Pag-IBIG Fund Calamity Loan ready for members affected by Taal unrest

January 20, 2020 | 4:01 pm

Top executives of Pag-IBIG Fund announced on Thursday (Jan.16) that they have allocated Calamity Loan funds for 2020 to help members affected by calamities, including the Taal Volcano eruption.

“Pag-IBIG Fund has allocated calamity loan funds this year, which will help our members living in Batangas and Cavite following the destructive effects of the ashfall and earthquakes caused by the eruption of Taal Volcano. This is in line with the directive of President Rodrigo Roa Duterte to provide Filipinos with responsive social benefits during trying times,” said Secretary Eduardo D. del Rosario, who heads the Department of Human Settlements and Urban Development (DHSUD) and the Pag-IBIG Fund Board of Trustees.

Under Pag-IBIG Fund’s Calamity Loan Program, eligible members may borrow up to 80% of their total Pag-IBIG Savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned. Affected members have 90 days from the declaration of a state of calamity in their area to avail of the loan.

Considering the plight of the borrowers, Pag-IBIG Fund is offering the Calamity Loan at a rate of 5.95% per annum – the lowest rate available in the market. The loan is payable over a period of 24 months, with the first payment deferred. Initial payment is due on the third month after the loan is released.

“We never want calamities to happen but when they do, we are ready to respond to the needs of affected members. In 2019, we released P1.51 billion to help 89,570 members affected by various disasters. For 2020, we hope to help more members with the allocated funds,” del Rosario said.

“Pag-IBIG Fund branches in Batangas and Cavite will remain open even as some of our offices and employees weren’t spared from the eruption. We are actively helping our employees there and bringing in supplies and added manpower, as part of our commitment to bring aid to calamity-stricken members,” he added.

Filipino success still not totally based on hard work, says study

January 20, 2020 | 12:35 am

THE Philippines placed 61st among 82 nations in a report measuring social mobility, suggesting that Filipino success does not depend entirely on hard work and is likely to be affected by family and socioeconomic background.

The country placed fifth among the seven Southeast Asian nations in the first Global Social Mobility report by the World Economic Forum (WEF), which measured the health, education, technology, work, social protections and the efficiency of countries’ institutions.

“Creating societies where every person has the same opportunity to fulfil their potential in life irrespective of socioeconomic background would not only bring huge societal benefits in the form of reduced inequalities and healthier, more fulfilled lives, it would also boost economic growth by hundreds of billions of dollars a year,” WEF said in an emailed statement.

The WEF report said economies with greater social mobility provide more equal and meritocratic opportunities regardless of socioeconomic background, geographic location, gender and origin.

A country that increased its global social mobility score by 10 points would translate to additional gross domestic product growth of 4.41% by 2030, according to the report.

The top five socially mobile countries were Nordic countries Denmark, Norway, Finland, Sweden and Iceland. Among Southeast Asian nations, Singapore led at 20^th place, followed by Malaysia (43), Vietnam (50) and Thailand (55).

The Philippines came ahead of Indonesia (67) and Lao People’s Democratic Republic (72). The Philippines scored 51.7 while top-ranking country Denmark scored 85.2 points. Singapore scored 74.6 points.

Few economies have developed the conditions that create social mobility, WEF said, identifying low wages, lack of social protection, inadequate working conditions, and poor lifelong learning systems for workers and the unemployed as areas for improvement.

“As a consequence, inequality has become entrenched and is likely to worsen amidst an era of technological change and efforts towards a green transition,” it said.

“The social and economic consequences of inequality are profound and far-reaching: a growing sense of unfairness, precarity, perceived loss of identity and dignity, weakening social fabric, eroding trust in institutions, disenchantment with political processes, and an erosion of the social contract,” World Economic Forum Founder and Executive Chairman Klaus Schwab said.

“The response by business and government must include a concerted effort to create new pathways to socioeconomic mobility, ensuring everyone has fair opportunities for success.”

Social mobility also shifts according to industry and location, with media and entertainment professionals encountering more workplace inequality and rural and low-income workers facing limited professional connections.

