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SEC defers new reporting rules for real estate firms to next year

By Denise A. Valdez
Reporter

THE Securities and Exchange Commission (SEC) is allowing real estate companies to defer the implementation of reporting guidelines on over time transfer of constructed goods.

Memorandum Circular No. 4, which the SEC issued on Feb. 21, provided relief for real estate firms until the end of the year in following the agenda decision of the International Financial Reporting Standards (IFRS) Interpretations Committee (IFRIC).

But starting Jan. 1, 2021, real estate firms will be required to adopt the IFRIC interpretations of the guidelines and any amendments retrospectively, or as the SEC will later prescribe.

“The above relief shall form part of PFRS (Philippine Financial Reporting Standards) for the purpose of preparing and filing general-purpose financial statements with the commission,” the circular said.

To recall, the IFRIC issued an agenda decision in March 2019 agreeing with the requirements in Philippine Accounting Standards (PAS) 23 on borrowing costs. PAS 23 says borrowing costs directly attributable to the acquisition, construction or production of an asset is considered part of its cost, not expense, as a qualifying asset must take a substantial period of time to get ready for use or sale.

“[PAS 23] does not require the capitalization of borrowing costs relating to assets measured at fair value, and inventories that are manufactured or produced in large quantities on a repetitive basis, even if they take a substantial period of time to get ready for use or sale,” it said.

However, the SEC said there were issues raised by the real estate industry about following the IFRIC interpretations. It requested to defer the implementation “to thoroughly study the possible impact to the operation and financial reporting of real estate companies.”

Even as the SEC granted this request until Dec. 31, it said other real estate companies may already start full compliance with the requirements of the IFRIC interpretations.

Those that are delaying it to next year will be asked to provide in its “Notes to the Financial Statements” the accounting policies it applied, a discussion of the decision to defer implementation of the IFRIC interpretations, and a qualitative discussion on the changes in the financial statements should it have applied the IFRIC interpretations.

If deferring the implementation results in an accounting policy change, the circular said this would have to be accounted for as well and provided with the corresponding required quantitative disclosures.

Sought to comment on the circular, Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said the guidelines may help real estate firms post a higher bottomline.

“It’s positive for real estate companies since recognizing fewer cost means the net income will be overstated,” he said in a text message.

Treasury bills expected to fetch lower rates on liquidity, growth

TREASURY BILLS (T-bills) on offer on Monday will likely fetch lower rates on the back of strong liquidity and market expectations of another policy rate cut by the central bank amid a sluggish growth outlook.

The Bureau of the Treasury (BTr) wants to raise P30 billion via the T-bills today, broken down into P6 billion each for 91- and 182-day papers and P8 billion for the 364-day securities.

Two bond traders interviewed on Friday said they expect T-bill rates to continue to decline by around five to 10 basis points (bps).

“I think average yields will decrease by at least five bps from the last T-bills auction due to strong demand for short-term securities and concerns of economic slowdown due to the coronavirus. The BSP (Bangko Sentral ng Pilipinas) might also cut rates next quarter,” the first trader said in a Viber message

Last week, the government awarded P6 billion via the 91-day papers as planned at an average rate of 3.072%, down by 4.3 bps from the 3.115% quoted in the auction on Feb. 10.

The Treasury raised another P6 billion as programmed via the 182-day papers from total tenders amounting to P20.792 billion. The three-month papers yielded an average rate of 3.42%, which was 4.1 bps lower than the previous yield of 3.461%.

For the 364-day T-bills, the government accepted P8 billion as planned at an average rate of 3.836%, also lower by 7.2 bps from the 3.908% fetched previously.

For the second bond trader, T-bill rates may decline by 10 bps versus the yields fetched in the previous auction as the growth outlook for the first quarter dims on easing economic activity amid the coronavirus disease 2019 (COVID-19) outbreak.

“Less economic activity may affect growth in general, so in turn, might give leeway for BSP to cut rates again, that’s how the market (perceives it) right now,” the trader said by phone on Friday.

Earlier this month, BSP Governor Benjamin E. Diokno said another 25-bp rate cut is possible as early as the second quarter to cushion the impact of the virus outbreak on the economy. This follows the 25-bp cut announced at the BSP Monetary Board’s Feb. 6 policy meeting.

The National Economic and Development Authority (NEDA) has said the economy could lose 0.3% if the virus lasts until June, and further rise to 0.7% of gross domestic product (GDP) if it lingers until yearend.

