Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 8976

DFPC eyes revenue boost from Visayas, Mindanao

DAVAO CITY — Duty Free Philippines Corp. (DFPC) is eyeing a revenue boost with the renovation and opening of new stores next year in the Visayas and Mindanao.

In a statement, the government-owned retail company said their shops at the airports in the cities of Iloilo, Bacolod, and Davao are already lined up for refurbishment within the first quarter of 2020, while the one in Kalibo, Aklan will be expanded.

“We are eyeing (outlets) on Puerto Princesa airport (in Palawan) and the new Panglao airport in Bohol,” said Maria Lourdes P. Malabuyo, DFPC marketing officer.

She said they are just waiting for “the international flights to improve or increase in terms of frequency and origin/destination to make the operations of duty free shops feasible and sustainable.”

DFPC reported a $217-million revenue in 2018, up 2% from $213 million the previous year.

Of the total income, about 15% comes from the Visayas outlets, mainly the Mactan Cebu International Airport.

The Davao City outlet, the only one in Mindanao, accounted for under 1%.

DFPC currently has 11 shops nationwide, including its flagship Fiestamall adjacent to the Ninoy Aquino International Airport.

It has also started operating its “Shop-Now-Pick-Later” program, an online shopping system wherein buyers can place their orders from their point of origin and get the items at the Fiestamall. — Carmelilto Q. Francisco

Boeing CEO says ‘fully supportive’ of directors’ move to split jobs

SEATTLE — Boeing Co Chief Executive Dennis Muilenburg told employees he was “fully supportive” of the board’s decision to split his chairman and CEO roles, allowing him to focus on running the world’s largest plane maker, according to a memo seen by Reuters on Wednesday.

A Boeing spokesman did not provide an immediate comment.

Muilenburg said the “division of labor” was the latest action taken by the board and senior company leaders to “strengthen Boeing’s governance and safety management processes” as it struggles to get its fastest-selling 737 MAX jetliner back into the air following deadly crashes.

“I’m accountable to you, our customers, the flying public and all of our stakeholders for delivering on this — and each of us carries our share of the responsibility,” Muilenburg said in the memo sent after the board’s decision was announced on Friday.

Boeing said the board had stripped Muilenburg of his chairmanship title, in an unexpected strategy shift after months of pressure capped by a global aviation task force report that criticized development of the 737 MAX.

Lead Director David Calhoun, a senior managing director at Blackstone Group, will take over as non-executive chairman, Boeing said. It added that the board had “full confidence” in Muilenburg, who will retain the CEO and president titles and remain on the board.

“I’m fully supportive of this division of labor and look forward to continuing my close partnership with Dave,” Muilenburg told employees in the memo.

The decision came some six months after Muilenburg survived a shareholder motion to split his chairman and CEO roles, part of the intense pressure he has faced during the worst crisis of his four years at the helm.

Muilenburg is set to testify before a US House panel later this month and lawmakers have raised questions about Boeing’s actions prior to the 737 MAX certification.

Federal prosecutors aided by the FBI, the Transportation Department Inspector General and several blue-ribbon panels are also investigating the plane’s approval. — Reuters

Hong Kong banks to roll out support measure to small businesses — HKMA

HONG KONG — Nine major banks in Hong Kong have agreed to adopt a number of measures to support small and medium enterprises (SMEs) in Hong Kong, the central bank said on Wednesday, as four months of anti-government protests start taking its toll on local businesses.

The banks will “proactively consider” allowing SME customers facing difficulties to extend or reschedule repayments, and will not change the terms of loans to the real estate sector even if landlords offer retailers reduced rents, it said.

The Hong Kong Monetary Authority (HKMA), the city’s central bank, announced the measures after meeting the nine banks, which it did not name, under the newly established “Banking Sector SME Lending Coordination Mechanism.”

Hong Kong’s largest banks include HSBC, Bank of China (Hong Kong) and Standard Chartered.

Hong Kong, which has been rocked by often huge and violent protests against what is seen as Beijing’s tightening grip on the city, is facing its first recession in a decade.

The economy shrank 0.4% in April-June from the previous quarter, and conditions have sharply deteriorated since then.