To increase social mobility, WEF said a new financing model that rebalances the sources of taxation must be created.

“Improving tax progressivity on personal income, policies that address wealth accumulation and broadly rebalancing the sources of taxation can support the social mobility agenda,” according to the report.

WEF also said that access to education must be improved, promoting skills development throughout workers’ lives. WEF added that people must have social protection outside their jobs, as workers have more flexible work relationships.

Companies can contribute by improving meritocratic hiring, paying fair wages and participating in upskilling programs. — Jenina P. Ibañez

Gov’t seen to have missed GDP goal

January 20, 2020 | 12:32 am

By Lourdes O. Pilar
Researcher

THE PHILIPPINE ECONOMY likely grew in the fourth quarter at its fastest pace for 2019 on the back of robust household spending and a rebound in government spending, but not enough to hit its full-year goal, BusinessWorld’s latest poll of economists showed.

A poll of 20 economists conducted late last week yielded a gross domestic product (GDP) growth median estimate of 6.4% for the fourth quarter and 5.9% for full-year 2019.

The quarterly estimate was faster than the 5.6%, 5.5% and 6.2% in the first to third quarters of last year. However, the annual estimate was below 2018’s 6.2% actual pace and the downward-revised 6%-6.5% target set by the government for 2019.

If realized, the full-year estimate would break the economy’s seven-year streak of at least six-percent growth.

Official GDP growth data will be released on Thursday by the Philippine Statistics Authority (PSA), a day after the release of the PSA’s fourth-quarter data on farm production, which has historically contributed nearly a tenth to GDP.

GDP growth slowed to 5.8% in last year’s first three quarters from the 6.2% in the same period in 2018. Much of the drag was due to the disappointing growth rates of 5.6% and 5.5% in the first two quarters of last year with analysts blaming the nearly four-month delay in the approval of the 2019 national budget which left new projects unfunded and stymied government spending.

To recall, the government operated on a reenacted 2018 budget from January to April 15, when President Rodrigo R. Duterte signed last year’s national budget into law but vetoed P95.3 billion in funds that were not in sync with state priorities, slashing the total to P3.662 trillion.

Socioeconomic Planning Secretary Ernesto M. Pernia gave a 6.5%-7% growth estimate for the fourth quarter back in November, citing faster household consumption from the holidays and the boost from easing inflation.

Moreover, the poll’s 5.9% median estimate for 2019 compares with the 5.7% forecast given by the International Monetary Fund, the separate forecasts of 5.8% by the World Bank and Moody’s Investors Service, and six percent by the Asian Development Bank, Fitch Ratings, and the ASEAN+3 Macroeconomic Research Office.

Economists pointed to faster household spending in 2019 brought by the easing of inflation last year following the almost runaway inflation in 2018.

“As expected, household final consumption, powered by remittances growth, higher employment and better incomes, has mainly fueled [fourth-quarter 2019] GDP growth,” said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion in an e-mail, who pegged fourth-quarter GDP growth at 6.4% and the full-year rate at 5.9%.

IHS Markit Asia Pacific Chief Economist Rajiv Biswas likewise pointed to household consumption, which was supported by “firm growth in inward remittances from workers abroad as well as continued expansion in government infrastructure spending.”

“Growth in the second half of 2019 has been boosted by a rebound in fiscal spending, following the delayed budget and spending freeze ahead of the 2019 midterm elections,” he said.

Mr. Biswas expects a year-on-year GDP growth rate of 6.3% in the fourth quarter and six percent for full-year 2018.

For Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort, the economy likely grew by 6.6%-6.7% in the fourth quarter and six percent last year, saying that consumer spending “could have also been supported… by the strongest employment data since revised records started 20 to 30 years ago” along with sustained growth in remittances, foreign investment inflows, as well as revenues from Philippine Offshore Gaming Operations, business process outsourcing firms, and tourism.

On the other hand, a number of economists in the survey pointed to capital formation’s weakness last year.

“Perhaps the biggest drag on the economy for the year [was] the negative performance of capital formation in [the second and third quarters] as the BSP’s (Bangko Sentral ng Pilipinas) 2018 rate hike salvo [weighed] on bank lending,” said ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa, who expected GDP growth to finish strong at 6.6% in the fourth quarter and six percent in 2019.