S&P Global Ratings last week cut its growth outlook for the country to 6.1% for 2020 from the already downgraded 6.2% projection. Moody’s Investors’ Service also lowered its own estimate to 6.1% from the 6.2% it gave previously.

Both projections were below the government’s GDP growth target range of 6.5-7.5% for this year.

S&P sees the country to be among the countries to be the “least affected” by the outbreak, while Moody’s expects the country’s growth to take a hit from slower expansion seen in its Asian peers in the wake of the outbreak.

“That’s why people will continue to buy [securities]. Again, because of COVID-19, lower CPI (consumer price index) forecast, because of low demand from transportation [and] no bloated prices [of goods]. Also, we still have so much liquidity in the system so that’s pushing (T-bill) prices lower in general,” the second trader added.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via Treasury bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — B.M. Laforga

Iloilo angling for MICE market with more halal establishments

ILOILO CITY — The Iloilo business sector will start developing halal-friendly establishments and food manufacturing to support its campaign to capture a bigger share of meetings, incentives, conferences, and exhibitions (MICE).

“We are positioning the city to become a MICE destination and venturing into the halal market is something we can dive into if we want to become a serious MICE player in Asia,” Iloilo Business Club executive director Lea E. Lara told the media last week.

Ms. Lara said there are currently no halal-certified businesses in Iloilo City and establishments hosting major events with multi-cultural participants import the required products for catering.

One step, she said, is participating in the Malaysia International Halal Showcase (MIHAS) 2020 on April 1–4 in Kuala Lumpur.

Malaysian Embassy Trade Commissioner Siti Azlina visited the city last week and met with the business sector on Feb. 17 to promote MIHAS.

“Iloilo is the very first city that we visited for this. We also wanted to go in other provinces as well and Iloilo being one of the most developed cities in Western Visayas, we want to ensure that the business community here also knows about MIHAS,” Ms. Azlina said.

She noted that the global market for halal, which means products and services prepared in adherence to Islamic dietary rules, stood at $2.2 trillion in 2018.

“It is expected to grow by at least 5.2% year-on-year. It is expected to reach $3.4 trillion in 2040 and I think everybody wants to chip into that trillion-dollar market,” she said.

The Malaysian envoy said while the Philippine’s Department of Trade and Industry and Department of Science and Technology have been rolling out programs to help develop the halal industry, there are still very few certified establishments.

“I would urge small to medium enterprises to approach halal certifiers and know what requirements they need,” she said.

MIHAS 2020, organized by Malaysia’s trade promotion agency Malaysia External Trade Development Corp., will showcase various halal sectors including food and beverages, food technology, manufacturing, cosmetics, logistics, and tourism, among others.

“We are hoping we can touch base with more companies here in Iloilo to get them to join MIHAS,” Ms. Azlina said. — Emme Rose S. Santiagudo

GM shutters Thailand Chevrolet plant

By Kap Maceda Aguila

AMERICAN CAR brand General Motors (GM) has announced it will cease local manufacturing and subsequently withdraw the Chevrolet brand from Thailand “by the end of the year.” The news, primarily distressing to some 1,900 people employed by the automaker (with some 1,200 involved in the Rayong manufacturing plant alone) also has ramifications for the Philippine market. More on that later.

Anyway, Chinese car maker Great Wall Motors is said to be receiving the factory that GM will vacate within this year under a purchase agreement. In related news, Chevrolet cars in Thailand are reportedly going for as much as 50% less than their original tags. “Buyers have to make a deposit to reserve a car and then pay the balance on the day of delivery,” according to a report from Bangkok Post.

But, again, what is the implication for the Philippines and its legion of Chevrolet owners — and those who are looking at getting one? Those who don’t know it yet should be aware that our Chevy Colorado and Trailblazer units are sourced from the soon-to-be-shuttered Rayong assembly line. There’s an uncertainty — at least for now — about where The Covenant Car Company, Inc. (TCCCI), importer and distributor of the Detroit-headquartered bowtie brand, will get its vehicles, post closure.

To assuage doubts, TCCCI quickly reacted via a press statement which reads in part thus: “Following the difficult decision by GM to cease local manufacturing and withdraw the Chevrolet brand from sale in Thailand by the end of 2020, GM wishes to reaffirm its partnership with TCCCI and continued focus on growing the Chevrolet brand and business in the Philippines.”

