GERI aims to double rental revenues this year

June 28, 2019 | 12:01 am

GLOBAL-ESTATE Resorts, Inc. (GERI) projects to book P1.4 billion in rental and hotel income this year, as it opens 10,000 square meters (sq.m.) of new leasable spaces.

In a statement issued Thursday, the listed tourism estate and integrated lifestyle communities developer said this will be double the P651 million it generated from rental and hotel income in 2018.

The growth is expected to come mainly from Southwoods Office Towers in Laguna, which it completed in 2018. The company is also scheduled to open Alabang West Parade in Las Piñas City, Holland Park Retail in Laguna, Savoy Hotel Boracay’s retail area in Boracay Newcoast, and a land lease in Antipolo, Rizal this year.

“We expect another banner year for GERI as we see both leasing and hotel income to be the major drivers of our growth. Our residential sales remain strong, as we also expect new launches of residential properties in Twin Lakes and Boracay Newcoast this year,” GERI President Monica T. Salomon said in a statement.

Aside from the retail areas, GERI also expects its newly opened hotels to quadruple hotel income. It started operations of Savoy Hotel Boracay in Boracay Newcoast in 2017, offering 559 rooms and suites.

GERI also unveiled in 2018 the 126-room Twin Lakes Hotel in Laurel, Batangas.

“Through our hotel developments, we hope to contribute to the growth of the country’s booming tourism sector especially in key tourism destinations like Boracay and Tagaytay. Aside from just hotel rooms, we are also providing facilities for MICE (Meetings, Incentives, Conventions and Exhibitions) in these areas,” Ms. Salomon said.

GERI, which is a subsidiary of tycoon Andrew L. Tan’s property firm Megaworld Corp., grew its net income attributable to the parent by 41% to P477.47 million in the first quarter of 2019, following a 33% uptick in gross revenues to P1.87 billion.

Shares in GERI jumped 5.34% or seven centavos to close at P1.38 each at the stock exchange on Thursday. — Arra B. Francia

How PSEi member stocks performed — June 27, 2019

June 28, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, June 27, 2019.

How does the Philippines’ online gig economy compare to those in other countries?

June 28, 2019 | 12:00 am

Duterte cites need to preserve China relations after collision

June 27, 2019 | 10:01 pm

AMID calls to keep Chinese from fishing in the Philippines’ exclusive economic zone (EEZ), Malacañang said on Thursday that President Rodrigo R. Duterte will protect the country’s relationship with China, which is helping fund the “Build, Build, Build” infrastructure program.

“He is protecting the interest of the Filipino people. The ‘Build, Build, Build’ Program is precisely designed to uplift our economy, and necessarily to uplift the lives of the Filipinos,” the President’s Spokesman Salvador S. Panelo said in a briefing at the Palace on Thursday when asked if the President is trying to protect his infrastructure program.

Mr. Duterte, in his speech at the Palace Wednesday, noted that China has brought in a number of key projects, and rejected calls to ask Chinese nationals to stay away.

“Ang mga projects ngayon. Kita mo naman. You from Luzon. Kita mo ’yung highway ngayon? Kita mo ’yung mga… Tapos gusto mo lang na pilitin na umalis sila doon?” (You can see where the projects are — you are from Luzon. Are you aware of the highway projects? How can you force the Chinese to leave?) the President said.

Mr. Panelo said during the briefing that the economic relationship between the two governments is one of the major reasons why the President is being “very careful” in dealing with issues related to the West Philippine Sea.

“Siyempre, dahil magkakaibigan nga tayo eh,” (he is cautious because of the friendship between the two countries), Mr. Panelo said.

Asked to what extent the President will protect Philippine-China relations, he said: “Depende. Di ba sinasabi ni Presidente, ‘Kapag mayroong assault – assault ha – at mayroong nasaktan sa mga Pilipino, aba’y hindi ako papayag.’ Hindi ba sinabi niya? (It will depend if there’s assault. I will not stand for Filipinos getting hurt) ‘Makikipaggiyera ako sa inyo kahit na talo ninyo ako.’ (I will wage war even if we lose) ‘Di ba, klaro naman iyon eh. (Wasn’t he clear?) But I don’t think that it will come to that precisely because… he’s very smart.”

Mr. Panelo also said that it is “wrong” to assume that the Chinese government had anything to do with the June 9 collision at Recto Bank involving two “private” vessels.