“With BSP quickly dialing back partially this tightening with 75 basis points worth of rate cuts in 2019, we can hope for a recovery in investment activity to close out 2019,” Mr. Mapa said.

Security Bank Corp. Chief Economist Robert Dan J. Roces forecast 6.6% and 6% growth in the fourth quarter and full year, respectively. “Capital formation meltdown was what really hurt us in the past quarters, plus delayed spending due to a delayed budget,” he said.

For University of the Philippines Economist Jefferson A. Arapoc, GDP likely grew 6.1% in the fourth quarter and 5.9% last year.

“Although government spending has started to pick up [in the fourth quarter], key sectors of the economy are continuously experiencing challenges,” he said.

Mr. Arapoc cited the PSA’s Monthly Integrated Survey of Selected Industries where data showed factory output, as measured by the volume of production index, declined for twelve straight months and posted an average decline of 7.6% in January-November 2019.

“[T]he agricultural sector remains sluggish due to several problems, which include the outbreak of the African Swine Fever and the havoc brought by typhoons Kammuri/Tisoy that affected seven regions in the country,” Mr. Arapoc added.

Moreover, trade is seen to be a net negative contributor to growth for 2019.

“Economic growth was largely held back by external headwinds, particularly the lingering impact of the US-China trade tussle despite the ‘phase one’ partial trade settlement between the world’s top two largest economies. Regional trade was majorly affected impacting supply chains within the Association of Southeast Asian Nations region,” UnionBank’s Mr. Asuncion said.

As of end-November, merchandise exports and imports slipped by 0.02% and 4.6%, PSA data showed, below the government’s 2019 growth targets of 1% and 2%, respectively.

Cash remittances, which fuels household spending that contributes nearly 70% to GDP, reached $27.231 billion in the 11 months to November, increasing by 4.4% compared to $26.094-billion haul in the same period in 2018.

Meanwhile, household spending went up 5.8% during last year’s first three quarters, faster than the 5.7% uptick in 2018.

The government spent P3.303 trillion as of end-November last year, 6.73% more than the P3.095 trillion in the same 11 months in 2018.

Furthermore, infrastructure and capital outlays slipped 5.5% to P628.5 billion in January to October last year from P665.1 billion in the same comparable 10 months in 2018.

Q4 GDP growth likely at 6.6-6.7% — Pernia

January 20, 2020 | 12:31 am

By Beatrice M. Laforga
Reporter

THE last three months of 2019 likely saw the economy grow at its fastest pace during the year, amid higher infrastructure spending, private construction and public consumption, Socioeconomic Planning Secretary Ernesto M. Pernia said.

Mr. Pernia told BusinessWorld that the country’s gross domestic product (GDP) might have expanded around “6.6-6.7%” in the fourth quarter.

On Thursday, the Philippine Statistics Authority will release the official data on the performance of the economy in the fourth quarter last year, and its full-year average.

If realized, a quarterly growth rate of at least 6.6% will be the fastest in more than two years, or since the seven percent growth recorded in the third quarter of 2017.

A 6.6% expansion will also outpace the 6.3% recorded in the last three months of 2018 and match the performance in the first quarter of the same year.

The economy grew by 5.6%, 5.5% and 6.2% in the first to third quarters last year, bringing the average to 5.8% during the January-September period.

In a mobile phone message on Friday, Mr. Pernia said “acceleration in government spending for infrastructure, private sector construction, stronger consumption spending given benign inflation and consumer optimism, SEA Games, PRRD’s (President Rodrigo R. Duterte) high approval and trust ratings” all contributed to the economic growth in the last quarter of the year.

Asked if the full-year average reached the narrowed 6-6.5% official target for 2019, he said: “yes!”

Public consumption should have benefited from easing inflation during the last three months, Mr. Pernia said, even as December’s print picked up to 2.5% in December from 1.3% in November and the 0.8% rate recorded in October.

For the full year, inflation rate for 2019 averaged at 2.5%, settling within the 2-4% official target range.

