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Suntrust bond issuance to HK firm exempted from SEC registration

THE Securities and Exchange Commission (SEC) exempted Suntrust Home Developers, Inc.’s proposed issuance of P5.6 billion, 6% convertible bonds to Summit Ascent Investments Ltd. from registration requirements.

Suntrust released on Monday a copy of the SEC letter dated Dec. 11, as signed by SEC Director Vicente Graciano P. Felizmenio, Jr.

Mr. Felizmenio said the company is “exempt from the registration requirements under Section 8 of the Securities Regulation Code, for which the exemption fee in the amount of P5.66 million was paid to the commission on October 08, 2020…”

Mr. Felizmenio added the convertible bonds to be issued in favor of Summit Ascent Investments is an “exempt transaction” under the Securities Regulation Code, as it is a “sale of securities by an issuer to fewer than 20 persons in the Philippines during any 12th month period.”

“The commission hereby confirms that the issuance of the said convertible bonds is exempt from the registration requirements,” he also said.

In June, Suntrust announced it would be issuing P5.6 billion convertible bonds to be subscribed to by Summit Ascent, a Hong Kong-based company.

Suntrust had said the move would support the development of the five-star hotel casino that it is building at the Manila Bayshore Integrated City in Parañaque City.

Suntrust is 51%-owned by Fortune Noble Ltd., a wholly owned subsidiary of Hong Kong-based Suncity Group Holdings Ltd.

Suncity is a substantial shareholder of Summit Ascent through its parent company, Summit Ascent Holdings Ltd., where Suncity holds approximately 24.74% interest. — Arjay L. Balinbin

Gov’t fully awards T-bills as rates inch sideways ahead of BSP meet

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as yields moved sideways ahead of the central bank’s latest policy meeting.

The Bureau of the Treasury (BTr) raised the programmed P20 billion via the T-bills on Monday as bids reached P76 billion or nearly four times as much as the offered amount.

Broken down, the BTr borrowed P5 billion as planned via the 91-day debt papers from P16.218 billion in tenders. The average rate of three-month T-bills edged up by 0.7 basis point (bp) to 1.022% from the 1.015% fetched in last week’s auction.

It also accepted P5 billion as programmed in 182-day securities out of bids worth P14.84 billion. The six-month debt was quoted at 1.4%, inching up by 0.1 bp from 1.399% previously.

Lastly, the government made a full P10-billion award of the 364-day instruments as tenders hit P44.943 billion. The one-year T-bills fetched an average yield of 1.686%, down by 0.9 bp from the 1.695% quoted in the previous offering.

T-bill rates move sideways yesterday as investors stayed on the sidelines ahead of the Monetary Board’s (MB) policy meeting on Thursday, National Treasurer Rosalia V. De Leon told reporters after the auction.

“Minimal movement in rates as the market sees MB in a stay mood for Thursday policy meeting. Liquidity bountiful with more than adequate bid cover across tenors,” Ms. De Leon said via Viber on Monday.

The Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board will hold its last review for the year on Thursday, Dec. 17.

The central bank will likely keep its key policy rates at their current record low levels as it considers the recent uptick in the country’s inflation rate, according to analysts.

A BusinessWorld poll last week showed all 15 analysts do not expect the Monetary Board to go for another rate cut at its seventh and final policy meeting for the year.

The BSP unexpectedly slashed rates by 25 bps last month, citing the need to provide support amid continued uncertainty caused by new virus cases globally and the impact of a recent string of typhoons.

The central bank has lowered policy rates by 200 bps this year.

However, many analysts believe the BSP will resume its easing cycle as early as the first quarter of 2021 to help the economy bounce back as recovery prospects remain dim.

A bond trader meanwhile said the slight uptick in the average rate of the one-year T-bills could serve as a signal that investors are shifting to that tenor from the 91- and 182-day papers.

“This indicates that those who are buying T-bills may be pricing in another rate cut after six months. Overall, yields remained steady across-the-board,” the trader said via Viber on Monday.

On Tuesday, the BTr will offer P30 billion in reissued 10-year notes with a remaining life of six years and four months. The debt papers carry a coupon of 4.75%.

The Treasury plans to borrow P120 billion from domestic lenders in December: P60 billion in weekly T-bill auctions and P60 billion in fortnightly T-bond offerings.

