurship journey and gave pieces of advice for aspiring and current entrepreneurs.

“Always be curious and identify opportunities. It’s not going to be smooth-sailing and perfect all the time. Roadblocks are just a hump, learn from the lessons,” Tim Yap shared.

For Ms. Ara Mina, passion and confidence are keys to succeed in business. “Don’t be afraid of failure and don’t be shy to ask questions. Research, develop and always improve your products,” she advised.

Mr. Gasara said that it’s okay to change the direction of your plans if needed and to embrace change. Meanwhile, Ms. Nakpil emphasized the value of grit and perseverance, more than talent, to achieve goals.

The PhilSTAR Media Group is also looking for “STAR36 SMES” which they will help in promoting their businesses. To be part of this, the applicant SME should be a registered business, with products that present a unique value, has a strong and patriotic vision, supports sustainability, and is ethical and socially responsible.

A STAR SMES Product Exhibit, led by PhilSTAR Media Group President and Chief Executive Officer Miguel G. Belmonte, Secretary Lopez, and Mr. Dy Tioco, was also unveiled featuring five of the already selected STAR SMEs.

These include LivClean PH, a brand of natural, eco-friendly surface cleaners that are free from harmful and toxic chemicals, and advocates for the Philippine agriculture industry by using Calamansi; FIRST for WOMEN/FIRST for MEN, a brand of natural skincare products that celebrates clean beauty, sustainably made with plant-powered ingredients from the Philippines and Swiss bioactives; Renegade Folk, a brand that creates comfortable leather footwear that is designed and handcrafted by local artisans of Marikina; Everyday Coffee, an e-commerce coffee company that offers various high-quality green bean coffee sourced all over the world, roasted upon order, and delivered right to your doorstep; and De Kalidad Kesong Puti, a food business that started in the midst of the pandemic and aims to promote the local cheese industry and support local farmers.

Mr. Dy Tioco also held a contract signing with representatives of some of the Nakakalocal partners.

Nakakalocal is presented by The Philippine STAR Media Group, in cooperation with Ortigas Malls, Robinsons Malls, SM Supermalls, Vistamall, Coffee Project, AllHome, AllDay Supermarket, Converge and RCBC Diskartech; with the support of San Miguel Corp., Trimotors Technology Corp., Bajaj Philippines, SGV and Entrego; with partner organizations DTI Philippines, Go Negosyo, Ayala Enterprise Circle, Pili Lokal, Rush and Yabang Pinoy, with media partners ABS-CBN, GMA and OneNews.

Last Mile, Inc: Delivering valuable digital logistics services

By Chelsey Keith P. Ignacio, Special Features Writer

Delivery services are integral part of online shopping, allowing customers to receive their purchase right at their doorsteps. Hence, amid the COVID-19 lockdowns and safety concerns, e-commerce has grown its relevance. Although the restrictions have begun to ease, many still make purchases in the digital space.

With consumers continuing to shop online, more deliveries for businesses are expected.

“Before the pandemic, most businesses tended to look at delivery services as just an extra revenue stream. Nowadays, most recognize that it is a potent tool not just to survive but thrive,” Jeff Sarmiento, co-founder and head of business of Last Mile, Inc. (LMI), told BusinessWorld.

Mr. Sarmiento also observed that customers now also have higher expectations of their delivery experience. “Everyone is so used to instant deliveries so much so that anything less is perceived as subpar,” he said. “In fact, sometimes, no matter how good your product is, you lose customers out of bad delivery service.”

“Logistics just can’t be ignored.”

But delivery operations could be complicated, especially when businesses handle numerous deliveries in a day while trying to meet customers’ delivery expectations.

“Operational visibility, access to third-party delivery service providers, and availability of in-house delivery assets are key factors that a business has to look into in order to remain competitive in the market — all these while keeping delivery costs in check,” Mr. Sarmiento said.

These three factors are what Last Mile, Inc. aimed to address through its products Fleet.ph, Deliveries.ph, and Riders.ph. The journey of LMI, a digital logistics service innovation company seeking to deal with the core issues of last-mile operations, started in 2017.

LMI began with Fleet.ph, a product it developed when a client wanted to gain visibility in their last-mile delivery operations. After doing proof of operation with the client, the company realized the value of such software, as well as the complexity of the issue.