While infrastructure expenditure for November and December have yet to be released, latest available data showed that spending on infrastructure and other capital outlays was down by 12.9% year on year to P82.2 billion in October, reversing the 53.9% spike in the previous month.

However, overall state spending grew 22.36% to P365.6 billion in November from P298.8 billion a year ago.

Meanwhile, Mr. Pernia said the 11-day hosting of the 30^th Southeast Asian (SEA) Games in early December likewise helped boost economic growth.

The economic team last December narrowed last year’s official growth target to 6-6.5% from 6-7%, abandoning the 7% growth goal, as the delayed passage of the 2019 budget slowed the economy during the first half.

For this year, the GDP growth target was maintained at 6.5-7.5%, while those for 2021 and 2022 was scaled down to the same target range from the previous 7-8% goal.

Mr. Pernia earlier said that they abandoned the 8% growth target over the medium term, amid slowing global economy due to the prolonged US-China trade war. This will likely hurt the country’s exports and dampen foreign investments in emerging economies like the Philippines.

Analysts’ Q4, full-year 2019 growth estimates

January 20, 2020 | 12:30 am

PEZA expects higher investments if ‘investor-friendly’ CITIRA is passed

January 20, 2020 | 12:30 am

THE Philippine Economic Zone Authority (PEZA) is targeting to grow investments by 5-10% this year, amid lingering investor concern over the government’s plan to rationalize incentives.

“There are many pending applications for expansions of existing locators and new investments that are waiting for the kind of CITIRA (Corporate Income Tax and Incentives Rationalization Act) that will be passed,” PEZA Director General Charito B. Plaza told reporters in a mobile message on Saturday.

“We’re expecting a 5-10% target this year and would be higher if an investor-friendly CITIRA is passed.”

Ms. Plaza said that big-ticket investments for 2020 are in the works, including from Panhua Integrated Steel Company and North Star Valley Food Company of Canada.

In a press briefing on Friday, the PEZA chief said approved investment pledges for the past year declined as investors are taking a “wait-and-see” approach on the details and passage of the CITIRA.

The proposed CITIRA bill calls for the lowering of corporate income tax to 20% from 30% over 10 years, while removing redundant fiscal incentives.

PEZA is pushing for the implementation of a grandfather rule that retains the perks existing locators enjoy, and a longer transition period of 10-15 years.

The House of Representatives passed the CITIRA bill and transmitted it to the Senate last September. The measure is now pending at the Senate.

Finance Secretary Carlos G. Dominguez III expects the law to be passed by March 2020.

LOWER INVESTMENTS
Data provided by PEZA showed that approved investments in 2019 dropped 16.19% to P117.54 billion, from P140.24 billion in 2018. The 2018 figure represented a 41% decline in investment pledges from the previous year.

The investments refer to projects at PEZA’s economic zones throughout the country.

Approved investments in manufacturing slipped by 5.01% to P30.35 billion, weighed down by a decline in shipbuilding and chemicals investments.

On the other hand, investments in automotive and auto parts manufacturing increased significantly to P2.36 billion last year, almost nine times the P266 million in investments in 2018. Aerospace parts investments doubled to P2.17 billion.

Investments in the transportation and storage sector almost tripled to P429.93 million, while those in electricity, gas, steam, and air-conditioning supply doubled to P2.18 billion.

However, approved investments declined among high-value sectors, including a 15.14% drop to P66.48 billion in real estate activities and a 17.93% fall to P15.51 billion in administrative and support services investments.

PEZA also saw investments decline in priority sectors such as construction (12.51%) and information technology and business process management (14.53%). — Jenina P. Ibañez

8990 to sell P2.4-B receivables

January 20, 2020 | 12:09 am

By Denise A. Valdez
Reporter

MASS housing developer 8990 Holdings, Inc. is looking to sell around P2.4-billion worth of contract-to-sell (CTS) receivables, a local debt watcher said.

In a statement over the weekend, Philippine Ratings Services Corp. (PhilRatings) said the listed firm is eyeing to securitize low-cost residential receivables, or convert its illiquid assets into a security through quantitative analysis.