“I was telling the Senate President, I think what started the whole confusion and fracas is because iyong mga kritiko or pati rin kayo siguro assumed na iyong Chinese vessel is owned by the Chinese government (The critics or maybe even you journalists maybe assumed that the Chinese vessel is owned by the Chinese government) and kaya tayo nag rereact, ang dating ay itong Chinese government na ito ang bumangga rito eh (which is why people reacted that way, because it seemed the Chinese government was behind the collision). Private eh. Bakit sinasama kasi natin ang Chinese government, isasama lang natin ang Chinese government kung wala silang ginagawa na gawing accountable iyong Chinese vessel (It was a private boat. Why are people dragging in the Chinese government? The Chinese government should only be brought up if it does nothing to hold the Chinese vessel accountable),” he said.

MUTUAL AGREEMENT
Mr. Panelo said there is a mutual agreement between Chinese President Xi Jinping and Mr. Duterte that China will not interfere with Filipino fishermen in disputed waters.

“There was that agreement, mutual agreement… na…okay na mag-fish ang Pilipino doon sa disputed areas (that it was all right for Filipinos to fish in disputed areas),” he said.

He added, “The agreement from what I gather is, hindi nila papakialaman iyong mga fishermen natin doon (they will not interfere with our fishermen).”

He said the government will still enforce the law on Chinese nationals that illegally enter Philippine waters.

“Then we will enforce the law. If it’s unlawful for them to enter, then we will enforce the law,” he said. — Arjay L. Balinbin

Election results point to policy continuity for Philippines — S&P

June 27, 2019 | 10:00 pm

THE Philippines is expected to enjoy a degree of policy continuity after administration allies confirmed broad support for the government, which is expected to help the country weather external risks, S&P Global Ratings said.

“Elections in Indonesia and India returned incumbents to power while the Philippines ballot appeared to have cemented support for the current administration,” S&P said in its Credit Conditions Asia-Pacific: Return of Uncertainty report released Thursday.

“We expect these results to lead to continuity in the policy environments in these countries,” S&P added.

S&P revised its growth forecast for the Philippines this year to 6.1% from 6.3% in the face of subdued state spending after a four-month delay in passing the P3.662-trillion national budget and the stronger-than-expected impact of the China-US trade dispute on the electronics sector, the country’s biggest exporter.

GDP was 6.2% in 2018, the slowest in four years and missing the 6.5-6.9% government target band. It fell to 5.6% pace in the first quarter, also the slowest in four years and below the 6-7% target range for 2019.

“US-China friction has intensified and signs are emerging that resulting policy uncertainty is weighing on capital expenditure (capex) and growth in China and across Asia-Pacific. As expectations build that major central banks may ease, some policymakers in the region have loosened policies,” S&P said.

The Bangko Sentral ng Pilipinas (BSP) reduced its policy rates on May 9 by 25 basis points (bp), and cut the bank reserve requirement ratio (RRR) by 200 bps to 16% from 18%.

“Policy responses and external support will continue to support international investor confidence by those sovereigns more sensitive to global capital flows,” S&P said.

“In some cases, we expect IMF (International Monetary Fund) programs to underpin the policy settings where sovereigns have agreed to receive support from the institution,” S&P added.

Separately, the Department of Finance (DoF) said in a statement Thursday that economic managers must step up their talks with the legislature to head off the possibility of a veto for key economic bills.

“These vetoes do not mean that we do not support you. The President’s vetoes invite us to take another approach,” Finance Secretary Carlos G. Dominguez III was quoted as saying in the statement.

“I propose that the economic team and Congress engage more frequently so that we can mutually move forward with legislation that truly contributes to the common good. In this direction, the DoF is already reorganizing to assign more full-time directors and staff to engage with Congress on a weekly basis,” Mr. Dominguez added. — Reicelene Joy N. Ignacio

DTI issues order limiting store signage to English, Filipino

June 27, 2019 | 9:59 pm

THE Department of Trade and Industry (DTI) said it issued an order to all businesses to restrict the language used in their signage and marketing materials to English or Filipino only.

Secretary Ramon M. Lopez signed the order, citing the need for consumers to be guided properly in their buying decisions, the DTI said in a statement Thursday.

Department Administrative Order (DAO) No. 19-09, Series of 2019 was issued on June 21 to “(enhance) the protection of consumers’ right to accessible information that can help them in making wise purchase decisions.” It also called use of other languages “unfair and discriminatory.”