GM Southeast Asia President Hector Villarreal “reconfirmed GM’s partnership with TCCCI in the Philippines and the company’s ongoing commitment to ensuring (that) regional customers’ after-sales needs are met.” He maintained, “The Philippines remains a very important market for GM and Chevrolet, and we will continue working with our valued partners at TCCCI to grow Chevrolet in the Philippines.”

Aside from Thailand, GM will also terminate the Chevrolet stint in Australia and New Zealand by next year in a bid to “transform its international operations, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, drive significant cost efficiencies and take action in markets that cannot earn an adequate return for its shareholders,” according to a GM release. It will also retire its Holden brand.

Tellingly, GM President Mark Reuss had said they “explored a range of options to continue Holden operations, but none could overcome the challenges of the investments needed for the highly fragmented right-hand-drive market, the economics to support growing the brand, and delivering an appropriate return on investment.”

We say tellingly because while the territories they’re retreating from are RHD, we in the Philippines are among LHD markets. TCCCI isn’t confirming yet, but we can hazard a guess that the Trailblazer might be sourced elsewhere such as South Korea and China (both RHD territories, by the way). The Colorado can come from a little farther away — Brazil. And guess on which side of the road they drive there.

It’s business as usual, said TCCCI SVP for Marketing Lyn Buena, in an interview with Velocity. Chevrolet Philippines promises to preserve the “ownership experience,” and looks forward to “no disruption” in the supply chain of vehicles and spare parts. “In fact, new opportunities might open because of the changes,” she said, without elaborating.

In a previous meeting with the members of the motoring media earlier in the month, TCCCI revealed that it was planning to unveil three new Chevrolet models in 2020. Ms. Buena now said “it might not be three anymore,” and that they’re looking at either Q3 or Q4 for the launches.

Other Tan-led firms may join MacroAsia in Sangley airport project

MACROASIA Corp. is looking to bring in Philippine Airlines (PAL) and other companies of Lucio C. Tan to the consortium that will build the Sangley Point International Airport as a way to secure capital backing.

“MacroAsia is part of a larger group. So if our partner agrees, we may bring in [those that are] part of the group. PAL is definitely going to be of use,” MacroAsia Corp. President and Chief Operating Officer Joseph T. Chua told reporters last week.

“Maybe PAL or other parts of our group can join. It’s up to my boss…. LT Group, [Inc.] is possible,” he added.

He said MacroAsia is not inclined to issue more shares to raise capital for the project.

“The capex (capital expenditure) is quite big because we don’t want to issue shares [as] it’s dilutive. If you look at our FS (financial statement), we’re pretty much under-leveraged, so we will go through debt bonds,” he said.

MacroAsia has teamed up with China Communications Construction Co. Ltd. for the $10-billion four-runway airport project in Cavite.

Mr. Tan’s MacroAsia had received on Feb. 14 the notice of selection and award for the first phase of the project.

Cavite Governor Juanito Victor C. Remulla has said the groundbreaking for the project will happen after the consortium signs the contract documents and completes all the requirements.

Mr. Chua said MacroAsia has yet to meet with its Chinese partner.

“Our partner did not come because of the coronavirus [outbreak]. It’s not like they don’t like it, they just could not make it. I think everybody could not meet,” he said, referring to the inauguration of the P486-million Sangley Airport development project of the Transportation department on Feb. 15.

The Cavite provincial government targets the airport to start fully operating by 2023, with partial operations to start a year earlier. The fourth runway will be opened after six years.

The first phase of the project, which will cost $4 billion, includes the construction of the Sangley connector road and bridge to connect the Kawit segment of the Manila-Cavite Expressway (CAVITEx) to the international airport.

Phase one also involves the construction of the airport’s first runway, which can accommodate 25 million passengers yearly, helping to decongest Ninoy Aquino International Airport in Manila.

The same consortium will work on the other two phases of the project, but there may be contract renegotiations.

The second phase, which will cost about $6 billion, involves the construction of two more runways, giving the airport an annual capacity of 75 million passengers.

The last phase is the expansion to four runways, bringing capacity to 130 million passengers. — Arjay L. Balinbin

Kuroda blames yen’s fall on strong dollar

RIYADH — Bank of Japan (BoJ) Governor Haruhiko Kuroda said on Saturday the yen’s recent declines were largely driven by a strong dollar, shrugging off some market views that the widening coronavirus epidemic is triggering an outflow of funds from Asia.

Mr. Kuroda also said he had not changed his view that Japan’s economy would continue to recover moderately, suggesting that he saw no immediate need for the BoJ to expand stimulus.