The security will have a senior class and subordinated certificates, or Tranche A and Tranche B, respectively. The Tranche A certificates will amount to P1.8 billion and have a tenor of 10 years, while the Tranche B certificates will amount to P600 million and will be amortized after settling the Tranche A certificates.

PhilRatings disclosed 8990’s plans to announce that it has given the firm a conditional credit rating of “PRS Aa plus” for the Tranche A certificates and “PRS A” for the Tranche B certificates.

A PRS Aa rating means an offer is “of high quality and (is) subject to very low credit risk,” while a PRS A rating means the company making the offer has strong capacity to meet its financial commitments, although it is “susceptible to the adverse effects of changes in economic conditions.”

The ratings were also given a stable outlook, which means PhilRatings expects that the rating would not change in the next 12 months.

“The…ratings are considered conditional until the executed documentation for the transaction has been submitted to PhilRatings for review,” the debt watcher said.

“The conditional ratings were assigned based on draft transaction documents, and will be converted into final ratings once PhilRatings has determined that the representations as stated in the initial documents are also captured in the final signed documents,” it added.

8990 has been selling CTS receivables in recent years as a means to raise funds instead of incurring debt. It said last year its net debt-to-equity as of end-September stood at 0.94x, falling below its covenant ratio of 1.5x.

The company previously said it wants to double its 2019 capital expenditure of P4 billion this year to support its list projects, among which is its condominium building Urban Deca Homes Ortigas.

Earnings of the listed firm grew 23% to P4.21 billion in the first nine months of 2019 amid a 21% rise in revenues to P10.51 billion. Its shares at the stock exchange were flat on Friday’s trading at P14.72 each.

Bentley redefines pre-owned car ownership with ‘Certified by Bentley’ global program

January 20, 2020 | 12:09 am

By Manny N. de los Reyes

BRITISH ultra-luxury car maker Bentley recently launched a new global program that sets the benchmark for purchases of luxury pre-owned cars, and which opens the door into the rarefied world of Bentley ownership.

Called ‘Certified by Bentley,’ the program provides discerning clients an exclusive certificate of authenticity on a previously owned Bentley, affording them peace of mind. Included in this certificate of authenticity are evidence of where a particular Bentley was manufactured, a full service history, a detailed Bentley technical inspection, as well as access to Bentley’s retailer network expertise and factory-trained technicians.

The certificate of authenticity is also a guarantee of quality and performance as the document provides extra reassurance about the heritage and exemplary craftsmanship that is the hallmark of every Bentley. Certified by Bentley cars are guaranteed to have been fully serviced, using only genuine Bentley parts. The comprehensive 12-month warranty that comes with it can be further extended, too.

The Certified by Bentley program also gives owners access to a unique and select lifestyle that come with joining the brand’s network of discerning customers. Invitations to exclusive events around the world and to the Bentley Factory Tour are just a few of the exceptional ownership benefits, as well as a subscription to Bentley Magazine.

“When customers select a Certified by Bentley car, they are making an investment in a brand that has always crafted extraordinary vehicles. The exceptional quality of every car means that whether new or Certified by Bentley, owning a Bentley is a wise decision,” said Mark Keeping, head of pre-owned at Bentley Motors.

The executive added that “costs of ownership are lower than might otherwise be expected, making owning a Bentley an option for a wider number of potential customers.”

Few cars on the road are as finely crafted as a Certified by Bentley model. With a heritage stretching back 100 years, every car to bear the Bentley marque has been built to the same exacting standards, with no compromise on luxury or performance. It is estimated that around 85% of all Bentleys built throughout the brand’s existence are still on the road.

In the Philippines, Bentley is presently offering a 2019 Bentley Continental GT W12 which has traveled only 750 kilometers. It is an extraordinary car that comes at an excellent price. This car can be viewed at the Bentley showroom in Bonifacio Global City.

The definitive luxury Grand Tourer Continental GT is a statement of true luxury, marked by a bold, sculptured exterior design. Its interior offers unrivaled refinement that seamlessly integrates natural materials and cutting-edge technology. Designed, engineered and hand-crafted in Britain, the third-generation Continental GT is powered by 6.0-liter W12 TSI engine that delivers 626 hp and 900 Nm of torque.