The DAO covers signage, billboards, advertisements, brochures, flyers, notices, advisories, labels, price tags/lists, menus, receipts, and other such material.

To ensure accurate translation, establishments are now required to secure a certification from an embassy, or from accredited translators or interpreters, or any individual or institution duly recognized by the DTI.

It said the use of Filipino applies to all regional languages.

The DAO outlined fines ranging from P1,000 to P300,000 depending on the seriousness and frequency of the offense, plus the potential cancellation of business licenses.

Compliance period was set at one month.

The government is receiving complaints about businesses catering only to Chinese clients, including a food park in Las Piñas with all-Chinese signage. — Janina C. Lim

Common tower provider ALT Global Solutions signs up Now Telecom

June 27, 2019 | 9:58 pm

ALT Global Solutions, Inc. has signed an agreement with Now Telecom Co., Inc. for the provision of shareable telecommunications infrastructure.

In a text message to BusinessWorld Thursday, ALT Global Director Sherwin Hing said the company is moving forward with its goal of becoming one of the tower providers to sign a memorandum of agreement (MoA) with the Department of Information and Communications Technology (DICT), which will provide assistance in securing permits to build cell sites.

“We are taking to all the three major MNOs (mobile network operators) but so far we’ve signed with Now Telecom,” he said.

“We are in discussions with major telcos to utilize our shared tower infrastructure to enable rapid deployment of cellular equipment, and in some areas increase cellular density in preparation for 5G (fifth-generation mobile),” he added.

Aside from ALT Global, edotco Group Sdn Bhd and ISOC Infrastructure, Inc. also signed MoAs with the DICT Thursday.

The signing of MoAs with the tower providers is a preliminary step to secure the DICT’s assistance in securing permits.

The DICT requires that the tower companies sign an agreement with at least one telco before it signs an MoA.

edotco and ISOC signed a tripartite agreement with Globe Telecom, Inc. earlier this month to roll out 150 shareable towers in Cavite, Laguna, Batangas, Rizal and Quezon (Calabarzon).

Mr. Hing said ALT Global hopes to establish 1,000 sites across the country in the next three years. These towers will be leasable not only to Now Telecom, but also to major telecommunications firms Globe Telecom, Inc., PLDT, Inc. and the incoming Mislatel consortium. “[O]ur first site is in BGC (Bonifacio Global City),” he said.

The government is targeting 50,000 common towers in the next seven to 10 years to improve tower density, which is expected to ease subscriber congestion estimated at 4,000 subscribers per tower. — Denise A. Valdez

NGO claims Oceanagold mine halts operations

June 27, 2019 | 9:57 pm

AUSTRALIAN MINER Oceanagold Corp. has suspended work at its Didipio mine, an environmental organization claimed, saying that the province of Nueva Vizcaya ordered a halt to operations.

The Mines and Geosciences Bureau (MGB), which regulates the mining industry, said the company, whose Financial or Technical Assistance Agreement (FTAA) expired on June 20, can still validly operate since its renewal application was submitted on time and is being processed.

The company had not responded to requests for comment at deadline time. Attempts to contact the Nueva Vizcaya government were hindered by a non-functioning telephone line.

Oceanagold, which is listed on the Australian Stock Exchange, had made no disclosure to the ASX at deadline time.

In a statement, environment group Kalikasan People’s Network for the Environment (Kalikasan PNE) claimed that Nueva Vizacaya Governor Carlos M. Padilla sought the suspension of the company’s operations in Barangay Didipio, Kasibu, Nueva Vizcaya.

Kalikasan PNE claimed mining operations were halted at 6:48 AM on Wednesday. It did not explain how it got the information.

Didipio is a high-grade underground gold and copper mine, which started commercial production as an open pit operation in 2013. It transitioned to underground operation in 2016, with production commencing early 2017.

The group claims that the mine degrades the forests and rivers around Kasibu.

Oceanagold has said previously that it has been working with the government to renew its FTAA, and was permitted to continue operations during the process.

MGB Director Wilfredo G. Moncano said the company can operate since it was able to file for renewal before expiration of its FTAA, which is now with the Office of the President (OP).