“If needed, we will take additional monetary easing steps without hesitation,” he told reporters upon arriving at a Group of 20 finance leaders’ gathering in Riyadh.

“But the situation is still uncertain. I don’t think our scenario projecting a moderate economic recovery has been derailed.”

The fallout from the coronavirus crisis has overshadowed the meeting of the world’s top economies kicking off on Saturday. Business disruptions in China are starting to spill over into the global economy, with parts shortages rippling through supply chains as far away as the US.

The yen bounced back on Friday after suffering its worst two-day performance since 2017 on worries about the health of Japan’s economy, which has been hit by supply-chain disruptions and a plunge in Chinese tourists caused by the virus outbreak.

Mr. Kuroda dismissed views held by some market players that the yen could be losing its status as a safe-haven currency.

“When you look at recent developments, the dollar is strengthening against the yen, the euro and various currencies including those in Asia,” Mr. Kuroda said.

“It’s true there is uncertainty over the coronavirus outbreak’s impact on the Chinese, Asian and global economies. But I don’t think there has been a fundamental change in the exchange-rate market.”

UPBEAT ON OUTLOOK
Japan’s economy shrank at its fastest pace in nearly six years in the December quarter, as soft global demand for Japanese cars and machinery and last year’s sales tax hike hurt domestic consumption and business spending.

Some analysts expect the economy to contract again in the current quarter, dashing the BoJ’s hope that an expected rebound in global growth in the middle of the year will underpin Japan’s fragile recovery.

Mr. Kuroda brushed aside voices of pessimism, saying that corporate capital expenditure remained firm and rising household income was underpinning domestic consumption of an array of goods and services.

Temporary factors that led to the October-December economic contraction, such as damage from a string of typhoons and the sales tax hike, will fade later this year, he said.

While the coronavirus outbreak was a fresh risk, other uncertainties that dragged on growth like the Sino-US trade tensions and Brexit were subsiding, Mr. Kuroda added.

“I don’t expect Japan’s economy to suffer a severe downturn,” he said.

Under a policy dubbed yield curve control, the BoJ caps long-term borrowing costs around zero to spur growth and achieve its elusive 2% inflation target.

Many BoJ policy makers are wary of ramping up stimulus unless the economy is hit by a severe shock due to their dwindling ammunition and the rising cost of prolonged easing such as the hit to commercial banks’ profits from ultra-low interest rates. — Reuters

China’s chicken chain comes unstuck amid chaos of virus measures

BEIJING — China’s chicken farmers had been looking forward to a bumper year.

But an unprecedented lockdown on people and goods to curb the coronavirus outbreak has disrupted the short but intense poultry lifecycle, threatening output of meat just as the world’s most populous country faces a massive pork shortfall.

China’s poultry production expanded by 12% last year to 22.39 million tonnes, after farmers sought to plug the gap from the pork shortage caused by African swine fever that ravaged the domestic hog herd.

About half of China’s chickens are raised by individual farmers involved in only one or two steps of the chicken chain, rather than integrated operations.

But that has made them vulnerable to the restrictions on movement and labor shortage resulting from Beijing’s efforts to curb the spread of a new coronavirus that has killed more than 2,200 people and infected around 75,000.

Many roads to villages across the country are still blocked, despite government efforts to ease problems for vital industries like food, hampering feed deliveries and movement of birds.

Some feed mills and slaughterhouses are still shut, while others are only starting to reopen after extended holidays and operating below capacity.

That has upset the flow of a supply chain that starts with the sale of day-old chicks by hatcheries to breeding farms, continues with distribution of broiler chickens to growers, and ends in the slaughter of fattened birds, all in less than a year.

“Every step needs to work at the same pace, otherwise there will be an imbalance,” said Pan Chenjun, senior analyst at Rabobank.

Pan Xingle, who raises chickens in Yi county in Hebei province for a slaughterhouse under contract, is still waiting to slaughter 16,000 birds that are already more than 50 days old.

Broilers used for cheap meat by fast-food chains and public canteens reach their maximum weight of 2.6 kg (5.7 lb) in around 40 days.

But the slaughterhouse has only just reopened after an extended holiday and farmers are queuing to kill their chickens.

“I was told I’ll need to wait for at least another 10 days,” said Pan.

That means Pan won’t be restocking his farm with new chicks for a while longer, hurting business for some of the 45 million breeders that raise ‘parent stock’ around China.