The government wants to raise around P3 trillion this year from local and foreign lenders to help fund its budget deficit, which is expected to hit 7.6% of the country’s gross domestic product. — Beatrice M. Laforga

Cleaners tops the PPP awards

Cleaners, a film anthology about high school cleaners (students tasked to clean the classroom and other parts of the school), was the big winner at the recently held awards night of the 4th Pista ng Pelikulang Pilipino which was held online.

The film by Glenn Barit — a stop motion movie using a series of photocopied stills — won the night’s top awards: Best Picture; Best Director;; Best Supporting Actress for Gianne Rivera; Special Citation for Ensemble Performance for Leomar Baloran, Julian Narag, and Carlo Mejia; Best Production Design for Alvin Francisco; and Best Musical Score.

The awards night on Dec. 12 was held over the Facebook and YouTube pages of the Film Development Council of the Philippines (FDCP).

Other big winners that night were Metamorphosis by J.E. Tiglao, which won the Special Jury Prize for Film and Best Actor for Gold Azeron.

The online version of the FDCP-led film festival ran from Oct. 31 to Dec. 13 and featured more than 150 films. The movies considered for the awards were those that had limited releases in the country or had Philippine premieres at the festival.

Below is the complete list of winners:

Best Picture: Cleaners

Special Jury Prize for Film: Metamorphosis

Best Director: Glenn Barit (Cleaners)

Best Actress: Hana Kino (Come On, Irene)

Best Actor: Gold Azeron (Metamorphosis)

Best Supporting Actress: Gianne Rivera (Cleaners)

Best Supporting Actor: Henyo Ehem (The Highest Peak)

Best Screenplay: Jason Paul Laxamana (He Who Is Without Sin)

Best Production Design: Alvin Francisco (Cleaners)

Best Cinematography: Emmanuel Liwanag (He Who Is Without Sin)

Best Sound Design: Arbi Barbarona (The Highest Peak)

Audience Choice Award (Short Film): Night Shift

Audience Choice Award (Full-length Film): He Who Is Without Sin

Zsarlene B. Chua

DMCI Homes completes 4 projects in 2020

DMCI PROJECT Developers, Inc. completed four projects and turned over 11 buildings to homeowners this year amid the pandemic.

DMCI Homes began the move-in process for the North Tower of Lumiere Residences, completing the three-building development at the corner of Pasig Boulevard and Shaw Boulevard in Pasig City.

This brought the number of DMCI Homes’ delivered projects to 4 this year, including Alea Residences in Bacoor, Cavite; Sheridan Towers in Pasig City; and Calathea Place in Parañaque City.

DMCI Homes turned over a total of 11 buildings this year with a combined 4,241 residential units worth P14.4 billion. This included the Westport and Lauderdale buildings of Oak Harbor Residences in Parañaque City; Mulberry Place’s Bengaline, Dui, and Cochine buildings in Acacia Estates, Taguig; and Verdon Parc’s Belvedere building in Davao City.

“We have been very productive these past few months despite the limitations brought about by the pandemic,” DMCI Homes President Alfredo R. Austria said, referring to the 76-day work stoppage when lockdown measures were enforced by the government mid-March to May.

“I would like to believe that our efforts to continuously improve our design, engineering and construction through technology and people development over the years served us well in facing these unprecedented challenges,” he added.

Cebu Pacific extends unlimited rebooking till March next year

CEBU PACIFIC announced on Monday that its passengers may avail of its unlimited rebooking option until the first quarter of 2021, a company official said.

The budget carrier, operated by Cebu Air, Inc., extended its offering until March 31, which was set to end this month, as it “may take time before trust and confidence in air travel is restored,”  Candice A. Iyog, Cebu Pacific vice president for marketing and customer service, said in an e-mailed press release on Monday.

“Passengers traveling until March 31, 2021 may rebook their flights as many times as they want, or put the full cost of their ticket into a Travel Fund valid for two (2) years, with rebooking and cancellation fees waived. A minimal fare difference may apply for rebooking of flights,” Cebu Pacific said. 

Cebu Air President and Chief Executive Officer Lance Y. Gokongwei said at a Palace briefing last week that the airline sector was under “severe stress.”

“This year, we will lose almost P25 billion,” he said.

