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Megaworld: 21 projects to boost rent income

Megaworld Corp. is looking to expand its rental income portfolio by developing its project pipeline in the next five years, the company said on Friday.

“We have numerous opportunities to explore in our growth pipeline, and we are prepared to take them on,” Andrew L. Tan, chairman and chief executive officer of Megaworld, said during the company’s stockholders’ meeting.

The company aims to develop new office and commercial projects on top of its plans to complete 19 ongoing projects this year.

“These are all big-ticket projects that we want to pursue as we look forward to full recovery in our economy, and the return of consumer confidence to normalcy,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said.

The majority of the new projects are office developments, which make up 70% or 15 developments in the list: Uptown Bonifacio and McKinley West in Taguig City, Arcovia City in Pasig, Iloilo Business Park, The Upper East in Bacolod City, Pampanga-based Capital Town, The Mactan Newtown in Cebu, and Davao Park District.

Megaworld is eyeing to develop five lifestyle malls in Bacolod’s The Upper East and Northill Gateway, Pampanga’s Capital Town, Maple Grove in Cavite, and Highland City in Rizal.

The listed property company also said it plans to open a hotel in Mactan Newtown.

In total, Megaworld aims to develop 21 new projects in 11 of its townships in the country, which will be funded through proceeds generated from its real estate investment trust (REIT) offer, MREIT, Inc.

Megaworld is putting 10 key office assets into MREIT. The offer will consist of secondary shares of up to 1.239 billion common shares priced at P22 each at most.

“Our ultimate goal is to make MREIT not only the largest office REIT in the

Philippines, but to eventually be one of the largest in Southeast Asia,” said Chief Strategy Officer Mr. Tan.

“Right now, we are very bullish in Iloilo where we continue to see our property prices appreciate and where we continue to sell out our projects despite the pandemic,” he said, adding that the company’s projects in Cavite, Pampanga, and Bacolod also reported strong sales take-up.

For future residential projects, the company said it plans to focus its new launches in key areas outside of Metro Manila.

On Friday, shares of Megaworld at the stock market declined by 2.51% or eight centavos to close at P3.11 each. — Keren Concepcion G. Valmonte

CLI to build condo for Cebu City informal settlers

Cebu Landmasters, Inc. (CLI) is donating a P115-million condominium to Cebu City to offer in-city housing for informal settlers in Cebu City’s Barangay Lorega-San Miguel.

“CLI’s goal to help the VisMin (Visayas-Mindanao) housing gap includes well-planned projects for the marginalized,” Jose R. Soberano III, president and chief executive officer of Cebu Landmasters, said in a statement on Friday.

The company said it signed an agreement with the local city government for the development, which will be the first and tallest government-owned socialized housing project in the VisMin region.

It was planned in collaboration with the Department of Human Settlements and Urban Development.

Cebu Landmasters broke ground for the project on Friday, where Mr. Soberano was joined by Cebu City Vice Mayor Michael L. Rama and Housing Secretary Eduardo D. del Rosario.

The medium-rise building tenement housing project will stand five-storey high on a 1,350 square meter (sq.m.) property. It is said to be accessible to employment opportunities, being within walking and biking distance from the city’s business areas.

“Beneficiaries will be selected by the Department of Welfare for the Urban Poor and Local Housing Board in compliance with the city’s Local Shelter Ordinance,” CLI said.

The socialized housing condo will feature 100 units, each with a gross floor area of 25 sq.m. Units will have sun baffles on balconies and planters will be provided.

Open spaces, parking areas, a chapel, and a multi-purpose training hall will be included in the project. Cebu Landmasters said it will also provide ramps to cater to persons with disabilities and senior citizens.

Meanwhile, the project’s common areas will be powered by renewable energy

using solar panels and it will also have a sewage treatment plant for liquid waste management.

On Friday, shares of Cebu Landmasters at the stock exchange rose by 4.09% or 15 centavos to close at P3.82 each. — Keren Concepcion G. Valmonte

Fitch sees peso trading in range around P48/dollar this year

PHILIPPINE STAR/ MIGUEL DE GUZMAN

The peso is expected to trade in a narrow range during the year around the P48-to-the-dollar level before weakening in 2022 as the economy recover, Fitch Solutions said.

In a note Friday, Fitch Solutions revised its exchange rate forecast for the year to P48.10 to the dollar from P48.40 previously, noting that the current account is expected to swing to a deficit in the next few quarters.