Tax appeals court cancels URC’s P2-B assessment

January 20, 2020 | 12:08 am

By Vann Marlo M. Villegas
Reporter

THE Court of Tax Appeals (CTA) cancelled the P2-billion tax assessment against Universal Robina Corp. (URC) for lack of due date and exact amount in the assessment notices.

In a 23-page decision dated Jan. 14, the court’s first division said the formal letter of demand issued by the Bureau of Internal Revenue against URC lacked definite amount and due date for the payment of its tax liabilities.

It noted that the demand letter stated that the interest “will still be adjusted if paid beyond the date specified therein” but also does not include the due date.

“Correspondingly, the subject tax assessment is void, and thus, bears no valid fruit,” the decision penned by Associate Justice Catherine T. Manahan read.

“In view of the finding that the subject tax assessments are invalid, it becomes unnecessary to address the arguments raised by the parties,” it added.

The court noted a previous decision of the Supreme Court which ruled that a Final Assessment Notice is invalid for lack of definite amount due despite providing a computation because it meant that its liabilities is still subject to modification depending on payment date.

The lack of due date also “negates…demand for payment,” the High Court’s decision read.

URC was questioning its assessed liability for improperly accumulated earnings tax (IAET) for the year ending on Sept. 30, 2010 worth P2 billion.

It was assessed for the alleged deficiency of P2.5 billion, which consists of IAET, income tax, value-added tax, expanded withholding tax, documentary stamp tax, and withholding tax on compensation.

Section 29(B)(1) of the National Internal Revenue Code of 1997 states that IAET applies to “every corporation formed or availed for the purpose of avoiding the income tax with respect to its shareholders or the shareholders of any other corporation, by permitting earnings and profits to accumulate instead of being divided or distributed.”

URC said it does not have any IAET and that its additional paid-in capital is not earnings or profits. It also said that it is a publicly-held corporation exempt from IAET. BIR contends that it is liable to pay the assessed deficiency.

Presiding Judge Roman G. del Rosario and Associate Justice Esperanza R. Fabon-Victorino concurred in the decision.

Rolls-Royce sells highest number of cars ever in 2019

January 20, 2020 | 12:08 am

By Manny N. de los Reyes

BRITISH ULTRA-LUXURY car maker Rolls-Royce Motor Cars has set a new record as it delivered the highest number of cars in 2019 — the highest number of automobiles sold in a year in the storied marque’s 116-year history.

A total of 5,152 cars were delivered to customers in over 50 countries around the world, an increase of a quarter on the previous record set in 2018. With these historic results, Rolls-Royce continues to make a meaningful contribution to the overall performance of its shareholder, BMW Group.

“This performance is of an altogether different magnitude to any previous year’s sales success. While we celebrate these remarkable results we are conscious of our key promise to our customers, to keep our brand rare and exclusive. We are pleased and proud to have delivered growth of 25% in 2019. Worldwide demand last year for our Cullinan SUV has driven this success and is expected to stabilize in 2020. It is a ringing testament to the quality and integrity of our products, the faith and passion of our customers and, above all, the skill, dedication and determination of our exceptional team at the Home of Rolls-Royce at Goodwood and around the world and our dedicated global dealer network,” declared Rolls-Royce Motor Cars CEO Torsten Müller-Ötvös.

WORLDWIDE ACCLAIM
Sales grew across all regions during the year, driven by strong customer demand for all Rolls-Royce models. The company reported significant sales growth in every one of its key global markets. North America retained top status (around a third of global sales) followed by China and Europe (including UK). Individual countries that achieved record sales results included Russia, Singapore, Japan, Australia, Qatar and Korea.

In 2019, Rolls-Royce automobiles were sold in more than 50 countries worldwide through a global network of 135 dealerships. As part of its commitment to long-term sustainable growth, RollsRoyce announced two new dealerships during 2019 — Rolls-Royce Motor Cars Brisbane and Rolls-Royce Motor Cars Shanghai Pudong. Development of the new Rolls-Royce Motor Cars flagship dealership in Berkeley Street, London — more than twice the size of the previous location — is under way and is due for launch later in the year.