Retail sales in Hong Kong were the worst on record in August, down 23% from the previous year, the Hong Kong government said earlier this month.

The Chinese-ruled territory’s leader Carrie Lam in her annual policy speech in the legislature on Wednesday offered no direct olive branch to protesters, hoping instead to ease resentment by building public housing.

The HKMA said if banks revised repayment terms to support borrowers for a short period, they would not have to categorize the loan as “nonperforming” or set aside funds in case the borrower was unable to repay.

The latest move comes after the central bank on Monday cut the amount of cash that banks must keep as reserves, releasing an extra HK$200-300 billion ($25.5-38.2 billion) into the broader economy.

“We understand that the operating environment of SMEs is very difficult amid the current economic downturn, said Mary Huen, chair of the Hong Kong Association of Banks, an industry group.

“Therefore, banks have introduced various measures to support the SMEs with the government.” — Reuters

What to see this week

4 films to see on the week of October 18 — October 24, 2019

Maleficent: Mistress of Evil

IN THIS SEQUEL to the 2014 box office hit, Maleficent and her goddaughter Aurora are challenged to keep the peace between fairies and human as tensions rise due to Aurora’s pending nuptials with Prince Phillip. Directed by Joachim Ronning, the film stars Angelina Jolie, Elle Fanning, Sam Riley, David Gyasi, and Michelle Pfieffer. Entertainment Weekly’s Leah Greenblatt writes, “Maleficent: Mistress of Evil’s script, sadly, is another story. Or not much of a story at all really: Instead, it mostly registers as a series of elaborate fauna-drenched screensavers stretched to fit across two hours of vague Disney myth.” Rotten Tomatoes gives it a rating of 46%.

MTRCB Rating: G

The Current War

BENEDICT CUMBERBATCH plays Thomas Edison whose plans to bring electricity to Manhattan are upended by charismatic businessman George Westinghouse (Michael Shannon) who is confident that he and his partner, the upstart genius Nikolai Tesla (Nicholas Hoult), have a superior idea to electrify America. Directed by Alfonso Gomez-Rejon, the film also stars Tom Holland, Katherine Waterston and Matthew MacFadyen. IndieWire’s David Ehrlich writes, “A torpidly slow epic with a script that moves at the speed of light, the film is pockmarked with incidents that never cohere into a clear narrative.” Rotten Tomatoes gives it a 31% rating.

MTRCB Rating: PG

Prey

A TROUBLED high school senior is brought to an abandoned island to help him improve his behavior. Despite the isolation, he soon realizes that he is being pursued by a sinister entity. Directed by Franck Khalfoun, the film stars Logan Miller, Kristine Froseth, and Jolene Anderson. The Hollywood Reporter’s Franck Scheck writes, “Blumhouse has certainly proved very successful with its inventive, low-budget approach to horror, but now that the company is spewing out movies like an assembly line, more and more duds are starting to appear. Everything about this effort, including its hackneyed, overfamiliar title, smacks of laziness and a cynical indifference to its lack of originality.” Rotten Tomatoes gives it a 17% rating.

MTRCB Rating: PG

Isa Pa, With Feelings

MARA, an aspiring architect, meets Gali, a man with a hearing disability who learns music through vibrations. Gali communicates with and teaches Mara basic sign language so that she may also communicate with her deaf niece. Directed by Prime Cruz, the film stars Maine Mendoza and Carlo Aquino.

MTRCB Rating: PG

Marks & Spencer CFO H. Singer to step down by end of the year

MARKS & SPENCER (M&S) said on Wednesday its chief financial officer, Humphrey Singer, whose departure was announced last month, will step down on Dec. 31.

Singer’s exit was announced after the company’s clothing, home and beauty managing director Jill McDonald was sacked in July, after which Chief Executive Officer Steve Rowe took direct control of the division.

The company has not appointed a new finance chief yet and a Marks & Spencer spokeswoman declined to comment on who will succeed Singer.

One of the biggest names in British retail, 135-year-old Marks & Spencer has struggled to compete effectively on clothing with the likes of Zara and H&M.