The company’s main priority for now is to operate the airline “in a very safe and secure manner for both its passengers and employees” in order to regain people’s confidence in flying amid the pandemic crisis, Mr. Gokongwei said. — Arjay L. Balinbin

PNB sells PNBGen to Alliedbankers Insurance

PHILIPPINE NATIONAL Bank (PNB) and PNB Holdings Corp. have sold all of their shares worth P1.5 billion in the lender’s nonlife insurance arm PNB General Insurers Co., Inc. (PNBGen) to Alliedbankers Insurance Corp. (ABIC) as the Lucio Tan group continues to consolidate its businesses.

In a disclosure to the local stock exchange on Monday, the Tan-led lender said its board of directors last week gave it the go signal sell all of their shareholdings in PNBGen to ABIC, subject to the necessary approvals from regulators.

“We wish to advise the Exchange that during its meeting held today, December 11, 2020, the PNB Board of Directors approved and confirmed the sale of 100% shareholdings of PNB and PNB Holdings Corp. in PNB General Insurers Co., Inc., to Alliedbankers Insurance Corporation for a total purchase price of P1,523,374,730.48, subject to regulatory and other necessary approval/s,” the statement read.

PNBGen is the nonlife insurance company of PNB, while the ABIC is the non-life insurance firm of LT Group, Inc.

PNB President and CEO Jose Arnulfo “Wick” A. Veloso said the sale is part of LT Group’s efforts to consolidate its nonlife insurance businesses.

“This consolidation brings together the geographic reach of PNBGen through the network of the bank and the product offerings and expertise of Alliedbankers,” Mr. Veloso said in a text message on Monday.

“This will build a bigger and financially stronger entity that is best positioned to be a responsible industry partner in line with the Insurance Commission’s (IC) aim to build a strong nonlife insurance industry,” he added.

With a net income of P126.861 million last year, ABIC was the 10th top performer in the non-life insurance industry, based on the unaudited quarterly financial reports submitted to the IC.

PNBGen meanwhile ranked 13th in 2019 with a net income of P101.6 million.

Based on net premiums written, PNBGen ranked 24th (P623.89 million) last year while the ABIC placed 28th (P473 million), based on separate data from the IC.

PNB saw its net income rise by four percent to P2.5 billion in the third quarter. Its assets grew 14% to P1.3 trillion as of end-September from P1.14 trillion at the end of 2019.

Shares in PNB went up by 25 centavos to P30.70 each on Monday from its previous close of P30.45 apiece. — Beatrice M. Laforga

John le Carre, author of Cold War spy novels, 89

John le Carre, the British novelist who captured the cloak-and-dagger intrigue of Cold War espionage in best-selling books such as The Spy Who Came In From the Cold and Tinker Tailor Soldier Spy, has died. He was 89.

Le Carre died Saturday evening in Cornwall, where he lived, said his agent, Jonny Geller of the Curtis Brown Group. His publisher, Penguin, said the cause of death was pneumonia, citing le Carre’s family.

Geller called the author “an undisputed giant of English literature.”

A former spy with UK intelligence agency MI6, le Carre wrote more than 20 books in a career spanning six decades. His tales of treachery, betrayal and duplicity made George Smiley one of the genre’s most well-known secret agents through novels by “the pre-eminent spy writer of the 20th century,” as le Carre was once described in the New York Times.

An unwilling recipient of numerous awards, le Carre didn’t compete for literary prizes, while accolades flowed from his peers. American writer Philip Roth called A Perfect Spy (1986) “the best English novel since the war,” and UK author Graham Greene said his 1963 breakthrough work, The Spy Who Came In From the Cold, was “the best spy story I ever read.”

AUTHOR FIRST
“In the old days, it was convenient to bill me as a spy turned writer,” le Carre wrote on his website. “I was nothing of the kind. I am a writer who, when I was very young, spent a few ineffectual but extremely formative years in British intelligence.”

Le Carre’s characters chronicled the amoral methods employed by Western and Communist-bloc intelligence services to expose double agents during the Cold War. The author, who made espionage terms such as “mole” and “honey trap” popular, adapted his plots after the 1989 fall of the Berlin Wall, giving them more contemporary settings. The Constant Gardener in 2001 linked corporate corruption to the murder of a UK diplomat’s wife in Kenya, while 2008’s A Most Wanted Man addressed the war on terrorism and money laundering after the Sept. 11 attacks.