BELOW COST
Prices for the day-old-chicks sold by those breeders are currently below cost, ranging from 1.4 yuan to 2.5 yuan (about 20 to 35 US cents) per chick. The average price last year was 6.8 yuan.

Zhang Yanguang, manager of breeding farm Beijing Lvyan Poultry Centre located in a village in the northwest of the capital, said even if he could sell his chicks, roads to the village are still blocked, and trucks can neither go in nor out.

Worse, most of the slaughterhouses in the northeast and northwest of China are still shut so he can’t get rid of unwanted birds either.

“The whole market is closed down,” he said, estimating slaughter capacity is currently only running at around 30%.

If pressure on farms like Zhang’s continues past this month, it could force some out of business, said Ms. Pan, the analyst, hitting the hatcheries further upstream that raise grandparent stock to produce the breeders.

“Then the hatcheries will have to destroy day-old chicks or eggs,” she said.

With schools and many factories and restaurants still closed, lower production of chicken and eggs is not yet a problem. But once business returns, supplies could tighten, Ms. Pan said.

The effect is likely to be seen in the second and third quarters, an agriculture ministry official said earlier this week.

Similar challenges are facing egg farmers who are unable to get fresh eggs to market nor replace their old hens.

“We are selling our chicks really cheap, as little as 1.5 yuan instead of 4 yuan, so we’re losing money,” said Wang Lianzeng, chairman of Huayu Agricultural Science and Technology Co. Ltd., one of the country’s largest hatcheries for laying hens.

That could help farmers like Li Shunji from northern Shandong province who is selling his eggs at a loss because he no longer has access to big markets in Beijing and Tianjin.

But he still has worries. As he waited to take delivery of a new batch of baby chicks, he worried about transport disruption.

“They are so fragile at the moment. Moving them around might lead to their death, or reduce their productivity in the future. But I can’t do anything. I will just have to wait.” — Reuters

A look back on eras of opulence at Milan Fashion Week

MILAN Fashion Week launched its designs for Fall/Winter 2020-2021 this week, and we, of course, are very much impressed. BusinessWorldsaw the shows via livestreams, and we’re telling you the next season of luxe is very wearable, and very opulent. Our favorite designers took a glance at time periods that marked the world seconds before disaster — we hope these high priests and high priestesses of fashion aren’t saying anything more serious.

VERSACE
Versace’s show opened with black power suiting, paired with harsh pulled-back ponytails, evoking a sort of chic styling seen on glamorous spies. This collection is a bit staid compared to Donatella’s past offerings, exemplified in a plain black bag emblazoned with a single V.

The pieces combine bright luxury with decidedly street styles: take note of puffer jackets, tracksuits, and bomber jackets. They’re given a touch of luxury through volume and details and materials like shearling and leather. Speaking of volume, the look also incorporates a lot of lumpy knits on top, giving audiences a peek of silhouettes next season (lots of layering). Some excitement is achieved through zebra prints, florals, and of course, the rich baroque foliage prints we’ve come to associate with Versace.

We’re absolutely in love with a return to 90s Versace glam with slip dresses appearing as if slit with a razor, followed by deconstructed full-length deconstructed leather trenches (though one can only imagine the weight). By the way, Versace’s the first designer we’ve noticed this season who makes a case for gray: who knew that a shade we associate with concrete could be so interesting? Prints and rich fabric give dimension the drab neutral. In fact, it’s glittering version, silver, closed the show, seen on a little lamé dress worn by Kendall Jenner.

MOSCHINO
“Après moi, le déluge (After me, the flood),” this was apparently said by Madame de Pompadour, the mistress of the penultimate king of France’s Ancien Régime, Louis XV. Madame de Pompadour was said to have uttered the words as a portent of the changing times that lay ahead, which would culminate in the French Revolution — which, fortunately for her, would not live to see. Moschino’s confectionary treat for Milan Fashion Week evokes the 18th century before the revolution, resulting in rich outfits out of a fairy tale.

Think panniered skirts — everywhere! Check out a yellow panniered dress with a gold-embroidered leather jacket, a denim suit and a denim playsuit, both embroidered with gold, and several more of the panniers we mentioned. It’s seen on a biker leather jacket with a pearl belt spelling out the house’s name, a full-length khaki trench, or else paired with streetwear sweatshirts (who would’ve thought?). It’s a camp girlish fantasy complete with towering poufs. Oh yes, and we saw gray too, this time in a frock coat printed with monochrome rococo pastoral scenes.