The pay terms of Singer, who joined Marks and Spencer from electrical retailer Dixons Carphone in 2018, will be in line with his service agreement, and he will paid in monthly installments between Jan. 1 and March 31, 2020. — Reuters

Alveo Land to develop 120-hectare commercial district in Biñan, Laguna

ALVEO LAND Corp. is developing a 120-hectare mixed-use commercial district in Biñan, Laguna, where it has so far sold P2.8 billion of the property in its initial sales launch last week.

In a media briefing in its office in Taguig City yesterday, the upscale unit of Ayala Land, Inc. (ALI) presented its biggest commercial district project to date, Broadfield in Laguna, located four kilometers from development complex Nuvali and 21 kilometers from Alabang.

The company is targeting to raise P17.7-18 billion from selling the 36.6-hectare Phase 1 of the project. It will have a total of 87 lots, of which 35 lots have been offered last week for an average list price of P185 million. Turnover of this segment is scheduled in 2023.

“Our target markets are local investors and local entrepreneurs… They plan to either build their own building and have a commercial space under, or for the investors, sometimes they lease the land to other companies,” Alveo Land Chief Operating Officer Rufino S. Gutierrez said.

Phase 2 of the project, which covers the remaining 43 hectares of the whole Broadfield land, will be built once the company hits 70-80% of the target P17.7 billion sales from Phase 1. Further details of this segment haven’t been laid out by the company yet.

Mr. Gutierrez said Alveo Land is optimistic about the growth of the southern district for both residential and commercial use, noting residential land prices have more than tripled in the past 12 years and commercial land prices have quadrupled in the past decade.

“Very positive yung outlook because of the infrastructure (The company’s outlook is very positive because of the infrastructure),” he said, referring to the Cavite-Laguna-Batangas area, south of Metro Manila.

Mr. Gutierrez said the toll road projects under construction, specifically the Cavite-Laguna Expressway and the proposed Cavite-Tagaytay-Batangas Expressway, will help improve connectivity to the commercial district once it opens.

“Plus the surrounding immediate area niya, very thriving. Ang daming residential, ang daming companies, businesses, industries (The surrounding area is also thriving, filled with residential spaces and various companies, businesses and industries),” Mr. Gutierrez added.

Once completed, Broadfield will be equal to half the size of Bonifacio Global City in Taguig (240 hectares). Its main roads will be designed similarly, with bike lanes, walkways and tree-lined streets.

About 80 hectares of the total land area will be allocated to commercial spaces while 40 hectares will be dedicated to residential use. — Denise A. Valdez

It’s about DIME

The business community should know and appreciate the efforts of the Department of Budget and Management (DBM) to monitor big-ticket infrastructure projects in their implementation, through its Project DIME, for Digital Information for Monitoring and Evaluation.

Project DIME aims to monitor selected high-value government projects by comparing fund utilization vis-à-vis physical accomplishment through the use of various DDITs or Digital Data Imaging Technologies.

The pilot applications on 12 agencies’ selected infrastructure projects have been completed in 2018, assessed, and reported on. I share the findings and results from information sourced from DBM’s DIME staff.

But first, a little bit of history. The project was officially launched in March 2018 by then DBM Secretary Ben Diokno with Department of Science and Technology (DoST) Secretary Fortunato de la Peña. The project uses DoST-developed technologies and expertise on data acquisition and management.

The DBM report explains: “The perennial underspending among agencies, weak M&E systems and the impending shift to a one-year horizon for program/project implementation and goods/services delivery are the context which led to the conceptualization and eventual adoption of the Project DIME (or Digital Imaging for Monitoring and Evaluation). The project is one of the strategies to exercise the management function of DBM and see to it that every peso allocated is used as intended or budgeted. Project DIME is anchored on three key thrusts, including: 1) Results-based monitoring, evaluation and reporting; 2) Use of digital data imaging technologies (DDIT); and 3) Collaboration and Partnership.”

Collaborating with DoST, the DBM obtains evidence of performance remotely using DDIT such as satellites, drones, LIDAR or Light Detection and Ranging, and geo-tagging. The use of DDIT allows monitoring projects in remote areas where physical inspection would be difficult.