“As the current account flips from surplus to deficit over the coming quarters, we expect the peso to modestly depreciate, with downside pressures somewhat offset by central bank policies and rebounding growth,” it said.

It forecast the current account surplus to narrow to 1.1% of gross domestic product (GDP) by year’s end from 3.6% in 2020.

In the next three to six months, Fitch Solutions sees the peso’s range at between P47.50 and P49.15, with the persistence of the coronavirus outbreak threatening economic recovery.

It said foreign investment flows may not return over the near term as infection levels remain elevated at around 6,500 new cases each day and the pace of vaccination program still slow.

The trade deficit continued to widen with the pandemic dampening import demand and trading partners impose restrictions.

Fitch Solutions expects import demand to gradually recover in the next few quarters as domestic activity picks up, while remittance flows and demand for export goods will also improve as global economic prospects improve.

“The Bangko Sentral Ng Pilipinas (BSP)’s dovish monetary policy stance will also somewhat weigh on the peso. Despite headline inflation rising sharply through H121, the BSP has kept its key policy rate on hold at 2% citing weak demand-side pressures,” it said, noting that it expects the central bank to keep its policy rate unchanged for the rest of the year.

For next year, Fitch Solutions upgraded its forecast for the peso to P49 to the dollar from P50 previously.

It said the current account could come in at a deficit equivalent to 1.2% of GDP in 2022 and 1.5% in 2023 in the next six to 24 months.

The expected tightening of monetary policy could temper the effects of a current account deficit, it said.

“We forecast the BSP to begin its monetary tightening cycle in 2022, hiking its key policy rate 50 basis points (bps) to 2.5% in 2022 (revised down from 75 bps) as the economy strengthens. This will come before the Fed’s tightening cycle providing some support for the peso,” it said.

The central bank could also tap its reserves to further ease the impact on the peso. It expects the volume of foreign exchange reserves to remain sufficient to cover 10.6 months’ worth of imports this year.

Fitch Solutions also expects the dollar to remain weak over the medium term, while foreign investment could pick up further when the economy rebounds.

“The peso could strengthen more in the near term if commodity prices begin to cool and the dollar trades weaker. Indeed, our Global and Commodities teams both see these trends playing out over the coming quarters but a more aggressive and sooner turn could see appetite for the peso bolster,” Fitch Solutions said. — Beatrice M. Laforga

BSP preparing resiliency plan for rural banking industry

BW FILE PHOTO

The Bangko Sentral ng Pilipinas (BSP) said it launched a Rural Banking Industry Strengthening Program to make the industry more resilient and responsive to the needs of their host communities.

The BSP said an interagency working group will run the program, headed by Monetary Board (MB) member Bruce J. Tolentino, along with officials from the Agriculture and Trade departments.

“The (program) is part of the BSP’s broader and continuing efforts to boost the resilience of the rural banking industry, which is a key agent of countryside development as it provides financial services to rural communities, including micro, small and medium enterprises,” BSP Governor Benjamin E. Diokno said in a statement Friday.

A technical working group, chaired by BSP Financial Supervision Sector Deputy Governor Chuchi G. Fonacier, will also help the steering committee create the action plan and capacity-building program for the rural banks.

“These strengthening efforts will benefit the agricultural sector and the micro, small and medium enterprises in the rural areas which are the main clients of rural banks,” Ms. Fonacier said.

She said the group will explore initiatives that will improve the operations, capacity and competitiveness of rural banks.

“The MB and BSP have been increasingly focused on ways for the financial system to be more inclusive and enabling for rural and agricultural growth. The rural banks have an important role to play in this effort,” Mr. Tolentino said.

The two groups are tasked to submit an initial batch of policy, program and reform proposals to the Monetary Board towards the end of the year. – Beatrice M. Laforga

Peso weakens after BSP remarks on continued easy policy

BW FILE PHOTO

The peso closed weaker against the dollar Friday after the central bank assured that policy rates will remain low for as long as needed to support the economic recovery.

The peso closed at P48.43 to the dollar against its Thursday close of P48.38, according to the Bankers Association of the Philippines (BAP).

Opening at P48.42, the peso posted a low of P48.44 in rangebound trading. Other than the opening level, the intraday high was 48.43.

Week-on-week, the peso weakened from P47.70 per dollar on June 11.

Dollar volume was $1.072 billion, from $1.789 billion the day before.