“Our position is Oceana is not suspended because it was able to file a renewal application prior to the expiry. Section 18, Chapter 3, Book 7 of the Administrative Code of 1987 provides that the license of Oceana does not expire until there is a determination of the agency concerned which is the OP,” he said in a text message to BusinessWorld.

He said that he has not been informed of any suspension.

“The renewal application was filed in 2018 prior to its expiry last June 20 this year. Environment Secretary (Roy A.) Cimatu has favorably endorsed the renewal application,” he added. — Vincent Mariel P. Galang

Power group seeks veto of solar firm’s franchise

June 27, 2019 | 9:56 pm

THE Philippine Independent Power Producers Association, Inc. (PIPPA) asked President Rodrigo R. Duterte to veto a bill granting a renewable energy (RE) distribution franchise to Solar Para sa Bayan Corp.

“PIPPA respectfully urges the Office of the President to evaluate this bill and the repercussions of signing this franchise. PIPPA humbly requests that upon careful consideration, the ultimate conclusion is to veto this legislative franchise in its entirety. This franchise in favor of SPSB only serves to create chaos in regulation, act as a disincentive to investors, and show the public that undue advantages can be granted to people in power,” according to a statement Thursday issued by the group.

PIPPA questioned anew the need for a franchise, noting that SPSB can provide services without one.

“A legislative franchise in favor of SPSB is not necessary. This franchise is unconstitutional and violates the equal protection clause of the Constitution,” PIPPA said.

It proposed that government properly implement the Electric Power Industry Reform Act (EPIRA) of 2001 or Republic Act 9136, which governs the electric power industry and encourages competition among energy suppliers.

“Under the EPIRA, the generation of electricity is competitive and open; there is no franchise requirement for generation and supply. Only the distribution and transmission sectors are required to have a franchise. More importantly, the Renewable Energy Act, the Department of Energy, and the Energy Regulatory Commission provide for a framework and regulations where distributed power technologies and mini grids are addressed and implemented,” PIPPA added.

The group added that SPSB does not offer any novel technology which warrants special treatment by means of a franchise.

“The unbridled authority to operate at any capacity, of whatever kind, and in any part of the Philippines, is far too great a privilege for any entity,” the group said.

“The effect of this franchise is creating a monopoly in what should clearly be a competitive environment,” it added.

“The PIPPA stands together with all the power industry associations, stakeholders and all the other business groups and associations in its continuous opposition to this franchise simply because this bill is legally infirm and constitutionally flawed.”

The IPPA’s statement follows several business groups’ appeal on Wednesday for a Cabinet-level review of the franchise.

The American Chamber of Commerce of the Philippines, Financial Executives Institute of the Philippines, Makati Business Club, Management Association of the Philippines, Semiconductor and Electronics Industries in the Philippines, Inc. and the Women’s Business Council Philippines, in a joint statement, raised concerns on its effect on reducing competitiveness in the market.

Congress earlier this month ratified a bill awarding SPSB a legislative franchise to establish mini electricity grids in remote and unviable, unserved, or underserved areas in the country.

SPSB is a company controlled by Solar Philippines President Leandro L. Leviste, son of Senator Loren B. Legarda.

BusinessWorld has been seeking Mr. Leviste to comment on the matter but he has not replied as of press time. — Janina C. Lim

BIR files 15 tax cases in QC, Makati

June 27, 2019 | 9:54 pm

THE Bureau of Internal Revenue (BIR) said it filed 15 separate complaints before the Department of Justice against delinquent taxpayers over their alleged failure to pay taxes worth a combined P493.6 million.

In a statement, the BIR lodged complaints against 10 taxpayers in Quezon City for willful failure to pay taxes between 2009 and 2013 worth P395 million. The BIR in Makati filed against five taxpayers for alleged tax liabilities of P98.6 million.

BIR said the taxpayers were served with the necessary documents for the tax assessment and collection but still failed to pay their liabilities.

“The delinquent respondents’ failure and continued refusal to pay their long overdue deficiency taxes, despite repeated notices and demands, constitutes willful failure to pay the taxes due to the government,” the BIR said.

BIR in Quezon City filed charges against five companies and their officers: Filipino Entrepreneurs & Resources Network, Inc., Amigo Strategic Solutions, Inc., Boaz Motor Inc., New Hudson Manufacturing Co., Inc., and Grand Oro Industrial Corp. for violating Section 253 (d) and 256 (Penal Liability of Corporations) of the Tax Code.