His works produced for cinema or television include the 1965 film The Spy Who Came In From the Cold, starring Richard Burton, The Russia House, a 1990 movie starring Sean Connery with Michelle Pfeiffer, and 2014’s A Most Wanted Man, with Philip Seymour Hoffman.

TV ADAPTATION
Alec Guinness starred as Smiley in the BBC’s seven-part television adaptation of Tinker Tailor Soldier Spy in 1979 and its Smiley’s People three years later.

In his final work, Agent Running in the Field published in 2019, le Carre’s writing was more angry than in past novels. He channeled his deep indignation at Brexit and visceral dislike of the British government that enabled it to happen. Leaving the European Union was, according to the book, “an act of self-immolation” led by a “bunch of rich, elitist carpetbaggers posing as men of the people.”

And in describing the foreign secretary in the book as an “Etonian narcissistic elitist without a decent conviction in his body bar his own advancement,” Le Carre left little to the imagination about whom he was describing. Shortly before the book was published, Boris Johnson was UK foreign secretary.

David John Moore Cornwell was born Oct. 19, 1931, in Poole, a coastal town in the southern English county of Dorset. John le Carre was a nom de plume adopted while he was working in diplomatic postings for the British government, which prohibited him from publishing under his own name.

His mother, Olive, abandoned the family when he was five and they didn’t meet again until he was 21, when he tracked her down after his father had told him she was dead. His father, Ronnie, was a confidence man who mixed in London’s criminal circles, according to a 2011 article in the Telegraph newspaper.

He and his older brother, Tony, were forced to help his father elude the law, sparking the future author’s interest in secrets and deception.

‘BADLY BORN’
“I act like a gent, but I am wonderfully badly born,” the eloquently spoken author wrote on his website.

Le Carre attended Sherborne School, a boarding school in Dorset, before studying German literature at the University of Bern in Switzerland for a year and earning a degree in modern languages at the University of Oxford’s Lincoln College.

After teaching French and German at Eton College, le Carre became an intelligence officer for MI5, the domestic secret service. In 1960, he transferred to MI6, the foreign arm of British intelligence, serving undercover as second secretary at the embassy in Bonn and then as a political consul in Hamburg. While working as a spy in the early 1960s, le Carre wrote his first three Smiley books: Call for the Dead, A Murder of Quality, and The Spy Who Came In From the Cold.

“For some of us, this bleak and witty thriller was an introduction to grownup reality,” David Denby wrote in the New Yorker magazine in 2014 about le Carre’s third novel. “No pessimistic book ever gave as much pleasure.”

LEAVES MI6
Le Carre, who penned his books by hand, quit his post in 1964 to write full time. Titles that followed included The Looking Glass War (1965), The Honourable Schoolboy (1977), The Little Drummer Girl (1983), The Tailor of Panama (1996), and A Delicate Truth (2013).

He won the British Crime Writers Association Gold Dagger in 1963 for The Spy Who Came In From the Cold, the Commander of the Order of Arts and Letters award in France in 2005, and the Goethe Medal from Germany’s Goethe Institute in 2011.

With his first wife, the former Alison Sharp who died in 2009, le Carre had three sons, Simon, Stephen, and Timothy. After divorcing in 1971, he married Valerie Eustace the following year and had another son, Nicholas, who became a writer under the name Nick Harkaway.

“Artists, in my experience, have very little center,” he wrote on his website. “They fake. They are not the real thing. They are spies. I am no exception.” — Bloomberg

Tupperware inks deal with Robinsons Land

TUPPERWARE BRANDS Philippines, Inc. recently inked a service agreement for a build-to-suit flexible workspace with Robinsons Land Corp. (RLC).

In a statement, RLC said Tupperware will occupy office space at work.able in Cyber Sigma, Taguig City.

Work.able is RLC’s flexible workspace brand. The Gokongwei-led property developer ventured into flexible workspaces in 2019 with a facility in Cyberspace Gamma building in Ortigas Center, Pasig City.

It also has workspaces in Exxa and Zeta Towers at Bridgetowne, C-5 Road, Ugong Norte, Quezon City.