A trader attributed the weaker peso to the recent assurance from the central bank governor Benjamin E. Diokno that the Bangko Sentral ng Pilipinas (BSP) will keep policy rates low for as long as necessary to support the economy.

Mr. Diokno said in a briefing Thursday that the accommodative monetary stance will remain until the recovery gains traction.

The Monetary Board of the BSP is set to mee on June 24 to review its current policy stance.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said expectations that goods imports will rebound further caused the peso to weaken recently, with a looser quarantine regime expected to stimulate economic activity.

Elevated oil prices and the bourse’s continued decline due to profit-taking also helped account for the peso’s weakness Friday.

The government eased quarantine restrictions in Metro Manila and nearby provinces for the rest of the month after new coronavirus cases stabilized at around 6,000 a day. –- Beatrice M. Laforga

DBP to launch P12-billion lending program for hog industry

COURTESY OF DBP FACEBOOK PAGE

THE Development Bank of the Philippines (DBP) said it will launch a P12-billion credit facility for hog farmers to help the industry recovery from the African Swine Fever (ASF) outbreak. 

DBP President and CEO Emmanuel G. Herbosa said in a statement Friday that the lending program will support construction of bio-secure pig farms and equipment acquisition. The special credit facility is known the DBP Swine Repopulation, Rehabilitation and Recovery Credit Program (Swine R3 Credit Program). 

The program will support similar efforts by the Department of Agriculture (DA), it said. 

Mr. Herbosa said local government units (LGUs) and private companies can tap the P12-billion lending facility to build breeder farms, swine wean-to-finish farms, and consolidated swine facility projects. 

The bank can lend up to 100% of the project’s total cost for LGUs and 70% for companies. Loans will have a maximum term of 10 years, inclusive of up to two years’ grace period. 

“The DBP Swine R3 Credit Program is the latest in a comprehensive line-up of programs that will be developed and implemented to ramp up more efficient and sustainable food production. We believe that a strong agribusiness sector is one of the key elements in achieving a food-secure Philippines,” Mr. Herbosa said. 

The loan program is intended to increase pork production, ensure stable supply and bring down the retail price of pork. 

The supply of pork has dwindled because of the prolonged ASF outbreak starting from late 2019, causing inflation to break out of the government’s 2-4% target range. 

Meanwhile, another P500 million was alloted by DA’s Agricultural Credit Policy Council to set up a lending facility for the swine farm projects of small businesses.  – Beatrice M. Laforga 

IATF approves expanded quota for deployable health workers

Reuters

The government has increased the quota of overseas-deployable health workers in occupations deemed critical to 6,500. the Palace announced Friday.

In a statement, the President’s spokesman Herminio L. Roque, Jr. said the interagency task force on the pandemic approved the new quota Thursday for health workers with “mission-critical skills.” The previous quota had been 5,000.

Mr. Roque said health workers with perfected contracts as of May 31 will be eligible to deploy subject to the quota.

“Healthcare workers under government-to-government labor agreements shall, however, be exempted from this adjusted ceiling,” he said.

The Philippine Overseas Employment Administration (POEA) in December issued an advisory lifting the suspension on the deployment of nurses, nursing aides and nursing assistants starting Jan. 1, after deployments were frozen at the hight of the pandemic.

On June 1, the POEA announced the suspension of processing documents of new-hire health workers after the 5,000 quota was filled.

The original suspension on deployments had been imposed in April 2020 by the POEA Board, via a resolution imposing a moratorium on the deployment of mission-critical health workers. — Vann Marlo M. Villegas

Decline in NCR building materials wholesale prices eases in May

The decline in wholesale prices of construction materials in Metro Manila eased to a four-month low in May, the Philippine Statistics Authority (PSA) said Friday. 

The construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) fell 2% year on year in May from a contraction of 2.4% in April, according to preliminary data. 

The PSA said price growth eased in bulk prices of reinforcing and structural steel (1.4% in May from 3.3% in April) and PVC pipes (1% from 2.6%). 

Price movements in plumbing fixtures and accessories/waterworks remained negative at minus 1.8% in May from minus 2.2% in April. 

Glass and glass products, asphalt, and machinery and equipment rental wholesale prices were unchanged in May. 

Other building commodities posted higher rates of price growth led by fuels and lubricants (to 25.3% in May from 22.3% in April, electrical works (3.8% from 2.5%), and painting works (1.6% from 0.9%). 