The flagship Phantom retains its rightful place as the company’s pinnacle product, with Dawn and Wraith continuing to dominate their respective sectors; strong demand was experienced for all three models during the year. Cullinan, the marque’s new SUV, successfully translated the media plaudits and public acclaim into the largest advance order book and fastest postlaunch sales growth of any Rolls-Royce model in history.

BESPOKE BADDIE — BLACK BADGE
In November 2019, the marque completed its dark, edgy Black Badge family with the addition of Cullinan Black Badge alongside Ghost, Dawn and Wraith variants, all of which were highly sought-after by customers seeking a more individual, rebellious expression of the RollsRoyce brand.

In its first full year of availability, Cullinan exceeded even the highest expectations raised by its successful launch. The world’s preeminent super-luxury SUV has become the fastest-selling new Rolls-Royce model in history.

The fervor throughout the year around the arrival of Cullinan was matched only by the media and public sensation occasioned by the launch of Cullinan Black Badge, ‘The King of the Night’, in November. This completed the Black Badge family of unapologetic, dynamic products created for an emerging generation of super-luxury consumer; people who refuse to be defined by traditional codes of luxury, follow their own path and make their own rules.

GOODBYE, GHOST — UNTIL THE NEXT
2019 also marked the end of Ghost production after 11 years of uninterrupted commercial and critical success. Since its launch at the Frankfurt Motor Show in 2009, Ghost has established itself as an undisputed modern classic. The most popular Rolls-Royce model of the Goodwood era, Ghost attracted a new audience of younger, often self-made, entrepreneurial customers to the Rolls-Royce brand. An extended wheelbase version was introduced in 2011 and an updated Ghost Series II was unveiled in Geneva in 2014. The last Ghost of the current generation left the Goodwood production line at the end of 2019.

Ghost has been a highly successful and vitally important car for Rolls-Royce. Over its 11-year lifecycle — a truly remarkable record for any motor car — it became the biggest-selling Rolls-Royce not just of the Goodwood era, but in the entire history of the marque. The commercial success of Ghost placed Rolls-Royce in a position to scale up its production and make the massive investments that have led to it becoming the truly global brand it is today.

Ghost’s successor is due for launch in mid-2020 after five years in development. With market availability from the fourth quarter, the successor will elevate the Ghost name, and the company itself, to new heights of excellence and ambition in design, engineering, materials and driving dynamics.

BESPOKE: GOODWOOD’S JEWEL IN THE CROWN
Global demand for Rolls-Royce Bespoke reached a new peak in 2019. The Bespoke Collective at the Home of Rolls-Royce in Goodwood, West Sussex, comprises several hundred creative designers, engineers and craftspeople. These highly talented men and women take enormous pride in fulfilling unprecedented levels of customer requests for Bespoke personalization and delivering on beautiful individual commissions such as the Rose Phantom. Undisputed global leaders in their pursuit of perfection, the Bespoke Collective captured the imagination of customers, enthusiasts, media and fans alike in 2019 with some of the most spectacular Collection Cars ever created in the history of the brand.

Among the year’s Bespoke highlights was the Zenith Collector’s Edition of Rolls-Royce Ghost. Limited to just 50 examples, this masterpiece was created to mark the end of Ghost’s remarkable 11-year reign.

A DIVERSE AND EXPANDING FAMILY
At more than 2,000 strong, with 50 nationalities represented, the work force at the Home of Rolls-Royce is now at its largest since the opening of Rolls-Royce’s Global Centre for Luxury Manufacturing Excellence, in 2003. During 2020, 50 new jobs were created to meet expanded global demand.

This year’s intake of 26 new entrants on the company’s highly successful Apprenticeship Program included the first-ever Sir Ralph Robins Degree Apprenticeship candidates. Named after the ex-CEO of Rolls-Royce plc, Sir Ralph has served as a Non-Executive Director of Rolls-Royce Motor Cars since its inception in 2003.