Century Properties plans P3-B unsecured fixed rate retail bonds

CENTURY PROPERTIES Group, Inc. on Monday said its board has approved the company’s application of public offering of unsecured fixed-rate peso denominated retail bonds in the amount of P2 billion with an oversubscription option of up to P1 billion.

A special board meeting was held on Monday, the company told the stock exchange.

The board also approved a resolution on the authority of Century Properties “to issue peso denominated retail bonds and the filing with the Securities and Exchange Commission of a registration statement and prospectus for the retail bonds under the provisions of the Securities Regulations Code.”

The company recently launched a new residential property in Pampanga, which offers 1,079 units valued at P1.9 billion.

It also recently expanded its office leasing business to a gross leasable area of 137,000 square meters, after it bought the 40% share of its joint venture partner in the Century Diamond Tower in Makati City.

The company’s profits jumped 74% to P571.48 million in the third quarter due to gains from investment properties and non-recurring losses that were recorded the prior year. — Arjay L. Balinbin

BSP OKs new regulatory relief for savings and loan associations

THE BANGKO Sentral ng Pilipinas (BSP) will allow non-stock savings and loan associations (NSSLAs) to include accrued interest on some loans in their 2020 net profit, for the purpose of income distribution to members, as a way to extend relief to the industry during the pandemic.

Memorandum No. M-2020-088 signed by BSP Deputy Governor Chuchi G. Fonacier on Dec. 9 said the Monetary Board will allow NSSLAs to recognize as income their accrued interest on members’ unclassified loans outstanding from Sept. 15 to Dec. 31, net of general allowance for credit losses (ACL) of one percent of outstanding accrued interest receivable.

The period falls under the one-time 60-day loan moratorium provided by Republic Act No. 11494 or the Bayanihan to Recover as One Act.

In order be eligible, the Board of Trustees of an NSSLA should submit a certification of accuracy and integrity of income recognition that will be verified by the BSP in their next on-site examination.

Likewise, availing the measure will only be allowed if the distribution of accrued interest income net of ACL will not result in insufficiency of funds, borrowing to finance the net income distribution, restricted lending activities, or liquidity issues.

NSSLAs should also have no deficiency in ACL on loans and other risk assets, based on its latest approved report of examination.

NSSLAs interested to avail of the relief measure can submit the necessary requirements to the BSP’s Financial Supervision Department until Dec. 31.

NSSLAs gather deposits from their members which are then utilized to disburse loans meant to finance personal and home building expenses exclusive for military and uniformed personnel, teachers, employees, and market vendors, among others.

Cumulatively, these non-stock corporations service 1.4 million members across the country.

BSP Governor Benjamin E. Diokno has said they expect NSSLAs to exhibit sustained profitability and a stable performance despite headwinds caused by the coronavirus pandemic.

In August, the central bank issued tighter measures for “complex” NSSLAs or those with total assets of at least P5 billion.

The NSSLA industry’s assets stood at P260.2 billion as of end-2019, climbing by 19.9% from the end-2018 level of P226.4 billion. A huge chunk or about P205.5 billion of their assets are loans. — LWTN

Entertainment News (12/15/20)

MMFF to showcase student short films

THE ANNUAL Metro Manila Film Festival (MMFF) 2020 will feature short stories by promising student-filmmakers from all over the country. Several entries were supposed to be part of the initial 2020 Summer MMFF Student Short Film Competition, which was postponed due to the coronavirus (COVID-19) pandemic. The tilt, along with other activities, have been moved to be part of the annual MMFF Christmas edition. This year’s edition will be held online through Filipino streaming service Upstream. Some of the short films are AaBaKaDa; Sala, Salin-Laway; Sina Alexa, Xander at Ang Universe; and Paano Maging Babae, all of which are by Digital Filmmaking sophomores from the De La Salle-College of Saint Benilde School of Design and Arts. The other films in the line-up are Balik-Bayan from the University of Makati; Kyokok (Nilingaw) from the Western Mindanao State University; Lipstick and Paraisong Parisukat from the Philippine High School for Art; Laruang Baril from the Far Eastern University; and Garbo from the University of Southeastern Philippines. Together with this year’s full-length films, the students’ shorts are available for viewing worldwide starting Dec. 25 on the video-on-demand platform Upstream PH through this link: https://upstream.ph/mmff/. For more information about the screening guidelines as well as the featured films of the MMFF 2020, visit the official Facebook page: https://www.facebook.com/mmffofficial/.