It also filed charges against five individuals: Rey M. Digal, proprietor of RMD Electrical Services, Ma. Luisa R. Angulo of M.R. Enterprises, Marilen Z. Salamanque of Winarose Enterprise, Marlo Shervo Sajoyan of NIV Trading, and Gilbert M. Bugaoan of Coreline Drilling Supplies and Services, for violating Section 255 of the Tax Code or failure to file return, supply correct information and pay tax.

BIR in Makati City filed complaints against four companies, including their officers: Attic Tours Phils. Inc., Premium Cake House, X-Play Online Games Inc., and RDC Minimart Inc. also for violating Sections 253 (d) and 256 of the Tax Code.

The new complaints bring to 482 the number of cases filed in line with the Run After Tax Evaders program of the BIR. — Vann Marlo M. Villegas

Laos added to pork imports ban after ASF outbreak

June 27, 2019 | 9:53 pm

THE Department of Agriculture (DA) has added Laos to the list of countries currently banned from shipping pork products to the Philippines, to prevent the spread of African Swine Fever (ASF) after the disease was recently confirmed there.

Agriculture Secretary Emmanuel F. Piñol issued memorandum order no. 15, series of 2019, dated June 21, which specifies the emergency actions to be implemented to prevent the entry of pork products from Laos to prevent damage to the domestic hog industry.

“(1) Banning the importation of domestic and wild pigs and their products, including pork meat and semen; (2) Immediate suspension of the processing, evaluation of the application and issuance of Sanitary and Phytosanitary (SPS) import clearance to the above-stated commodities; (3) Stoppage and confiscation of all shipments of the above stated commodities into the country by all DA Veterinary Quarantine Officers/Inspectors at all major ports,” he said in the order, which was distributed to reporters on Thursday.

According to reports, the World Organization for Animal Health (OIE) said that Laos confirmed its first cases of ASF last week, with seven outbreaks in the southern province of Saravane, which is located between the borders of Vietnam in the west and Thailand in the east. This led to the death of 973 animals.

The department currently bans imports from ASF-affected countries including Belgium, Bulgaria, China, the Czech Republic, Hungary, Latvia, Moldova, Poland, Romania, Russia, South Africa, Ukraine, Zambia, Mongolia, Vietnam, Cambodia, Hong Kong, and North Korea.

Mr. Piñol has also issued new restrictions on animal feed from those countries and deployed meat-sniffing dogs and more X-ray machines to inspect packages from the affected countries.

ASF is a non-treatable and contagious, and can kill swine in as little as two days. China, which has the largest pig herd, has reported 139 outbreaks in 32 areas. More than 1.13 million pigs have been culled as of June 20 to prevent its further spread, according to the Food and Agriculture Organization. — Vincent Mariel P. Galang

Singapore heading for recession in Q3 — Maybank

June 27, 2019 | 9:53 pm

SINGAPORE — Singapore’s economy will probably experience a “shallow technical recession” in the third quarter as the global trade outlook worsens, according to Maybank Kim Eng Research.

The escalating US-China trade conflict is weighing on Singapore’s export-reliant economy, which Maybank expects will grow 1.3% this year, down from a previous projection of 1.6% and lower than the government’s forecast range of 1.5% to 2.5%.

“Disruptions to the supply chain will likely intensify as the trade war broadens to tech and the US imposes export controls on more Chinese tech firms,” Maybank economists Chua Hak Bin and Lee Ju Ye said in a note.

The slump in exports has hit manufacturing, which contracted more than expected in May, data on Wednesday showed. The outlook for electronics, which make up 27% of factory output, is particularly weak since US export controls may hit chipmakers like Broadcom Inc. and Intel Corp., which operate in Singapore, Maybank said.

A recession is defined as two consecutive quarters of negative quarter-on-quarter growth, and if that happens it will increase the chance of the central bank easing monetary policy in October, the economists said. The Monetary Authority of Singapore, which uses the exchange rate as its main tool, left its policy settings unchanged in April.

MAS and the Ministry of Trade and Industry are reviewing their growth forecast range for the year and can’t yet say whether it’ll be revised to even lower than the current 1.5%-2.5% estimate, Managing Director Ravi Menon told reporters during the Thursday release of the central bank’s annual report.

A fresh figure will have to wait at least until second-quarter economic data are fully collected through July, Edward Robinson, MAS’s chief economist, said at the same event. — Bloomberg