Security Bank Corp. Chief Economist Robert Dan J. Roces attributed the May reading to lower inflation and a steady supply of materials. 

“The month-on-month for all items was actually flat, with construction activities proceeding despite the modified community quarantine as contractors resumed projects that were ,” he said in an e-mail. 

Headline inflation steadied for a third consecutive month in May at 4.5% as growth in food costs eased. 

Metro Manila and surrounding provinces — known as NCR Plus — went under enhanced community quarantine (ECQ) in the first half of April due to rising coronavirus case counts. The quarantine setting was later lowered to modified ECQ until May 14, which led to the resumption of construction all over the NCR Plus area. 

Mr. Roces expects bulk prices of construction materials in Metro Manila to steady or rise slightly in the coming months. — Bernadette Therese M. Gadon 

Quality rice seed seen requiring smaller quantities per hectare

RICE FARMERS are overseeding their fields, with the ideal volume for quality seed seen at between 20 to 80 kilograms per hectare depending on planting method, much less than what farmers are actually sowing, a researcher from the Philippine Rice Research Institute (PhilRice) said.   

Senior science research specialist Marvin J. Manalang said during a webinar that farmers need 20 to 40 kilos of seed per hectare for transplanted rice and 60 to 80 kilos for direct wet seeded rice. 

  

“Studies show that most farmers in the country use 80 to 160 kilograms of rice seed per hectare thinking that sowing more results in high yield,” Mr. Manalang said.   

According to Mr. Manalang, one kilo of rice seed contains 45,000 grains, which means 40 kilos will have 1.8 million grains. Assuming an 85% germination rate, 40 kilos should yield more than 1.5 million seedlings.   

“If a farmer transplants at a 20 centimeter by 20 centimeter distance, there will be 250,000 hills in a hectare. At three seedlings transplanted per hill, a hectare would require 750,000 seedlings. This is half of the seeds that germinated,” Mr. Manalang said.   

Meanwhile, Mr. Manalang said the production of sufficient healthy seedlings for transplant rice can be achieved with the use of quality seed and proper seedbed technique, and healthy seedlings.   

He added that farmers need to prepare land properly, manage pests, and adopt the correct sowing practices. 

“If sufficient healthy seedlings are planted, it will lead to high yield, high grain quality, high profit, and minimal damage to the environment,” Mr. Manalang said. – Revin Mikhael D. Ochave 

Shares dip after IMF growth cut, Fed stance

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

Philippine shares closed in the red on Friday, posting corrections after the market digested the International Monetary Fund’s (IMF) growth forecast of the country and after the US central bank shifted its policy stance, analysts said.

The Philippine Stock Exchange index (PSEi) declined by 36.54 points or 0.53% to close at 6,851.38 on Friday, while the all shares index went down by 18.06 points or 0.43% to 4,166.9.

“The market ended the week in the red as the market saw a pullback after rallying for three straight weeks,” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a Viber message.

“Catalysts for this week’s decline were the Fed’s hawkish statement, and the IMF’s downgrade of the country’s growth forecast,” Mr. Soledad added.

COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said the market corrected after being in “overbought levels” and “a stretch from short-term support areas.”

“The market proceeded to correct today after seeing some tenderness from the US. Recent reports from the US regarding the openness to raising rates in 2023 jarred some sentiment which had some ripple effects to other markets,” Mr. Barredo said in a separate Viber message.

The IMF cut the Philippine economy’s growth forecast this year to 5.4% from 6.9% after another surge of coronavirus disease 2019 (COVID-19) infections triggered the implementation of tight quarantine measures beginning late March, hampering economic recovery.

Overseas, Fed officials moved their first projected rate increases to 2023 from 2024. Majority or 13 out of 18 policymakers forecast a “liftoff” in borrowing costs that year, and 11 are expecting two quarter-percentage-point rate increases, Reuters reported.

Back home, most sectoral indices closed the week in the red except for services,

which rose by 15.17 points or 0.98% to 1,558.65, and industrials, which gained 79.81 points or 0.86% to end at 9,364.03.

Meanwhile, property shed 67.41 points or two percent to 3,293.3; financials inched down by 16.01 points or 1.06% to 1,491.4; mining and oil lost 48.12 points or 0.51% to finish at 9,311.04; and holding firms declined by 13.4 points or 0.19% to 6,936.33.