The selection criteria for programs/projects included in DIME’s initial scrutiny included: (a) their priority status in the administration’s infrastructure program; (b) the magnitude of the fund requirements; (c) the perceived weak performance budget utilization rate (low utilization rate or slow-moving); (d) the reach or impact of the project (nationwide or international); and others, like a record of adverse COA findings.

By these criteria, the pilot programs/projects chosen included: for hard programs/projects — the construction and improvement of access roads to airports/seaports (DPWH); construction/repair of farm-to-market roads (DA); construction/repair of national and communal irrigation systems; national greening program (DENR); and the North-South Commuter Railway/Tutuban Manila to Malolos (DOTr).

For semi-hard programs/projects: construction of new classrooms (DepEd); Health Facilities Enhancement Program (DoH); community fish landing centers (BFAR); free Wi-Fi (DICT); and water supply infrastructure for 432 waterless municipalities.

For soft programs/projects: Pantawid ng Pamilya Pilipino Program (DSWD); and Universal Access to Quality Tertiary Education (CHED).

Hard projects are infrastructure projects that the existence of which can be validated remotely, generally “horizontal structures” such as roads, railways, irrigation canals, and trees. Semi-hard projects are generally “vertical structures,” e.g. buildings, capable of detection remotely but needs on-site validation for accurate assessment of progress and performance. Soft projects are those intangible assets such as financial grants to target beneficiaries. These classifications allow better choices of monitoring approaches.

Here’s a summary of the 2018 financial and physical status:

Most monitored programs had above 50% obligation rates (budget utilization rate or BUR) but majority had less than 70% disbursement rate, i.e. seven out of 12 of programs. Below 70% BUR was the criterion for inclusion in the pilot DIME project.

“Physical performance painted a varied picture in accomplishments with four out of 12 programs reported above 70%, and to a large extent projects are in the ongoing phase. On the other hand, the DICT and DoH have the biggest gap in accomplishment, 92% and 69% respectively. Others have between one percent and 31% in undelivered targets.”

Not the best financial and physical performance report, admittedly, but with the DIME Project, DBM is better enabled to monitor infrastructure projects, citizens can participate in the monitoring (that’s the intention), and we all get to know what’s happening on real time. With DIME, “ghost projects will be a thing of the past,” assures Secretary Ben Diokno.

Actually, DIME is not that simple a project to roll out. Four working groups are involved: Central Office Project Monitoring Teams; Regional DIME Units; Project Management Office; and Teams from DOST UP. There are desk reviews and coordination meetings with all concerned agencies. There are on-the-ground validation inspections. Technical staff conduct data analytics. Researches and surveys are pursued to better develop methodologies for monitoring and evaluation.

Moving forward, the DIME Project is being further developed for accuracy and expansion of coverage. One theme pursued is to adopt civic technology and integrate citizen participatory monitoring mechanisms in basic delivery and the implementation of national and local infrastructure projects.

This is perhaps a little bit tedious as a detailed narrative, but can’t we be encouraged? This is innovative use of technology to enforce transparency and accountability in public spending, what all of us are loudly clamoring for. Let’s look forward to participate in the monitoring as citizens. For now, let’s recognize DBM for this worthy initiative.

 

Santiago F. Dumlao, Jr. is currently Secretary-General of the Association of Credit Rating Agencies in Asia (ACRAA)

Questions to ask when your boss changes his management style

I’ve been working for my current boss for more than five years now. He’s our department head, while I work as one of his three managers. Two months ago, I noticed a change in how he supervises my work. He has become very strict with my attendance and rejects my work even over minor issues. At times, he drags his feet when my work is clearly superior to that of other managers. This week, he gave me an almost impossible assignment at which others had failed before. I’m worried. — Is it me or is it the boss?

Our mouth is the restaurateur’s friend, the dentist’s fortune, the orator’s pride, and the fool’s trap. If you have a great boss, who for some reason has changed his management style for the worse, then watch out. Find out how he verbalizes things with you and reflect on his body language.