Pinoy singers in We Bare Bears song challenge

THREE OPM artists — Reese Lansangan, Zipporah Temelloso, and The Juans — have released their version of the theme song of the Cartoon Network cartoon series We Bare Bears, which was originally sung by Estelle. Reese Lansangan’s acapella version can be seen here: https://youtu.be/vm5OofdLD7k, while  former Little Big Shots star Zipporah Temelloso’s beatbox version — featuring the Microphone Mechanics) — can be seen at https://youtu.be/hhd0aJRZO8c. Finally, the four singers who make up The Juans collaborate with Topps Sarap for their version which can be seen here: https://youtu.be/UqvZrt_3f5s. We Bare Bears: The Movie was released on Cartoon Network and the streaming service HBO GO in September.

Blahza and Seira release new single

ASIAN-American hip-hop artist Blahza and newcomer Seira have released a new emo-rap single, “GPS.” Reminiscent of Juice WRLD with its chill, spacey touch and laid-back delivery, the song follows the rapper’s journey to finding his way back to love. According to Blahza, the song is a reassurance of his loyalty and romantic affection for the love of his life, despite having to spend days apart from each other. The track also features up-and-coming rapper and singer Seira, who delivered a lilting, smooth performance.

Britney Spears and Backstreet Boys release new single

BRITNEY Spears and the Backstreet Boys surprised music fans with the release of their collaborative track “Matches,” released last week via RCA Records. The Ian Kirkpatrick and Michael Wise-produced track is featured on the new edition of Britney’s 2016 album, Glory, along with recently released songs “Swimming In The Stars” and “Mood Ring (By Demand).” The song is currently at No. 2 on iTunes Philippines, while the deluxe edition of the album that it’s part of, peaked at No. 1 a few hours after the track’s release. For more information, visit Britney Spears’ official website www.britneyspears.com and the Backstreet Boys’ official website https://www.backstreetboys.com/. Britney Spears and Backstreet Boys’ “Matches” is out now on all digital platforms worldwide via Sony Music.

Fate: The Winx Saga on Netflix

FROM The Vampire Diaries’ Brian Young comes Fate: The Winx Saga, a live-action reimagining of the Italian cartoon series Winx Club by Iginio Straffi. Fate: The Winx Saga follows the coming-of-age journey of five fairies attending a magical boarding school in the Otherworld where they must learn to master their magical powers while navigating love, rivalries, and monsters that threaten their existence. The series stars Abigail Cowen, Hannah van der Westhuysen, Precious Mustapha, Eliot Salt, Elisha Applebaum, Sadie Soverall, Freddie Thorp, Danny Griffin, Theo Graham, and Jacob Dudman. The six-part series will premiere globally on Netflix on Jan. 22.

HBO Asia presents Taiwan original show

THE HBO Asia original Taiwan production of Adventure of the Ring explores how a misadventure brings out the true meaning of love. Adventure of the Ring, which premiered with two episodes on Dec. 13 on HBO and HBO GO, tells the stories of different couples who come in contact with an engagement ring. The show stars Chris Wang and Allison Lin.

Floods hurt property valuations in Marikina

PARTS OF Metro Manila experienced heavy flooding when a string of typhoons hit the country in November.

Sheila G. Lobien, CEO of the Lobien Realty Group, said in a statement the property valuations in flooded areas have been severely affected.

She noted land values in Marikina are around P40,000 to P70,000 per square meter (sq.m.), just below Caloocan land values of between P35,000-P65,000 per sq.m.

To compare, land valuations in Muntinlupa/Alabang are between P120,000-P140,000 per sq.m., while those in Quezon City, Ortigas and Bay City peak at P280,000 per sq.m. Property values in Bonifacio Global City and Makati City reach P350,000 and P400,000, respectively.

Ms. Lobien said property buyers should conduct due diligence when picking locations for offices and homes, avoiding areas located along fault lines, prone to flooding and other disasters.

In flood-prone areas, Ms. Lobien said cities should have a clear zoning mechanism for residential and commercial spaces.

“The government and private sector should really invest on infrastructure that will make the developments flood-ready,” she said, noting rivers should be dredged and flood control mechanisms strengthened.