Value turnover decreased to P9.8 billion with 2.25 billion shares switching hands on Friday, from the P14.18 billion with 3.29 billion issues traded on Thursday.

Decliners outnumbered advancers, 106 against 98, while 46 names closed unchanged.

Net foreign selling declined to P856.75 million on Friday from the P5.20 billion logged on Thursday.

“For next week, investors will likely monitor the BSP’s (Bangko Sentral ng Pilipinas) policy statement. So far, Bloomberg estimates show expectations of an unchanged policy rate,” AB Capital Securities’ Mr. Soledad said.

COL Financial Group’s Mr. Barredo said the index’s current support level nears 6,750 to 6,630. — Keren Concepcion G. Valmonte

Big Bad Wolf book sale goes digital

The Big Bad Wolf Online Book Sale Philippines (BBW) will open its virtual doors from June 30 to July 7 and offer 60,000 book titles at discounted prices. 

“Whenever we do physical sales, we have logistics and location constraints in terms of the number of books we can bring,” said BBW co-founder Jacqueline Ng at the event’s June 17 launch. “For online, we opened up our whole inventory.”  

The website’s stability has been beefed up, added BBW co-founder Andrew Yap, as the book sale expects thousands of customers to log in at the same time. “Even up until our sixth year, we were still struggling with website traffic,” he said. “The system’s more stable now.” 

After creating accounts on the BBW website, users will be able to browse for books by genre or search by keywords, title, author, or International Standard Book Number (ISBN). Among the promotions in the eight-day sale are a P10 book deal for a minimum purchase of P1,800; a 5% discount for a minimum purchase of P1,200; a 10% discount for a minimum purchase of P5,000; and free shipping anywhere in the Philippines for a minimum purchase of P2,900. 

Delivery takes 18–24 days, and the shipping fee depends on the volume and weight of the purchase, as well as the buyer’s delivery address. 

“If you’re in Manila and you buy five books around three kilograms, that will cost P145,” she said. “If you’re in Mindanao and buy same order, the cost will be P290. What we charge are local courier charges. It’s as if you were buying from local sellers.” 

Online payments will be accepted through Dragonpay, eGHL, GCash, GrabPay, BDO, and BPI.  Cash on delivery (COD) isn’t available as a payment option. “Unfortunately, since we ship from Malaysia, COD is not an option for us,” Ms. Ng said.  

A social media contest, “The Grand Wolfie Contest,” will also be held online, with the complete mechanics to be posted on BBW’s official Facebook page. Prizes include an Apple iPhone 12 and an Apple MacBook Air. 

Big Bad Wolf Books has also partnered with the Intellectual Property Office of the Philippines (IPOPHL) to increase awareness around copyright laws and the need to safeguard authors and content creators. 

“In the future, once the pandemic dissipates and the world re-opens its borders, we certainly look forward to hosting more physical book sales in the Philippines,” said Ms. Ng. — Patricia B. Mirasol 

Oral antiviral pill for COVID-19 being evaluated at Lung Center, volunteers sought 

The Lung Center of the Philippines has been chosen as a clinical trial site for molnupiravir, an investigational oral antiviral pill being evaluated for the treatment of coronavirus disease 2019 (COVID-19).   

Developed by MSD (known as Merck in the United States and Canada) and Miami-based Ridgeback Biotherapeutics, the drug entered Phase 3 clinical trials this June. 

The study will be conducted in more than 100 sites worldwide, with a target to enroll a total of 1,850 patients. 

The trial, which consists of taking an 800-milligram dose of molnupiravir twice a day for five days, involves non-hospitalized adults with mild or moderate COVID-19 with at least one co-moribidity. 

“As an oral treatment administered on an out-patient basis, molnupiravir has the potential to help patients with COVID-19 early in their course of disease,” said Dr. Mary Ann Galang-Escalona, country medical lead of MSD in the Philippines, citing data from the Phase 2 trial that shows clinical benefits for mild to moderate infection.  

Final data from the Phase 3 portion (Part 2) of the study involving non-hospitalized patients is expected in September or October. The earliest possible submission for Emergency Use Authorization for molnupiravir in the United States, pending favorable results, is in the second half of 2021. 

To enroll in the trial, contact the study investigator in Lung Center of the Philippines, Dr. Virginia Delos Reyes, at 0917-8999610, or visit msdcovidresearch.com. —  Patricia B. Mirasol

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