Just the same, don’t overreact and come to a quick judgment since certain circumstances are not always what they seem. For one, maybe you’re not being singled out as your colleagues may have suffered the same treatment. After all, people change styles, and even if you appear to be in a bad situation now, you may be faring well with top management, which could be your salvation, if worse comes to worst.

But one thing is sure. You can’t control the attitude, behavior, and style of your boss towards you. It’s unfortunate at this point. Therefore, I suggest that you look at yourself in the mirror and reflect by answering the following questions:

One, are you being perceived as a threat, traitor, or both? You may be doing something that is giving rise to that perception. This could happen if you are too close with or often initiate conversations with top management on practically anything.

Two, are you being micro-managed unlike before? It could mean that your boss is trying to discover some of your faults in preparation for a disciplinary action, if not poor performance rating.

Three, how would you appraise your work performance? If you think you’re doing a good job, it would be difficult for your boss to bully you. If you’re faring poorly, then you must prepare for the worst.

Four, are you being left out in department meetings? Or, does your boss schedule an emergency meeting when you’re not around? Does he rely much on the inputs of your second-in-command or other department managers?

Five, does he gives you objective feedback about your work? Does he keep on dragging his feet on your recommendations, no matter how good they are? Does he openly criticize your work within hearing distance of others?

Six, do you have reason to believe your boss is ignoring you? Despite making firm appointments, has he cancelled any scheduled meetings for no clear reason?

Seven, have you done something to merit his change in attitude towards you? Try to recall what happened in the past. Maybe you’ve unconsciously disrespected your boss in front of other people? Or, maybe you’ve circumvented his instructions and word of it reached him.

Last, do you have the confidence to bring up your concerns with him? It’s difficult to speculate about your boss’s motives. Therefore, there’s no other way but to talk to him and discover the basic issue. It’s not easy. But you don’t have much choice.

Whenever possible, do everything to correct the situation. You can’t go on working with your boss given the circumstances. If necessary, consult friendly higher-ups or the CEO about what to do. If they value harmonious work relationship, they can act properly and give you the best advice possible.

If not, they will initiate a move to reconcile you with your department head. If not, and top management gives you a hint about your bleak future in the organization, then the next best thing for you is to prepare for your eventual resignation. If that is imminent, negotiate for lead time of at least two months so that you can get a replacement job somewhere.

Whatever your approach, you must always remember that dealing with a boss’s personality and style are often crucial to having a sustainable and mutually-acceptable work relationship.

ELBONOMICS: If you want an amazing relationship with people, be the first one to establish an amazing relationship with them.

 

Send your anonymous workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting

Your Weekend Guide (October 18, 2019)

Maleficent display

THE Maleficent “Welcome to the Moors” exhibit

SM Cinema mounts the Maleficent “Welcome to the Moors” exhibit which features themed tunnels and three rooms that will transport moviegoers to different worlds. SM Cinema also incorporated the Braille System in every attraction of the exhibit to let visually impaired children experience the whimsical charm of Maleficent 2: Mistress of Evil as well. For a reel to real experience of the movie, visit “Welcome to the Moors” at SM Southmall until Oct. 23.

Metro’s Anniber-SAYA Sale

IN celebration of its anniversary, Metro will be holding its annual Anniber-SAYA Sale from Oct. 18 to 20 nationwide. Items from all departments will be discounted, with prices slashed up to 50%. Special items will be available for customers who spend a minimum of P1,500. These items will be offered for 55% off and include a garment steamer, cooking utensils, home appliances, and more. Metro will also double the reward points for Metro Rewards Club cardholders and there will be a raffle draw for 37 winners of a 49” LED TV. Metro Rewards Club cardholders can also get free items for a minimum purchase of P2,500 or P1,500, from Metro Supermarket. For Metro Business Club members, the minimum purchase required is P5,000.

Camiguin’s Lanzones Festival

THE island province of Camiguin celebrates the 40th staging of the Lanzones Festival on Oct. 20 to 27. The weeklong festival kicks off with a marathon, a Festival Farm, an Agro-Industrial-Tourism Trade Fair, the Ag Sadya Kiraw Festival Grand Parade with the Mutya sa Buwahanan candidates, Lanzones Fruits Eat-All-You-Can, Octoberfest, and an Inter-Agency Rock and Roll Competition. The festivities peak on Oct. 26 with a street parade and competition as costumed dancers converge in the capital town of Mambajao to formally announce the lanzones harvest season. For details, log on to www.camiguin.gov.ph or visit Camiguin Tourism Office Facebook page.