“From those learnings, we’ve drawn out the blueprint of what products and services Last Mile, Inc. has now, which addresses complex issues in last-mile deliveries including the automation of order-to-fulfillment processes, setting up operational visibility, instant access to third-party delivery services whether on-demand or standard next-day shipping, and even the supply of contract delivery personnel,” Mr. Sarmiento said.

Fleet.ph is now a full-fledged fleet management software, providing last-mile operations visibility and enabling businesses to plan, dispatch, and track riders in real-time. And with such visibility of their operations, they could understand how to enhance their overall performance.

Meanwhile, Deliveries.ph connects businesses to their preferred logistics providers in the Deliveries.ph Provider Network.This on-demand fulfillment service platform is especially helpful as the number of orders to be delivered could vary; so even a business has in-house delivery staff, outsourcing from third parties could help when needed. Hence, this could also support businesses that completely depend on third parties for deliveries.

LMI also offers centralized sourcing and deployment management platform with Riders.ph to attend to businesses looking for help to fill up their in-house delivery staffing requirements. LMI works with reliable manpower agencies to bring in on-demand warm bodies to businesses.

“When used together, all three products create intuitive and seamless last-mile delivery operations. Most of our customers use at least two of our products. From our perspective, we feel that this is a validation of our assumptions from way back when we were designing the blueprint,” Mr. Sarmiento said.

LMI’s platforms have operated a little over 100,000 last-mile deliveries in 2020 and reached 300,000 transactions in 2021. This year, it seeks to accomplish one million deliveries.

The company also plans to make product improvements involving deeper automation, expand its network of third-party delivery service providers, and improve user experience.

“At the end of the day, we’re here to help businesses with their last-mile delivery operations through our platforms — of course, without breaking the bank,” Mr. Sarmiento said.

Israel builds bridges of innovation with Filipino startups

The Embassy of Israel in the Philippines, in partnership with IdeaSpace-QBO Innovation Hub (QBO), hosted a Qlitan Networking night to motivate and uplift the startup industry in the Philippines.

“Israel is known as the startup nation with over 6,000 active startups. We have built a strong ecosystem joined by various innovation key players. We are even shifting from start-up nation to building a smart-up nation to sustain innovation and prepare in addressing future challenges,” Ambassador Ilan Fluss said in his opening remarks.

“We would like to share the success story of Israel as a startup nation and create partnerships with the innovation community in the Philippines. We have to build bridges of innovation between our countries to contribute to addressing the development challenges of the Philippines,” Ambassador Fluss added.

Around 50 Filipino founders of startup companies and investors in the Philippines participated in the networking night. The event aimed to connect Filipino startups and key players of the innovation community and to come up with a collaboration between Filipino and Israeli startups. The night also featured a net café session wherein Philippine start-up founders engaged with Israeli businessmen and officials to exchange views and best practices in the industry as well as find ways to work together.

“We need to build a bridge between our two countries so that startups can benefit and gain business,” Butch Meily, president of IdeaSpace Foundation and QBO said. QBO is the Philippines’ first public-private partnership platform for Filipino startups led by the IdeaSpace Foundation and supported by JP Morgan Foundation, the Philippine Department of Science and Technology (DoST) and the Department of Trade and Industry (DTI). It connects and develops the local startup ecosystem.

Benny Schlick, founder and managing director of Innovation without Border, joined the networking night via Zoom and shared the Israeli innovation ecosystem’s recipe.

Ambassador Ilan Fluss also announced during the event that Department of Trade and Industry (DTI) Secretary Ramon Lopez signed an agreement with the chairman of the Israeli innovation authority to cooperate in technological innovation and research and development. “With this, we are opening more bridges to partner with you and build a stronger startup industry,” Ambassador Fluss shared.

The Qlitan Networking night was held on June 7 at QBO Innovation Hub.

Medical Doctors, Inc. to conduct annual meeting of stockholders via remote communication on July 19

 


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BSP may go for up to 50-bp hike — poll

PHILIPPINE STAR/ MIGUEL DE GUZMAN
Latest data from the Department of Energy showed prices of gasoline, diesel, and kerosene increased by P28.70, P41.14, and P37.95 per liter respectively since the start of the year. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Keisha B. Ta-asan

THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to raise interest rates on Thursday, with several analysts now forecasting a 50-basis-point (bp) increase after the aggressive tightening by the US Federal Reserve last week.   

A BusinessWorld poll last week showed 15 out of 16 analysts anticipate the Monetary Board increasing its benchmark interest rate at its June 23 meeting. However, analysts appear divided on the pace of tightening, with nine analysts seeing a hike of 25 bps while six analysts anticipate an increase of 50 bps.

“Considering the current volatility of the economy, where inflation rate is at its highest since 2018 at 5.4% (in May) and expectations are high that this will further erode and may breach the government target… coupled with the US Federal Reserve decision to increase their policy rate to 75 bps, it is expected that local policy rate to likewise increase by another 25 bps,” Colegio de San Juan de Letran Graduate School Associate Professor Emmanuel J. Lopez said in an e-mail.

Analysts’ expectations on policy rates (June 23)

Inflation rose to 5.4% in May, the highest in three and a half years and above the BSP’s 2-4% target range. The BSP last month raised its average inflation estimate to 4.6% this year, higher than the previous estimate of 4.3%.

Makoto Tsuchiya, an economist at Oxford Economics, said the BSP will likely put more focus on elevated prices than economic growth at the next meeting, citing the stronger-than-expected gross domestic product (GDP) growth in the first quarter.

“We think the BSP will be wary of stifling the recovery and will continue to tread carefully between maintaining growth momentum and containing inflationary pressures,” Mr. Tsuchiya said.

The Philippine economy already surpassed pre-pandemic levels in the first quarter, with GDP expanding by 8.3%.

Economic managers are targeting a 7-8% GDP growth this year.

China Banking Corp. Chief Economist Domini S. Velasquez said a more measured monetary tightening cycle is ideal for the Philippines.

“We think that continued moderate hikes by the BSP will allow the economy to absorb interest rate increases at a more measured pace. In this time of uncertainty, it also provides time for the BSP to assess the impact of monetary tightening on our growth recovery,” she said.

In a June 14 roundtable with BusinessWorld editors, incoming BSP governor and current Monetary Board member Felipe M. Medalla signaled the pace of subsequent tightening will be gradual, ruling out rate hikes of more than 25 bps.

However, Mr. Medalla’s statement was made a day before the US Federal Reserve approved a 75-bp interest rate hike, its biggest since 1994.

The aggressive monetary tightening by the US Federal Reserve may spur capital outflows and put more downward pressure on the peso, some analysts said. This may prompt the Monetary Board to consider a 50-bp rate hike, they said.

Philippine National Bank economist Alvin Joseph A. Arogo said he now expects a 50-bp increase by the BSP after the Fed’s latest rate hike and the peso breaching the P53-$1 level.

The peso closed at P53.75 per dollar on Friday, weaker by 28 centavos from its P53.47 finish on Thursday, based on Bankers Association of the Philippines data.

It also shed 75 centavos from its P53 close a week earlier. This was the peso’s weakest close in over three and a half years or since its P53.80 finish against the greenback on Oct. 25, 2018.

“A 50-bp bump in June will let the BSP balance growth recovery and manage inflation, while getting ahead of the Fed’s pace. This should also help temper the peso’s weakness with the current account deficit projected at $19.1 billion this year,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail.

Some analysts expect the BSP’s policy normalization to be gradual as inflation is expected to return to the 2-4% target range by 2023.

The Monetary Board kicked off its tightening cycle on May 19 by raising the yield on the BSP’s overnight reverse repurchase facility by 25 bps to 2.25%. Interest rates on the overnight deposit and lending facilities were also hiked to 1.75% and 2.75%, respectively.

This was the first increase in borrowing costs since 2018 and followed cuts worth 200 bps in 2020 as the BSP moved to support the economy amid the coronavirus pandemic.

“As things stand, we expect only two more interest rate hikes next year, taking the rate to 3%, implying that a full reversal of the COVID-era cuts is unlikely to take place until after 2023,” Pantheon Chief Emerging Asia Economist Miguel Chanco said.

Moody’s Analytics analyst Sonia Zhu said the central bank may increase rates three more times, with the policy rate seen at 3% and above by end-2022.

Oxford Economics’ Mr. Tsuchiya said the BSP is likely to hike the policy rate by 100 bps this year.

“We expect the BSP to gradually continue tightening beyond this year, and unwind all the 200 bps cuts implemented at the onset of the pandemic by early 2024,” he said.

However, for ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa, the BSP should “not simply be in ‘normalization mode’ but it should assume a tightening stance” to curb red-hot inflation.

“We have the BSP back at 4% by early next year,” he added.

After Thursday, there are four more Monetary Board meetings scheduled this year — Aug. 18, Sept. 22, Nov. 11, and Dec. 15.

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