Since the launch of the Apprenticeship Program in 2006, almost 200 participants have completed a combination of hands-on practical training alongside skilled Associates and vocational training at local colleges. A number of these remarkable men and women have gone on to hold important technical and supervisory roles within the company.

BULLISH IN BESPOKE
The year saw significant new investment in the manufacturing plant at the Home of Rolls-Royce at Goodwood, reaffirming both the company’s commitment to its UK operations and its buoyant outlook for the years ahead. Projects included further refinements to the already world-class manufacturing facilities, equipment and processes, to maximize efficiency and ensure the highest levels of quality as demanded by Rolls-Royce customers. A new two-storey development, due for completion in the first quarter of 2020, will add more than 1,000 square meters to the ground floor Assembly Hall, and create additional first-floor office space.

“There is no other company like Rolls-Royce Motor Cars: we are all conscious of what a privilege it is to design, build and deliver the best car in the world for our customers. PersonalIy, I continue to feel honored and humbled to have led this great company for the past decade,” Mr. Müller-Ötvös concluded.

Implementing rules on real estate investment trust ready for signing

January 20, 2020 | 12:07 am

THE government is set to sign today the amendments to the implementing rules and regulations (IRR) of the Real Estate Investment Trust (REIT) Act, which is expected to draw up REIT registrations from listed property firms.

The Securities and Exchange Commission (SEC) announced through a media invitation on Friday the joint signing ceremony for the REIT guidelines with the Department of Finance (DoF), Bureau of Internal Revenue (BIR) and the Philippine Stock Exchange, Inc. (PSE) today.

Republic Act No. 9856 or the REIT Act was released by the government in 2009 as part of “(promoting) the development of the capital market, …broadening the participation of Filipinos in the ownership of real estate…, (and using) the capital market as an instrument to help finance and develop infrastructure projects.”

While the REIT Act requires the publication of the IRR within 90 days from the law’s effectivity, disagreements on a number of its provisions such as the minimum public ownership requirement delayed the release of the guidelines by more than a decade.

In October last year, the SEC released its draft IRR which reduced the minimum public ownership requirement for REITs to 33% from the current 40% within one year and 67% within three years, and required all income generated from REITs to be invested back to the Philippines.

But SEC Commissioner Ephyro Luis B. Amatong said in November that conflicting rules with the BIR is another thing that the SEC has to settle before the release of the IRR.

“Unless the BIR changes the revenue regulation to be in line with the proposed change in the SEC’s regulation lowering back the minimum public float requirement for a REIT to 33%, there will be potential confusion among issuers. SEC will be prescribing a lower threshold, and if the BIR does not amend its rules, the tax benefit will not come in unless we get 66%. So we’re coordinating with the Department of Finance in order to make sure that the regulations are aligned,” Mr. Amatong said then.

The release of the IRR is expected to result in REIT listings from private firms such as Ayala Land, Inc. and DoubleDragon Properties Corp. Other firms such as Megaworld Corp., Robinsons Land Corp. and Century Properties Group, Inc. have also expressed interest in REITs.

The PSE also sees the REIT rules as one of the growth drivers for the local bourse this year, in line with expectations of investment banking arm First Metro Investment Corp. and brokerages Philstocks Financial, Inc. and 2Tradeasia.com. — Denise A. Valdez

Nissan relaunches Pasig dealership with Autohub Group

January 20, 2020 | 12:07 am

IN LINE with the brand’s commitment to make Nissan products and services more accessible to more people in the country, Nissan in the Philippines together with the Autohub Group relaunched the Nissan Pasig dealership in a new location along Eulogio Rodriguez Jr. Ave. (C5 Ave).

The 1,400-sq.m. dealership can house up to nine display and has two Nissan Express Service bays. The dealership is also connected to a bigger 3,000-sq.m. service center with ten service bays located in a nearby area.

“The relaunch of the Nissan Pasig dealership is part of the long-standing partnership between Nissan and the Autohub Group. This new location enables us to offer an improved Nissan Customer Experience by providing better access and more reliable services to our customers in the Pasig City area,” said Nissan in the Philippines President and Managing Director Atsushi Najima.

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