Sweeney Todd

ATLANTIS Theatrical Entertainment Group caps it’s 20th anniversary season with Stephen Sondheim’s Sweeney Todd: The Demon Barber of Fleet Street, ongoing until Oct. 27 at the Theater at Solaire. Directed by Bobby Garcia, it stars Jett Pangan and Lea Salonga. For tickets, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Pinoy Playlist 2019

THE BGC Arts Center with Sun Life Foundation, brings the second Pinoy Playlist Music Festival (PPMF) at the BGC Arts Center in Taguig City until Oct. 20. The music festival is curated by National Artist for Music Ryan Cayabyab, Moy Ortiz, and Noel Ferrer. Over 100 artists will be performing at the three performance spaces at the BGC Arts Center — the Globe Auditorium, the Zobel de Ayala Recital Hall and the Sun Life Amphitheater — to bring to the public, the depth and breadth of Filipino-made music. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Katsuri

TANGHALANG Pilipino stages a Hiligaynon adaptation of John Steinbeck’s Of Mice and Men titled Katsuri (Visayan for “mouse”) until Oct. 27 at the Cultural Center of the Philippines’ Studio Theater. The play is set in present day Negros and presents the plight of sugarcane farmers. An adaptation written by Bibeth Orteza and directed by Carlos Siguion-Reyna, the play stars Jonathan Tadioan and Marco Viaña, accompanied by the Tanghalang Pilipino Actors Company. For tickets, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Himala: Isang Musikal

BASED on the 1982 film directed by Ismael Bernal, Himala: Isang Musikal centers on Elsa, a young woman who is looked upon as a desperate town’s savior. The show runs until Oct. 20 at the PowerMac Center Spotlight, Circuit Lane, Circuit Makati, Makati City. For tickets, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

The Quest for the Adarna

REPERTORY Philippines’ Theater for Young Audiences presents a musical retelling of the Philippine folk tale Ibong Adarna. The Quest for the Adarna has performances until Jan. 26, 2020 at Onstage Theater, Greenbelt 1, in Makati. The happy life of a king, queen, and their three sons is shattered when the king falls mysteriously ill and can only be healed by the song of the mythical bird, Adarna. The three brothers take turns attempting the dangerous journey to help their father. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Real estate firms looking outside Metro Manila

FIVE PROVINCES have joined Metro Manila in attracting interest from real estate investors, in part because of regulations that encourage expansion outside the Philippine capital, Jones Lang LaSalle, Inc. (JLL) said in a report on Thursday.

In the first half of the year, the Philippine real estate industry was marked by optimism “and the future only continues to look good,” said the real estate consultancy firm.

It said Metro Manila remains the focal area of the current and future real estate attention and movement, with the continued growth of the real estate sector in the coming years.

“Metro Manila’s property outlook for the next few years remains positive for the office, residential, retail, and hospitality property sectors,” it said.

It said offshoring and outsourcing (O&O), online gaming, and tourism drive and influence demand for all types of real estate classes in Metro Manila, although uncertainties are rising in recent periods.

In the second quarter, the expansion of pharmaceutical, food and beverage (F&B), fashion and skin care companies supported the growth of real estate.

“Supply for all property sector continues to grow as developers and investors try and take advantage of a healthy real estate market. Vacancy rates in Metro Manila remain low and manageable across all sectors while rates vary depending on location, but still remain reasonable,” it said.

JLL said a noticeable surge in property interest and activity in provinces outside Metro Manila, specifically in the Cebu, Davao, and nearby provinces Cavite, Laguna and Batangas.

The property market in Metro Cebu, which is made up of Cebu City, Lapu-Lapu City and Mandaue City, is currently experiencing a boom across all sectors.