A cream brocade pantsuit with golden embroidery appeared on the runway, and I wouldn’t be surprised if this is soon adopted by some princess or first lady somewhere. Then came another suit we loved: gold, with a portrait collar, and entirely wearable. A woman, for example, could pair either the jacket or the skirt with something more staid: who knew that this candy-box aesthetic could yield something so wearable?

We’re also in love with a collection made of blue-and-white china prints, evoking silent and refined teatime. This would go very well with the runway’s other offering: dresses meant to look like cakes. The brief couldn’t be simpler: tiered cakes in several pastel shades. I guess it also points to another pre-revolutionary figure, Marie Antoinette, the last Queen of France’s Ancien Régime, who is supposed to have said “Let them eat cake!” when she was told that the people had no bread (she didn’t; she was actually quite sweet, according to recent historical sources).

The show ended with two strong looks: a coat embroidered in silk roses worn by Gigi Hadid, and a long white bridal dress that somehow reminds one of a wedding cake-topper.

GUCCI
Gucci opened its show with the behind-the scenes take: literally. The runway lights open to the dressing room, encased in a clear shell, while models are made-up and dressed while wearing white terrycloth bathrobes. The dressers leave, leaving just the makeup tables lit. Those lights dim too, and then flash back on again, showing the models posing within the clear shell, which turns out to be a revolving platform. It wasn’t all gimmick: the clothes are actually stunning (thankfully not adopting that derelict look for the men’s line last month).

We kick off with start with a lace-edged top paired with a tiered and paneled ballgown skirt made with three colors of lace, and then a red and black coat with frog closures, paired with a checked skirt and edwardian-era boots, which tells the rest of the show’s references. We also liked a black tiered ballgown in tulle, scattered about with bows. Next we saw a sweet little pleated dress in mint green with a lace collar, paired with beautiful oxblood loafers, and would you believe it, knee-high Gucci socks (trendwatchers watch out).

Next came a romantic pink silk blouse with puffed sleeves, paired with baggy tweed pants. The same material is seen in various outfits.

We also live for a ladylike blue and black coat with a rounded collar. The schoolgirl aesthetic seems to point back to the previous menswear collection of the exploration of childhood and masculinity. Perhaps this time, it’s an exploration of childhood influences of femininity and how it shapes the future woman: how else would you explain a sheer babydoll dress paired with a leather harness?

More babydoll dresses follow, and Gucci Creative Director Alessandro Michele makes a statement by pairing softly feminine outfits, such as a blush-colored ruffled skirt with another harness. We see more than a bit of the Edwardian Era here, and I we guess the reference also played into this theme of innocence, being a very visual testament to the world lost by the two great wars. This is why we’re treated to a black velvet Edwardian-era gown with a square collar. We’ve noted the prevalence of gray in the different runways, and Gucci doesn’t lag behind: gray is amplified by different textures of wool in pinafores, suits, and coats. We also noted that the dressers helping the models earlier in the show were also dressed in identical grey pantsuits, and they were just as much a part of the show. — Joseph L. Garcia

Megaworld set to launch new residential project in Cavite

MEGAWORLD Corp. is building a new residential project in its Maple Grove township in Cavite.

In a statement over the weekend, the listed property development firm of businessman Andrew L. Tan said it is launching a 16-storey residential development in the 140-hectare township in General Trias.

The project, which will be called La Cassia Residences, is seen to raise P1.4 billion in sales from offering 238 units. It will stand on the Maple Grove Commercial District of the Maple Grove township, which Megaworld dubs as a “Makati-inspired business district.”

“There is a growing demand for residential condominiums in this part of Cavite especially among the next generation Caviteños who are excited to see the next phase of Cavite and experience a more dynamic lifestyle,” Megaworld First Vice-President for Sales and Marketing Eugene Em Lozano said in the statement.

Interested buyers may choose from eight different unit layouts and sizes: studio of up to 27.5 square meters; studio with balcony of up to 29.5 square meters; studio with lanai of up to 32 square meters; studio garden with balcony of up to 33 square meters; one-bedroom of up to 40 square meters; one-bedroom with lanai of up to 49.5 square meters; two-bedroom of up to 79.5 square meters; and two-bedroom garden with balcony of up to 88 square meters.

The whole development is due for completion in 2025.

Mr. Lozano said it is the goal of Megaworld to provide a nature-inspired ambiance in the building, hence it will be built in front of a green park. It will also have amenities such as a swimming pool with pool deck, function hall, fitness center, outdoor fitness facilities, daycare center and walkway area.

“Inspired by nature’s grand design, La Cassia Residences will not only offer complete lifestyle experience for its residents but also a prime address surrounded by natural foliage while introducing the beauty of the outdoors into each home,” Mr. Lozano said.

The Maple Grove Commercial District was launched by Megaworld in 2017 and has so far sold 363 commercial lots. The 35-hectare development will be surrounded by parks to complete a green ambiance in the area.

Maple Grove is one of Megaworld’s three townships in Cavite, the others being Arden Botanical Estate in Trece Martires and Suntrust Ecotown in Tanza.

Aside from La Cassia Residences, the company also previously launched the 10-storey residential building The Verdin at Maple Grove, the 17-storey office building One Corporate Place, and the two-level mall Maple Grove Town Center within the Maple Grove township.

In the future, it is planning to add a chapel, a transportation hub, biking and jogging tracks, a futsal field and a six-lane Maple Grove Boulevard. Megaworld is investing P15 billion over a 10-year period to develop the whole Maple Grove township.

The company’s earnings in the first nine months of 2019 grew 14% to P12.8 billion, driven by a 17% increase in revenues to P48.12 billion. Its shares at the stock exchange closed P3.80 apiece on Friday, down 25 centavos or 6.17% from the previous session. — Denise A. Valdez

Peso to decline due to negative sentiment on coronavirus spread

THE PESO may continue to depreciate on Monday as investors continue to have risk-off sentiment due to more cases of the coronavirus disease 2019 (COVID-19) recorded outside China.

The local unit finished trading at P50.94, shedding 36 centavos from its Thursday finish of P50.58 against the dollar.

Week on week, it also depreciated by 38 centavos from its P50.56 close on Feb. 14.

Analysts blamed market fears due to more cases of COVID-19 recorded outside mainland China as well as some weak local data for the weaker peso.

“Aside from the peso’s response to COVID-19’s increasing spread outside of China, weakness also came from the January 2020 BoP (balance of payments) deficit,” he said in a text message.

On Friday, Reuters reported that South Korea’s confirmed cases grew by 52 to 156, with 111 cases logged in Daegu.

The virus was traced to be from a 61-year-old woman who attended services at the Shincheonji Church of Jesus the Temple of Tabernacle of the Testimony. More than 400 members of the said church have been showing symptoms of COVID-19 although tests are still in the works, according to officials.

At home, data from the Bangko Sentral ng Pilipinas (BSP) late Wednesday showed the country’s BoP swung to a $1.355-billion deficit in January, reversing the $2.704-billion surplus in the same month of 2019.

This latest BoP figure ended six months of surplus due mainly to foreign loan payments at the start of the year.

According to Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort, the peso followed the trend of other currencies which weakened on risk-off sentiment due to more cases of COVID-19.

“Peso was weaker after the stronger US dollar vs. most Asian currencies and other major global currencies amid increased global risk aversion amid concerns that the COVID-19 could spread in other countries outside China and could lead to slower global economic growth,” he said in a Facebook message.

Mr. Ricafort also attributed the local unit’s weakness to the BoP data as well as the latest hot money flows.

BSP data showed that foreign portfolio investments which has also been called “hot money,” saw a net outflow of $486.1 million in January, reversing the $762.82-million net inflow in the same month of 2019 and bigger than the $320-million net outflow in December.

Analysts said the weak hot money data in January came as investors went for safer havens due to geopolitical uncertainties, the COVID-19 outbreak, and regulatory risk in the local market.

For this week, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said a “main driver of the peso may be the release of the budget balance on Tuesday, Feb. 25.”

For his part, RCBC’s Mr. Ricafort said that “developments related to the COVID-19” would still be the major catalyst for the financial markets, especially concerns that it could spread outside China and some adverse effects on the global economy and on some of global companies that experience disruption”.

Reuters reported that while there was a sharp decrease in deaths and new cases of COVID-19 infections in China, additional patients have been recorded in other countries, adding unease about its rapid spread and global reach.

On Saturday, the director general of the World Health Organization (WHO) said that they are concerned about the new cases with no clear epidemiological link. WHO noted that there have been more than 1,200 cases in 26 countries outside China, with even one confirmed case in Egypt, signaling that the virus has reached the African continent.

In Iran, 10 new cases have been confirmed, bringing the total cases to 28 while casualties reached five, according to their health ministry.

For today, UnionBank’s Mr. Asuncion sees the peso playing around the P50.70 to P51 band while RCBC’s Mr. Ricafort gave a forecast range of P50.75-P51.05. — L.W.T. Noble with Reuters

Farmers trained to improve yields, quality under Davao City peace program

DAVAO CITY — Farmers participating in the city’s counter-insurgency “Peace Economy” will undergo training to improve their harvest and quality of produce.

“We have concerns on quality and quantity in the produce of our farmers. That is why we intend to capacitate them,” Roger S. Baay, focal person of the Peace 911 team, said in a statement Friday.

Mr. Baay said the team will be tapping various agricultural groups to help provide the training.

The Peace Economy, launched by Peace 911 in November last year with communities in the remote Paquibato District as the pilot area, aims to stimulate economic activity alongside improvements in infrastructure and the delivery of social services to address the grievances of the insurgency.

One of the initial projects is linking vegetable growers with Helen’s Farms, Inc., a unit of retailer and shopping mall operator New City Commercial Center (NCCC).

Under the partnership, Helen’s Farms will directly purchas Paquibato produce, allowing farmers to steer clear of middlemen who usually offer lower prices.

Mr. Baay said the program is encouraging neighboring farmers to consolidate their harvest to meet the requirements of Helen’s Farms.

“This is to address our concerns on quantity,” Mr. Baay said.

The City Agriculturist Office has also given the Paquibato farmers permits to use the Davao Food Terminal Complex in Toril as their transaction site with Helen’s Farms.

“There is also a cold storage facility that they can use free of charge,” he said.

Mr. Baay said another plan under the Peace Economy is linking beneficiary farmers with the city’s restaurants. — Maya M. Padillo

Rethinking fashion buys through Greed

MOVIEGOERS may scorn the billionaire fashion bosses in Greed which opened in Britain on February 20, but anti-slavery activists said anyone who buys cheap clothes risks fuelling factory abuses.

The film by British director Michael Winterbottom, starring Steve Coogan, takes aim at high-flying moguls whose lavish lifestyles, yachts and parties are built on sweatshop labour.

“The extreme wealth [that] Greed’s main character accumulates at the expense of exploited workers is not as far removed from us at it seems,” said Joanna Ewart-James, executive director of anti-slavery organization Freedom United.

“Our own bulging wardrobes indicate how this has become an almost $3 trillion industry, lining the pockets of big business and not the 60 million-plus garment workers — who earn as little at $21 a month,” she told the Thomson Reuters Foundation.

Campaigners said they hoped the film would draw attention to the stark contrast between the lives of fashion retail owners and their staff — and encourage consumers to think more carefully about their choices.

The advent of fast fashion, with consumers buying and quickly binning cheap clothes, has exacerbated the risk of forced labour in global supply chains as factories come under ever greater pressure from leading brands, activists say.

Director Winterbottom said his inspiration for the film came from a conversation about the “colorful character” of British billionaire Philip Green, whose Arcadia group owns a string of fashion chains including Topshop.

Green’s greed and disregard for corporate governance led to the demise of British high street store BHS and cost 11,000 jobs, British lawmakers said in 2016, calling the collapse “the unacceptable face of capitalism”.

Coogan’s character also faces parliamentary scrutiny over his business dealings and throws an extravagant party on a Greek island — echoing Green’s infamous multi-million dollar birthday celebrations attended by A-list actors, models and popstars.

“We’re using tvve likes of Philip Green to raise the subject of this kind of exploitative slave labour that makes people rich,” said British actor and comedian, Coogan, who is best known for his television character Alan Partridge.

“People involved in this world, they sleep like babies. It doesn’t bother them,” Coogan said, describing how surreal it was to shoot on a luxury yacht and then in a Sri Lankan garment factory where people earned $4 a day.

Green was not immediately available to comment.

Comedian David Mitchell, who plays a journalist in Greed, said filming in garment workers’ homes with “no plumbing and very little space” was a memorable experience.

“It’s a pretty grim place to live,” he said. “And obviously that’s all about the rate of pay, which is dictated by market forces unrestrained by governments.”

Jakub Sobik of Anti-Slavery International said films like Greed were important in highlighting the exploitation of vulnerable workers in the fashion industry.

“They could play a big role in making people aware of the problem and demanding better from businesses and governments,” he said.

About 25 million people are estimated to be trapped in forced labour, the United Nations says. — Reuters

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