In the second quarter, O&O firms, English as a Second Language (ESL) schools, online gaming operators, tourists, F&B companies, and the Meetings, Incentives, Conventions, and Exhibitions (MICE) market were all demand drivers that have caused significant growth in the Metro Cebu real estate market, JLL said.

“Local developers lead many of the current builds in Metro Cebu but major developers dominate the share for upcoming developments, indicating great desire to enter the Cebu property market,” it said.

“Cebu City enjoys the bulk of real estate action; Mandaue City mainly benefits from the completion of residential developments in Mandani Bay; and Lapu-Lapu City will lead in the share for upcoming supply in the hospitality sector,” it added.

In Davao City, a big increase is expected in the supply of a wide range of property in the near future.

“Ongoing builds in the Agdao, Buhangin, Talomo, and Poblacion districts — mainly driven by O&O firms; serviced offices; local and foreign students, OFW and local investors; expansion of brands with existing operations; and improving tourism performance should lead to a rise in supply across all property sectors of Davao City,” JLL said.

Meanwhile, the Cavite, Laguna and Batangas region will mainly benefit from the future developments of industrial lands.

“The completion of AG&P special economic zone 2 in Batangas and the development of more industrial parks in CALABA within the next three years should add up to 446 hectares to existing supply,” it said.

“The increase in supply is expected to fulfill demand for industrial property driven by the completion of government projects under the ‘Build, Build, Build Program’; the rapid growth of e-commerce leading to the need for improved logistics; and a revitalized manufacturing sector that needs to satisfy a growing domestic consumer base,” it added.

In its report, JLL cited several factors that have influenced businesses to expand outside Metro Manila, including Corporate Income Tax and Incentives Rationalization Act (CITIRA) legislation.

“The CITIRA Bill seeks to give a superior set of incentives to push investments in the country as well as reduce the corporate income tax rate from 30% to 20%. Businesses that want to create jobs, bring research and technology, and invest in areas that are not as economically developed as major urban cities will be given a superior set of incentives under the TRABAHO (Tax Reform for Attracting Better and High-Quality Opportunities) Bill,” it said.

It also cited the delays and problems experienced by businesses in the current processing for Metro Manila economic zone applications are pushing IT businesses to the countryside.

“Apart from this, the Information Technology and Business Process Association of the Philippines (IT-BPM) says there is currently a shortage in PEZA-registered IT-BPM space in Metro Manila which can potentially result to a significant jump in rental rates. This lack of space is expected to swell following Malacañang Administrative Order No. 18, which imposed a moratorium on the approval of IT-BPM ecozone projects in Metro Manila,” it said.

It said there is no question that Philippine Offshore Gaming Operators (POGOS) have been among the major drivers of office space demand.

“Because of their success, POGOS have even begun expanding their operations outside Metro Manila. While the controversy over POGOS in recent weeks has led to the suspension of the issuance of POGO licenses and the thorough examination of their activities, JLL believes that the office and residential sectors will survive and maintain its growth in the medium to long term even if POGOS exit the country,” it said.

JLL also cited the positive effects across all indicators that the Philippines has received resulting from the trade war between the US and China has spurred investment opportunities specially in exports, electrical and optical equipment, textiles, and chemicals.

“Businesses in these areas that are benefiting from the trade war will most likely seek to expand and most industrial properties are located outside Metro Manila,” it said.

JLL said further development of infrastructure projects that will link Cavite, Laguna, and Batangas to neighboring areas, especially Metro Manila, is expected to attract more foreign investments.

It also said the growing transactions built through the internet is significantly becoming a driver of demand for industrial space, including warehouse space, amid the increasing requirement of locators for distribution centers.

“The continuous growth of the Philippine real estate industry is in no small part due to the government’s programs, projects, and policies,” it said, adding that it was optimistic about the future and believes that the increase in property interest and activity outside Metro Manila “is a positive indicator that the much-needed economic development is well on its way to the provinces.” — Victor V. Saulon

How PSEi member stocks performed — October 17, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, October 17, 2019.

 

How well can the Philippines capitalize on major change?

How well can the Philippines capitalize on major change?

1...8,9758,9768,977...12,872Page 8,976 of 12,872
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube